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A.11 CONTRACTING & PROCUREMENT <br /> a. The Subrecipient shall use a competitive procurement process in the procurement and award of any <br /> contracts with contractors or sub-contractors that are entered into under the original contract award. <br /> The procurement process followed shall be in accordance with 2CFR Part 200.318 General <br /> procurement standards through 200.326 Contract Provisions. <br /> As required by Appendix II to 2 CFR Part 200, all contracts entered into by the Subrecipient under <br /> this Agreement must include the following provisions, as applicable: <br /> i. Contracts for more than the simplified acquisition threshold currently set at$150,000, which is the <br /> inflation adjusted amount determined by the Civilian Agency Acquisition Council and the Defense <br /> Acquisition Regulations Council (Councils) as authorized by 41 U.S.C. 1908, must address <br /> administrative, contractual, or legal remedies in instances where contractors violate or breach <br /> contract terms, and provide for such sanctions and penalties as appropriate. <br /> ii. All contracts in excess of$10,000 must address termination for cause and for convenience by the <br /> non-Federal entity including the manner by which it will be effected and the basis for settlement. <br /> iii. Equal Employment Opportunity. Except as otherwise provided under 41 CFR Part 60, all contracts <br /> that meet the definition of "federally assisted construction contract" in 41 CFR Part 60-1.3 must <br /> include the equal opportunity clause provided under 41 CFR 60-1.4(b), in accordance with <br /> Executive Order 11246, "Equal Employment Opportunity" (30 FR 12319, 12935, 3 CFR Part, <br /> 1964-1965 Comp., p. 339), as amended by Executive Order 11375, "Amending Executive Order <br /> 11246 Relating to Equal Employment Opportunity," and implementing regulations at 41 CFR part <br /> 60, "Office of Federal Contract Compliance Programs, Equal Employment Opportunity, <br /> Department of Labor." <br /> iv. Davis-Bacon Act, as amended (40 U.S.C. 3141-3148). When required by Federal program <br /> legislation, all prime construction contracts in excess of $2,000 awarded by non-Federal entities <br /> must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. 3141-3144, and <br /> 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 <br /> Construction"). In accordance with the statute, contractors must be required to pay wages to <br /> laborers and mechanics at a rate not less than the prevailing wages specified in a wage <br /> determination made by the Secretary of Labor. In addition, contractors must be required to pay <br /> wages not less than once a week. The non-Federal entity must place a copy of the current <br /> prevailing wage determination issued by the Department of Labor in each solicitation. The <br /> decision to award a contract or subcontract must be conditioned upon the acceptance of the wage <br /> determination. The non-Federal entity must report all suspected or reported violations to the <br /> Federal awarding agency. The contracts must also include a provision for compliance with the <br /> Copeland "Anti-Kickback" Act (40 U.S.C. 3145), as supplemented by Department of Labor <br /> regulations (29 CFR Part 3, "Contractors and Subcontractors on Public Building or Public Work <br /> Financed in Whole or in Part by Loans or Grants from the United States"). The Act provides that <br /> each contractor or subrecipient must be prohibited from inducing, by any means, any person <br /> employed in the construction, completion, or repair of public work, to give up any part of the <br /> compensation to which he or she is otherwise entitled. The non-Federal entity must report all <br /> suspected or reported violations to the Federal awarding agency. <br /> v. Contract Work Hours and Safety Standards Act (40 U.S.C. 3701-3708). Where applicable, all <br /> contracts awarded by the non-Federal entity in excess of $100,000 that involve the employment <br /> of mechanics or laborers must include a provision for compliance with 40 U.S.C. 3702 and 3704, <br /> as supplemented by Department of Labor regulations (29 CFR Part 5). Under 40 U.S.C. 3702 of <br /> the Act, each contractor must be required to compute the wages of every mechanic and laborer <br /> on the basis of a standard work week of 40 hours. Work in excess of the standard work week is <br /> permissible provided that the worker is compensated at a rate of not less than one and a half <br /> times the basic rate of pay for all hours worked in excess of 40 hours in the work week. The <br /> requirements of 40 U.S.C. 3704 are applicable to construction work and provide that no laborer <br /> or mechanic must be required to work in surroundings or under working conditions which are <br /> unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of <br /> supplies or materials or articles ordinarily available on the open market, or contracts for <br /> transportation or transmission of intelligence. <br /> - 13- <br />