CFR-2014-title2-vol1-part200-appII.pdf

2 CFR Ch. II (1–1–14 Edition) Pt. 200, App. II early notification about the requirements al-lows the potential applicant to decide not to apply or to take needed actions before re-ceiving the Federal award. The announce-ment need not include all of the terms and conditions of the Federal award, but may refer to a document (with information about how to obtain it) or Internet site where ap-plicants can see the terms and conditions. If this funding opportunity will lead to Federal awards with some special terms and condi-tions that differ from the Federal awarding agency’s usual (sometimes called ‘‘general’’) terms and conditions, this section should highlight those special terms and conditions.

Doing so will alert applicants that have re-ceived Federal awards from the Federal awarding agency previously and might not otherwise expect different terms and condi-tions. For the same reason, the announce-ment should inform potential applicants about special requirements that could apply to particular Federal awards after the review of applications and other information, based on the particular circumstances of the effort to be supported (e.g., if human subjects were to be involved or if some situations may jus-tify special terms on intellectual property, data sharing or security requirements).

3. Reporting—Required. This section must include general information about the type (e.g., financial or performance), frequency, and means of submission (paper or elec-tronic) of post-Federal award reporting re-quirements. Highlight any special reporting requirements for Federal awards under this funding opportunity that differ (e.g., by re-port type, frequency, form/format, or cir-cumstances for use) from what the Federal awarding agency’s Federal awards usually require.

G. FEDERAL AWARDING AGENCY CONTACT(S)—

REQUIRED

The announcement must give potential ap-plicants a point(s) of contact for answering questions or helping with problems while the funding opportunity is open. The intent of this requirement is to be as helpful as pos-sible to potential applicants, so the Federal awarding agency should consider approaches such as giving:

i. Points of contact who may be reached in multiple ways (e.g., by telephone, FAX, and/ or email, as well as regular mail).

ii. A fax or email address that multiple people access, so that someone will respond even if others are unexpectedly absent dur-ing critical periods.

iii. Different contacts for distinct kinds of help (e.g., one for questions of programmatic content and a second for administrative questions).

H. OTHER INFORMATION—OPTIONAL

This section may include any additional information that will assist a potential ap-plicant. For example, the section might:

i. Indicate whether this is a new program or a one-time initiative.

ii. Mention related programs or other up-coming or ongoing Federal awarding agency funding opportunities for similar activities.

iii. Include current Internet addresses for Federal awarding agency Web sites that may be useful to an applicant in understanding the program.

iv. Alert applicants to the need to identify proprietary information and inform them about the way the Federal awarding agency will handle it.

v. Include certain routine notices to appli-cants (e.g., that the Federal government is not obligated to make any Federal award as a result of the announcement or that only grants officers can bind the Federal govern-ment to the expenditure of funds).

APPENDIX II TO PART 200—CONTRACT

PROVISIONS FOR NON-FEDERAL ENTI-

TY CONTRACTS UNDER FEDERAL

AWARDS

In addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal entity under the Federal award must contain provi-sions covering the following, as applicable.

(A) Contracts for more than the simplified acquisition threshold currently set at $150,000, which is the inflation adjusted amount determined by the Civilian Agency Acquisition Council and the Defense Acquisi-tion Regulations Council (Councils) as au-thorized by 41 U.S.C. 1908, must address ad-ministrative, contractual, or legal remedies in instances where contractors violate or breach contract terms, and provide for such sanctions and penalties as appropriate.

(B) All contracts in excess of $10,000 must address termination for cause and for con-venience by the non-Federal entity including the manner by which it will be effected and the basis for settlement.

(C) Equal Employment Opportunity. Ex-cept as otherwise provided under 41 CFR Part 60, all contracts that meet the defini-tion of ‘‘federally assisted construction con-tract’’ in 41 CFR Part 60–1.3 must include the equal opportunity clause provided under 41 CFR 60–1.4(b), in accordance with Executive Order 11246, ‘‘Equal Employment Oppor-tunity’’ (30 FR 12319, 12935, 3 CFR Part, 1964– 1965 Comp., p. 339), as amended by Executive Order 11375, ‘‘Amending Executive Order 11246 Relating to Equal Employment Oppor-tunity,’’ and implementing regulations at 41 CFR part 60, ‘‘Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor.’’

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OMB Guidance Pt. 200, App. II

(D) Davis-Bacon Act, as amended (40 U.S.C.

3141–3148). When required by Federal program legislation, all prime construction contracts in excess of $2,000 awarded by non-Federal entities must include a provision for compli-ance with the Davis-Bacon Act (40 U.S.C.

3141–3144, and 3146–3148) as supplemented by Department of Labor regulations (29 CFR Part 5, ‘‘Labor Standards Provisions Appli-cable to Contracts Covering Federally Fi-nanced and Assisted Construction’’). In ac-cordance with the statute, contractors must be required to pay wages to laborers and me-chanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-Federal entity must place a copy of the current pre-vailing wage determination issued by the De-partment of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-Federal en-tity must report all suspected or reported violations to the Federal awarding agency.

The contracts must also include a provision for compliance with the Copeland ‘‘Anti- Kickback’’ Act (40 U.S.C. 3145), as supple-mented by Department of Labor regulations (29 CFR Part 3, ‘‘Contractors and Sub-contractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States’’). The Act provides that each contractor or sub-recipient must 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 compensa-tion to which he or she is otherwise entitled.

The non-Federal entity must report all sus-pected or reported violations to the Federal awarding agency.

(E) Contract Work Hours and Safety Standards Act (40 U.S.C. 3701–3708). Where applicable, all contracts awarded by the non- Federal entity in excess of $100,000 that in-volve the employment of mechanics or labor-ers must include a provision for compliance with 40 U.S.C. 3702 and 3704, as supplemented by Department of Labor regulations (29 CFR Part 5). Under 40 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 a standard work week of 40 hours.

Work in excess of the standard work week is permissible provided that the worker is com-pensated 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 the work week. The requirements of 40 U.S.C. 3704 are applicable to construction work and provide that no laborer or mechanic must be re-quired to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transpor-tation or transmission of intelligence.

(F) Rights to Inventions Made Under a Contract or Agreement. If the Federal award meets the definition of ‘‘funding agreement’’ under 37 CFR § 401.2 (a) and the recipient or subrecipient wishes to enter into a contract with a small business firm or nonprofit orga-nization regarding the substitution of par-ties, assignment or performance of experi-mental, developmental, or research work under that ‘‘funding agreement,’’ the recipi-ent or subrecipient must comply with the re-quirements of 37 CFR Part 401, ‘‘Rights to In-ventions Made by Nonprofit Organizations and Small Business Firms Under Govern-ment Grants, Contracts and Cooperative Agreements,’’ and any implementing regula-tions issued by the awarding agency.

(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—Contracts and subgrants of amounts in excess of $150,000 must contain a provision that requires the non-Federal award to agree to comply with all applicable standards, orders or regula-tions issued pursuant to the Clean Air Act (42 U.S.C. 7401–7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C.

1251–1387). Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA).

(H) Mandatory standards and policies re-lating to energy efficiency which are con-tained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act (42 U.S.C. 6201).

(I) Debarment and Suspension (Executive Orders 12549 and 12689)—A contract award (see 2 CFR 180.220) must not be made to par-ties listed on the governmentwide Excluded Parties List System in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 CFR 180 that implement Executive Orders 12549 (3 CFR Part 1986 Comp., p. 189) and 12689 (3 CFR Part 1989 Comp., p. 235), ‘‘Debarment and Suspension.’’ The Excluded Parties List System in SAM contains the names of parties debarred, sus-pended, or otherwise excluded by agencies, as well as parties declared ineligible under stat-utory or regulatory authority other than Ex-ecutive Order 12549.

(J) Byrd Anti-Lobbying Amendment (31 U.S.C. 1352)—Contractors that apply or bid for an award of $100,000 or more must file the required certification. Each tier certifies to the tier above that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or at-tempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with ob-taining any Federal contract, grant or any

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2 CFR Ch. II (1–1–14 Edition) Pt. 200, App. III other award covered by 31 U.S.C. 1352. Each tier must also disclose any lobbying with non-Federal funds that takes place in con-nection with obtaining any Federal award.

Such disclosures are forwarded from tier to tier up to the non-Federal award.

(K) See § 200.322 Procurement of recovered materials.

APPENDIX III TO PART 200—INDIRECT

(F&A) COSTS IDENTIFICATION AND

ASSIGNMENT, AND RATE DETERMINA-

TION FOR INSTITUTIONS OF HIGHER

EDUCATION (IHES)

A. GENERAL

This appendix provides criteria for identi-fying and computing indirect (or indirect (F&A)) rates at IHEs (institutions). Indirect (F&A) costs are those that are incurred for common or joint objectives and therefore cannot be identified readily and specifically with a particular sponsored project, an in-structional activity, or any other institu-tional activity. See subsection B.1, Defini-tion of Facilities and Administration, for a discussion of the components of indirect (F&A) costs.

1. Major Functions of an Institution

Refers to instruction, organized research, other sponsored activities and other institu-tional activities as defined in this section:

a. Instruction means the teaching and training activities of an institution. Except for research training as provided in sub-section b, this term includes all teaching and training activities, whether they are offered for credits toward a degree or certificate or on a non-credit basis, and whether they are offered through regular academic depart-ments or separate divisions, such as a sum-mer school division or an extension division.

Also considered part of this major function are departmental research, and, where agreed to, university research.

(1) Sponsored instruction and training means specific instructional or training activity es-tablished by grant, contract, or cooperative agreement. For purposes of the cost prin-ciples, this activity may be considered a major function even though an institution’s accounting treatment may include it in the instruction function.

(2) Departmental research means research, development and scholarly activities that are not organized research and, con-sequently, are not separately budgeted and accounted for. Departmental research, for purposes of this document, is not considered as a major function, but as a part of the in-struction function of the institution.

b. Organized research means all research and development activities of an institution that are separately budgeted and accounted for. It includes:

(1) Sponsored research means all research and development activities that are spon-sored by Federal and non-Federal agencies and organizations. This term includes activi-ties involving the training of individuals in research techniques (commonly called re-search training) where such activities utilize the same facilities as other research and de-velopment activities and where such activi-ties are not included in the instruction func-tion.

(2) University research means all research and development activities that are sepa-rately budgeted and accounted for by the in-stitution under an internal application of in-stitutional funds. University research, for purposes of this document, must be com-bined with sponsored research under the function of organized research.

c. Other sponsored activities means programs and projects financed by Federal and non- Federal agencies and organizations which in-volve the performance of work other than in-struction and organized research. Examples of such programs and projects are health service projects and community service pro-grams. However, when any of these activities are undertaken by the institution without outside support, they may be classified as other institutional activities.

d. Other institutional activities means all ac-tivities of an institution except for instruc-tion, departmental research, organized re-search, and other sponsored activities, as de-fined in this section; indirect (F&A) cost ac-tivities identified in this Appendix para-graph B, Identification and assignment of in-direct (F&A) costs; and specialized services facilities described in § 200.468 Specialized service facilities of this Part.

Examples of other institutional activities include operation of residence halls, dining halls, hospitals and clinics, student unions, intercollegiate athletics, bookstores, faculty housing, student apartments, guest houses, chapels, theaters, public museums, and other similar auxiliary enterprises. This definition also includes any other categories of activi-ties, costs of which are ‘‘unallowable’’ to Federal awards, unless otherwise indicated in an award.

2. Criteria for Distribution

a. Base period. A base period for distribu-tion of indirect (F&A) costs is the period during which the costs are incurred. The base period normally should coincide with the fiscal year established by the institution, but in any event the base period should be so selected as to avoid inequities in the dis-tribution of costs.

b. Need for cost groupings. The overall ob-jective of the indirect (F&A) cost allocation process is to distribute the indirect (F&A) costs described in Section B, Identification and assignment of indirect (F&A) costs, to

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