For purposes of this part

(a) The terms "act," "Administrator," "handicapped individual," "non-profit," "Regional Commissioner," "rehabilitation facility," "Secretary," and "workshop" shall, except where the context indicates otherwise, have the same meaning as set forth in § 401.1 of this chapter.

(b) "Construction" includes construction of new buildings, acquisition of existing buildings, and expansion, remodeling, alteration, and renovation of existing buildings, and initial equipment of such new, newly acquired, expanded, remodeled, altered, or renovated buildings.

(c) "Region" means a geographical region designated by the Department of Health, Education, and Welfare.

(d) "State" means the several States, the District of Columbia, the Virgin Islands, Puerto Rico, Guam, American Samoa, and the Trust Territory of the Pacific Islands.

(e) "State agency" or "State vocational rehabilitation agency" has the same meaning as set forth in § 401.1 (v) of this chapter and, in addition, means the Governor of American Samoa and the High Commissioner of the Trust Territory of the Pacific Islands. § 404.2

Non-Federal funds.

In the case of any project under this part for which Federal funds are granted to pay part of the cost, the matching grantee funds may not consist of other Federal funds or of non-Federal funds that are applied to match other Federal funds, except as may be specifically authorized by Congress. No Federal financial assistance may be furnished under this part for activities for which payment is made under another part of this chapter, or other authority.

§ 404.3 Consultant fees.

Fees for consultant services are allowable to the extent that such payments are in accordance with the policies and standard practices of the agency, organization, or institution to which a grant or contract has been awarded. Fees for consultant services may not be paid to any regular full-time Federal Government employee. They may not be paid to any other individual for activities which are ordinarily a part of his duties

In all projects under this part, applications shall take into consideration the standards and criteria developed with the advice of the National Policy and Performance Council, set forth in the publication, "Standards for Rehabilitation Facilities and Sheltered Workshops" (VRA, 1967), as modified from time to time, and such other standards as may be designated by the Administrator. Where appropriate, an application shall demonstrate a reasonable expectation that the grant will enable the rehabilitation facility to make substantial progress towards meeting such standards and criteria. In the case of rehabilitation facilities already meeting such standards and criteria, the application shall demonstrate a reasonable expectation that the grant will make possible substantial improvement in the facility.

Subpart B-Project Development
Grants

§ 404.10 Purpose.

statement of the purpose of the project; (b) description of the nature and scope of the activities of the applicant; (c) description of the nature and scope of the activities to be undertaken, the methods to be used in accomplishing the purpose, qualifications of the staff to be assigned to the project, and the planning staff available; (d) identification of community resources to be represented in the planning activity; (e) a proposed budget; (f) an agreement to make such financial and administrative reports and to keep such records and accounts as the Administrator may require and to make such records and accounts available for audit purposes; and (g) such other information as the Administrator may require.

§ 404.12 Consultations with and approval of application by State agency. (a) The applicant shall be responsible for securing the advice and assistance of the appropriate State vocational rehabilitation agency or agencies in the development of an application. Applications shall be reviewed by the appropriate State agency or agencies for approval. The State agency shall indicate the relationship of the project to the purposes and priorities of the State rehabilitation facilities plan. Approved applications shall be forwarded to the Regional Commissioner for review for approval.

(b) Each applicant shall be notified in writing of the action on the application. Where applications are disapproved by the State agency, the applicant shall be notified by the State agency giving the reasons for disapproval, and the State agency shall forward a copy of such notification to the Social and Rehabilitation Service.

and disability groups to be served in the facility; (b) the services to be provided in the facility and the proposed staffing plan; (c) the relationship of the proposed program to the programs of existing facilities and agencies in the area; (d) the participation of community planning agencies and community health, welfare and social service agencies in the planning effort and evidence of both program and financial support of these agencies for the new or expanded facility; (e) in the case of a rehabilitation facility which is or which includes a workshop, the expected sources of industrial subcontracting or other types of work and evidence of the interest of representatives of industry and labor; (f) the anticipated relationship of the State vocational rehabilitation agency to the new program as agreed to by the State agency; (g) proposed compliance with applicable safety and labor standards; and (h) a proposed plan for financing of construction and operation of the new or expanded facility.

§ 404.15 Federal financial participation.

Federal financial participation shall be available for salaries (including fringe benefits) of additional personnel assigned directly to the project; fees for consultant services; staff or consultant travel; costs associated with the use of volunteers in the project; preparation of the report; only such architectural planning as is incidental to program planning, but not including working drawings; and such other costs as are set forth in the approved application. The amount of a grant shall not exceed 90 per centum of the cost of the project. § 404.16

Payments.

Under section 12 of the act, grants may be made to pay part of the cost of the construction of public or other nonprofit rehabilitation facilities. Construction of rehabilitation facilities may include construction of new buildings, acquisition of existing buildings, and expansion, remodeling, alteration, and renovation of existing buildings, and initial equipment of such newly acquired, expanded, remodeled, altered, or renovated buildings. The cost of construction of rehabilitation facilities may include the cost of architectural fees and acquisition of land in connection with construction, but may not include the cost of offsite improvement. Construction of a rehabilitation facility may include construction of residential accommodations, except that in the case of a rehabilitation facility which is primarily a workshop, construction of such residential accommodations may include only such construction as may be necessary to provide residential accommodations for use in connection with the rehabilitation of mentally retarded individuals and individuals with severe problems of mobility.

§ 404.21 Applications.

An application may be submitted at any time by a State vocational rehabilitation agency or any other public or nonprofit organization or agency which operates or proposes to operate a public or other nonprofit rehabilitation facility. Applications shall be made in the form and detail required by the Administrator and, to the extent applicable, shall include (a) a detailed estimate of the cost of the project; (b) a description of applicant's financial resources for the project; (c) a description of both the applicant's existing and proposed program of services; (d) in the case of a private, nonprofit rehabilitation facility which is or which includes a workshop, a statement that applicable Federal and State wage and

hour standards will be observed or, in the case of a rehabilitation facility which is or which includes a workshop and is operated by a State, county, or municipal government, a statement that the facility will comply with wage and hour standards specified by the Administrator, which will be at least equal to those imposed by the Fair Labor Standards Act; (e) in the case of a rehabilitation facility which is or which includes a workshop, a description of the expected sources of industrial subcontracting and other types of work; (f) a description of the existing and the proposed staffing plans; (g) a description of the relationship of the applicant agency to the State vocational rehabilitation agency or agencies and to other facilities and agencies in the community; (h) a description of community support for the project and preliminary project planning; (i) in the case of proposed acquisition of buildings or land, a statement as to its suitability for rehabilitation facility purposes and evidence of its value as determined by qualified assessors; (j) an itemized equipment list including all requested initial equipment; (k) a set of schematic drawings of the proposed project; and (1) such other information as the Administrator may require.

§ 404.22 Assurances from applicant.

In addition to any other requirements imposed by law, each construction grant shall be subject to the condition that the applicant will furnish and comply with the following assurances. The Administrator may, at any time, approve exceptions to those conditions and assurances where he finds that such exceptions are not inconsistent with the act and the purposes of the program:

(a) That the applicant has or will have a fee simple or such other estate or interest in the site, including necessary easements and rights-of-way, sufficient to assure for a period of not less than 50 years undisturbed use and possession for the purpose of the construction and operation of the facility.

(b) That the Administrator's approval of the final working drawings and specifications, which must conform to the standards of construction and equipment specified by the Administrator, and the regulations of the Secretary of Labor relating to safety standards for rehabilitation facilities will be obtained before the project is advertised or placed on the market for bidding.

(c) That the applicant will perform actual construction work by the lump sum (fixed price) contract method; employ adequate methods of obtaining open competitive bidding prior to awarding the construction contract, either by public advertising or circularizing three or more bidders, and award the contract to the responsible bidder submitting the lowest acceptable bid; and will purchase all fixed equipment by adequate methods of open competitive bidding (including such fixed equipment as is not purchased through the construction contract) and award the contract to the responsible bidder submitting the lowest acceptable bid, except that competitive bidding procedures need not be employed for the purchase of specific fixed equipment items which are not included in the construction contract where such action is found by the Administrator, upon written justification by the applicant, to be required by the needs of the program.

(d) That applicant will enter into no construction contract or contracts for the project or a part thereof, the cost of which is in excess of the estimated cost approved in the application for that portion of the work covered by the plans and specifications, without the prior approval of the Administrator.

(e) That applicant will submit to the Administrator for prior approval changes that substantially alter the scope of work, function, utilities, or safety of the facility.

(f) That applicant will construct the project, or cause it to be constructed, to final completion in accordance with the application and approved plans and specifications.

(g) That applicant will maintain adequate and separate accounting and fiscal records and accounts for all funds provided from any source to pay the cost of the project, and permit audit of such records and accounts at any reasonable times.

(h) That applicant will furnish progress reports and such other information as the Administrator may require.

(i) That applicant will provide and maintain competent and adequate architectural or engineering supervision and inspection at the construction site to insure that the completed work conforms with the approved plans and specifications.

(j) That sufficient funds will be available to meet the non-Federal share of

the cost of construction. Availability of funds for the non-Federal share of construction costs shall mean (1) funds immediately available, placed in escrow, or acceptably pledged, or (2) funds or fund sources specifically earmarked in a sum sufficient for that purpose, or (3) other assurances acceptable to the Administrator.

(k) That sufficient funds will be available, when construction of the project is completed, for its effective use as a rehabilitation facility as evidenced by a proposed operating budget for the 2-year period immediately following completion of the project, or by such other evidence as the Administrator finds acceptable.

(1) (1) That any laborer or mechanic employed by any contractor or subcontractor in the performance of work on the construction of the facility will be paid wages at rates not less than those prevailing on similar construction in the locality as determined under the DavisBacon Act (40 U.S.C. 276a et seq.) and will receive compensation at a rate not less than one and one-half times his basic rate of pay for all hours worked in any workweek in excess of 8 hours in any calendar day or 40 hours in the workweek (40 U.S.C. 327-332); and

(2) That the following conditions and provisions will be included in all construction contracts:

(i) Provisions pertaining to applicable labor standards provisions of the Copeland Act (Anti-Kickback) and the Contract Work Hours Standards Act, except in the case of contracts in the amount of $2,000 or less, and the rules and regulations issued under each of these acts.

(ii) The contractor shall furnish performance and payment bonds, each of which shall be in the full amount of the contract price, and shall maintain, during the life of the contract, adequate fire, workmen's compensation, public liability, and property damage insurance.

(iii) Representatives of the Administrator will have access at all reasonable times to work wherever it is in preparation or progress, and the contractor shall provide proper facilities for such access and inspection.

(m) That the facility will be operated and maintained in accordance with the minimum standards prescribed by the appropriate State regulatory agency for the maintenance and operation of such facilities.