maintain during the life of the contract adequate fire, workmen's compensation, public liability and property damage insurance (unless applicant furnishes evidence of such other acceptable arrangements for any and all such insurance). § 151.32 Davis-Bacon Act.

The grantee shall comply with the requirements of the Davis-Bacon Act and shall include the following in its construction contracts or subcontracts supported in whole or in part by Federal funds:

(c) All laborers and mechanics employed by contractors or subcontractors in the performance of work on construction of any project under this section shall 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-276a-5). The Secretary of Labor shall have, with respect to the labor standards specified in this clause, the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176; 5 U.S.C. 133z-15); and section 2 of the Act of June 13, 1934, as amended (40 U.S.C. 276c).

The grantee shall comply with the Copeland Act, and shall include the following in its construction contracts supported in whole or in part by Federal funds.

The Contractor will comply with the regulations applicable to contractors and subcontractors (29 CFR Part 3, copy of which is attached) issued by the Secretary of Labor pursuant to the Copeland Act, as amended (48 Stat. 948; 62 Stat. 862; 63 Stat. 108; 72 Stat. 967; 40 U.S.C. 276c), and any amendments, or modifications thereof, will cause appropriate provisions to be inserted in subcontracts to insure compliance thereto, and will be responsible for the submission of statements required of subcontractors thereunder, except as the Secretary of Labor may specifically provide for reasonable limitations, variations, tolerances, and exemptions from the requirements thereof.

§ 151.34 Equal employment opportunity.

In all contracts in excess of $10,000 financed in whole or in part with Federal funds, the grantee will include the contract clauses relating to nondiscrimination in employment as required by and set forth in the rules and regulations in effect under Executive Order 11246.

§ 151.35 Conflict of interest.

No officer or employee of the grantee or any firm, organization, corporation or partnership which such officer or employee controls or directs shall receive funds from the grantee for payment for services provided in connection with the planning, design, construction or equipping of a facility.

§ 151.36 Commissioner's approval.

Approval of the final working drawings and specifications will be obtained from the Commissioner before the construction covered by the application is advertised or placed on the market for bidding.

§ 151.37 Initiation of construction.

If the application for a construction grant is approved, the construction financed in whole or in part by the construction grant will be commenced within six months from date of acceptance of the construction grant by the applicant provided that a longer period for commencement of construction may be approved by the Commissioner for good cause shown.

§ 151.38 Construction supervision.

The grantee shall be responsible for on-site supervision of the construction project and compliance with all applicable Federal, State, and local laws. Architectural or engineering supervision and inspection will be provided for by the grantee at the construction site to insure that the completed work conforms with the approved plans and specifications, and "as built" drawing will be made available to the Commissioner upon completion of the project.

§ 151.39 Change requests.

Any time prior to completion of construction a grantee desires to make changes in the project which will affect the nature or scope of the project he shall inform the Commissioner in writing of such proposed change and no such change shall be made without prior approval of the Commissioner who may make such adjustments, arrangements or conditions as he deems necessary or desirable.

wherever it is in preparation or progress, and the contractor shall provide proper facilities for such access and inspection. § 151.41 Warranty period.

All construction contracts shall contain a provision holding the contractor responsible for the quality of the construction for three years after acceptance of a facility.

§ 151.42 Progress reports.

The construction applicant will furnish progress reports and such other information relating to the proposed construction grant as the Commissioner may require.

§ 151.43 Payment schedule.

Payment of Federal funds on approved construction projects shall be made by the Commissioner upon request of the applicant, either in advance or by way of reimbursement according to schedules established by the Commissioner and based upon the completion of stages of construction as indicated by the inspection and progress reports earlier mentioned. Payment of the final installment of 10 percent of the Federal grant will be withheld until final inspection of the facility and approval of a final audit of the completed project.

§ 151.44 Excess payments.

Construction grant funds not expended in connection with the construction of the facilities will constitute excess payments and shall be refunded by the grantee by check made payable to the U.S. Office of Education.

§ 151.45. Transfer of title.

The Commissioner may transfer title to any facility constructed pursuant to the Act and this subpart, if such title is vested in the United States, to any eligible party specified in § 151.29 subject to the condition that the facility will be operated for the purposes for which it was constructed and subject to such other conditions as the Commissioner may deem necessary to carry out the objectives of the Act and to protect the interest of the United States.

§ 160.1 Definitions.

(a) "Act" means the Manpower Development and Training Act of 1962, P.L. 87-415, 76 Stat. 23, as amended; 42 U.S.C. 2571 et seq.

(b) "Agreement" means a written agreement for training executed pursuant to section 231 of the Act by a State and the Commissioner acting for the Secretary.

(c) "Basic education" means elementary level education, usually in the general areas of reading, writing, language skills, and arithmetic, given in order to enable the trainee to pursue a program of occupational training.

(d) "Commissioner" means the U.S. Commissioner of Education or his duly authorized representative.

(e) "Department" means the Department of Health, Education, and Welfare.

(f) "Direction and supervision" includes direction and supervision of training projects and other supportive services, whether by the State agency or approved subdivisions of the State, necessary to carry out such projects under the agreement, such as educational and vocational testing, guidance and counseling; in-service teacher training; development of curriculum and instructional materials; dissemination of health information and services; services of consultants and advisory committees; and clerical, accounting, and auditing services.

(g) "Provocational training" means training in a number of different occupational areas and counseling designed to assist referred trainees in determining the occupational area in which he should be trained.

(h) "Public," as applied to any training agency or institution, means under public supervision and control.

(1) "Referral" means a person referred to a State agency for training by the U.S. Department of Labor.

(j) "Refresher and reorientation training for professionals" means short intensive courses for unemployed or potentially unemployed professional persons who are not seeking to qualify for initial employment in a professional occupation but who need to develop their particular professional skills or a new skill so as to maintain their present employment or qualify for new employment within their professions.

(k) "Secretary" means the Secretary of the U.S. Department of Health, Education, and Welfare.

(1) "Special youth project" means a project providing guidance, counseling, testing, basic education, basic work skills, social adjustment, occupational training, or other appropriate instruction or services to meet the needs of youths, 16 years of age or older, who because of in* adequate educational background and work preparation are unable to qualify for and obtain employment without such training or education.

(m) "State" includes, in addition to the several States of the Union, the District of Columbia, the Commonwealth of Puerto Rico, Guam, and the Virgin Islands.

(n) "State Advisory Committee" means the State-level committee provided for in the agreement to provide consultative services to the State agency.

(o) "State agency" means the State Vocational education agency or other agency responsible under State law for the direction and supervision of training projects under the Act, except that, with respect to training provided for referrals under subsection (b) or (i) of section 202 of the Act, any other appropriate education agency.

(p) "Training" means a planned and systematic sequence of instruction under competent supervision designed to impart predetermined skill, knowledge, or abilities with respect to designated occupational objectives; and, in addition to occupational training, may include, to the extent necessary, basic education, prevocational training, refresher and reorientation training for professionals, and such direction and supervision as may be required by the agency or institution to conduct the training.

(q) "Training project" means a program or course for the training of a given number of referrals (including special youth projects), either on a class group or individual referral basis.

§ 160.2 Summary of program.

(a) Conduct of training projects. Under the agreement, the State agency shall provide the necessary training through public or private educational agencies or institutions. All such agencies or institutions must meet the standards for training specified in § 160.3. Before awarding a training project to a private agency or institution, the State agency shall determine that such an institution can provide equipment or services not available in public institutions, particularly for training in technical and subprofessional occupations, or that such institution can, at comparable cost, (1) provide substantially equivalent training, or (2) make possible expanded use of individual referral procedures, or (3) aid in reducing more quickly unemployment or current and prospective manpower shortages.

(b) State agency's responsibility for training. Notwithstanding any arrangements it may make for the conduct of training projects, the State agency is responsible for taking such steps as are necessary to assure that all notifications of training need are quickly processed and that training projects are expeditiously formulated so that referrals may enter training promptly and, further, that the quality and standards of all such training are consistently maintained.

(c) State participation in Manpower Development and Training program. In the event the State agency is unable to provide particular training under the agreement, it shall notify the Commissioner in writing within 30 days of official notification of training need. Thereafter, the Commissioner may make other appropriate arrangements for that training. The Commissioner may in his discretion, however, extend the 30-day limitation.

§ 160.3 Services and facilities for the provision of training.

(a) Standards for training. No public or private educational agency or training institution may be utilized to provide training unless the State agency shall find that the agency or institution:

(1) Is generally regarded as offering quality training, as reflected by such factors as its placement record, accreditation status, or, in the case of an agency or institution which has not previously engaged in training, evidence clearly indicating that such agency or institution can make a unique contribution in providing quality training;

(2) Will provide courses of instruction, based on the recognized training needs of the referrals, which will provide the skills and information requisite for employment in the occupations for which training is to be provided;

(3) Will provide instructional staff for such training that meets or exceeds the State's standards of training, education, and experience for teaching similar courses;

(4) Has developed suitable standards which set forth the level of competency that will be required for the successful completion of the training project;

(5) Will insure that all persons referred for training will have the benefit of educational or vocational guidance services;

(6) Will have the facilities necessary for the training to be provided, including, but not limited to, space, tools, machines, supplies, and teaching aids;

(7) Will establish and maintain appropriate health and safety standards in the conduct of the training; and,

(8) Is financially sound and capable of fulfilling its commitments for training.

(b) Basic education. Basic education may be provided only as part of an occupational training program. The plan for basic education shall be de

veloped and presented only as part of a total training plan.

§ 160.4 Approval of project proposal and budget.

(a) Training projects. Prior to the commitment of any funds for any training project, a project proposal and budget prepared on the basis of the estimated costs of the training involved must be approved by the State agency and the Commissioner. Costs of local direction and supervision directly attributable to the training project shall be separately identified in the budget.

(b) State direction and supervisory costs. A budget estimate covering the cost of State direction and supervision of the training program under the agreement shall be separately prepared and submitted to the Commissioner for approval. If the State agency intends to expend any funds for costs of the State Advisory Committee, such expenditures shall be separately identified in this budget.

(c) Maximum Federal commitment. In order to assure that the Federal funds committed with respect to all approved training projects and the costs of the State agency's direction and supervision of the program do not exceed the total funds available for those purposes, each approved budget shall represent the maximum amount the Commissioner is obligated to pay the State agency for such training, direction, or supervision. This amount may be revised from time to time by agreement of the State agency and the Commissioner as reductions or increases may warrant.

(d) Effective date of approval. The effective date of approval of a training project shall be the date upon which the agency is advised by the Commissioner or his representative that Federal funds are committed to such project. No expenditures made prior to notification of official commitment of funds will be approved. § 160.5 Payment to State agency.

(a) In general. Within the budget estimates approved by the State agency and the Commissioner, the State agency will be paid the Federal share of the allowable costs attributable to training projects and to State direction and supervision.

(b) Determination of Federal share of allowable costs-training projects. Sub

ject to the limitation in § 160.4 (c), the Federal share of approved allowable costs incurred in connection with training projects shall be as follows:

(1) 100 percent of allowable costs which are attributable to training projects under section 231 of the Act approved prior to July 1, 1966;

(2) Not more than 90 percent of allowable costs which are attributable to training projects under section 231 of the Act approved after June 30, 1966, unless the Commissioner determines that #Federal funds in excess of 90 percent are necessary to give full effect to the purposes of the Act with respect to private E institutions. The non-Federal share may be on a Statewide basis and may be in : cash or in kind, fairly evaluated, including but not limited to plant, equipment, and services whether derived from State E sources or donated by public or private : agencies, institutions or organizations or E any other source.

(a) State direction and supervision. To the extent they are attributable to E carrying out the responsibilities of the State agency under the agreement, the approved allowable costs of the State agency in its direction and supervision of the training program may include the following:

(1) Salaries, including employers' contributions to retirement, workmen's compensation, and other welfare funds maintained for one or more general classes of employees of the State agency; and, in addition, the value of contributed services where no cash payments are made;

(2) Equipment necessary for the direction and supervision of training projects;

(3) Communications;

(4) Supplies, printing, and printed = materials;

(5) Rental of office space (including the cost of utilities and custodial services) if: (i) The expenditures for the space are necessary, reasonable, and

properly related to the efficient direction of the program; (ii) the State agency will receive benefits of the expenditures during the period of occupancy commensurate with such expenditures; (iii) the amounts paid by the State agency do not exceed comparable rental in the particular locality; (iv) the expenditures represent an actual cost to the State agency; and (v) in the case of publicly owned buildings, like charges are made to other agencies occupying similar space for similar purposes.

(6) Necessary travel and per diem for the State Advisory Committee to the extent permitted under the agreement; (7) Travel of staff;

(8) Out-of-area travel of local supervisors and teachers when undertaken at the request of the State agency;

(9) Cost of training staff orientation and development;

(10) The acquisition of resource materials and the cost of development of instructional materials;

(11) Transportation and storage of supplies and equipment obtained on loan from other Federal agencies under section 303 (a) of the Act or from Federal excess or surplus property, the National Industrial Reserve, or completed training projects within the State or from other jurisdictions;

(12) Subject to prior approval by the Commissioner, program development costs incurred by approved subdivisions of the State, which costs may include those allowed for State direction and supervision as enumerated in subparagraphs (1) to (11) of this paragraph.

(b) Training by public agencies or institutions. To the extent that they are attributable to carrying out a training project, either by the State agency itself or by arrangement with other public educational agencies or institutions, approved allowable costs may include the following:

(1) Salaries, including employers' contributions to retirement, workmen's compensation, and other welfare funds maintained for one or more general classes of employees; and, in addition, the value of contributed services where no cash payments are made;

(2) Acquisition of supplies, training manuals, and materials, and other teaching aids; acquisition, transportation, maintenance, and repair of equipment; and rental of equipment (including publicly owned equipment) to the extent not purchased with funds obtained from the