merit between, the optimum balance among, the various programs for economic development; analyzes for the Administration reports and other information on existing economic development programs in the United States and other countries; evaluates the effectiveness of economic development projects, activities, and programs in achieving the objectives of the Economic Development and Appalachian Assistance acts and the goals of the Economic Development Administration.

§ 301.38 Office of Economic Research.

The Office of Economic Research directs and conducts a program of internal and external research to meet the needs of the Administration; arranges for research by other Government agencies or by private organizations and monitors the performance of such research; encourages and stimulates research on economic development both in and out of Government, and compiles and makes available reports on the progress of such research; coordinates, reviews, and analyzes, and disseminates research findings; plans, develops, and organizes seminars, institutes, workshops and training sessions; establishes a group to study the effect of Government procurement, scientific, technical, and other related policies on regional economic development.

§ 301.39 Office of the Chief Counsel.

The Office of the Chief Counsel renders all necessary legal services, subject to the provisions of Department Order 104, and has primary responsibility for the preparation, coordination, and clearance of all legislation, regulations, and external orders subject to the provisions of applicable Department and Administrative Orders.

rection of the Assistant Secretary, and serves as the primary point of coordination for continuing liaison with the Congress and in collaboration with the Special Assistant to the Secretary for Congressional Relations.

§ 301.42 Office of Equal Opportunity.

The Office of Equal Opportunity is responsible for the following activities except as relate to employment opportunity within EDA, which is the responsibility of the Office of Administration; Advise the Assistant Secretary in the development and implementation of policy and guidance affecting equality of opportunity connected with economic development programs; maintain liaison with Federal, State, and local governmental organizations and with nongovernmental organizations to coordinate and assist in planning operations aimed at achieving nondiscrimination and equality of opportunity; provide leadership, staff services and advice in matters affecting nondiscrimination to economic development program units, to organizations obligated as participants in an economic development program to achieve nondiscrimination, and to ultimate beneficiaries of economic development program activities; conduct, sponsor, or coordinate meetings, conferences, and training courses for equal employment specialists, program managers, and executives to achieve nondiscrimination in economic development programs; establish effective systems throughout EDA to obtain and monitor accurate reports concerning the program of equality of opportunity and assure conformance thereto; establish report requirements to insure equality of opportunity by participants in economic development programs, conduct on-site inspection, and receive, investigate, and resolve complaints; receive, investigate, review, adjust and adjudicate complaints, and evaluate EDA experience relating to the Equal Employment Opportunity program and make recommendations to the Assistant Secretary for improvement of employment practices within EDA. § 301.43 Office of Administration.

The Office of Administration develops, promulgates, and administers administrative management policies, programs, and standards; plans and conducts comprehensive audits of all activities and programs; plans and conducts an investigations program; conducts organization and management studies and

surveys; plans and conducts a program for achieving maximum economy, effectiveness and efficiency, and for obtaining optimum personnel utilization; provides office services for the headquarters and as required for Area Offices; develops and conducts a program for the efficient management of all official records and the design and control of official forms; plans, arranges for, and coordinates any administrative management services obtained through the staff offices of the Department; plans and conducts a comprehensive personnel program, and an equal opportunity program as relates to employment within the Administration; develops and maintains an accounting system, prepares financial reports for internal and external use; develops, interprets, and administers travel regulations for EDA in accordance with Bureau of the Budget and Department of Commerce Directive.

§ 301.44

Economic Development Area Offices; functions.

(a) Purpose and function: In order to effect the desired change in redevelopment areas whereby the impediments to a fuller participation in the economic affairs of the Nation are understood and removed, it is essential that the development process in the communities that lag behind the growth of the country as a whole be accelerated. In accomplishing this objective, Area Offices play a critical role, inasmuch as their knowledge of general conditions and the status of the development process in their respective areas are a basis for the actions of the Economic Development Administration. Equally critical is the position of the Area Office as an operating arm of the Economic Development Administration bringing to the participating areas the needed knowledge about, and the use of, the developmental aids provided by the Public Works and Economic Development Act. Specifically, the Economic Development Area Offices cooperate with and assist local areas in organizing for economic development; provide economic development informational services covering all programs, Federal and otherwise; assist in obtaining field surveys of local area problems through staff or through contract; cooperate with local area and other economic development representatives in the development or modification of Overall Economic Development Programs (OEDPs); review those OEDPs submitted for approval and

take appropriate action in accordance with prescribed Administration policies and procedures; review applications for industrial and commercial assistance, for public works loans and grants, and for technical assistance, including administrative grants, and take appropriate final action in accordance with Administration policies, rules, regulations, and procedures and within the authority specifically delegated by the Assistant Secretary; review financial assistance project reports of processing offices, submitting analyses and recommendations for action to

eco

the Administration's Washington Office; develop and comment upon proposals for training projects within the area served by the Area Office; and provide for official liaison channels with State economic development agencies, district and redevelopment area nomic development organizations, and regional or local offices of other Federal agencies located within the same area, particularly those with related programs such as Small Business Administration, Office of Economic Opportunity, the Departments of Housing and Urban Development, Labor, Health, Education and Welfare, Agriculture, etc.

(b) Organization structure: Each Area Office is headed by an Area Director who reports to and is under the supervision and direction of the Assistant Secretary. Area Offices are comprised of the following functional units:

(1) The Area Director, who shall be responsible for promoting the objectives and purposes of the Area Office, and who shall direct and supervise all personnel and activities of the Area Office, assigning duties, setting priorities, and monitoring work performance for conformity with agency standards and policies.

(2) Administrative Staff, which shall administer administrative management policies, programs, and standards, maintain efficient management of all official records, and provide necessary personnel, office, and other administrative management services to the Area Office.

(3) Advisory Staffs, comprised of a Legal Staff and an Equal Opportunity Staff.

(i) The Legal Staff shall provide necessary legal services to the Area Office, subject to the general policy guidance and legal supervision of the Office of Chief Counsel in Washington, and the overall policies established by the General Counsel, Department of Commerce.

It shall be responsible for the preliminary legal review of all projects.

(ii) The Equal Opportunity Staff shall provide services to the Area Office in connection with the implementation of Executive Order 11246 and Title VI of the Civil Rights Act of 1964 in all activities of the Economic Development Administration, subject to the guidance and direction of the Office of Equal Opportunity, Washington office.

(4) Program Staffs shall include a Public Works Division and a Business Development Division.

(i) The Public Works Division shall review and make recommendations on applications for public works grants and loans, suggesting changes in the engineering plans and specifications, and alternate methods of financing, where indicated. It shall monitor approved requests and perform other project related functions. The work of the Public Works Division is carried out by four branch offices:

(a) The Project Review Branch shall receive all Public Works project applications and shall be primarily responsible for developing the project files in accordance with prescribed standards and procedures. It shall consider the economic impact of each proposed project and report on its relationship to the area OEDP and its significance in solving the problems and advancing the objectives and purposes of the Public Works and Economic Development Act. It shall monitor the submission of all supporting information, documentations, plans and specifications necessary to the processing and consideration of those applications which are accepted, after preliminary review, for further processing.

(b) The Engineering Review Branch shall study and report on the engineering feasibility of proposed projects, suggesting revisions in the plans and specifications where indicated, and shall view and comment on the necessity and reasonableness of engineering cost items.

(c) The Financial Review Branch shall study and report on the financial feasibility of proposed projects, suggesting alternate methods of financing where indicated, and shall determine the necessity and reasonableness of nonengineering cost items. It shall examine and report on the applicant's ability to finance its share of the project costs, and shall participate in closing approved loans and servicing completed projects during the

lifetime of outstanding development facility loans.

(d) The Construction Management Branch shall coordinate and approve bid awards in approved public works projects, monitor the construction of these projects, and assist the Area Director in the disbursement of grant and loan funds in accordance with established procedures, and in closing out completed projects.

(ii) The Business Development Division shall assist the Area Director in appraising the potential of the Area for industrial and commercial expansion, or for economic reorientation, and in attempting to meet the needs of the areas as those needs are reflected by the statistics and standards upon which they are designated. It will also assist the Area Director in providing Field Coordinators with technical information needed to assist prospective borrowers in the planning and preparation of acceptable applications, giving special attention to the availability of alternative Federal or private sources of financing. The Business Development Division shall review and make recommendations on applications received by the Area Office for industrial and commercial financial assistance in the form of industrial or commercial loans and working capital guarantees. It shall assist the Area Director in performing those duties which the Assistant Secretary may assign in connection with the closing of approved loans and disbursement of funds. It shall participate in servicing approved loans and working capital guarantees, and in developing plans to improve or terminate projects in default of loan conditions, and shall perform other project related functions as required and directed. The above activities of the Business Development Division shall be carried out in accord with the agreement existing between the Economic Development Administration and the Small Business Administration, under which the latter agency is providing certain support services to the Economic Development Administration.

(5) Field Coordinators shall disseminate information about the Administration's programs and activities, and interpret the Administration's role in redevelopment efforts for the benefit of community and area leaders; assist prospective borrowers or grantees in the preparation of applications for financial or technical assistance; and keep the Area Director informed about all devel

opments in their areas that might bear on the effectiveness of the Administration's program. In assisting applicants, the Field Coordinator shall communicate the Administration's objectives and policies, and explain the manner in which statutory requirements are to be met; indicate such alternative forms of assistance as might be available under other Federal programs, or from private sources; and provide guidance and advice on planning the contents of applications for assistance.

(c) Management responsibilities: The Area Director shall be responsible for performing all functions in connection with the closing, disbursing, and servicing of approved projects in areas served by the Area Office. He shall establish a system for the logging and internal control of all applications and correspondence received by the Area Office. Where necessary, he may designate a senior staff member of the Area Office to act in his stead. Program Staff personnel shall communicate directly with their counterparts in the Washington office to exchange factual and technical information concerning particular projects, and for guidance on technical program matters. The professional functions of the Legal and Equal Opportunity advisory staffs are subject to the general guidance of their counterparts in the Washington office through direct communication.

(d) The procedure for initial review of applications and OEDPs is as follows:

(1) Promptly after their receipt, and prior to detailed technical analysis and verification of engineering and financial feasibility, applications for public works grants, and loans and for industrial and commercial loans, shall be reviewed by the Area Office project review committee composed of key Area Office personnel appointed by the Area Director. The purpose of this initial review will be to consider the potential of the proposed project in solving the economic problems of the area in which it is to be located, its relationship to the area and district OEDPS, and its value in advancing the purposes and objectives of the Public Works and Economic Development Act. The Committee shall set forth its analysis of the project's prospective economic impact in a report, in such form as the Assistant Secretary may from time to time prescribe, submitted with the application through the Area Director to the appropriate program office in Washington. The report shall contain the com

mittee's recommendations as to whether the application should be processed further.

(2) Applications for technical assistance and administrative grants shall be forwarded promptly to the Office of Technical Assistance in Washington with appropriate comments by the Area Director.

(3) OEDPS shall be forwarded by the Field Coordinator to the Area Director for review and comment. The Area Director shall forward to the Office of District and Area Planning in Washington those OEDPS which initially appear to meet minimum program standards.

(e) Procedure for processing applications. Projects which are accepted by the Assistant Secretary for further processing will be handled in the following

manner:

(1) Public Works applications will be returned to the Area Office for the development of full information bearing on the quality and acceptability of the project, including a detailed technical analysis and verification of engineering and financial feasibility. The findings, observations, and recommendations of the Area Office, including those of the legal staff, shall be incorporated into a project report, in such form as the Assistant Secretary may direct, and shall be forwarded with the complete project file by the Area Director to the Office of Public Works in Washington. Following final approval action by the Assistant Secretary, the Area Director will be instructed to close, disburse, and service the project.

The

(2) Business Loan applications will ordinarily be submitted to the Small Business Administration for detailed analysis and verification of salient facts, including prospective markets, management skills, availability of working capital, and other matters bearing on the financial viability of the project. completed SBA report will be reviewed by the Area Office Business Development Division. The findings, observations, and recommendations of the Area Office, including those of the legal staff, shall be incorporated into a project report, in such form as the Assistant Secretary may direct, and shall be forwarded with the complete project file by the Area Director to the Office of Business Development in Washington. Following final approval action by the Assistant Secretary, the Area Director will be instructed to close, disburse, and service the project

in cooperation with officials of the Small Business Administration in accordance with the memorandum of understanding between the Small Business Administration and the Economic Development Administration.

Subpart D [Reserved]

Subpart E-General Rules

SOURCE: The provisions of this Subpart E appear at 31 F.R. 11292, Aug. 26, 1966; 31 F.R. 16673, Dec. 30, 1966, unless otherwise noted.

§ 301.50

Relocation and expansion.

(a) Assurances must be received that any project financed under the Act is being carried out without any design or intention to accommodate or assist any business enterprise in relocating from one geographic area to another, or in establishing a new or enlarged facility for the purpose of curtailing employment elsewhere, or of assisting subcontractors whose purpose is to divest other contractors or subcontractors of contracts customarily performed by them in another location. For the purposes of this section the term "contractors" or "subcontractors" includes (1) an applicant who is performing work for other manufacturers who supply the materials or parts for such work and to whom the finished product is returned by the contractors; and (2) a business which purchases and processes materials on behalf of another firm and is later reimbursed, its sole function having been to supply labor.

(b) The Assistant Secretary may require detailed information concerning the background, plans, and activities of the applicant, or of any related business enterprise with which the applicant or its principals has any contract or arrangement or proposes to make any contract or arrangement based on benefits expected from the proposed project, or of any business enterprise which is known and intended by the applicant to be a major beneficiary of the project.

(c) This provision will not be construed to prohibit the extension of financial assistance to assist an existing business entity to expand through the establishment of new branches, affiliates, or subsidiaries, provided that such expansion is to be carried out and operated without increasing unemployment at other places of business of the enterprise, and provided further that it is not intended that the existing business entity will close down or curtail operations in

Projects assisted under the Act must not serve to increase the production of goods, materials, or commodities, or the availability of services or facilities, when there is not sufficient demand for such goods, materials, commodities, services, or facilities, to employ the efficient capacity of existing competitive commercial or industrial enterprises.

§ 301.52 Applicable labor standards.

All laborers and mechanics employed by contractors or subcontractors on projects assisted by the Assistant Secretary under the Act must be paid wages at rates not less than those prevailing on similar construction in the locality, as determined by the Secretary of Labor in accordance with the Davis-Bacon Act, as amended (40 U.S.C. 276a to 276a-5). § 301.53

Nondiscrimination.

No financial assistance will be extended under the Act until assurances have been obtained from the recipients of the assistance that they will comply with Title VI of the Civil Rights Act of 1964, and the applicable implementing Federal regulations, including the regulations of the Department of Commerce (15 CFR Part 8). Further, all Federal procurement contracts must comply with Executive Order 11246, dated September 24, 1965.

§ 301.54 Records and audit.

(a) All recipients of financial assistance under Part 305, and under the Area Redevelopment Act (42 U.S.C. 2505, 2506, and 2507), shall keep and preserve, and shall require each contractor and subcontractor to keep and preserve, detailed project control records reflecting acquisitions, work progress, expenditures, and commitments, indicating in each instance their relationship to estimated costs and schedules. Such records shall be retained until completion of all work performed or acquisitions made in connection with the project, or until final disbursement made by the Government, whichever is later, and thereafter for a period of at least 3 years. All such recipients shall further keep and preserve such full written financial records, accurately disclosing the amount and the disposition of the proceeds of such assistance, together with the amounts and