Federal Funds Addendum.pdf

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Veracode Static and Dynamic Code Analysis
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BPM051851
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Maryland

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This is a Federal Funds Addendum document outlining additional terms and conditions applicable to contracts utilizing federal funding. The addendum establishes compliance requirements across multiple federal statutes and regulations, including the Copeland Anti-Kickback Act, which prohibits contractors and subcontractors from inducing employees to relinquish compensation and requires weekly wage statements for covered work. The document also addresses intellectual property rights, specifying that non-federal entities retain title to intangible property acquired under federal awards while the federal government reserves royalty-free, nonexclusive, and irrevocable rights to reproduce and use developed works for federal purposes. Additional requirements include debarment and suspension compliance through System for Award Management (SAM) screening, adherence to anti-lobbying restrictions for federal contracts and grants exceeding $100,000, and compliance with Americans with Disabilities Act protections.

The addendum further mandates drug-free workplace certification for federal grant recipients, with contractors required to maintain controlled substance-free environments and employees obligated to report criminal drug convictions within five days. For agreements containing federal funds exceeding $150,000, contractors must comply with the Clean Air Act and Federal Water Pollution Control Act, reporting violations to designated federal agencies and the Environmental Protection Agency. The document also incorporates restrictions from the 2019 National Defense Authorization Act Section 889, prohibiting the use of federal funds for covered telecommunications equipment or services produced by specified Chinese entities including Huawei Technologies, ZTE Corporation, Hytera Communications, Hangzhou Hikvision Digital Technology, and Dahua Technology Company, or any subsidiaries or affiliates thereof.

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ADDENDUM

ADDITIONAL TERMS AND CONDITIONS FOR CONTRACTS USING

FEDERAL FUNDS

1. Copeland “Anti-Kickback” Act, 40 U.S.C. § 276C AND 18 U.S.C. § 874. The Contractor or subcontractor is precluded from inducing an employee to give up any part of the compensation to which he or she is entitled under his or her contract of employment under the “Anti-Kickback” section of the Act. The Act also requires the Contractor and subcontractor to submit a weekly statement of the wages paid to each employee performing on covered work during the preceding payroll period.

2. Royalty-Free Rights to Use Software or Documentation Developed, 2 C.F.R. Part

200.315 (Intangible Property).

(a) Title to intangible property (see §200.59 Intangible Property) acquired under a federal award vests upon acquisition in the non-Federal entity. The non-Federal entity must use that property for the originally-authorized purpose and must not encumber the property without approval of the Federal awarding agency. When no longer needed for the originally authorized purpose, disposition of the intangible property must occur in accordance with the provisions in §200.313

Equipment paragraph (e).

(b) The non-Federal entity may copyright any work that is subject to copyright and was developed, or for which ownership was acquired, under a federal award. The

Federal awarding agency reserves a royalty-free, nonexclusive and irrevocable right to reproduce, publish, or otherwise use the work for federal purposes and to authorize others to do so.

(c) The non-Federal entity is subject to applicable regulations governing patents and inventions, including government wide regulations issued by the Department of

Commerce at 37 C.F.R. Part 401, “Rights to Inventions Made by Nonprofit

Organizations and Small Business Firms Under Government Awards, Contracts and Cooperative Agreements.”

(d) The Federal government has the right to:

(1) Obtain, reproduce, publish, or otherwise use the data produced under a federal award; and

(2) Authorize others to receive, reproduce, publish, or otherwise use such data for federal purposes.

3. Debarment, Suspension and other responsibility matters (Executive Orders 12549 and

12689) (see 2 C.F.R. 180.220 and 45 C.F.R. 75.212). A party listed on the government-wide exclusions in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 C.F.R. Part 180 that implement Executive Orders 12549 (3 C.F.R. Part 1986

Comp., p. 189) and 12689 (3 C.F.R. Part 1989 Comp., p. 235), “Debarment and Suspension” is not eligible to perform work under this MOU. SAM Exclusions contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549.

4. Anti-Lobbying Act: This Act prohibits the recipients of federal contracts, grants, and loans from using appropriated funds for lobbying the Executive or Legislative branches of the

Federal government in connection with a specific contract, grant, or loan. As required by

Section 1352, Title 31 of the U.S. Code and implemented at 2 CFR 200, Subpart F, Appendix

II, for persons entering into a grant or cooperative agreement over $100,000, as defined at 31

U.S.C. 1352, the applicant certifies that:

(a) No federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, 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 making of any federal grant, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal grant or cooperative agreement;

(b) 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 this federal grantor o cooperative agreement, the undersigned shall complete and submit Standard

Form – LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions;

(c ) The undersigned shall require that the language of this certification be included in the award documents for all sub-awards at all tiers (including sub-grants, contracts under grants and cooperative agreements, and subcontracts) and that all sub-recipients shall certify and disclose accordingly.

5. Americans with Disabilities Act: This Act (28 CFR Part 35, Title II, Subtitle A) prohibits discrimination on the basis of disability in all services, programs, and activities provided to the public and State and local governments, except public transportation services.

6. Drug Free Workplace Statement. The Federal government implemented 41 U.S. Code §

8103, drug-free workplace requirements for federal grant recipients, in an attempt to address the problems of drug abuse on the job. Therefore, in order to remain a responsible source for government contracts, the following guidelines have been adopted:

(a) The unlawful manufacture, distribution, dispensation, possession or use of a controlled substance is prohibited in the work place.

(b) Violators may be terminated or requested to seek counseling from an approved rehabilitation service.

(c) Employees must notify their employer of any conviction of a criminal drug statute no later than five days after such conviction.

(c) Contractors of federal agencies are required to certify that they will provide drug-free workplaces for their employees. Transactions subject to the suspension/debarment rules (covered transactions) include grants, subgrants, cooperative agreements, and prime contracts under such awards. Subcontracts are not included.

7. Clean Air and Federal Water Pollution Control Acts (If Applicable). This agreement contains federal funds in excess of $150,000. The Contractor, therefore, agrees to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42

U.S.C. §§7401-7671q.) and the Federal Water Pollution Control Act (33 U.S.C. §§1251-

1387), as amended. Violations must be reported to the DHS Contract Monitor, the federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA).

8. Notice of Requirements Under the National Defense Authorization Act of 2019 (NDAA).

The NDAA prohibits the use of federal funds to cover the cost of any covered telecommunications equipment or services. Section 889 of the NDAA defines “covered telecommunications or services” to mean telecommunications and video surveillance equipment or services produced by Huawei Technologies Company, ZTE Corporation, Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, or

Dahua Technology Company (or any subsidiary or affiliate of such entities). “Covered telecommunications equipment or services” also includes telecommunications or video surveillance equipment or services provided by an entity that the Secretary of Defense, in consultation with the Director of the National Intelligence or the Director of the Federal

Bureau of Investigation, reasonably believes to be an entity that is owned or controlled by the government of a covered foreign country, i.e. The Republic of China.

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