EDGAR Part 74 Subpart D (After-the-Award Requirements), Appendix
Subpart D_After-the-Award Requirements
Sec. 74.70 Purpose.
Sections 74.71 through 74.73 contain closeout procedures and other
procedures for subsequent disallowances and adjustments.
(Authority: 20 U.S.C. 1221e-3, 3474; OMB Circular A-110)
Sec. 74.71 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. The
Secretary may approve extensions when requested by the recipient.
(b) Unless the Secretary 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 ED implementing
instructions.
(c) The Secretary makes 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 the Secretary 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, the
Secretary makes 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 Sec. Sec. 74.31 through 74.37.
(g) In the event a final audit has not been performed prior to the
closeout of an award, the Secretary shall retain the right to recover an
appropriate amount after fully considering the recommendations on
disallowed costs resulting from the final audit.
(Approved by the Office of Management and Budget under control number
1880-0513)
(Authority: 20 U.S.C. 1221e-3, 3474; OMB Circular A-110)
[59 FR 34724, July 6, 1994, as amended at 60 FR 6660, Feb. 3, 1995]
Sec. 74.72 Subsequent adjustments and continuing responsibilities.
(a) The closeout of an award does not affect any of the following:
(1) The right of the Secretary 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 Sec. 74.26.
(4) Property management requirements in Sec. Sec. 74.31 through
74.37.
(5) Records retention as required in Sec. 74.53.
(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
the Secretary and the recipient, provided the responsibilities of the
recipient referred to in Sec. 74.73(a), including those for property
management as applicable, are considered and provisions made for
continuing responsibilities of the recipient, as appropriate.
(Approved by the Office of Management and Budget under control number
1880-0513)
(Authority: 20 U.S.C. 1221e-3, 3474; OMB Circular A-110)
[59 FR 34724, July 6, 1994, as amended at 60 FR 6660, Feb. 3, 1995]
Sec. 74.73 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, the
Secretary may reduce the debt by--
(1) Making an administrative offset against other requests for
reimbursements;
(2) Withholding advance payments otherwise due to the recipient; or
(3) Taking other action permitted by statute.
(b) Except as otherwise provided by law, the Secretary charges
interest on an overdue debt in accordance with 4 CFR Chapter II--Federal
Claims Collection Standards.
(Authority: 20 U.S.C. 1221e-3, 3474; OMB Circular A-110)
Appendix A to Part 74--Contract Provisions
All contracts, awarded by a recipient including small purchases,
shall contain the following provisions as applicable:
1. Equal Employment Opportunity--All contracts must 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 $2,000 for construction
or repair awarded by recipients and subrecipients must 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 he 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 $2,000 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 $2500 for other
contracts that involve the employment of mechanics or laborers must
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 must 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 ED 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.
The disclosures are forwarded from tier to tier up to the recipient.
8. Debarment and Suspension (E.O. 12549 and E.O. 12689)--No contract
may 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 12549 and E.O. 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
must provide the required certification regarding its exclusion status
and that of its principal employees.
(Authority: 20 U.S.C. 1221e-3, 3474; OMB Circular A-110)
EDGAR version June 23, 2005
