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CIRCULAR A-110
REVISED 11/19/93
As = Further=20 Amended 9/30/99

TO THE HEADS OF EXECUTIVE DEPARTMENTS AND=20 ESTABLISHMENTS

SUBJECT:

Uniform Administrative Requirements for Grants = and=20 Agreements With Institutions of Higher Education, Hospitals, = and=20 Other Non-Profit Organizations

1. Purpose. This Circular sets forth standards = for=20 obtaining consistency and uniformity among Federal agencies in the = administration of grants to and agreements with institutions of = higher=20 education, hospitals, and other non-profit organizations.

2. Authority. Circular A-110 is issued under = the=20 authority of 31 U.S.C. 503 (the Chief Financial Officers Act), 31 = U.S.C.=20 1111, 41 U.S.C. 405 (the Office of Federal Procurement Policy = Act),=20 Reorganization Plan No. 2 of 1970, and E.O. 11541 ("Prescribing = the Duties=20 of the Office of Management and Budget and the Domestic Policy = Council in=20 the Executive Office of the President").

3. Policy. Except as provided herein, the = standards=20 set forth in this Circular are applicable to all Federal agencies. = If any=20 statute specifically prescribes policies or specific requirements = that=20 differ from the standards provided herein, the provisions of the = statute=20 shall govern.

The provisions of the sections of this Circular shall be = applied by=20 Federal agencies to recipients. Recipients shall apply the = provisions of=20 this Circular to subrecipients performing substantive work under = grants=20 and agreements that are passed through or awarded by the primary=20 recipient, if such subrecipients are organizations described in = paragraph=20 1.

This Circular does not apply to grants, contracts, or other = agreements=20 between the Federal Government and units of State or local = governments=20 covered by OMB Circular A-102, "Grants and Cooperative Agreements = with=20 State and Local Governments," and the Federal agencies' grants = management=20 common rule which standardized and codified the administrative=20 requirements Federal agencies impose on State and local grantees. = In=20 addition, subawards and contracts to State or local governments = are not=20 covered by this Circular. However, this Circular applies to = subawards made=20 by State and local governments to organizations covered by this = Circular.=20 Federal agencies may apply the provisions of this Circular to = commercial=20 organizations, foreign governments, organizations under the = jurisdiction=20 of foreign governments, and international organizations.

4. Definitions. Definitions of key terms used = in this=20 Circular are contained in Section ___.2 in the Attachment.

5. Required Action. The specific requirements = and=20 responsibilities of Federal agencies and institutions of higher = education,=20 hospitals, and other non-profit organizations are set forth in = this=20 Circular. Federal agencies responsible for awarding and = administering=20 grants to and other agreements with organizations described in = paragraph 1=20 shall adopt the language in the Circular unless different = provisions are=20 required by Federal statute or are approved by OMB.

6. OMB Responsibilities. OMB will review = agency=20 regulations and implementation of this Circular, and will provide=20 interpretations of policy requirements and assistance to insure = effective=20 and efficient implementation. Any exceptions will be subject to = approval=20 by OMB, as indicated in Section ___.4 in the Attachment. = Exceptions will=20 only be made in particular cases where adequate justification is=20 presented.

7. Information Contact. Further information = concerning=20 this Circular may be obtained by contacting the Office of Federal=20 Financial Management, Office of Management and Budget, Washington, = DC=20 20503, telephone (202) 395-3993.

8. Termination Review Date. This Circular will = have a=20 policy review three years from date of issuance.

9. Effective Date. The standards set forth in = this=20 Circular which affect Federal agencies will be effective 30 days = after=20 publication of the final revision in the Federal=20 Register. Those standards which Federal agencies = impose=20 on grantees will be adopted by agencies in codified regulations = within six=20 months after publication in the Federal=20 Register. Earlier implementation is = encouraged.

Attachment

Grants and Agreements with Institutions of Higher=20 Education,
Hospitals, and Other Non-Profit Organizations

SUBPART A - GENERAL

Sec.

___.1 Purpose= .=20

___.2 Definit= ions.=20

___.3 Effect = on=20 other issuances.=20

___.4 Deviati= ons.=20

___.5 Subawar= ds.=20

SUBPART B - PRE-AWARD = REQUIREMENTS=20

___.10 Purpos= e.=20

___.11 Pre-aw= ard=20 policies.=20

___.12 Forms = for=20 applying for Federal assistance.=20

___.13 Debarm= ent=20 and suspension.=20

___.14 Specia= l=20 award conditions.=20

___.15 Metric= =20 system of measurement.=20

___.16 Resour= ce=20 Conservation and Recovery Act.=20

___.17 Certif= ications=20 and representations.=20

SUBPART C - POST-AWARD = REQUIREMENTS=20

Financial and Program Management

___.20 Purpos= e=20 of financial and program management.=20

___.21 Standa= rds=20 for financial management systems.=20

___.22 Paymen= t.=20

___.23 Cost=20 sharing or matching.=20

___.24 Progra= m=20 income.=20

___.25 Revisi= on=20 of budget and program plans.=20

___.26 Non-Fe= deral=20 audits.=20

___.27 Allowa= ble=20 costs.=20

___.28 Period= of=20 availability of funds.=20

___.29 Condit= ional=20 exemptions.=20

Property Standards

___.30 Purpos= e=20 of property standards.=20

___.31 Insura= nce=20 coverage.=20

___.32 Real=20 property.=20

___.33 Federa= lly-owned=20 and exempt property.=20

___.34 Equipm= ent.=20

___.35 Suppli= es=20 and other expendable property.=20

___.36 Intang= ible=20 property.=20

___.37 Proper= ty=20 trust relationship.=20

Procurement = Standards

___.40 Purpos= e=20 of procurement standards.=20

___.41 Recipi= ent=20 responsibilities.=20

___.42 Codes = of=20 conduct.=20

___.43 Compet= ition.=20

___.44 Procur= ement=20 procedures.=20

___.45 Cost = and=20 price analysis.=20

___.46 Procur= ement=20 records.=20

___.47 Contra= ct=20 administration.=20

___.48 Contra= ct=20 provisions.=20

Reports and Records

___.50 Purpos= e=20 of reports and records.=20

___.51 Monito= ring=20 and reporting program performance.=20

___.52 Financ= ial=20 reporting.=20

___.53 Retent= ion=20 and access requirements for records.=20

Termination and = Enforcement

___.60 Purpos= e=20 of termination and enforcement.=20

___.61 Termin= ation.=20

___.62 Enforc= ement.=20

SUBPART D - AFTER-THE-AWARD=20 REQUIREMENTS

___.70 Purpos= e.=20

___.71 Closeo= ut=20 procedures.=20

___.72 Subseq= uent=20 adjustments and continuing responsibilities.=20

___.73 Collec= tion=20 of amounts due.=20

APPENDIX A - CONTRACT PROVISIONS

SUBPART A - General

___.1 Purp= ose.=20 This Circular establishes uniform administrative requirements for = Federal=20 grants and agreements awarded to institutions of higher education, = hospitals, and other non-profit organizations. Federal awarding = agencies=20 shall not impose additional or inconsistent requirements, except = as=20 provided in Sections ___.4, and ___.14 or unless specifically = required by=20 Federal statute or executive order. Non-profit organizations that=20 implement Federal programs for the States are also subject to = State=20 requirements.

___.2 Defi= nitions.

(a) Accrued expenditures means the charges = incurred=20 by the recipient during a given period requiring the provision = of funds=20 for: (1) goods and other tangible property received; (2) = services=20 performed by employees, contractors, subrecipients, and other = payees;=20 and, (3) other amounts becoming owed under programs for which no = current=20 services or performance is required.=20

(b) Accrued income means the sum of: (1) = earnings=20 during a given period from (i) services performed by the = recipient, and=20 (ii) goods and other tangible property delivered to purchasers, = and (2)=20 amounts becoming owed to the recipient for which no current = services or=20 performance is required by the recipient.

(c) Acquisition cost of equipment means the = net=20 invoice price of the equipment, including the cost of = modifications,=20 attachments, accessories, or auxiliary apparatus necessary to = make the=20 property usable for the purpose for which it was acquired. Other = charges, such as the cost of installation, transportation, = taxes, duty=20 or protective in-transit insurance, shall be included or = excluded from=20 the unit acquisition cost in accordance with the recipient's = regular=20 accounting practices.

(d) Advance means a payment made by Treasury = check=20 or other appropriate payment mechanism to a recipient upon its = request=20 either before outlays are made by the recipient or through the = use of=20 predetermined payment schedules.

(e) Award means financial assistance that = provides=20 support or stimulation to accomplish a public purpose. Awards = include=20 grants and other agreements in the form of money or property in = lieu of=20 money, by the Federal Government to an eligible recipient. The = term does=20 not include: technical assistance, which provides services = instead of=20 money; other assistance in the form of loans, loan guarantees, = interest=20 subsidies, or insurance; direct payments of any kind to = individuals;=20 and, contracts which are required to be entered into and = administered=20 under procurement laws and regulations.

(f) Cash contributions means the recipient's = cash=20 outlay, including the outlay of money contributed to the = recipient by=20 third parties.

(g) Closeout means the process by which a = Federal=20 awarding agency determines that all applicable administrative = actions=20 and all required work of the award have been completed by the = recipient=20 and Federal awarding agency.

(h) Contract means a procurement contract = under an=20 award or subaward, and a procurement subcontract under a = recipient's or=20 subrecipient's contract.

(i) Cost sharing or matching means that = portion of=20 project or program costs not borne by the Federal Government. =

(j) Date of completion means the date on = which all=20 work under an award is completed or the date on the award = document, or=20 any supplement or amendment thereto, on which Federal = sponsorship ends.=20

(k) Disallowed costs means those charges to = an award=20 that the Federal awarding agency determines to be unallowable, = in=20 accordance with the applicable Federal cost principles or other = terms=20 and conditions contained in the award.

(l) Equipment means tangible nonexpendable = personal=20 property including exempt property charged directly to the award = having=20 a useful life of more than one year and an acquisition cost of = $5000 or=20 more per unit. However, consistent with recipient policy, lower = limits=20 may be established.

(m) Excess property means property under the = control=20 of any Federal awarding agency that, as determined by the head = thereof,=20 is no longer required for its needs or the discharge of its=20 responsibilities.

(n) Exempt property means tangible personal = property=20 acquired in whole or in part with Federal funds, where the = Federal=20 awarding agency has statutory authority to vest title in the = recipient=20 without further obligation to the Federal Government. An example = of=20 exempt property authority is contained in the Federal Grant and=20 Cooperative Agreement Act (31 U.S.C. 6306), for property = acquired under=20 an award to conduct basic or applied research by a non-profit=20 institution of higher education or non-profit organization whose = principal purpose is conducting scientific research.

(o) Federal awarding agency means the = Federal agency=20 that provides an award to the recipient.

(p) Federal funds authorized means the total = amount=20 of Federal funds obligated by the Federal Government for use by = the=20 recipient. This amount may include any authorized carryover of=20 unobligated funds from prior funding periods when permitted by = agency=20 regulations or agency implementing instructions.

(q) Federal share of real property, = equipment, or=20 supplies means that percentage of the property's acquisition = costs and=20 any improvement expenditures paid with Federal funds.

(r) Funding period means the period of time = when=20 Federal funding is available for obligation by the recipient. =

(s) Intangible property and debt instruments = means,=20 but is not limited to, trademarks, copyrights, patents and = patent=20 applications and such property as loans, notes and other debt=20 instruments, lease agreements, stock and other instruments of = property=20 ownership, whether considered tangible or intangible.

(t) Obligations means the amounts of orders = placed,=20 contracts and grants awarded, services received and similar = transactions=20 during a given period that require payment by the recipient = during the=20 same or a future period.

(u) Outlays or expenditures means charges = made to=20 the project or program. They may be reported on a cash or = accrual basis.=20 For reports prepared on a cash basis, outlays are the sum of = cash=20 disbursements for direct charges for goods and services, the = amount of=20 indirect expense charged, the value of third party in-kind = contributions=20 applied and the amount of cash advances and payments made to=20 subrecipients. For reports prepared on an accrual basis, outlays = are the=20 sum of cash disbursements for direct charges for goods and = services, the=20 amount of indirect expense incurred, the value of in-kind = contributions=20 applied, and the net increase (or decrease) in the amounts owed = by the=20 recipient for goods and other property received, for services = performed=20 by employees, contractors, subrecipients and other payees and = other=20 amounts becoming owed under programs for which no current = services or=20 performance are required.

(v) Personal property means property of any = kind=20 except real property. It may be tangible, having physical = existence, or=20 intangible, having no physical existence, such as copyrights, = patents,=20 or securities.

(w) Prior approval means written approval by = an=20 authorized official evidencing prior consent.

(x) Program income means gross income earned = by the=20 recipient that is directly generated by a supported activity or = earned=20 as a result of the award (see exclusions in paragraphs ___.24 = (e) and=20 (h)). Program income includes, but is not limited to, income = from fees=20 for services performed, the use or rental of real or personal = property=20 acquired under federally-funded projects, the sale of = commodities or=20 items fabricated under an award, license fees and royalties on = patents=20 and copyrights, and interest on loans made with award funds. = Interest=20 earned on advances of Federal funds is not program income. = Except as=20 otherwise provided in Federal awarding agency regulations or the = terms=20 and conditions of the award, program income does not include the = receipt=20 of principal on loans, rebates, credits, discounts, etc., or = interest=20 earned on any of them.

(y) Project costs means all allowable costs, = as set=20 forth in the applicable Federal cost principles, incurred by a = recipient=20 and the value of the contributions made by third parties in=20 accomplishing the objectives of the award during the project = period.=20

(z) Project period means the period = established in=20 the award document during which Federal sponsorship begins and = ends.=20

(aa) Property means, unless otherwise = stated, real=20 property, equipment, intangible property and debt instruments. =

(bb) Real property means land, including = land=20 improvements, structures and appurtenances thereto, but excludes = movable=20 machinery and equipment.

(cc) Recipient means an organization = receiving=20 financial assistance directly from Federal awarding agencies to = carry=20 out a project or program. The term includes public and private=20 institutions of higher education, public and private hospitals, = and=20 other quasi-public and private non-profit organizations such as, = but not=20 limited to, community action agencies, research institutes, = educational=20 associations, and health centers. The term may include = commercial=20 organizations, foreign or international organizations (such as = agencies=20 of the United Nations) which are recipients, subrecipients, or=20 contractors or subcontractors of recipients or subrecipients at = the=20 discretion of the Federal awarding agency. The term does not = include=20 government-owned contractor-operated facilities or research = centers=20 providing continued support for mission-oriented, large-scale = programs=20 that are government-owned or controlled, or are designated as=20 federally-funded research and development centers.

(dd) Research and development means all = research=20 activities, both basic and applied, and all development = activities that=20 are supported at universities, colleges, and other non-profit=20 institutions. "Research" is defined as a systematic study = directed=20 toward fuller scientific knowledge or understanding of the = subject=20 studied. "Development" is the systematic use of knowledge and=20 understanding gained from research directed toward the = production of=20 useful materials, devices, systems, or methods, including design = and=20 development of prototypes and processes. The term research also = includes=20 activities involving the training of individuals in research = techniques=20 where such activities utilize the same facilities as other = research and=20 development activities and where such activities are not = included in the=20 instruction function.

(ee) Small awards means a grant or = cooperative=20 agreement not exceeding the small purchase threshold fixed at 41 = U.S.C.=20 403(11) (currently $25,000).

(ff) Subaward means an award of financial = assistance=20 in the form of money, or property in lieu of money, made under = an award=20 by a recipient to an eligible subrecipient or by a subrecipient = to a=20 lower tier subrecipient. The term includes financial assistance = when=20 provided by any legal agreement, even if the agreement is called = a=20 contract, but does not include procurement of goods and services = nor=20 does it include any form of assistance which is excluded from = the=20 definition of "award" in paragraph (e).

(gg) Subrecipient means the legal entity to = which a=20 subaward is made and which is accountable to the recipient for = the use=20 of the funds provided. The term may include foreign or = international=20 organizations (such as agencies of the United Nations) at the = discretion=20 of the Federal awarding agency.

(hh) Supplies means all personal property = excluding=20 equipment, intangible property, and debt instruments as defined = in this=20 section, and inventions of a contractor conceived or first = actually=20 reduced to practice in the performance of work under a funding = agreement=20 ("subject inventions"), as defined in 37 CFR part 401, "Rights = to=20 Inventions Made by Nonprofit Organizations and Small Business = Firms=20 Under Government Grants, Contracts, and Cooperative Agreements." =

(ii) Suspension means an action by a Federal = awarding agency that temporarily withdraws Federal sponsorship = under an=20 award, pending corrective action by the recipient or pending a = decision=20 to terminate the award by the Federal awarding agency. = Suspension of an=20 award is a separate action from suspension under Federal agency=20 regulations implementing E.O.s 12549 and 12689, "Debarment and=20 Suspension."

(jj) Termination means the cancellation of = Federal=20 sponsorship, in whole or in part, under an agreement at any time = prior=20 to the date of completion.

(kk) Third party in-kind contributions means = the=20 value of non-cash contributions provided by non-Federal third = parties.=20 Third party in-kind contributions may be in the form of real = property,=20 equipment, supplies and other expendable property, and the value = of=20 goods and services directly benefiting and specifically = identifiable to=20 the project or program.

(ll) Unliquidated obligations, for financial = reports=20 prepared on a cash basis, means the amount of obligations = incurred by=20 the recipient that have not been paid. For reports prepared on = an=20 accrued expenditure basis, they represent the amount of = obligations=20 incurred by the recipient for which an outlay has not been = recorded.=20

(mm) Unobligated balance means the portion = of the=20 funds authorized by the Federal awarding agency that has not = been=20 obligated by the recipient and is determined by deducting the = cumulative=20 obligations from the cumulative funds authorized.

(nn) Unrecovered indirect cost means the = difference=20 between the amount awarded and the amount which could have been = awarded=20 under the recipient's approved negotiated indirect cost rate. =

(oo) Working capital advance means a = procedure where=20 by funds are advanced to the recipient to cover its estimated=20 disbursement needs for a given initial period.

___.3 Effe= ct=20 on other issuances. For awards subject to this Circular, all = administrative requirements of codified program regulations, = program=20 manuals, handbooks and other nonregulatory materials which are=20 inconsistent with the requirements of this Circular shall be = superseded,=20 except to the extent they are required by statute, or authorized = in=20 accordance with the deviations provision in = Section ___.4.

___.4 Devi= ations.=20 The Office of Management and Budget (OMB) may grant exceptions = for=20 classes of grants or recipients subject to the requirements of = this=20 Circular when exceptions are not prohibited by statute. However, = in the=20 interest of maximum uniformity, exceptions from the requirements = of this=20 Circular shall be permitted only in unusual circumstances. = Federal=20 awarding agencies may apply more restrictive requirements to a = class of=20 recipients when approved by OMB. Federal awarding agencies may = apply=20 less restrictive requirements when awarding small awards, except = for=20 those requirements which are statutory. Exceptions on a = case-by-case=20 basis may also be made by Federal awarding agencies.

___.5 Suba= wards.=20 Unless sections of this Circular specifically exclude = subrecipients from=20 coverage, the provisions of this Circular shall be applied to=20 subrecipients performing work under awards if such subrecipients = are=20 institutions of higher education, hospitals or other non-profit=20 organizations. State and local government subrecipients are = subject to=20 the provisions of regulations implementing the grants management = common=20 rule,"Uniform Administrative Requirements for Grants and = Cooperative=20 Agreements to State and Local Governments," published at 53 FR = 8034=20 (3/11/88).

SUBPART B - Pre-Award Requirements

___.10 Purp= ose.=20 Sections ___.11 through ___.17 prescribes forms and instructions = and=20 other pre-award matters to be used in applying for Federal = awards.

___.11 Pre-= award=20 policies.

(a) Use of Grants and Cooperative Agreements, and Contracts. = In each=20 instance, the Federal awarding agency shall decide on the = appropriate=20 award instrument (i.e., grant, cooperative agreement, or = contract). The=20 Federal Grant and Cooperative Agreement Act (31 U.S.C. 6301-08) = governs=20 the use of grants, cooperative agreements and contracts. A grant = or=20 cooperative agreement shall be used only when the principal = purpose of a=20 transaction is to accomplish a public purpose of support or = stimulation=20 authorized by Federal statute. The statutory criterion for = choosing=20 between grants and cooperative agreements is that for the = latter,=20 "substantial involvement is expected between the executive = agency and=20 the State, local government, or other recipient when carrying = out the=20 activity contemplated in the agreement." Contracts shall be used = when=20 the principal purpose is acquisition of property or services for = the=20 direct benefit or use of the Federal Government.

(b) Public Notice and Priority Setting. Federal awarding = agencies=20 shall notify the public of its intended funding priorities for=20 discretionary grant programs, unless funding priorities are = established=20 by Federal statute.

___.12 Form= s=20 for applying for Federal assistance.

(a) Federal awarding agencies shall comply with the = applicable report=20 clearance requirements of 5 CFR part 1320, "Controlling = Paperwork=20 Burdens on the Public," with regard to all forms used by the = Federal=20 awarding agency in place of or as a supplement to the Standard = Form 424=20 (SF-424) series.

(b) Applicants shall use the SF-424 series or those forms and = instructions prescribed by the Federal awarding agency.

(c) For Federal programs covered by E.O. 12372, = "Intergovernmental=20 Review of Federal Programs," the applicant shall complete the=20 appropriate sections of the SF-424 (Application for Federal = Assistance)=20 indicating whether the application was subject to review by the = State=20 Single Point of Contact (SPOC). The name and address of the SPOC = for a=20 particular State can be obtained from the Federal awarding = agency or the=20 Catalog of Federal Domestic Assistance. The = SPOC shall=20 advise the applicant whether the program for which application = is made=20 has been selected by that State for review.

(d) Federal awarding agencies that do not use the SF-424 form = should=20 indicate whether the application is subject to review by the = State under=20 E.O. 12372.

___.13 Deba= rment=20 and suspension. Federal awarding agencies and recipients = shall=20 comply with the nonprocurement debarment and suspension common = rule=20 implementing E.O.s 12549 and 12689, "Debarment and Suspension." = This=20 common rule restricts subawards and contracts with certain = parties that=20 are debarred, suspended or otherwise excluded from or ineligible = for=20 participation in Federal assistance programs or activities.

___.14 Spec= ial=20 award conditions. If an applicant or recipient: (a) has a = history of=20 poor performance, (b) is not financially stable, (c) has a = management=20 system that does not meet the standards prescribed in this = Circular, (d)=20 has not conformed to the terms and conditions of a previous = award, or=20 (e) is not otherwise responsible, Federal awarding agencies may = impose=20 additional requirements as needed, provided that such applicant = or=20 recipient is notified in writing as to: the nature of the = additional=20 requirements, the reason why the additional requirements are = being=20 imposed, the nature of the corrective action needed, the time = allowed=20 for completing the corrective actions, and the method for = requesting=20 reconsideration of the additional requirements imposed. Any = special=20 conditions shall be promptly removed once the conditions that = prompted=20 them have been corrected.

___.15 Metr= ic=20 system of measurement. The Metric Conversion Act, as amended = by the=20 Omnibus Trade and Competitiveness Act (15 U.S.C. 205) declares = that the=20 metric system is the preferred measurement system for U.S. trade = and=20 commerce. The Act requires each Federal agency to establish a = date or=20 dates in consultation with the Secretary of Commerce, when the = metric=20 system of measurement will be used in the agency's procurements, = grants,=20 and other business-related activities. Metric implementation may = take=20 longer where the use of the system is initially impractical or = likely to=20 cause significant inefficiencies in the accomplishment of=20 federally-funded activities. Federal awarding agencies shall = follow the=20 provisions of E.O. 12770, "Metric Usage in Federal Government=20 Programs."

___.16 Reso= urce=20 Conservation and Recovery Act (RCRA) (Pub. L. 94-580 codified at = 42=20 U.S.C. 6962). Under the Act, any State agency or agency of a = political subdivision of a State which is using appropriated = Federal=20 funds must comply with Section 6002. Section 6002 requires that=20 preference be given in procurement programs to the purchase of = specific=20 products containing recycled materials identified in guidelines=20 developed by the Environmental Protection Agency (EPA) (40 CFR = parts=20 247-254). Accordingly, State and local institutions of higher = education,=20 hospitals, and non-profit organizations that receive direct = Federal=20 awards or other Federal funds shall give preference in their = procurement=20 programs funded with Federal funds to the purchase of recycled = products=20 pursuant to the EPA guidelines.

___.17 Cert= ifications=20 and representations. Unless prohibited by statute or = codified=20 regulation, each Federal awarding agency is authorized and = encouraged to=20 allow recipients to submit certifications and representations = required=20 by statute, executive order, or regulation on an annual basis, = if the=20 recipients have ongoing and continuing relationships with the = agency.=20 Annual certifications and representations shall be signed by = responsible=20 officials with the authority to ensure recipients' compliance = with the=20 pertinent requirements.

SUBPART C - Post-Award Requirements

Financial and Program Management

___.20 Purp= ose=20 of financial and program management. Sections ___.21 through = ___.28=20 prescribe standards for financial management systems, methods = for making=20 payments and rules for: satisfying cost sharing and matching=20 requirements, accounting for program income, budget revision = approvals,=20 making audits, determining allowability of cost, and = establishing fund=20 availability.

___.21 Stan= dards=20 for financial management systems.

(a) Federal awarding agencies shall require recipients to = relate=20 financial data to performance data and develop unit cost = information=20 whenever practical.

(b) Recipients' financial management systems shall provide = for the=20 following.

(1) Accurate, current and complete disclosure of the = financial=20 results of each federally-sponsored project or program in = accordance=20 with the reporting requirements set forth in Section ___.52. If = a=20 Federal awarding agency requires reporting on an accrual basis = from a=20 recipient that maintains its records on other than an accrual = basis, the=20 recipient shall not be required to establish an accrual = accounting=20 system. These recipients may develop such accrual data for its = reports=20 on the basis of an analysis of the documentation on hand.=20

(2) Records that identify adequately the source and = application of=20 funds for federally-sponsored activities. These records shall = contain=20 information pertaining to Federal awards, authorizations, = obligations,=20 unobligated balances, assets, outlays, income and interest.

(3) Effective control over and accountability for all funds, = property=20 and other assets. Recipients shall adequately safeguard all such = assets=20 and assure they are used solely for authorized purposes.

(4) Comparison of outlays with budget amounts for each award. = Whenever appropriate, financial information should be related to = performance and unit cost data.

(5) Written procedures to minimize the time elapsing between = the=20 transfer of funds to the recipient from the U.S. Treasury and = the=20 issuance or redemption of checks, warrants or payments by other = means=20 for program purposes by the recipient. To the extent that the = provisions=20 of the Cash Management Improvement Act (CMIA) (Pub. L. 101-453) = govern,=20 payment methods of State agencies, instrumentalities, and fiscal = agents=20 shall be consistent with CMIA Treasury-State Agreements or the = CMIA=20 default procedures codified at 31 CFR part 205, "Withdrawal of = Cash from=20 the Treasury for Advances under Federal Grant and Other = Programs."

(6) Written procedures for determining the reasonableness,=20 allocability and allowability of costs in accordance with the = provisions=20 of the applicable Federal cost principles and the terms and = conditions=20 of the award.

(7) Accounting records including cost accounting records that = are=20 supported by source documentation.

(c) Where the Federal Government guarantees or insures the = repayment=20 of money borrowed by the recipient, the Federal awarding agency, = at its=20 discretion, may require adequate bonding and insurance if the = bonding=20 and insurance requirements of the recipient are not deemed = adequate to=20 protect the interest of the Federal Government.

(d) The Federal awarding agency may require adequate fidelity = bond=20 coverage where the recipient lacks sufficient coverage to = protect the=20 Federal Government's interest.

(e) Where bonds are required in the situations described = above, the=20 bonds shall be obtained from companies holding certificates of = authority=20 as acceptable sureties, as prescribed in 31 CFR part 223, = "Surety=20 Companies Doing Business with the United States."

___.22 Paym= ent.

(a) Payment methods shall minimize the time elapsing between = the=20 transfer of funds from the United States Treasury and the = issuance or=20 redemption of checks, warrants, or payment by other means by the = recipients. Payment methods of State agencies or = instrumentalities shall=20 be consistent with Treasury-State CMIA agreements or default = procedures=20 codified at 31 CFR part 205.

(b) Recipients are to be paid in advance, provided they = maintain or=20 demonstrate the willingness to maintain: (1) written procedures = that=20 minimize the time elapsing between the transfer of funds and=20 disbursement by the recipient, and (2) financial management = systems that=20 meet the standards for fund control and accountability as = established in=20 Section ___.21. Cash advances to a recipient organization shall = be=20 limited to the minimum amounts needed and be timed to be in = accordance=20 with the actual, immediate cash requirements of the recipient=20 organization in carrying out the purpose of the approved program = or=20 project. The timing and amount of cash advances shall be as = close as is=20 administratively feasible to the actual disbursements by the = recipient=20 organization for direct program or project costs and the = proportionate=20 share of any allowable indirect costs.

(c) Whenever possible, advances shall be consolidated to = cover=20 anticipated cash needs for all awards made by the Federal = awarding=20 agency to the recipient.

(1) Advance payment mechanisms include, but are not limited = to,=20 Treasury check and electronic funds transfer.=20

(2) Advance payment mechanisms are subject to 31 CFR part = 205.

(3) Recipients shall be authorized to submit requests for = advances=20 and reimbursements at least monthly when electronic fund = transfers are=20 not used.

(d) Requests for Treasury check advance payment shall be = submitted on=20 SF-270, "Request for Advance or Reimbursement," or other forms = as may be=20 authorized by OMB. This form is not to be used when Treasury = check=20 advance payments are made to the recipient automatically through = the use=20 of a predetermined payment schedule or if precluded by special = Federal=20 awarding agency instructions for electronic funds transfer.

(e) Reimbursement is the preferred method when the = requirements in=20 paragraph (b) cannot be met. Federal awarding agencies may also = use this=20 method on any construction agreement, or if the major portion of = the=20 construction project is accomplished through private market = financing or=20 Federal loans, and the Federal assistance constitutes a minor = portion of=20 the project.

(1) When the reimbursement method is used, the Federal = awarding=20 agency shall make payment within 30 days after receipt of the = billing,=20 unless the billing is improper.=20

(2) Recipients shall be authorized to submit request for=20 reimbursement at least monthly when electronic funds transfers = are not=20 used.

(f) If a recipient cannot meet the criteria for advance = payments and=20 the Federal awarding agency has determined that reimbursement is = not=20 feasible because the recipient lacks sufficient working capital, = the=20 Federal awarding agency may provide cash on a working capital = advance=20 basis. Under this procedure, the Federal awarding agency shall = advance=20 cash to the recipient to cover its estimated disbursement needs = for an=20 initial period generally geared to the awardee's disbursing = cycle.=20 Thereafter, the Federal awarding agency shall reimburse the = recipient=20 for its actual cash disbursements. The working capital advance = method of=20 payment shall not be used for recipients unwilling or unable to = provide=20 timely advances to their subrecipient to meet the subrecipient's = actual=20 cash disbursements.

(g) To the extent available, recipients shall disburse funds=20 available from repayments to and interest earned on a revolving = fund,=20 program income, rebates, refunds, contract settlements, audit = recoveries=20 and interest earned on such funds before requesting additional = cash=20 payments.

(h) Unless otherwise required by statute, Federal awarding = agencies=20 shall not withhold payments for proper charges made by = recipients at any=20 time during the project period unless (1) or (2) apply.

(1) A recipient has failed to comply with the project = objectives,=20 the terms and conditions of the award, or Federal reporting=20 requirements.=20

(2) The recipient or subrecipient is delinquent in a debt to = the=20 United States as defined in OMB Circular A-129, "Managing = Federal Credit=20 Programs." Under such conditions, the Federal awarding agency = may, upon=20 reasonable notice, inform the recipient that payments shall not = be made=20 for obligations incurred after a specified date until the = conditions are=20 corrected or the indebtedness to the Federal Government is=20 liquidated.

(i) Standards governing the use of banks and other = institutions as=20 depositories of funds advanced under awards are as follows.

(1) Except for situations described in paragraph (i)(2), = Federal=20 awarding agencies shall not require separate depository accounts = for=20 funds provided to a recipient or establish any eligibility = requirements=20 for depositories for funds provided to a recipient. However, = recipients=20 must be able to account for the receipt, obligation and = expenditure of=20 funds.=20

(2) Advances of Federal funds shall be deposited and = maintained in=20 insured accounts whenever possible.

(j) Consistent with the national goal of expanding the = opportunities=20 for women-owned and minority-owned business enterprises, = recipients=20 shall be encouraged to use women- owned and minority-owned banks = (a bank=20 which is owned at least 50 percent by women or minority group = members).=20

(k) Recipients shall maintain advances of Federal funds in = interest=20 bearing accounts, unless (1), (2) or (3) apply.

(1) The recipient receives less than $120,000 in Federal = awards per=20 year.

(2) The best reasonably available interest bearing account = would not=20 be expected to earn interest in excess of $250 per year on = Federal cash=20 balances.

(3) The depository would require an average or minimum = balance so=20 high that it would not be feasible within the expected Federal = and=20 non-Federal cash resources.

(l) For those entities where CMIA and its implementing = regulations do=20 not apply, interest earned on Federal advances deposited in = interest=20 bearing accounts shall be remitted annually to Department of = Health and=20 Human Services, Payment Management System, Rockville, MD 20852. = Interest=20 amounts up to $250 per year may be retained by the recipient for = administrative expense. State universities and hospitals shall = comply=20 with CMIA, as it pertains to interest. If an entity subject to = CMIA uses=20 its own funds to pay pre-award costs for discretionary awards = without=20 prior written approval from the Federal awarding agency, it = waives its=20 right to recover the interest under CMIA.

(m) Except as noted elsewhere in this Circular, only the = following=20 forms shall be authorized for the recipients in requesting = advances and=20 reimbursements. Federal agencies shall not require more than an = original=20 and two copies of these forms.

(1) SF-270, Request for Advance or Reimbursement. Each = Federal=20 awarding agency shall adopt the SF-270 as a standard form for = all=20 nonconstruction programs when electronic funds transfer or = predetermined=20 advance methods are not used. Federal awarding agencies, = however, have=20 the option of using this form for construction programs in lieu = of the=20 SF-271, "Outlay Report and Request for Reimbursement for = Construction=20 Programs."

(2) SF-271, Outlay Report and Request for Reimbursement for=20 Construction Programs. Each Federal awarding agency shall adopt = the=20 SF-271 as the standard form to be used for requesting = reimbursement for=20 construction programs. However, a Federal awarding agency may = substitute=20 the SF-270 when the Federal awarding agency determines that it = provides=20 adequate information to meet Federal needs.

___.23 Cost= =20 sharing or matching.

(a) All contributions, including cash and third party = in-kind, shall=20 be accepted as part of the recipient's cost sharing or matching = when=20 such contributions meet all of the following criteria.

(1) Are verifiable from the recipient's records.=20

(2) Are not included as contributions for any other=20 federally-assisted project or program.=20

(3) Are necessary and reasonable for proper and efficient=20 accomplishment of project or program objectives.=20

(4) Are allowable under the applicable cost principles.=20

(5) Are not paid by the Federal Government under another = award,=20 except where authorized by Federal statute to be used for cost = sharing=20 or matching.=20

(6) Are provided for in the approved budget when required by = the=20 Federal awarding agency.=20

(7) Conform to other provisions of this Circular, as=20 applicable.

(b) Unrecovered indirect costs may be included as part of = cost=20 sharing or matching only with the prior approval of the Federal = awarding=20 agency.=20

(c) Values for recipient contributions of services and = property shall=20 be established in accordance with the applicable cost = principles. If a=20 Federal awarding agency authorizes recipients to donate = buildings or=20 land for construction/facilities acquisition projects or = long-term use,=20 the value of the donated property for cost sharing or matching = shall be=20 the lesser of (1) or (2).=20

(1) The certified value of the remaining life of the = property=20 recorded in the recipient's accounting records at the time of = donation.=20

(2) The current fair market value. However, when there is = sufficient=20 justification, the Federal awarding agency may approve the use = of the=20 current fair market value of the donated property, even if it = exceeds=20 the certified value at the time of donation to the = project.

(d) Volunteer services furnished by professional and = technical=20 personnel, consultants, and other skilled and unskilled labor = may be=20 counted as cost sharing or matching if the service is an = integral and=20 necessary part of an approved project or program. Rates for = volunteer=20 services shall be consistent with those paid for similar work in = the=20 recipient's organization. In those instances in which the = required=20 skills are not found in the recipient organization, rates shall = be=20 consistent with those paid for similar work in the labor market = in which=20 the recipient competes for the kind of services involved. In = either=20 case, paid fringe benefits that are reasonable, allowable, and = allocable=20 may be included in the valuation.=20

(e) When an employer other than the recipient furnishes the = services=20 of an employee, these services shall be valued at the employee's = regular=20 rate of pay (plus an amount of fringe benefits that are = reasonable,=20 allowable, and allocable, but exclusive of overhead costs), = provided=20 these services are in the same skill for which the employee is = normally=20 paid.=20

(f) Donated supplies may include such items as expendable = equipment,=20 office supplies, laboratory supplies or workshop and classroom = supplies.=20 Value assessed to donated supplies included in the cost sharing = or=20 matching share shall be reasonable and shall not exceed the fair = market=20 value of the property at the time of the donation.=20

(g) The method used for determining cost sharing or matching = for=20 donated equipment, buildings and land for which title passes to = the=20 recipient may differ according to the purpose of the award, if = (1) or=20 (2) apply.=20

(1) If the purpose of the award is to assist the recipient = in the=20 acquisition of equipment, buildings or land, the total value of = the=20 donated property may be claimed as cost sharing or matching.=20

(2) If the purpose of the award is to support activities that = require=20 the use of equipment, buildings or land, normally only = depreciation or=20 use charges for equipment and buildings may be made. However, = the full=20 value of equipment or other capital assets and fair rental = charges for=20 land may be allowed, provided that the Federal awarding agency = has=20 approved the charges.

(h) The value of donated property shall be determined in = accordance=20 with the usual accounting policies of the recipient, with the = following=20 qualifications.=20

(1) The value of donated land and buildings shall not = exceed its=20 fair market value at the time of donation to the recipient as=20 established by an independent appraiser (e.g., certified real = property=20 appraiser or General Services Administration representative) and = certified by a responsible official of the recipient.=20

(2) The value of donated equipment shall not exceed the fair = market=20 value of equipment of the same age and condition at the time of=20 donation.=20

(3) The value of donated space shall not exceed the fair = rental value=20 of comparable space as established by an independent appraisal = of=20 comparable space and facilities in a privately-owned building in = the=20 same locality.=20

(4) The value of loaned equipment shall not exceed its fair = rental=20 value.=20

(5) The following requirements pertain to the recipient's = supporting=20 records for in-kind contributions from third parties.=20

(i) Volunteer services shall be documented and, to the = extent=20 feasible, supported by the same methods used by the recipient = for its=20 own employees.=20

(ii) The basis for determining the valuation for personal = service,=20 material, equipment, buildings and land shall be=20 documented.

___.24 Prog= ram=20 income.

(a) Federal awarding agencies shall apply the standards set = forth in=20 this section in requiring recipient organizations to account for = program=20 income related to projects financed in whole or in part with = Federal=20 funds.=20

(b) Except as provided in paragraph (h) below, program income = earned=20 during the project period shall be retained by the recipient = and, in=20 accordance with Federal awarding agency regulations or the terms = and=20 conditions of the award, shall be used in one or more of the = ways listed=20 in the following.=20

(1) Added to funds committed to the project by the Federal = awarding=20 agency and recipient and used to further eligible project or = program=20 objectives.=20

(2) Used to finance the non-Federal share of the project or = program.=20

(3) Deducted from the total project or program allowable cost = in=20 determining the net allowable costs on which the Federal share = of costs=20 is based.

(c) When an agency authorizes the disposition of program = income as=20 described in paragraphs (b)(1) or (b)(2), program income in = excess of=20 any limits stipulated shall be used in accordance with paragraph = (b)(3).=20

(d) In the event that the Federal awarding agency does not = specify in=20 its regulations or the terms and conditions of the award how = program=20 income is to be used, paragraph (b)(3) shall apply automatically = to all=20 projects or programs except research. For awards that support = research,=20 paragraph (b)(1) shall apply automatically unless the awarding = agency=20 indicates in the terms and conditions another alternative on the = award=20 or the recipient is subject to special award conditions, as = indicated in=20 Section ___.14.=20

(e) Unless Federal awarding agency regulations or the terms = and=20 conditions of the award provide otherwise, recipients shall have = no=20 obligation to the Federal Government regarding program income = earned=20 after the end of the project period.=20

(f) If authorized by Federal awarding agency regulations or = the terms=20 and conditions of the award, costs incident to the generation of = program=20 income may be deducted from gross income to determine program = income,=20 provided these costs have not been charged to the award.=20

(g) Proceeds from the sale of property shall be handled in = accordance=20 with the requirements of the Property Standards (See Sections = ___.30=20 through ___.37).=20

(h) Unless Federal awarding agency regulations or the terms = and=20 condition of the award provide otherwise, recipients shall have = no=20 obligation to the Federal Government with respect to program = income=20 earned from license fees and royalties for copyrighted material, = patents, patent applications, trademarks, and inventions = produced under=20 an award. However, Patent and Trademark Amendments (35 U.S.C. = 18) apply=20 to inventions made under an experimental, developmental, or = research=20 award.=20

___.25 Revi= sion=20 of budget and program plans.

(a) The budget plan is the financial expression of the = project or=20 program as approved during the award process. It may include = either the=20 Federal and non-Federal share, or only the Federal share, = depending upon=20 Federal awarding agency requirements. It shall be related to = performance=20 for program evaluation purposes whenever appropriate.=20

(b) Recipients are required to report deviations from budget = and=20 program plans, and request prior approvals for budget and = program plan=20 revisions, in accordance with this section.=20

(c) For nonconstruction awards, recipients shall request = prior=20 approvals from Federal awarding agencies for one or more of the=20 following program or budget related reasons.=20

(1) Change in the scope or the objective of the project or = program=20 (even if there is no associated budget revision requiring prior = written=20 approval).=20

(2) Change in a key person specified in the application or = award=20 document.=20

(3) The absence for more than three months, or a 25 percent = reduction=20 in time devoted to the project, by the approved project director = or=20 principal investigator.=20

(4) The need for additional Federal funding.=20

(5) The transfer of amounts budgeted for indirect costs to = absorb=20 increases in direct costs, or vice versa, if approval is = required by the=20 Federal awarding agency.=20

(6) The inclusion, unless waived by the Federal awarding = agency, of=20 costs that require prior approval in accordance with OMB = Circular A-21,=20 "Cost Principles for Educational Institutions," OMB Circular = A-122,=20 "Cost Principles for Non-Profit Organizations," or 45 CFR part = 74=20 Appendix E, "Principles for Determining Costs Applicable to = Research and=20 Development under Grants and Contracts with Hospitals," or 48 = CFR part=20 31, "Contract Cost Principles and Procedures," as applicable.=20

(7) The transfer of funds allotted for training allowances = (direct=20 payment to trainees) to other categories of expense.=20

(8) Unless described in the application and funded in the = approved=20 awards, the subaward, transfer or contracting out of any work = under an=20 award. This provision does not apply to the purchase of = supplies,=20 material, equipment or general support services.

(d) No other prior approval requirements for specific items = may be=20 imposed unless a deviation has been approved by OMB.=20

(e) Except for requirements listed in paragraphs (c)(1) and = (c)(4) of=20 this section, Federal awarding agencies are authorized, at their = option,=20 to waive cost-related and administrative prior written approvals = required by this Circular and OMB Circulars A-21 and A-122. Such = waivers=20 may include authorizing recipients to do any one or more of the=20 following.=20

(1) Incur pre-award costs 90 calendar days prior to award = or more=20 than 90 calendar days with the prior approval of the Federal = awarding=20 agency. All pre-award costs are incurred at the recipient's risk = (i.e.,=20 the Federal awarding agency is under no obligation to reimburse = such=20 costs if for any reason the recipient does not receive an award = or if=20 the award is less than anticipated and inadequate to cover such = costs).=20

(2) Initiate a one-time extension of the expiration date of = the award=20 of up to 12 months unless one or more of the following = conditions apply.=20 For one-time extensions, the recipient must notify the Federal = awarding=20 agency in writing with the supporting reasons and revised = expiration=20 date at least 10 days before the expiration date specified in = the award.=20 This one-time extension may not be exercised merely for the = purpose of=20 using unobligated balances.=20

(i) The terms and conditions of award prohibit the = extension.=20

(ii) The extension requires additional Federal funds.=20

(iii) The extension involves any change in the approved = objectives or=20 scope of the project.

(3) Carry forward unobligated balances to subsequent funding = periods.=20

(4) For awards that support research, unless the Federal = awarding=20 agency provides otherwise in the award or in the agency's = regulations,=20 the prior approval requirements described in paragraph (e) are=20 automatically waived (i.e., recipients need not obtain such = prior=20 approvals) unless one of the conditions included in paragraph = (e)(2)=20 applies.

(f) The Federal awarding agency may, at its option, restrict = the=20 transfer of funds among direct cost categories or programs, = functions=20 and activities for awards in which the Federal share of the = project=20 exceeds $100,000 and the cumulative amount of such transfers = exceeds or=20 is expected to exceed 10 percent of the total budget as last = approved by=20 the Federal awarding agency. No Federal awarding agency shall = permit a=20 transfer that would cause any Federal appropriation or part = thereof to=20 be used for purposes other than those consistent with the = original=20 intent of the appropriation.=20

(g) All other changes to nonconstruction budgets, except for = the=20 changes described in paragraph (j), do not require prior = approval.=20

(h) For construction awards, recipients shall request prior = written=20 approval promptly from Federal awarding agencies for budget = revisions=20 whenever (1), (2) or (3) apply.=20

(1) The revision results from changes in the scope or the = objective=20 of the project or program.=20

(2) The need arises for additional Federal funds to complete = the=20 project.=20

(3) A revision is desired which involves specific costs for = which=20 prior written approval requirements may be imposed consistent = with=20 applicable OMB cost principles listed in Section ___.27.=20

(i) No other prior approval requirements for specific items = may be=20 imposed unless a deviation has been approved by OMB.=20

(j) When a Federal awarding agency makes an award that = provides=20 support for both construction and nonconstruction work, the = Federal=20 awarding agency may require the recipient to request prior = approval from=20 the Federal awarding agency before making any fund or budget = transfers=20 between the two types of work supported.=20

(k) For both construction and nonconstruction awards, Federal = awarding agencies shall require recipients to notify the Federal = awarding agency in writing promptly whenever the amount of = Federal=20 authorized funds is expected to exceed the needs of the = recipient for=20 the project period by more than $5000 or five percent of the = Federal=20 award, whichever is greater. This notification shall not be = required if=20 an application for additional funding is submitted for a = continuation=20 award.=20

(l) When requesting approval for budget revisions, recipients = shall=20 use the budget forms that were used in the application unless = the=20 Federal awarding agency indicates a letter of request suffices.=20

(m) Within 30 calendar days from the date of receipt of the = request=20 for budget revisions, Federal awarding agencies shall review the = request=20 and notify the recipient whether the budget revisions have been=20 approved. If the revision is still under consideration at the = end of 30=20 calendar days, the Federal awarding agency shall inform the = recipient in=20 writing of the date when the recipient may expect the decision.=20

___.26 Non-= Federal=20 audits.

(a) Recipients and subrecipients that are institutions of = higher=20 education or other non-profit organizations (including = hospitals) shall=20 be subject to the audit requirements contained in the Single = Audit Act=20 Amendments of 1996 (31 USC 7501-7507) and revised OMB Circular = A-133,=20 "Audits of States, Local Governments, and Non-Profit = Organizations."=20

(b) State and local governments shall be subject to the audit = requirements contained in the Single Audit Act Amendments of = 1996 (31=20 USC 7501-7507) and revised OMB Circular A-133, "Audits of = States, Local=20 Governments, and Non-Profit Organizations."=20

(c) For-profit hospitals not covered by the audit provisions = of=20 revised OMB Circular A-133 shall be subject to the audit = requirements of=20 the Federal awarding agencies.=20

(d) Commercial organizations shall be subject to the audit=20 requirements of the Federal awarding agency or the prime = recipient as=20 incorporated into the award document.=20

___.27 Allo= wable=20 costs. For each kind of recipient, there is a set of Federal = principles for determining allowable costs. Allowability of = costs shall=20 be determined in accordance with the cost principles applicable = to the=20 entity incurring the costs. Thus, allowability of costs incurred = by=20 State, local or federally-recognized Indian tribal governments = is=20 determined in accordance with the provisions of OMB Circular = A-87, "Cost=20 Principles for State, Local, and Indian Tribal Governments." The = allowability of costs incurred by non-profit organizations is = determined=20 in accordance with the provisions of OMB Circular A-122, "Cost=20 Principles for Non-Profit Organizations." The allowability of = costs=20 incurred by institutions of higher education is determined in = accordance=20 with the provisions of OMB Circular A-21, "Cost Principles for=20 Educational Institutions." The allowability of costs incurred by = hospitals is determined in accordance with the provisions of = Appendix E=20 of 45 CFR part 74, "Principles for Determining Costs Applicable = to=20 Research and Development Under Grants and Contracts with = Hospitals." The=20 allowability of costs incurred by commercial organizations and = those=20 non-profit organizations listed in Attachment C to Circular = A-122 is=20 determined in accordance with the provisions of the Federal = Acquisition=20 Regulation (FAR) at 48 CFR part 31.

___.28 Peri= od=20 of availability of funds. Where a funding period is = specified, a=20 recipient may charge to the grant only allowable costs resulting = from=20 obligations incurred during the funding period and any pre-award = costs=20 authorized by the Federal awarding agency.

___.29 Cond= itional=20 exemptions.

(a) OMB authorizes conditional exemption from OMB = administrative=20 requirements and cost principles circulars for certain Federal = programs=20 with statutorily-authorized consolidated planning and = consolidated=20 administrative funding, that are identified by a Federal agency = and=20 approved by the head of the Executive department or = establishment. A=20 Federal agency shall consult with OMB during its consideration = of=20 whether to grant such an exemption.=20

(b) To promote efficiency in State and local program = administration,=20 when Federal non-entitlement programs with common purposes have = specific=20 statutorily-authorized consolidated planning and consolidated=20 administrative funding and where most of the State agency's = resources=20 come from non-Federal sources, Federal agencies may exempt these = covered=20 State-administered, non-entitlement grant programs from certain = OMB=20 grants management requirements. The exemptions would be from all = but the=20 allocability of costs provisions of OMB Circulars A-87 = (Attachment A,=20 subsection C.3), "Cost Principles for State, Local, and Indian = Tribal=20 Governments," A-21 (Section C, subpart 4), "Cost Principles for=20 Educational Institutions," and A-122 (Attachment A, subsection = A.4),=20 "Cost Principles for Non-Profit Organizations," and from all of = the=20 administrative requirements provisions of OMB Circular A-110, = "Uniform=20 Administrative Requirements for Grants and Agreements with = Institutions=20 of Higher Education, Hospitals, and Other Non-Profit = Organizations," and=20 the agencies' grants management common rule.=20

(c) When a Federal agency provides this flexibility, as a=20 prerequisite to a State's exercising this option, a State must = adopt its=20 own written fiscal and administrative requirements for expending = and=20 accounting for all funds, which are consistent with the = provisions of=20 OMB Circular A-87, and extend such policies to all = subrecipients. These=20 fiscal and administrative requirements must be sufficiently = specific to=20 ensure that: funds are used in compliance with all applicable = Federal=20 statutory and regulatory provisions, costs are reasonable and = necessary=20 for operating these programs, and funds are not be used for = general=20 expenses required to carry out other responsibilities of a State = or its=20 subrecipients.=20

Property Standards

___.30 = Purpose=20 of property standards. Sections ___.31 through ___.37 set = forth=20 uniform standards governing management and disposition of = property=20 furnished by the Federal Government whose cost was charged to a = project=20 supported by a Federal award. Federal awarding agencies shall = require=20 recipients to observe these standards under awards and shall not = impose=20 additional requirements, unless specifically required by Federal = statute. The recipient may use its own property management = standards and=20 procedures provided it observes the provisions of Sections = ___.31=20 through ___.37.

___.31 = Insurance=20 coverage. Recipients shall, at a minimum, provide the = equivalent=20 insurance coverage for real property and equipment acquired with = Federal=20 funds as provided to property owned by the recipient. = Federally-owned=20 property need not be insured unless required by the terms and = conditions=20 of the award.

___.32 = Real=20 property. Each Federal awarding agency shall prescribe = requirements=20 for recipients concerning the use and disposition of real = property=20 acquired in whole or in part under awards. Unless otherwise = provided by=20 statute, such requirements, at a minimum, shall contain the=20 following.

(a) Title to real property shall vest in the recipient = subject to the=20 condition that the recipient shall use the real property for the = authorized purpose of the project as long as it is needed and = shall not=20 encumber the property without approval of the Federal awarding = agency.=20

(b) The recipient shall obtain written approval by the = Federal=20 awarding agency for the use of real property in other=20 federally-sponsored projects when the recipient determines that = the=20 property is no longer needed for the purpose of the original = project.=20 Use in other projects shall be limited to those under=20 federally-sponsored projects (i.e., awards) or programs that = have=20 purposes consistent with those authorized for support by the = Federal=20 awarding agency.=20

(c) When the real property is no longer needed as provided in = paragraphs (a) and (b), the recipient shall request disposition=20 instructions from the Federal awarding agency or its successor = Federal=20 awarding agency. The Federal awarding agency shall observe one = or more=20 of the following disposition instructions.=20

(1) The recipient may be permitted to retain title without = further=20 obligation to the Federal Government after it compensates the = Federal=20 Government for that percentage of the current fair market value = of the=20 property attributable to the Federal participation in the = project.=20

(2) The recipient may be directed to sell the property under=20 guidelines provided by the Federal awarding agency and pay the = Federal=20 Government for that percentage of the current fair market value = of the=20 property attributable to the Federal participation in the = project (after=20 deducting actual and reasonable selling and fix-up expenses, if = any,=20 from the sales proceeds). When the recipient is authorized or = required=20 to sell the property, proper sales procedures shall be = established that=20 provide for competition to the extent practicable and result in = the=20 highest possible return.=20

(3) The recipient may be directed to transfer title to the = property=20 to the Federal Government or to an eligible third party provided = that,=20 in such cases, the recipient shall be entitled to compensation = for its=20 attributable percentage of the current fair market value of the=20 property.

___.33 = Federally-owned=20 and exempt property.

(a) Federally-owned property.=20

(1) Title to federally-owned property remains vested in the = Federal=20 Government. Recipients shall submit annually an inventory = listing of=20 federally-owned property in their custody to the Federal = awarding=20 agency. Upon completion of the award or when the property is no = longer=20 needed, the recipient shall report the property to the Federal = awarding=20 agency for further Federal agency utilization.=20

(2) If the Federal awarding agency has no further need for = the=20 property, it shall be declared excess and reported to the = General=20 Services Administration, unless the Federal awarding agency has=20 statutory authority to dispose of the property by alternative = methods=20 (e.g., the authority provided by the Federal Technology Transfer = Act (15=20 U.S.C. 3710 (I)) to donate research equipment to educational and = non-profit organizations in accordance with E.O. 12821, = "Improving=20 Mathematics and Science Education in Support of the National = Education=20 Goals.") Appropriate instructions shall be issued to the = recipient by=20 the Federal awarding agency.

(b) Exempt property. When statutory authority exists, the = Federal=20 awarding agency has the option to vest title to property = acquired with=20 Federal funds in the recipient without further obligation to the = Federal=20 Government and under conditions the Federal awarding agency = considers=20 appropriate. Such property is "exempt property." Should a = Federal=20 awarding agency not establish conditions, title to exempt = property upon=20 acquisition shall vest in the recipient without further = obligation to=20 the Federal Government.=20

___.34 = Equipment.

(a) Title to equipment acquired by a recipient with Federal = funds=20 shall vest in the recipient, subject to conditions of this = section.=20

(b) The recipient shall not use equipment acquired with = Federal funds=20 to provide services to non-Federal outside organizations for a = fee that=20 is less than private companies charge for equivalent services, = unless=20 specifically authorized by Federal statute, for as long as the = Federal=20 Government retains an interest in the equipment.=20

(c) The recipient shall use the equipment in the project or = program=20 for which it was acquired as long as needed, whether or not the = project=20 or program continues to be supported by Federal funds and shall = not=20 encumber the property without approval of the Federal awarding = agency.=20 When no longer needed for the original project or program, the = recipient=20 shall use the equipment in connection with its other = federally-sponsored=20 activities, in the following order of priority: (i) Activities = sponsored=20 by the Federal awarding agency which funded the original = project, then=20 (ii) activities sponsored by other Federal awarding agencies.=20

(d) During the time that equipment is used on the project or = program=20 for which it was acquired, the recipient shall make it available = for use=20 on other projects or programs if such other use will not = interfere with=20 the work on the project or program for which the equipment was=20 originally acquired. First preference for such other use shall = be given=20 to other projects or programs sponsored by the Federal awarding = agency=20 that financed the equipment; second preference shall be given to = projects or programs sponsored by other Federal awarding = agencies. If=20 the equipment is owned by the Federal Government, use on other=20 activities not sponsored by the Federal Government shall be = permissible=20 if authorized by the Federal awarding agency. User charges shall = be=20 treated as program income.=20

(e) When acquiring replacement equipment, the recipient may = use the=20 equipment to be replaced as trade-in or sell the equipment and = use the=20 proceeds to offset the costs of the replacement equipment = subject to the=20 approval of the Federal awarding agency.=20

(f) The recipient's property management standards for = equipment=20 acquired with Federal funds and federally-owned equipment shall = include=20 all of the following.=20

(1) Equipment records shall be maintained accurately and = shall=20 include the following information.=20

(i) A description of the equipment.=20

(ii) Manufacturer's serial number, model number, Federal = stock=20 number, national stock number, or other identification number.=20

(iii) Source of the equipment, including the award number.=20

(iv) Whether title vests in the recipient or the Federal = Government.=20

(v) Acquisition date (or date received, if the equipment was=20 furnished by the Federal Government) and cost.=20

(vi) Information from which one can calculate the percentage = of=20 Federal participation in the cost of the equipment (not = applicable to=20 equipment furnished by the Federal Government).=20

(vii) Location and condition of the equipment and the date = the=20 information was reported.=20

(viii) Unit acquisition cost.=20

(ix) Ultimate disposition data, including date of disposal = and sales=20 price or the method used to determine current fair market value = where a=20 recipient compensates the Federal awarding agency for its=20 share.

(2) Equipment owned by the Federal Government shall be = identified to=20 indicate Federal ownership.=20

(3) A physical inventory of equipment shall be taken and the = results=20 reconciled with the equipment records at least once every two = years. Any=20 differences between quantities determined by the physical = inspection and=20 those shown in the accounting records shall be investigated to = determine=20 the causes of the difference. The recipient shall, in connection = with=20 the inventory, verify the existence, current utilization, and = continued=20 need for the equipment.=20

(4) A control system shall be in effect to insure adequate = safeguards=20 to prevent loss, damage, or theft of the equipment. Any loss, = damage, or=20 theft of equipment shall be investigated and fully documented; = if the=20 equipment was owned by the Federal Government, the recipient = shall=20 promptly notify the Federal awarding agency.=20

(5) Adequate maintenance procedures shall be implemented to = keep the=20 equipment in good condition.=20

(6) Where the recipient is authorized or required to sell the = equipment, proper sales procedures shall be established which = provide=20 for competition to the extent practicable and result in the = highest=20 possible return.

(g) When the recipient no longer needs the equipment, the = equipment=20 may be used for other activities in accordance with the = following=20 standards. For equipment with a current per unit fair market = value of=20 $5000 or more, the recipient may retain the equipment for other = uses=20 provided that compensation is made to the original Federal = awarding=20 agency or its successor. The amount of compensation shall be = computed by=20 applying the percentage of Federal participation in the cost of = the=20 original project or program to the current fair market value of = the=20 equipment. If the recipient has no need for the equipment, the = recipient=20 shall request disposition instructions from the Federal awarding = agency.=20 The Federal awarding agency shall determine whether the = equipment can be=20 used to meet the agency's requirements. If no requirement exists = within=20 that agency, the availability of the equipment shall be reported = to the=20 General Services Administration by the Federal awarding agency = to=20 determine whether a requirement for the equipment exists in = other=20 Federal agencies. The Federal awarding agency shall issue = instructions=20 to the recipient no later than 120 calendar days after the = recipient's=20 request and the following procedures shall govern.=20

(1) If so instructed or if disposition instructions are not = issued=20 within 120 calendar days after the recipient's request, the = recipient=20 shall sell the equipment and reimburse the Federal awarding = agency an=20 amount computed by applying to the sales proceeds the percentage = of=20 Federal participation in the cost of the original project or = program.=20 However, the recipient shall be permitted to deduct and retain = from the=20 Federal share $500 or ten percent of the proceeds, whichever is = less,=20 for the recipient's selling and handling expenses.=20

(2) If the recipient is instructed to ship the equipment = elsewhere,=20 the recipient shall be reimbursed by the Federal Government by = an amount=20 which is computed by applying the percentage of the recipient's=20 participation in the cost of the original project or program to = the=20 current fair market value of the equipment, plus any reasonable = shipping=20 or interim storage costs incurred.=20

(3) If the recipient is instructed to otherwise dispose of = the=20 equipment, the recipient shall be reimbursed by the Federal = awarding=20 agency for such costs incurred in its disposition.=20

(4) The Federal awarding agency may reserve the right to = transfer the=20 title to the Federal Government or to a third party named by the = Federal=20 Government when such third party is otherwise eligible under = existing=20 statutes. Such transfer shall be subject to the following = standards.=20

(i) The equipment shall be appropriately identified in the = award or=20 otherwise made known to the recipient in writing.=20

(ii) The Federal awarding agency shall issue disposition = instructions=20 within 120 calendar days after receipt of a final inventory. The = final=20 inventory shall list all equipment acquired with grant funds and = federally-owned equipment. If the Federal awarding agency fails = to issue=20 disposition instructions within the 120 calendar day period, the = recipient shall apply the standards of this section, as = appropriate.=20

(iii) When the Federal awarding agency exercises its right to = take=20 title, the equipment shall be subject to the provisions for=20 federally-owned equipment.

___.35 = Supplies=20 and other expendable property.

(a) Title to supplies and other expendable property shall = vest in the=20 recipient upon acquisition. If there is a residual inventory of = unused=20 supplies exceeding $5000 in total aggregate value upon = termination or=20 completion of the project or program and the supplies are not = needed for=20 any other federally-sponsored project or program, the recipient = shall=20 retain the supplies for use on non-Federal sponsored activities = or sell=20 them, but shall, in either case, compensate the Federal = Government for=20 its share. The amount of compensation shall be computed in the = same=20 manner as for equipment.=20

(b) The recipient shall not use supplies acquired with = Federal funds=20 to provide services to non-Federal outside organizations for a = fee that=20 is less than private companies charge for equivalent services, = unless=20 specifically authorized by Federal statute as long as the = Federal=20 Government retains an interest in the supplies.=20

___.36 = Intangible=20 property.

(a) The recipient may copyright any work that is subject to = copyright=20 and was developed, or for which ownership was purchased, under = an award.=20 The Federal awarding agency(ies) reserve a royalty-free, = nonexclusive=20 and irrevocable right to reproduce, publish, or otherwise use = the work=20 for Federal purposes, and to authorize others to do so.=20

(b) Recipients are subject to applicable regulations = governing=20 patents and inventions, including government-wide regulations = issued by=20 the Department of Commerce at 37 CFR part 401, "Rights to = Inventions=20 Made by Nonprofit Organizations and Small Business Firms Under=20 Government Grants, Contracts and Cooperative Agreements."=20

(1) obtain, reproduce, publish or otherwise use the data = first=20 produced under an award; and=20

(2) authorize others to receive, reproduce, publish, or = otherwise use=20 such data for Federal purposes.=20

(d) (1) In addition, in response to a Freedom of Information = Act=20 (FOIA) request for research data relating to published research = findings=20 produced under an award that were used by the Federal Government = in=20 developing an agency action that has the force and effect of = law, the=20 Federal awarding agency shall request, and the recipient shall = provide,=20 within a reasonable time, the research data so that they can be = made=20 available to the public through the procedures established under = the=20 FOIA. If the Federal awarding agency obtains the research data = solely in=20 response to a FOIA request, the agency may charge the requester = a=20 reasonable fee equaling the full incremental cost of obtaining = the=20 research data. This fee should reflect costs incurred by the = agency, the=20 recipient, and applicable subrecipients. This fee is in addition = to any=20 fees the agency may assess under the FOIA (5 U.S.C. = 552(a)(4)(A)).=20

(2) The following definitions apply for purposes of = paragraph (d)=20 of this section:=20

(i) Research data is defined as the recorded = factual=20 material commonly accepted in the scientific community as = necessary to=20 validate research findings, but not any of the following: = preliminary=20 analyses, drafts of scientific papers, plans for future = research, peer=20 reviews, or communications with colleagues. This "recorded" = material=20 excludes physical objects (e.g., laboratory samples). Research = data also=20 do not include:=20

(A) Trade secrets, commercial information, materials = necessary to=20 be held confidential by a researcher until they are published, = or=20 similar information which is protected under law; and=20

(B) Personnel and medical information and similar information = the=20 disclosure of which would constitute a clearly unwarranted = invasion of=20 personal privacy, such as information that could be used to = identify a=20 particular person in a research study.

(ii) Published is defined as either when:=20

(A) Research findings are published in a peer-reviewed = scientific=20 or technical journal; or=20

(B) A Federal agency publicly and officially cites the = research=20 findings in support of an agency action that has the force and = effect of=20 law.

(iii) Used by the Federal Government in developing an = agency=20 action that has the force and effect of law is defined as = when an=20 agency publicly and officially cites the research findings in = support of=20 an agency action that has the force and effect of = law.

(e) Title to intangible property and debt instruments = acquired under=20 an award or subaward vests upon acquisition in the recipient. = The=20 recipient shall use that property for the originally-authorized = purpose,=20 and the recipient shall not encumber the property without = approval of=20 the Federal awarding agency. When no longer needed for the = originally=20 authorized purpose, disposition of the intangible property shall = occur=20 in accordance with the provisions of paragraph ___.34(g).=20

___.37 = Property=20 trust relationship. Real property, equipment, intangible = property=20 and debt instruments that are acquired or improved with Federal = funds=20 shall be held in trust by the recipient as trustee for the = beneficiaries=20 of the project or program under which the property was acquired = or=20 improved. Agencies may require recipients to record liens or = other=20 appropriate notices of record to indicate that personal or real = property=20 has been acquired or improved with Federal funds and that use = and=20 disposition conditions apply to the property.

Procurement Standards

___.40 Purpose=20 of procurement standards. Sections ___.41 through ___.48 set = forth=20 standards for use by recipients in establishing procedures for = the=20 procurement of supplies and other expendable property, = equipment, real=20 property and other services with Federal funds. These standards = are=20 furnished to ensure that such materials and services are = obtained in an=20 effective manner and in compliance with the provisions of = applicable=20 Federal statutes and executive orders. No additional procurement = standards or requirements shall be imposed by the Federal = awarding=20 agencies upon recipients, unless specifically required by = Federal=20 statute or executive order or approved by OMB.

___.41 Recipient=20 responsibilities. The standards contained in this section do = not=20 relieve the recipient of the contractual responsibilities = arising under=20 its contract(s). The recipient is the responsible authority, = without=20 recourse to the Federal awarding agency, regarding the = settlement and=20 satisfaction of all contractual and administrative issues = arising out of=20 procurements entered into in support of an award or other = agreement.=20 This includes disputes, claims, protests of award, source = evaluation or=20 other matters of a contractual nature. Matters concerning = violation of=20 statute are to be referred to such Federal, State or local = authority as=20 may have proper jurisdiction.

___.42 Codes=20 of conduct. The recipient shall maintain written standards = of=20 conduct governing the performance of its employees engaged in = the award=20 and administration of contracts. No employee, officer, or agent = shall=20 participate in the selection, award, or administration of a = contract=20 supported by Federal funds if a real or apparent conflict of = interest=20 would be involved. Such a conflict would arise when the = employee,=20 officer, or agent, any member of his or her immediate family, = his or her=20 partner, or an organization which employs or is about to employ = any of=20 the parties indicated herein, has a financial or other interest = in the=20 firm selected for an award. The officers, employees, and agents = of the=20 recipient shall neither solicit nor accept gratuities, favors, = or=20 anything of monetary value from contractors, or parties to=20 subagreements. However, recipients may set standards for = situations in=20 which the financial interest is not substantial or the gift is = an=20 unsolicited item of nominal value. The standards of conduct = shall=20 provide for disciplinary actions to be applied for violations of = such=20 standards by officers, employees, or agents of the = recipient.

___.43 Competition.=20 All procurement transactions shall be conducted in a manner to = provide,=20 to the maximum extent practical, open and free competition. The=20 recipient shall be alert to organizational conflicts of interest = as well=20 as noncompetitive practices among contractors that may restrict = or=20 eliminate competition or otherwise restrain trade. In order to = ensure=20 objective contractor performance and eliminate unfair = competitive=20 advantage, contractors that develop or draft specifications,=20 requirements, statements of work, invitations for bids and/or = requests=20 for proposals shall be excluded from competing for such = procurements.=20 Awards shall be made to the bidder or offeror whose bid or offer = is=20 responsive to the solicitation and is most advantageous to the=20 recipient, price, quality and other factors considered. = Solicitations=20 shall clearly set forth all requirements that the bidder or = offeror=20 shall fulfill in order for the bid or offer to be evaluated by = the=20 recipient. Any and all bids or offers may be rejected when it is = in the=20 recipient's interest to do so.

___.44 Procurement=20 procedures.

(a) All recipients shall establish written procurement = procedures.=20 These procedures shall provide for, at a minimum, that (1), (2) = and (3)=20 apply.=20

(1) Recipients avoid purchasing unnecessary items.=20

(2) Where appropriate, an analysis is made of lease and = purchase=20 alternatives to determine which would be the most economical and = practical procurement for the Federal Government.=20

(3) Solicitations for goods and services provide for all of = the=20 following.=20

(i) A clear and accurate description of the technical = requirements=20 for the material, product or service to be procured. In = competitive=20 procurements, such a description shall not contain features = which unduly=20 restrict competition.=20

(ii) Requirements which the bidder/offeror must fulfill and = all other=20 factors to be used in evaluating bids or proposals.=20

(iii) A description, whenever practicable, of technical = requirements=20 in terms of functions to be performed or performance required, = including=20 the range of acceptable characteristics or minimum acceptable = standards.=20

(iv) The specific features of "brand name or equal" = descriptions that=20 bidders are required to meet when such items are included in the = solicitation.=20

(v) The acceptance, to the extent practicable and = economically=20 feasible, of products and services dimensioned in the metric = system of=20 measurement.=20

(vi) Preference, to the extent practicable and economically = feasible,=20 for products and services that conserve natural resources and = protect=20 the environment and are energy efficient.

(b) Positive efforts shall be made by recipients to utilize = small=20 businesses, minority-owned firms, and women's business = enterprises,=20 whenever possible. Recipients of Federal awards shall take all = of the=20 following steps to further this goal.=20

(1) Ensure that small businesses, minority-owned firms, and = women's=20 business enterprises are used to the fullest extent practicable. =

(2) Make information on forthcoming opportunities available = and=20 arrange time frames for purchases and contracts to encourage and = facilitate participation by small businesses, minority-owned = firms, and=20 women's business enterprises.=20

(3) Consider in the contract process whether firms competing = for=20 larger contracts intend to subcontract with small businesses,=20 minority-owned firms, and women's business enterprises.=20

(4) Encourage contracting with consortiums of small = businesses,=20 minority-owned firms and women's business enterprises when a = contract is=20 too large for one of these firms to handle individually.=20

(5) Use the services and assistance, as appropriate, of such=20 organizations as the Small Business Administration and the = Department of=20 Commerce's Minority Business Development Agency in the = solicitation and=20 utilization of small businesses, minority- owned firms and = women's=20 business enterprises.

(c) The type of procuring instruments used (e.g., fixed price = contracts, cost reimbursable contracts, purchase orders, and = incentive=20 contracts) shall be determined by the recipient but shall be = appropriate=20 for the particular procurement and for promoting the best = interest of=20 the program or project involved. The = "cost-plus-a-percentage-of-cost" or=20 "percentage of construction cost" methods of contracting shall = not be=20 used.=20

(d) Contracts shall be made only with responsible contractors = who=20 possess the potential ability to perform successfully under the = terms=20 and conditions of the proposed procurement. Consideration shall = be given=20 to such matters as contractor integrity, record of past = performance,=20 financial and technical resources or accessibility to other = necessary=20 resources. In certain circumstances, contracts with certain = parties are=20 restricted by agencies' implementation of E.O.s 12549 and 12689, = "Debarment and Suspension."=20

(e) Recipients shall, on request, make available for the = Federal=20 awarding agency, pre-award review and procurement documents, = such as=20 request for proposals or invitations for bids, independent cost=20 estimates, etc., when any of the following conditions apply.=20

(1) A recipient's procurement procedures or operation fails = to=20 comply with the procurement standards in the Federal awarding = agency's=20 implementation of this Circular.=20

(2) The procurement is expected to exceed the small purchase=20 threshold fixed at 41 U.S.C. 403 (11) (currently $25,000) and is = to be=20 awarded without competition or only one bid or offer is received = in=20 response to a solicitation.=20

(3) The procurement, which is expected to exceed the small = purchase=20 threshold, specifies a "brand name" product.=20

(4) The proposed award over the small purchase threshold is = to be=20 awarded to other than the apparent low bidder under a sealed bid = procurement.=20

(5) A proposed contract modification changes the scope of a = contract=20 or increases the contract amount by more than the amount of the = small=20 purchase threshold.=20

___.45 Cost=20 and price analysis. Some form of cost or price analysis = shall be=20 made and documented in the procurement files in connection with = every=20 procurement action. Price analysis may be accomplished in = various ways,=20 including the comparison of price quotations submitted, market = prices=20 and similar indicia, together with discounts. Cost analysis is = the=20 review and evaluation of each element of cost to determine=20 reasonableness, allocability and allowability.

___.46 Procurement=20 records. Procurement records and files for purchases in = excess of=20 the small purchase threshold shall include the following at a = minimum:=20 (a) basis for contractor selection, (b) justification for lack = of=20 competition when competitive bids or offers are not obtained, = and (c)=20 basis for award cost or price.

___.47 Contract=20 administration. A system for contract administration shall = be=20 maintained to ensure contractor conformance with the terms, = conditions=20 and specifications of the contract and to ensure adequate and = timely=20 follow up of all purchases. Recipients shall evaluate contractor = performance and document, as appropriate, whether contractors = have met=20 the terms, conditions and specifications of the contract.

___.48 Contract=20 provisions. The recipient shall include, in addition to = provisions=20 to define a sound and complete agreement, the following = provisions in=20 all contracts. The following provisions shall also be applied to = subcontracts.

(a) Contracts in excess of the small purchase threshold shall = contain=20 contractual provisions or conditions that allow for = administrative,=20 contractual, or legal remedies in instances in which a = contractor=20 violates or breaches the contract terms, and provide for such = remedial=20 actions as may be appropriate.

(b) All contracts in excess of the small purchase threshold = shall=20 contain suitable provisions for termination by the recipient, = including=20 the manner by which termination shall be effected and the basis = for=20 settlement. In addition, such contracts shall describe = conditions under=20 which the contract may be terminated for default as well as = conditions=20 where the contract may be terminated because of circumstances = beyond the=20 control of the contractor.

(c) Except as otherwise required by statute, an award that = requires=20 the contracting (or subcontracting) for construction or facility = improvements shall provide for the recipient to follow its own=20 requirements relating to bid guarantees, performance bonds, and = payment=20 bonds unless the construction contract or subcontract exceeds = $100,000.=20 For those contracts or subcontracts exceeding $100,000, the = Federal=20 awarding agency may accept the bonding policy and requirements = of the=20 recipient, provided the Federal awarding agency has made a = determination=20 that the Federal Government's interest is adequately protected. = If such=20 a determination has not been made, the minimum requirements = shall be as=20 follows.

(1) A bid guarantee from each bidder equivalent to five = percent of=20 the bid price. The "bid guarantee" shall consist of a firm = commitment=20 such as a bid bond, certified check, or other negotiable = instrument=20 accompanying a bid as assurance that the bidder shall, upon = acceptance=20 of his bid, execute such contractual documents as may be = required within=20 the time specified.=20

(2) A performance bond on the part of the contractor for 100 = percent=20 of the contract price. A "performance bond" is one executed in=20 connection with a contract to secure fulfillment of all the = contractor's=20 obligations under such contract.

(3) A payment bond on the part of the contractor for 100 = percent of=20 the contract price. A "payment bond" is one executed in = connection with=20 a contract to assure payment as required by statute of all = persons=20 supplying labor and material in the execution of the work = provided for=20 in the contract.

(4) Where bonds are required in the situations described = herein, the=20 bonds shall be obtained from companies holding certificates of = authority=20 as acceptable sureties pursuant to 31 CFR part 223, "Surety = Companies=20 Doing Business with the United States."

(d) All negotiated contracts (except those for less than the = small=20 purchase threshold) awarded by recipients shall include a = provision to=20 the effect that the recipient, the Federal awarding agency, the=20 Comptroller General of the United States, or any of their duly=20 authorized representatives, shall have access to any books, = documents,=20 papers and records of the contractor which are directly = pertinent to a=20 specific program for the purpose of making audits, examinations, = excerpts and transcriptions.

(e) All contracts, including small purchases, awarded by = recipients=20 and their contractors shall contain the procurement provisions = of=20 Appendix A to this Circular, as applicable.=20

Reports and Records

___.50 P= urpose=20 of reports and records. Sections ___.51 through ___.53 set = forth the=20 procedures for monitoring and reporting on the recipient's = financial and=20 program performance and the necessary standard reporting forms. = They=20 also set forth record retention requirements.

___.51 M= onitoring=20 and reporting program performance.

(a) Recipients are responsible for managing and monitoring = each=20 project, program, subaward, function or activity supported by = the award.=20 Recipients shall monitor subawards to ensure subrecipients have = met the=20 audit requirements as delineated in Section ___.26.

(b) The Federal awarding agency shall prescribe the frequency = with=20 which the performance reports shall be submitted. Except as = provided in=20 paragraph ___.51(f), performance reports shall not be required = more=20 frequently than quarterly or, less frequently than annually. = Annual=20 reports shall be due 90 calendar days after the grant year; = quarterly or=20 semi-annual reports shall be due 30 days after the reporting = period. The=20 Federal awarding agency may require annual reports before the=20 anniversary dates of multiple year awards in lieu of these = requirements.=20 The final performance reports are due 90 calendar days after the = expiration or termination of the award.=20

(c) If inappropriate, a final technical or performance report = shall=20 not be required after completion of the project.

(d) When required, performance reports shall generally = contain, for=20 each award, brief information on each of the following.=20

(1) A comparison of actual accomplishments with the goals = and=20 objectives established for the period, the findings of the = investigator,=20 or both. Whenever appropriate and the output of programs or = projects can=20 be readily quantified, such quantitative data should be related = to cost=20 data for computation of unit costs.=20

(2) Reasons why established goals were not met, if = appropriate.

(3) Other pertinent information including, when appropriate, = analysis=20 and explanation of cost overruns or high unit costs.

(e) Recipients shall not be required to submit more than the = original=20 and two copies of performance reports.

(f) Recipients shall immediately notify the Federal awarding = agency=20 of developments that have a significant impact on the = award-supported=20 activities. Also, notification shall be given in the case of = problems,=20 delays, or adverse conditions which materially impair the = ability to=20 meet the objectives of the award. This notification shall = include a=20 statement of the action taken or contemplated, and any = assistance needed=20 to resolve the situation.

(g) Federal awarding agencies may make site visits, as = needed.=20

(h) Federal awarding agencies shall comply with clearance=20 requirements of 5 CFR part 1320 when requesting performance data = from=20 recipients.

___.52 F= inancial=20 reporting.

(a) The following forms or such other forms as may be = approved by OMB=20 are authorized for obtaining financial information from = recipients.

(1) SF-269 or SF-269A, Financial Status Report.=20

(i) Each Federal awarding agency shall require recipients = to use=20 the SF-269 or SF-269A to report the status of funds for all=20 nonconstruction projects or programs. A Federal awarding agency = may,=20 however, have the option of not requiring the SF-269 or SF-269A = when the=20 SF-270, Request for Advance or Reimbursement, or SF-272, Report = of=20 Federal Cash Transactions, is determined to provide adequate = information=20 to meet its needs, except that a final SF-269 or SF-269A shall = be=20 required at the completion of the project when the SF-270 is = used only=20 for advances.=20

(ii) The Federal awarding agency shall prescribe whether the = report=20 shall be on a cash or accrual basis. If the Federal awarding = agency=20 requires accrual information and the recipient's accounting = records are=20 not normally kept on the accrual basis, the recipient shall not = be=20 required to convert its accounting system, but shall develop = such=20 accrual information through best estimates based on an analysis = of the=20 documentation on hand.

(iii) The Federal awarding agency shall determine the = frequency of=20 the Financial Status Report for each project or program, = considering the=20 size and complexity of the particular project or program. = However, the=20 report shall not be required more frequently than quarterly or = less=20 frequently than annually. A final report shall be required at = the=20 completion of the agreement.

(iv) The Federal awarding agency shall require recipients to = submit=20 the SF-269 or SF-269A (an original and no more than two copies) = no later=20 than 30 days after the end of each specified reporting period = for=20 quarterly and semi-annual reports, and 90 calendar days for = annual and=20 final reports. Extensions of reporting due dates may be approved = by the=20 Federal awarding agency upon request of the recipient.

(2) SF-272, Report of Federal Cash Transactions.

(i) When funds are advanced to recipients the Federal = awarding=20 agency shall require each recipient to submit the SF-272 and, = when=20 necessary, its continuation sheet, SF-272a. The Federal awarding = agency=20 shall use this report to monitor cash advanced to recipients and = to=20 obtain disbursement information for each agreement with the = recipients.=20

(ii) Federal awarding agencies may require forecasts of = Federal cash=20 requirements in the "Remarks" section of the report.

(iii) When practical and deemed necessary, Federal awarding = agencies=20 may require recipients to report in the "Remarks" section the = amount of=20 cash advances received in excess of three days. Recipients shall = provide=20 short narrative explanations of actions taken to reduce the = excess=20 balances.=20

(iv) Recipients shall be required to submit not more than the = original and two copies of the SF-272 15 calendar days following = the end=20 of each quarter. The Federal awarding agencies may require a = monthly=20 report from those recipients receiving advances totaling $1 = million or=20 more per year.

(v) Federal awarding agencies may waive the requirement for=20 submission of the SF-272 for any one of the following reasons: = (1) When=20 monthly advances do not exceed $25,000 per recipient, provided = that such=20 advances are monitored through other forms contained in this = section;=20 (2) If, in the Federal awarding agency's opinion, the = recipient's=20 accounting controls are adequate to minimize excessive Federal = advances;=20 or, (3) When the electronic payment mechanisms provide adequate=20 data.

(b) When the Federal awarding agency needs additional = information or=20 more frequent reports, the following shall be observed.=20

(1) When additional information is needed to comply with=20 legislative requirements, Federal awarding agencies shall issue=20 instructions to require recipients to submit such information = under the=20 "Remarks" section of the reports.=20

(2) When a Federal awarding agency determines that a = recipient's=20 accounting system does not meet the standards in Section ___.21, = additional pertinent information to further monitor awards may = be=20 obtained upon written notice to the recipient until such time as = the=20 system is brought up to standard. The Federal awarding agency, = in=20 obtaining this information, shall comply with report clearance=20 requirements of 5 CFR part 1320.

(3) Federal awarding agencies are encouraged to shade out any = line=20 item on any report if not necessary.

(4) Federal awarding agencies may accept the identical = information=20 from the recipients in machine readable format or computer = printouts or=20 electronic outputs in lieu of prescribed formats.=20

(5) Federal awarding agencies may provide computer or = electronic=20 outputs to recipients when such expedites or contributes to the = accuracy=20 of reporting.

___.53 R= etention=20 and access requirements for records.

(a) This section sets forth requirements for record retention = and=20 access to records for awards to recipients. Federal awarding = agencies=20 shall not impose any other record retention or access = requirements upon=20 recipients.

(b) Financial records, supporting documents, statistical = records, and=20 all other records pertinent to an award shall be retained for a = period=20 of three years from the date of submission of the final = expenditure=20 report or, for awards that are renewed quarterly or annually, = from the=20 date of the submission of the quarterly or annual financial = report, as=20 authorized by the Federal awarding agency. The only exceptions = are the=20 following.=20

(1) If any litigation, claim, or audit is started before = the=20 expiration of the 3-year period, the records shall be retained = until all=20 litigation, claims or audit findings involving the records have = been=20 resolved and final action taken.=20

(2) Records for real property and equipment acquired with = Federal=20 funds shall be retained for 3 years after final disposition. =

(3) When records are transferred to or maintained by the = Federal=20 awarding agency, the 3-year retention requirement is not = applicable to=20 the recipient.

(4) Indirect cost rate proposals, cost allocations plans, = etc. as=20 specified in paragraph ___.53(g).

(c) Copies of original records may be substituted for the = original=20 records if authorized by the Federal awarding agency.=20

(d) The Federal awarding agency shall request transfer of = certain=20 records to its custody from recipients when it determines that = the=20 records possess long term retention value. However, in order to = avoid=20 duplicate recordkeeping, a Federal awarding agency may make = arrangements=20 for recipients to retain any records that are continuously = needed for=20 joint use.

(e) The Federal awarding agency, the Inspector General, = Comptroller=20 General of the United States, or any of their duly authorized=20 representatives, have the right of timely and unrestricted = access to any=20 books, documents, papers, or other records of recipients that = are=20 pertinent to the awards, in order to make audits, examinations,=20 excerpts, transcripts and copies of such documents. This right = also=20 includes timely and reasonable access to a recipient's personnel = for the=20 purpose of interview and discussion related to such documents. = The=20 rights of access in this paragraph are not limited to the = required=20 retention period, but shall last as long as records are = retained.

(f) Unless required by statute, no Federal awarding agency = shall=20 place restrictions on recipients that limit public access to the = records=20 of recipients that are pertinent to an award, except when the = Federal=20 awarding agency can demonstrate that such records shall be kept=20 confidential and would have been exempted from disclosure = pursuant to=20 the Freedom of Information Act (5 U.S.C. 552) if the records had = belonged to the Federal awarding agency.=20

(g) Indirect cost rate proposals, cost allocations plans, = etc.=20 Paragraphs (g)(1) and (g)(2) apply to the following types of = documents,=20 and their supporting records: indirect cost rate computations or = proposals, cost allocation plans, and any similar accounting=20 computations of the rate at which a particular group of costs is = chargeable (such as computer usage chargeback rates or composite = fringe=20 benefit rates).

(1) If submitted for negotiation. If the recipient submits = to the=20 Federal awarding agency or the subrecipient submits to the = recipient the=20 proposal, plan, or other computation to form the basis for = negotiation=20 of the rate, then the 3-year retention period for its supporting = records=20 starts on the date of such submission.=20

(2) If not submitted for negotiation. If the recipient is not = required to submit to the Federal awarding agency or the = subrecipient is=20 not required to submit to the recipient the proposal, plan, or = other=20 computation for negotiation purposes, then the 3-year retention = period=20 for the proposal, plan, or other computation and its supporting = records=20 starts at the end of the fiscal year (or other accounting = period)=20 covered by the proposal, plan, or other computation.

Termination and Enforcement

___.60 Purpose=20 of termination and enforcement. Sections ___.61 and ___.62 = set forth=20 uniform suspension, termination and enforcement procedures.

___.61 Termination.

(a) Awards may be terminated in whole or in part only if (1), = (2) or=20 (3) apply.

(1) By the Federal awarding agency, if a recipient = materially fails=20 to comply with the terms and conditions of an award.=20

(2) By the Federal awarding agency with the consent of the = recipient,=20 in which case the two parties shall agree upon the termination=20 conditions, including the effective date and, in the case of = partial=20 termination, the portion to be terminated.=20

(3) By the recipient upon sending to the Federal awarding = agency=20 written notification setting forth the reasons for such = termination, the=20 effective date, and, in the case of partial termination, the = portion to=20 be terminated. However, if the Federal awarding agency = determines in the=20 case of partial termination that the reduced or modified portion = of the=20 grant will not accomplish the purposes for which the grant was = made, it=20 may terminate the grant in its entirety under either paragraphs = (a)(1)=20 or (2).

(b) If costs are allowed under an award, the responsibilities = of the=20 recipient referred to in paragraph ___.71(a), including those = for=20 property management as applicable, shall be considered in the=20 termination of the award, and provision shall be made for = continuing=20 responsibilities of the recipient after termination, as = appropriate.=20

___.62 Enforcement.=20

(a) Remedies for noncompliance. If a recipient materially = fails to=20 comply with the terms and conditions of an award, whether stated = in a=20 Federal statute, regulation, assurance, application, or notice = of award,=20 the Federal awarding agency may, in addition to imposing any of = the=20 special conditions outlined in Section ___.14, take one or more = of the=20 following actions, as appropriate in the circumstances.

(1) Temporarily withhold cash payments pending correction = of the=20 deficiency by the recipient or more severe enforcement action by = the=20 Federal awarding agency.=20

(2) Disallow (that is, deny both use of funds and any = applicable=20 matching credit for) all or part of the cost of the activity or = action=20 not in compliance.

(3) Wholly or partly suspend or terminate 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 taking an enforcement action, = the=20 awarding agency shall provide the recipient an opportunity for = hearing,=20 appeal, or other administrative proceeding to which the = recipient is=20 entitled under any statute or regulation applicable to the = action=20 involved.

(c) Effects of suspension and termination. Costs of a = recipient=20 resulting from obligations incurred by the recipient during a = suspension=20 or after termination of an award are not allowable unless the = awarding=20 agency expressly authorizes them in the notice of suspension or=20 termination or subsequently. Other recipient costs during = suspension or=20 after termination which are necessary and not reasonably = avoidable are=20 allowable if (1) and (2) apply.

(1) The costs result from obligations which were properly = incurred=20 by the recipient before the effective date of suspension or = termination,=20 are not in anticipation of it, and in the case of a termination, = are=20 noncancellable. <

(2) The costs would be allowable if the award were not = suspended or=20 expired normally at the end of the funding period in which the=20 termination takes effect.

(d) Relationship to debarment and suspension. The enforcement = remedies identified in this section, including suspension and=20 termination, do not preclude a recipient from being subject to = debarment=20 and suspension under E.O.s 12549 and 12689 and the Federal = awarding=20 agency implementing regulations (see Section ___.13).

SUBPART D - After-the-Award Requirements =

___.70 Purp= ose.=20 Sections ___.71 through ___.73 contain closeout procedures and = other=20 procedures for subsequent disallowances and adjustments.

___.71 Clos= eout=20 procedures.

(a) Recipients shall submit, within 90 calendar days after = the date=20 of completion of the award, all financial, performance, and = other=20 reports as required by the terms and conditions of the award. = The=20 Federal awarding agency may approve extensions when requested by = the=20 recipient.

(b) Unless the Federal awarding agency authorizes an = extension, a=20 recipient shall liquidate all obligations incurred under the = award not=20 later than 90 calendar days after the funding period or the date = of=20 completion as specified in the terms and conditions of the award = or in=20 agency implementing instructions.

(c) The Federal awarding agency shall make prompt payments to = a=20 recipient for allowable reimbursable costs under the award being = closed=20 out.

(d) The recipient shall promptly refund any balances of = unobligated=20 cash that the Federal awarding agency has advanced or paid and = that is=20 not authorized to be retained by the recipient for use in other=20 projects. OMB Circular A-129 governs unreturned amounts that = become=20 delinquent debts.

(e) When authorized by the terms and conditions of the award, = the=20 Federal awarding agency shall make a settlement for any upward = or=20 downward adjustments to the Federal share of costs after = closeout=20 reports are received.

(f) The recipient shall account for any real and personal = property=20 acquired with Federal funds or received from the Federal = Government in=20 accordance with Sections ___.31 through ___.37.

(g) In the event a final audit has not been performed prior = to the=20 closeout of an award, the Federal awarding agency shall retain = the right=20 to recover an appropriate amount after fully considering the=20 recommendations on disallowed costs resulting from the final = audit.

___.72 Subs= equent=20 adjustments and continuing responsibilities.

(a) The closeout of an award does not affect any of the = following.=20

(1) The right of the Federal awarding agency to disallow = costs and=20 recover funds on the basis of a later audit or other review.=20

(2) The obligation of the recipient to return any funds due = as a=20 result of later refunds, corrections, or other transactions. =

(3) Audit requirements in Section ___.26.

(4) Property management requirements in Sections ___.31 = through=20 ___.37.

(5) Records retention as required in Section = ___.53.

(b) After closeout of an award, a relationship created under = an award=20 may be modified or ended in whole or in part with the consent of = the=20 Federal awarding agency and the recipient, provided the = responsibilities=20 of the recipient referred to in paragraph ___.73(a), including = those for=20 property management as applicable, are considered and provisions = made=20 for continuing responsibilities of the recipient, as = appropriate.=20

___.73 Coll= ection=20 of amounts due.

(a) Any funds paid to a recipient in excess of the amount to = which=20 the recipient is finally determined to be entitled under the = terms and=20 conditions of the award constitute a debt to the Federal = Government. If=20 not paid within a reasonable period after the demand for = payment, the=20 Federal awarding agency may reduce the debt by (1), (2) or (3).=20

(1) Making an administrative offset against other requests = for=20 reimbursements.=20

(2) Withholding advance payments otherwise due to the = recipient.=20

(3) Taking other action permitted by statute.

(b) Except as otherwise provided by law, the Federal awarding = agency=20 shall charge interest on an overdue debt in accordance with 4 = CFR=20 Chapter II, "Federal Claims Collection Standards."

Appendix A

Contract Provisions

All contracts, awarded by a recipient including small = purchases,=20 shall contain the following provisions as applicable:

1. Equal Employment Opportunity - All = contracts=20 shall contain a provision requiring compliance with E.O. 11246, = "Equal=20 Employment Opportunity," as amended by E.O. 11375, "Amending = Executive=20 Order 11246 Relating to Equal Employment Opportunity," and as=20 supplemented by regulations at 41 CFR part 60, "Office of = Federal=20 Contract Compliance Programs, Equal Employment Opportunity, = Department=20 of Labor."

2. Copeland "Anti-Kickback" Act (18 U.S.C. 874 and 40 = U.S.C.=20 276c) - All contracts and subgrants in excess of $2000 = for=20 construction or repair awarded by recipients and subrecipients = shall=20 include a provision for compliance with the Copeland = "Anti-Kickback" Act=20 (18 U.S.C. 874), as supplemented by Department of Labor = regulations (29=20 CFR part 3, "Contractors and Subcontractors on Public Building = or Public=20 Work Financed in Whole or in Part by Loans or Grants from the = United=20 States"). The Act provides that each contractor or subrecipient = shall be=20 prohibited from inducing, by any means, any person employed in = the=20 construction, completion, or repair of public work, to give up = any part=20 of the compensation to which he is otherwise entitled. The = recipient=20 shall report all suspected or reported violations to the Federal = awarding agency.

3. Davis-Bacon Act, as amended (40 U.S.C. 276a to=20 a-7) - When required by Federal program legislation, = all=20 construction contracts awarded by the recipients and = subrecipients of=20 more than $2000 shall include a provision for compliance with = the=20 Davis-Bacon Act (40 U.S.C. 276a to a-7) and as supplemented by=20 Department of Labor regulations (29 CFR part 5, "Labor Standards = Provisions Applicable to Contracts Governing Federally Financed = and=20 Assisted Construction"). Under this Act, contractors shall be = required=20 to pay wages to laborers and mechanics at a rate not less than = the=20 minimum wages specified in a wage determination made by the = Secretary of=20 Labor. In addition, contractors shall be required to pay wages = not less=20 than once a week. The recipient shall place a copy of the = current=20 prevailing wage determination issued by the Department of Labor = in each=20 solicitation and the award of a contract shall be conditioned = upon the=20 acceptance of the wage determination. The recipient shall report = all=20 suspected or reported violations to the Federal awarding = agency.

4. Contract Work Hours and Safety Standards Act (40 = U.S.C.=20 327-333) - Where applicable, all contracts awarded by=20 recipients in excess of $2000 for construction contracts and in = excess=20 of $2500 for other contracts that involve the employment of = mechanics or=20 laborers shall include a provision for compliance with Sections = 102 and=20 107 of the Contract Work Hours and Safety Standards Act (40 = U.S.C.=20 327-333), as supplemented by Department of Labor regulations (29 = CFR=20 part 5). Under Section 102 of the Act, each contractor shall be = required=20 to compute the wages of every mechanic and laborer on the basis = of a=20 standard work week of 40 hours. Work in excess of the standard = work week=20 is permissible provided that the worker is compensated at a rate = of not=20 less than 1 =BD times the basic rate of pay for all hours worked = in excess=20 of 40 hours in the work week. Section 107 of the Act is = applicable to=20 construction work and provides that no laborer or mechanic shall = be=20 required to work in surroundings or under working conditions = which are=20 unsanitary, hazardous or dangerous. These requirements do not = apply to=20 the purchases of supplies or materials or articles ordinarily = available=20 on the open market, or contracts for transportation or = transmission of=20 intelligence.

5. Rights to Inventions Made Under a Contract or=20 Agreement - Contracts or agreements for the performance = of=20 experimental, developmental, or research work shall provide for = the=20 rights of the Federal Government and the recipient in any = resulting=20 invention in accordance with 37 CFR part 401, "Rights to = Inventions Made=20 by Nonprofit Organizations and Small Business Firms Under = Government=20 Grants, Contracts and Cooperative Agreements," and any = implementing=20 regulations issued by the awarding agency.

6. Clean Air Act (42 U.S.C. 7401 et seq.) and the = Federal=20 Water Pollution Control Act (33 U.S.C. 1251 et seq.), as amended = - Contracts and subgrants of amounts in excess of = $100,000=20 shall contain a provision that requires the recipient to agree = to comply=20 with all applicable standards, orders or regulations issued = pursuant to=20 the Clean Air Act (42 U.S.C. 7401 et seq.) and the Federal Water = Pollution Control Act as amended (33 U.S.C. 1251 et seq.). = Violations=20 shall be reported to the Federal awarding agency and the = Regional Office=20 of the Environmental Protection Agency (EPA).

7. Byrd Anti-Lobbying Amendment (31 U.S.C. = 1352) -=20 Contractors who apply or bid for an award of $100,000 or more = shall file=20 the required certification. Each tier certifies to the tier = above that=20 it will not and has not used Federal appropriated funds to pay = any=20 person or organization for influencing or attempting to = influence an=20 officer or employee of any agency, a member of Congress, officer = or=20 employee of Congress, or an employee of a member of Congress in=20 connection with obtaining any Federal contract, grant or any = other award=20 covered by 31 U.S.C. 1352. Each tier shall also disclose any = lobbying=20 with non-Federal funds that takes place in connection with = obtaining any=20 Federal award. Such disclosures are forwarded from tier to tier = up to=20 the recipient.

8. Debarment and Suspension (E.O.s 12549 and = 12689)=20 - No contract shall be made to parties listed on the General = Services=20 Administration's List of Parties Excluded from Federal = Procurement or=20 Nonprocurement Programs in accordance with E.O.s 12549 and = 12689,=20 "Debarment and Suspension." This list contains the names of = parties=20 debarred, suspended, or otherwise excluded by agencies, and = contractors=20 declared ineligible under statutory or regulatory authority = other than=20 E.O. 12549. Contractors with awards that exceed the small = purchase=20 threshold shall provide the required certification regarding its = exclusion status and that of its principal employees.

Retur= n=20 to Top

CIRCULAR A-110REVISED 11/19/93As = Further=20 Amended 9/30/99

Grants and Agreements with Institutions of Higher=20 Education,Hospitals, and Other Non-Profit Organizations

APPENDIX A - CONTRACT PROVISIONS

Appendix A

Contract Provisions

CIRCULAR A-110
REVISED 11/19/93
As = Further=20 Amended 9/30/99

Grants and Agreements with Institutions of Higher=20 Education,
Hospitals, and Other Non-Profit Organizations