ATTACHMENT 1 - Federal and Subrecipient Requirement Language.docx

REVISION DATE: 9/12/25

Proposed Federal Funds Language Background and Overview:

The attached document contains the uniform federal funds and subrecipient mandated language, as well as optional standard financial records documentation retention requirements, and invoicing and payments requirements language. Current language utilized by the Division of Purchasing for contracts with federal funds language was used as the starting point for the discussions and revisions of the language.

The attached document contains green highlighted text that will be part of the request for information to, and provided by, the state agency for development of the solicitation document. The yellow highlighted language contains instructions for the Division of Purchasing buyer in the development of the solicitation document.

Please note that the language is set up in a table form to provide for comments, if any, under the Review Comments Column. If there are minor edits required to the language, you may make the necessary change by either using the track changes feature or highlighting the language in a color other than green or yellow.

Once the uniform federal funds and subrecipient mandated language is finalized, it will be made available for both the Division of Purchasing and state agencies to use when needed.

ATTACHMENT: FEDERAL FUNDS REQUIREMENTS

Agencies provide any federal fund grant specific language that is required to be include in the contract but not identified below Federal Fund Requirements:

NOTE –State agencies please verify the following paragraph coincides with your agency’s notification process.

The contractor shall understand and agree that the contract involves the use of federal funds. Upon award of the contract, the state agency will provide the contractor the federal fund information. In the event the federal fund information changes, the contractor will be notified in writing by the state agency.

Federal Debarment and Suspension (Executive Orders 12549 and 12689) - The contractor certifies by signing the front page of this document that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in the contract by any Federal department or agency pursuant to 2 CFR Part 180, or any other applicable law.

Applicable Laws and Regulations and Public Policy Requirements - In performing its responsibilities under the contract, the contractor shall fully comply with the Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR, Chapter 1, Chapter, II, Part 200, et al.), as applicable, including any subsequent amendments.

The contractor shall comply with all applicable implementing regulations, and all other laws, regulations and policies authorizing or governing the use of any federal funds paid to the contractor/subrecipient/recipient (state agency advise of the correct term) through the contract. The contractor shall ensure compliance with U.S. statutory and public policy requirements, including but not limited to, those protecting public welfare, the environment, and prohibiting discrimination.

Stevens Amendment - The contractor shall not issue any statements, press releases, requests for proposals, bid solicitations, and other documents describing projects or programs funded in whole or in part with Federal funds without the prior approval of the state agency, and the contractor shall clearly state the following:

The percentage of the total costs of the program or project that will be financed with federal money;

The dollar amount of federal funds for the project or program; and The percentage and dollar amount of the total costs of the project or program that will be financed by nongovernmental sources.

Publicity - Any publicity releases and publications mentioning contract activities shall reference the contract number and the state agency. The contractor shall obtain approval from the state agency prior to the release of such publicity release or publications.

Rights to Inventions – Choose Version 1 for all agencies except DNR. Use Version 2 for DNR.

Version 1 Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts, and Cooperative Agreements - The contractor shall comply 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, as applicable.

Version 2 (DNR version) Rights to Inventions Made Under a Contract or Agreement (37 CFR Part 401) - If the contractor produces subject matter, which is or may be patentable in the course of work sponsored by this agreement, the contractor shall promptly and fully disclose such subject matter in writing to the state agency. In the event that the contractor fails or declines to file Letters of Patent or to recognize patentable subject matter, the state agency reserves the right to file the same. The state agency grants to the contractor the opportunity to acquire an exclusive license, including the right to sublicense, with a royalty consideration paid to the state agency. Payment of royalties by contractor to the state agency will be addressed in a separate royalty agreement.

Include the following in procurements valued at $100,000.00 or above Byrd Anti-Lobbying Amendment (31 U.S.C. 1352), Certification Regarding Lobbying - The contractor shall comply with all requirements of 31 U.S.C. 1352 that is incorporated herein as if fully set forth.

The contractor certifies by signing the first page of the document that no federal appropriated funds have been paid or will be paid, by or on behalf of the contractor, to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, or an employee of a member of Congress in connection with the awarding of any federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement, or the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement.

The contractor certifies that no funds under the contract shall be used to pay for any activity to support or defeat the enactment of legislation before the Congress, or any State or local legislature or legislative body. The contractor shall not use any funds under the contract to pay for any activity to support or defeat any proposed or pending regulation, administrative action, or order issued by the executive branch of any State or local government.

The contractor certifies that no funds under the contract shall be used to pay the salary or expenses of the contractor, or an agent acting for the contractor who engages in any activity designed to influence the enactment of legislation or appropriations proposed, or pending before the Congress, or any State, local legislature or legislative body, or any regulation, administrative action, or Executive Order issued by the executive branch of any State or local government.

The above prohibitions include any activity to advocate or promote any proposed, pending, or future Federal, State or local tax increase, or any proposed, pending, or future requirement or restriction on any legal consumer product, including its sale or marketing, including but not limited to the advocacy or promotion of gun control.

If any funds other than federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, or an employee of a member of Congress in connection with any Federal contract, grant, loan, or cooperative agreement, the contractor shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying" in accordance with its instructions.

The contractor shall require that the language of this section be included in the award documents for all subawards at all levels (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly.

· Each tier must also disclose any lobbying with non-federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the non-federal award.

This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by 31 U.S.C. § 1352. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000.00 and not more than $100,000.00 for each such failure.

Drug Free Workplace Act - The contractor shall provide a drug free workplace in accordance with the Drug Free Workplace Act of 1988, 41 U.S.C. Chapter 81, and all applicable regulations. The contractor shall report any conviction of the contractor’s personnel under a criminal drug statute for violations occurring on the contractor’s premises or off the contractor’s premises while conducting official business. A report of a conviction shall be made to the state agency within five (5) working days after the conviction.

Pro-Children Act - The contractor shall comply with the Pro-Children Act of 1994 (20 U.S.C. 6081).

The Pro-Children Act of 1994, (Public Law 103-227, 20 U.S.C. §§ 6081-6084), requires that smoking not be permitted in any portion of any indoor facility owned or leased or contracted for by an entity and used routinely or regularly for the provision of health, day care, early childhood development services, education, or library services to children under the age of 18, if the services are funded by Federal programs either directly or through State or local governments, by federal grant, contract, loan, or loan guarantee. The Pro-Children Act also applies to children’s services that are provided in indoor facilities that are constructed, operated, or maintained with such federal funds.

The Pro-Children Act does not apply to children’s services provided in private residences; portions of facilities used for inpatient drug or alcohol treatment; service providers whose sole source of applicable federal funds is Medicare or Medicaid; or facilities where WIC coupons are redeemed.

The contractor certifies that it will comply with the requirements of the Pro-Children Act and will not allow smoking within any portion of any indoor facility used for the provision of services for children as defined by the Pro-Children Act.

The contractor shall require the language of this certification be included in any subcontract or subaward that contains provisions for children’s services and that all subrecipients shall certify accordingly.

Failure to comply with the provisions of the Pro-Children Act may result in the imposition of a civil monetary penalty of up to $1,000.00 for each violation and/or the imposition of an administrative compliance order on the responsible entity.

Contractor Whistleblower Protections:

The contractor shall comply with the provisions of 41 U.S.C. 4712 that states an employee of a contractor, subcontractor, grantee, or subgrantee may not be discharged, demoted, or otherwise discriminated against as a reprisal for “whistleblowing”. In addition, whistleblower protections cannot be waived by any agreement, policy, form, or condition of employment.

The contractor’s employees are encouraged to report fraud, waste, and abuse. The contractor shall inform their employees in writing they are subject to federal whistleblower rights and remedies. This notification must be in the predominant native language of the workforce.

The contractor shall include this requirement in any agreement made with a subcontractor or subgrantee.

Human Rights and Affirmative Action:

The contractor shall comply with all federal and state statutes, regulations, and executive orders relating to nondiscrimination and equal employment opportunity to the extent applicable to the contract. These include but are not limited to the following:

Title VI of the Civil Rights Act of 1964 (P.L. 88-352) that prohibits discrimination on the basis of race, color, or national origin (this includes individuals with limited English proficiency) in programs and activities receiving federal financial assistance and Title VII of the Act that prohibits discrimination on the basis of race, color, national origin, sex, or religion in all employment activities;

Equal Pay Act of 1963 (P.L. 88-38, as amended, 29 U.S.C. Section 206(d));

Title IX of the Education Amendments of 1972, as amended (20 U.S.C 1681-1683 and 1685-1686) that prohibits discrimination on the basis of sex;

Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. 794), the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.), and Americans with Disabilities Act Amendments Act of 2008 (Public Law 110-325, “ADAAA”) which prohibit discrimination on the basis of disabilities;

The Age Discrimination Act of 1975, as amended (42 U.S.C. 6101-6107) that prohibits discrimination on the basis of age;

Equal Employment Opportunity – E.O. 11246, “Equal Employment Opportunity”, as amended by E.O. 11375, “Amending Executive Order 11246 Relating to Equal Employment Opportunity”;

Genetic Information Non-Discrimination Act (GINA) Missouri State Regulation, 19 CSR 10-2.010, Civil Rights Compliance Requirements;

Missouri Governor’s E.O. #94-03 (excluding article II due to its repeal);

Missouri Governor’s E.O. #10-24; and The requirements of any other nondiscrimination federal and state statutes, regulations, and executive orders that may apply to the services provided via the contract.

In connection with the furnishing of equipment, supplies, and/or services under the contract, the contractor and all subcontractors shall agree not to discriminate against recipients of services or employees or applicants for employment on the basis of race, color, religion, national origin, sex, age, disability, or veteran status unless otherwise provided by law. If the contractor or subcontractor employs at least 50 persons, the contractor shall have and maintain an affirmative action program that shall include:

A written policy statement committing the organization to affirmative action and assigning management responsibilities and procedures for evaluation and dissemination;

The identification of a person designated to handle affirmative action;

The establishment of non-discriminatory selection standards, objective measures to analyze recruitment, an upward mobility system, a wage and salary structure, and standards applicable to layoff, recall, discharge, demotion, and discipline;

The exclusion of discrimination from all collective bargaining agreements; and Performance of an internal audit of the reporting system to monitor execution and to provide for future planning.

If discrimination by a contractor is found to exist, the Division of Purchasing shall take appropriate enforcement action which may include, but not necessarily be limited to, cancellation of the contract, suspension, or debarment by the Division of Purchasing until corrective action by the contractor is made and ensured, and referral to the Attorney General's Office, whichever enforcement action may be deemed most appropriate.

Use the following paragraph if the procurement is over $150,000, per 2 CFR. Choose Version 1 for all state agencies except DNR. Use Version 2 for DNR.

Version 1 Clean Air Act and Federal Water Pollution Control Act - The contractor shall 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.).

Version 2 - DNR version Procurement of Recovered Materials - The contractor must comply with section 6002 of the Solid Waste Disposal Acts, as amended by the Resource Conservation and Recovery Act. The requirements of this section include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000.00 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000.00; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines.

Used for DESE procurements that use Federal Funds Cash Management Improvement Act - The contractor shall ensure compliance with the Cash Management Improvement Act of 1990 (CMIA), as provided in 31 U.S.C. § 6503. This act requires the contractor to demonstrate that when receiving federal funds, the contractor has already spent the funds.

ATTACHMENT: FEDERAL FUNDS AND SUBRECIPIENT REQUIREMENTS

Agencies provide any federal fund grant specific language that is required to be include in the contract but not identified below Federal Fund Requirements:

NOTE –State agencies please verify the following paragraph coincides with your agency’s notification process.

The contractor shall understand and agree that the contract involves the use of federal funds. Upon award of the contract, the state agency will provide the contractor the federal fund information. In the event the federal fund information changes, the contractor will be notified in writing by the state agency.

Federal Debarment and Suspension (Executive Orders 12549 and 12689) - The contractor certifies by signing the front page of this document that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in the contract by any Federal department or agency pursuant to 2 CFR Part 180, or any other applicable law.

Applicable Laws and Regulations and Public Policy Requirements - In performing its responsibilities under the contract, the contractor shall fully comply with the Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR, Chapter 1, Chapter, II, Part 200, et al.), as applicable, including any subsequent amendments.

The contractor shall comply with all applicable implementing regulations, and all other laws, regulations and policies authorizing or governing the use of any federal funds paid to the contractor/subrecipient/recipient (state agency advise of the correct term) through the contract. The contractor shall ensure compliance with U.S. statutory and public policy requirements, including but not limited to, those protecting public welfare, the environment, and prohibiting discrimination.

Stevens Amendment - The contractor shall not issue any statements, press releases, requests for proposals, bid solicitations, and other documents describing projects or programs funded in whole or in part with Federal funds without the prior approval of the state agency, and the contractor shall clearly state the following:

The percentage of the total costs of the program or project that will be financed with federal money;

The dollar amount of federal funds for the project or program; and The percentage and dollar amount of the total costs of the project or program that will be financed by nongovernmental sources.

Publicity - Any publicity releases and publications mentioning contract activities shall reference the contract number and the state agency. The contractor shall obtain approval from the state agency prior to the release of such publicity release or publications.

Rights to Inventions – Choose Version 1 for all agencies except DNR. Use Version 2 for DNR.

Version 1 Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts, and Cooperative Agreements - The contractor shall comply 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, as applicable.

Version 2 (DNR version) Rights to Inventions Made Under a Contract or Agreement (37 CFR Part 401) - If the contractor produces subject matter, which is or may be patentable in the course of work sponsored by this agreement, the contractor shall promptly and fully disclose such subject matter in writing to the state agency. In the event that the contractor fails or declines to file Letters of Patent or to recognize patentable subject matter, the state agency reserves the right to file the same. The state agency grants to the contractor the opportunity to acquire an exclusive license, including the right to sublicense, with a royalty consideration paid to the state agency. Payment of royalties by contractor to the state agency will be addressed in a separate royalty agreement.

Include the following in procurements valued at $100,000.00 or above Byrd Anti-Lobbying Amendment (31 U.S.C. 1352), Certification Regarding Lobbying - The contractor shall comply with all requirements of 31 U.S.C. 1352 that is incorporated herein as if fully set forth.

The contractor certifies by signing the first page of the document that no federal appropriated funds have been paid or will be paid, by or on behalf of the contractor, to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, or an employee of a member of Congress in connection with the awarding of any federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement, or the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement.

The contractor certifies that no funds under the contract shall be used to pay for any activity to support or defeat the enactment of legislation before the Congress, or any State or local legislature or legislative body. The contractor shall not use any funds under the contract to pay for any activity to support or defeat any proposed or pending regulation, administrative action, or order issued by the executive branch of any State or local government.

The contractor certifies that no funds under the contract shall be used to pay the salary or expenses of the contractor, or an agent acting for the contractor who engages in any activity designed to influence the enactment of legislation or appropriations proposed, or pending before the Congress, or any State, local legislature or legislative body, or any regulation, administrative action, or Executive Order issued by the executive branch of any State or local government.

The above prohibitions include any activity to advocate or promote any proposed, pending, or future Federal, State or local tax increase, or any proposed, pending, or future requirement or restriction on any legal consumer product, including its sale or marketing, including but not limited to the advocacy or promotion of gun control.

If any funds other than federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, or an employee of a member of Congress in connection with any Federal contract, grant, loan, or cooperative agreement, the contractor shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying" in accordance with its instructions.

The contractor shall require that the language of this section be included in the award documents for all subawards at all levels (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly.

· Each tier must also disclose any lobbying with non-federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the non-federal award.

This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by 31 U.S.C. § 1352. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000.00 and not more than $100,000.00 for each such failure.

Drug Free Workplace Act - The contractor shall provide a drug free workplace in accordance with the Drug Free Workplace Act of 1988, 41 U.S.C. Chapter 81, and all applicable regulations. The contractor shall report any conviction of the contractor’s personnel under a criminal drug statute for violations occurring on the contractor’s premises or off the contractor’s premises while conducting official business. A report of a conviction shall be made to the state agency within five (5) working days after the conviction.

Pro-Children Act - The contractor shall comply with the Pro-Children Act of 1994 (20 U.S.C. 6081).

The Pro-Children Act of 1994, (Public Law 103-227, 20 U.S.C. §§ 6081-6084), requires that smoking not be permitted in any portion of any indoor facility owned or leased or contracted for by an entity and used routinely or regularly for the provision of health, day care, early childhood development services, education, or library services to children under the age of 18, if the services are funded by Federal programs either directly or through State or local governments, by federal grant, contract, loan, or loan guarantee. The Pro-Children Act also applies to children’s services that are provided in indoor facilities that are constructed, operated, or maintained with such federal funds.

The Pro-Children Act does not apply to children’s services provided in private residences; portions of facilities used for inpatient drug or alcohol treatment; service providers whose sole source of applicable federal funds is Medicare or Medicaid; or facilities where WIC coupons are redeemed.

The contractor certifies that it will comply with the requirements of the Pro-Children Act and will not allow smoking within any portion of any indoor facility used for the provision of services for children as defined by the Pro-Children Act.

The contractor shall require the language of this certification be included in any subcontract or subaward that contains provisions for children’s services and that all subrecipients shall certify accordingly.

Failure to comply with the provisions of the Pro-Children Act may result in the imposition of a civil monetary penalty of up to $1,000.00 for each violation and/or the imposition of an administrative compliance order on the responsible entity.

Contractor Whistleblower Protections:

The contractor shall comply with the provisions of 41 U.S.C. 4712 that states an employee of a contractor, subcontractor, grantee, or subgrantee may not be discharged, demoted, or otherwise discriminated against as a reprisal for “whistleblowing”. In addition, whistleblower protections cannot be waived by any agreement, policy, form, or condition of employment.

The contractor’s employees are encouraged to report fraud, waste, and abuse. The contractor shall inform their employees in writing they are subject to federal whistleblower rights and remedies. This notification must be in the predominant native language of the workforce.

The contractor shall include this requirement in any agreement made with a subcontractor or subgrantee.

Human Rights and Affirmative Action:

The contractor shall comply with all federal and state statutes, regulations, and executive orders relating to nondiscrimination and equal employment opportunity to the extent applicable to the contract. These include but are not limited to the following:

Title VI of the Civil Rights Act of 1964 (P.L. 88-352) that prohibits discrimination on the basis of race, color, or national origin (this includes individuals with limited English proficiency) in programs and activities receiving federal financial assistance and Title VII of the Act that prohibits discrimination on the basis of race, color, national origin, sex, or religion in all employment activities;

Equal Pay Act of 1963 (P.L. 88-38, as amended, 29 U.S.C. Section 206(d));

Title IX of the Education Amendments of 1972, as amended (20 U.S.C 1681-1683 and 1685-1686) that prohibits discrimination on the basis of sex;

Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. 794), the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.), and Americans with Disabilities Act Amendments Act of 2008 (Public Law 110-325, “ADAAA”) which prohibit discrimination on the basis of disabilities;

The Age Discrimination Act of 1975, as amended (42 U.S.C. 6101-6107) that prohibits discrimination on the basis of age;

Equal Employment Opportunity – E.O. 11246, “Equal Employment Opportunity”, as amended by E.O. 11375, “Amending Executive Order 11246 Relating to Equal Employment Opportunity”;

Genetic Information Non-Discrimination Act (GINA) Missouri State Regulation, 19 CSR 10-2.010, Civil Rights Compliance Requirements;

Missouri Governor’s E.O. #94-03 (excluding article II due to its repeal);

Missouri Governor’s E.O. #10-24; and The requirements of any other nondiscrimination federal and state statutes, regulations, and executive orders that may apply to the services provided via the contract.

In connection with the furnishing of equipment, supplies, and/or services under the contract, the contractor and all subcontractors shall agree not to discriminate against recipients of services or employees or applicants for employment on the basis of race, color, religion, national origin, sex, age, disability, or veteran status unless otherwise provided by law. If the contractor or subcontractor employs at least 50 persons, the contractor shall have and maintain an affirmative action program that shall include:

A written policy statement committing the organization to affirmative action and assigning management responsibilities and procedures for evaluation and dissemination;

The identification of a person designated to handle affirmative action;

The establishment of non-discriminatory selection standards, objective measures to analyze recruitment, an upward mobility system, a wage and salary structure, and standards applicable to layoff, recall, discharge, demotion, and discipline;

The exclusion of discrimination from all collective bargaining agreements; and Performance of an internal audit of the reporting system to monitor execution and to provide for future planning.

If discrimination by a contractor is found to exist, the Division of Purchasing shall take appropriate enforcement action which may include, but not necessarily be limited to, cancellation of the contract, suspension, or debarment by the Division of Purchasing until corrective action by the contractor is made and ensured, and referral to the Attorney General's Office, whichever enforcement action may be deemed most appropriate.

Use the following paragraph if the procurement is over $150,000, per 2 CFR. Choose Version 1 for all state agencies except DNR. Use Version 2 for DNR.

Version 1 Clean Air Act and Federal Water Pollution Control Act - The contractor shall 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.).

Version 2 - DNR version Procurement of Recovered Materials - The contractor must comply with section 6002 of the Solid Waste Disposal Acts, as amended by the Resource Conservation and Recovery Act. The requirements of this section include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000.00 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000.00; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines.

Used for DESE procurements that use Federal Funds Cash Management Improvement Act - The contractor shall ensure compliance with the Cash Management Improvement Act of 1990 (CMIA), as provided in 31 U.S.C. § 6503. This act requires the contractor to demonstrate that when receiving federal funds, the contractor has already spent the funds.

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State agency advise if subrecipient requirements apply. If so, review and advise which paragraphs apply. The following language should apply for all solicitations with subrecipient language, unless otherwise advised by the state agency.

Subrecipient Requirements:

The state agency has determined that the contract is subrecipient in nature as defined in 2 CFR § 200.330. To the extent that the contract involves the use, in whole or in part, of federal funds, the contractor shall comply with the following special conditions.

Trafficking Victims Protection Act – The contractor shall comply with Trafficking Victims Protection Act of 2000 (22 U.S.C. Chapter 78), as amended. This law applies to any private entity. A private entity includes any entity other than a State, local government, Indian tribe, or foreign public entity, as defined in 2 CFR § 175.25. The contractor must include the requirements of this paragraph in any subaward made to a private entity.

Audits - If required, the subrecipient shall have a single or program-specific audit conducted in accordance with provisions of the Single Audit Act of 1984 (with amendment in 1996) and 2 CFR, Part 200, Subpart F, et al., Audit Requirements.

In accordance with the provisions of 2 CFR, Part 200, Subpart F, et al., Audit Requirements, the subrecipient shall consider all sources of federal awards, including federal resources received from the state agency, in determining the federal awards expended in its fiscal year.

In the event the subrecipient is required to obtain an audit pursuant to 2 CFR, Part 200, Subpart F, et al., Audit Requirements, the subrecipient shall submit the reporting package to the Federal Audit Clearinghouse (FAC) as required by 2 CFR § 200.512. The subrecipient shall notify the state agency of the acceptance of the audit by the FAC within seven (7) calendar days of the acceptance. The subrecipient shall also notify the state agency in the event the subrecipient is not required to obtain and submit a single audit. State agency advise which option of the following language should be included).

(Option 1) These notifications shall be submitted to the:

Department of Social Services Division of Finance and Administrative Services Attn: Single Audit P.O. Box 1082 Jefferson City, MO 65102 Or DFAS.ComplianceUnit@dss.mo.gov

Or (Option 2) If requested by the Department, the contractor shall send audit reports to the Department of Health and Senior Services, Division of Administration, P.O. Box 570, Jefferson City, MO 65102.

Or (Option 3) – Agencies other than DSS and DHSS, advise of appropriate language

The subrecipient shall cooperate with the state agency in resolving questions that the state agency may have concerning the auditors’ report and plans for corrective action(s) pursuant to 2 CFR § 200.521.

The contractor shall return to the state agency any funds disallowed in an audit of the contract.

DHSS subrecipient language. DHSS, advise which paragraphs apply. Other state agencies please review and advise if any of the following language applies.

Return of Funds - The contractor shall be responsible for any disallowances, questioned costs, or other items, including interest, not allowed under the federal award or the contract. The contractor shall return to the state agency any funds paid to the contractor but not permitted under the contract.

Primary Personnel Change - The contractor shall notify the state agency in writing within 30 calendar days after a change occurs in its primary personnel involved in managing the contract.

Violation of Federal Criminal Law - The contractor shall notify the state agency in writing of any violation of Federal criminal law involving fraud, bribery, or gratuity violations potentially affecting federal monies under the contract. Failure by the contractor to disclose such violations may result in the state agency taking action as described in 2 CFR § 200.338 Remedies for Noncompliance.

DSS subrecipient language DSS, advise which paragraphs apply. Other state agencies please review and advise if any of the following language applies.

Matching Funds - The subrecipient shall not utilize federal funds, or any required matching funds, provided under the contract as matching funds for any other federal award, unless specifically allowed under that federal award.

Allowable Costs - Unless otherwise stated herein, the subrecipient shall invoice the state agency based on actual, allowable costs incurred.

The subrecipient shall ensure all expenditures invoiced, claimed, and/or reported satisfy the General provisions for allowable costs, as defined in the 2 CFR, Part 200, Subpart E- Cost Principles; and Specific provisions for allowable costs, as defined in applicable Federal program rules.

Indirect Cost Rates and Administrative Rates - In the event indirect costs and/or administrative rates are included as part of the cost reimbursement under the contract, the following shall apply:

If a subrecipient has an approved federally negotiated indirect cost rate, the state agency will accept the approved indirect cost rate, unless doing so would conflict with federal statutes or an exception has been approved by the federal agency, based on documented justification. (2 CFR § 200.414) If a federal agency has approved a new or different rate subsequent to the beginning of a contract period and the effective date is retroactive, the change (increase or decrease) will not be recognized and accepted until the following contract period.

A rate of 10% of Modified Total Direct Costs (MTDC) will be used for those subrecipients that do not have a federally negotiated indirect rate (2 CFR § 200.414).

Administrative costs are defined as general administration and general expenses such as the director’s office, accounting, personnel, library expenses, and all other types of expenditures not listed specifically under one of the subcategories of “Facilities”, (including cross allocations from other pools, where applicable). (US Dept. of Labor – Guide for Indirect Cost Rate Determination). Administrative costs can be categorized as both direct and indirect costs.

Administrative rates will vary by award, will be determined by the state agency, and will not exceed limits set forth by statute or regulations pertaining to each award. For example, some federal programs have statutory limitations on the percentage (%) of dollars that may be expended for administrative costs. The state agency must abide by those statutory limits. Consequently, in contracts that include federal dollars with statutory limitations on administrative costs, the state agency will limit the use of award funds for administrative costs in accordance with the statutory requirements. In such instances, the state agency award will deem administrative costs (including administrative costs included in the indirect rate) unallowable to the extent that the costs exceed the statutory limits.

With regard to indirect cost rates and administrative rates, guidance and requirements noted in Part 2 CFR § 200, “does not change or modify any existing statute or guidance otherwise based on any existing statute…and does not supersede any existing or future authority under law or by executive order of the Federal Acquisition Regulation.” Thus, for state agency programs where the specific federal award requirements define Administrative costs in such a manner that all Indirect costs are Administrative costs, the state agency cannot accept an indirect rate (regardless of whether it is federally negotiated or not) that exceeds the Administrative rate cap designated by the specific federal award.

Indirect costs – If the contract is going to use two indirect rates because a grant has a restricted indirect cost rate, the state agency must provide the language. This option requires a budget attachment.)

Example language follows. State agency modify as necessary.

Indirect costs are those associated with the management and oversight of any organization’s activities and are a result of all activities of the contractor. Indirect costs may include such things as utilities, rent, administrative salaries, financial staff salaries, and building maintenance.

The contractor shall not invoice the state agency for indirect costs that exceed the amounts on Attachment X. (state agency to provide the attachment)

The contractor shall calculate indirect costs for (state agency enter name of grant with the restricted indirect cost rate-) funding using X% of the modified total direct costs as defined in 2 CFR § 200.68.

Modified Total Direct Cost Method (MTDC) means all direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000.00 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs, and the portion of each subaward and in excess of $25,000.00. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs.

The contractor shall calculate indirect costs using the contractor’s negotiated rate for any other funding.

It is the contractor’s responsibility to correctly apply the indirect rate to the applicable direct costs claimed on each invoice.

The contractor’s invoice shall separately account for costs invoiced using the modified total direct cost method and the contractor’s negotiated rate.

In the event the contractor’s approved federally negotiated rate changes, the contractor shall submit the new negotiated agreement to the state agency at monitoring@health.mo.gov prior to submitting an invoice using the new rate.

Item Not Allowed for Federal Financial Participation - The subrecipient shall be responsible for any deferrals, disallowances, questioned costs, or other items not allowed for federal financial participation claimed by the state agency on behalf of the subrecipient. The subrecipient shall return any funds disallowed, either to the state agency or directly to the applicable federal agency, as instructed by the state agency and within the timeframe designated.

Budget and Allowable Costs - Within 30 calendar days after the end of the contract period, the contractor shall certify in writing to the state agency that the contractor completed the project or activity or that the contractor expended the required level of effort. The certification must contain the signature of the contractor’s authorized representative and may be in the form of a letter or a statement on the final invoice.

Health Resources and Services Administration Reports - This project is/was supported by the Health Resources and Services Administration (HRSA) of the U.S. Department of Health and Human Services (HHS) under the grant number, title, and amount listed in the Contract Funding Source(s) Attachment X (state agency provide this document) and zero percentage is/was financed with nongovernmental sources. This information or content and conclusions are those of the author and should not be construed as the official position or policy of, nor should any endorsements be inferred by HRSA, HHS, or the U.S. Government.