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(b) In competitive sealed bids (formal advertising), sealed bids are publicly solicited and a firm-fixedprice contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming with all the material terms and conditions of the invitation for bids, is lowest in price.

(1) In order for formal advertising to be feasible, appropriate conditions must be present, including, as a minimum, the following:

(i) A complete, adequate and realistic specification or purchase description is available.

(ii) Two or more responsible suppliers are willing and able to compete effectively for the grantee's business.

(iii) The procurement lends itself to a firm-fixed-price contract, and selection of the successful bidder can appropriately be made principally on the basis of price.

(2) If formal advertising is used for a procurement under a grant, the following requirements shall apply.

(i) A sufficient time prior to the date set for opening of bids, bids shall be solicited from an adequate number of known suppliers. In addition, the invitation shall be publicly advertised.

(ii) The invitation for bids, including specifications and pertinent attachments, shall clearly define items or services needed in order for the bidders to properly respond to the invitation.

(iii) All bids shall be opened publicly at the time and place stated in the invitation for bids.

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(iv) A firm-fixed-price award shall be made by written notice to that responsible bidder whose bid, conforming to the invitation for bids, is lowest. Where specified in the bidding documents, factors such as discounts, transportation costs and life cycle costs shall be considered in determining which bid is lowest. Payment discounts may only be used to determine low bid when prior experience of the grantee indicates that such discounts are generally taken.

(v) Any or all bids may be rejected when there are sound documented business reasons in the best interest of the program.

(c) In competitive negotiation, proposals are requested from a number of sources and the request for proposal is publicized, negotiations are normally conducted with more than one of the sources submitting offers, and either a fixed-price or cost-reimbursable type contract is awarded, as appropriate. Competitive negotiation may be used if conditions are not appropriate for the use of formal advertising. If competitive negotiation is used for a procurement under a grant, the following requirements shall apply:

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(1) Proposal shall be solicited from adequate number of qualified sources to permit reasonable competition consistent with the nature and requirements of the procurement. The request for proposals shall be publicized and reasonable requests by other sources to compete shall be honored to the maximum extent practicable.

(2) The request for proposal shall identify all significant evaluation factors, including price or cost where required and their relative importance.

(3) The grantee shall provide mechanisms for technical evaluation of the proposals received, determinations of responsible offerors for the purpose of written or oral discussions, and selection for contract award.

(4) Award may be made to the responsible offeror whose proposal will be most advantageous to the procuring party, price and other factors considered. Unsuccessful offerors should be notified promptly.

(5) Grantees may utilized competitive negotiation procedures for procurement of Architectural/Engineering professional services, whereby competitor' qualifications are evaluated and the most qualified competitor is selected, subject to negotiation of fair and resonable compensation.

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The requirements relate to provisions that must be included in contracts for procurements that are subject to this regulation. The term "contracts" in this section shall be construed as including subcontracts.

(a) Administrative Remedies for Violations. Contracts in excess of $10,000 shall contain contractual provisions or conditions that will allow for administrative, contractual or legal remedies in instances where contractors violate or breach contract terms, and provide for such remedial actions as appropriate.

(b) Termination Provisions. Contracts in excess of $10,000 shall contain suitable provisions for termination by the procuring party, including the manner by which termination will be effected and the basis for settlement. In addition, such contracts shall describe conditions under which the contract may be terminated for default as well as conditions where the contract may be terminated because of circumstances beyond the control of the contractor.

(c) Bonding Requirements. In all contracts for construction or facility improvement awarded by a nongovernmental procuring part (A-110 only) for more than $100,000, the recipient shall observe the bonding requirements provided for in 45 CFR Part 1050, Subpart C.

(d) Executive Order 11246. All contracts in excess of $10,000 shall con

tain a provision requiring compliance with Executive Order 11246, entitled "Equal Employment Opportunity," as amended by Executive Order 11375, and as supplemented in Department of Labor Regulations (41 CFR Part 60).

(e) Davis-Bacon Act. All construction contracts in excess of $2,000 shall include a provision for compliance with the Davis-Bacon Act (40 U.S.C. 276a to a-7) as supplemented by Department of Labor Regulations (29 CFR Part 5). Under this Act contractors shall be required to pay wages to laborers and mechanics at a rate not less than the minimum wages specified in a wage determination made by the Secretary of Labor. In addition, contractors shall be required to pay wages not less often than once a week. The grantee shall place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation and the award of a contract shall be conditioned upon acceptance of the wage determination. All suspected or reported violations shall be reported to CSA by the grant

ee.

(f) Copeland Act. All contracts or subcontracts in excess of $2,000 for construction or repair shall include a provision for compliance with the Copeland "Anti-Kick Back" Act (18 U.S.C. 874) as supplemented in Department of Labor regulations (29 CFR Part 3). This Act provides that each contractor or subgrantee 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 CSA by the grantee.

(g) Contract Work Hours and Safety Standards Act. All contracts awarded by grantees and subgrantees in excess of $2,000 for construction contracts and in excess of $2,500 for other contracts which involve the employment of mechanics or laborers shall include a provision for 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 103 of the Act, each contractor shall be required to compute the wages of every mechanic and laborer on the basis of a standard work day of 8 hours and a standard workweek of 40 hours. Work in excess of the standard work day or workweek is permissible provided that the worker is compensated at a rate of not less than 11⁄2 times the basic rate of pay for all hours worked in excess of 8 hours in any calendar day or 40 hours in the workweek. 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 to his health and safety as determined under construction, safety and health standards promulgated by the Secretary of labor. 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.

(h) Inventions and Patents. Contracts or subcontracts which may give rise to inventions or patents shall contain a notice to the effect that matters regarding rights to inventions and materials generated under the contract or agreement are subject to the regulations issued by CSA and the grantee. The contractor shall be advised as to the source of additional information regarding these matters.

(i) Access to Records. All negotiated contracts (except those of $10,000 or less) awarded by a nongovernmental procuring party and all negotiated contracts (except those awarded by small purchases procedures) which are made by a public procuring party, shall include a provision to the effect that the procuring party, the Community Services Administration, 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.

(j) Clean Air Act. Contracts and subcontracts of amounts in excess of

$100,000 shall contain a provision that requires the procuring party to agree to comply with all applicable standards, order or regulations, issued pursuant to the Clean Air Act of 1970 (42 U.S.C. 1857 et seq.) and the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.) as amended. Violations shall be reported to the Community Services Administration and the U.S. Environmental Protection Agency Assistant Administrator for Enforcement.

(k) Energy Conservation Act. Contracts shall recognize mandatory standards and policies relating to energy efficiency which are contained in the State energy conservation plan issued in compliance with the Energy Policy and Conservation Act (Pub. L. 94-165).

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§ 1060.1-1 Applicability of this subpart.

This subpart applies to all Community Action Agencies, Limited Purpose Agencies, and State Economic Opportunity Offices assisted by OEO under Title II and III of the Economic Opportunity Act of 1964, as amended.

§ 1060.1-2 Policy.

(a) General. (1) An essential objective of community action is extensive and intensive participation by the poor and residents of poverty areas in the planning, conduct, and evaluation of programs which affect their lives.

(2) Without the steady growth of such participation in both quantity and quality, community action cannot succeed. The constituency of the Community Action Program and its grantees is poor people.

(3) The Community Action Program is based upon the recognition that poor people possess talents and resources essential to reducing the problems of poverty. They often have unique insight into their own problems and valuable knowledge about the effect on their own lives of the programs designed for their benefit. Their participation in the development of those programs is essential to building understanding and the will of the entire community to bring an end to poverty and to achieve effective communication between the poor and the nonpoor. Far more relevant, sensitive, and effective programs and plans will come out of their participation.

(4) In its provisions regarding participation by the poor, the Economic Opportunity Act as amended in 1967 clearly recognizes that successful community action must help enlist and assure effective use of these resources of the poor. It gives more specific form to the often expressed aim of community action to help the poor help themselves. Through the formation of their own organizations, they can effectively speak directly for their interests and views within their immediate areas and within the broader community and work together to solve their problems. The EOA authorizes assistance to those programs which will aid the poor to participate more fully in the affairs of their communities.

(5) OEO vigorously supports the emphasis of the Economic Opportunity Act on participation of the poor and requires meaningful participation in all programs funded with community action monies. It will offer this support through:

(i) The funding of grantees who are carrying out the purposes of this subpart and the provision of frequent review to see that direct involvement of poor people is maintained and increasing;

(ii) The requirement that all funding applications must explicitly indicate a course of action which will lead to improvement in the involvement of poor people in the community action agency (CAA) program;

(iii) Policy, guidance, training and technical assistance to help grantees to effectively involve poor people;

(iv) Direct efforts to encourage other agencies, organizations and groups at the national, state and local levels to adopt strong participation of the poor policies for programs affecting poor people.

(6) To encourage and support effective participation by the poor, in keeping with the CAP mission and objectives, OEO has established the following minimum requirements for community action grantees. These are minimum requirements. OEO will continue to do everything it can to assist grantees in their local efforts to exceed these basic requirements. The quality of participation, not the quantity, and continuing improvement are the common goals of OEO and its community action grantees. Mere gestures or empty ritual are no substitute.

(b) Community action agencies—(1) Basic responsibilities. Every CAA has a fundamental responsibility to encourage, assist, and strengthen the ability of the poor in the areas served by the CAA to play major roles in the organization; program planning; goal setting; determination of priorities; decisions concerning budgeting and financial management; key decisions concerning hiring of personnel, selection criteria, personnel policies, the number and type of non-professional jobs, training, and career development programs; and evaluation of programs

affecting their lives. Decisions affecting organization can include what policymaking boards and committees are established and what their roles are in respect to each other, to paid staff, and to any delegate agency staff and boards; which programs will be delegated; and which staff unit or other group will have administrative responsibility for which programs. The fundamental responsibility of the CAA includes:

(i) Seeking and bringing about ways to improve its own effectiveness as a channel through which the poor, local government and private groups can communicate, plan, and act together in partnership. In such a partnership the poor must have a strong voice or role, both directly and through representatives whom they have chosen.

(ii) Providing the representatives of the poor with the tools and the support (guidance, training, and staff assistance) which will permit them to participate meaningfully in the affairs of the CAA, and in all of its programs and delegate agencies.

(iii) Encouraging the development of effective local organizations established and controlled by residents of poverty neighborhoods or areas. Community action agencies are expected to provide training, technical assistance and staff resources to enable the poor to develop, administer, and participate effectively in local area programs and to enter into the broader community discussion of poverty problems and solutions.

(iv) Providing employment for poor persons in all phases of the community action program.

(v) Continually insuring that delegate agencies involve poor persons in the planning, conduct and evaluation of delegated programs.

(vi) Working for the acceptance by other public and private agencies and organizations serving the community of effective and growing involvement of the poor in the planning, conduct and evaluation of all activities which affect them and their inclusion in career jobs in the agencies.

(2) Representation and involvement on CAA Boards. (i) Every CAA has the obligation to assure that at least onethird of the membership of the CAA

governing or administering board are representatives of the poor and residents of the areas to be served by the CAA chosen in a democratic way. (Community Action Memo 81,' contained in the booklet "Organizing Communities for Action," sets forth on pp. 12-13 the policy for implementing this legislative requirement. The requirement that CAAS shall establish procedures in their bylaws, under which community agencies and representative groups of the poor which feel themselves inadequately represented on the CAA Board may petition for adequate representation, is spelled out on pp. 14-15.)

(ii) In addition to the provision for public board meetings publicized and conducted in accordance with OEO Instruction 7042-1,1 the CAA is responsible for setting up the following procedures to make certain the representatives of the poor on the board are able to participate meaningfully:

(a) The proportion of democratically selected representatives of the poor on any executive committee and on all policy making committees and other subcommittees of the CAA shall fairly reflect their proportion on the CAA Board itself;

(b) The time and place for any board, committee, advisory committee or neighborhood council meeting shall be so fixed as to insure that it will be possible and convenient for the representatives of the poor to attend;

(c) A quorum for any board or committee meeting shall be established and it shall be at least 50 percent of the membership of that board or committee;

(d) Proxy voting is prohibited;

(e) Advance notice of and the agenda (an outline of matters to be considered) for any board or committee meetings shall be provided individually to all members in writing 5 days before the meeting. In addition, notices should be given to the local public media and posted in all neighborhood or community centers along with the agenda;

'Not filed with the Office of the Federal Register.

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