[Code of Federal Regulations]
[Title 7, Volume 6]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR634.16]

[Page 442-443]
 
                          TITLE 7--AGRICULTURE
 
   CHAPTER VI--NATURAL RESOURCES CONSERVATION SERVICE, DEPARTMENT OF 
                               AGRICULTURE
 
PART 634_RURAL CLEAN WATER PROGRAM--Table of Contents
 
               Subpart B_Project Authorization and Funding
 
Sec. 634.16  Suspension of grants.

    (a) Suspension orders. Work on a project or on a portion or phase of 
a project for which a grant has been awarded, may be suspended by order 
of the State Conservationist, NRCS. Suspension does not affect RCWP 
contracts existing at the time the suspension order is issued, or the 
administering agency's responsibility to make payments under such 
contracts unless specifically provided for in the suspend order. In no 
event will the participant's right to cost-share payment be diminished 
by action taken under this section.
    (b) Use of suspension orders. Suspension may be required for good 
cause, such as default by the administering agency, failure to comply 
with the terms and conditions of the grant, realignment of programs, or 
advancements in the state of the art.
    (c) Contents of suspension orders. Prior to issuance, suspension 
orders will be discussed with the administering agency and may be 
appropriately modified, in the light of such discussions. Suspension 
orders are to include:

[[Page 443]]

    (1) A clear description of the work to be suspended,
    (2) Instructions as to the issuance of further orders by the 
administering agency for materials or services,
    (3) Instructions as to the administering agency entering into new 
RCWP contracts in the project area,
    (4) Instructions as to the administering agency servicing existing 
RCWP contracts in the project area, and
    (5) Other instructions to the administering agency for minimizing 
Federal costs.
    (d) Issuance of suspension order. Suspension orders are issued by 
the State Conservationist, NRCS, by letter to the administering agency 
(certified mail, return receipt requested). A suspension order may not 
exceed forty-five (45) calendar days.
    (e) Effect of suspension order. (1) Upon receipt of a suspension 
order, the administering agency shall promptly comply with its terms and 
take all reasonable steps to minimize costs allocable to the work 
covered by the order during the period of work suspension. During the 
suspension period, NRCS shall either:
    (i) Cancel the suspension order, in full or in part, and authorize 
resumption of work, or
    (ii) Take action to terminate the work covered by such order as 
provided by Sec. 634.17.
    (2) If a suspension order is canceled, or the period of the order 
expires, the administering agency shall promptly resume the suspended 
work. An equitable adjustment shall be made in the grant period, the 
project period, or grant amount, or all of these, and the grant 
agreement may be amended:
    (i) The suspension order results in an increase in the time, or cost 
properly allocable to, the performance of any part of the project; and
    (ii) The administering agency asserts a written claim for such 
adjustment within thirty (30) days after the end of the period of work 
suspension. If no written claim is made, NRCS may unilaterally make such 
adjustments.
    (iii) Reasonable costs resulting from the suspension order shall be 
allowed in arriving at any terminations settlement.
    (3) Costs incurred by the administering agency after a suspension 
order is delivered that are not authorized by this section or 
specifically authorized in writing by the State Conservationist, NRCS, 
shall not be allowable costs.