|
Page 33 of 53
<br />Appendix F. 2 C.F.R. Appendix II to Part 200: Contract provisions for
<br />nonfederal entity contracts under federal awards
<br />In addition to other provisions required by the Federal agency or non -Federal entity, all contracts made by the non-
<br />Federal entity under the Federal award must contain provisions covering the following, as applicable.
<br />(A) Contracts for more than the simplified acquisition threshold, which is the inflation adjusted amount determined by the
<br />Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) as authorized by 41 U.S.C.
<br />1908, must address administrative, contractual, or legal remedies in instances where contractors violate or breach contract
<br />terms, and provide for such sanctions and penalties as appropriate.
<br />(B) All contracts in excess of $10,000 must address termination for cause and for convenience by the non -Federal entity
<br />including the manner by which it will be effected and the basis for settlement.
<br />(C) Equal Employment Opportunity. Except as otherwise provided under 41 CFR Part 60, all contracts that meet the definition
<br />of “federally assisted construction contract” in 41 CFR Part 60-1.3 must include the equal opportunity clause provided under
<br />41 CFR 60-1.4(b), in accordance with Executive Order 11246, “Equal Employment Opportunity” (30 FR 12319, 12935, 3 CFR
<br />Part, 1964-1965 Comp., p. 339), as amended by Executive Order 11375, “Amending Executive Order 11246 Relating to Equal
<br />Employment Opportunity,” and implementing regulations at 41 CFR part 60, “Office of Federal Contract Compliance
<br />Programs, Equal Employment Opportunity, Department of Labor.”
<br />(D) Davis-Bacon Act, as amended (40 U.S.C. 3141-3148). When required by Federal program legislation, all prime construction
<br />contracts in excess of $2,000 awarded by non-Federal entities must include a provision for compliance with the Davis -Bacon
<br />Act (40 U.S.C. 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 CFR Part 5, “Labor
<br />Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the
<br />statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages
<br />specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages
<br />not less than once a week. The non-Federal entity must place a copy of the current prevailing wage determination issued by
<br />the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the
<br />acceptance of the wage determination. The non -Federal entity must report all suspected or reported violations to the Federal
<br />awarding agency. The contracts must also include a provision for compliance with the Copeland “Anti -Kickback” Act (40 U.S.C.
<br />3145), as supplemented by Department of Labor regulations (29 CFR Part 3, “Contractors and Subcontractors on Public
<br />Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States”). The Act provides that each
<br />contractor or subrecipient must be prohibited from inducing, by any m eans, any person employed in the construction,
<br />completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The
<br />non-Federal entity must report all suspected or reported violations to the Federal awarding agency.
<br />(E) Contract Work Hours and Safety Standards Act (40 U.S.C. 3701 -3708). Where applicable, all contracts awarded by the non-
<br />Federal entity in excess of $100,000 that involve the employment of mechanics or laborers must include a provision for
<br />compliance with 40 U.S.C. 3702 and 3704, as supplemented by Department of Labor regulations (29 CFR Part 5). Under 40
<br />U.S.C. 3702 of the Act, each contractor must be required to compute the wages of every mechanic and laborer on the basis of
<br />a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is
<br />compensated at a rate of not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in
<br />the work week. The requirements of 40 U.S.C. 3704 are applicable to construction work and provide that no laborer or
<br />mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous or
<br />dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the
<br />open market, or contracts for transportation or transmission of intelligence.
<br />(F) Rights to Inventions Made Under a Contract or Agreement. If the Federal award meets the definition of “funding
<br />agreement” under 37 CFR §401.2 (a) and the recipient or subrecipient wishes to enter into a contract with a small business
<br />firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental,
<br />developmental, or research work under that “funding agreement,” the recipient or subrecipient must comply with the
<br />requirements of 37 CFR Part 401, “Rights to In ventions Made by Nonprofit Organizations and Small Business Firms Under
<br />Government Grants, Contracts and Cooperative Agreements,” and any implementing regulations issued by the awarding
<br />agency.
<br />(G) Clean Air Act (42 U.S.C. 7401-7671q.) and the Federal Water Pollution Control Act (33 U.S.C. 1251-1387), as amended—
<br />Contracts and subgrants of amounts in excess of $150,000 must contain a provision that requires the non -Federal award to
<br />Exhibit C
|