CSA will also determine how the rights in the invention or discovery including rights under any patent in the invention or discovery including right or issued thercon-shall be allocated and administered in order to protect the public interest consistent with "Government Patent Policy" (The President's Memorandum for Heads of Executive Departments and Agencies, August 23, 1971, and statement of Government Patent Policy as printed in 36 FR 16889).

(b) Copyrights. Except as otherwise provided in the terms and conditions of the agreement, the author or the grantee is free to copyright any books, publications, or other copyrightable materials developed in the course of or under a Federal agreement, but CSA shall reserve a royalty-free, nonexclusive and irrevocable right to reproduce, publish, or otherwise use, and to authorize others to use, the work for Government purposes.

§ 1050.130-11 Property acquisition.

(a) Acquisition policy and authorization—(1) Excess Government Property. (i) 40 U.S.C. 483c provides that grantees may be authorized to acquire excess government property provided, that an amount equal to twenty-five percent of the original cost of the excess property be paid to the U. S. Treasury by CSA.

(ii) In order to acquire excess property the grantee must pay, by certified check or money order, an amount equal to twenty-five percent of the acquisition cost of the items received, made payable to the Community Services Administration. The check or money order must accompany the SF 122, Transfer Order Excess Personal Property.

(iii) The appropriate CSA Property Administrator must review and certify all Standard Form 122s and hold acquisition payment until property is received by the grantee. The grantee receiving property must notify the Property Administrator that the property has been received. The receipts and a signed copy of the SF 122 will then be transmitted to the Chief, Finance and Grants Management Division, Community Services Administration, 1200 19th Street, NW., Washington, D.C.

20506. The Finance and Grants Division will make payment to the Treasurer of the United States.

(iv) Title to excess property shall rest in the grantee.

(b) Surplus Government Property. 40 U.S.C. 484 also provides for donation of surplus property within the State.

(1) To any public agency for use in carrying out or promoting for the residents of a given political area one or more public purposes, such as conservation, economic development, education, parks and recreation, public health, and public safety. As used in this subpart the term "public agency" means any state political subdivision thereof including any unit of local government or economic development district or any department, agency, instrumentality thereof, including instrumentalities created by compact or other agreement between states or political subdivisions or any Indian tribe, band, group pueblo, or community located on a State reservation. Also the term "State" means the several States, the District of Columbia, the Ccmmonwealth of Puerto Rico, Virgin Islands, Guam and American Samoa, or

(2) To nonprofit education or public health, institutions or organizations, i.e., medical institutions, hospitals, clinics, health centers, schools, colleges, universities, schools for the mentally retarded, schools for the physically handicapped, child care center, radio and television stations, museums attended by the public, and libraries serving free all residents of a community district, state, or region which are exempt from taxation under section 501 of the Internal Revenue Code of 1964, for purposes of education or public health (including research for any such purpose).

(c) Authorization-(1) GSA excess property. (i) Upon funding of certain grants determined to be eligible for excess property, the appropriate CSA Property Administering office will issue the grantee a letter of authorization to obtain GSA excess property. A Screener's Identification Card, (GSA Form 2946) will also be issued to qualified non-Federal agency Screeners grantee representatives to screen and select excess property. The Property Administrator will issue the Screener's

Identification Card and will inform the screeners in its use. The Screening Card is valid only for the funding period of the grant and must be renewed if and whenever the grant is refunded.

(ii) A record of certified screeners must be maintained by the Property Administrator and the GSA Regional Office kept informed of the changes.

(iii) When the services of an approved non-Federal agency screener are discontinued, the Property Administrator will recover the GSA Form 2946 and forward it to the validating GSA Regional Office for cancellation.

(2) Surplus property. The grantee should contact the representative of the State Agency for surplus property in its state for eligibility application. The Property Administrator in the appropriate CSA administering office will assist. The State Agency for surplus property may assess a service charge for its assistance in acquiring surplus property. Grantees may use CSA grant funds to pay the service charge for surplus property only if it is for use in a CSA-funded program. Surplus property acquired through the state will be accounted for on the grantee's inventory records for CSA property.

(3) The appropriate CSA property Administrator will approve only those requests for excess government property (SF 122) which represents requirements for CSA-funded programs. Requests for property required in conjunction with other Federal or State agency programs will be returned without action.

[45 FR 8299, Feb. 7, 1980; 45 FR 25065, Apr. 14, 1980; 45 FR 53156, Aug. 11, 1980]

Subpart P-Procurement Standards

SOURCE: 45 FR 28137, Apr. 28, 1980, unless otherwise noted.

§ 1050.160-1 Applicability.

This subpart applies to all grants, delegate agency agreements, and other agreements to public and private organizations/agencies under Titles II, IV, and VII of the Economic Opportunity Act of 1964, as amended, when such

entered into, in support of a grant or other agreements. This includes disputes, claims, protests of award, source evaluation of other matters of a contractual nature. Matters concerning violation of law are to be referred to such local, State or Federal authority as may have proper jurisdiction.

(c) Section 626(a) of the Economic Opportunity Act as amended, states that, "Whoever, being an officer, director, agent, or employee of, or connected in any capacity with, any agency, receiving financial assistance under this Act embezzles, willfully misapplies, steals, or obtains by fraud any of the monies, funds, assets, or property which are the subject of a grant or contract of assistance pursuant to this Act, shall be fined not more than $10,000 or imprisoned for not more than two years, or both; but if the amount so embezzled, misapplied, stolen or obtained by fraud does not exceed $100, he shall be fined not more than $1,000 or imprisoned not more than one year or both".

§ 1050.160-6 Standard-code of conduct.

(a) The procuring party shall maintain a code of conduct that shall govern the performance of its board members, employees, and agents engaged in awarding and administering contracts using Federal funds. The code shall provide for disciplinary actions to be applied for violations of the code.

(b) No employee, officer or agent of the procuring party shall participate in the selection or in the award or administration of a contract supported by CSA funds where to his knowledge he or his immediate family, partners, or organization in which he or his immediate family or partner has a financial interest or with whom he is negotiating or has any arrangement concerning prospective employment.

(1) The term "immediate family" includes husband, wife, father, mother, brother, sister, son, daughter, fatherin-law, mother-in-law, brother-in-law, sister-in-law, son-in-law, and daughterin-law.

(2) The term "financial or other interest" includes but is not limited to: (i) Any direct or indirect financial interest in the specific contract, in

cluding a commission or fee, a share of the proceeds, prospect of a promotion or of future employment, a profit, or any other form of financial reward.

(ii) Any of the following interests in the business with which the procuring party is contracting: Ownership; partnership interest or other beneficial interest of five percent or more; ownership of five percent or more of the stock; employment in a managerial capacity; or membership on the board of directors or governing body.

(c) The board members, employees, or agents of the procuring party shall neither solicit nor accept gratuities, favors, or anything of monetary value from contractors, potential contractors, or parties to subagreements.

§ 1050.160-7 Standard-open competition.

(a) All procurement transactions shall be conducted in a manner to provide, to the maximum extent practical, open and free competition.

(b) The procuring party should be alert to organizational conflicts of interest or noncompetitive practices among contractors that may restrict or eliminate competition or otherwise restrain trade. Examples of what is considered to be restrictive of competition include, but are not limited to. (1) Placing unreasonable requirements on firms in order for them to qualify to do business, (2) non-competitive practices between firms, (3) organizational conflicts of interest, and (4) unnecessary experience and bonding requirements. In particular, a contractor that develops or drafts specifications, requirements, a statement of work, an invitation for bids and/or a request for proposals for a particular procurement by a nongovernmental procuring party should be excluded from competing for that procurement.

(c) Solicitations shall clearly set forth all requirements that the bidder/offeror must fulfill in order for the bid/offer to be evaluated.

(1) Awards shall be made to the responsible bidder/offeror whose bid/ offer is responsive to the solicitation and is most advantageous to the procuring party, price and other factors considered

(2) Factors such as discounts, transportation costs, and taxes may be considered in determining the lowest bid. Any and all bids/offers may be rejected when it is in the procuring party's interest to do so and, in the case of governmental procuring parties, such rejections are in accordance with government's applicable law, rules, or regulations.

§ 1050.160-8 Standard-procedures.

The procuring party shall establish written procurement procedures which provide for, at a minimum, the following:

(a) Proposed procurement actions shall follow a procedure to assure that unnecessary or duplicative items are not purchased. Where appropriate, an analysis shall be made of lease and purchase alternatives to determine which would be the most economical, practical procurement. Το foster greater economy and efficiency public grantees are encouraged to enter into State and local intergovernmental agreements for procurement or use of common goods and services.

(b) Solicitations for goods and services shall be based upon a clear and accurate description of the technical requirements for the material, product or service to be procured. Such description shall not, in competitive procurements, contain features which unduly restrict competition. When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a "brand name or equal" description may be used as a means to define the performance or other salient requirements of a procurement, and when so used the specific features of the named brand which must be met by bidders/offerors shall be clearly specified.

(c) The following affirmative steps shall be taken to assure that small and minority businesses are utilized when possible as sources of supplies, equipment, construction, and services. These steps include:

(1) Including qualified small and minority businesses on solicitation lists.

(2) Assuring that small and minority businesses are solicited whenever they are potential sources.

(3) When economically feasible, dividing total requirements into smaller tasks or quantities so as to permit maximum small and minority business participation.

(4) Where the requirement permits, establishing delivery schedules which will encourage participation by small and minority business.

(5) Using the services and assistance of the Small Business Administration, the Office of Minority Business Enterprise of the Department of Commerce and the Community Services Administration as required.

(6) If any subcontracts are to be let, requiring the prime contractor to take the affirmative steps listed above.

(d) The procuring party shall take similar appropriate affirmative action in support of women's business enterprises.

(e) The procuring party is encouraged to procure goods and services from labor surplus areas.

(f) The type of procuring instruments used, e.g., fixed-price contracts, cost reimbursable contracts, purchase orders, incentive contracts, shall be determined by the procuring party but must be appropriate for the particular procurement and for promoting the best interest of the grant project or program involved. The "cost-plus-apercentage-of-cost" and percentage of construction cost methods of contracting shall not be used.

(g) Contracts shall be made only with responsible contractors who possess the potential ability to perform successfully under the terms and conditions of a proposed procurement. Consideration shall be given to such matters as contractor integrity, record of past performance, financial and technical resources or accessibility to other necessary resources.

(h) Any proposed sole source contract, or proposed contract where only one bid or proposal is received by a nongovernmental procuring party, shall be subject to prior approval by the appropriate CSA administering office if the aggregate expenditure for all items procured from the contractor will exceed $5,000 in a 12-month period. In addition, for any procurement contract in which payment will be made by the procuring party in

whole or in part with Title II grant funds, if the proposed contractor does the major part of its business with the procuring party and/or if the proposed contractor is a firm established or controlled by a member or members of the procuring party's staff or board, CSA approval will be based on, but not be limited to, the following:

(1) Evidence that the proposed contractor is a non-profit corporation whose income and assets would, in event of failure of the procuring party, continue to be used to benefit low-income individuals;

(2) Evidence that the hiring and procurement policies of the proposed contractor include the same prohibitions against nepotism and conflict of interest as those found in 160--6 of this subpart;

(3) Inclusion in the contract of a provision that the management, financial, and procurement records of the proposed contractor must be made available for inspection and examination to those parties and on the same basis as required for private nonprofit grantees in Subpart D of this Part;

(4) Submission by the proposed contractor of an audited revenue and expenditures statement and balance sheet dated within the last twelve months; and

(5) Submission of supporting documentation that the prices being charged are competitive with prices being charged for similar items and/or services by other businesses.

(i) Any proposed sole source.contract, or proposed contract where only one bid or proposal is received by a governmental procuring party shall be subject to prior approval by the CSA administering office if the procurement is expected to exceed $10,000. For governmental entities prior approval also is required if the procurement is expected to exceed $10,000 and specifies a brand name product or the procuring party's procedures or operation fails to comply with one or more significant aspects of this rule. If the latter situation exists the CSA administering office will notify the grantee in writing with a copy to the Office of Federal Procurement policy.

(j) The procuring party should make some form of price or cost analysis in

connection with every negotiated procurement action. Price analysis may be accomplished in various ways, including the comparison of price quotations submitted, market prices and similar indices together with discounts. Cost analysis is the review and evaluation of each element of cost proposed by the offeror to determine reasonableness, allocability and allowability. Costs or prices based on estimated costs for contracts shall be allowed only to the extent that cost incurred or cost estimates included in negotiated prices are consistent with Federal cost principles.

(k) Grantees shall maintain records sufficient to detail the significant history of a procurement. These records shall include, but are not necessarily limited to, information pertinent to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the cost or price.

(1) A system for contract administration shall be maintained to ensure contractor conformance with terms, conditions, and specifications of the contract, and to ensure adequate and timely follow-up of all purchases.

[45 FR 28137, Aug 28, 1980, as amended at 45 FR 59153, Sept. 8, 1980]

§ 1050.160-9 Method of procurement for State and local governments.

Procurement under grants shall be made by one of the following methods: Small purchase procedures; competitive sealed bids (formal advertising); competitive negotiation; and/or noncompetitive negotiation.

(a) Small purchase procedures are those relatively simple and informal procurement methods that are sound and appropriate for a procurement of services, supplies or other property, costing in the aggregate not more than $10,000. Grantees shall comply with State or local small purchase dollar limits under $10,000. If small purchase procedures are used for a procurement under a grant, price or rate quotations shall be obtained from an adequate number of qualified

sources.