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shall be retained for 3 years after final disposition.

(3) When records are transferred to or maintained by DOE, the 3-year retention requirement is not applicable to the recipient.

(4) Indirect cost rate proposals, cost allocations plans, and related records, for which retention requirements are specified in $ 600.153(g).

(c) Copies of original records may be substituted for the original records if authorized by DOE.

(d) DOE shall request transfer of certain records to its custody from recipients when it determines that the records possess long term retention value. However, in order to avoid duplicate recordkeeping, DOE may make arrangements for recipients to retain any records that are continuously needed for joint use.

(e) DOE, the Inspector General, Comptroller General of the United States, or any of their duly authorized representatives, have the right of timely and unrestricted access

to any books, documents, papers, or other records of recipients that are pertinent to the awards, in order to make audits, examinations, excerpts, transcripts and copies of such documents. This right also includes timely and reasonable access to a recipient's personnel for the purpose of interview and discussion related to such documents. The rights of access in this paragraph are not limited to the required retention period, but shall last as long as records are retained.

(1) Unless required by statute, DOE shall place no restrictions on recipients that limit public access to the records of recipients that are pertinent to an award, except when DOE can demonstrate that such records shall be kept confidential and would have been exempted from disclosure pursuant to the Freedom of Information Act (5 U.S.C. 552) if the records had belonged to DOE.

(8) Paragraphs (g)(1) and (g)(2) of this section apply to the following types of documents, and their supporting records: indirect cost rate computations or proposals, cost allocation plans, and any similar accounting computations of the rate at which a particular group of costs is chargeable

(such as computer usage chargeback rates or composite fringe benefit rates).

(1) If submitted for negotiation. If the recipient submits to the Federal agency responsible for negotiating the recipient's indirect cost rate or the subrecipient submits to the recipient the proposal, plan, or other computation to form the basis for negotiation of the rate, then the 3-year retention period for its supporting records starts on the date of such submission.

(2) If not submitted for negotiation. If the recipient is not required to submit to the cognizant Federal agency or the subrecipient is not required to submit to the recipient the proposal, plan, or other computation for negotiation purposes, then the 3-year retention period for the proposal, plan, or other computation and its supporting records starts at the end of the fiscal year (or other accounting period) covered by the proposal, plan, or other computation.

(h) If, by the terms and conditions of the award, the recipient or subrecipient

(1) Is accountable for program income earned or received after the end of the project period or after the termination of an award or subaward, or

(2) If program income earned during the project period is required to be applied to costs incurred after the end of the project period or after termination of an award or subaward, the record retention period shall start on the last day of the recipient's or subrecipient's fiscal year in which such income was earned or received or such costs were incurred. All other program income records shall be retained in accordance with $ 600.153(b).

Termination and Enforcement

$ 600.160 Purpose of termination and

enforcement. Sections 600.161 and 600.162 set forth uniform suspension, termination and enforcement procedures. 8 600.161 Termination.

(a) Awards may be terminated in whole or in part only if paragraph (a) (1), (2) or (3) of this section apply.



(1) By DOE, if a recipient materially fails to comply with the terms and conditions of an award.

(2) By DOE with the consent of the recipient, in which case the two parties shall agree upon the termination conditions, including the effective date and, in the case of partial termination, the portion to be terminated.

(3) By the recipient upon sending to DOE written notification setting forth the reasons for such termination, the effective date, and, in the case of partial termination, the portion to be terminated. However, if DOE determines in the case of partial termination that the reduced or modified portion of the award will not accomplish the purposes for which the award was made, it may terminate the award in its entirety under either paragraph (a) (1) or (2) of this section.

(b) If costs are allowed under an award, the responsibilities of the recip ient referred to in 8600.171(a), including those for property management as ap plicable, shall be considered in the termination of the award, and provision shall be made for continuing responsibilities of the recipient after termination, as appropriate. 8 600.162 Enforcement.

(a) Remedies for noncompliance. If a recipient materially fails to comply with the terms and conditions of an award, whether stated in a Federal statute, regulation, assurance, application, or notice of award, DOE may, in addition to imposing any of the special conditions outlined in $600.114, take one or more of the following actions, as appropriate in the circumstances.

(1) Temporarily withhold cash payments pending correction of the deficiency by the recipient or more severe enforcement action by DOE.

(2) Disallow (that is, deny both use of funds and any applicable matching credit for) all or part of the cost of the activity or action not in compliance.

(3) Wholly or partly suspend or terminate the current award.

(4) Withhold further awards for the project or program.

(5) Take other remedies that may be legally available.

(b) Hearings and appeals. In taking an enforcement action, DOE shall pro

vide the recipient an opportunity for hearing, appeal, or other administrative proceeding to which the recipient is entitled under any statute or regulation applicable to the action involved.

(c) Effects of suspension and termination. Costs of a recipient resulting from obligations incurred by the recipient during a suspension or after termination of an award are not allowable unless the awarding agency expressly authorizes them in the notice of suspension termination


subsequently. Other recipient costs during suspension or after termination which

necessary and not reasonably avoidable are allowable if paragraph (c) (1) and (2) of this section apply.

(1) The costs result from obligations which were properly incurred by the recipient before the effective date of suspension or termination, are not in anticipation of it, and in the case of a termination, are noncancellable.

(2) The costs would be allowable if the award were not suspended or expired normally at the end of the funding period in which the termination takes effect.

(d) Relationship to debarment and suspension. The enforcement remedies identified in this section, including suspension and termination, do not preclude a recipient from being subject to debarment and suspension under 10 CFR part 1036.


8 600.170 Purpose.

Sections 600.171 through 600.173 contain closeout procedures and other procedures for subsequent disallowances and adjustments. 8 600.171 Closeout procedures.

(a) Recipients shall submit, within 90 calendar days after the date of completion of the award, all financial, performance, and other reports as required by the terms and conditions of the award. DOE may approve extensions when requested by the recipient.

(b) Unless DOE authorizes an extension, a recipient shall liquidate all obligations incurred under the award not later than 90 calendar days after the funding period or the date of completion as specified in the terms and con

ditions of the award or in agency implementing instructions.

(c) DOE shall make prompt payments to a recipient for allowable reimbursable costs under the award being closed out.

(d) The recipient shall promptly refund any balances of unobligated cash that DOE has advanced or paid and that is not authorized to be retained by the recipient for use in other projects. OMB Circular A-129 governs unreturned amounts that become delinquent debts.

(e) When authorized by the terms and conditions of the award, DOE shall make a settlement for any upward or downward adjustments to the Federal share of costs after closeout reports are received.

(f) The recipient shall account for any real and personal property acquired with Federal funds or received from the Federal Government in accordance with $$ 600.131 through 600.137.

(g) In the event a final audit has not been performed prior to the closeout of an award, DOE shall retain the right to recover an appropriate amount after fully considering the recommendations on disallowed costs resulting from the final audit.

continuing responsibilities of the recip ient, as appropriate. 8 600.173 Collection of amounts due.

(a) Any funds paid to a recipient in excess of the amount to which the recipient is finally determined to be entitled under the terms and conditions of the award constitute a debt to the Federal Government. If not paid within a reasonable period after the demand for payment, DOE may reduce the debt by paragraph (a) (1), (2) or (3) of this section.

(1) Making an administrative offset against other requests for reimbursements.

(2) Withholding advance payments otherwise due to the recipient.

(3) Taking other action permitted by statute.

(b) Except as otherwise provided by law, DOE shall charge interest on an overdue debt in accordance with 4 CFR Chapter II, "Federal Claims Collection Standards."

Additional Provisions

8600.180 Purpose.

The purpose of "Additional Provisions” is to provide additional rules for certain types of recipients which are otherwise covered by 10 CFR part 600, subpart B when they are performing under Small Business Innovation Research grants.

8 600.172 Subsequent adjustments and

continuing responsibilities. (a) The closeout of an award does not affect any of the following.

(1) The right of DOE to disallow costs and recover funds on the basis of a later audit or other review.

(2) The obligation of the recipient to return any funds due as a result of later refunds, corrections, or other transactions.

(3) Audit requirements in 8600.126.

(4) Property management requirements in $$ 600.131 through 600.137.

(5) Records retention as required in $ 600.153.

(b) After closeout of an award, a relationship created under an award may be modified or ended in whole or in part with the consent of DOE and the recipient, provided the responsibilities of the recipient referred to in paragraph 600.173(a), including those for property management as applicable, are considered and provisions made for

8600.181 Special provisions for small

business innovation research

grants. (a) General. This section contains provisions applicable to the Small Business Innovation Research (SBIR) Program. This codifies six class deviations pertaining to the SBIR program.

(b) Provisions Applicable to Phase I SBIR Awards. Phase I SBIR awards may be made on a fixed obligation basis, subject to the following requirements:

(1) While proposed costs must be analyzed in detail to ensure consistency with applicable cost principles, incurred costs are not subject to regulation by the standards of cost allowability;

(2) Although detailed budgets are submitted by a recipient and reviewed


by DOE for purposes of establishing the the awarding party before entering amount to be awarded, budget cat- into any sole source contract or a conegories are not stipulated in making an tract where only one bid or proposal is award;

received when the value of the contract (3) Prior approval from the DOE for is expected to exceed $25,000 in the agrebudgeting among categories by the gregate. recipient is not required. Prior ap- (3) A fee or profit may be paid to proval from DOE is required for situa- SBIR recipients. tions involving sole source or single bid procurements as provided

APPENDIX A TO SUBPART B TO PART $ 600.181(d)(2). Prior approval from DOE

600_CONTRACT PROVISIONS is also required for any variation from

All contracts, awarded by a recipient inthe requirement under the SBIR pro- cluding small purchases, shall contain the gram that no more than one-third of following provisions as applicable: Phase I work can be done by sub-con- 1. Equal Employment Opportunity-All contractors or consortium partners;

tracts shall contain a provision requiring (4) Pre-award expenditure approval is

compliance with E.O. 11246, “Equal Employnot required;

ment Opportunity," as amended by E.O.

11375, “Amending Executive Order 11246 Re(5) Payments are to be made in the

lating to Equal Employment Opportunity," same manner as other financial assist

and as supplemented by regulations at 41 ance (see $600.122), except that, when CFR part 60,"Office of Federal Contract determined appropriate by the cog

Compliance Programs, Equal Employment nizant program official and contract

Opportunity, Department of Labor." ing officer, a lump sum payment may

2. Copeland "Anti-Kickback" Act (18 U.S.C.

874 and 40 U.S.C. 276c)-All contracts and be made. If a lump sum payment is

subgrants in excess of $2000 for construction made, the award must be conditioned

or repair awarded by recipients and to require the recipient to return to subrecipients shall include a provision for DOE amounts remaining unexpended at compliance with the Copeland “Anti-Kickthe end of the project if those amounts back" Act (18 U.S.C. 874), as supplemented by exceed $500;

Department of Labor regulations (29 CFR (6) Recipients will certify in writing

part 3, “Contractors and Subcontractors on

Public Building or Public Work Financed in to the Contracting Officer at the end of

Whole or in part by Loans or Grants from the project that the activity was com- the United States"'). The Act provides that pleted or the level of effort was ex- each contractor or subrecipient shall be propended. Should the activity or effort hibited from inducing, by any means, any not be carried out, the recipient would person employed in the construction, combe expected to make appropriate reim- pletion, or repair of public work, to give up bursements;

any part of the compensation to which he is (7) Requirements for periodic reports

otherwise entitled. The recipient shall report

all suspected or reported violations to the may be established for each award so

Federal awarding agency. long as they are consistent with

3. Davis-Bacon Act, as amended (40 U.S.C. $ 600.151;

276a to a-7)—when required by Federal pro(8) Changes in principal investigator gram legislation, all construction contracts or project leader, scope of effort, or in- awarded by the recipients and subrecipients stitution, require the prior approval of

of more than $2000 shall include a provision DOE.

for compliance with the Davis-Bacon Act (40 (c) Provision Applicable to Phase II

U.S.C. 276a to a-7) and as supplemented by

Department of Labor regulations (29 CFR SBIR Awards. Phase II SBIR awards

part 5, "Labor Standards Provisions Applicamay be made for a single budget period

ble to Contracts Governing Federally Fiof 24 months.

nanced and Assisted Construction"). Under (d) Provisions Applicable to Phase I this Act, contractors shall be required to pay and Phase II SBIR Awards.

wages to laborers and mechanics at a rate (1) The prior approval of the cog

not less than the minimum wages specified nizant DOE Contracting Officer is re

in a wage determination made by the Secquired before the final budget period of

retary of Labor. In addition, contractors

shall be required to pay wages not less than the project period may be extended

once a week. The recipient shall place a copy without additional funds.

of the current prevailing wage determination (2) A recipient or subrecipient must issued by the Department of Labor in each receive the prior written approval of solicitation and the award of a contract shall be conditioned upon the acceptance of the of any agency, a member of Congress, officer wage determination. The recipient shall re- or employee of Congress, or an employee of a port all suspected or reported violations to member of Congress in connection with obthe Federal awarding agency.

taining any Federal contract, grant or any 4. Contract Work Hours and Safety Standards other award covered by 31 U.S.C. 1352. Each Act (40 U.S.C. 327–333)—Where applicable, all tier shall also disclose any lobbying with contracts awarded by recipients in excess of non-Federal funds that takes place in con$2000 for construction contracts and in ex- nection with obtaining any Federal award. cess of $2500 for other contracts that involve

Such disclosures are forwarded from tier to the employment of mechanics or laborers

tier up to the recipient. shall include a provision for compliance with

8. Debarment and Suspension (E.O.s 12549 sections 102 and 107 of the Contract Work

and 12689)—Contract awards that exceed the Hours and Safety Standards Act (40 U.S.C.

small purchase threshold and certain other 327-333), as supplemented by Department of

contract awards shall not be made to parties Labor regulations (29 CFR part 5). Under section 102 of the Act, each contractor shall be

listed on the nonprocurement portion of the

General Services Administration's List of required to compute the wages of every mechanic and laborer on the basis of a standard

parties Excluded from Federal Procurement work week of 40 hours. Work in excess of the

or Nonprocurement Programs in accordance standard work week is permissible provided

with E.O.s 12549 and 12689, “Debarment and that the worker is compensated at a rate of

Suspension." This list contains the names of not less than 142 times the basic rate of pay

parties debarred, suspended, or otherwise exfor all hours worked in excess of 40 hours in

cluded by agencies, and contractors declared the work week. Section 107 of the Act is ap

ineligible under statutory or regulatory auplicable to construction work and provides

thority other than E.O. 12549. Contractors that no laborer or mechanic shall be required

with awards that exceed the small purchase to work in surroundings or under working

threshold shall provide the required certificonditions which are unsanitary, hazardous

cation regarding its exclusion status and or dangerous. These requirements do not

that of its principals. apply to the purchases of supplies or materials or articles ordinarily available on the Subpart C-Uniform Administrative open market, or contracts for transportation

Requirements for Grants and or transmission of intelligence. 5. Rights to Inventions Made Under a Con

Cooperative Agreements to tract or Agreement Contracts or agreements

State and Local

Governments for the performance of experimental, developmental, or research work shall provide for SOURCE: 53 FR 8045, 8087, Mar. 11, 1988, unthe rights of the Federal Government and less otherwise noted. Redesignated at 59 FR the recipient in any resulting invention in

53264, Oct. 21, 1994. accordance with 37 CFR part 401, “Rights to Inventions Made by Nonprofit Organizations EDITORIAL NOTE: For additional informaand Small Business Firms Under Govern- tion, see related documents published at 49 ment Grants, Contracts and Cooperative FR 24958, June 18, 1984, 52 FR 20178, May 29, Agreements," and any implementing regula- 1987, and 53 FR 8028, Mar. 11, 1988. tions issued by the awarding agency. 6. Clean Air Act (42 U.S.C. 7401 et seq.) and

GENERAL the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.), as amended-Contracts $ 600.200 Purpose and scope of this and subgrants of amounts in excess of subpart. $100,000 shall contain a provision that requires the recipient to agree to comply with

This subpart establishes uniform adall applicable standards, orders or regula

ministrative rules for Federal grants tions issued pursuant to the Clean Air Act and cooperative agreements and (42 U.S.C. 7401 et seq.) and the Federal Water subawards to State, local and Indian Pollution Control Act as amended (33 U.S.C. tribal governments. 1251 et seq.). Violations shall be reported to the Federal awarding agency and the Re

$ 600.201 Scope of $$ 600.200 through gional Office of the Environmental Protec

600.205. tion Agency (EPA).

7. Byrd Anti-Lobbying Amendment (31 U.S.C. This section contains general rules 1352)—Contractors who apply or bid for an pertaining to this part and procedures award of $100,000 or more shall file the re- for control of exceptions from this subquired certification. Each tier certifies to

part. the tier above that it will not and has not used Federal appropriated funds to pay any

$ 600.202 Definitions. person or organization for influencing or attempting to influence an officer or employee As used in this part:

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