Billing Code:_________________
29 CFR Part 95
Uniform Administrative Requirements for Grants and Agreements with
Institutions of Higher Education, Hospitals and Other Non-Profit
Organizations, and With Commercial Organizations, Foreign
Governments, Organizations Under the Jurisdiction of Foreign
Governments, and International Organizations; Final Rule
AGENCY: Office of the Secretary, Labor.
ACTION: Final rule.
SUMMARY: The Department of Labor is issuing these regulations
pursuant to the requirements of the Office of Management and Budget
(OMB) Circular No. A-110 (Revised), which provides standards for
obtaining consistency and uniformity among Federal agencies in the
administration of grants and agreements with institutions of higher
education, hospitals, and other non-profit organizations. This
rule also applies to the Department of Labor's grants to commercial
organizations, foreign governments, organizations under the
jurisdiction of foreign governments and international
organizations.
OMB issued Circular A-110 in 1976 and, except for a minor revision
in February 1987, the Circular remained unchanged until revised in
1993. To update the Circular, OMB established an interagency task
force to review the Circular. The task force solicited suggestions
for changes to the Circular from university groups, non-profit
organizations and other interested parties and compared for
consistency the provisions of similar provisions applied to State
and local governments. The revised Circular and these regulations
reflect the results of these efforts.
DATE: The Department has determined that good cause exists for
waiving the customary requirement for delay in the effective date
of a final rule for 30 days following its publication. Therefore,
this rule is effective on date of publication.
ADDRESS: U.S. Department of Labor, Office of the Assistant
Secretary for Administration and Management, Directorate of
Administrative and Procurement Programs, Room S-1522, 200
Constitution Ave., NW, Washington, DC 20210.
FOR FURTHER INFORMATION CONTACT:
Melvin Goldberg, Office of Acquisition Integrity, Division of
Procurement and Grant Policy. Telephone 202-219-9174, Extension
109 (this is not a toll free number).
SUPPLEMENTARY INFORMATION:
A. Background
OMB published a notice in the Federal Register (57 FR 39018) on
August 27, 1992, requesting comments on proposed revisions to OMB
Circular A-110. Interested parties were invited to submit
comments. OMB received over 200 comments from Federal agencies,
non-profit organizations, professional organizations and others.
All comments were considered in developing this final revision.
On November 29, 1993, at 58 FR 62992, OMB published a notice
containing its final revision to Circular A-110. In that
publication, OMB presented a summary of the major comments, grouped
by subject, and a response to each comment. Other changes were
made to increase clarity and readability.
OMB Circular A-110 gives federal agencies the discretion to make
these regulations applicable to grants and agreements awarded to
commercial organizations, foreign governments, organizations under
the jurisdiction of foreign governments, and international
organizations. The Department of Labor has chosen to do so.
B. Publication in Final:
The Department of Labor has determined, pursuant to 5 U.S.C.
553(b)(B), that good cause exists for waiving public comment on
this procedural amendment to the regulation because such comment is
unnecessary, impracticable, and contrary to the public interest.
This finding is made because all executive agencies are required to
follow OMB directives with respect to grants or assistance of
property. See 41 U.S.C. § 405 (The Office of Federal Procurement
Policy Act).
C. Dates:
The Department has determined that good cause exists for waiving
the customary requirement for delay in the effective date of a
final rule for 30 days following its publication. Therefore, this
rule shall be effective immediately. See 5 U.S.C. § 553.
D. Procedural Matters:
This rule is not a "significant regulatory action" as defined by
section 3(f) of Executive Order 12866. Since this rule was not
preceded by a proposed rule, a regulatory flexibility analysis is
not required. See 5 U.S.C. § 601(2). Further, the Department of
Labor certifies that the rule will not have a significant economic
impact on a substantial number of small entities, because it does
not affect the amount of funds provided in the covered programs,
but, rather, modifies and updates administrative and procedural
requirements. The recordkeeping requirements in this rule have
been approved by the Office of Management and Budget, as required
by the Paperwork Reduction Act of 1980 (44 U.S.C. § 3501 et seq.).
List of Subjects in
29 CFR Part 95
Grants programs
Grants administration
Government contracts
Reporting and record-keeping
requirements
For the reasons set out in the preamble, subtitle A of title 29 of
the Code of Federal Regulations is amended, by adding a new part
95, as set forth below.
Signed at Washington, DC, this _________ day of ___________, 1994.
__________________________________
CECILIA BANKINS,
Acting Assistant Secretary
For Administration and Management
PART 95 - GRANTS AND AGREEMENTS WITH INSTITUTIONS OF HIGHER
EDUCATION, HOSPITALS, AND OTHER NON-PROFIT ORGANIZATIONS
SUBPART A - GENERAL
Sec.
95.1 Purpose.
95.2 Definitions.
95.3 Effect on other issuances.
95.4 Deviations.
95.5 Subawards.
SUBPART B - PRE-AWARD REQUIREMENTS
95.10 Purpose.
95.11 Pre-award policies.
95.12 Forms for applying for Federal assistance.
95.13 Debarment and suspension.
95.14 Special award conditions.
95.15 Metric system of measurement.
95.16 Resource Conservation and Recovery Act.
95.17 Certifications and representations.
SUBPART C - POST-AWARD REQUIREMENTS
Financial and Program Management
95.20 Purpose of financial and program management.
95.21 Standards for financial management systems.
95.22 Payment.
95.23 Cost sharing or matching.
95.24 Program income.
95.25 Revision of budget and program plans.
95.26 Non-Federal audits.
95.27 Allowable costs.
95.28 Period of availability of funds.
Property Standards
95.30 Purpose of property standards.
95.31 Insurance coverage.
95.32 Real property.
95.33 Federally-owned and exempt property.
95.34 Equipment.
95.35 Supplies and other expendable property.
95.36 Intangible property.
95.37 Property trust relationship.
Procurement Standards
95.40 Purpose of procurement standards.
95.41 Recipient responsibilities.
95.42 Codes of conduct.
95.43 Competition.
95.44 Procurement procedures.
95.45 Cost and price analysis.
95.46 Procurement records.
95.47 Contract administration.
95.48 Contract provisions.
Reports and Records
95.50 Purpose of reports and records.
95.51 Monitoring and reporting program performance.
95.52 Financial reporting.
95.53 Retention and access requirements for records.
Termination and Enforcement
95.60 Purpose of termination and enforcement.
95.61 Termination.
95.62 Enforcement.
SUBPART D - AFTER-THE-AWARD REQUIREMENTS
95.70 Purpose.
95.71 Closeout procedures.
95.72 Subsequent adjustments and continuing responsibilities.
95.73 Collection of amounts due.
APPENDIX A - CONTRACT PROVISIONS
AUTHORITY: 5 U.S.C. § 301; OMB Circular A-110; Secretary of Labor's
Order 4-76.
SUBPART A - General
§ 95.1 Purpose.
This part establishes uniform administrative requirements for
Federal grants and agreements awarded to institutions of higher
education, hospitals, other non-profit organizations, commercial
organizations, foreign governments, organizations under the
jurisdiction of foreign governments, and international
organizations. DOL shall not impose additional or inconsistent
requirements, except as provided in §§ 95.4 and 95.14 or unless
specifically required by Federal statute or executive order. Non-profit and commercial organizations that implement Federal programs
for the States are also subject to State requirements.
§ 95.2 Definitions.
(a) Accrued expenditures means the charges incurred by the
recipient during a given period requiring the provision of
funds for: (1) Goods and other tangible property received;
(2) services performed by employees, contractors,
subrecipients, and other payees; and, (3) other amounts
becoming owed under programs for which no current services or
performance is required.
(b) Accrued income means the sum of: (1) earnings during a given
period from (i) services performed by the recipient, and (ii)
goods and other tangible property delivered to purchasers, and
(2) amounts becoming owed to the recipient for which no
current services or performance is required by the recipient.
(c) Acquisition cost of equipment means the net invoice price of
the equipment, including the cost of modifications,
attachments, accessories, or auxiliary apparatus necessary to
make the property usable for the purpose for which it was
acquired. Other charges, such as the cost of installation,
transportation, taxes, duty or protective in-transit
insurance, shall be included or excluded from the unit
acquisition cost in accordance with the recipient's regular
accounting practices.
(d) Advance means a payment made by Treasury check or other
appropriate payment mechanism to a recipient upon its request
either before outlays are made by the recipient or through the
use of predetermined payment schedules.
(e) Award means financial assistance that provides support or
stimulation to accomplish a public purpose. Awards include
grants and other agreements in the form of money or property
in lieu of money, by DOL to an eligible recipient. The term
does not include: technical assistance, which provides
services instead of money; other assistance in the form of
loans, loan guarantees, interest subsidies, or insurance;
direct payments of any kind to individuals; and, contracts
which are required to be entered into and administered under
procurement laws and regulations.
(f) Cash contributions means the recipient's cash outlay,
including the outlay of money contributed to the recipient by
third parties.
(g) Closeout means the process by which DOL determines that all
applicable administrative actions and all required work of the
award have been completed by the recipient and DOL.
(h) Commercial organization means any business entity organized
primarily for profit (even if its ownership is in the hands of
a nonprofit entity) with a place of business located in or
outside the United States. The term includes, but is not
limited to, an individual, partnership, corporation, joint
venture, association, or cooperative.
(i) Contract means a procurement contract under an award or
subaward, and a procurement subcontract under a recipient's or
subrecipient's contract.
(j) Cost sharing or matching means that portion of project or
program costs not borne by DOL.
(k) Date of completion means the date on which all work under an
award is completed or the date on the award document, or any
supplement or amendment thereto, on which DOL sponsorship
ends.
(l) Disallowed costs means those charges to an award that DOL
determines to be unallowable, in accordance with the
applicable Federal cost principles or other terms and
conditions contained in the award.
(m) DOL means the U.S. Department of Labor, including its agencies and organizational units.
(n) Equipment means tangible nonexpendable personal property
including exempt property charged directly to the award having
a useful life of more than one year and an acquisition cost of
$5,000 or more per unit. However, consistent with recipient
policy, lower limits may be established. Real property
includes, but is not limited to, real property acquired before
the publication of these regulations and real property
transferred from prior years. Equipment includes, but is not
limited to, equipment acquired before the publication of these
regulations and equipment transferred from prior years.
(o) Excess property means property under the control of DOL that,
as determined by the Secretary of Labor, is no longer required
for its needs or the discharge of its responsibilities.
(p) Exempt property means tangible personal property acquired in
whole or in part with Federal funds, where DOL has statutory
authority to vest title in the recipient without further
obligation to the Federal Government.
(q) Federal agency means any United States executive department,
military department, government corporation, government
controlled corporation, any other establishment in the
executive branch (including the Executive Office of the
President), or any independent regulatory agency.
(r) Federal awarding agency means the Federal agency that provides
an award to the recipient.
(s) Federal funds authorized means the total amount of Federal
funds obligated by DOL for use by the recipient. This amount
may include any authorized carryover of unobligated funds from
prior funding periods when permitted by DOL's regulations or
DOL's implementing instructions.
(t) Federal share of real property, equipment, or supplies means
that percentage of the property's acquisition costs and any
improvement expenditures paid with Federal funds.
(u) Funding period means the period of time when Federal funding
is available for obligation by the recipient.
(v) Grant officer means any person authorized to enter into,
modify or terminate any financial assistance awards and make
related determinations and findings. DOL grant officers shall
be designated by name on a "Certificate of Appointment."
(w) Intangible property and debt instruments means, but is not
limited to, trademarks, copyrights, patents and patent
applications and such property as loans, notes and other debt
instruments, lease agreements, stock and other instruments of
property ownership, whether considered tangible or intangible.
(x) Obligations means the amounts of orders placed, contracts and
grants awarded, services received and similar transactions
during a given period that require payment by the recipient
during the same or a future period.
(y) Outlays or expenditures means charges made to the project or
program. They may be reported on a cash or accrual basis.
For reports prepared on a cash basis, outlays are the sum of
cash disbursements for direct charges for goods and services,
the amount of indirect expense charged, the value of third
party in-kind contributions applied and the amount of cash
advances and payments made to subrecipients. For reports
prepared on an accrual basis, outlays are the sum of cash
disbursements for direct charges for goods and services, the
amount of indirect expense incurred, the value of in-kind
contributions applied, and the net increase (or decrease) in
the amounts owed by the recipient for goods and other property
received, for services performed by employees, contractors,
subrecipients and other payees and other amounts becoming owed
under programs for which no current services or performance
are required.
(z) Personal property means property of any kind except real
property. It may be tangible, having physical existence, or
intangible, having no physical existence, such as copyrights,
patents, or securities.
(aa) Prior approval means written approval by an authorized
official evidencing prior consent.
(bb) Program income means gross income earned by the recipient that
is directly generated by a supported activity or earned as a
result of the award (see exclusions in § 95.24(e) and (h)).
Program income includes, but is not limited to, income from
fees for services performed, the use or rental of real or
personal property acquired under federally-funded projects,
the sale of commodities or items fabricated under an award,
license fees and royalties on patents and copyrights, and
interest on loans made with award funds. Interest earned on
advances of Federal funds is not program income. Except as
otherwise provided in Federal awarding agency regulations or
the terms and conditions of the award, program income does not
include the receipt of principal on loans, rebates, credits,
discounts, etc., or interest earned on any of them.
(cc) Project costs means all allowable costs, as set forth in the
applicable Federal cost principles, incurred by a recipient
and the value of the contributions made by third parties in
accomplishing the objectives of the award during the project
period.
(dd) Project period means the period established in the award
document during which Federal sponsorship begins and ends.
(ee) Property means, unless otherwise stated, real property,
equipment, intangible property and debt instruments.
(ff) Real property means land, including land improvements,
structures and appurtenances thereto, but excludes movable
machinery and equipment. Real property includes, but is not
limited to, real property acquired before the publication of
these regulations and real property transferred from prior
years.
(gg) Recipient means an organization receiving financial assistance
directly from DOL to carry out a project or program. The term
includes public and private institutions of higher education,
public and private hospitals, and other quasi-public and
private non-profit organizations such as, but not limited to,
community action agencies, research institutes, educational
associations, and health centers. The term also includes
commercial organizations, foreign or international
organizations (such as agencies of the United Nations) which
are recipients, subrecipients, or contractors or
subcontractors of recipients or subrecipients. The term does
not include government-owned contractor-operated facilities or
research centers providing continued support for mission-oriented, large-scale programs that are government-owned or
controlled, or are designated as federally-funded research and
development centers.
(hh) Research and development means all research activities, both
basic and applied, and all development activities that are
supported at universities, colleges, and other non-profit
institutions. "Research" is defined as a systematic study
directed toward fuller scientific knowledge or understanding
of the subject studied. "Development" is the systematic use
of knowledge and understanding gained from research directed
toward the production of useful materials, devices, systems,
or methods, including design and development of prototypes and
processes. The term research also includes activities
involving the training of individuals in research techniques
where such activities utilize the same facilities as other
research and development activities and where such activities
are not included in the instruction function.
(ii) Small awards means a grant or cooperative agreement not
exceeding the small purchase threshold fixed at 41 U.S.C. §
403(11) (currently $25,000).
(jj) Subaward means an award of financial assistance in the form of
money, or property in lieu of money, made under an award by a
recipient to an eligible subrecipient or by a subrecipient to
a lower tier subrecipient. The term includes financial
assistance when provided by any legal agreement, even if the
agreement is called a contract, but does not include
procurement of goods and services nor does it include any form
of assistance which is excluded from the definition of "award"
in paragraph (e) of this section.
(kk) Subrecipient means the legal entity to which a subaward is
made and which is accountable to the recipient for the use of
the funds provided. The term includes foreign organizations
and international organizations (such as agencies of the
United Nations).
(ll) Supplies means all personal property excluding equipment,
intangible property, and debt instruments as defined in this
section, and inventions of a contractor conceived or first
actually reduced to practice in the performance of work under
a funding agreement ("subject inventions"), as defined in 37
CFR part 401, "Rights to Inventions Made by Nonprofit
Organizations and Small Business Firms Under Government
Grants, Contracts, and Cooperative Agreements."
(mm) Suspension means an action by DOL that temporarily withdraws
Federal sponsorship under an award, pending corrective action
by the recipient or pending a decision to terminate the award
by the Federal awarding agency. Suspension of an award is a
separate action from suspension under DOL's regulations at 29
CFR part 98, implementing E.O.'s 12549 and 12689, "Debarment
and Suspension." See 29 CFR part 98, subpart D.
(nn) Termination means the cancellation of Federal sponsorship, in
whole or in part, under an agreement at any time prior to the
date of completion.
(oo) Third party in-kind contributions means the value of non-cash
contributions provided by non-Federal third parties. Third
party in-kind contributions may be in the form of real
property, equipment, supplies and other expendable property,
and the value of goods and services directly benefiting and
specifically identifiable to the project or program.
(pp) Unliquidated obligations, for financial reports prepared on a
cash basis, means the amount of obligations incurred by the
recipient that have not been paid. For reports prepared on an
accrued expenditure basis, they represent the amount of
obligations incurred by the recipient for which an outlay has
not been recorded.
(qq) Unobligated balance means the portion of the funds authorized
by DOL that has not been obligated by the recipient and is
determined by deducting the cumulative obligations from the
cumulative funds authorized.
(rr) Unrecovered indirect cost means the difference between the
amount awarded and the amount which could have been awarded
under the recipient's approved negotiated indirect cost rate.
(ss) Working capital advance means a procedure whereby funds are
advanced to the recipient to cover its estimated disbursement
needs for a given initial period.
§ 95.3 Effect on other issuances.
For awards subject to this part, all administrative requirements of
codified program regulations, program manuals, handbooks and other
nonregulatory materials which are inconsistent with the
requirements of this part shall be superseded, except to the extent
they are required by statute, or authorized in accordance with the
deviations provision in § 95.4.
§ 95.4 Deviations.
The Office of Management and Budget (OMB) may grant exceptions for
classes of grants or recipients subject to the requirements of this
part when exceptions are not prohibited by statute. However, in
the interest of maximum grant-wide uniformity, exceptions from the
requirements of this part shall be permitted only in unusual
circumstances. DOL may apply more restrictive requirements to a
class of recipients when approved by OMB. DOL may apply less
restrictive requirements when awarding small awards, except for
those requirements which are statutory. Exceptions on a case-by-case basis may also be made by DOL.
§ 95.5 Subawards.
Unless sections of this part specifically exclude subrecipients
from coverage, the provisions of this part shall be applied to
subrecipients performing work under awards if such subrecipients
are institutions of higher education, hospitals, other non-profit
organizations, commercial organizations, foreign governments,
organizations under the jurisdiction of foreign governments, and
international organizations. State and local government
subrecipients are subject to the provisions of regulations
implementing the grants management common rule, "Uniform
Administrative Requirements for Grants and Cooperative Agreements
to State and Local Governments," and codified by DOL at 29 CFR part
97 or its successor.
Subpart B - Pre-Award Requirements
§ 95.10 Purpose.
Sections 95.11 through 95.17 prescribe forms and instructions and
other pre-award matters to be used in applying for Federal awards.
§ 95.11 Pre-award policies.
Public Notice and Priority Setting. Federal awarding agencies shall
notify the public of its intended funding priorities for
discretionary grant programs, unless funding priorities are
established by Federal statute.
§ 95.12 Forms for applying for Federal assistance.
(a) Applicants shall use the SF-424 series or those forms and
instructions prescribed by DOL.
(b) The applicant shall complete the appropriate sections of the
SF-424 (Application for Federal Assistance) indicating whether
the application was subject to review by the State Single
Point of Contact (SPOC). The name and address of the SPOC for
a particular State can be obtained from DOL or the Catalog of
Federal Domestic Assistance. The SPOC shall advise the
applicant whether the program for which application is made
has been selected by that State for review.
§ 95.13 Debarment and suspension.
Recipients shall comply with the nonprocurement debarment and
suspension common rule implementing E.O.'s 12549 and 12689,
"Debarment and Suspension" codified by DOL at 29 CFR part 98 or its
successor. This common rule restricts subawards and contracts with
certain parties that are debarred, suspended or otherwise excluded
from or ineligible for participation in Federal assistance programs
or activities.
§ 95.14 Special award conditions.
If an applicant or recipient: (a) has a history of poor
performance, (b) is not financially stable, (c) has a management
system that does not meet the standards prescribed in this part,
(d) has not conformed to the terms and conditions of a previous
award, or (e) is not otherwise responsible, DOL may impose
additional requirements as needed, provided that such applicant or
recipient is notified in writing as to: the nature of the
additional requirements, the reason why the additional requirements
are being imposed, the nature of the corrective action needed, the
time allowed for completing the corrective actions, and the method
for requesting reconsideration of the additional requirements
imposed. Any special conditions shall be promptly removed once the
conditions that prompted them have been corrected.
§ 95.15 Metric system of measurement.
The Metric Conversion Act, as amended by the Omnibus Trade and
Competitiveness Act (15 U.S.C. 205), declares that the metric
system is the preferred measurement system for U.S. trade and
commerce. The Act requires each Federal agency to establish a date
or dates in consultation with the Secretary of Commerce, when the
metric system of measurement will be used in the agency's
procurements, grants, and other business-related activities.
Metric implementation may take longer where the use of the system
is initially impractical or likely to cause significant
inefficiencies in the accomplishment of federally-funded
activities. DOL shall follow the provisions of E.O. 12770, "Metric
Usage in Federal Government Programs."
§ 95.16 Resource Conservation and Recovery Act (RCRA) (Pub. L. 94-580 codified at 42 U.S.C. 6962).
Under RCRA, any State agency or agency of a political subdivision
of a State which is using appropriated Federal funds must comply
with Section 6002. Section 6002 requires that preference be given
in procurement programs to the purchase of specific products
containing recycled materials identified in guidelines developed by
the Environmental Protection Agency (EPA) (40 CFR parts 247-254).
Accordingly, State and local institutions of higher education,
hospitals, and non-profit organizations that receive direct Federal
awards or other Federal funds shall give preference in their
procurement programs funded with Federal funds to the purchase of
recycled products pursuant to the EPA guidelines.
§ 95.17 Certifications and representations.
Unless prohibited by statute or codified regulation, DOL requires
recipients to submit certifications and representations required by
statute, executive order, or regulation on an annual basis only, if
the recipients have ongoing and continuing relationships with the
agency. Annual certifications and representations shall be signed
by responsible officials with the authority to ensure recipients'
compliance with the pertinent requirements.
Subpart C - Post-Award Requirements
Financial and Program Management
§ 95.20 Purpose of financial and program management.
Sections 95.21 through 95.28 prescribe standards for financial
management systems, methods for making payments and rules for:
satisfying cost sharing and matching requirements, accounting for
program income, budget revision approvals, making audits,
determining allowability of cost, and establishing fund
availability.
§ 95.21 Standards for financial management systems.
(a) Recipients shall relate financial data to performance data and
develop unit cost information whenever practical.
(b) Recipients' financial management systems shall provide for the
following:
(1) Accurate, current and complete disclosure of the
financial results of each federally-sponsored project or
program in accordance with the reporting requirements set
forth in § 95.52. Though DOL requires reporting on an
accrual basis from a recipient that maintains its records
on other than an accrual basis, the recipient shall not
be required to establish an accrual accounting system.
These recipients may develop such accrual data for its
reports on the basis of an analysis of the documentation
on hand.
(2) Records that identify adequately the source and
application of funds for federally-sponsored activities.
These records shall contain information pertaining to
Federal awards, authorizations, obligations, unobligated
balances, assets, outlays, income and interest.
(3) Effective control over and accountability for all funds,
property and other assets. Recipients shall adequately
safeguard all such assets 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 transfer of funds to the recipient from the U.S.
Treasury and the issuance or redemption of checks,
warrants or payments by other means for program purposes
by the recipient. To the extent that the provisions of
the Cash Management Improvement Act (CMIA) (Pub. L. 101-453) govern, payment methods of State agencies,
instrumentalities, and fiscal agents shall be consistent
with CMIA Treasury-State Agreements or the CMIA default
procedures codified at 31 CFR part 205, "Withdrawal of
Cash from the Treasury for Advances under Federal Grant
and Other Programs."
(6) Written procedures for determining the reasonableness,
allocability and allowability of costs in accordance with
the provisions of the applicable Federal cost principles
and the terms and conditions of the award.
(7) Accounting records including cost accounting records that
are supported by source documentation.
(c) Where the Federal Government guarantees or insures the
repayment of money borrowed by the recipient, DOL, at its
discretion, may require adequate bonding and insurance if the
bonding and insurance requirements of the recipient are not
deemed adequate to protect the interest of the Federal
Government.
(d) DOL may require adequate fidelity bond coverage where the
recipient lacks sufficient coverage to protect the Federal
Government's interest.
(e) Where bonds are required in the situations described above,
the bonds shall be obtained from companies holding
certificates of authority as acceptable sureties, as
prescribed in 31 CFR part 223, "Surety Companies Doing
Business with the United States."
§ 95.22 Payment.
(a) Payment methods shall minimize the time elapsing between the
transfer of funds from the United States Treasury and the
issuance or redemption of checks, warrants, or payment by
other means by the recipients. Payment methods of State
agencies or instrumentalities shall be consistent with
Treasury-State CMIA agreements or default procedures codified
at 31 CFR part 205.
(b) Recipients are to be paid in advance, provided they maintain
or demonstrate the willingness to maintain: (1) written
procedures that minimize the time elapsing between the
transfer of funds and disbursement by the recipient, and (2)
financial management systems that meet the standards for fund
control and accountability as established in § 95.21. Cash
advances to a recipient organization shall be limited to the
minimum amounts needed and be timed to be in accordance with
the actual, immediate cash requirements of the recipient
organization in carrying out the purpose of the approved
program or project. The timing and amount of cash advances
shall be as close as is administratively feasible to the
actual disbursements by the recipient organization for direct
program or project costs and the proportionate share of any
allowable indirect costs.
(c) Whenever possible, advances shall be consolidated to cover
anticipated cash needs for all awards made by DOL to the
recipient.
(1) Advance payment mechanisms include, but are not limited
to, Treasury check and electronic funds transfer.
(2) Advance payment mechanisms are subject to 31 CFR part 205.
(3) Recipients are authorized to submit requests for advances
monthly when electronic fund transfers are not used.
(d) Requests for Treasury check advance payment shall be submitted
on SF-270, "Request for Advance or Reimbursement," or other
forms as may be authorized by OMB. This form is not to be
used when Treasury check advance payments are made to the
recipient automatically through the use of a predetermined
payment schedule or if precluded by special DOL instructions
for electronic funds transfer.
(e) Reimbursement is the preferred method when the requirements in
paragraph (b) of this section cannot be met. DOL may also use
this method on any construction agreement, or if the major
portion of the construction project is accomplished through
private market financing or Federal loans, and the Federal
assistance constitutes a minor portion of the project.
(1) When the reimbursement method is used, DOL shall make
payment within 30 days after receipt of the billing, unless
the billing is improper.
(2) Recipients are authorized to submit request for
reimbursement monthly when electronic funds transfers are not
used.
(f) If a recipient cannot meet the criteria for advance payments
and DOL has determined that reimbursement is not feasible
because the recipient lacks sufficient working capital, DOL
may provide cash on a working capital advance basis. Under
this procedure, DOL shall advance cash to the recipient to
cover its estimated disbursement needs for an initial period
generally geared to the awardee's disbursing cycle.
Thereafter, DOL shall reimburse the recipient for its actual
cash disbursements. The working capital advance method of
payment shall not be used for recipients unwilling or unable
to provide timely advances to their subrecipient to meet the
subrecipient's actual cash disbursements.
(g) To the extent available, recipients shall disburse funds
available from repayments to and interest earned on a
revolving fund, program income, rebates, refunds, contract
settlements, audit recoveries and interest earned on such
funds before requesting additional cash payments.
(h) Unless otherwise required by statute, DOL shall not withhold
payments for proper charges made by recipients at any time
during the project period unless paragraphs (h)(1) or (h)(2)
of this section applies.
(1) A recipient has failed to comply with the project
objectives, the terms and conditions of the award, or Federal
reporting requirements.
(2) The recipient or subrecipient is delinquent in a debt to
the United States as defined in OMB Circular A-129, "Managing
Federal Credit Programs." Under such conditions, DOL may,
upon reasonable notice, inform the recipient that payments
shall not be made for obligations incurred after a specified
date until the conditions are corrected or the indebtedness to
the Federal Government is liquidated.
(i) Standards governing the use of banks and other institutions as
depositories of funds advanced under awards are as follows:
(1) Except for situations described in paragraph (i)(2) of
this section, DOL shall not require separate depository
accounts for funds provided to a recipient or establish
any eligibility requirements for depositories for funds
provided to a recipient. However, recipients must be
able to account for the receipt, obligation and
expenditure of funds.
(2) Advances of Federal funds shall be deposited and
maintained in insured accounts whenever possible.
(j) Consistent with the national goal of expanding the
opportunities for women-owned and minority-owned business
enterprises, recipients shall be encouraged to use women-
owned and minority-owned banks (a bank which is owned at least
50 percent by women or minority group members).
(k) Recipients shall maintain advances of Federal funds in
interest bearing accounts, unless paragraphs (k)(1), (k)(2),
or (k)(3) of this section apply.
(1) The recipient receives less than $120,000 in Federal
awards per year.
(2) The best reasonably available interest bearing account
would not be expected to earn interest in excess of $250 per
year on Federal cash balances.
(3) The depository would require an average or minimum balance
so high that it would not be feasible within the expected
Federal and non-Federal cash resources.
In keeping with Electronic Funds Transfer rules, (31 CFR Part 206),
interest should be remitted to the HHS Payment Management System
through an electronic medium such as the FEDWIRE Deposit system.
Recipients who do not have this capability should use a check.
(l) For those entities where CMIA and its implementing regulations
do not apply, interest earned on Federal advances deposited in
interest bearing accounts shall be remitted annually to
Department of Health and Human Services, Payment Management
System, P.O. Box 6021, Rockville, MD 20852. Interest amounts
up to $250 per year may be retained by the recipient for
administrative expense. State universities and hospitals
shall comply with CMIA, as it pertains to interest. If an
entity subject to CMIA uses its own funds to pay pre-award
costs for discretionary awards without prior written approval
from DOL, it waives its right to recover the interest under
CMIA.
(m) Except as noted elsewhere in this part, only the following
forms shall be authorized for the recipients in requesting
advances and reimbursements. DOL shall not require more than
an original and two copies of these forms.
(1) SF-270, Request for Advance or Reimbursement. The SF-270
is the standard form for all nonconstruction programs
when electronic funds transfer or predetermined advance
methods are not used. DOL, however, has the option of
using this form for construction programs in lieu of the
SF-271, "Outlay Report and Request for Reimbursement for
Construction Programs."
(2) SF-271, Outlay Report and Request for Reimbursement for
Construction Programs. The SF-271 is the standard form
to be used for requesting reimbursement for construction
programs. However, DOL may substitute the SF-270 when
DOL determines that it provides adequate information to
meet Federal needs.
§ 95.23 Cost sharing or matching.
(a) All contributions, including cash and third party in-kind,
shall be accepted as part of the recipient's cost sharing or
matching when such contributions meet all of the following
criteria:
(1) Are verifiable from the recipient's records.
(2) Are not included as contributions for any other
Federally-assisted project or program.
(3) Are necessary and reasonable for proper and efficient
accomplishment of project or program objectives.
(4) Are allowable under the applicable cost principles.
(5) Are not paid by the Federal Government under another
award, except where authorized by Federal statute to be
used for cost sharing or matching.
(6) Are provided for in the approved budget when required by
DOL.
(7) Conform to other provisions of this part, as applicable.
(b) Unrecovered indirect costs may be included as part of cost
sharing or matching only with prior written approval of the
grant officer.
(c) Values for recipient contributions of services and property
shall be established in accordance with the applicable cost
principles. If DOL authorizes recipients to donate buildings
or land for construction/facilities acquisition projects or
long-term use, the value of the donated property for cost
sharing or matching shall be the lesser of the value
determined under paragraph (c)(1) or paragraph (c)(2) of this
section.
(1) The certified value of the remaining life of the property
recorded in the recipient's accounting records at the
time of donation.
(2) The current fair market value. However, when there is
sufficient justification, the grant officer may approve
the use of the current fair market value of the donated
property, even if it exceeds the certified value at the
time of donation to the project.
(d) Volunteer services furnished by professional and technical
personnel, consultants, and other skilled and unskilled labor
may be counted as cost sharing or matching if the service is
an integral and necessary part of an approved project or
program. Rates for volunteer services shall be consistent
with those paid for similar work in the recipient's
organization. In those instances in which the required skills
are not found in the recipient organization, rates shall be
consistent with those paid for similar work in the labor
market in which the recipient competes for the kind of
services involved. In either case, paid fringe benefits that
are reasonable, allowable, and allocable may be included in
the valuation.
(e) When an employer other than the recipient furnishes the
services of an employee, these services shall be valued at the
employee's regular rate of pay (plus an amount of fringe
benefits that are reasonable, allowable, and allocable, but
exclusive of overhead costs), provided these services are in
the same skill for which the employee is normally paid.
(f) Donated supplies may include such items as expendable
equipment, office supplies, laboratory supplies or workshop
and classroom supplies. Value assessed to donated supplies
included in the cost sharing or matching share shall be
reasonable and shall not exceed the fair market value of the
property at the time of the donation.
(g) The method used for determining cost sharing or matching for
donated equipment, buildings and land for which title passes
to the recipient may differ according to the purpose of the
award, if paragraphs (g)(1) or (g)(2) of this section apply.
(1) If the purpose of the award is to assist the recipient in
the acquisition of equipment, buildings or land, the
total value of the donated property may be claimed as
cost sharing or matching.
(2) If the purpose of the award is to support activities that
require the use of equipment, buildings or land, normally
only depreciation or use charges for equipment and
buildings may be made. However, the full value of
equipment or other capital assets and fair rental charges
for land may be allowed, provided that the grant officer
has approved the charges.
(h) The value of donated property shall be determined in
accordance with the usual accounting policies of the
recipient, with the following qualifications:
(1) The value of donated land and buildings shall not exceed
its fair market value at the time of donation to the
recipient as established by an independent appraiser
(e.g., certified real property appraiser or General
Services Administration representative) and certified by
a responsible official of the recipient.
(2) The value of donated equipment shall not exceed the fair
market value of equipment of the same age and condition
at the time of donation.
(3) The value of donated space shall not exceed the fair
rental value of comparable space as established by an
independent appraisal of comparable space and facilities
in a privately-owned building in the same locality.
(4) The value of loaned equipment shall not exceed its fair
rental value.
(5) The following requirements pertain to the recipient's
supporting records for in-kind contributions from third
parties:
(i) Volunteer services shall be documented and, to the
extent feasible, supported by the same methods used
by the recipient for its own employees.
(ii) The basis for determining the valuation for
personal service, material, equipment, buildings
and land shall be documented.
§ 95.24 Program income.
(a) Except as provided in paragraph (e) of this section, program
income earned during the project period shall be retained by
the recipient and added to funds committed to the project by
DOL and recipient, and used to further eligible project or
program objectives.
(b) Recipients shall have no obligation to the Federal Government
regarding program income earned after the end of the project
period.
(c) Costs incident to the generation of program income may be
deducted from gross income to determine program income,
provided these costs have not been charged to the award.
(d) Proceeds from the sale of property are not program income and
shall be handled in accordance with the requirements of the
Property Standards (See §§ 95.30 through 95.37).
(e) Unless DOL's regulations or the terms and condition of the
award provide otherwise, recipients shall have no obligation
to the Federal Government with respect to program income
earned from license fees and royalties for copyrighted
material, patents, patent applications, trademarks, and
inventions produced under an award. However, Patent and
Trademark Amendments (35 U.S.C. 18) apply to inventions made
under an experimental, developmental, or research award.
§ 95.25 Revision of budget and program plans.
(a) The budget plan is the financial expression of the project or
program as approved during the award process. It may include
either the Federal and non-Federal share, or only the Federal
share, depending upon DOL's requirements. It shall be related
to performance for program evaluation purposes whenever
appropriate.
(b) Recipients are required to report deviations from budget and
program plans, and request prior approvals for budget and
program plan revisions, in accordance with this section.
(c) For nonconstruction awards, recipients shall request prior
written approval from the grant officer for one or more of the
following program or budget changes:
(1) Change in the scope or the objective of the project or
program (even if there is no associated budget revision
requiring prior written approval).
(2) Change in a key person specified in the application or
award document.
(3) The absence for more than three months, or a 25-percent
reduction in time devoted to the project, by the approved
project director or principal investigator.
(4) The need for additional Federal funding.
(5) The transfer of amounts budgeted for indirect costs to
absorb increases in direct costs, or vice versa.
(6) The inclusion, unless waived by the grant officer, of
costs that require prior approval in accordance with OMB
Circular A-21, "Cost Principles for Institutions of
Higher Education," OMB Circular A-122, "Cost Principles
for Non-Profit Organizations," or 45 CFR part 74,
Appendix E, "Principles for Determining Costs Applicable
to Research and Development under Grants and Contracts
with Hospitals," or 48 CFR part 31, "Contract Cost
Principles and Procedures," as applicable.
(7) The transfer of funds allotted for training allowances
(direct payment to trainees) to other categories of
expense.
(8) Unless described in the application and funded in the
approved awards, the subaward, transfer or contracting
out of any work under an award. This provision does not
apply to the purchase of supplies, material, equipment or
general support services.
(d) No other prior approval requirements for specific items may be
imposed unless a deviation has been approved by OMB.
(e) Except for requirements listed in §s (c)(1) and (c)(4) of this
section, the grant officer may waive cost-related and
administrative prior written approvals required by this part
and OMB Circulars A-21 and A-122. Such waivers may include
authorizing recipients to do any one or more of the following:
(1) Incur pre-award costs 90 calendar days prior to award or
more than 90 calendar days with the prior written
approval of the grant officer. All pre-award costs are
incurred at the recipient's risk (i.e., the grant officer
is under no obligation to reimburse such costs if for any
reason the recipient does not receive an award or if the
award is less than anticipated and inadequate to cover
such costs).
(2) Initiate a one-time extension of the expiration date of
the award of up to 12 months unless one or more of the
following conditions apply. For one-time extensions, the
recipient must notify the grant officer in writing with
the supporting reasons and revised expiration date at
least 10 days before the expiration date specified in the
award. This one-time extension may not be exercised
merely for the purpose of using unobligated balances.
The one-time extension may not be initiated if:
(i) The terms and conditions of award prohibit the
extension.
(ii) The extension requires additional Federal
funds.
(iii) The extension involves any change in the
approved objectives or scope of the project.
(3) Carry forward unobligated balances to subsequent funding
periods.
(4) For awards that support research, unless the grant
officer provides otherwise in the award or in DOL's
regulations, the prior written approval requirements
described in paragraph (e) are automatically waived
(i.e., recipients need not obtain such prior written
approvals) unless one of the conditions included in
paragraph (e)(2) applies.
(f) DOL may, at its option, restrict the transfer of funds among
direct cost categories or programs, functions and activities
for awards in which the Federal share of the project exceeds
$100,000 and the cumulative amount of such transfers exceeds
or is expected to exceed 10 percent of the total budget as
last approved by DOL. DOL shall not permit a transfer that
would cause any Federal appropriation or part thereof to be
used for purposes other than those consistent with the
original intent of the appropriation.
(g) All other changes to nonconstruction budgets, except for the
changes described in paragraph (j), do not require prior
approval.
(h) For construction awards, recipients shall request prior
written approval promptly from the grant officer for budget
revisions whenever paragraphs (h)(1), (h)(2) or (h)(3) of this
section apply.
(1) The revision results from changes in the scope or the
objective of the project or program.
(2) The need arises for additional Federal funds to complete
the project.
(3) A revision is desired which involves specific costs for
which prior written approval requirements may be imposed
consistent with applicable OMB cost principles listed in
§ 95.27.
(i) No other prior approval requirements for specific items may be
imposed unless a deviation has been approved by OMB.
(j) When DOL makes an award that provides support for both
construction and nonconstruction work, DOL may require the
recipient to request prior written approval before making any
fund or budget transfers between the two types of work
supported.
(k) For both construction and nonconstruction awards, recipients
shall notify the grant officer in writing promptly whenever
the amount of Federal authorized funds is expected to exceed
the needs of the recipient for the project period by more than
$5,000 or five percent of the Federal award, whichever is
greater. This notification shall not be required if an
application for additional funding is submitted for a
continuation award.
(l) When requesting written approval for budget revisions,
recipients shall use the budget forms that were used in the
application.
(m) Within 30 calendar days from the date of receipt of the
request for budget revisions, the grant officer shall review
the request and notify the recipient whether the budget
revisions have been approved. If the revision is still under
consideration at the end of 30 calendar days, the grant
officer shall inform the recipient in writing of the date when
the recipient may expect the decision.
§ 95.26 Non-Federal audits.
(a) Recipients and subrecipients that are institutions of higher
education or other non-profit organizations shall be subject
to the audit requirements contained in OMB Circular A-133,
"Audits of Institutions of Higher Education and Other Non-Profit Institutions" and applicable provisions of DOL
regulations at 29 CFR part 96.
(b) Recipients and subrecipients that are State and local
governments shall be subject to the audit requirements
contained in the Single Audit Act (31 U.S.C. 7501-7) and
DOL's regulations implementing OMB Circular A-128, "Audits of
State and Local Governments" and applicable provisions of DOL
regulations at 29 CFR part 96.
(c) Hospitals not covered by the audit provisions of OMB Circular
A-133 shall be subject to the audit requirements of DOL. See
29 CFR part 96.
(d) Commercial organizations shall be subject to the audit
requirements specified by the DOL awarding agency or the prime
recipient as incorporated into the award document. See 29 CFR
part 96.
§ 95.27 Allowable costs.
For each kind of recipient, there is a set of Federal principles
for determining allowable costs. Allowability of costs shall be
determined in accordance with the cost principles applicable to the
entity incurring the costs. Thus, allowability of costs incurred by
State, local or federally-recognized Indian tribal governments is
determined in accordance with the provisions of OMB Circular A-87,
"Cost Principles for State and Local Governments." The
allowability of costs incurred by non-profit organizations is
determined in accordance with the provisions of OMB Circular A-122,
"Cost Principles for Non-Profit Organizations." The allowability
of costs incurred by institutions of higher education is determined
in accordance with the provisions of OMB Circular A-21, "Cost
Principles for Educational Institutions." The allowability of
costs incurred by hospitals is determined in accordance with the
provisions of Appendix E of 45 CFR part 74, "Principles for
Determining Costs Applicable to Research and Development Under
Grants and Contracts with Hospitals." The allowability of costs
incurred by commercial organizations and those non-profit
organizations listed in Attachment C to Circular A-122 is
determined in accordance with the provisions of the Federal
Acquisition Regulation (FAR) at 48 CFR part 31.
§ 95.28 Period of availability of funds.
Where a funding period is specified, a recipient may charge to the
grant only allowable costs resulting from obligations incurred
during the funding period and any pre-award costs authorized by
DOL.
Property Standards
§ 95.30 Purpose of property standards.
Sections 95.31 through 95.37 set forth uniform standards
governing management and disposition of property furnished by the
Federal Government whose cost was charged to a project supported by
a Federal award. Recipients are required to observe these
standards under awards and no additional requirements shall be
imposed, unless specifically required by Federal statute. The
recipient may use its own property management standards and
procedures provided it observes the provisions of §§ 95.31 through
95.37.
§ 95.31 Insurance coverage.
Recipients shall, at a minimum, provide the equivalent insurance
coverage for real property and equipment acquired with Federal
funds as provided to property owned by the recipient. Federally-owned property need not be insured unless required by the terms and
conditions of the award.
§ 95.32 Real property.
DOL shall prescribe requirements for recipients concerning the use
and disposition of real property acquired in whole or in part under
awards. Unless otherwise provided by statute, such requirements,
at a minimum, shall contain the following:
(a) Title to real property shall vest in the recipient subject to
the 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 encumber the property without approval of
DOL.
(b) The recipient shall obtain prior written approval from the
grant officer for the use of real property in other federally-sponsored projects when the recipient determines that the
property is no longer needed for the purpose of the original
project. Use in other projects shall be limited to those
under federally-sponsored projects (i.e., awards) or programs
that have purposes consistent with those authorized for
support by DOL.
(c) When the real property is no longer needed as provided in
paragraphs (a) and (b), the recipient shall request
disposition instructions from the grant officer. The grant
officer shall observe one or more of the following disposition
instructions:
(1) The recipient may be permitted to retain title without
further obligation to the Federal Government after it
compensates the Federal Government for that percentage of
the current fair market value of the property
attributable to the Federal participation in the project.
(2) The recipient may be directed to sell the property under
guidelines provided by DOL and pay DOL for that
percentage of the current fair market value of the
property attributable to the Federal participation in the
project (after deducting actual and reasonable selling
and fix-up expenses, if any, from the sales proceeds).
When the recipient is authorized or required to sell the
property, proper sales procedures shall be established
that provide for competition to the extent practicable
and result in the highest possible return.
(3) The recipient may be directed to transfer title to the
property to the Federal Government or to an eligible
third party provided that, in such cases, the recipient
shall be entitled to compensation for its attributable
percentage of the current fair market value of the
property.
§ 95.33 Federally-owned and exempt property.
(a) Federally-owned property.
(1) Title to federally-owned property remains vested in the
Federal Government. Recipients shall submit annually an
inventory listing of federally-owned property in their
custody to DOL. Upon completion of the award or when the
property is no longer needed, the recipient shall report
the property to DOL for further Federal agency
utilization.
(2) If DOL has no further need for the property, it shall be
declared excess and reported to the General Services
Administration, unless DOL has statutory authority to
dispose of the property by alternative methods (e.g., the
authority provided by the Federal Technology Transfer Act
(15 U.S.C. 3710(i)) to donate research equipment to
educational and non-profit organizations in accordance
with E.O. 12821, "Improving Mathematics and Science
Education in Support of the National Education Goals.")
Appropriate instructions shall be issued to the recipient
by DOL.
(b) Exempt property.
When statutory authority exists, DOL has the option to vest
title to property acquired with Federal funds in the recipient
without further obligation to the Federal Government and under
conditions DOL considers appropriate. Such property is
"exempt property." Should DOL not establish conditions, title
to exempt property upon acquisition shall vest in the
recipient without further obligation to the Federal
Government.
§ 95.34 Equipment.
(a) Title to equipment acquired by a recipient with Federal funds
shall vest in the recipient, subject to conditions of this
section.
(b) The recipient shall not use equipment acquired with Federal
funds to provide services to non-Federal outside organizations
for a fee that is less than private companies charge for
equivalent services, unless specifically authorized by Federal
statute, for as long as the Federal Government retains an
interest in the equipment.
(c) The recipient shall use the equipment in the project or
program for which it was acquired as long as needed, whether
or not the project or program continues to be supported by
Federal funds and shall not encumber the property without
approval of the grant officer. When no longer needed for the
original project or program, the recipient shall use the
equipment in connection with its other federally, sponsored
activities, in the following order of priority: (1)
Activities sponsored by the DOL agency which funded the
original project, then (2) activities sponsored by other
Federal awarding agencies.
(d) During the time that equipment is used on the project or
program for which it was acquired, the recipient shall make it
available for use on other projects or programs if such other
use will not interfere with the work on the project or program
for which the equipment was originally acquired. First
preference for such other use shall be given to other projects
or programs sponsored by the DOL agency that financed the
equipment; second preference shall be given to projects or
programs sponsored by other Federal awarding agencies. If the
equipment is owned by the Federal Government, use on other
activities not sponsored by the Federal Government shall be
permissible if authorized by the grant officer. User charges
shall be treated as program income.
(e) When acquiring replacement equipment, the recipient may use
the equipment to be replaced as trade-in or sell the equipment
and use the proceeds to offset the costs of the replacement
equipment subject to the written approval of the grant
officer.
(f) The recipient's property management standards for equipment
acquired with Federal funds and federally-owned equipment
shall include all of the following:
(1) Equipment records shall be maintained accurately and
shall include the following information:
(i) A description of the equipment.
(ii) Manufacturer's serial number, model number,
Federal stock number, national stock number,
or other identification number.
(iii) Source of the equipment, including the award
number.
(iv) Whether title vests in the recipient or the
Federal Government.
(v) Acquisition date (or date received, if the
equipment was furnished by the Federal
Government) and cost.
(vi) Information from which one can calculate the
percentage of Federal participation in the
cost of the equipment (not applicable to
equipment furnished by the Federal
Government).
(vii) Location and condition of the equipment and
the date the information was reported.
(viii) Unit acquisition cost.
(ix) Ultimate disposition data, including date of
disposal and sales price or the method used to
determine current fair market value where a
recipient compensates DOL for its share.
(2) Equipment owned by the Federal Government shall be
identified to indicate Federal ownership.
(3) A physical inventory of equipment shall be taken and the
results reconciled with the equipment records at least
once every two years. Any differences between quantities
determined by the physical inspection and those shown in
the accounting records shall be investigated to determine
the causes of the difference. The recipient shall, in
connection with the inventory, verify the existence,
current utilization, and continued need for the
equipment.
(4) A control system shall be in effect to insure adequate
safeguards to prevent loss, damage, or theft of the
equipment. Any loss, damage, or theft of equipment shall
be investigated and fully documented; if the equipment
was owned by the Federal Government, the recipient shall
promptly notify the grant officer.
(5) Adequate maintenance procedures shall be implemented to
keep the equipment in good condition.
(6) Where the recipient is authorized or required to sell the
equipment, proper sales procedures shall be established
which provide for competition to the extent practicable
and result in the highest possible return.
(g) When the recipient no longer needs the equipment, the
equipment may be used for other activities in accordance with
the following standards. For equipment with a current per
unit fair market value of $5,000 or more, the recipient may
retain the equipment for other uses provided that compensation
is made to the original DOL agency. The amount of
compensation shall be computed by applying the percentage of
Federal participation in the cost of the original project or
program to the current fair market value of the equipment. If
the recipient has no need for the equipment, the recipient
shall request disposition instructions from DOL. The DOL
agency shall determine whether the equipment can be used to
meet the agency's requirements. If no requirement exists
within the DOL agency, the availability of the equipment shall
be reported to the General Services Administration by DOL to
determine whether a requirement for the equipment exists in
other Federal agencies. DOL shall issue instructions to the
recipient no later than 120 calendar days after the
recipient's request and the following procedures shall govern.
(1) If so instructed or if disposition instructions are not
issued within 120 calendar days after the recipient's
request, the recipient shall sell the equipment and
reimburse DOL an amount computed by applying to the sales
proceeds the percentage of Federal participation in the
cost of the original project or program. However, the
recipient shall be permitted to deduct and retain from
the Federal share $500 or ten percent of the proceeds,
whichever is less, for the recipient's selling and
handling expenses.
(2) If the recipient is instructed to ship the equipment
elsewhere, the recipient shall be reimbursed by the
Federal Government by an amount which is computed by
applying the percentage of the recipient's participation
in the cost of the original project or program to the
current fair market value of the equipment, plus any
reasonable shipping or interim storage costs incurred.
(3) If the recipient is instructed to otherwise dispose of
the equipment, the recipient shall be reimbursed by the
awarding agency for such costs incurred in its
disposition.
(4) The DOL agency reserves the right to transfer the title
to the Federal Government or to a third party named by
the Federal Government when such third party is otherwise
eligible under existing statutes. Such transfer shall be
subject to the following standards:
(i) The equipment shall be appropriately
identified in the award or otherwise made
known to the recipient in writing.
(ii) The DOL agency shall issue disposition
instructions within 120 calendar days after
receipt of a final inventory. The final
inventory shall list all equipment acquired
with grant funds and federally-owned
equipment. If DOL fails to issue disposition
instructions within the 120 calendar day
period, the recipient shall apply the
standards of this section, as appropriate.
(iii) When DOL exercises its right to take title,
the equipment shall be subject to the
provisions for federally-owned equipment.
§ 95.35 Supplies and other expendable property.
(a) Title to supplies and other expendable property shall vest in
the recipient upon acquisition. If there is a residual
inventory of unused supplies exceeding $5,000 in total
aggregate value upon termination or completion of the project
or program and the supplies are not needed for any other
federally-sponsored project or program, the recipient shall
retain the supplies for use on non-Federal sponsored
activities or sell them, but shall, in either case, compensate
the Federal Government for its share. The amount of
compensation shall be computed in the same manner as for
equipment.
(b) The recipient shall not use supplies acquired with Federal
funds to provide services to non-Federal outside organizations
for a fee that is less than private companies charge for
equivalent services, unless specifically authorized by Federal
statute as long as the Federal Government retains an interest
in the supplies.
§ 95.36 Intangible property.
(a) The recipient may copyright any work that is subject to
copyright and was developed, or for which ownership was
purchased, under an award. DOL reserves a royalty-free,
nonexclusive and irrevocable right to reproduce, publish, or
otherwise use the work for Federal purposes, and to authorize
others to do so.
(b) Recipients are subject to applicable regulations governing
patents and inventions, including government-wide regulations
issued by the Department of Commerce at 37 CFR part 401,
"Rights to Inventions Made by Nonprofit Organizations and
Small Business Firms Under Government Grants, Contracts and
Cooperative Agreements."
(c) DOL has the right to:
(1) Obtain, reproduce, publish or otherwise use the data
first produced under an award.
(2) Authorize others to receive, reproduce, publish, or
otherwise use such data for Federal purposes.
(d) Title to intangible property and debt instruments acquired
under an award or subaward vests upon acquisition in the
recipient. The recipient shall use that property for the
originally-authorized purpose, and the recipient shall not
encumber the property without written approval of the grant
officer. When no longer needed for the originally authorized
purpose, disposition of the intangible property shall occur in
accordance with the provisions of § 95.34(g).
§ 95.37 Property trust relationship.
Real property, equipment, intangible property and debt instruments
that are acquired or improved with Federal funds shall be held in
trust by the recipient as trustee for the beneficiaries of the
project or program under which the property was acquired or
improved. The grant officer may require recipients to record liens
or other appropriate notices of record to indicate that personal or
real property has been acquired or improved with Federal funds and
that use and disposition conditions apply to the property.
Procurement Standards
§ 95.40 Purpose of procurement standards.
Sections 95.41 through 95.48 set forth standards for use by
recipients in establishing procedures for the procurement of
supplies and other expendable property, equipment, real property
and other services with Federal funds. These standards are
furnished to ensure that such materials and services are obtained
in an effective manner and in compliance with the provisions of
applicable Federal statutes and executive orders. No additional
procurement standards or requirements shall be imposed by DOL upon
recipients, unless specifically required by Federal statute or
executive order or approved by OMB.
§ 95.41 Recipient responsibilities.
The standards contained in this section do not relieve the
recipient of the contractual responsibilities arising under its
contract(s). The recipient is the responsible authority, without
recourse to DOL, regarding the settlement and satisfaction of all
contractual and administrative issues arising out of procurements
entered into in support of an award or other agreement. This
includes disputes, claims, protests of award, source evaluation or
other matters of a contractual nature. Matters concerning
violation of statute are to be referred to such Federal, State or
local authority as may have proper jurisdiction.
§ 95.42 Codes of conduct.
The recipient shall maintain written standards of conduct governing
the performance of its employees engaged in the award and
administration of contracts. No employee, officer, or agent shall
participate in the selection, award, or administration of a
contract supported by Federal funds if a real or apparent conflict
of interest would be involved. Such a conflict would arise when
the employee, officer, or agent, any member of his or her immediate
family, his or her partner, or an organization which employs or is
about to employ any of the parties indicated herein, has a
financial or other interest in the firm selected for an award. The
officers, employees, and agents of the recipient shall neither
solicit nor accept gratuities, favors, or anything of monetary
value from contractors, or parties to subagreements. However,
recipients may set standards for situations in which the financial
interest is not substantial or the gift is an unsolicited item of
nominal value. The standards of conduct shall provide for
disciplinary actions to be applied for violations of such standards
by officers, employees, or agents of the recipient.
§ 95.43 Competition.
All procurement transactions shall be conducted in a manner to
provide, to the maximum extent practical, open and free
competition. The recipient shall be alert to organizational
conflicts of interest as well as noncompetitive practices among
contractors that may restrict or eliminate competition or otherwise
restrain trade. In order to ensure objective contractor
performance and eliminate unfair competitive advantage, contractors
that develop or draft specifications, requirements, statements of
work, invitations for bids and/or requests for proposals shall be
excluded from competing for such procurements. Awards shall be
made to the bidder or offeror whose bid or offer is responsive to
the solicitation and is most advantageous to the recipient, price,
quality and other factors considered. Solicitations shall clearly
set forth all requirements that the bidder or offeror shall fulfill
in order for the bid or offer to be evaluated by the recipient.
Any and all bids or offers may be rejected when it is in the
recipient's interest to do so.
§ 95.44 Procurement procedures.
(a) All recipients shall establish written procurement procedures.
These procedures shall provide for, at a minimum, that
paragraphs (a)(1), (a)(2), and (a)(3) of this section apply.
(1) Recipients shall avoid purchasing unnecessary items.
(2) Where appropriate, an analysis shall be made of lease and
purchase alternatives to determine which would be the
most economical and practical procurement for the Federal
Government.
(3) Solicitations for goods and services shall provide for
all of the following:
(i) A clear and accurate description of the
technical requirements for the material,
product or service to be procured. In
competitive procurements, such a description
shall not contain features which unduly
restrict competition.
(ii) Requirements which the bidder/offeror must
fulfill and all other factors to be used in
evaluating bids or proposals.
(iii) A description, whenever practicable, of
technical requirements in terms of functions
to be performed or performance required,
including the range of acceptable
characteristics or minimum acceptable
standards.
(iv) The specific features of "brand name or equal"
descriptions that bidders are required to meet
when such items are included in the
solicitation.
(v) The acceptance, to the extent practicable and
economically feasible, of products and
services dimensioned in the metric system of
measurement.
(vi) Preference, to the extent practicable and
economically feasible, for products and
services that conserve natural resources and
protect the environment and are energy
efficient.
(b) Positive efforts shall be made by recipients to utilize small
businesses, minority-owned firms, and women's business
enterprises, whenever possible. Recipients of Federal awards
shall take all of the following steps to further this goal:
(1) Ensure that small businesses, minority-owned firms, and
women's business enterprises are used to the fullest
extent practicable.
(2) Make information on forthcoming opportunities available
and arrange time frames for purchases and contracts to
encourage and facilitate participation by small
businesses, minority-owned firms, and women's business
enterprises.
(3) Consider in the contract process whether firms competing
for larger contracts intend to subcontract with small
businesses, minority-owned firms, and women's business
enterprises.
(4) Encourage contracting with consortiums of small
businesses, minority-owned firms and women's business
enterprises when a contract is too large for one of these
firms to handle individually.
(5) Use the services and assistance, as appropriate, of such
organizations as the Small Business Administration, the
Department of Commerce's Minority Business Development
Agency, and DOL's Office of Small Business and Minority
Affairs in the solicitation and utilization of small
businesses, minority-owned firms and women's business
enterprises.
(c) The type of procuring instruments used (e.g., fixed price
contracts, cost reimbursable contracts, purchase orders, and
incentive contracts) shall be determined by the recipient but
shall be appropriate for the particular procurement and for
promoting the best interest of the program or project
involved. The "cost-plus-a-percentage-of-cost" or "percentage
of construction cost" methods of contracting shall not be
used.
(d) Contracts shall be made only with responsible contractors who
possess the potential ability to perform successfully under
the terms and conditions of the proposed procurement.
Consideration shall be given to such matters as contractor
integrity, record of past performance, financial and technical
resources or accessibility to other necessary resources. In
certain circumstances, contracts with certain parties are
restricted by agencies' implementation of E.O.'s 12549 and
12689, "Debarment and Suspension." See 29 CFR part 98.
(e) Recipients shall, on request, make available to DOL, pre-award
and procurement documents, such as request for proposals or
invitations for bids, independent cost estimates, etc., when
any of the following conditions apply:
(1) A recipient's procurement procedures or operation fails
to comply with the procurement standards in this part.
(2) The procurement is expected to exceed the small purchase
threshold fixed at 41 U.S.C. 403(11) (currently $25,000)
and is to be awarded without competition or only one bid
or offer is received in response to a solicitation.
(3) The procurement, which is expected to exceed the small
purchase threshold, specifies a "brand name" product.
(4) The proposed award over the small purchase threshold is
to be awarded to other than the apparent low bidder under
a sealed bid procurement.
(5) A proposed contract modification changes the scope of a
contract or increases the contract amount by more than
the amount of the small purchase threshold.
§ 95.45 Cost and price analysis.
Some form of cost or price analysis shall be made and documented in
the procurement files in connection with every procurement action.
Price analysis may be accomplished in various ways, including the
comparison of price quotations submitted, market prices and similar
indicia, together with discounts. Cost analysis is the review and
evaluation of each element of cost to determine reasonableness,
allocability and allowability.
§ 95.46 Procurement records.
Procurement records and files for purchases in excess of the small
purchase threshold shall include the following at a minimum: (a)
basis for contractor selection, (b) justification for lack of
competition when competitive bids or offers are not obtained, and
(c) basis for award cost or price.
§ 95.47 Contract administration.
A system for contract administration shall be maintained to ensure
contractor conformance with the terms, conditions and
specifications of the contract and to ensure adequate and timely
follow up of all purchases. Recipients shall evaluate contractor
performance and document, as appropriate, whether contractors have
met the terms, conditions and specifications of the contract.
§ 95.48 Contract provisions.
The recipient shall include, in addition to provisions to define a
sound and complete agreement, the following provisions in all
contracts. The following provisions shall also be applied to
subcontracts:
(a) Contracts in excess of the small purchase threshold shall
contain contractual provisions or conditions that allow for
administrative, contractual, or legal remedies in instances in
which a contractor violates or breaches the contract terms,
and provide for such remedial actions as may be appropriate.
(b) All contracts in excess of the small purchase threshold shall
contain suitable provisions for termination by the recipient,
including the manner by which termination shall be effected
and the basis for settlement. In addition, such contracts
shall describe conditions under which the contract may be
terminated for default as well as conditions where the
contract may be terminated because of circumstances beyond the
control of the contractor.
(c) Except as otherwise required by statute, an award that
requires the contracting (or subcontracting) for construction
or facility improvements shall provide for the recipient to
follow its own requirements relating to bid guarantees,
performance bonds, and payment bonds unless the construction
contract or subcontract exceeds $100,000. For those contracts
or subcontracts exceeding $100,000, DOL may accept the bonding
policy and requirements of the recipient, provided DOL has
made a determination that the Federal Government's interest is
adequately protected. If such a determination has not been
made, the minimum requirements shall be as follows.
(1) A bid guarantee from each bidder equivalent to five
percent of the bid price. The "bid guarantee" shall
consist of a firm commitment such as a bid bond,
certified check, or other negotiable instrument
accompanying a bid as assurance that the bidder shall,
upon acceptance of his bid, execute such contractual
documents as may be required within the time specified.
(2) A performance bond on the part of the contractor for 100
percent of the contract price. A "performance bond" is
one executed in connection with a contract to secure
fulfillment of all the contractor's obligations under
such contract.
(3) A payment bond on the part of the contractor for 100
percent of the contract price. A "payment bond" is one
executed in connection with a contract to assure payment
as required by statute of all persons supplying labor and
material in the execution of the work provided for in the
contract.
(4) Where bonds are required in the situations described
herein, the bonds shall be obtained from companies
holding certificates of authority as acceptable sureties
pursuant to 31 CFR part 223, "Surety Companies Doing
Business with the United States."
(d) All negotiated contracts (except those for less than the small
purchase threshold) awarded by recipients shall include a
provision to the effect that the recipient, DOL, the
Comptroller General of the United States, or any of their duly
authorized representatives, shall have access to any books,
documents, papers and records of the contractor which are
directly pertinent to a specific program for the purpose of
making audits, examinations, excerpts and transcriptions.
(e) All contracts, including small purchases, awarded by
recipients and their contractors shall contain the procurement
provisions of Appendix A to this part, as applicable.
Reports and Records
§ 95.50 Purpose of reports and records.
Sections 95.51 through 95.53 set forth the procedures for
monitoring and reporting on the recipient's financial and program
performance and the necessary standard reporting forms. They also
set forth record retention requirements.
§ 95.51 Monitoring and reporting program performance.
(a) Recipients are responsible for managing and monitoring each
project, program, subaward, function or activity supported by
the award. Recipients shall monitor subawards to ensure
subrecipients have met the audit requirements as delineated in
§ 95.26.
(b) DOL shall prescribe the frequency with which performance
reports shall be submitted. Except as provided in paragraph
(f) of this section, performance reports shall not be required
more frequently than quarterly or, less frequently than
annually. Annual reports shall be due 90 calendar days after
the grant year; quarterly or semi-annual reports shall be due
30 days after the reporting period. DOL may require annual
reports before the anniversary dates of multiple-year awards
in lieu of these requirements. The final performance reports
are due 90 calendar days after the expiration or termination
of the award.
(c) If inappropriate, a final technical or performance report
shall not be required after completion of the project.
(d) When required, performance reports shall generally contain,
for each award, brief information on each of the following:
(1) A comparison of actual accomplishments with the goals and
objectives established for the period, the findings of
the investigator, or both. Whenever appropriate and the
output of programs or projects can be readily quantified,
such quantitative data should be related to cost data for
computation of unit costs.
(2) Reasons why established goals were not met, if
appropriate.
(3) Other pertinent information including, when appropriate,
analysis and explanation of cost overruns or high unit
costs.
(e) Recipients shall not be required to submit more than the
original and two copies of performance reports.
(f) Recipients shall immediately notify DOL of developments that
have a significant impact on the award-supported activities.
Also, notification shall be given in the case of problems,
delays, or adverse conditions which materially impair the
ability to meet the objectives of the award. This
notification shall include a statement of the action taken or
contemplated, and any assistance needed to resolve the
situation.
(g) DOL may make site visits, as needed.
(h) DOL shall comply with clearance requirements of 5 CFR part
1320 when requesting performance data from recipients.
§ 95.52 Financial reporting.
(a) The following forms or such other forms as may be approved by
OMB are authorized for obtaining financial information from
recipients:
(1) SF-269 or SF-269A, Financial Status Report.
(i) Recipients shall use the SF-269, SF-269A, or other
OMB-approved forms to report the status of funds
for all nonconstruction projects or programs. DOL
may, however, have the option of not requiring the
SF-269 or SF-269A when the SF-270, Request for
Advance or Reimbursement, or SF-272, Report of
Federal Cash Transactions, is determined to provide
adequate information to meet its needs, except that
a final SF-269 or SF-269A shall be required at the
completion of the project when the SF-270 is used
only for advances.
(ii) DOL shall prescribe whether the report shall be on
a cash or an accrual basis. If DOL requires
accrual information and the recipient's accounting
records are not normally kept on the accrual basis,
the recipient shall not convert its accounting
system, but shall develop such accrual information
through best estimates based on an analysis of the
documentation on hand.
(iii) DOL shall determine the frequency of the Financial
Status Report for each project or program,
considering the size and complexity of the
particular project or program. However, the report
shall not be required more frequently than
quarterly or less frequently than annually. A
final report shall be required at the completion of
the agreement.
(iv) Recipients shall submit to DOL the SF-269, SF-269A,
or other OMB-approved forms (an original and no
more than two copies) no later than 30 days after
the end of each specified reporting period for
quarterly and semi-annual reports, and 90 calendar
days for annual and final reports. Extensions of
reporting due dates may be approved by DOL upon
request of the recipient.
(2) SF-272, Report of Federal Cash Transactions.
(i) When funds are advanced to recipients, the
recipient shall submit the SF-272 and, when
necessary, its continuation sheet, SF-272a.
DOL shall use this report to monitor cash
advanced to recipients and to obtain
disbursement information for each agreement
with the recipients.
(ii) DOL may require forecasts of Federal cash
requirements in the "Remarks" section of the
report.
(iii) When practical and deemed necessary, DOL may
require recipients to report in the "Remarks"
section the amount of cash advances received
in excess of three days. Recipients shall
provide short narrative explanations of
actions taken to reduce the excess balances.
(iv) Recipients shall submit not more than the
original and two copies of the SF-272 15
calendar days following the end of each
quarter. The DOL agency may require a monthly
report from those recipients receiving
advances totaling $1 million or more per year.
(v) DOL may waive the requirement for submission
of the SF-272 for any one of the following
reasons: (1) When monthly advances do not
exceed $25,000 per recipient, provided that
such advances are monitored through other
forms contained in this section; (2) If, in
DOL's opinion, the recipient's accounting
controls are adequate to minimize excessive
Federal advances; or, (3) When the electronic
payment mechanisms provide adequate data.
(b) When DOL needs additional information or more frequent
reports, the following shall be observed.
(1) When additional information is needed to comply with
legislative requirements, DOL shall issue instructions to
require recipients to submit such information under the
"Remarks" section of the reports.
(2) When DOL determines that a recipient's accounting system
does not meet the standards in § 95.21, additional
pertinent information to further monitor awards may be
obtained upon written notice to the recipient until such
time as the system is brought up to standard. DOL, in
obtaining this information, shall comply with report
clearance requirements of 5 CFR part 1320.
(3) DOL may shade out any line item on any report if not
necessary.
(4) DOL may accept the identical information from the
recipients in machine readable format or computer
printouts or electronic outputs in lieu of prescribed
formats.
(5) DOL may provide computer or electronic outputs to
recipients when such expedites or contributes to the
accuracy of reporting.
§ 95.53 Retention and access requirements for records.
(a) This section sets forth requirements for record retention and
access to records for awards to recipients. DOL shall not
impose any other record retention or access requirements upon
recipients.
(b) Financial records, supporting documents, statistical records,
and all other records pertinent to an award shall be retained
for a period of three years from the date of submission of the
final expenditure report or, for awards that are renewed
quarterly or annually, from the date of the submission of the
quarterly or annual financial report, as authorized by DOL.
The only exceptions are the following:
(1) If any litigation, claim, or audit is started before the
expiration of the 3-year period, the records shall be
retained until all litigation, claims or audit findings
involving the records have been resolved and final action
taken.
(2) Records for real property and equipment acquired with
Federal funds shall be retained for 3 years after final
disposition.
(3) When records are transferred to or maintained by DOL, the
3-year retention requirement is not applicable to the
recipient.
(4) Indirect cost rate proposals, cost allocations plans,
etc., as specified in paragraph (g) of this section.
(c) Copies of original records may be substituted for the original
records if authorized by DOL.
(d) DOL shall request transfer of certain records to its custody
from recipients when it determines that the records possess
long term retention value. However, in order to avoid
duplicate recordkeeping, DOL may make arrangements for
recipients to retain any records that are continuously needed
for joint use.
(e) The Federal grantor awarding agency, the Inspector General,
the Comptroller General of the United States, or any of their
duly authorized representatives, have the right of timely and
unrestricted access to any books, documents, papers, or other
records of recipients that are pertinent to the awards, in
order to make audits, examinations, excerpts, transcripts and
copies of such documents. This right also includes timely and
reasonable access to a recipient's personnel for the purpose
of interview and discussion related to such documents. The
rights of access in this paragraph are not limited to the
required retention period, but shall last as long as records
are retained.
(f) Unless required by statute, DOL shall not place restrictions
on recipients that limit public access to the records of
recipients that are pertinent to an award, except when DOL can
demonstrate that such records shall be kept confidential and
would have been exempted from disclosure pursuant to the
Freedom of Information Act (5 U.S.C. § 552) if the records had
belonged to DOL.
(g) Indirect cost rate proposals, cost allocations plans, etc.
paragraphs (g)(1) and (g)(2) of this section apply to the
following types of documents, and their supporting records:
indirect cost rate computations or proposals, cost allocation
plans, and any similar accounting computations of the rate at
which a particular group of costs is chargeable (such as
computer usage chargeback rates or composite fringe benefit
rates).
(1) If submitted for negotiation. If the recipient submits
to DOL or the subrecipient submits to the recipient the
proposal, plan, or other computation to form the basis
for negotiation of the rate, then the 3-year retention
period for its supporting records starts on the date of
such submission.
(2) If not submitted for negotiation. If the recipient is
not required to submit to DOL or the subrecipient is not
required to submit to the recipient the proposal, plan,
or other computation for negotiation purposes, then the
3-year retention period for the proposal, plan, or other
computation and its supporting records starts at the end
of the fiscal year (or other accounting period) covered
by the proposal, plan, or other computation.
Termination and Enforcement
§ 95.60 Purpose of termination and enforcement.
Sections 95.61 and 95.62 set forth uniform suspension, termination
and enforcement procedures.
§ 95.61 Termination.
(a) Awards may be terminated in whole or in part only if
paragraphs (a)(1), (a)(2), or (a)(3) of this section apply.
(1) By the grant officer, if a recipient materially fails to
comply with the terms and conditions of an award.
(2) By the grant officer, with the consent of the recipient,
in which case the two parties shall agree upon the
termination conditions, including the effective date and,
in the case of partial termination, the portion to be
terminated.
(3) By the recipient upon sending to the grant officer
written notification setting forth the reasons for such
termination, the effective date, and, in the case of
partial termination, the portion to be terminated.
However, if the grant officer determines in the case of
partial termination that the reduced or modified portion
of the grant will not accomplish the purposes for which
the grant was made, the grant officer may terminate the
grant in its entirety under either paragraphs (a)(1) or
(2) of this section.
(b) If costs are allowed under an award, the responsibilities of
the recipient referred to in § 95.71(a), including those for
property management as applicable, shall be considered in the
termination of the award, and provision shall be made for
continuing responsibilities of the recipient after
termination, as appropriate.
§ 95.62 Enforcement.
(a) Remedies for noncompliance. If a recipient materially fails
to comply with the terms and conditions of an award, whether
stated in a Federal statute, regulation, assurance,
application, or notice of award, DOL may, in addition to
imposing any of the special conditions outlined in § 95.14,
take one or more of the following actions, as appropriate in
the circumstances:
(1) Temporarily withhold cash payments pending correction of
the deficiency by the recipient or more severe
enforcement action by DOL.
(2) Disallow (that is, deny both use of funds and any
applicable matching credit for) all or part of the cost
of the activity or action 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, DOL
shall provide the recipient an opportunity for hearing,
appeal, or other administrative proceeding to which the
recipient is entitled under any statute or regulation
applicable to the action involved.
(c) Effects of suspension and termination. Costs of a recipient
resulting from obligations incurred by the recipient during a
suspension or after termination of an award are not allowable
unless DOL expressly authorizes them in the notice of
suspension or termination or subsequently. Other recipient
costs during suspension or after termination which are
necessary and not reasonably avoidable are allowable if
paragraphs (c)(1) and (c)(2) of this section apply.
(1) The costs result from obligations which were properly
incurred by the recipient before the effective date of
suspension or termination, are not in anticipation of it,
and in the case of a termination, are noncancellable.
(2) The costs would be allowable if the award were not
suspended or expired normally at the end of the funding
period in which the termination takes effect.
(d) Relationship to debarment and suspension. The enforcement
remedies identified in this section, including suspension and
termination, do not preclude a recipient from being subject to
debarment and suspension under E.O.'s 12549 and 12689 and
DOL's implementing regulations. See § 95.13 and 29 CFR part
98.
Subpart D - After-the-Award Requirements
§ 95.70 Purpose.
Sections 95.71 through 95.73 contain closeout procedures and other
procedures for subsequent disallowances and adjustments.
§ 95.71 Closeout procedures.
(a) Recipients shall submit, within 90 calendar days after the
date of completion of the award, all financial, performance,
and other reports as required by the terms and conditions of
the award. DOL may approve extensions when requested by the
recipient.
(b) Unless DOL authorizes an extension, a recipient shall
liquidate all obligations incurred under the award not later
than 90 calendar days after the funding period or the date of
completion as specified in the terms and conditions of the
award or in agency implementing instructions.
(c) DOL shall make prompt payments to a recipient for allowable
reimbursable costs under the award being closed out.
(d) The recipient shall promptly refund any balances of
unobligated cash that DOL has advanced or paid and that is not
authorized to be retained by the recipient for use in other
projects. OMB Circular A-129 governs unreturned amounts that
become delinquent debts.
(e) When authorized by the terms and conditions of the award, DOL
shall make a settlement for any upward or downward adjustments
to the Federal share of costs after closeout reports are
received.
(f) The recipient shall account for any real and personal property
acquired with Federal funds or received from the Federal
Government in accordance with §§ 95.31 through 95.37.
(g) In the event a final audit has not been performed prior to the
closeout of an award, DOL retains the right to recover an
appropriate amount after fully considering the recommendations
on disallowed costs resulting from the final audit.
§ 95.72 Subsequent adjustments and continuing responsibilities.
(a) The closeout of an award does not affect any of the following:
(1) The right of DOL to disallow costs and recover funds on
the basis of a later audit or other review.
(2) The obligation of the recipient to return any funds due
as a result of later refunds, corrections, or other
transactions.
(3) Audit requirements in § 95.26.
(4) Property management requirements in §§ 95.31 through
95.37.
(5) Records retention as required in § 95.53.
(b) After closeout of an award, a relationship created under an
award may be modified or ended in whole or in part with the
consent of DOL and the recipient, provided the
responsibilities of the recipient referred to in § 95.73(a),
including those for property management as applicable, are
considered and provisions made for continuing responsibilities
of the recipient, as appropriate.
§ 95.73 Collection of amounts due.
(a) Any funds paid to a recipient in excess of the amount to which
the recipient is finally determined to be entitled under the
terms and conditions of the award constitute a debt to the
Federal Government. If not paid within a reasonable period
after the demand for payment, DOL may reduce the debt by
paragraphs (a)(1), (a)(2), or (a)(3) of this section.
(1) Making an administrative offset against other requests
for reimbursements.
(2) Withholding advance payments otherwise due to the
recipient.
(3) Taking other action permitted by statute.
(b) Except as otherwise provided by law, DOL shall charge interest
on an overdue debt in accordance with 4 CFR Chapter II,
"Federal Claims Collection Standards."
Appendix A
Contract Provisions
All contracts, awarded by a recipient including small
purchases, shall contain the following provisions as applicable:
1. Equal Employment Opportunity -- All contracts shall contain a
provision requiring compliance with E.O. 11246, "Equal Employment
Opportunity," as amended by E.O. 11375, "Amending Executive Order
11246 Relating to Equal Employment Opportunity," and as
supplemented by regulations at 41 CFR part 60, "Office of Federal
Contract Compliance Programs, Equal Employment Opportunity,
Department of Labor."
2. Copeland "Anti-Kickback" Act (18 U.S.C. § 874 and 40 U.S.C. §
§ 276c) -- All contracts and subgrants in excess of $2000 for
construction or repair awarded by recipients and subrecipients
shall include a provision for compliance with the Copeland "Anti-Kickback" Act (18 U.S.C. § 874), as supplemented by Department of
Labor regulations (29 CFR part 3, "Contractors and Subcontractors
on Public Building or Public Work Financed in Whole or in Part by
Loans or Grants from the United States"). The Act provides that
each contractor or subrecipient shall be prohibited from inducing,
by any means, any person employed in the construction, completion,
or repair of public work, to give up any part of the compensation
to which one is otherwise entitled. The recipient shall report all
suspected or reported violations to the Federal awarding agency.
3. Davis-Bacon Act, as amended (40 U.S.C. § 276a to a-7) - When
required by Federal program legislation, all construction contracts
awarded by the recipients and subrecipients of more than $2000
shall include a provision for compliance with the Davis-Bacon Act
(40 U.S.C. § 276a to a-7) and as supplemented by Department of
Labor regulations (29 CFR part 5, "Labor Standards Provisions
Applicable to Contracts Governing Federally Financed and Assisted
Construction"). Under this Act, contractors shall be required to
pay wages to laborers and mechanics at a rate not less than the
minimum wages specified in a wage determination made by the
Secretary of Labor. In addition, contractors shall be required to
pay wages not less than once a week. The recipient shall place a
copy of the current prevailing wage determination issued by the
Department of Labor in each solicitation and the award of a
contract shall be conditioned upon the acceptance of the wage
determination. The recipient shall report all suspected or
reported violations to the Federal awarding agency.
4. Contract Work Hours and Safety Standards Act (40 U.S.C. § 327-333) -- Where applicable, all contracts awarded by recipients in
excess of $2,000 for construction contracts and in excess of $2,500
for other contracts that involve the employment of mechanics or
laborers shall include a provision for compliance with Sections 102
and 107 of the Contract Work Hours and Safety Standards Act (40
U.S.C. § 327-333), as supplemented by Department of Labor
regulations (29 CFR part 5). Under Section 102 of the Act, each
contractor shall be required to compute the wages of every mechanic
and laborer on the basis of a standard work week of 40 hours. Work
in excess of the standard work week is permissible provided that
the worker is compensated at a rate of not less than 1-1/2 times
the basic rate of pay for all hours worked in excess of 40 hours in
the work week. Section 107 of the Act is applicable to
construction work and provides that no laborer or mechanic shall be
required to work in surroundings or under working conditions which
are unsanitary, hazardous or dangerous. These requirements do not
apply to the purchases of supplies or materials or articles
ordinarily available on the open market, or contracts for
transportation or transmission of intelligence.
5. Rights to Inventions Made Under a Contract or Agreement --
Contracts or agreements for the performance of experimental,
developmental, or research work shall provide for the rights of the
Federal Government and the recipient in any resulting invention in
accordance with 37 CFR part 401, "Rights to Inventions Made by
Nonprofit Organizations and Small Business Firms Under Government
Grants, Contracts and Cooperative Agreements," and any implementing
regulations issued by the awarding agency.
6. Clean Air Act (42 U.S.C. § 7401 et seq.) and the Federal Water
Pollution Control Act (33 U.S.C. § 1251 et seq.), as amended --
Contracts and subgrants of amounts in excess of $100,000 shall
contain a provision that requires the recipient to agree to comply
with all applicable standards, orders or regulations issued
pursuant to the Clean Air Act (42 U.S.C. § 7401 et seq.) and the
Federal Water Pollution Control Act as amended (33 U.S.C. § 1251 et
seq.). Violations shall be reported to the Federal awarding agency
and the Regional Office of the Environmental Protection Agency
(EPA).
7. Byrd Anti-Lobbying Amendment (31 U.S.C. § 1352) -- Contractors
who apply or bid for an award of $100,000 or more shall file the
required certification. Each tier certifies to the tier above that
it will not and has not used Federal appropriated funds to pay any
person or organization for influencing or attempting to influence
an officer or employee of any agency, a member of Congress, officer
or employee of Congress, or an employee of a member of Congress in
connection with obtaining any Federal contract, grant or any other
award covered by 31 U.S.C. § 1352. Each tier shall also disclose
any lobbying with non-Federal funds that takes place in connection
with obtaining any Federal award. Such disclosures are forwarded
from tier to tier up to the recipient.
8. Debarment and Suspension (E.O.'s 12549 and 12689) -- No
contract shall be made to parties listed on the General Services
Administration's List of Parties Excluded from Federal Procurement
or Nonprocurement Programs in accordance with E.O.'s 12549 and
12689, "Debarment and Suspension." This list contains the names of
parties debarred, suspended, or otherwise excluded by agencies, and
contractors declared ineligible under statutory or regulatory
authority other than E.O. 12549. Contractors with awards that
exceed the small purchase threshold shall provide the required
certification regarding its exclusion status and that of its
principal employees.
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