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(4) Indirect cost rate proposals, cost cipient's indirect cost rate or the suballocations plans, and related records, recipient submits to the recipient the for which retention requirements are proposal, plan, or other computation to specified in 8600.153(g).

form the basis for negotiation of the (c) Copies of original records may be rate, then the 3-year retention period substituted for the original records if for its supporting records starts on the authorized by DOE.

date of such submission. (d) DOE shall request transfer of cer- (2) If not submitted for negotiation. If tain records to its custody from recipi- the recipient is not required to submit ents when it determines that the to the cognizant Federal agency or the records possess long term retention subrecipient is not required to submit value. However, in order to avoid dupli- to the recipient the proposal, plan, or cate recordkeeping, DOE may make ar other computation for negotiation purrangements for recipients to retain any poses, then the 3-year retention period records that are continuously needed for the proposal, plan, or other comfor joint use.

putation and its supporting records (e) DOE, the Inspector General, starts at the end of the fiscal year (or Comptroller General of the United other accounting period) covered by States, or any of their duly authorized the proposal, plan, or other computarepresentatives, have the right of time- tion. ly and unrestricted access to any (h) If, by the terms and conditions of books, documents, papers, or other the award, the recipient or subrecords of recipients that are pertinent recipient to the awards, in order to make audits (1) Is accountable for program inexaminations, excerpts, transcripts and come earned or received after the end copies of such documents. This right of the project period or after the termialso includes timely and reasonable ac- nation of an award or subaward, or cess to a recipient's personnel for the (2) If program income earned during purpose of interview and discussion re- the project period is required to be aplated to such documents. The rights of plied to costs incurred after the end of access in this paragraph are not lim- the project period or after termination ited to the required retention period, of an award or subaward, the record rebut shall last as long as records are re tention period shall start on the last tained.

day of the recipient's or subrecipient's (f) Unless required by statute, DOE fiscal year in which such income was shall place no restrictions on recipients earned or received or such costs were that limit public access to the records incurred. All other program income of recipients that are pertinent to an records shall be retained in accordance award, except when DOE can dem with $ 600.153(b). onstrate that such records shall be kept confidential and would have been

Termination and Enforcement exempted from disclosure pursuant to the Freedom of Information Act (5

$ 600.160 Purpose of termination and U.S.C. 552) if the records had belonged

enforcement. to DOE.

Sections 600.161 and 600.162 set forth (g) Paragraphs (g)(1) and (g)(2) of this uniform suspension, termination and section apply to the following types of enforcement procedures. documents, and their supporting records: indirect cost rate computa

$ 600.161 Termination. tions or proposals, cost allocation (a) Awards may be terminated in plans, and any similar accounting com- whole or in part only if paragraph (a) putations of the rate at which a par- (1), (2) or (3) of this section apply. ticular group of costs is chargeable (1) By DOE, if a recipient materially (such as computer usage chargeback fails to comply with the terms and conrates or composite fringe benefit ditions of an award. rates).

(2) By DOE with the consent of the (1) If submitted for negotiation. If the recipient, in which case the two parties recipient submits to the Federal agen- shall agree upon the termination concy responsible for negotiating the re- ditions, including the effective date and, in the case of partial termination, from obligations incurred by the rethe portion to be terminated.

cipient during a suspension or after (3) By the recipient upon sending to termination of an award are not allowDOE written notification setting forth able unless the awarding agency exthe reasons for such termination, the pressly authorizes them in the notice effective date, and, in the case of par- of suspension or termination or subsetial termination, the portion to be ter quently. Other recipient costs during minated. However, if DOE determines suspension or after termination which in the case of partial termination that are necessary and not reasonably the reduced or modified portion of the avoidable are allowable if paragraph (c) award will not accomplish the purposes (1) and (2) of this section apply. for which the award was made, it may (1) The costs result from obligations terminate the award in its entirety which were properly incurred by the reunder either paragraph (a) (1) or (2) of cipient before the effective date of susthis section.

pension or termination, are not in an(b) If costs are allowed under an

ticipation of it, and in the case of a teraward, the responsibilities of the re

mination, are noncancellable. cipient referred to in $600.171(a), in

(2) The costs would be allowable if cluding those for property management

the award were not suspended or exas applicable, shall be considered in the

pired normally at the end of the fundtermination of the award, and provi

ing period in which the termination sion shall be made for continuing re

takes effect. sponsibilities of the recipient after ter

(d) Relationship to debarment and mination, as appropriate.

suspension. The enforcement remedies 8600.162 Enforcement.

identified in this section, including

suspension and termination, do not (a) Remedies for noncompliance. If a

preclude a recipient from being subject recipient materially fails to comply

to debarment and suspension under 10 with the terms and conditions of an

CFR part 1036. award, whether stated in a Federal statute, regulation, assurance, applica AFTER-THE-AWARD REQUIREMENTS tion, or notice of award, DOE may, in addition to imposing any of the special 8600.170 Purpose. conditions outlined in $ 600.114, take

Sections 600.171 through 600.173 conone or more of the following actions, as

tain closeout procedures and other proappropriate in the circumstances.

cedures for subsequent disallowances (1) Temporarily withhold cash pay

and adjustments. ments pending correction of the deficiency by the recipient or more severe

8600.171 Closeout procedures. enforcement action by DOE. (2) Disallow (that is, deny both use of

(a) Recipients shall submit, within 90 funds and any applicable matching

calendar days after the date of complecredit for) all or part of the cost of the tion of the award, all financial, peractivity or action not in compliance.

formance, and other reports as required (3) Wholly or partly suspend or ter

by the terms and conditions of the minate the current award.

award. DOE may approve extensions ) Withhold further awards for the when requested by the recipient. project or program.

(b) Unless DOE authorizes an exten(5) Take other remedies that may be sion, a recipient shall liquidate all oblegally available.

ligations incurred under the award not (b) Hearings and appeals. In taking later than 90 calendar days after the an enforcement action, DOE shall pro funding period or the date of complevide the recipient an opportunity for tion as specified in the terms and conhearing, appeal, or other administra- ditions of the award or in agency imtive proceeding to which the recipient plementing instructions. is entitled under any statute or regula- (c) DOE shall make prompt payments tion applicable to the action involved. to a recipient for allowable reimburs

(c) Effects of suspension and termi- able costs under the award being closed nation. Costs of a recipient resulting out.

(d) The recipient shall promptly re- tled under the terms and conditions of fund any balances of unobligated cash the award constitute a debt to the Fedthat DOE has advanced or paid and eral Government. If not paid within a that is not authorized to be retained by reasonable period after the demand for the recipient for use in other projects. payment, DOE may reduce the debt by OMB Circular A-129 governs paragraph (a) (1), (2) or (3) of this secunreturned amounts that become de tion. linquent debts.

(1) Making an administrative offset (e) When authorized by the terms and against other requests for reimburseconditions of the award, DOE shall

ments. make a settlement for any upward or

(2) Withholding advance payments downward adjustments to the Federal

otherwise due to the recipient. share of costs after closeout reports are

(3) Taking other action permitted by received.

statute. (f) The recipient shall account for

(b) Except as otherwise provided by any real and personal property ac

law, DOE shall charge interest on an quired with Federal funds or received

overdue debt in accordance with 4 CFR from the Federal Government in ac

Chapter II, “Federal Claims Collection cordance with 88 600.131 through 600.137.

Standards." (g) In the event a final audit has not been performed prior to the closeout of

ADDITIONAL PROVISIONS an award, DOE shall retain the right to recover an appropriate amount after $ 600.180 Purpose. fully considering the recommendations

The purpose of “Additional Provion disallowed costs resulting from the final audit.

sions' is to provide additional rules for

certain types of recipients which are $ 600.172 Subsequent adjustments and otherwise covered by 10 CFR part 600, continuing responsibilities.

subpart B when they are performing (a) The closeout of an award does not

under Small Business Innovation Reaffect any of the following.

search grants. (1) The right of DOE to disallow costs

8 600.181 Special provisions for Small and recover funds on the basis of a

Business Innovation Research later audit or other review.

Grants. (2) The obligation of the recipient to return any funds due as a result of

(a) General. This section contains later refunds, corrections, or other

provisions applicable to the Small transactions.

Business Innovation Research (SBIR) (3) Audit requirements in $600.126.

Program. This codifies six class devi(4) Property management require

ations pertaining to the SBIR program. ments in $8 600.131 through 600.137.

(b) Provisions Applicable to Phase I (5) Records retention as required in SBIR Awards. Phase I SBIR awards $600.153.

may be made on a fixed obligation (b) After closeout of an award, a rela- basis, subject to the following requiretionship created under an award may ments: be modified or ended in whole or in (1) While proposed costs must be anapart with the consent of DOE and the lyzed in detail to ensure consistency recipient, provided the responsibilities with applicable cost principles, inof the recipient referred to in para- curred costs are not subject to regulagraph 600.173(a), including those for tion by the standards of cost allowproperty management as applicable, ability; are considered and provisions made for (2) Although detailed budgets are continuing responsibilities of the re- submitted by a recipient and reviewed cipient, as appropriate.

by DOE for purposes of establishing the

amount to be awarded, budget cat$ 600.173 Collection of amounts due.

egories are not stipulated in making an (a) Any funds paid to a recipient in award; excess of the amount to which the re- (3) Prior approval from the DOE for cipient is finally determined to be enti- rebudgeting among categories by the

(3) A fee or profit may be paid to SBIR recipients.



recipient is not required. Prior approval from DOE is required for situations involving sole source or single bid procurements as provided in 8600.181(d)(2). Prior approval from DOE is also required for any variation from the requirement under the SBIR program that no more than one-third of Phase I work can be done by sub-contractors or consortium partners;

(4) Pre-award expenditure approval is not required;

(5) Payments are to be made in the same manner as other financial assistance (see $ 600.122), except that, when determined appropriate by the cognizant program official and contracting officer, a lump sum payment may be made. If a lump sum payment is made, the award must be conditioned to require the recipient to return to DOE amounts remaining unexpended at the end of the project if those amounts exceed $500;

(6) Recipients will certify in writing to the Contracting Officer at the end of the project that the activity was completea or the level of errort was ex pended. Should the activity or effort not be carried out, the recipient would be expected to make appropriate reimbursements;

(7) Requirements for periodic reports may be established for each award so long as they are consistent with $ 600.151;

(8) Changes in principal investigator or project leader, scope of effort, or institution, require the prior approval of DOE.

(C) Provision Applicable to Phase II SBIR Awards. Phase II SBIR awards may be made for a single budget period of 24 months.

(d) Provisions Applicable to Phase I and Phase II SBIR Awards.

(1) The prior approval of the cognizant DOE Contracting Officer is required before the final budget period of the project period may be extended without additional funds.

(2) A recipient or subrecipient must receive the prior written approval of the awarding party before entering into any sole source contract or a contract where only one bid or proposal is received when the value of the contract is expected to exceed $25,000 in the aggregate.

All contracts, awarded by a recipient including small purchases, shall contain the following provisions as applicable:

1. Equal Employment Opportunity-All contracts shall contain a provision requiring compliance with E.O. 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. 2760)All contracts and subgrants in excess of $2000 for construction or repair awarded by recipients and subrecipients shall include a provision for 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''). 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. The recipient shall report all suspected or reported violations to the Federal awarding agency.

3. Davis-Bacon Act, as amended (40 U.S.C. 276a to a-7)—When required by Federal program legislation, all construction contracts awarded by the recipients and subrecipients of more than $2000 shall include a provision for compliance with the Davis-Bacon Act (40 U.S.C. 276a to a-7) and as supplemented by Department of Labor regulations (29 CFR part 5, “Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction"). 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 than once a week. The recipient 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 the acceptance of the wage determination. The recipient shall report all suspected or reported violations to the Federal awarding agency.

4. Contract Work Houts and Safety Standards Act (40 U.S.C. 327333)Where applicable, all contracts awarded by recipients in excess of

nection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the recipient.

8. Debarment and Suspension (E.O.S 12549 and 12689) - Contract awards that exceed the small purchase threshold and certain other contract awards shall not be made to parties listed on the nonprocurement portion of the General Services Administration's List of parties Excluded from Federal Procurement or Nonprocurement Programs in accordance with E.O.s 12549 and 12689, “Debarment and Suspension." This list contains the names of parties debarred, suspended, or otherwise excluded by agencies, and contractors declared ineligible under statutory or regulatory authority other than E.O. 12549. Contractors with awards that exceed the small purchase threshold shall provide the required certification regarding its exclusion status and that of its principals.

Subpart C-Uniform Administrative

Requirements for Grants and
Cooperative Agreements to
State and Local Governments

S2000 for construction contracts and in excess of $2500 for other contracts that involve the employment of mechanics or laborers shall include a provision for compliance with sections 102 and 107 of the Contract Work

s and Safety Standards Act (40 U.S.C. 327-333), 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 142 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. 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. Rights to Inventions Made Under a Contract or Agreement-Contracts or agreements for the performance of experimental, developmental, or research work shall provide for the 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 seq.), as amended-Contracts and subgrants of amounts in excess of $100,000 shall contain a provision that requires the recipient to agree to comply 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. Byrd Anti-Lobbying Amendment (31 U.S.C. 1352) Contractors who apply or bid for an award of $100,000 or more shall 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 attempting 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 obtaining any Federal contract, grant or any other award covered by 31 U.S.C. 1352. Each tier shall also disclose any lobbying with non-Federal funds that takes place in con

SOURCE: 53 FR 8045, 8087, Mar. 11, 1988, unless otherwise noted. Redesignated at 59 FR 53264, Oct. 21, 1994.

EDITORIAL NOTE: For additional information, see related documents published at 49 FR 24958, June 18, 1984, 52 FR 20178, May 29, 1987, and 53 FR 8028, Mar. 11, 1988.


$ 600.200 Purpose and scope of this

subpart. This subpart establishes uniform administrative rules for Federal grants and cooperative agreements and subawards to State, local and Indian tribal governments.

$ 600.201 Scope of $8600.200 through

600.205. This section contains general rules pertaining to this part and procedures for control of exceptions from this subpart.

$ 600.202 Definitions.

As used in this part:

Accrued expenditures mean the charges incurred by the grantee during a given period requiring the provision of funds for: (1) Goods and other tangible property received; (2) services performed by employees, contractors, subgrantees, subcontractors, and other

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