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UNIFORM GUIDANCE (2 CRF PART 200)
https://www.ecfr.gov
PART 200 - UNIFORM ADMINISTRATIVE
REQUIREMENTS, COST PRINCIPLES, AND AUDIT
REQUIREMENTS FOR FEDERAL AWARDS
Subpart D: Post Federal Award Requirements
Procurement Standards
§200.317 Procurements by states.
When procuring property and services under a Federal award, a State must follow the same
policies and procedures it uses for procurements from its non-Federal funds. The State will
comply with §§200.321, 200.322, and 200.323 and ensure that every purchase order or other
contract includes any clauses required by §200.327. All other non-Federal entities, including
subrecipients of a State, must follow the procurement standards in §§200.318 through 200.327.
§200.318 General procurement standards.
(a) The non-Federal entity must have and use documented procurement procedures, consistent
with State, local, and tribal laws and regulations and the standards of this section, for the
acquisition of property or services required under a Federal award or subaward. The non-Federal
entity's documented procurement procedures must conform to the procurement standards
identified in §§200.317 through 200.327.
(b) Non-Federal entities must maintain oversight to ensure that contractors perform in
accordance with the terms, conditions, and specifications of their contracts or purchase orders.
(c)(1) The non-Federal entity must maintain written standards of conduct covering conflicts of
interest and governing the actions of its employees engaged in the selection, award and
administration of contracts. No employee, officer, or agent may participate in the selection,
award, or administration of a contract supported by a Federal award if he or she has a real or
apparent conflict of interest. Such a conflict of interest would arise when the employee, officer,
or agent, any member of his or her immediate family, his or her partner, or an organization which
employs or is about to employ any of the parties indicated herein, has a financial or other interest
in or a tangible personal benefit from a firm considered for a contract. The officers, employees,
and agents of the non-Federal entity may neither solicit nor accept gratuities, favors, or anything
of monetary value from contractors or parties to subcontracts. However, non-Federal entities
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may set standards for situations in which the financial interest is not substantial or the gift is an
unsolicited item of nominal value. The standards of conduct must provide for disciplinary actions
to be applied for violations of such standards by officers, employees, or agents of the non-
Federal entity.
(2) If the non-Federal entity has a parent, affiliate, or subsidiary organization that is not a State,
local government, or Indian tribe, the non-Federal entity must also maintain written standards of
conduct covering organizational conflicts of interest. Organizational conflicts of interest means
that because of relationships with a parent company, affiliate, or subsidiary organization, the
non-Federal entity is unable or appears to be unable to be impartial in conducting a procurement
action involving a related organization.
(d) The non-Federal entity's procedures must avoid acquisition of unnecessary or duplicative
items. Consideration should be given to consolidating or breaking out procurements to obtain a
more economical purchase. Where appropriate, an analysis will be made of lease versus purchase
alternatives, and any other appropriate analysis to determine the most economical approach.
(e) To foster greater economy and efficiency, and in accordance with efforts to promote cost-
effective use of shared services across the Federal Government, the non-Federal entity is
encouraged to enter into state and local intergovernmental agreements or inter-entity agreements
where appropriate for procurement or use of common or shared goods and services. Competition
requirements will be met with documented procurement actions using strategic sourcing, shared
services, and other similar procurement arrangements.
(f) The non-Federal entity is encouraged to use Federal excess and surplus property in lieu of
purchasing new equipment and property whenever such use is feasible and reduces project costs.
(g) The non-Federal entity is encouraged to use value engineering clauses in contracts for
construction projects of sufficient size to offer reasonable opportunities for cost reductions.
Value engineering is a systematic and creative analysis of each contract item or task to ensure
that its essential function is provided at the overall lower cost.
(h) The non-Federal entity must award contracts only to responsible contractors possessing the
ability to perform successfully under the terms and conditions of a proposed procurement.
Consideration will be given to such matters as contractor integrity, compliance with public
policy, record of past performance, and financial and technical resources. See also §200.214.
(i) The non-Federal entity must maintain records sufficient to detail the history of procurement.
These records will include, but are not necessarily limited to, the following: Rationale for the
method of procurement, selection of contract type, contractor selection or rejection, and the basis
for the contract price.
(j)(1) The non-Federal entity may use a time-and-materials type contract only after a
determination that no other contract is suitable and if the contract includes a ceiling price that the
contractor exceeds at its own risk. Time-and-materials type contract means a contract whose cost
to a non-Federal entity is the sum of:
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(i) The actual cost of materials; and
(ii) Direct labor hours charged at fixed hourly rates that reflect wages, general and administrative
expenses, and profit.
(2) Since this formula generates an open-ended contract price, a time-and-materials contract
provides no positive profit incentive to the contractor for cost control or labor efficiency.
Therefore, each contract must set a ceiling price that the contractor exceeds at its own risk.
Further, the non-Federal entity awarding such a contract must assert a high degree of oversight in
order to obtain reasonable assurance that the contractor is using efficient methods and effective
cost controls.
(k) The non-Federal entity alone must be responsible, in accordance with good administrative
practice and sound business judgment, for the settlement of all contractual and administrative
issues arising out of procurements. These issues include, but are not limited to, source
evaluation, protests, disputes, and claims. These standards do not relieve the non-Federal entity
of any contractual responsibilities under its contracts. The Federal awarding agency will not
substitute its judgment for that of the non-Federal entity unless the matter is primarily a Federal
concern. Violations of law will be referred to the local, state, or Federal authority having proper
jurisdiction.
[85 FR 49543, Aug. 13, 2020, as amended at 86 FR 10440, Feb. 22, 2021]
§200.319 Competition.
(a) All procurement transactions for the acquisition of property or services required under a
Federal award must be conducted in a manner providing full and open competition consistent
with the standards of this section and §200.320.
(b) In order to ensure objective contractor performance and eliminate unfair competitive
advantage, contractors that develop or draft specifications, requirements, statements of work, or
invitations for bids or requests for proposals must be excluded from competing for such
procurements. Some of the situations considered to be restrictive of competition include but are
not limited to:
(1) Placing unreasonable requirements on firms in order for them to qualify to do business;
(2) Requiring unnecessary experience and excessive bonding;
(3) Noncompetitive pricing practices between firms or between affiliated companies;
(4) Noncompetitive contracts to consultants that are on retainer contracts;
(5) Organizational conflicts of interest;
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(6) Specifying only a “brand name” product instead of allowing “an equal” product to be offered
and describing the performance or other relevant requirements of the procurement; and
(7) Any arbitrary action in the procurement process.
(c) The non-Federal entity must conduct procurements in a manner that prohibits the use of
statutorily or administratively imposed state, local, or tribal geographical preferences in the
evaluation of bids or proposals, except in those cases where applicable Federal statutes expressly
mandate or encourage geographic preference. Nothing in this section preempts state licensing
laws. When contracting for architectural and engineering (A/E) services, geographic location
may be a selection criterion provided its application leaves an appropriate number of qualified
firms, given the nature and size of the project, to compete for the contract.
(d) The non-Federal entity must have written procedures for procurement transactions. These
procedures must ensure that all solicitations:
(1) Incorporate a clear and accurate description of the technical requirements for the material,
product, or service to be procured. Such description must not, in competitive procurements,
contain features which unduly restrict competition. The description may include a statement of
the qualitative nature of the material, product or service to be procured and, when necessary,
must set forth those minimum essential characteristics and standards to which it must conform if
it is to satisfy its intended use. Detailed product specifications should be avoided if at all
possible. When it is impractical or uneconomical to make a clear and accurate description of the
technical requirements, a “brand name or equivalent” description may be used as a means to
define the performance or other salient requirements of procurement. The specific features of the
named brand which must be met by offers must be clearly stated; and
(2) Identify all requirements which the offerors must fulfill and all other factors to be used in
evaluating bids or proposals.
(e) The non-Federal entity must ensure that all prequalified lists of persons, firms, or products
which are used in acquiring goods and services are current and include enough qualified sources
to ensure maximum open and free competition. Also, the non-Federal entity must not preclude
potential bidders from qualifying during the solicitation period.
(f) Noncompetitive procurements can only be awarded in accordance with §200.320(c).
§200.320 Methods of procurement to be followed.
The non-Federal entity must have and use documented procurement procedures, consistent with
the standards of this section and §§200.317, 200.318, and 200.319 for any of the following
methods of procurement used for the acquisition of property or services required under a Federal
award or sub-award.
(a) Informal procurement methods. When the value of the procurement for property or services
under a Federal award does not exceed the simplified acquisition threshold (SAT), as defined in
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§200.1, or a lower threshold established by a non-Federal entity, formal procurement methods
are not required. The non-Federal entity may use informal procurement methods to expedite the
completion of its transactions and minimize the associated administrative burden and cost. The
informal methods used for procurement of property or services at or below the SAT include:
(1) Micro-purchases—(i) Distribution. The acquisition of supplies or services, the aggregate
dollar amount of which does not exceed the micro-purchase threshold (See the definition of
micro-purchase in §200.1). To the maximum extent practicable, the non-Federal entity should
distribute micro-purchases equitably among qualified suppliers.
(ii) Micro-purchase awards. Micro-purchases may be awarded without soliciting competitive
price or rate quotations if the non-Federal entity considers the price to be reasonable based on
research, experience, purchase history or other information and documents it files accordingly.
Purchase cards can be used for micro-purchases if procedures are documented and approved by
the non-Federal entity.
(iii) Micro-purchase thresholds. The non-Federal entity is responsible for determining and
documenting an appropriate micro-purchase threshold based on internal controls, an evaluation
of risk, and its documented procurement procedures. The micro-purchase threshold used by the
non-Federal entity must be authorized or not prohibited under State, local, or tribal laws or
regulations. Non-Federal entities may establish a threshold higher than the Federal threshold
established in the Federal Acquisition Regulations (FAR) in accordance with paragraphs
(a)(1)(iv) and (v) of this section.
(iv) Non-Federal entity increase to the micro-purchase threshold up to $50,000. Non-Federal
entities may establish a threshold higher than the micro-purchase threshold identified in the FAR
in accordance with the requirements of this section. The non-Federal entity may self-certify a
threshold up to $50,000 on an annual basis and must maintain documentation to be made
available to the Federal awarding agency and auditors in accordance with §200.334. The self-
certification must include a justification, clear identification of the threshold, and supporting
documentation of any of the following:
(A) A qualification as a low-risk auditee, in accordance with the criteria in §200.520 for the most
recent audit;
(B) An annual internal institutional risk assessment to identify, mitigate, and manage financial
risks; or,
(C) For public institutions, a higher threshold consistent with State law.
(v) Non-Federal entity increase to the micro-purchase threshold over $50,000. Micro-purchase
thresholds higher than $50,000 must be approved by the cognizant agency for indirect costs. The
non-federal entity must submit a request with the requirements included in paragraph (a)(1)(iv)
of this section. The increased threshold is valid until there is a change in status in which the
justification was approved.
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(2) Small purchases—(i) Small purchase procedures. The acquisition of property or services, the
aggregate dollar amount of which is higher than the micro-purchase threshold but does not
exceed the simplified acquisition threshold. If small purchase procedures are used, price or rate
quotations must be obtained from an adequate number of qualified sources as determined
appropriate by the non-Federal entity.
(ii) Simplified acquisition thresholds. The non-Federal entity is responsible for determining an
appropriate simplified acquisition threshold based on internal controls, an evaluation of risk and
its documented procurement procedures which must not exceed the threshold established in the
FAR. When applicable, a lower simplified acquisition threshold used by the non-Federal entity
must be authorized or not prohibited under State, local, or tribal laws or regulations.
(b) Formal procurement methods. When the value of the procurement for property or services
under a Federal financial assistance award exceeds the SAT, or a lower threshold established by
a non-Federal entity, formal procurement methods are required. Formal procurement methods
require following documented procedures. Formal procurement methods also require public
advertising unless a non-competitive procurement can be used in accordance with §200.319 or
paragraph (c) of this section. The following formal methods of procurement are used for
procurement of property or services above the simplified acquisition threshold or a value below
the simplified acquisition threshold the non-Federal entity determines to be appropriate:
(1) Sealed bids. A procurement method in which bids are publicly solicited and a firm fixed-
price contract (lump sum or unit price) is awarded to the responsible bidder whose bid,
conforming with all the material terms and conditions of the invitation for bids, is the lowest in
price. The sealed bids method is the preferred method for procuring construction, if the
conditions.
(i) In order for sealed bidding to be feasible, the following conditions should be present:
(A) A complete, adequate, and realistic specification or purchase description is available;
(B) Two or more responsible bidders are willing and able to compete effectively for the business;
and
(C) The procurement lends itself to a firm fixed price contract and the selection of the successful
bidder can be made principally on the basis of price.
(ii) If sealed bids are used, the following requirements apply:
(A) Bids must be solicited from an adequate number of qualified sources, providing them
sufficient response time prior to the date set for opening the bids, for local, and tribal
governments, the invitation for bids must be publicly advertised;
(B) The invitation for bids, which will include any specifications and pertinent attachments, must
define the items or services in order for the bidder to properly respond;
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(C) All bids will be opened at the time and place prescribed in the invitation for bids, and for
local and tribal governments, the bids must be opened publicly;
(D) A firm fixed price contract award will be made in writing to the lowest responsive and
responsible bidder. Where specified in bidding documents, factors such as discounts,
transportation cost, and life cycle costs must be considered in determining which bid is lowest.
Payment discounts will only be used to determine the low bid when prior experience indicates
that such discounts are usually taken advantage of; and
(E) Any or all bids may be rejected if there is a sound documented reason.
(2) Proposals. A procurement method in which either a fixed price or cost-reimbursement type
contract is awarded. Proposals are generally used when conditions are not appropriate for the use
of sealed bids. They are awarded in accordance with the following requirements:
(i) Requests for proposals must be publicized and identify all evaluation factors and their relative
importance. Proposals must be solicited from an adequate number of qualified offerors. Any
response to publicized requests for proposals must be considered to the maximum extent
practical;
(ii) The non-Federal entity must have a written method for conducting technical evaluations of
the proposals received and making selections;
(iii) Contracts must be awarded to the responsible offeror whose proposal is most advantageous
to the non-Federal entity, with price and other factors considered; and
(iv) The non-Federal entity may use competitive proposal procedures for qualifications-based
procurement of architectural/engineering (A/E) professional services whereby offeror's
qualifications are evaluated and the most qualified offeror is selected, subject to negotiation of
fair and reasonable compensation. The method, where price is not used as a selection factor, can
only be used in procurement of A/E professional services. It cannot be used to purchase other
types of services though A/E firms that are a potential source to perform the proposed effort.
(c) Noncompetitive procurement. There are specific circumstances in which noncompetitive
procurement can be used. Noncompetitive procurement can only be awarded if one or more of
the following circumstances apply:
(1) The acquisition of property or services, the aggregate dollar amount of which does not exceed
the micro-purchase threshold (see paragraph (a)(1) of this section);
(2) The item is available only from a single source;
(3) The public exigency or emergency for the requirement will not permit a delay resulting from
publicizing a competitive solicitation;
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(4) The Federal awarding agency or pass-through entity expressly authorizes a noncompetitive
procurement in response to a written request from the non-Federal entity; or
(5) After solicitation of a number of sources, competition is determined inadequate.
§200.321 Contracting with small and minority businesses,
women's business enterprises, and labor surplus area firms.
(a) The non-Federal entity must take all necessary affirmative steps to assure that minority
businesses, women's business enterprises, and labor surplus area firms are used when possible.
(b) Affirmative steps must include:
(1) Placing qualified small and minority businesses and women's business enterprises on
solicitation lists;
(2) Assuring that small and minority businesses, and women's business enterprises are solicited
whenever they are potential sources;
(3) Dividing total requirements, when economically feasible, into smaller tasks or quantities to
permit maximum participation by small and minority businesses, and women's business
enterprises;
(4) Establishing delivery schedules, where the requirement permits, which encourage
participation by small and minority businesses, and women's business enterprises;
(5) Using the services and assistance, as appropriate, of such organizations as the Small Business
Administration and the Minority Business Development Agency of the Department of
Commerce; and
(6) Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps
listed in paragraphs (b)(1) through (5) of this section.
§200.322 Domestic preferences for procurements.
(a) As appropriate and to the extent consistent with law, the non-Federal entity should, to the
greatest extent practicable under a Federal award, provide a preference for the purchase,
acquisition, or use of goods, products, or materials produced in the United States (including but
not limited to iron, aluminum, steel, cement, and other manufactured products). The
requirements of this section must be included in all subawards including all contracts and
purchase orders for work or products under this award.
(b) For purposes of this section:
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(1) “Produced in the United States” means, for iron and steel products, that all manufacturing
processes, from the initial melting stage through the application of coatings, occurred in the
United States.
(2) “Manufactured products” means items and construction materials composed in whole or in
part of non-ferrous metals such as aluminum; plastics and polymer-based products such as
polyvinyl chloride pipe; aggregates such as concrete; glass, including optical fiber; and lumber.
§200.323 Procurement of recovered materials.
A non-Federal entity that is a state agency or agency of a political subdivision of a state and its
contractors must comply with section 6002 of the Solid Waste Disposal Act, as amended by the
Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring
only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR
part 247 that contain the highest percentage of recovered materials practicable, consistent with
maintaining a satisfactory level of competition, where the purchase price of the item exceeds
$10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000;
procuring solid waste management services in a manner that maximizes energy and resource
recovery; and establishing an affirmative procurement program for procurement of recovered
materials identified in the EPA guidelines.
§200.324 Contract cost and price.
(a) The non-Federal entity must perform a cost or price analysis in connection with every
procurement action in excess of the Simplified Acquisition Threshold including contract
modifications. The method and degree of analysis is dependent on the facts surrounding the
particular procurement situation, but as a starting point, the non-Federal entity must make
independent estimates before receiving bids or proposals.
(b) The non-Federal entity must negotiate profit as a separate element of the price for each
contract in which there is no price competition and in all cases where cost analysis is performed.
To establish a fair and reasonable profit, consideration must be given to the complexity of the
work to be performed, the risk borne by the contractor, the contractor's investment, the amount
of subcontracting, the quality of its record of past performance, and industry profit rates in the
surrounding geographical area for similar work.
(c) Costs or prices based on estimated costs for contracts under the Federal award are allowable
only to the extent that costs incurred or cost estimates included in negotiated prices would be
allowable for the non-Federal entity under subpart E of this part. The non-Federal entity may
reference its own cost principles that comply with the Federal cost principles.
(d) The cost plus a percentage of cost and percentage of construction cost methods of contracting
must not be used.
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§200.325 Federal awarding agency or pass-through entity
review.
(a) The non-Federal entity must make available, upon request of the Federal awarding agency or
pass-through entity, technical specifications on proposed procurements where the Federal
awarding agency or pass-through entity believes such review is needed to ensure that the item or
service specified is the one being proposed for acquisition. This review generally will take place
prior to the time the specification is incorporated into a solicitation document. However, if the
non-Federal entity desires to have the review accomplished after a solicitation has been
developed, the Federal awarding agency or pass-through entity may still review the
specifications, with such review usually limited to the technical aspects of the proposed
purchase.
(b) The non-Federal entity must make available upon request, for the Federal awarding agency or
pass-through entity pre-procurement review, procurement documents, such as requests for
proposals or invitations for bids, or independent cost estimates, when:
(1) The non-Federal entity's procurement procedures or operation fails to comply with the
procurement standards in this part;
(2) The procurement is expected to exceed the Simplified Acquisition Threshold and is to be
awarded without competition or only one bid or offer is received in response to a solicitation;
(3) The procurement, which is expected to exceed the Simplified Acquisition Threshold,
specifies a “brand name” product;
(4) The proposed contract is more than the Simplified Acquisition Threshold and is to be
awarded to other than the apparent low bidder under a sealed bid procurement; or
(5) A proposed contract modification changes the scope of a contract or increases the contract
amount by more than the Simplified Acquisition Threshold.
(c) The non-Federal entity is exempt from the pre-procurement review in paragraph (b) of this
section if the Federal awarding agency or pass-through entity determines that its procurement
systems comply with the standards of this part.
(1) The non-Federal entity may request that its procurement system be reviewed by the Federal
awarding agency or pass-through entity to determine whether its system meets these standards in
order for its system to be certified. Generally, these reviews must occur where there is
continuous high-dollar funding, and third-party contracts are awarded on a regular basis;
(2) The non-Federal entity may self-certify its procurement system. Such self-certification must
not limit the Federal awarding agency's right to survey the system. Under a self-certification
procedure, the Federal awarding agency may rely on written assurances from the non-Federal
entity that it is complying with these standards. The non-Federal entity must cite specific
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policies, procedures, regulations, or standards as being in compliance with these requirements
and have its system available for review.
§200.326 Bonding requirements.
For construction or facility improvement contracts or subcontracts exceeding the Simplified
Acquisition Threshold, the Federal awarding agency or pass-through entity may accept the
bonding policy and requirements of the non-Federal entity provided that the Federal awarding
agency or pass-through entity has made a determination that the Federal interest is adequately
protected. If such a determination has not been made, the minimum requirements must be as
follows:
(a) A bid guarantee from each bidder equivalent to five percent of the bid price. The “bid
guarantee” must consist of a firm commitment such as a bid bond, certified check, or other
negotiable instrument accompanying a bid as assurance that the bidder will, upon acceptance of
the bid, execute such contractual documents as may be required within the time specified.
(b) A performance bond on the part of the contractor for 100 percent of the contract price. A
“performance bond” is one executed in connection with a contract to secure fulfillment of all the
contractor's requirements under such contract.
(c) A payment bond on the part of the contractor for 100 percent of the contract price. A
“payment bond” is one executed in connection with a contract to assure payment as required by
law of all persons supplying labor and material in the execution of the work provided for in the
contract.
§200.327 Contract provisions.
The non-Federal entity's contracts must contain the applicable provisions described in appendix
II to this part.
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Appendix II to Part 200 - Contract Provisions for Non-
Federal Entity Contracts Under Federal Awards
In addition to other provisions required by the Federal agency or non-Federal entity, all contracts
made by the non-Federal entity under the Federal award must contain provisions covering the
following, as applicable.
(A) Contracts for more than the simplified acquisition threshold, which is the inflation adjusted
amount determined by the Civilian Agency Acquisition Council and the Defense Acquisition
Regulations Council (Councils) as authorized by 41 U.S.C. 1908, must address administrative,
contractual, or legal remedies in instances where contractors violate or breach contract terms,
and provide for such sanctions and penalties as appropriate.
(B) All contracts in excess of $10,000 must address termination for cause and for convenience by
the non-Federal entity including the manner by which it will be effected and the basis for
settlement.
(C) Equal Employment Opportunity. Except as otherwise provided under 41 CFR Part 60, all
contracts that meet the definition of “federally assisted construction contract” in 41 CFR Part 60-
1.3 must include the equal opportunity clause provided under 41 CFR 60-1.4(b), in accordance
with Executive Order 11246, “Equal Employment Opportunity” (30 FR 12319, 12935, 3 CFR
Part, 1964-1965 Comp., p. 339), as amended by Executive Order 11375, “Amending Executive
Order 11246 Relating to Equal Employment Opportunity,” and implementing regulations at 41
CFR part 60, “Office of Federal Contract Compliance Programs, Equal Employment
Opportunity, Department of Labor.”
(D) Davis-Bacon Act, as amended (40 U.S.C. 3141-3148). When required by Federal program
legislation, all prime construction contracts in excess of $2,000 awarded by non-Federal entities
must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. 3141-3144, and
3146-3148) as supplemented by Department of Labor regulations (29 CFR Part 5, “Labor
Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted
Construction”). In accordance with the statute, contractors must be required to pay wages to
laborers and mechanics at a rate not less than the prevailing wages specified in a wage
determination made by the Secretary of Labor. In addition, contractors must be required to pay
wages not less than once a week. The non-Federal entity must place a copy of the current
prevailing wage determination issued by the Department of Labor in each solicitation. The
decision to award a contract or subcontract must be conditioned upon the acceptance of the wage
determination. The non-Federal entity must report all suspected or reported violations to the
Federal awarding agency. The contracts must also include a provision for compliance with the
Copeland “Anti-Kickback” Act (40 U.S.C. 3145), as supplemented by Department of Labor
regulations (29 CFR Part 3, “Contractors and Subcontractors on Public Building or Public Work
Financed in Whole or in Part by Loans or Grants from the United States”). The Act provides that
each contractor or subrecipient must be prohibited from inducing, by any means, any person
employed in the construction, completion, or repair of public work, to give up any part of the
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compensation to which he or she is otherwise entitled. The non-Federal entity must report all
suspected or reported violations to the Federal awarding agency.
(E) Contract Work Hours and Safety Standards Act (40 U.S.C. 3701-3708). Where applicable,
all contracts awarded by the non-Federal entity in excess of $100,000 that involve the
employment of mechanics or laborers must include a provision for compliance with 40 U.S.C.
3702 and 3704, as supplemented by Department of Labor regulations (29 CFR Part 5). Under 40
U.S.C. 3702 of the Act, each contractor must be required to compute the wages of every
mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the
standard work week is permissible provided that the worker is compensated at a rate of not less
than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the
work week. The requirements of 40 U.S.C. 3704 are applicable to construction work and provide
that no laborer or mechanic must be required to work in surroundings or under working
conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the
purchases of supplies or materials or articles ordinarily available on the open market, or contracts
for transportation or transmission of intelligence.
(F) Rights to Inventions Made Under a Contract or Agreement. If the Federal award meets the
definition of “funding agreement” under 37 CFR § 401.2 (a) and the recipient or subrecipient
wishes to enter into a contract with a small business firm or nonprofit organization regarding the
substitution of parties, assignment or performance of experimental, developmental, or research
work under that “funding agreement,” the recipient or subrecipient must comply with the
requirements of 37 CFR Part 401, “Rights to Inventions Made by Nonprofit Organizations and
Small Business Firms Under Government Grants, Contracts and Cooperative Agreements,” and
any implementing regulations issued by the awarding agency.
(G) Clean Air Act (42 U.S.C. 7401-7671q.) and the Federal Water Pollution Control Act (33
U.S.C. 1251-1387), as amended - Contracts and subgrants of amounts in excess of $150,000
must contain a provision that requires the non-Federal award to agree to comply with all
applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. 7401-
7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. 1251-1387).
Violations must be reported to the Federal awarding agency and the Regional Office of the
Environmental Protection Agency (EPA).
(H) Debarment and Suspension (Executive Orders 12549 and 12689) - A contract award (see 2
CFR 180.220) must not be made to parties listed on the governmentwide exclusions in the
System for Award Management (SAM), in accordance with the OMB guidelines at 2 CFR 180
that implement Executive Orders 12549 (3 CFR part 1986 Comp., p. 189) and 12689 (3 CFR
part 1989 Comp., p. 235), “Debarment and Suspension.” SAM Exclusions contains the names of
parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared
ineligible under statutory or regulatory authority other than Executive Order 12549.
(I) Byrd Anti-Lobbying Amendment (31 U.S.C. 1352) - Contractors that apply or bid for an
award exceeding $100,000 must file the required certification. Each tier certifies to the tier above
that it will not and has not used Federal appropriated funds to pay any person or organization for
influencing or attempting to influence an officer or employee of any agency, a member of
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Congress, officer or employee of Congress, or an employee of a member of Congress in
connection with obtaining any Federal contract, grant or any other award covered by 31 U.S.C.
1352. Each tier must also disclose any lobbying with non-Federal funds that takes place in
connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up
to the non-Federal award.
(J) See § 200.323.
(K) See § 200.216.
(L) See § 200.322.
[78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75888, Dec. 19, 2014; 85 FR 49577, Aug.
13, 2020]
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