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AGREEMENT 'M'~N10RAND~M TO: The City Commission of theA City of Clearwater SUBJECT: I " .; v. IMeetl~ig Date: 6/19/(\,:, F1\IR HOUSING 1\SSIST1\NCE PROGRJ\M GRJ\NT 1\WJlRD, RECOM MENDATION: 'I'he attached 1\ssistar.ce Award from the U. S. [lE'partment of Housing and Urban Develof:ment be accE'pted and the attached agreement with Tampa Bay R€'gional Plilnniilg Council be approved in substar.lially the form attached ti1 And that the appropriate officials be authorized to execute some. BACKGROUND: During 1985, II.U.D. anllounced the availability of Type II Fair l;c;lI~:irIS Assistance FUllds for special programs desigced to alleviate ho~sin~ dis- crimination_ Tc'..p-a Bay RegiorJid Planning Council's Fair 1I0usins f.teering Committee recommended a joint agency proposal for the Cities of Clearwater, St - p~ tersburg <ond Tampa and Hillsbcorough County, all of whom administer local fair housing laws recognized by II.U.D. as being substantially equiva- lent tv Title VIII of the Civil Rights Act of 1968, which is required for eligibility. The proposal is to identify patterns of discriminatory hous- ing practic~s and change the scope and awareness of laws and sanctions in the region with concentrated effort on housing laws and enforcement, and education. The City of Clearwater proposed to act as lead qualifying agency for the assistance award with TBRPC providing project administration and staff_ The City will be eligible to receive $20,945 as reimbursement to the general fund for City staff time and operating costs during the program period and an additional $800 will be available for City expenditures in production of a fair housing video tape. The balance of the funds will be expended through a sub-contract with TBRPC to perform local auditing, training, outreach and superv1s10n. 1\ detailed budget is attached to the proposed ^greement with TBRPC. See also the attached m~morandum fro~ Ron McElrath. - RECEIVED AUG 8 1986 Commission Disposition: 1. Approved as Recommended/Reyised/Conditional 2. Continued to Follow -up Act ion: dalt ITY CLERK Submitted by: Advert ised: Date: OAffected Parties Notified' of Meeting Costs: NONF Funding Source: o Capital Improve- ment Budgel o Operating Budget o Other CiJ A 1 lochments: ri:l Not Required , Originating Date 8Sequentiol Reference PLANNING & URB1\N DEVELOPMENT Appropriation Code I 1_ l\SSista.~ AI.;ard I I 2. Agreement with I TBRPCI I 3. Meme to '~9er I I I , City Manager Paper: o None I I AGREEMENT the City of Clearwater, 'f'+-- day of ~~~~ Florida (hereinafter referMd to as /73& THIS AGREEMENT entered into this between City) and Tampa Bay Regional Planning Council (hereinafter referred to as TBRPC ) and provides as follows: WHEREAS, the City, in cooperation with TBRPC, has successfully applied for a FHAP Type II Grant from the u.s. Department of Housing & Urban Development to provide funds, inter alia, to the Type I funded FHAP (Fair Housing Assistant Program) agencies in this region for administration of the -FHAP Joint Agency Proposalw in Clearwater and the Tampa Bay Region. NOW THEREFORE, in consideration of the mutual covenants and agreements hereinafter stated the parties hereto agree as follows: I. The City shall provide to TBRPC solely from its FHAP Type II funds the maximum sum of One Hundred Seventy Thousand Seven Hundred and Forty Nine Dollars ($170,749.00) subject to and in accordance with the provisions of this agreement and in express reliance on the warranty of TBRPC that such funds will be used exclusively for the projects in the Tampa Bay Regional Area as specified in Assistance Award No. HA-14695, a copy of which is attached hereto, marked Exhibit A, and hereby incorporated herein by reference. TBRPC shall be responsible for the tasks represented by the items identified in the additional budget detail, attached hereto as Exhibit B, and incorporated herein by reference, as Part II, items D and E, and Part III. These items included, without limitation, the engagement, training ann supervision of auditors and project management. II. As funds are required by TBRPC for the purposes provided herein, TBRPC may present to the City written requests for the amounts of FHAP Type II funds required. Each such request shall contain the certification that all applicable federal, state and local laws, regulations and ordinances ~ave been complied with in committing said funds. Upon receiving any such requests in proper form, the City shall duly requisition from the United States Deparbment of Housing and Uroan Development the amount so requested and when such amount is credited to the Ci:.y's ac:=ount, the City sha:l pay that amount to TBRPC. III. All records pertaining to this project shall be retained by TBRPC for such period as required by applicable laws and regulations and may thereafter be nestroyed only with the prior writter. approval of the City. All records shall be available for audit by representatives of the Cit)' e.,d (l! hflr ~.; . ...;.",. r,,,..ponIlLbl. for "','1",p11tl!1l:P.I ;"rith a['plic'Ih1tt lh"'!II '."l~ .... -: ~ -3: ~ I (~/'r .- . 0'( ..' . ',_,r"-I'/ ". ~, (0/), ~, ~ I I IN WITNESS WHEREOF, the City and TBRPC have executed this agreement as of the date first above written. By: /1 Approved as to form and correctness: Attest: City C '--L'~ ^~~'--. . . City Clerk V Seal: TAMPA BAY REGIONAL PLANNING COUNCIL By~0 Chai At~.Q Secretary ~ 2 < . _I ,:.~SI)TANCE A~"4.RDAt,"L;,~_ I;n '2. TYPE OF A'tTION [j Cost Reimbursement o Cost Sharing o Fixed Price o Other 14_ ASSISTANCE AMOUNT Previous HUD Amount HUD Amount This Action Total HUD Amount Recipient Amount Total Instrument Amount 16. DESCRIPTION COOPERATIVE AGREEMENT FOR 'lYPE II (CLASS A) FAIR HOUSING ASSISTANCE PR OGRAM (FHAP) ~ 1 ASSISTANCE II\:STRU\4ENT D Cooper<Hlve Agreement 0 Grant 3. INSTRUMENT NUMBER 4. AMENDMENT NUMBER HA-14695 , 7. NAME AND ADDRESS OF RECIPIENT Clearwater Office of Community Relations P.O. Box 4748 Clearwater, Florida 33518 10. RECIPIENT PROJECT MANAGER Ron McElrath 11. ASSISTANCE ARRANGEMENT 12. PAYMENT METHOD [Jt Treasury Cleek Reimbursement o Advance Cleek o Letter of Credit $ -0- $192,494. $192,494. $ -0- 192 494. a Award o Amendment 6. EFFECTIVE DATE OF THIS ACTION tiG , . 6. CONTROL NUMBER'- 86-386 8. HUD ADMINISTERING OFFICE Office of Procurement and Contracts 451. 7th Stl1l8t, S.W. (Room~ 5256) Washington, D. C_ 20410 NAME OF ADMINISTRATOR TELEPHONE NUMBER Lucille Scruggs (202) 755-5585 9. HUD GOVERNMENT TECHNICAL REPRESENTATIVE GTR - Joan Britt (202)755-0455 RGTM - Augustus L. Clay (404) 242-5140 13. HUD PAYMENT OFFICE D.HUD - Office of Finance & Accounts 451 7th Street, S.W. (Room 3272) Washington, DC 20410 15. HUD ACCOUNTING AND APPROPRIATION DATA APPROPRIATION NUMBER RESERVATION NUMBER 865/60144 - FHAP(TIC) Amounts Previously Obligated Obli9ation By This Action Total Obligation FHEO-85-46 $ -0- $192,494. 192 494. This agreement consists of the following, Which is incorporated herein and made a part hereof: 1. COVER PAGE HUD-I044, (12/78) (1 page) 2. SCHEDULE OF ARTICLES 3. STATEMENT OF WORK :...\J 6 - 4. GENERAL PROVISIONS FOR GRANTS AND COOPERATIVE AGREEMENTS ~otwithstandiIlf any provisions of this agreement to the contrary, in the event of a conflict among any of the documents pertaining to the duties and responsibi1ites of the parties, the Schedule will take precedence over the General Provisions. ORDER OF PROCEDENCE: 17. 19 18. 0 Recipient it not l'1lQuired to sign this document 20. HUD (By) r----; / #~ ' 7-~~ ///~/;:/--L( NAME: AND TITLE Vit.t Vollero Contracting Oft1cer DATE lW ! ; :xx:: 'l~ HUo..104-4112,78/ I I SCHEDULE INDEX OF ARTICLES ARTICLE I - SCOPE OF WORK ARTICLE II - PERIOD OF PERFORMANCE ARTICLE III - PROPOSED ADDITIONAL EFFORT ARTICLE IV - CONSIDERATION AND PAYMENT ART! CLE V - CONDUCT OF WORK ARTICLE VI - RESPONSIBILITIES OF THE REGIONAL GOVERNMENT TECHNICAL MONITOR (RGTH) ARTICLE VII - INSPECTION AND ACCEPTANCE ARTICLE VIII - CONSULTANTS ARTICLE IX - PUBLICATION AND NEWS RELEASE ARTICLE X -COLLECTION OF DATA ARTICLE XI - REVIEW OF OFFICIAL PRODUCTS OF WORK ARTICLE XII - KEY PERSONNEL ARTICLE XIII - BUDGET I I ARTICLE I - SCOPE OF WORK The Recipient shall furnish the necessary personnel, materials. services. facilities. and otherwise do all things necessary for or incident to the per- formance of the work set forth in the Statement of Work, Exhibit A. Recipient's application and revisions pursuant to negotiation are incorporated by reference. ARTICLE II - PERIOD OF PERFORMANCE A. The target date for completion of all effort under this instrument is twenty-four months after date of award. (See Block 5 of HUD 1044 Cover Sheet. B. The recipient shall advise the Cooperative Agreement Officer (CAD) as early as possible but in no event later than the target date if an extension of thirty days or more will be required to complete the effort. C. No effort will be authorized nor costs reimbursed subsequent to twenty-five months after the effective date of award unless an extension is approved by the CAD. ARTICLE III - PROPOSED ADDITIONAL EFFORT A. If the Recipient proposes to expand the effort under this instrument, a cost and technical proposal signed by an official with authority to bind the Recipient, shall be submitted to the CAD at least 60 days in advance of the target date of completion. This requirement also applies to the Recipient's proposal to use funds unexpended under this effort to expand the original effort. B. Any proposal for additional effort under this instrument which is received after the target date for completion will be disapproved. ARTICLE IV - CONSIDERATION AND PAYMENT A. The Recipient shall be reimbursed for costs incurred in the performance of work hereunder in an amount not-to-exceed $192,494.00. In the event costs associated with the performance of the Statement of Work should exceed this amount, 100% of such excess shall be borne by the recipient. B. A copy of each Public Voucher shall show the total cost incurred for the period for which the voucher or invoice is submitted, the cumulative total costs incurred through the billing period supported by a detailed breakdO\o1O of the cas ts claimed. C. Tne Recipient shall submit an origianl and five (5) copies of each voucher showi. ng the elements of cost for the billing period and for the cumulative costs to date. All vouchers shall be submitted as follows except for the final voucher which shall be submitted in all copies to the Cooperative Agreement Officer. I I Interim Public Voucher Attention Of Address Shown on Cover Sheet Original & two copies One copy One copy One copy Voucher Examiner Agreement Administrator GTR G'l'H Block Block Block Block 13 8 9(a) 9(b) Each voucher shall clearly set forth the instrument number shown in Block 3 and the appropriation number in Block 15 and shall show the address to which te check is to be mailed. Request for reimbursement shall be submitted on a Standard Form (270), showing a breakdown of elements of cost along with backup data. Copies of this form is avail- able upon request throgh contacting the administrator. shown in Block 8 of the cover page. Vouchers should not be submitted more frequently than monthly. ARTICLE V - CONDUCT OF WORK A. During the effective period of this agreement, the Regional Government Technical Monitor identified in Block 9(b) of the cover page, shall be responsible for monitoring the technical effort of the Recipient, unless notified to the contrary in writing by the Cooperative Agreement Officer (CAO). B. Only the Cooperative Agreement Officer may authorize deviations from the terms and conditions of this instrument, including deviations from requirements of the Statement of Work. In the event the Recipient does deviate without the written approval of the CAO, such deviation shall be at the risk of, and any costs related thereto, shall be borne by the Recipient. ARTICLE VI - RESPONSIBILITIES OF THE RG'l'H A. The Regional Director for the Office of Fair Housing and Equal Opportunity of HUn, where the Recipient Is located, shall be the Government Technical Monitor on this agreement. The name and address of the RGTM is as follows: E. Each Director will be responsible for performance of the following functons, which include but are not limited to: 1) Monitoring the technical aspects and requirements of Cooperative Agreements, e.g., the Statement of Work. recipient performance and the technical acceptability of the product or services; ~ I I 2) Reviewing technical reports of progress in order to detect omissions and deviations from the Statement of Work or General Cooperative Agreement Provisions; 3) Notifying the Agreement Officer in writing if progress reports and technical reports submitted are to be accepted or rejected and state basis for rejection; 4) Notifying the Agreement Officer in writing in case of unsatisfactory performance and noncompliance with the terms and conditions of the Cooperative Agreement and recommend appropriate remedial actions; 5) Notifying the recipient that any recipient proposed changes in the Scope of Work must be submitted in writing to the Agreement Officer. The GTH will be required to review the proposed change and advised the Agreement Officer of his recommendations on the proposed change; 6) Recommending in writing to the Agreement Officer whenever the State- ment of Work. period of performance. or other technical provisions of the Cooperative Agreement. including acceptance and delivery of pro- ducts or services. may have to be changed, modified or amended, which can only be authorized by the Agreement Officer through modification of the Cooperative Agreement; 7) Issuing oral or written instructions to the recipeint solely to pro- vide clarification and interpretive guidance with respect to the technical aspects of the Cooperative Agreement; 8) Making site visits. when appropriate. to the project or facility to ~e~~: a. Actual performance versus scheduled and reported performance; b. Change in technical performance which may affect financial status, personnel, period of performance, etc.; c. Key staff assigned to implement project to validate performance of work under the Cooperative Agreement; and d. Compliance with special terms and conditions imposed with an award in order to identify potential problem areas; 9) Inspecting and accepting product deliverables, except for the final product, which shall be inspected and accepted by the GTR, with the concurrence of the RGTH; and " I I 10) Assigning, but not redelegatlng, to subordinate employees, any of the above duties and funcltions. ARTICLE VII - INSPECTION AND ACCEPTANCE The inspection and acceptance of all reports and/or products hereunder shall be performed by the Regional Government Technical Monitor, except for the final report which shall be performed by the GTR. ARTICLE VIII - CONSULTANTS As required by BUD's Appropriation Act (for example Section 408 of P.L. 96-103 for 1980), salary payments to consultants under this instrument shall not exceed the equivalent of the maximum daily rate paid for GS-18 Federal Employees (currently $253). ARTICLE IX - PUBLICATIONS AND NEWS RELEASES 1. Definition. For the purpose of this clause, .publication- includes: (a) any document containing information for public consumption, or (b) The act of, or any act which may result in, disclosing informa- tion to the public. 2. General The results of the research and studies conducted under this instrument are planned to be made available to the public through dedication, as- signment by the Government, or such other means as the Secretary of Housing and Urban Development shall determine. 3. Government Ownership of Official Products of Work All interim and final reports and information, data, analyses, special methodology, findings, and their related documents and work products, in- cluding reports, worksheets, survey instruments, computer tapes, and other physical materials and products produced directly under the Scope of Work of this instrument shall be Official Products of York, owned by the Government and held for the benefit of the public. 4. Products of Cost-Sharing Agreements 4.1 Special Products - When there is cost-sharing of the Estimated Total Cost of the instrument, and specific tasks and/or products are formally designated as funded by the Government share, and other specific tasks and/or products are designated as funded by the Recipient and/or other non-government sources, then only the government-funded products shall be designated .Official Products of Work-. The remaining products shall be designated -Special Products- and shall be exempt from the provision of sub- paragraph 3 above. '. I I 4.2 When there is cost-sharing and each Party shares funding of the undivided whole of the instrument, then all products of such instrument shall be subject to 3 above. 5. Publication of Official Products of Work Official Products of Work, quotations therefrom, paraphrasing or dis- closures of interim findings may not be published without the approval of the GTR for a period of sixty days after acceptance of the product of tbe GTR. Thereafter, tbe Recipient shall be free to publish without BUD approval. Approval and acceptance procedures sball be in accordance with the provisions of the Article entitled -Review of Official Product of Work in Research Activities.- 6. Independent Products It is anticipated that the research and work conducted under this instru- ment may also result in independent scholarly pages, lectures, articles, reports, monographs, or other materials relating to the subject of findings of the work of this instrument, but not as part of its direct Statement of Work. Such Independent products are encouraged by the government, as is tbeir publication, subject only to the restrictions on disclosure of interi. findings, or quotations or paraphrasing of any part of an Official Product of Work prior to GTR review and approval of such official Products 7. Acknowledgement and Disclaimer All Official Reports of Work, or any part thereof, and Independent Products and Special Products arising out of this instrument, when published by Recipient or other participants in the work shall contain the following acknowledgement and disclaimer: -The work that provided the basis for this publication was supported by funding under a Cooperative Agreement with the U. S. Department of Bousing and Urban Development. The substance and findings of that work are dedicated to the public. The author and publisher are solely responsible for the accuracy of the statements and interpretations contained in this publication and such interpretations do not necessarily reflect the views of the Government.- '. I I The ackn~ledgement and disclaimer sball be placed on tbe title page or an immediately adjacent place at tbe beginning of the publica ton. 8. Notice of News Releases and Public Announcements TWo copies of all press releases, formal announcements, and other planned, written issuances containing general news or information concerning this instrument that may be made by the Recipient or its staff, or any subcon- tractor or other person or organization participating in the work of this instrument shall be provided to the GTR at the earliest possible time. News releases and other public announcements may not disclose any interim findings or quote or paraphase any part of any officials product of work without complying with paragrapb 5 above. 9. FlD\J-DCJlJn Provision The Recipient shall include provisions to carry out the purposes of this Publication Clause in all contracts of employment with persons who perform any part of the work under this instrument and with all subcontractors and other persons or organizations participating in any part of the work under this instrument. There sball be provisions for a further fl~-d~n of such requirements to each subtier of employees and subcontractors to tbe extent feasible. ARTICLE X - COLLECTION OF DATA Collection of data relevant to tbe activities under this agreement is an activity, the costs of wbicb are allowable costs under this agreement. Such activities need not be expressly set fortb in tbe description of agreement work to be eligible as allowable costs. Collection of data from ten or more respondents and sponsored by BUD sba1l be subject to the Federal Reports Act (44 U.S.C. 3509) and to the review of data collection instruments, under the provisions of OHa Circular A-40. However, tbe collection of data is deemed to be sponsored by BUD only under the following conditions: (1) The recipient of the funding represents to respondents that the information is being collected for or in association with HOD (however, this condition is not intended to preclude mention of Federal support in response to an inquiry, or an acknowledgement of Federal Assistance in any publication or report or tbe data; or (2) The recipient uses the data collection activities to collect information that BUD has requested for the planning, operation, or evaluation of its program; or ~ r I I (3) The terms and conditions of this agreement provide for approval by BUD of the survey design questionnaire content, or data collection procedures; or (4) The terms and conditions of this agreement provide for either submission to BUD of the data for individual respondents or the preparation and submission of tabulations requested by BUD. Collection of data under circumstances other than the four conditions given above is not a sponsored collection and is not subject to the Federal Report Act or OMB Circular A-40. ARTICLE XI - REVIEW OF OFFICIAL PRODUCTS OF WORK 1. Definition - For the purpose of this clause, .Official Products of Work. include: (a) all interim and final reports (b) survey instruments required by Statement of Work (c) other physical materials and products produced directly under the Statement of Work of this instrument. 2. General (A) Tbe GTR shall have the sole responsibility for Government review, correction, and acceptance of the Official Products of Work of this instrument. Such review(s) shall be carried out promptly by the GTR, so as not to impede the work of the Recepient. For the Products of Work shall be deemed accepted as submitted, if the GTR shall not have issued written comments and/or required corrections within thirty(30) days from date of GTR's receipt of such product from Recepient. (B) The Recepient shall carry out the required corrections, if any, provided by the GTR and shall promptly return a revised copy of the product to the GTR. eC) The GTR's review, correction, and acceptance of Official Products of Work shall be limited: (1) to corrections of omissions or errors of fact, methodology, or analysis, (2) to deletion of irrelevant materials, and (3) to improvements in style readability. CD) In the review and acceptance of Official Products of Work, the GTR may not require any change in the Receplent's stated views, opinions, or conclusions. (E) Should there by any disagreement between the Recepient and the GTR as to any correction, or the methodology or analyses on which any conclusion is based, the GTR may require the Receplent to insert a Government dissent(s) in the appropriate place(s) '- I I to the Government. The inclusion of such dissent(s) in an Official Product of Work. otherwise found acceptable by GTR. and the return to the GTR of a revised copy containing the dissent(s), shall satisfy the requirements for acceptance of the Official Product of Work under this Article. (F) Such dissent(s) shall not apply to any independent publication by the Recepient of Independent Products which may arise from the work or findings of this instrument. ARTICLE XII - KEY PERSONNEL The personnel specified below are considered to be essential to the work being performed hereunder: Ron McElrath, Clearwater George Davis, Tampa Jeanette Fenton, Hillsborough Robert Saunders, Hillsborough Jim Yates, St. Petersburg Prior to diverting any of the specified individuals to other work, the Recepient shall notify the CAD reasonably in advance and shall submit justification (including proposed substitutions) in sufficient detail to permit evaluation of the impact on the work effort. No diversion shall be made by the Recepient without the written consent of the CAO. ARTICLE XIII - BUDGET (This Article is in addition to the clause entitled .Budget Revision Procedures. in the General Provisions attached) The Recepient shall incur costs in conformance with the budget shown below or otherwise attached. If the Federal share of the costs of this agreement exceeds $100,000.00, the Recepient shall not transfer funds among cost categories without written consent of the Cooperative Agreement Officer when the cumulative amount of such transfers exceeds or is expected to exceed five (5) percent of the total. Categories Budget Personnel Fringe Benefits Travel Equipment/Equip. Rental Supplies Other Contractual Total $ 16,152. 3.213. 980. 800. 600. 33,500. 137,249. $192,494. '':.. '."'The Rec.lpier.t or tlls Cooperative Agreementdqr>;.sl:o carry out all acti vi ties and develop all work related products de cD.bed in its proposa I dated March 15, 1985, and amended on February for a Type II, Class A project. The City of Clearwater, Florida proposes to identify patterns of discriminatory housing practices and change the scope, enforcement and awareness of laws and sanctions, in order to achieve fair housing rights and practices in the neighborhood and communities which comprise the Tampa Bay Region. The Recipient will concentrate their efforts in these three program areas: Fair housing law and policy evaluation, enforcement, and education. Deli verables Due Date Deli very Point -- July 1, 1987 RGTM January 1, 1988 RGTM November 1, 1986 RGTM July 1, 1986 RGTM March 1, 1987 RGTM February 1 , 1988 RGTM Copy of draft Model policy Copy of Final Model policy Copy of summary matrix of barriers to fair housing Copy of agenda and training package used to train testers Copy of draft results of tests Copy of final tests results Copy of PSAs, newsletters, feature stories, posters, brochures, etc., on all fair housing activities December 1, 1986 RGTM Copy of agenda for the educational seminars February 1, 1987 RGTM Copy of materials used in the seminars February 1, 1987 RGTM Results of pre/post training tests June 1986 & June 1987 RGTM Copy of the edited version of the one-hour video tape September 1, 1986 RGTM List of monthly presentations by the Speaker Bureau March 1987 & March 1988 RGTM Key Personnel Ron McElrath, Clearwater George Davis, Tampa Jeanette Fenton, Hillsborough Robert Saunders, Hillsborough Jim Yates, St. Petersburg ,. . I I If it} '\...1-...,1 t ~ 3 U 1987 OMB No. 2535-0084 GENERAL PROVISIONS FOR GRANTS AND COOPERATIVE AGREEMENTS 1. DEFINI'rrONS 2. AMENDMENTS 3. CASH DEPOSITORIES 4. RETENTION AND CUSTODIAL REQUIREMENTS FOR RECORDS 5. ALLOWABLE COST 6. PROGRAM INCOME 7. FINANCIAL MANAGEMENT SYSTEMS 8. FINANCIAL REPORTING REQUIREMENTS 9. MONITORING AND REPORTING PROGRAM PERFORMANCE 10. BUDGET REVISION PROCEDURES 11. CLOSEOUT PROCEDURES 12. SUSPENSION AND TERMINATION PROCEDURES 13. PROPERTY MANAGEMENT STANDARDS 14. PROCUREMENT STANDARDS 15. DISPUTES 16. OTHER ADMINISTRATIVE PROVISIONS Applicable if checked: /~ The clause required by OMB Circular A-124 entitled "Patent Rights (Small Business Firms and Nonprofit Organizations) (March 1982)" replaces General Provision 13f(1) and is hereby incorporated by reference. The text of the clause may be obtained from the Grant/ Cooperative Agreement Officer. I I - 2 - (1) If any litigation, claim or audit is started before the expiration of the 3-year period, the records shall be retained until all litigations, claims, or audit findings involving the records have been resolved. (2) Records for nonexpendable property, if any, acquired with Federal funds shall be retained for three years after its final disposition. (3) When records are transferred to or maintained by HUD, the 3-year retention requirement is not applicable to the recipient. b. The retention period starts from the date of the submission of the final expenditure report. c. The recipient must be authorized by the G/CAO if the recipient desires to substitute microfilm copies in lieu of original records. d. The recipient shall transfer certain records to HUD when HUD determines that the records posses long- term retention value. However, in order to avoid dQplicate record-keeping, HUD may make arrangements with the recipient to retain any records that are continuously needed for joint use. e. The Secretary of HUD and the Comptroller General of the United States, or any of their duly authorized representatives, shall have access to any pertinent books, documents, papers, and records of the recipient, and its subcontractors, to make audits, examinations, excerpts and transcripts. 5. Allowable Cost For the performance of the work under this instrument, HUD shall pay the recipient: Costs incurred (hereafter referred to as "allowable costs") which are determined by the G/CAO to be allowable, allocable and reasonable in accordance with the following cost principles: a. For colleges and universities: OMB Circular A-21*. b. For State" and local Governments: OMB Circular A-87*. c. For other nonprofit organizations: OMB Circular A-122*. I I GENERAL PROVISIONS FOR GRANTS AND COOPERATIVE AGREEMENTS 1 . Definitions a. The term "Recipient" refers to the grantee if the legal instrument to which these General Provisions apply is a grant and to the cooperating party if they apply to a cooperative agreement. b. The term "Instrument" refers to either a grant or a cooperative agreement. c. The term "Grant/Cooperative Agreement Officer" (G/CAO) refers to the individual delegated the authority by HUD to execute and/or administer this instrument, i.e., a Grant Officer in the case of a grant and Cooperative Agreement Officer in the case of a cooperative agreement. 2. Amendments This instrument may be amended at any time by a written modification. Amendments which reflect the rights and obligations of either party shall be executed by both the Government and the recipient. Administrative amendments such as changes in appropriation data may be issued unilaterally by the G/CAO. 3. Cash Depositories a. Any money advanced to the recipient under the terms of this instrument must be deposited in a bank with Federal Deposit Insurance Corporation (FDIC) insurance coverage. The balance exceeding the FDIC coverage must be collaterally secured. b. Consistent with the national goal of expanding the opportunities for minority business enterprises, the recipient and its subrecipients are encouraged to use minority banks (a bank which is owned at least 50 percent by minority group members). A list of minority owned banks can be obtained from the Minority Business Development Agency, Department of Commerce, Washington, D. C. 20230. 4. Retention and Custodial Requirements for Records a. Financial records, supporting documents, statistical records and all other records pertinent to this instrument shall be retained for a period of three years, with the following exceptions: I - 3 - I d. For all other recipients: Federal Acquisition Regulation*, Subpart 31.2. * The revised version of these documents in effect on the date of award shall govern. 6. Program Income a. Program income represents gross income earned by the recipient from Federally supported activities. Such earnings may include, but will not be limited to, income from service fees, and royalties on patents and copyrights. b. Program income does not include interest earned on advances. Interest earned on advances under this instrument shall be remitted to HUD, except for interest earned on advances to recipients who are States or instrumentalities of a State as provided by the Intergovernmental Cooperation Act of 1968 (PL 90-577) or tribal organizations pursuant to Section 102, 103 or 104 of the Indian Self-Determina- tion Act (PL 93-638). c. The recipient shall account for all program income which results from this instrument. d. Proceeds from the sale of real or personal property either provided by the Federal government or purchased in 'whole or in part with Federal fl.1.nds shall be handled in accordance with General Provision 13 of this instrument entitled "Property Management Standards." e. Unless provided otherwise in this instrument, the recipient shall have no obligation to the Federal government with respect to royalties received as a result of copyrights or patents produced under this instrument. (See General Provision 13f). f. All other program income earned during the project period shall be retained by the recipient and, in accordance with this instrument, shall be: (1) Added to funds committed under this instrument to further eligible program objectives; (2) Used to finance the non-Federal share of the project when approved by the GjCAO; or, I I - 4 - (3) Deducted from the total project costs in determining the net costs on which the Federal share of costs will be based. 7. Financial Management Systems The recipient shall maintain a financial management system that provides for the following: a. Accurate, current and complete disclosures of the financial results of this instrument in accordance with General Provision 8 entitled "Financial Reporting Requirements." b. Records that identify adequately the source and application of funds for Federally supported activities. These records shall contain information pertaining to Federal awards, authorizations, obligations, unobligated balances, assets, outlays, and incomes. c. Effective control over and accountability fo~ all funds, property, and other assets. d. A comparison of actual outlays with budgeted amounts and the relationship of specific performance and costs incurred. e. Procedures to minimize the time elapsing between the transfer of funds to the recipient and disbursement by the recipient when advances or letters-of-credits are used. f. Procedures for determining reasonableness, allowability, and allocability of costs in accordance with the provisions of the applicable Federal cost principles and the terms of this instrument. g. Accounting records that are supported by source documentation. h. Examinations in the form of audits or internal audits. Such audits shall be made by qualified individuals who are sufficiently independent of those who authorize the expenditure of Federal funds to produce unbiased opinions, conqlusions, or judgments. They shall meet the independen~~e criteria set forth in Chapter 3, Part 3, of the Q~S. General Accounting Office publication, "3tandardl~ for Audit of Govern- ment Organizations, Programs,iActivities, and Functions." These examinatior!s are intended to I I 'i I ... I I - 5 - ascertain the effectiveness of the financial management systems and internal procedures that have been established to meet the terms and conditions of this instrument. It is not intended that each Federal instrument awarded to the recipient be separately examined. Generally, examinations shall be conducted on an organization-wide basis to test the fiscal inteBrity of financial transactions, as well as compliance with the terms and conditions of Federal instruments. Such tests shall include an appropriate sampling of Federal instruments. Examinations shall be conducted with reasonable frequency, on a continuing basis, or at scheduled intervals, usually annually, but not less frequently than every two years. The frequency of these examinations shall depend upon the nature, size, and the complexity of the activity. The examinations do not relieve Federal agencies of their audit responsibilities but may affect the frequency and scope of such audits. The recipient shall make the results of such audits available to the Government upon request. i. A systematic method to assure timely and appropriate resolution of audit findings and recommendations. The recipient shall require its subrecipients to adopt the standards above except for the requirements in paragraph e regarding the use of the,letter-of-credit method and that part of paragraph a regarding reporting forms and frequencies prescribed in General Provision 8. 8. Financial Reporting Requirements a. Recipients shall submit an original and one copy of a Financial Status Report (Standard Form 269) 30 days after the completion of each quarter of the project. The original is submitted to the G/CAO and the copy is submitted to the GTR. The final Financial Status Report shall be due 90 days after project completion. All reports should be prepared on an accrual basis; however, if the recipient's accounting records are not normally kept on the accrual basis, the recipient shall not be required to convert its accounting system, but shall develop such information through best estimates' based on an analysis of the documentation on hand. j - 6 - I b. In the event this instrument provides for advance payments to the recipient: the recipient shall submit an original and one copy of a Federal Cash Transactions Report (Standard Form 272) 15 working days following the end of each quarter. c. The recipient shall use the Request for Advance or'Reimbursement (Standard Form 270) when a letter- of-credit is not authorized by this instrument. An original and two copies shall be submitted monthly of the office designated elsewhere in this instrument. 9. Monitoring and Reporting Program Performance a. Recipients shall constantly monitor their performance under this instrument to assure that time schedules are being met, projected work units by time periods are being accomplished, and other performance goals are being achieved. This review shall be made for each program, function, or activity in accordance with the requirements set forth in the Schedule. b. Recipients shall submit to the GTR a performance report (technical report) for this instrument that briefly presents the following information for each program, function, or activity involved: (1) A comparison of actual accomplishments with the goals established for the period, the findings of the investigator, or both. If the output of the programs or projects can be readily quantified, such quantitative data should be related to cost data for computa- tion of unit costs. (2) Reasons why established goals were not met. (3) Other pertinent information as may be specified in the Schedule, including, when appropriate, analysis and explanation of cost overruns or high unit costs. c. The recipient shall submit the performance report quarterly with the Financial Status Report (or Request for Advance or Reimbursement if used in lieu of the Financial Status. Report) required by Clause 8 entitled "Financial Reporting Requirements." . J _, " I - 7 - I d. Between the required performance reporting dates, events may occur that have significant impact upon the project or program. In such instances, the recipient shall inform the G/CAO and GTR in writing, as soon as the following types of conditions become known: (1) Problems, delays, or adverse conditions that will materially affect the ability to attain program objectives, prevent the meeting of time schedules and goals, or preclude the attainment of project work units by established time periods. This disclosure shall be accompanied by a statement of the action taken, or contemplated, and any Federal assistance needed to resolve the situation. (2) Favorable developments or events that enable time schedules to be met sooner than antici- pated or more work units to be produced than originally projected. e. If any performance review conducted by the recipient discloses the need for change in the budget estimates in accordance with the criteria established in the clause entitled "Budget Revision Procedures," the recipient shall submit a request for budget revision. 10. Budget Revision Procedures a. The budget is the approved financial plan for both the Federal and non-Federal shares to carry out the purpose of the instrument. This plan is the financial expression of the project or program as approved during the application and award process. It should be related to performance for program evaluation purposes whenever appropriate and required. b. Hun shall not be obligated to reimburse the recipient for outlays (costs) in excess of the Federally funded amount of the instrument unless and until the G/CAO executes an amendment to the instrument which increases the Federally funded amount. . The Federally funded amount is the amount obligated on the instrument which may be less than or equal to the budgeted Federal share of the instrument. ,... v. This paragraph c is applicable only if the recipient is a State, local, or Federally recognized Indian J I - 8 - tribal government (as defined by OMB Circular A-102). Recipients shall request prior approval promptly from the G/CAO when there is reason to believe that a revision will be necessary for any of the following reasons: (1) Changes in the scope or the objective of the project or program. (2) The need for additional Federal funding. (3) The revisions which pertain to the addition of items requiring approval in accordance with the provisions of OMB Circular A-87. (4) The recipient plans to transfer funds allotted for training allowances (direct payments to trainees) to other categories of expense. d. This paragraph d is applicable only if the recipient is not a State, local, or Federally recognized Indian triDaI government (as defined by OMB Circular A-102); (1) Recipients shall request prior approval promptly from the G/CAO when there is reason to believe that ~ revision will be necessary for any of the following reasons: (a) Changes in the scope of the objective of the project or programs. (b) The need for additional Federal funding. (c) The expenditures that require approval in accordance with applicable cost principles. (d) The recipient plans to transfer funds allotted for training allowances (direct payments to trainees) to other categories of expense. (2) None of the substantive programmatic work under this instrument may be subcontracted or trans- ferred without prior approval of the G/CAO. This provision does not apply to the purchase of supplies, material, equipment, or general support services. e. This paragraph e is applicable only if specifically required in the Schedule of this instrument. The - 9 - 1 I. recipient shall not transfer, without the written approval of the G/CAO, funds among cost categories when the cumulative amount of such transfers . exceeds or is expected to exceed five percent of the total budget as last approved by the G/CAO. The same criteria shall apply to the cumulative amount of transfers among programs, functions, and activities or "line items" when budgeted separately for an award. The Department shall permit no transfer that would cause any Federal appropriation, or part thereof, to be used for purposes other than those intended. f. Recipients shall notify the G/CAO promptly whenever the amount of Federal authorized funds is expected to exceed the needs of the recipient by more than $5000 or five percent of the Federal award, whichever is greater. g. When requesting approval for budget revIsIons, recipients shall use the budget forms that were used in the application unless another format is authorized by the G/CAO. h. Within 30 days from the date of receipt of the request for budget revisions, the G/CAO shall review the request and notify the recipient whether or not the budget revisions have been approved. If the revision is still under consideration at the end of 30 days, the G/CAO shall inform the recipient in writing as to when the recipient may expect the decision. 11. Closeout Procedures a. The following definitions shall apply: (1) Closeout - The closeout of this instrument is the process by which HUD determines that all applicable administrative actions and all required work of the instrument have been completed by the recipient and HUD. (2) Date of completion - The date on which all work under the instrument is completed or the date in the award document, or any supplement or amendment thereto (including termination notices subject to the clause entitled "Suspension and Termination Procedures"), on which Federal assistance ends. (3) Disallowed costs - Disallowed costs are those charges to the instrument that the G/CAO determines to be unallowable in accordance with the applicable Federal cost principle or other conditions contained in the instrument. t - 10 - I b. The parties shall close out this instrument in accordance with the following procedures: (1) Upon request, HUD shall make prompt payments to a recipient for allowable reimbursable costs under the instrument being closed out. (2) The recipient shall immediately refund any balance of unobligated (unencumbered) funds that HUD has advanced or paid and that is not authorized by HUD to be retained by the recipient for use in other instruments. (3) The recipient shall submit to G/CAO, within 90 days after completion of this instrument, all financial and other data required by the G/CAO to close out the instrument. The G/CAO may grant extensions when requested by the recipient. (4) The G/CAO shall make a settlement for any upward or downward adjustments to the Federal share of costs after these reports are received. (5) The recipient shall account for any property acquired with Federal.funds or received from the Government, in accordance with the provisions of the clause entitled "Property Management Standards." (6) In the event a final audit has not been performed prior to the closeout of the instrument, HUD shall retain the right to recover an appropriate amount after fully considering the recommenda- tions on disallowed costs resulting from the final audit. 12. Suspension and Termination Procedures a. The following definitions shall apply: (1) Termination - Cancellation of Federal assistance, in whole or in part, under the instrument at any time prior to the date of completion. (2) Suspension - An action by the G/CAO that tem- porarily suspends Federal assistance under the instrument pending corrective action by the , - I - 11 - , recipient or pending a decision to terminate the instrument by RUD. b. When the recipient has failed to comply with the terms, conditions, or standards of the instrument, the G/CAO may, on reasonable notice to the recipient, suspend the instrument and withhold further payments, or prohibit the recipient from incurring additional obligations of funds, pending corrective action by the recipient, or a decision to terminate in accordance with paragraph c. The G/CAO shall allow all necessary and proper costs that the recipient could not reasonably avoid during the period of suspension provided that they meet the provisions of the applicable Federal cost principles. c. This instrument may be terminated for cause or convenience. (1) Termination for cause - The G/CAO may terminate this instrument in whole or in part at any time before the date of completion, whenever it is determined that the recipient has failed to comply with the conditions of the instrument. The G/CAO shall promptly notify the recipient in writing of the determination and the reasons for the termination, together with the effective date. Payments made to the recipient or recoveries by HUD in the event this instrument is terminated for cause shall be in accordance with the legal rights and liabilities of the parties. (2) Termination for convenience - This instrument may be terminated in whole or in part when both parties agree that the continuation of the project would not produce beneficial results comme~surate with the further expenditures of funds. The two parties shall agree upon the termination conditions, including the effective date and, in the case of partial terminations, the portion to be terminated. The recipient shall not incur new obligations for the terminated portion after the effective date, and shall cancel as many outstanding obligations as possible. The G/CAO shall allow full credit to the recipient for the Federal share of the noncancellable obligations properly incurred by the recipient prior to termination. , I - 12 - (3) The parties shall promptly settle the terminated instrument in accordance with the applicable requirements of the clause entitled "Closeout Procedures." In addition, the parties shall execute a written amendment upon settlement, which sets forth the terms and conditions of the settlement agreement. 13. Property Management Standards a. The following definitions apply for the purpose of this clause. (1) Real property - Real property means land, including land improvements, structures and appurtenances thereto, but excluding movable machinery and equipment. (2) Personal property - Personal property of any kind except real property. It may be tangible - having physical existence, or intangible - having no physical existence, such as patents, inventions and copyrights. (3) Nonexpendable personal property - Tangible personal property having a useful life of more than one year and an acquisition cost of $300 or more per unit. Recipients subject to Cost Accounting Standards Board regulations may use the CASB standard of $500 per unit and useful life of two years. A recipient may use its own definition of nonexpendable personal property provided that the definition would at least include all tangible personal property as defined above. (4) Expendable personal property - All tangible personal property other than nonexpendable property. (5) Excess property - Property under the control of any Fedefal agency that, as determined by the head thereof, is no longer required for its needs or the discharge of its responsibilities. , ~ '. I I - 13 - (6) Acquisition cost of purchased nonexpendable personal property - Acquisition cost of an item of purchased nonexpendable personal property is the net invoice unit price of the property 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. (7) Exempt property - Tangible personal property acquired in whole or in part with Federal funds, and title to which is vested in the recipient without further obligation to the Federal Government except as provided in subparagraph d (1) below. Such unconditional vesting of title will be pursuant to any Federal legislation that provides HUD with adequate authority. b. Real property - If real property is acquired as a requirement of thIs instrument, the following shall apply: ( 1 ) (2) (3) 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. The recipient shall obtain approval by HUD for the use of real property in other 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 other federally sponsored projects, (i.e., grants or other agreements) or programs that have purposes consistent with those authorized for support by HUD. When the real property is no longer needed as provided in (1) and (2) above, the recipient shall requested disposition instructions from HUD or its'successor Federal sponsoring agency. I I - 14 - c. Federally-owned nonexpendable personal property - Title to federally-owned property remains vested in the Federal Government. The recipient shall submit an annual inventory to HUD, listing federally-owned property in their custody~ Upon completion of the effort covered by the instrument or when the property is no longer needed, the recipient shall report the property to HUD for further agency utilization. d. Other nonexpendable property - When other nonexpendable tangible personal property is acquired by a recipient with project funds, title shall vest in the recipient subject to the following conditions: (1) Right to transfer title - For items of nonex- pendable personal property having a unit acquisition cost of $1,000 or more, HUD reserves the right to transfer the title to the Federal Government or a third party. (2) Use of other tangible nonexpendable property for which the recipient has title. (a) The recipient shall use the property 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. When no longer needed for the original project or program, the recipient shall use the property in connection with its other federally sponsored activities if authorized by HUD. (b) Shared use - During the time that nonexempt nonexpendable personal property is held for Qse 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 that project. First preference for such other Qse shall be given to other projects or programs sponsored by HUDj second preference shall be given to projects or programs sponsored by other Federal agencies. If the property is owned by the Federal Government, use on other activities not sponsored by the Federal Government shall be permissible if authorized by HUD. ...- .. I I ~ - 15 - (3) Disposition of other nonexpendable property - When the recipient no longer needs the property as pro- vided in d (2) above, the property may be used for other activities. in accordance with the following standards. (a) Nonexpendable property with a unit acquisition cost of less than $1 ,000 - The recipient may use the property for other activities without reimbursement to HUD or sell the property and retain the proceeds. (b) Nonexpendable personal property with a unit acquisition cost of $1,000 or more - The recipient may retain the property for other uses provided that compensation is made to HUD. 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 property. If the recipient has no need for the property and. the property has further use value, the recipient shall request disposition insttuctions from RUD. (4) Property management standards for nonexpendable property - The recipient's property management standards for nonexpendable personal property shall include the following procedural requirements: (a) Property records shall be maintained accurately and shall include: (1) A description of the property. (2) Manufacturer's serial number, model number, Federal stock number, national stock number, or other identification number. (3) Source of the property, including grant or other agreement number. (4) Whether title vests in the recipient or the Federal Government. (5) Acquisition date (or date received, if the property was furnished by the Federal Government) and cost. , I - 16 - (6) Percentage (at the end of the budget year) of Federal participation in the cost of the project or p~ogram for which the property was acquired. (Not applicable to property furnished by the Federal Government). (7) Location, use, and condition of the property and the date the information was reported. (8) Unit acquisition cost. (9) Ultimate disposition data, including date of disposal and sales price or the method used to determine current fair market value where a recipient compen- sates the Federal sponsoring agency for its share. . (b) Property owned by the Federal Government must be marked to indicate Federal ownership. (c) A physical inventory of property shall be taken and the results reconciled with the property records at least once every two years. Any differences between quantities determined by the physical inspection and those shown in the accounting rBcord~ shall be investigated to determine the causes of the difference. The recipient shall, in connection with the inventory, verify the existence, current utiliiation, and continued need for the property. (d) A control system shall be in effect to insure adequate safegtiarda to prevent loss, damage, or theft of the property. Any loss, damage, or theft of nonexpendable property shall be investigated and fully documented. If the property was owned by the Federal Government, the recipient shall promptly notify HUD. (e) Adequate maintenance procedures shall be implemented to keep the property in good condition. (f) Where the recipient is authorized or required to sell the property, proper sales , .;/.- I I - 17 - procedures shall be established which would provide for competition to the extent practicable and result in the highest possible .return. e. Expendable personal property - Title to expendable personal property shall vest in the recipient upon acquisition. If there is a residual inventory of such property exceeding $1 ,000 in total aggregate fair market value, upon termination or completion of the instrument, and the property is not needed for any other federally sponsored project or programs, the recipient shall retain the property for use on nonfederally sponsored activities, or sell it. The recipient must in either case compensate HUD for its share. The amount of compensation shall be computed in the same manner as nonexpendable personal property. f. . Intangible property (1) Inventions and patents - If any program produces patentable items, patent rights, processes, or inventions, in the course of work sponsored by the Federal Government, such fact shall be promptly and fully reported to HUD. Unless there is a prior agreement between the recipient and HUD on disposition of such items, HUD shall determine whether protection on the invention or discovery shall be sought. HUD will also determine how the rights in the in:vention or discovery, including ~ights under any patent issued thereon, shall be allocated and administered in order to protect the public interest consistent with current Government Patent Policy. [OMB Circular A-124 requires that each grant or cooperative agreement awarded to a small bQsiness firm or nonprofit organization which has as a purpose the performance of experimental, developmental or research work, shall contain the clause entitled "PATENT RIGHTS (Small Business Firms and Nonprofit Organizations) (fJIarch 1982)." That clause shall replace paragraph f(1) if applicable to this instrument.] (2) Copyrights - Except as otherwise provided in the terms and conditions of this instrument, the author or the recipient organization is free to copyright any books, publications, or other copyrightable materials developed in the course of or under the instrument, but HUD hereby ,:Lit'd i.n , I - 18 - reserves a royalty-free, nonexclusive and irrevocable right to reproduce, publish or otherwise use and to authorize others to use the work for Gove~nment purposes. 14. Procurement Standards a. All recipients shall adhere to the following standards: (1) The recipient shall maintain a code or standards of conduct that shall govern the performance of its officers, employees or agents engaged in the award and administration of contracts using Federal funds. No employee, officer or agent shall participate in the selection, award or administration of a contract in which Federal funds are used, where, to his/her knowledge, he/she or hls/her immediate family, partners, or organization in which he/she or his/her immediate family or partner has a financial interest or wi th. whom he/she is negotiating or has any arrangement concerning prospective employment.. Th~ recipients' officers, employees or agents shal~neither solicit nor accept gratuities, favors or anything of monetary value from contractors or potential contractors. To the extent permissible by State and local laws, rules, and regulations, such standards shall provide for disciplinary actions to be applied for violations of such standards by the recipients' officers, employees or agents.. (2) All procurement transactions shall be conducted in a manner to provide, to .the maximum extent practical, open and free competition. The recipient should be alert to organizational conflicts of interest or noncompetitive practices among contractors that may restrict or eliminate competition or otherwise restrain trade. In other 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 should be excluded from competing for such procurements. Awards shall be made to the bidder/offeror whose bid/offer is responsive to the solicitation and is most advantageous to the recipient, price and other factors considered. Solicitations shall clearly set forth all requirements that the bidder/offeror must fulfill in order for his/her bid/offer to be evaluated by the recipient. Any and all bids/offers may be rejected when it is in the recipient's interest to do so. '.I "'_ I I - 19 - (3) All recipients shall establish procurement procedures that provide for, at a minimum, the following procedural requirements: (a) Proposed procurement actions shall follow a procedure to assure the avoidance of purchasing unnecessary or duplicative items. Where appropriate, an analysis shall be made of lease and purchase alternatives to determine which would be the most economical, practical procurement. (b) Solicitations for goods and services shall be based upon a clear and accurate descrip- tion of the technical requirements for the material, product, or service to be procured. Such a description shall not, in competitive procurements, contain features which unduly restrict competition. "Brand name or equal" descriptions may be used as a means to define the performance or other salient requirements of a procurement, and when so used the specific features of the named brand which must be met by biddersjofferors shall be clearly specified. (c) Positive efforts shall be made by the recipient to utilize small business and minority-owned business sources of supplies and services. Such efforts should allow these sources the maximum feasible opportunity to compete for contracts utilizing Federal funds. (d) The type of procuring instruments used, e.g., fixed-price contracts, cost- reimbursable contracts, purchase orders, incentive contracts, shall be determined by the recipient but must be appropriate for the particular procurement and for promoting the best interest of the program involved. The "cost-plus-a-percentage-of-cost" method of contracting shall not be used. (e) Contracts shall be made only with responsible contractors who possess the potential . ability to perform successfully under the terms and conditions of a proposed procure- ment. Consideration shall be given to such matters as contractor integrity, record of past performance, financial and technical I I - 20 - resources, or accessibility to other necessary resources. (f) All proposed sole source contracts, or where only one bid or proposal is received in which the aggregate expenditure is expected to exceed $5,000, shall be subject to prior approval of the GjCAO. (g) Some form of price or cost analysis should be made 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. (h) Procurement records and files for purchases in excess of $10,000 shall include the followi ng: (1) Basis for contractor selection; (2) Justification for lack of competition when competitive bids or offers are not obtained; (3) Basis for award cost or price. (i) A system for contract administration shall be maintained to ensure contractor conformance with terms, conditions and specifications of the contract, and to ensure adequate and timely followup of all purchases. b. If the recipient of this instrument is a State or local government it shall adhere to the following standards: (1) Formal advertising, with adequate purchase description, sealed bids, and public openings shall be the required method of procurement unless negotiation pursuant to paragraph (2) below is necessary to accomplish sound procure- ments. However, procurements of $10,000 or less need not be so advertised unless otherwise required by State or local law or regulations. Where such advertised bids are I ~ ....... .. , .' I I - 21 - obtained, the awards shall be made to the responsible bidder whose bid is responsive to the invitation and is most advantageous to the recipient, price and other factors considered. (Factors such as discounts, transportation costs, and taxes may be considered in determining the lowest bid.) Invitations for bids shall clearly set forth all requirements which the bidder must fulfill in order for his/her bid to be evaluated by the recipient. Any or all bids may be rejected when it is in the recipient's interest to do so, and such rejections are in accordance with applicable State and local law, rules and regulations. (2) Procurements may be negotiated if it is impracti- cable and unfeasible to use formal advertising. Generally, procurements may.be negotiated by the r e c ip i en t if: (a) The public exigency will not permit the delay incident to advertising; (b) The material or service to be procured is available from only one person of firm. (All contemplated sole source procurements where the aggregate expenditure is expected to exceed $5,000 shall be referred to the G/CAO for prior approval.); (c) The aggregate amount involved does not exceed $10,000; (d) The contract is for personal or professional services, or for any service to be rendered by a university, college, or other educational institution; (e) The material or services are to be procured and used outside the limits of the United States and its possessions; (f) No acceptable bids have been received after formal advertising; (g)' The purchases are for highly perishable materials or medical supplies; for material or services where the prices are established by law; for technical items or equipment requiring standardization and interchange- ability of parts with existing; for experimental, , I - 22 - developmental; or research work; for supplies purchased for authorized resale; and for technical or specialized supplies requiring substantial initial investment for manufacture; or (h) Otherwise authorized by law, rules or regulations. Notwithstanding the existence of circumstances justifying negotiation, competition shall be obtained to the maximum extent practicable. c. The recipient shall include, in addition to provisions to define a sound and complete agreement, the following provisions in all contracts. These provisions shall also be applied to subcontracts. (1) Contracts in excess of $10,000 shall contain contractual provisions or conditions that will allow for administrative, contractual or legal remedies in instances in which contractors violate or breach contract terms, and provide for such remedial actions as may be appropriate. (2) All contracts in excess of $10,000 shall contain suitable provisions for termination by the recipient, including the manner by which termination will be affected 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 ma~ be terminated because of circumstances beyond the contractor's control. (3) In all contracts for construction or facility improvements awarded for more than $100,000, recipients shall observe the bonding requirements provided in this instrument. (4) All contracts awarded by the recipient and its contractors or subgrantees having a value of more than $10,000, shall contain a provision requiring compliance with Executive Order 11246, entitled "Equal Employment Opportunity," as amended by Executive Order 11375, and as supple- mented in Department of Labor regulations (41 CFR, Part 60). (5) All contracts and subgrants in excess of $2,000 for construction or repair awarded by the recipient and subrecipients shall include a .1 ~ . .' I I - 23 - provision for compliance with the Copeland "Anti-Kick Back" Act (18 U.S.C. 874) as supplemented in Department of Labor regulations (29 CFR, Part 3). This Act provides that each contractor or subgrantee 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/she is othe~wise entitled. The recipient shall report all suspected or reported violations to the G/CAO. (6) When required by the Federal program legislation, all construction contracts awarded by the recipient and subrecipients or 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). 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 G/CAO. (7) Where applicable, all contracts awarded by recipient 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 103 and 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 327-330) as supplemented by Department of Labor regulations (29 CFR, Part 5). Under Section 103 of the Act, each contractor shall be required to compute the wages of every mechanic and laborer on the basis of a standard work day of 8 hours and a standard work week of 40 hours. , I ~L - 24 - Work in excess of the standard workday or workweek 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 8 hours in any calendar 'day or 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 to his/her health and safety as determined under construction safety and health standards promulgated by the Secretary of Labor. 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. (8) Contracts or agreements, the principal purpose of which is to create, develop or improve products, processes or methods; or for exploration into fields that directly concern public health, safety or welfare; or contracts in the field of science or technology in which there has been little significant experience outside of work funded by Federal assistance, shall contain a notice to the effect that matters regarding rights to inventions and materials generated under the cpntract or agreements are subject to the regulations issued by HUD and the recipient. (9) All negotiated contracts (except those of $10,000 or less) awarded by recipients shall include a provision to the effect that the recipient, fWD, 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. (10) 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 Clear ,... ., \.~ '. L. 15. Disputes I I - 25 - Air Act of 1970 (42 U.S.C. 1857 et seq.) and the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.) as amended. Violations shall be reported to HUD and the Regional Office of the Environmental Protection Agency. During performance of the instrument, disagreements may arise between the recipient and the G/CAO on various issues, such as the allowability of costs. If a dispute concerning a question of fact arises, the G/CAO shall prepare a final decision, taking into account all facts and documentation presented. The decision shall be mailed to the recipient. The recipient may appeal the decision within thirty (30) days to the Director, Office of Procurement and Contracts. 16. Other Administrative Provisions a. The recipient agrees that: ( 1 ) (2) (3) It shall com~ly with Title VI of the Civil Rights Act of 1964 (P.L. 88-352), and in accordance with Title VI of that Act, no person in the United' states shall, on the ground of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity for which the recipient received Federal financial assistance and shall immediately take any measures necessary to effectuate this Agreement. It shall comply with Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d) prohibiting employment discrimination where (a) the primary purpose of an instrument is to provide employment or (b) discriminatory employment practices will result in unequal treatment of persons who are or should be benefiting from the grant-aided activity. It shall comply with requirements for the provisions of the Uniform Relocation Assistance and Real Property Acquisitions Act of 1970 (P.L. 91-646) which provides for fair and equitable treatment of persons displaced as a result of Federal and federally assisted programs. .: Cl... ~. , I i_,. s - 26 - (4) It shall comply with the provisions of the Hatch Act which limit the political activity of employees. (5) It shall comply with the minimum wage and maximum hours provisions of the Federal Fair Labor Standards Act, as they apply to employees of institutions of higher education, hospitals, and other nonprofit organizations. (6) It shall ~stablish safeguards to prohibit employees from using their positions for a PQrpose that is or gives the appearance of being motivated by a desire for private gain for themselves or others, particularly those with whom they have family, business,or other t'i es . (7) It shall insure that the facilities under its ownership, lease, or supervision, which shall be utilized in the accomplishment of the instrument, are not listed on the Environmental Protection Agency (EPA) list of violating facilities and that it shall notify HUD of the receipt of any communication from the Director of the EPA, Office of Federal Activities, indicating that a facility to be used in the project is under consideration for listing by the EPA. (8) It shall comply, to the extent applicable, with all the requirements of Section 114 of the Clean Air Act, as amended (42 U.S.C. 1857, et seq., as amended by Public Law 91-604) and Section 308 of the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq., as amended by Public Law 92-500), respectively, relating. to inspection, monitoring, entry, reports, and information, as well as .other requirements specified in Section 114 and Section 308 of the Air Act and the Water Act, respectively, and all regulations and guidelines issued thereunder. (9) It shall comply with the flood insurance purchase requirements of Section 102(a) of the Flood Disaster Protection Act of 1973, Public Law 93-234, 87 Stat. 975, approved December 13, 1975, for the purchase of flood insurance in commQnities where such insurance is available as a condition for the receipt of any Federal , . ~ . t \f....~ . .' I , - 27 - financial assistance for construction or acquisition purposes for use in any area that has been identified by the Secretary of the Department of Housing and Urban Development as an area having special flood hazards. The phrase "Federal financial assistance" includes any form of loan, grant, guaranty, insurance payment, rebate, subsidy, disaster assistance loan or grant, or any other form of direct or indirect Federal assistance. (10) It shall assist HUD in its compliance with Section 106 of the National Historic Preservation Act of 1966 as amended (16 U.S.C. 470), Executive Order 11593, and the Archeological and Historic Preservation Act of 1966 (16 U.S.C. 469a-1 et seq.) by (a) consulting with the State Historic Preservation Officer on the conduct of investigations, as necessary, to identify properties listed in or eligible of inclusion in the National Register of Historic Places that are subject to adverse effects (See 36 CFR, Part 800.8) by the activity, and notifying the Federal grantor agency of the existence of any such properties, and by (b) complying with all requirements established by HUD to avoid or mitigate adverse effects upon such properties. (11) It shall comply with Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. 794, P.L. 93-112), and all requirements imposed by or pursuant to the regulations of the Department of Health and Human Services (45 CFR, Parts 80, 81, and 84), promulgated under the foregoing statute. It agrees that, in accordance with the foregoing requirements, no otherwise qualified handicapped person, by reason of handica~, shall be excluded from participation in, be denied the benefits of, or be subjected to discrimina- tion under any program or activity receiving Federal financial assistance, and.that it shall take any measures necessary to effectuate this Agreement. ..._"'. \i' f <f: '~ I - 28 - (12) It shall comply, to the extent applicable, with Title IX of the Education Amendments of 1972, 20 U.S.C. 1681, et seq., which proYides that no person in the United States shall, on the basis of sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any educational program or activity receiving Federal financial assistance. (13) It will comply with Executive Order 11246, entitled "Equal Employment Opportunity," as amended by Executive Order 11375, and as supplemented in Department of Labor regulations (41 CFR, Part 60). This applies only to contracts awarded by recipients having a value of more than $10,000. oc,J ~ \) Ct-.\ ~~ co"'f)iP \\~(; ~s?-Y:.. C~~i C ;.;.. ':. '.:: ! ~.- .:; \.." ...~! ". " ", .. '\ . , .'. ~ . '.