to the satisfaction of the Secretary that appropriate and adequate means shall be employed to achieve economy and efficiency in the completion of the project. § 401.12 Ownership of property.

When real property is acquired pursuant to the provisions of the Act, title to such property or interest therein shall be vested in the United States, and the conveying instrument shall recite the United States of America as the grantee. However, if the Secretary determines that under the terms of the cooperative agreement, the intent and purpose of the Act may be better served by State ownership of such property, an appropriate transfer may be made. When real or personal property is utilized by the State as matching funds, title to such property shall remain in the State. When real or personal property is utilized as matching funds by a cooperator other than the State, title shall be in the State unless otherwise specified in the cooperative agreement.

The cooperator shall maintain an adequate and competent force of employees to initiate and carry cooperative agreements to satisfactory completion. Personnel employed on projects shall be selected on the basis of their competence to perform the services required and shall conduct their duties in a manner acceptable to the Secretary.

§ 401.14 Inspection.

Supervision of each project shall be as specified in the cooperative agreement and shall include adequate and continuous inspection. The project will be subject at all times to Federal inspection. § 401.15 Records retention.

All records of accounts and reports, with supporting documentation thereto, will be retained by the cooperator for a period of 3 years after final audit is made by the Federal Government.

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Supply, service, equipment, and construction contracts, other than research and development contracts and contracts for professional services, involving an expenditure of $2,500 or more entered into by a cooperator for the execution of approved project activities, shall be based upon free and open competitive bids. If a contract is awarded to other than the lowest responsible bidder, the payment of the Federal portion of the cost of the project shall be based on the lowest responsible bid, unless it is satisfactorily shown that it was advantageous to the project to accept a higher bid. Upon request, the cooperator shall certify and promptly furnish to the Secretary a copy of each contract executed and copies of all bids received concerning the contract. Contracts for research, development, and professional services may be negotiated, provided that the Secretary is satisfied that adequate steps are taken to insure economical and efficient services and the impartial selection of contractors.

§ 401.19 Statements and payrolls.

The regulations of the Secretary of Labor applicable to contractors and subcontractors (29 CFR Part 3), made pursuant to the Copeland Act, as amended (40 U.S.C. 276c), and to aid in the enforcement of the Anti-Kickback Act (18 U.S.C. 874) are made a part of the regulations in this part by reference. The cooperator will comply with the regulations in this part and any amendments or modifications thereof and the cooperator's prime contractor will be responsible for the submission of statements required of subcontractors thereunder.