Sample Required Federal Contract Provisions.pdf

Required Federal Contract Provisions

1. Equal Employment Opportunity – This construction contract has been awarded in excess of $10,000 and is in compliance with Executive Order 11246, “Equal

Employment Opportunity,” as amended by E.O. 11375, “Amending Executive Order

11246 Relating to Equal Employment Opportunity,” and as supplemented by regulations at 41 CFR part 60, “Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor.”

2. Copeland “Anti-Kickback” Act (18 U.S.C. 874 and 40 U.S.C. 276c) – This construction and any subcontracts in excess of $2,000 for construction or repair are in compliance with the Copeland “Anti-Kickback” Act (18 U.S.C. 874), as supplemented by Department of Labor regulations (29 CFR part 3, “Contractors and

Subcontractors on Public Building or Public Work Financed in Whole or in Part by

Loans or Grants from the United States”). Furthermore, the Recipient agrees to comply with the Copeland Anti-Kick Back Act (18 US 874 et seq.) and its implementing regulations of the US Department of Labor at 29 CFR 5. The Act provides that each contractor or subrecipient shall 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 compensation to which he is otherwise entitled. All suspected or reported violations shall be reported to the Federal awarding agency.

3. Davis-Bacon Act, as amended (40 U.S.C. 276a to a-7) – 40 USC, Chapter 3, Section

276a-276a-5; and 29 CFR Parts 1, 3, 5, 6 and 7 are triggered when construction, renovation or repair work over $2,000 is financed in whole or in part with CDBG funds.

It requires that workers receive no less than the prevailing wages being paid for similar work in the same area. Davis-Bacon does not apply to the rehabilitation of residential structures containing less than eight (8) units or force account labor (construction carried out by employees of the Subrecipient). The subrecipient shall maintain documentation that demonstrates compliance with hours and wage requirements.

Such documentation shall be made available to the Corporation for review upon request.

4. Contract Work Hours and Safety Standards Act (40 U.S.C. 327-330) – This construction contract(s), if awarded in excess of $100,000 is in compliance with

Sections 103 and 107 of the Contract Work Hours and Safety Standards Act (40

U.S.C. 327-330), as supplemented by Department of Labor regulations (29 CFR part

5). Under Section 102 of the Act, each contractor shall 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 compensated at a rate of not less than 1 ½ times the basic rate of pay for all hours worked in excess of 40 hours in the work week. Section 107 of the Act is applicable to construction work and provides that no laborer or mechanic shall be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous on federal and federally financed and assisted construction projects. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence.

5. Patent Rights to Inventions Made Under a Contract or Agreement – This construction contract and agreements for the performance of experimental, developmental, or research work shall provide for the patent rights of the Federal

Government and the Recipient in any resulting invention in accordance 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 issued by the awarding agency.

6. Clean Air Act (42 U.S.C. 7401 et seq.) and the Federal Water Pollution Control

Act (33 U.S.C. 1251 et sea.), as amended – This construction contract and subcontracts of amounts in excess of $100,000 are in compliance 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,). Violations shall be reported to the Federal awarding agency and the Regional

Office of the Environmental Protection Agency (EPA).

7. Section 3 12 U.S.C. 1701u of The Housing and Community Development Act of

1968, as amended – This construction contract, if in excess of $200,000 is in compliance with Section 3 and the contractor shall include the clause set forth at 24

CFR 135.38 as provided in the Section 3 Rider.

8. Additional Contract Provisions - The following provisions are also included.

a. This construction contract, if in excess of the most restrictive small purchase threshold (Federal/State/Local) contains contractual provisions or conditions that allow for administrative, contractual, or legal remedies in instances by which a contractor violates or breaches the contract terms and provides for such remedial actions as may be appropriate.

Location of clause_________________________________________________.

b. This construction contract, if in excess of $10,000 contains suitable provisions for termination by the Recipient, including the manner by which such termination shall be affected and the basis for settlement.

c. Except as otherwise required by statute, an award that requires the contracting (or subcontracting) for construction or facility improvements shall provide for the

Recipient to follow its own requirements relating to bid guarantees, performance bonds, and payment bonds unless the construction contract or subcontract exceeds $100,000. For those contracts or subcontracts exceeding $100,000, the

OCR may accept the bonding policy and requirements of the Recipient, provided the OCR has made a determination that the Federal Government’s interest is adequately protected. If such a determination has not been made, the minimum requirements shall be as follows:

i. A bid guarantee from each bidder equivalent to five percent of the bid price.

The “bid guarantee” shall consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that the bidder shall, upon acceptance of this bid, execute such contractual documents as may be required within the time specified.

Location of Bid Bond ____________________________________________.

ii. A performance bond on the part of the contractor for 100 percent of the contract price. A “performance bond” is one executed in connection with a contract to secure fulfillment of all the contractor’s obligations under such contract.

Location of Performance Bond _____________________________________.

iii. A payment bond on the part of the contractor for 100 percent of the contract price. A “payment bond” is one executed in connection with a contract to assure payment as required by statute of all persons supplying labor and material in the execution of the work provided for in the contract.

Location of Payment Bond ________________________________________.

iv. Where bonds are required in the situations described herein, the bonds shall be obtained from companies holding certificates of authority as acceptable sureties pursuant to 31 CFR part 223, “Surety Companies Doing Business with the United States.”

d. All negotiated contracts awarded by Recipients or subrecipients shall include a provision to the effect that the Recipient or subrecipient, the OCR, the Comptroller

General of the United States, or any of their duly authorized representatives, shall have access to any books, documents, papers and records of the contractor which are directly pertinent to a specific program for the purpose of making audits, examinations, excerpts and transcriptions.

e. To the fullest extent permitted by law, the Recipient and Subrecipient shall and hereby agrees to hold harmless, defend (with counsel acceptable to the

Corporation) and indemnify the Corporation and each and all of its successors, affiliates, or assigns, and any of their employees, officers, directors, attorneys, consultants, agents, managers, and affiliates, from and against any and all damages, costs, attorneys’ fees, claims, expenses, injuries, property damage, causes of action, violations of law, violations of this Agreement, and losses of any form or nature arising from or related to the conduct of Subrecipient in the performance of the efforts called for in this Agreement. This indemnity shall expressly include, but is not limited to, the obligation of Subrecipient to indemnify and reimburse the Corporation for any and all attorneys’ fees and other litigation or dispute resolution costs incurred or to be incurred in the Corporation’s enforcement of this Agreement or any portion thereof against Subrecipient or otherwise arising in connection with Subrecipient including but not limited to

Subrecipient’s breach, violation, or other non-compliance with this Agreement.

This clause shall survive indefinitely the termination of this Agreement for any reason.

f. This construction contract and all subcontracts acknowledge that all parties shall are bound by, and will comply with all applicable Federal, State, and local laws and regulations, including but not limited to 2 CFR Part 200 Appendix II (Contract

Provisions for non-Federal Entity Contracts Under Federal Awards) and 24 CFR

Parts 570.

Location of clause_________________________________________________.

9. Anti- Job Pirating 24CFR 570.482 - All Economic Development, Small Business, and Microenterprise contracts shall contain a provision acknowledging that

Community Development Block Grant Funds will not be used to assist directly the relocation of any industrial or commercial plant, facility, or operation, from one area to another area, if the relocation is likely to result in a significant loss of employment in the labor market area (LMA) from which the relocation occurs. For additional information, see the HUD CDBG Memorandum on Job Pirating Activities

(https://www.hudexchange.info/resource/2219/cdbg-memorandum-job-piratingactivities/) and 24 CFR 570.482(f).

Location of clause_________________________________________________