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Ordinance No. 7,007940526-1 ORDINANCE NO. 7007 • AN ORDINANCE AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE AND THE CITY CLERK TO ATTEST TO A COOPERATIVE AGREEMENT WITH THE U.S. FISH AND WILDLIFE SERVICE TO RESTORE AREAS OF THE BAYTOWN NATURE CENTER (BROWNWOOD); AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. WHEREAS, the U. S. Fish and Wildlife Service wish to assist the City in cleaning and restoring certain areas of the Baytown Nature Center; and WHEREAS, the initial project to be performed will consist of cleanup of debris, demolition of houses, removal of slabs and driveways, construction of a wave barrier, and establishment of a one -acre marsh at San Jacinto Point; and WHEREAS, upon successful completion of this project, the U.S. Fish and Wildlife Service anticipates that funds for additional projects will be available for 1995 and succeeding years thereafter; and WHEREAS, the City will initially be responsible for the outlay of the monies associated with this project; however, the U.S. Fish and Wildlife Service shall reimburse the City as frequently as monthly upon submission of proper invoices for all project expenses contemplated in this agreement up to an amount of $50,000 per year; NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS: Section 1: That the City Council of the City of Baytown, Texas, hereby authorizes and directs the City Manager and City Clerk of the City of Baytown to execute and attest to a Cooperative Agreement with the U.S. Fish and Wildlife Service. A copy of said agreement is attached hereto, marked Exhibit "A," and made a part hereof for all intents and purposes. Section 2: This ordinance shall take effect immediately from and after its passage by the City Council of the City of Baytown. INTRODUCED, READ and PASSED by the affirmative vote of the City Council of the City of Baytown this the 26th day of May, 1994. / .,� Co. PETE C. ALFARO, Mayor 0 • ATTEST. Ah"") V"-9161 E LEEN P. P., C ty Clerk 4NICr�IORAZMI&EZ, SP., City Attorney • 940526-1a Cooperative Agreement Hos 1448-00002-94-�_ DC 2 N/A . Cost structures N/A Amount Obligated: N/A • coon Between U.S. FISH AND WILDLIFE SERVICE ASaIQN 2 P.O. BOX 1306 ALBUQUERQUR, NEW MEXICO 87103-1306 100 And CITY OF BAYTOWN 2401 ahPJeT sTRaar BAYTOWN, TEXAS 77522-0424 The City of Baytown, hereinafter referred to as the "City", has as its purpose the management of public park lands for the City of Baytown, Texas. The V.S. Fish and Wildlife Service, hereinafter referred to as the "Sorvice-, has interests in and responsibilities for the protection and enhancement of coastal habitats used by migratory birds, endangered species, and wetland communities. The purpose of this agreement is to facilitate the cooperative efforts of the City and the Service to support work by the City to protect and enhance the public's enjoyment of, and restore to a natural condition certain areas that have been degraded due to subsidence, erosion, and past storm events that are administered by the City. This agreement is entered into under authorities of the Fish and Wildlife coordination Act, 16 U.S.C. 661 to 666, Migratory Bird Treaty Act of 1318, 16 V.S.C. 703 to 712, and the Endangered Species Act of 1973, 16 V.S.C. 1531-15341 as amended. II.Scene of ffgr A. The service shall provide expertise and a portion of the funding necessary for the planning and restoration of shoreline vegetation, enhancement of wetland areas, and placement of public use areas to maximise the habitat diversity and public enjoyment_ B. The City shall provide necessary staff time, administration, and labor necessary to plan and construct the restoration features and the public use facilities. C. Both parties agree to work together to enhance this area that was degraded by subsidence to an area to natural habitats suitable for this area by judicious habitat improvement projects. And, both parties mutually agree to work together to enhance this area so it can be better utilized by native enthusiast such as birdwatchers, fishermen, hikers, bicyclists, educational groups, and photographers. Page 1 of 4 EXHIBIT A Cooperative Agreement No: 1449 -00002 -94 - III. sveeial Provisions A. The results of any studies or investigations accomplished under this agreement may be published jointly by the parties or by either party separately. Appropriate credits to the United States Department of the Interior, FLsh and Wildlife service, shall be included in any formally published article providing the service does not otherwi" deem it appropriate to issue a disclaimer. Authorship shall not incur any privileges of copyright or restriction on distribution. B. Any research data collection under this agreement shall be jointly owned by the parties to this agreement. Both parties shall have complete and unlimited access to all such data. le C. hews releases and other publicity issued by either party will give due credit to this agreement and cooperators to this agreement and be approved prior to release by the Service's Regional Public Affairs Office. D. Title to all property acquired with Service funds will remain vested in the Service. B. No member of, or delegate to, the Congress or resident commissioner, shall be admitted to any share or part of this agreementf or to any benefit that may rise therefrom. This provision shall not be construed to extend to this agreement if made with a corporation for its general benefit. F. This agreement will become effective upon the date of the last signature(s) by both/all parties to the agreement. It will remain in force thereafter, unless terminated by tither party. It rill be subject to annual amendments, or as otherwise becomes necessary, which outline annual projects to be accomplished within the agreement year. In no event will this agreement remain in effect for an overall period longer then five (5) years from its original effective date, nor shall funding exceed a grand total level of 5250,000. G. This agreement may be amended or revised by written mutual agreement of the parties, or may be terminated by a party 60 calendar days from receipt of written notice. $. Nothing herein shall be construed as delegating the service to expend, or as involving the united States in any contract or other obligation for the future payment of funds in excess of appropriations authorized by law and administratively allocated for this work. IV. General EXRXLGLOM2 The V.S. Fish and Wildlife service General Provisions for Grants and Cooperative Agreements, dated April 1993, are incorporated as attached, Attachment A. V. Period of P-arfo=anc* The overall performance of this Cooperative Agreement is for a period of five (5) years from the date of the last signature. The period of • performance for the present agreement shall not exceed the last date of the government's current fiscal year. Page 2 of 4 • Cooperative Agreement Not 1448-00002►94- Financial contribution by the Service to carry out projects agreed upon by the parties to this agreement shall be up to $50,000 in any fiscal year, as specifically defined and itemised in each amendment. As much as 80 percent of the projected cost, on a project -by -project basis, may be requested at any time during the life of this agreement. The remaining amount will be made available after the Service project officer accepts the final report. Funds not expended during the year of obligation Will be carried forward to the succeeding fiscal year to continue the work for which funds were originally obligated. Prior year funds shall be expended prior to expending current year funds. The City shall account for and invoice all project expenditures under this agreement on a monthly basis throughout each fiscal year. In accordance with the Q.S. Treasury regulations, paynmts Hili be made within 30 calendar days after receipt and approval of a proper invoice. Invoices shall be submitted to the Service Project officer for review and recommendation for payment to be forwarded to the Contracting Officer for approval and submission for disbursement. A. U.S. Fish and Wildlife Service: Chief, Branch of Contaminants 17629 E1 Camino Real, Suite 1211 Houston, Texas 77038 Phone: (713) 286-8282 B. city of Baytown: Bobby Rountree, city Manager (and/or his successors) 2401 Market Street P.O. Box 424 Baytown, Texas 77522-0424 Phone: (713) 420-6500 V111. Reports Reports shall be submitted on a annual basis to the Service Project Officer, outlining the status of the program and the accomplishments to date. All reports shall be provided as required at the time projects are consummated and as added by amendments to the original agreement. IX. Certifications certifications applicable to Federal Grants and Cooperative Agreements are subject to execution and are made a part of this agreement as attached, Attachment 8. Page 3 of 4 Cooperative Agreemat Flo: 1448.00002-94- In Witness Whereof, the parties have caused this Cooperative Agreement to be wwouted as of the date of last signature below: FOR THE CITY OF BATTOWB: m Bobby Rountree, City Manager FOR THz V.S. rIsH AND WILOLiFE SERVICE, REGION 2 Regional Director Chief, Contracting and General services Page 4 of 4 0 Date Data Date n L� • Cooperative Agreement NO: Dcx: Cost Structures Amount obligated: Amendment No. 1 (FT 1994) 1448-00002-94- 20181-4- 21430-1124-0000 Ss0,000.00 I . Pow rao�a A. This amendment to the existing cooperative agreement of , 1994, between the V.S. Fish and Wildlife Service (Service) and the City of Baytown (City) is entered into to lacilitats enhancement and management of the area that was environmentally degraded by subsidence and is currently administered by the City. B. : During the part 30 years, land -surface subsidence around Crystal and Surnett nays resulted in inundation of the 400+ acres during higher than normal tides. A hurricane in 1983 caused extensive.damage to all the houses and other buildings in the area, which ultimately resulted in a government sponsored buyout of all the willing property owners. Remnant structures, concrete slabs, and household debris are presently scattered throughout the area. Lw ss that subsided are now wetlands or covered with thick shrubs. Sams high ridges still support large oak trees which are used by neotropical migrants for shelter, feeding and nesting sites. The shoreline of the former subdivision has receded partly due to wave action caused by ship traffic in the Houston Ship Channel. Salt water from the bay intrudes into the low wetlands causing vegetation dieoff and habitat changes. C. Go s The goals of this project are toe 1. enhance the freshwater wetlands (formerly lawns) by removing concrete or asphalt driveways so they can be interconnected and improve vegetative growth on the sloped edges= 2. stabilize the shoreline on San Jacinto Point from erosional wave action and provide habitat for estuarine aquatic organimw; 3. enhance the natural beauty of San Jacinto Point by debris removal and providing access trails, rest facilities, and wildlife viewing areas for all visitors. __. 022 of Work A. The Service Will provide not in excess of $501000 to the City for this project. B. The City will provide the nQcessary facilities, equipment, supplies, general supervision and labor for this project. The period of this amendment is from the effective date being the data of the last signature on this document to the completion date of June 30, 1995. Page 1 of 3 Cooperative Agreement No: 1448 -00002 -94 - Amendment #1 (FY 1994) 0 Iv. The total cost of this amendment shall not exeeed $50,000. Reimbursement will be made to the city as frequently as monthly upon submission of proper invoices. Progress reports will be provided at the and of each fiscal year. Funds not expended in FY 1994 will be carried over to LrY 1995. V.S. Fish and Wildlife Service: Chief, Branch of Contaminants � 17629 81 camino Real, suite #211 Houston, Texas 77058-3051 Phones (713) 286-8282 City of Baytown: Bobby Rountree, City Manager (and/or his successors) 2401 Market Street P.O. Box 424 Baytown, Texas 77522-0424 Phones (713) 420-6500 IM wlTNESS TS$REOF, the parties have executed this Cooperative agreement on this day, month, year below their respective signatures thereof: V.s. Fish and wildlife Service Region 2, Albuquerque, NX Emma Bickley; Chief, contracting & General Services Date: • city of Baytown Bobby Rountree, city Xanager Date: Page 2 of 3 • Cooperative Agreement No: 1448 -00002 -24 - Amendment ill (FY 1994) EiTIjMM PROJECT BUDGET for Amendment No. 1 (FY 1994) of the O.S. Fish and Wildlife Service cooperative Agreement with The city of Baytown ,fin San Jaointo Point Improvements A. construction 1. Removal and laadfiliing of household debris and two $12,000.00 houses. Z. Breakup of 15 concrete slabs and removal to the 15,000.00 shoreline. 3. Removal of six driveways and placing material on an 3.000.00 upland site. 4. sloping of surface for wetland creation. 61000.00 S. Restoring wave barrier at San Jacinto Point and placing 12,000.00 fill material to create one acre of spartina marsh. 6. Miscellaneous signs and traffic barriers. _ 22 ,000.00 O.S. Fish and Wildlife Service Costs' S50,000.00 • Page 3 of 3 ATTACHMENT IL U.S. FISH AND WILDLIFE SERVICE GENERAL PROVISIONS FOR GRANTS AND COOPERATIVE AGREEMENTS 1. Definitions 2. Allowable Costs 3. Payment Requirements 4. Bonding and Insurance 5. Cash Depositories 6. Retention and Custodial Requirements for Records 7. Program Income 8. Cost Sharing and Matching 9. Standards for Financial Management Systems 10. Financial Reporting Requirements 11. Monitoring and Reporting Program Performance 12. Revision of Financial Plans 13. Closeout Procedures 14. Suspension and Termination Procedures 15. Property Management Standards 16. Procurement Standards 17A. Audit Requirements - [Educational Institutions, Hospitals and Other Non -Profit Organizations) 17B. Audit Requirements - [State and Local Governments] 17C. Audit Requirements - [Commercial Organizations) 18. Standard Patent Rights 19. Data Collection 20. Rights in Technical Data and Computer Software 21. 'Restrictions on Printing 22. Other Administrative.Provisions and Assurances 23. Order of Precedence 24. Officials not to Benefit 25. Covenant Against Contingent Fees 26. Limitation on Payments to Influence Certain Federal Transactions Revised 4/93 0 GENERAL PROVISIONS • 1. DEFINITIONS Throughout the assistance agreement, the following terms, in so far as they - are used, shall have the meanings set forth below: a.' The term "Head of the Agency" or "Secretary" means the Secretary, or any Assistant Secretary of the United States Department of the Interior; and the term "his duly authorized representative" means any person or persons or Board authorized to act for the head of the Agency or the Secretary. b. The term "Department" means the United States Department of the Interior (USDI). c. The terms "Agency" or "Service" means the U.S. Fish and Wildlife Service (FWS). d. The term "Signing Official" or "SO" means any person authorized to execute the agreement on behalf of the Service and includes, except as otherwise provided in the agreement, the authorized representative of the Signing Official acting within the limits of his authority. e. The term "FWS Project Officer" means the SO's authorized representative responsible for the technical administration of the agreement, the evaluation of performance under the agreement, the acceptance of technical reports, and for such other specific responsibilities as may be stipulated in various provisions of the agreement. f. The term "Recipient" includes the following: (1) States, local governments or Federally recognized Indian tribal governments as defined in OMB Circular A-102. (2) Nonprofit organizations including public and private institutions of higher education, public and private hospitals and other quasi public and private nonprofit organizations as further described in OMB Circular A-110. (3) Commercial organizations are organizations which are not otherwise included among those specified in OMB Circulars A-102 or A-110; international organizations; or businesses organized for profit. g. The term "Grant Agreement" means the legal instrument between the Service and the recipient which provides for the transfer of Federal resources to the recipient to accomplish a public purpose activity for which no substantial involvement between the parties is anticipated during performance. h. The term "Cooperative Agreement" means the legal instrument between the Service and the recipient which provides for the transfer of Federal resources to the recipient to accomplish a public purpose activity for which substantial involvement between the parties is anticipated during performance. i. The acronym "OMB" means Office of Management and Budget. j. The acronym "FAR" means Federal Acquisition Regulations. F. B • 2. ALLOWABLE COSTS - [This clause is applicable to all assistance agreements involving the transfer of Federal funds) a. Payments up to the amount specified in the assistance agreement shall. be made only for costs determined by the SO to be allowable, allocable and reasonable in conducting the work under the agreement in accordance with its terms and with the following cost principles: (1) OMS Circular A-21 shall be applicable to educational institutions. (2) OMB Circular A-87 shall be applicable state and local governments and federally recognized Indian governments. (3) On Circular A-122 shall be applicable to other. non-profit organizations. (4) Federal Acquisition Regulations (FAR) 31.2 shall be applicable to all other recipients. l from the SO are found b. ExpendituresFederal costsring prior written principles or FWS policy pn and are summarized below: the applicable (l) purchase or rental of items of tem of office equipmentose ,�u egardlessent lof a unit cost of $300 or more; and cost, if not itemized in the approved budget. (2) Purchase or rental of any item of special purpose equipment having a unit cost of $1,000 or more if not itemized in the approved budget. (3) Insurance on Federal government-owned equipment unless required or approved. and maintained under the terms of the agreement. (4) Personnel movement of a special or mass nature not itemized in the approved budget. (5) Foreign travel (each separate trip). (6) Domestic travel when not included in the approved budget and when the cumulative travel expenditures will exceed the approved travel budget by $500 or 25 percent, whichever is greater. (7) Expenditures for consultant services not itemized in the approved budget. (8) Subcontracts not itemized in the approved budget. (9) Expenditures for the purchase or lease of any interest in real property. C. The FWS may provide in advance for scheduled apparent allowable costs to be incurred or will reimburse apparent allowable costs accrued by the • recipient up to the maximum amount of the Federal assistance payable for the periodno performance. nstitutowavfinalsuch determination by FWrovision of S fost thepursuant to allowabilitythe of clause shall such cost and shall not constitute a waiver of any violation of the terms of the •assistance agreement committed by the recipient. FWS shall make a final determination as to allowability only after final audit is completed, if required, or at the time of final payment. 3. PAYMENT REQUIREMENTS - (OMB Circulars A -102/A-110) - [This clause is applicable to all assistance agreements involving the transfer of Federal funds] a. Payments can be made to recipients through a letter -of -credit, an advance by Treasury check, or a reimbursement by Treasury check. The following definitions apply for the purpose of this clause: (1) tetter -of -Credit - A letter -of -credit is an instrument certified by an authorized official of a Federal sponsoring agency that authorizes a recipient to draw funds when needed from the Treasury, through a Federal Reserve bank and the recipient's commercial bank, in accordance with the provisions of Treasury Circular No. 1075, as revised. (2) Advance by Treasury check - An advance by Treasury check is a payment made by a Treasury check to a recipient upon its request before outlays are made by the recipient, or through the use of predetermined payment schedules. (3) Reimbursement by Treasury check - A reimbursement by Treasury check is a Treasury check paid to a recipient upon request for reimbursement from the recipient. b. Except for construction grants and other construction agreements for which optional payment methods are authorized, as described in paragraph d, the letter -of -credit method shall be used by FWS if all of the following conditions exist: • (1) If. there is or will be a continuing relationship between a recipient and FWS for at least- a 12 -month period and the total amount of advance payments expected to be received within that period from FWS is $120,000 or more as prescribed by Treasury Circular No. 1075. (2) If the recipient has established or demonstrated to FWS the willingness and ability to maintain procedures that will minimize the time elapsing between the transfer of funds and their disbursement by the recipient. (3) If- the recipient's financial management system meets the prescribed standards for fund control and accountability. c. The method of advancing funds by Treasury check shall be used- in accordance with the provisions of Treasury Circular No. 1075, when the recipient - meets all of the requirements specified in paragraph b. above, except those in subparagraph b.l. d. The reimbursement by Treasury check method shall be the preferred method if the recipient does not meet the requirements specified in subparagraphs b.2. and b.3. above. FWS may require that this method be used on any construction project, or if the major portion of the program is accomplished through private market financing or Federal loans, and the Federal assistance • constitutes a minor portion of the program. When the reimbursement method is used, FWS shall make payment within 30 days after receipt of the billing, unless 4 • the billing is improper. With respect to subcontractors, recipients shall not be reimbursed for amounts that are to be withheld to assure satisfactory completion of the work. These' amounts will be paid when recipients make final payment including amounts withheld. 0 e. When the letter -of -credit procedure is used, the recipient shall be. issued nne consolidated letter -of -credit whenever possible to cover anticipated cash needs for all grants and other agreements awarded by FWS. Likewise, to the extent possible, when the advance by Treasury check method is used, advances should be consolidated (pooled) for all grants and other agreements made by FWS. f. FWS shall not withhold payments for proper charges made by recipients at any time during the project or program period unless (a) a recipient has failed to comply with the program objectives, award conditions, or Federal reporting requirements; or (b) the recipient is indebted to the United States, and collection of the indebtedness will not impair accomplishment of the objectives of a project or program sponsored by the United States. Under such conditions, FWS may, upon reasonable notice, inform the recipient that payments will not be made for obligations incurred after a specified date until the conditions are corrected or the indebtedness to the Federal Government is liquidated. 4. BONDING AND INSURANCE - (OMB Circulars A -102/A-110) - [This clause is applicable to all assistance agreements involving the performance of construction or facility improvements] a. Except as otherwise required by law, a grant or other agreement that requires the contracting (or subcontracting) for construction or facility improvements shall provide for the recipient to follow its own requirements relating to. bid guarantees, performance bonds, and payment bonds unless the construction contract or subcontract exceeds $100,000. For those contracts or subcontracts exceeding $100,000, FWS may accept the bonding policy and requirements of the grantee provided FWS has made a determination that the Government's interest is adequately protected. If such a determination has not been made, the minimum requirements shall be as follows: I. A bid guarantee tr m ea n Mager a ulvaler1 w LAIC 1'-=- � �..� bid orice - The "bid guarantee" shall 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 his bid, execute such contractual documents as may be required within the time specified. 2, A performance bond on the part of the contractor for 100 percent of the contract ori - A "performance bond" is one executed in connection with a. contract to secure fulfillment of all the contractor's obligations under such contract. 3. A payment -bond gn tne Dan ot the contraLLur rur juu usuaLLL.-we 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. 5 b. Where the Federal Government guarantees or insures the repayment of •money borrowed by the recipient, FWS, at its discretion, may require adequate bonding and insurance if the bonding and insurance requirements of the recipient are not deemed adequate to protect the interest of the Federal Government. c. FWS may require adequate fidelity bond coverage where the recipient has no coverage and the bond is needed to protect the Government's interest. d. Where bonds are required in the situations described above, the bonds shall be obtained from companies holding certificates of authority as acceptable sureties (31 CFR 223). 5. CASH DEPOSITORIES - (OMB Circulars A -102/A-110) - [This clause is applicable to all assistance agreements involving the advancement of Federal funds] - a. If funds are to be advanced under a letter -of -credit agreement with the recipient which provides that draw downs will be made when the recipient's checks are presented to the bank for payment, the recipient shall establish a separate bank account as the depository for such.funds. b. Any moneys advanced to a recipient which are subject to the control or regulation of the United States or any of its officers, agents or employees (public moneys as defined in Treasury Circular No. 176, as amended) must be deposited in a bank with Federal Deposit Insurance Corporation (FDIC) insurance coverage and the balance exceeding the FDIC coverage must be collaterally secured. c. Consistent with the national goal of expanding the opportunities for minority business enterprises, recipients and subrecipients shall be encouraged to use minority banks (a bank which is owned at least 50 percent by minority group members. 6. RETENTION AND CUSTODIAL 'REQUIREMENTS FOR RECORDS - (OMB Circulars A -102/A- 110) - [This clause is applicable to all assistance agreements with primary recipients and to grants or other agreements awarded by the primary recipients to subrecipients performing substantive work]. a. Financial records, supporting documents, statistical records, and all other records pertinent to an agreement shall be retained for a period. of 3 years,'with the following qualifications: 1. If any litigation, claim or audit is started before the expiration of the 3 -year period, the records shall be retained until all litigations, claims, or audit findings involving the records have been resolved. 2. Records for nonexpendable property acquired with Federal funds shall be retained for 3 years after its final disposition. 3. When records are transferred to or maintained by FWS, the 3 -year retention requirement is not applicable to the recipient. b. The retention period starts from the date of the submission of the final expenditure report, or final payment, whichever occurs last. • 0 .c. Recipient organizations gray be authorized by FWS, to substitute microfilm copies in lieu of original records. d. FWS shall request transfer of certain records to its custody from recipient organizations when it determines that the records possess long-term retention value. However, in order to avoid duplicate record-keeping, FWS -may make arrangements with recipient organizations to retain any records that are continuously needed for joint use. e. The Director of FWS and trepresentatives,troller eneral shallohavee United access to any or any of their duly authorized pertinent books, documents, papers, and records of the recipient organization and their subrecipients to make audits, examinations, excerpts and transcripts. 7. PROGRAM INCOME - (DMB Circulars A -102/A-110) - [(This clause is applicable if program income, as defined below, is anticipated from projects financed in whole or in part with Federal funds.)] a. Recipient organizations shall account for program income resulting from projects financed in whole or in part with Federal funds. Program income represents gross income earned by the recipient from the federally supported activities. Such earnings exclude interest earned on advances and may include, but will not be limited to, -A ncome from service fees, sale of commodities, usage or rental fees, and royalties on patents and copyrights. b. Interest earned on advances of Federal funds shall be remitted to FWS except for interest earned on advances to States or instrumentalities of a State as provided by the Intergovernmental Cooperation Act of 1968 (Public Law 90- 577) and tribal organizations pursuant to sections 102, 103, or 104 of the Indian Self Determination Act (Public law 93-638). c. Proceeds from the sale of real and personal property either provided by the Federal Government or purchased in whole or in part with Federal funds, shall be handled in accordance with the clause entitled ProDerty Management Standards., d. Unless the agreement provides otherwise, recipients shall have no obligation to the Federal Government with respect to royalties received as a result of copyrights or patents produced under the grant or other agreement. e. All other program income earned during the project period shall be retained by the recipient and, in accordance with the grant or other agreement, shall be: (1) Added to funds committed to the project by FWS and recipient organization and be used to further eligible program objectives; (2) Used to finance the non -Federal share of the project when approved by FWS; or (3) Deducted from the total project costs in determining the net costs on which the Federal share of costs will be based. f. State, local. or Federally recognized Indian tribal governments shall • record the receipt and expenditure of revenues (such as taxes, special assessments, levies, fines, etc.) as a part of'project transactions when such revenues are specifically earmarked -for a project in accordance with assistance agreements. 8. COST SHARING AND MATCHING - (OMB Circulars A -102/A-110) - [This clause is applicable to all assistance agreements if the recipient, subrecipient or third parties are required to make cash or in-kind contributions to satisfy cost sharing and matching requirements of the FWS]. a. The following definitions apply for the purpose of this clause: (1) Pro-iect costs - Project costs are all allowable costs (as set forth in the applicable Federal cost principles) incurred by a recipient and the value of the in-kind contributions made .by the recipient or third parties in accomplishing the objectives of the grant or other agreement during the project or program period. (2) Cost sharing and matching - In general, cost sharing and matching represent -that portion of project or program costs not borne by the Federal Government. Any minimum percentage for matching share provided by -program legislation and matching share requirements are included in the assistance agreement. (3) Cash contributions - Cash contributions represent the recipient's cash outlay, including the outlay of money contributed to the recipient by non - Federal third parties. When authorized by Federal legislation, Federal funds received from other grants or other agreements may be considered as grantees' cash contributions. -(4) In-kind contributions - In-kind contributions represent the value of noncash- contributions provided by the recipient and non -Federal third parties. Only when authorized by Federal legislation may property purchased with Federal funds be considered as the recipient's in-kind contributions. In-kind contributions may be in the form of charges for real property and non -expendable personal property, and the value of goods and services directly benefiting and specifically identifiable to the project or program. b. General guidelines for computing cost sharing or matching are as . follows: (1) Cost sharing or matching may consist of: (a) Charges incurred by the recipient as project costs. (Not all charges require cash outlays by the recipient during the project period examples are depreciation and use charges for buildings and equipment.) (b) Project costs financed with cash contributed or donated to the recipient by other non -Federal public agencies and institutions, and private organizations and individuals, and (c) Project costs represented by services and real and personal property, or use thereof, donated by other non -Federal public agencies and finstitutions, and private organizations and individuals. L ted (2) All contributions, both matching when such contributions pmeetaallaof of the recipient's cost sharing and the following criteria: (a) Are verifiable from the recipient's records; (b) Are not included as contributions for any other Federally - assisted program; Are necessary and reasonable for proper and efficient (c) accomplishment of project objectives; (d) Are types of charges applicable cost principles; (e) Are not paid by the assistance agreement (unless the agreement used for -cost sharing or matching); . the (f) Are provided for in Federal agency; and (g) Conform to other provisions of this clause. that would be allowable under the Federal Government under another is authorized by Federal law to be approved budget when required by the C. Values for recipient -kind contributions will be established in accordance with the applica cost principles. d. Specific procedures for the recipients in establishing the value of in- kind contributions from non -Federal third parties are set forth below. (1) Valuation of volunteer services - Volunteer services may be furnished by professional andnica ices omayl �beocountedt as andasher sharing skilled or and unskilled labor. Volunteer matching if the service is an integral and necessary part of an approved program. (a) Rates for volunteer cervi es - Rates for volunteers should be consistent with those Phthe required similar killsaranot fund in b recipient's tin therecipient 1n those instances in whit quired organization, rates should becien�compewith those tes far the kind of servicesfor similar �involvedthe labor market in which the ret'p P qn (b) Volunteers m 14n an 1 d b services of anjLtemployee,these employer other than the recipient furnishes theexclusive of services shall be valued at the employees regular rate of pay fringe benefits and overhead costs) provided these services are in the same skill for which the employee is normally paid. nalro art - 'Donated, endable equipment, office supplies. Value assessed matching share should be e property at the time of (2) Valuation or oonaLeu CA CIBUMv.- -•- expendable personal property includes such items as exp supplies, laboratory supplies or workshop and classroom ebpersonal eiurin the o reasonabland shouldnot excedthe maket valuef tl the donation.- . (3) Va uati n of donated nonexpendable personal property, buildings and land or use th reof. (a) The method used for charging cost sharing or matching for donated nonexpendable personal property, buildings and land may differ according to the purpose of the grant or other agreement as follows: 9 (i) If the purpose of the grant or other agreement is to • assist the recipient -in the acquisition of equipment, buildings or land, the total value of the donated property may be claimed as cost sharing or matching. n U (ii) If the purpose of the agreement is to support activities that require the use of equipment, buildings or land, depreciation or use charges to charges for equipment and buildings may be made. The full value of equipment or other capital assets and fair rental charges for land may be allowed provided that the FWS has approved the charges. (b) The value of donated property will be determined in accordance with the usual accounting policies of the recipient with the following qualifications: (i) Land and builds - The value of donated land and buildings may not exceed its fair market value at the time of donation to the recipient as established by an independent appraiser (e.g., certified real property appraiser or GSA representatives) and certified by a responsible official of the recipient. (ii) Nonexpendablg personal property - The value of donated nonexpendable personal property shall not exceed the fair market value of equipment and property of the same age and condition at the time of donation. (iii) Use of space - The value of donated space shall not exceed the fair rental value of comparable space as established by an independent appraisal or comparable space and facilities in a privately -owned building in the same locality. ... (iv) Loaned equipment - The value of loaned equipment shall not exceed its fair rental value. e. -The following requirements pertain to the- recipient's supporting records for in-kind contributions from non -Federal third parties: (1) Volunteer services must be documented and, to the extent feasible, supported by the same methods used by the recipient for its employees. (2)- The basis for determining the valuation for personal services, material, equipment, buildings and land must be documented. 9. STANDARDS FOR FINANCIAL MANAGEMENT SYSTEMS (OMB Circulars A -102/A-110). - [This clause is applicable to all assistance agreements involving the transfer_of Federal funds) a. Recipient's financial management systems shall provide for: (1) Accurate, current and complete disclosure of the financial results of each Federally sponsored project or program in accordance with the reporting requirements, set forth in the clause entitled Financial Reporting Reauirements. 10 .(2) Records .that identify adequately .the source and application of funds for Federally sponsored activities. These records shall contain information pertaining ets, out ays, Federal and Ards, authorizations, obligations, unobligated balances, as .(3) Effective control over and accountability for all funds, property and other assets. Recipientsused solely for authorized purposes uard all such assets and shall assure that they are (4) Comparison of actual outlays with budget amounts for each grant or other agreement. (5) Procedures to minimize the time elapsing between the transfer of funds from the U.S. Treasury and the disbursement by the recipient, whenever funds are advanced by FWS. When advances are made by a letter -of -credit method, the recipient shall make drawdowns as close as possible to the time of making disbursements. Advances made by primary recipient organizations (those which receive payments standards ofytiming Fand amount as to apply toients hall advancesorm by FWSbtoaprimary to the same standards recipient organizations. (6) Procedures for determining the reasonableness, allowability and allocability of costs in termsdofctheith grant orrotherons of the agreement,applicable Federal costs principles and th (7) Accounting records that are supported by source documentation: (8) A systematic method to assure timely and appropriate resolution of audit findings and recommendations. b. Primary recipients shall require subrecipients to adopt the standards aph a. above except for the requirement in paragraph a.(1) regarding in paragr reporting forms and frequencies prescribed in the clause entitled Financial_ Reporting Re uirements. 10. FINANCIAL REPO TING REQUIREMENT - (OMB Circulars A -102/A-110) - [This clause is applicable to all assistance agreements involving the transfer of Federal funds) a. The following definitions apply for purposes of this clause: (1) Accrued expenditures - Accrued expenditures are the charges incurred by the recipient during a given period requiring the provision of funds for: (a) goods and other tangible property received; (b) services performed by employees, contractors, subrecipients, and other payees; and (c) other amounts. becoming owed under programs for which no current services or performance is required. (2) AccrgjCjnume - Accrued income is the sum of (a) earnings suring a given period from (i) services performed by the recipient; and (ii) goods other tangible property delivered to purchasers; and (b) amounts becoming owed to the recipient for which no current. services or performance is required by the • recipient. 11 • (3) Federal funds authorized - Federal funds authorized are the total amount of Federal funds obligated by FWS for use by the recipient. This amount may include any authorized carryover of unobligated funds from prior fiscal years when permitted by the law or FWS regulation. - (4) In-kind contributions - In-kind contributions are defined in the clause entitled Cost Sharing and Matchin . (5) Obligations - Obligations are the amounts of orders placed, contracts and grants awarded, services received, and similar transactions during a given period that will require payment by the recipient during the same or a future period. (6) Outlays - Outlays or expenditures represent charges made to the project or program. They are to be reported on an accrual basis. For reports prepared on an accrual basis, outlays are the sum of actual cash disbursements for direct charges for goods and services, the amount of indirect expense incurred, the value of in-kind contributions applied, and the net increase (or decrease) in the amounts owed by the recipient for goods and other property received for services performed by employees, contractors, subrecipients and other payees and other amounts becoming owed under programs for which no current services or performance are required. (7) Program income - Program income is defined in the clause entitled Program Income. It is to be reported on an accrual basis. (8) Unobligated balance - The unobligated balance is the portion of the funds authorized by FWS that -has not been obligated by the recipient and is determined by deducting the cumulative obligations from the cumulative funds authorized. (9) Unliquidated obligations - For reports prepared on an accrued expenditure basis, unliquidated obligations represent the amount of obligations incurred by, the recipient for which an outlay has not been recorded. b. The recipient shall utilize the following forms for reporting financial information: (1) Financial Status -Report (SF- 9 - For all non -construction projects, the recipient shall submit an original and two copies of this report 30 days after the completion of each quarter of the project with the exception that the final Financial Status Report shall be due 90 days after project completion. Extensions to reporting due dates may be granted upon request. The report shall be on an accrual basis; however, if the recipient's accounting records are not normally kept on the accrual basis, the recipient shall not be required to convertits accounting system, but shall develop such information through best estimates based on an analysis of the documentation on hand. (2) Federal Transactions Report (SF -2721 - In the event funds are advanced to recipients, the recipient shall submit an original and two copies of a Federal Cash Transaction Report 15 days following the end of each quarter. • c. The recipient shall utilize the following forms for requesting advances and reimbursements: 12 non - (1) Reauest for Advance or R imbursement SF-27 ipiell shall construction projects when a letter of credit is not used, the rec submit an original and two copies of this form on a monthly basis. (2) Oull a Ken.orT ana KeU,ucZ 16 1 vtt Programs (SE-7711 theor all recipientsshallion submit answhen a originallett;r 6f and -two copies ofsthis been authorize P form on a monthly basis. d. When the FWS needs additional information in usingithese forms or more frequent reports, the following shall be -observed: (1) When additional information is needed to comply with legislative requirements, FWS shall issue instructions to require recipients to submit such information under the "Remarks" section of the reports. (2) When necessary to meet specific program needs, FWS shall submit the proposed reporting requirements to the Financial Management Branch, Budget Review Division, Office of Management and Budget for approval prior to submission of the reports for clearance under the provisions of 5 LFR Part 1320. (3) When FWS has determined that a recipient's accounting system does not meet the requirements contained in the clause entitled Standards for Financial Manaaem nt Systems, additional pertinent information to further monitor grants and other agreements may be obtained upon written notice to the recipient until such time as the system is brought up to standard. e. FWS shall reserve the option of shading out any line item on any report that is unnecessary for decision-making purposes. ient f. FWS shall oat or computeridentical printouts in lieuinformation prescribed formats. in machine useable P g. FWS may provide computer outputs to recipients when it will expedite or contribute to the accuracy of reporting. 11. MONITORING AND REPORTING PROGRAM PERFORMANCE (OMB Circulars A -102/A-110) - (This clause is applicable to all assistance agreements) a. Recipients shall monitor the performance under grants and other agreements and, where appropriate, ensure that time schedules are being met, projected work units by time periods are being accomplished, and other performance goals or activire ty of Bved. This review each agreement as setall forthein a de for each program, function, approved , application or award document. - b. Recipientsisubmit performance rn(technical , each agreementhatbriefly presents he followingiformtion for each program, function, or activity involved: - (1) A comparison of actual accomplishments with the goals established for the period, the findings of the investigator, or both. If the output of programs or projects can be readily quantified, such quantitative data should be related to cost data for computation of unit costs. 13 • (2) Reasons -why established goals were not met. (3) Other pertinent information including, when appropriate, analysis and explanation of cost overruns or high unit costs. C. Recipients shall submit the performance or technical reports quarterly with the Financial Status Report (or Request for Advance or Reimbursement if used in lieu of the Financial Status Report); the final technical or performance report shall be submitted 90 days after completion of the project. d. Between the required performance reporting dates, events may occur that have significant impact upon the project or program. In.such instances, the recipient shall inform the SO as soon as the following types of conditions become known. (1) Problems, delays, or adverse conditions that will materially affect the ability to attain program objectives, prevent the meeting of time schedules and goals, or preclude the attainment of project work units by established time periods. This disclosure shall be accompanied by a statement of the action taken, or contemplated, and any Federal assistance needed to resolve the situation. (2) Favorable developments or events that enable time schedules to be met sooner than anticipated or more work units to be produced than originally projected. e: If any performance review conducted by the recipient discloses the need for change in the budget estimates, the recipient shall submit a request for budget revision. 12. REVISION OF FINANCIAL PLANS - (OMB Circulars A -102/A-110) [This clause is applicable to all assistance agreements involving the transfer of Federal funds]. a. The financial plan is the financial expression of the project or program as approved during the application and/or award process. It may include both the Federal and non -Federal share. It should be related to performance for program evaluation purposes whenever appropriate and required. b. For nonconstruction awards, recipients shall immediately request approvals from Federal sponsoring agencies when there is reason to believe that a revision will be necessary for the following reasons: (1) Changes in the scope or the objective of the project or program: (2) The need for additional Federal funding. (3) The transfer of amounts budgeted for indirect costs to absorb increases in direct costs or vice versa. (4) The expenditures require approval in accordance with. the applicable provisions of OMB Circular A -2P, "Cost Principles for Educational Institutions; "OMB Circular A-87, "Cost Principles for State and Local Governments;" OMB Circular A-122, "Cost Principles for Non Profit Organizations;" or Federal Acquisition Regulations (FAR) 31.2, "Cost Principles... with Commercial Organizations." 14 0 llotted (5) Recipients trainees)plan t000thertransfer categoriesaof expensefor training allowances (direct payments to c. None of the substantive programmatic work under a grant or other agreement may be subcontracted or'transferred chaseof without suppliesrior material,�al of FWS. equipment, This provision does not apply to thep or general support services. d. The recipient may not transfer funds ng direct cumulativecagories for awards in which the Federal share exceeds 5100,000 such transfers exceeds or is expected to -exceed 5 percent of the total budget as last approved. The same criteria shall apply to the cumulative amount of transfer among programs, functions, and activities when budgeted separately for an award, except that or artsshall thereof,permit no to be used for fer that purposes then than thoscause a e Federal appropriation,p intended. e. For construction awards, recipients shall request prior approvals promptly from FWS for budget revisions wherever: (1) The revision results from changes in the scope or the objective of the project or program, and (2) The revision increases the budget amounts of Federal funds needed to complete the project. f. When a grant or other agreement provides support for both construction and nonconstruction work, the fersibetweenshall the two typuest es roval of of workfrom supportedior to making any fund or budget trans For both construction and nonconstruction awards, the recipients shall notify the FWS promptly whenever the amount of Federal authorized funds is expected to exceed the needs of the recipient by more than $5,000 or 5 percent of the Federal' award, whichever is greater. h. When requesting approval for budget revisions, or recipients shall use detailing either the budget forms that were used in the app licationthe revisions. J. Within 30 calendar days from the date of receipt of the request for budget revisions, FWS shall review the request and notify the recipient whether the budget revisions have been approved. if the revision is still' under consideration at to whend of 30 n the recipie tamayaexQect the decisioFWS shall infon the recipient in writing of the da j. FWS shall not be obligated to reimburse the recipient for outlayt (costs) in excess of the Federally funded amount of the assistance agreement unless and until the SO executes -a modification which increases the Federally funded amount. The Federallyhanort the budgeted Feder funded equal amount ithe ed shareder the of the agreement which may be less agreement. 15 U 13. CLOSEOUT PROCEDURES - (OMB Circulars A -.102/A-110) - [This clause is applicable to all assistance agreements] a. The following definitions shall apply for the purpose of this clause. (1) Closeout - The closeout of a grant or other agreement is the process by which FWS determines that all applicable administrative actions and all required work of the agreement have been completed by the recipient and the FWS. (2) Date of completion - The date of completion is the date on which all work under the grant or other agreement is completed or the date on the award document, or any supplement or amendment thereto, on which FWS sponsorship ends. (3) Disallowed costs - Disallowed costs are those charges to a grant or other agreement that the FWS or its representative determines to be unallowable, in accordance with the applicable Federal cost principles or other conditions contained in the agreements. b. The parties shall close out assistance agreements in accordance with the following procedures: (1) Upon.request, FWS shall make prompt payments to a recipient for allowable reimbursable costs under the grant or other agreement being closed out. (2) -The recipient shall immediately refund any balance of unobligated (unencumbered) cash that FWS advanced or paid and that is not authorized to be retained by the recipient. (3) The FWS shall obtain from the recipient within 90 calendar days after the date of completion of the agreement all financial, performance, and other reports required as the condition of the agreement. The agency may grant extensions when requested by the recipient. -(4) When authorized by the grant or other agreement, FWS shall make a settlement for any upward or downward adjustments to the Federal share of costs after these reports are received. (5). The recipient shall account for any property acquired with Federal funds, or received from the Government in accordance with the provisions of the clause entitled Ptoperty PropertyManagement Standards. (6) In the event a final audit has not been performed prior to the closeout of the grant or other agreement, FWS shall retain the right to recover an appropriate amount after fully considering the recommendations on disallowed costs resulting from the final audit. (7) The recipient shall complete and submit a final report in compliance with the clause entitled 51andard Patent Rights within 90 calendar days after the date of completion. The form used shall be Department of the Interior (DI) Form 1216, entitled "Summary Report of Inventions and Subcontracts." 16 14. 'SUSPENSION AND TERMINATION assistance agreements) en B ]Circul ars ' A -102/A-110) _ - [This • clause is applicable to a. The following definitions shall apply for the purpose -of this clause. (1) T rmination - The termination of a grant or other agreement means the cancellation of Federalof campletiann whole or in part under an agreement at any time prior to the date (2) 5usRension - The suspension of a grant or other agreement is an action by FWS that temporarily suspends Federal sponsorship, pending corrective action by the recipient or pending a decision to terminate the grant or other agreement by FWS. b. If the recipient fails to comply with the terms of the grant or other agreement, the SO may, on reasonable notice to the recipient, suspend the grant or other agreement, and withhold further payments and prohibit the recipient from incurring additional obligations of funds, pending corrective action by the recipient; or decide to terminate in accordance with paragraph c. 'All necessary and proper costs that thelrecipient l c dent could of r they meet 'avoid provisions period the of suspension shall be provided applicable cost principles. C. This grant or other agreement may be terminated as follows: (1) Termination for cause - The SO may terminate any grant or other er agreement in whole or G patany time has beforiledet h comply ofe date completion,with thetcconditions vof it is determined thatrecipient the agreement. The S0, shall promptly no the recipient in writing of the the efectve determination and the sos ifor the ermi obligations after the ether with ffectivefdatelof date. The recipient shalln the termination notice and shall cancel as many outstanding obligations as possible. Payments made to. recipients be in accordance wilS under t the legal rights grantsor reveries bther and agreements terminated for cause liabilities of the parties.- (2) arties:(2) Termination for convenient - Grants and other agreements may be terminated in whole or in r when produce beneficoth ial results rties acommensu ate with ree that the ttheafurther of the project would not gradthe expenditure of funds. The two parties shall agree the ncase termination partial conditions, including the effective date and, terminations, the portion to be terminated. In the event that both parties cannot agree, the SO reserves the right to unilaterally terminate the assistance agreement for thee termninatedsportioniafter theheffectiivent shall not date, and shallcur new cancel obligations for tThe allow ullredit to as many outstanding obligationsshare of oss�theble�noncance�lablel obligations,cproperly the recipient for the Federal incurred by the recipient prior to termination. d. The parties shall promptly settle the terminated agreement in accordance with the applicable requities shall execute a modificationclause forth Procedures. In addition, the parties the terms and conditions of the final settlement as a result of the termination of the agreement. 17 15. PROPERTY MANAGEMENT STANDARDS (OMB Circulars A -102/A-110) - [This clause is • applicable to all assistance agreements involving government -furnished property or recipient -acquired property for which the costs will be reimbursed by the FWS] a. The recipient and approved subrecipients shall observe the standards governing the management of property prescribed by this clause. The recipient may use its own property management standards and procedures provided it observes the provisions of this clause. b. The following definitions apply for the purpose of this clause: (1) Real Dro.pertY - Real property means land, including land improvements, structures and appurtenances thereto, but excluding movable machinery and equipment. (2) Personal property - Personal property of any kind except real property. It may be tangible - -having physical existence, or intangible - -having no physical existence, such as patents, inventions and copyrights. (3) NonexRendable personal. proverix - Nonexpendable personal property means tangible personal property having a useful life of more than 1 year and an acquisition cost of $300 or more per unit except that recipients subject to Cost Accounting Standards Board regulations may use the CASB standard of $500 per unit and useful life of 2 years. A recipient may use its own definition of nonexpendable personal property provided that the definition would at least include all tangible personal property as defined above. (4) Expendable_personal property - Expendable personal property refers to all tangible personal property other than nonexpendable property. (5) Excess DrORerty - Excess property means property under the control of an Federal agency that, as determined by the head thereof, is no longer required for its needs or the.discharge of its responsibilities. (b) Acquisition cost of purchased Donexpendabie Dersonai properxv - Acquisition cost of an item of purchased nonexpendable personal property means the net invoice unit price of the property including the cost of modifications, attachments, accessories, or auxiliary apparatus necessary to make the property useable for the purpose for which it was acquired. Other charges such as the cost of installation, transportation, taxes, duty or protective in -transit insurance, shall be included or excluded from the unit acquisition cost in accordance with the recipient's regular accounting practices. (7) Exempt property - Exempt property means tangible personal property acquired in whole or in part with Federal funds, and title to which is'vested in the recipient without further obligation to the Federal Government except as - provided in subparagraph f.(1) below. Such unconditional vesting of title will be pursuant to any Federal legislation that provides FWS with adequate authority. C. If real property is acquired as a requirement of this grant or other agreement, the following shall apply: (1) Title to real property shall vest in the recipient subject to the condition that the recipient shall use the real. property for the authorized purpose of the project, as long is it is needed. 18 (2) The recipient shall obtain FWS approval for the use of real property in other projects when the recipient determines that the property is no longer needed for the purpose of the original project. Use in other projects shall be -limited to those under other Federally sponsored projects (i.e., g or other agreements) or programs that have purposes consistent with those b authorized for support y F (3) When the real property is no longer needed instructions provided FWSorits and (2) above, the recipient shall request disposition successor Federal sponsoring agency. d. Federally owned nonex4en able personal oro�erty - Title to Federally - owned property remains vested in the Federal government. Recipients shall submit annually an inventory listing of Federally -owned property in their custody to FNS. Upon completion of the agreement or -when the property is no longer needed, the recip'.ont shall report the property to FWS for further agency utilization. e;xem ro rt - When statutory authority exists (e:g., P.L. 95-224) title to nonexpendable personal property acquired with project funds, shall be vested irn the recipient upon acquisition unless it is determined that to do so is not in furtherance of the objectives of the FWS. When title is vested- in the recipient, the recipient shall have no other obligation or accountability to the Federal government for its use or disposition except as provided in f.(1) below. f. Other nonexoendable_oroaertY - When other nonexpendable shall inoe personal property is acquired by a recipient with project funds, be taken by the Federal government but shall vest in the recipient subject to the following conditions: (1) gight to transfer title - For items of nonexFWS reserves tendable hersonal property having a unit acquisition cost of $1,000 or more, to transfer the title to the Federal government or to a third party. (a) The recipient shall use the property in the project or program for which it was acquired as long as needed, whether or not the project or program continues to be supported by Federal funds. When no longer needed for se the property in the original project or program, the recipient shall u Connection with its other Federally sponsored activities, inhefollowin n r ed of priority: (i) activities sponsored by the FWS; and (ii) activities by other Federal agencies. (b) Sh rL_q—st During the time that nonexempt nonexpendable' personal property is held for use on the project or program for which it was acquired, the recipient usell willake it rgot interfere available with the work onher theproects or pro programs if such other ject or program for which the property was originally. acquired. First preference for such other use shall be givento ive other projects or or por rog rams ssponsored sponsoredby other second preference shall be -given P Federal agencies. if the property is owned by the Federal government, use on other activities not Sponsored shall be considered if appropriatovernment shall be permissible if authorized by FWS. User charges 19 (3) Disposition of other nonexpendable property - When the recipient no longer needs the property as provided in f(2) above, the property may be used for other activities in accordance with the following standards: (a) Nonexpendable property with a unit acouisition cost of -less than $1.000 - The recipient. may use the property for other activities without reimbursement to the Federal government or sell the property and retain the proceeds. (b) Nonexpendable personal property with a unit acquisition cost of 51.440 or more - The recipient may retain the property for other uses provided that compensation is made to FWS. The amount of compensation shall be computed by applying the percentage of Federal participation in the cost of the original project or program to the current fair market value of the property. If the recipient has no need for the property and the property has further use value, the recipient shall request disposition instructions from FWS. (4) Property management standards for nonexpendable property - The recipient's property management standards for nonexpendable personal property shall include the following procedural requirements: (a) Property records shall be maintained accurately and shall include: (i) A description of the property. Manufacturer's serial number, model number, Federal stock number, national stock number, or other identification number. (iii) Source of the property, including grant or other agreement number. (iv) Whether title vests in the recipient or the FWS; (v) Acquisition date (or date received, if the property was furnished by the FWS) and cost. (vi) Percentage (at the end of the budget year) of Federal participation in the cost of the project or program for which the property was acquired.. (Not applicable to property furnished by the FWS.) '(vii) Location, use and condition of the property and the date the information was reported. - (viii) Unit acquisition cost. (ix) Ultimate disposition data, including date of disposal and sales price or the method used to determine current fair market value where a recipient compensates the FWS for its share. (b) Property owned by the FWS must be marked to indicate Federal ownership. (c) A physical inventory of property shall be taken and the results reconciled with the property records at least once every 2 years. Any differences between quantities determined by the physical inspection and those shown in the accounting records shall be investigated to determine the causes of the difference. The recipient shall, in connection with the inventory, verify the existence, current utilization, and continued need for the property. 20 (d) A.control system shall be An effect to insure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft of nonexpendable property shall be investigated and fully documented; if the property was owned by the Federal Government, the recipient shall promptly notify FWS. (e) Adequate maintenance procedures shall be implemented to keep the property in good condition. (f) Where the recipient is authorized or required to sell the property, proper sales procedures shall *be established which would provide for competition to the extent practicable and result in the highest possible return. g. Exoendable narsenal property - Title to expendable personal property shall vest in the recipient upon acquisition. If there is a residual inventory of such property exceeding $1,000 in total aggregate fair market value, upon termination or completion of the grant or other agreement, and the property is not needed for any other Federally sponsored project or program, the recipient shall retain the property for use on non Federally sponsored activities, or sell it, but must in either case, compensate FWS for its share. The amount of compensation shall be computed in the same manner as nonexpendable personal property. h. Intangible property. (1) Inventions andpatent-s- - If any program produces patentable items, patent rights, processes, or inventions, in the course of work sponsored by the Federal government, such fact shall be promptly and fully reported to FNS. Unless there is a prior agreement between the recipient and FWS on disposition of such items the FWS shall determine whether protection on the invention or discovery shall be sought. FWS will also determine how the rights in the invention or discovery --including rights under any patent issued thereon --shall be allocated and administered in order to protect the public interest consistent with current Government Patent Policy. (a) Copyrights Except as otherwise provided in the terms and conditions of the agreement, the author or the recipient organization is free to copyright any books, publications, or other copyrightable materials developed in the course of or under a Federal agreement, but FWS shall reserve a royalty -free, nonexclusive and irrevocable right to reproduce, publish, or otherwise use, and to authorize others to use, the work for Government purposes. i. Excess personal proDerty - When title to excess property is vested in recipients, such property shall be accounted for and disposed of in accordance with disposition instructions from FWS. 16. PROCUREMENT S R 5 (OMB Circulars A -102/A-110) - [This clause is applicable to all assistance agreements involving recipient procurement of supplies, equipment, construction or other services and reimbursement with Federal funds] a. The standards contained in this clause do not relieve the recipient of the contractual responsibilities arising under its contracts. The recipient is the responsible authority, without recourse to FWS regarding the settlement and satisfaction of all contractual and administrative issues arising out ort 21 procurements entered into, in support of a grant or other agreement._ These include disputes, claims, protests of award, source evaluation or other matters of a contractual nature. Matters concerning violation of law are to be referred to such local, State or Federal authority as may have property jurisdiction. . b. Recipients may use their own procurement policies and procedures. However, all recipients shall adhere to the standards set forth in this clause and applicable Federal law. c. Code of conduct - The recipient shall maintain a code of standards of conduct that shall govern the 'performance of its officers, employees or agents engaged in the awarding and administration of contracts using Federal funds. No employee, officer or agent shall participate in the selection, award, or administration of a contract in which Federal funds are used, where, to his knowledge, he or his immediate family, partners, or organization in which he or his immediate family or partner has a financial interest or with whom he is negotiating or has any arrangement concerning prospective employment. The recipients' officers, employees or agents shall neither solicit nor accept gratuities, favors or anything of monetary value from contractors or potential contractors. Recipients may set minimum rules where the financial interest is not substantial or the gift is an unsolicited item of nominal intrinsic value. To the extent permitted by State or local law or regulations, such standards of conduct shall provide for penalties, sanctions, or other disciplinary actions for violations of such standards by the grantee's officers, employees, or agents, or by contractors or their agents. d. Procurement transactions - Alli procurement transactions shall be conducted in a manner to provide, to the maximum extent practical, open and free competition. The recipient should be alert to organizational conflicts of interest or noncompetitive practices among contractors that may restrict or eliminate competition or otherwise restrain trade. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, invitations for bids and/or requests for proposals should be excluded from competing Jor such procurements. Awards shall be made to the bidder/offeror whose bid/offer is responsive to the solicitation and is most advantageous -to the recipient, price and other factors considered. Solicitations shall clearly set forth all requirements that the bidder/offers must fulfill in order for his bid/offer to -be evaluated by the recipient. Any and all bids/offers may' be rejected when it is the recipient's interest to do so. e. Procurement procedures- All recipients shall establish procurement procedures that provide for, at a minimum, the following procedural requirements. (1) Proposed procurement actions shall follow a procedure to assure the avoidance of purchasing unnecessary or duplicative items. Consideration - should be given to consolidation or breaking out to obtain a more, economical purchase. Where appropriate, an analysis shall be made of lease versus purchase, alternatives, and any other appropriate analysis to determine which would be the most economical, practical procurement. (2) Solicitations for goods and services shall be based upon a clear and accurate description of the technical requirements for the material, product or service to be procured. Such a description shall not, in competitive procurements, contain features which unduly restrict competition. "Brand name or 22 0 equal" descriptions may be used as a means to define the. performance or other salient requirements. of a procurement, and when so used the specific features of the named brand which must be met by bidders/offerors shall be clearly specified. (3) Positive efforts shall be made by the recipients to utilize small business and minority-owned business sources of supplies and services. Such efforts should allow these sources the maximum feasible opportunity to compete for contracts utilizing Federal funds. (4) The type of procuring instruments' used, e.g., fixed price contracts, cost reimbursable contracts, purchase orders, incentive contracts, shall be determined by the recipient but must be appropriate for the particular procurement and for promoting the best interest of the program involved. The "cost -plus -a -percentage -of -cost" method of contracting shall not be used. (5) Contracts shall be made only with responsible contractors who possess the potential ability to perform successfully under the terms and conditions of a proposed procurement. Consideration shall be given to such matters as cantrac orr access�bilityrtoord otherf necessaast ryrresources, financial and techni-cal resources (6) Review and approval by the SO of the recipient's proposed contracts and related procurement documents is required when the procurement is: 000 and is to be awarded without competition or only (a) expected to exceed $10, " one offer is received, (b) expected to exceed $10,000 and specifies a brand name" product, or (c) the recipient's procurement procedures or operations fail to comply with this clause.* The provisions of this paragraph are waived in the event the recipient's procurement rouremenPoliCem has been certified in accordance -with the Office of Federal Procurement, (7) Some form of pror cost analysis should be made in connection with every procurement action. Price analysis may be 'accomplished in various ice ways, including the comparison of price quotations submitted, market prices and similar indicia, together. with discounts. Cost analysis is the review and evaluation of each element of cost to determine reasonableness, allocability and allowability. Costs or prices based on estimated costs for subcontract under the grant or other agreemented shall nenegotiated pribe allowed ces the extent are consistent twithtapplicable incurred or cost estimates int cost principles. (8) Procurement records and files for purchases in excess of $10,000 shall include the following: (a) Basis for contractor selection; (b) Justification for lack of competition when competitive bids or offers are not obtained; (c) Basis for award cost or price. (g) A system for contract administration specificationsofcontract contractor conformance with terms, conditionsP and to ensure adequate and timely followup of all purchases. 23 •f. and !ah (1)- It is national policy- *to award a fair share of contracts to small, and minority business firms, women -owned businesses and labor surplus area firms. The recipient agrees to use its best efforts to carry out this policy in the award of subcontracts or other agreements to the fullest extent consistent with the efficient performance of this assistance agreement. (2) Dgfinitions (a) The term *small business concern" shall mean a small business as defined pursuant to Section 3 of the Small Business Act and in relevant regulations promulgated pursuant thereto. (b) The term minority firm ("small business concern owned and controlled by socially and economically disadvantaged individuals*) shall mean a small business concern: (i) which is at least 51 percent owned by one or more socially and economically disadvantaged individuals; or in the case of any publicly owned business, at least 51 percent of the stock of which is,owned by one or more socially or economically disadvantaged individuals; and (ii) whose management and daily business operations are controlled by one or more of such individuals. The recipient shall presume that socially and economically disadvantaged individuals include Black Americans, Hispanic Americans, Native Americans, Asian -Pacific Americans, and other minorities, or any other individual found to be disadvantaged , by the Small Business Administration pursuant to Section 8(a) of the Small Business Act.. (c) A "woman -owned business" concern means a business that is at least 51 percent owned by a woman or women that also control and operate it. "Control" in this context means being actively involved in the day-to-day management. "Women" mean all women business owners. (d) The term "labor surplus area concern" means a concern that together with its first-tier subcontractors will perform substantially in labor surplus areas. Performance is substantially in labor surplus areas if the costs incurred under the contract on account of manufacturing, production, or performance of appropriate services in labor surplus areas exceed 50 percent of the contract price. ' (3) Accordingly, recipients shall take steps to assure that such preference firms are utilized when possible as sources of suppliers, equipment, construction and services. Affirmative steps shall include the following: (a) Including qualified small and minority businesses on solicitation lists. • (b) Assuring that small and minority businesses are solicited whenever they are potential sources. 24 small tasks or participation. (c) When economically emt bmaximumismalland minority t requirements business quantities so as to pi (d) schedules which will Where the requirement permits, establishing delivery encourage participation by small and minority business. of the Small Business of the Department of Office of Small and of the Interior, and U.S. fish and Wildlife (e) Using the services and assistance Administration, the Minority Business Development Agency Commerce, the Community Services Administration, the Disadvantaged Business Utilization of the and Development Specialists s of Department Business Utilization the Service. are to be let, requiring the prime contractor to also take s in (a) through (e) above. (4) Recipients shall take similar appropriate affirmative action in support of women's business enterprises. (5) Recipients are encouraged to procure goods and services from labor surplus areas. (6) Where app ortunities for subcontracting or other subagreements exist, the recipient shall submit a czatioon t w thiDepartment0 days fterfithe nend � of or each 1925) Minority Business ane icopy°shall be provided to each of the following fiscal year quarter. addresses: Business Utilization Development Specialist Division of Contracting and General Services U.S. Fish and Wildlife Service Room 821, Riddell Building 18th & C Streets, NW Washington, DC 20240 If any subcontracts the affirmative step (CGS) Director, Office of -Small and Disadvantaged Business Utilization Office of the Secretary U.S. Department of the Interior 18th & C Streets, NW Washington, DC 20240 The requirement for smentation of this Executivei Ordersi2432f the Interior's imple entitled "Minority Business Enterprise Development." The recipient shall include, in addition complete agreement, the following provisions shall also be applied to subcontracts. the U.S. Department of dated July 14, 1983, o ract nrovision� - provisions r_ ions to define a sound and all contracts. These provisions (1) Contracts provisions or conditions • remedies in instances in provide for such remedial to in tual in excess ofS10,0snall ocontractualtorclegal that will allow for administrative, which contractors vio reach contract terms, and actions as may be appropriate. 25 (2) All contracts in excess of $10,000 shall contain -suitable • provisions for termination by the recipient including the manner by which the termination will be effected and the basis for settlement. In addition, such contracts shall describe conditions. under which the contract may be terminated. for default as well as conditions where the contract may be terminated because of circumstances beyond the control of the contractor. (3) In all contracts for construction or facility improvement awarded for more than $100,000, recipients shall observe the bonding requirements provided in the clause entitled Bonding and Insurance. • (4) All contracts awarded by recipients and their contractors or subgrantees having a value of more than $10,000, shall contain a provision requiring compliance with Executive 11246, entitled "Equal Employment Opportunity," as amended by Executive Order 11375, and as supplemented in Department of Labor regulations (41 CFR, Part 60). (5) All contracts and -subgrants in excess of $2,000 for construction or repair awarded by recipients and subrecipients shall include a provision for compliance with the Copeland "Anti -Kick Back" Act (18. U.S.C. 874) as supplemented in Department of Labor regulations (29 CFR, Part 3). This Act provides that each contractor or subgrantee shall 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 compensation to which he is otherwise entitled. The recipient shall report all suspected or reported violations to FWS. (6) When required by the Federal program legislation, all construction contracts awarded by the recipients and subrecipients of more than 52,000 shall include a provision for compliance with the Davis -Bacon Act (40 U.S.C. 276a to a- 7) and as supplemented by Department of Labor regulations (29 CFR, Part 5). Under thi-s Act contractors shall be required to pay wages to laborers and mechanics- at a rate not less than the minimum wages specified in a wage determination made by the Secretary of Labor. In addition, contractors shall be required to -pay wages not less than once a week. The recipient shall place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation and the award of a contract shall be conditioned upon the acceptance of the wage determination. The recipient shall report all suspected or reported violations to the SO. (7) When required by the Federal program legislation, recipients in excess of $2,000 for construction contracts and in excess of $2,500 for other contracts that involve the employment of mechanics or laborers, shall include a provision for compliance with sections 103 and 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 327-330) as supplemented by Department of Labor regulations (29 CFR, Part 5). Under section 103 of the Act, each contractor` shall be required to compute the wages of every mechanic and laborer on the basis of a standard work day of 8 hours and a standard work week of 40 hours. Work in excess of the standard workday or workweek is permissible provided that the worker is compensated at a rate of not less than 1 1/2 times the basic rate of pay for all hours worked in excess of 8 hours in any calendar day or 40 hours in the .workweek. Section 107 of the Act is applicable to construction work and provides that no laborer or mechanic shall be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous to his health and safety as determined under construction safety and -health standards 26 promulgated by the Secretary of Labor. 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. (8) Contracts or agreements, the principal purpose of which is to create, develop or improve products, processes or methods; or for exploration into fields that cie directly or technologylic in whichhthere has beenor littler contracts significant in the field of sciencea notice experience outside of work re ardingd byrightsatoFederlainve tionssistances andlmaterialsngenerated to the effect that matter g under the contract or agreement are subject to the regulations issued by FWS and the recipient. (9) All negotiated contracts (except those of $10,000 or less) awarded by recipientshall include provision to the effect that the recipient, FWS, the Comptroller Genes othUnited States, or any of their dulyauthorized a ers and retards of representatives, shall have access aotosa specificsprogram for the purpose the contractor which are directly pertinent of making audits, examinations, �in all prequiredr records transcriptions. 3 years Recipientsshall tithe require contractors to ma recipient makes final payment and all pending matters are closed. (10) Contracts and subgrants of amounts in excess of $100,O00 shall ly with all contain a provision Chat order orires regulati regulations pursuient to ant toree othe Clean Air Act applicable standards, of 1970 (42 U.S.C. 1857 et seq.) and the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.,) as amended. Violations shall be reported to FWS and the regional office of the Environmgntal Protection Agency. licies (11) Contractsall r whichZ area contained standards the St teo energy relating to energy efficiency conservation plan issued in compliance with the Energy Policy and Conservation Act (P.L. 9.4-163). as h. If the recipient is a �tatsh 11 local adhere otos the tor other following additional defined in OMB Circular A-102, provisions: In order to foster greater economy and efficiency, recipients are encouraged to enter into State and local intergovernmental agreements for procurements or use of common goods and services. Procurements shall be made by one of the following methods, as described herein:. (a) small purchase procedures; (b) competitive sealed pe bids (formal advertising); (c) competitive negotiation; and (d) negotiation. (1) Small purchase procedures are those relatively simple and informal procurement methods that are sound and appropriate for a pnot rocuremmoren t of ser0i000. supplies or other property, costing in the aggregate Recipients shall comply with Stateaused for a prat cement underl small urchase dollar ie grant, If small purchase procedures are price or rate.quotations shall be obtained from an adequate number of qualified sources. 27 • (2) In competitive sealed bids (formal advertising), sealed 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 lowest in price. (a) In order for formal advertising to be feasible, appropriate conditions must be present, including, as a minimum, the following: (i) A complete, adequate and realistic specification or purchase description is available. (ii) Two or more responsible suppliers are willing and able to compete effectively for the recipient's business. (iii) The procurement lends itself to a firm -fixed-price contract, and selection of the successful bidder can appropriately be made principally on the basis of price. (b) If formal advertising is used for a procurement under a grant or other agreement, the following requirements shall apply: (i) A sufficient time prior to the date set for opening of bids, bids shall be solicited from an adequate number of known suppliers. In addition, the invitation shall be publicly advertised. (ii) The invitation for bids, including specifications and pertinent attachments, shall clearly define the items or services needed in order for.the bidders to properly respond to the invitation. (iii) All bids shall be opened publicly at the time and place stated in the invitation for bids. (iv) A firm -fixed-price contract award shall be made by written notice to that responsible bidder whose bid, conforming to the invitation for bids,"is lowest. Where specified in the bidding documents, factors such as discounts, transportation costs and life cycle costs shall be considered in determining which bid is lowest. Payment discounts may only be used to determine low bid when prior experience of the grantee indicates that such discounts are generally taken. (v) Any or all bids may be rejected when there.are sound documented business reasons in the best interest of the program. (3) In competitive negotiation, proposals are requested from a number of sources and the Request for Proposal is publicized, negotiations are normally conducted with more than one of the sources submitting offers, and either a fixed-price or cost -reimbursable type contract is awarded, as appropriate. Competitive negotiation may be used if conditions are not appropriate for the use of formal advertising. If competitive negotiation is used for a procurement under a grant or other agreement, the following requirements shall apply: 0 • (a) Proposals shall be solicited from an adequate number of qualified sources to permit reasonable competition consistent with the nature and requirements of the euRequest oposal slpublicized and reasonable requests byo her sourceto compete shall be honored to the maximum extent practicable. (b) The Request for Proposal shall identify all significant evaluation factors, including price or cost where required and their relative importance. (c) The recipient shall provide mechanisms for technical evaluation ooftwrittenoorloral discuss ons, and selection fodeterminations of rnsible contractawards for the purpose o (d) Award may be made to the responsible offeror whose proposal will be most advantageous to the procuring party, price and other factors considered. Unsuccessful offerors should be notified promptly. (e) Recipients may utilize competitive negotiation procedures for procurement of architectural/engineering professional services, whereby competitors' qualifications 9 negotiation ofafaireand nd the easonabletcompensation. ualified ompetitor is selected, subject (4) Noncompetitive negotiation is procurement through solicitation of a proposal from only one source, or after solicitation of a number of sources, competition is determined inadequate. Noncompetitive negotiation may be. used when the award of a contract is infeasible under small purchase, competitive bidding (formal advertising), or competitive negotiated procedures. Circumstances under which a contract may be awarded by 'noncompetitive negotiation -are limited to the following: (a) The item is available only from a single source; (b) Public exigency or emergency when the urgency for the requirement -will not permit a delay incident to competitive solicitation; (c) FWS authorizes noncompetitive negotiations; or (d) After solicitation of a number of sources, competition is determined inadequate. 17A. AUDIT REOUIREMENTS (OMB CIRCULAR A-110) - [This clause is applicable and to all assistance agreements with institutions of higher education, hospitalsother nonprofit organizations involving the transfer of Federal funds] a. Recipients' financial management systems shall provide for examina- tions in the form of audits or internal audits. Such audits shall be made by qualified individuals who are sufficiently independent of those who authorize the expenditure of Federal funds, to produce unbiased opinions, conclusions or judgments. They shall met the independence criteria along the lines rdsoforf Chapter 3, Part 3 of the U.S. General Accounting Office publication, of Governments Or anizations Pr rams ActiviLi s and Functions. These • examinations are intended to ascertain the effectiveness of the financial management systems and internal procedures that have been established to meet the terms and conditions of the agreements. It is not intended that each agreement 29 awarded to the recipient be examined. Generally, examinations should be conducted on an organization -wide basis to test the fiscal integrity of financial transactions, as well as compliance, with the terms and conditions of the Federal grants and other agreements. Such tests would include an appropriate sampling of - Federal agreements. Examinations will be conducted with reasonable frequency, on a continuing basis or at scheduled intervals, usually annually, but not less frequently than every 2 years. The frequency of these examinations shall depend upon the nature, size and the complexity of the activity. These examinations do not relieve Federal agencies of their audit responsibilities, but may affect the frequency and scope of such audits. b. The primary recipient shall require its subrecipients to adapt the above standards. 17B. AUDIT REQUIREMENTS (OMB Circular A-128) - [This clause is applicable to all assistance agreements with State and local governments and Federally recognized Indian tribal governments) a. Definitions - For the purposes of this clause the following definitions from the Single Audit Act apply: (1) "Cognizant agency" means the Federal agency assigned by the Office of Management and Budget to carry out their audit responsibilities. (2) "Federal financial assistance" means assistance provided by a Federal agency in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance, or direct appropriations, but does not include direct Federal cash assistance to individuals. It includes awards received directly from Federal agencies, or indirectly through other units of State and local governments. (3) "Federal agency." has the same meaning as the term "agency" in section 551(1) of Title 5, United States Code. (4) "Generally accepted accounting principles" has the meaning specified in the generally accepted government auditing standards. (5) "Generally accepted government auditing standards" means the Functions, issued by the Comptroller General on February 27, 1981. (6) "Independent auditor" means: (a) An external State or local government auditor who meets the. - independence standards specified in generally accepted government auditing standards; or (b) A public accountant who meets such independence standards. (7) "Internal controls" means the plan of organization and methods and procedures adopted by management to ensure that: 0 (a) Resource use is consistent with laws, regulations, and policies; 30 • (b) Resources are safeguarded against waste, loss, and misuse; and (c) Reliable data are obtained, maintained and fairly disclosed in.reports. n LJ (8) "Indian tribe" means any Indian tribe, band, nations, or other organized group or community, including any Alaskan Native village or regional or village corporations (as defined in, or established under, the Alaskan Native claims Settlement pro rams) and tis servicesgnize provided by ththe e United Statesed States' as 'to'ble for Indians the specs programs because of their status as Indians. (9) "Local government" means any unit of local government within a State,_ including a county, a borough, municipality, city, town, township, parish, local public authority, special district, school district, intrastate district, council of governments, and any other instrumentality of local government. (10) "Public accountants" means those individuals who meet the qualification standards included in generally accepted government auditing standards for personnel performing government audits: (11) "State" means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and the Trust territory of the Pacific Islands, any instru;aentality thereof, and any multi -State regional, br interstate entity that has governmental functions and any Indian tribe. (12) "Subrecipient" means any person or government department, agency or establishment that receives Federal financial assistance to carry out a program through a State or local government, but does not include an individual that is a beneficiary of such a program. A subrecipient may also be a direct recipient of Federal Financial Assistance. b. Scope of audit - The Single Audit Act provides that: (1) The audit shall be made by an independant, auditor in accordance with generally accepted government auditing standards covering financial and compliance audits. (2) Each audit shall cover the entire operations of a State or local government or, at the option of that government, it may cover departments, agencies or establishments that received, expended, or otherwise administered Federal financial assistance during the year. However, if a State or locale government receives over $25,000 in General Revenue Sharing funds in a fiscal year, it shall have an audit of the entire organization. A series of audits of individual departments, agencies, and establishments for the same fiscal year may be considered a single audit. 31 (3) Public. hospitals and public colleges and universities may be excluded from State and local audits and the requirements of this clause. However, if such entities are excluded, audits of these entities shall be made in_ accordance with statutory requirements and the provisions of OMB Circular A-110, "Uniform Requirements for Grants and Agreements with Institutions of Higher Education, Hospital(s) and Other Nonprofit Organizations." (4) The auditor shall determine whether: (a) The financial statements of the government, department, agen6, or establishment present fairly its financial position and the results of its financial operations in accordance with generally accepted accounting principles; (b) The organization has internal -accounting and other control systems to provide reasonable assurance that it is managing Federal financial assistance programs in compliance with applicable laws and regulations; and (c) The- organization has complied with laws and regulations that may have a material effect upon each major Federal assistance program. C. Fre uenc of audit - Audits shall be made annually unless the State or local government has by January 1, 1987, a constitutional or statutory requirement for less frequent audits. For those governments, the cognizant agency shall permit biennial audits, concerning both years, if the government so requests. It shall also honor requests for biennial audits by governments that have an administrative policy calling for audits less frequent than annual, but only for fiscal years beginning before January 1, 1987. d. „internal control and compliance reviews - The Single Audit Act requires that the independent auditor determine and report on whether the organization has internal control systems to provide reasonable assurance that it is managing Federal' assistance programs in compliance with applicalbe laws and regulations. (1) Internal -control review. In order to provide this assurance the auditor must make a study and evaluation of internal control systems used in administering Federal assistance programs. The study and evaluation must be made whether or not the auditor intends to place reliance on such systems. As part of this review, the auditor shall: (a) , Test whether these internal control systems are functioning in accordance with prescribed procedures. (b) Examine the recipient's system for monitoring subrecipients and obtaining and acting on subrecipient audit reports. (2) Compliance review - The law also requires the auditor to determine whether the organization has complied with laws and regulations that have a material effect upon each major Federal assistance program. (a) In order to determine which- major programs are to be tested for compliance, State and local governments shall identify in their accounts all • Federal funds received and expended and the programs under which they were received. This shall include funds received directly from Federal agencies and through other State and local governments. 32 (b) The review must include the selection and testing of a representative number of charges from each major Federal assistance program. The selection and testing of transactions shall be based on the auditor's professional judgment considering such factors as the amount of expenditures for the program and the individual awards; the newness of the program or changes in its conditions; prior experience with the program particularly as revealed in audits and other evaluations (e.g., inspections, program reviews); the extent to which the program is carried out through subrecipients; the extent to which the program contracts for goods or services; the level to which the program is already subject to program reviews or other forms of independent oversight; the adequacy adherencettol thefor applicablec lawsaand; the regul tieonstiand theadherence potential lack of a impact of adverse findings. (i) In making these test of transactions, the auditor shall determine whether: --the amounts reported as expenditures were for allowable services, and --the records show that those who received services or benefits were eligible to receive them. (ii) In addition to transaction testing, the auditor shall determine whether: --matching requirements, levels of effort and earmarking limitations were met, --Federal financial reports and claims for advances and reimbursements contain information that is supported by the books and records from which the basic financial statements have been prepared, and --amounts claimed or used for matching were determined in accordance with OMB Circular A-87, "Cost Principles for State and Local Governments" and OMB Circular A-102, "Uniform Requirements for Grants and Agreements with State and Local Governments." (iii) The principal compliance requirements of the largest Federal aid programs may be ascertained by referring the the Compliance u lement for Single Audits f� S ate and Local Gov rnment, issued by OMB and available from the Government Printing Office. For those programs not covered in the Compliance Supplement, the auditor may ascertain compliance requirements by researching the statutes, regulations, and agreements governing individual programs. (c) Transactions related to other Federal assistance programs that are d connection xi financial aaievaluations of internal controls shall betested forcompliance with Federal laws and regulations that apply to such transactions. e. S br tance nts and - State or local provides $25 000 orgmorenofnts that it in a fiscalvyeardtoaa financial asses subrecipient shall: (1) Determine whether State or local subrecipients have met the audit requirements of this clause and whether subrecipients covered by OMB Circular Hospit sq and Other tion -Profit Organiuirements for zations,* havrants and ermetents with that requirement;sities, Hospitals, and 33 (2) Determine whether the subrecipient spent Federal assistance funds provided in accordance with applicable laws and regulations. This may be ac,complished by reviewing an audit of the subrecipient made in accordance with this clause. OMB Circular A-110, or through other means (e.g., program reviews) if the subrecipient has not had such an audit; (3) Ensure that appropriate corrective action is taken within 6 months after issuance of the audit report in instances of noncompliance with laws and regulations; . (4) Consider whether subrecipient audits necessitate adjustment of the recipient's own records; and (5) Require each subrecipient to permit independent auditors to have access to the records and financial statements as necessary to comply with this clause. f. Relation to other audit requirements. .(1) The provisions of this clause do not limit the authority if FWS to make, or contract for audits and evaluations of Federal financial assistance programs, nor do they limit the authority of any Federal agency Inspector General or other Federal audit official. (2) FWS shall make any additional audits that are necessary to carry out its responsibilities under Federal law or regulations. The provisions of this clause do not authorize any State or local government (or subrecipient thereof) to constrain, in any manner, FWS from carrying out such additional audits. (3) If FWS makes or contracts for audits in addition to the audits made by- recipients pursuant to this clause, it shall, consistent with other applicable laws and regulations, provide for the cost of such additional audits. Such additional audits include economy and efficiency audits, program results audits, and program evaluations. g. Illegal acts or irregularities - If the auditor becomes aware of illegal acts or other irregularities, prompt notice shall be give to recipient management officials above the level of involvement. The recipient, in turn, shall promptly notify the cognizant agency of the illegal acts or -irregularities and of proposed -and actual actions,. if any. Illegal acts and irregularities include such matters as conflicts of interest, falsification of records or reports, and misappropriations of funds or other assets. h.. Audit Reports - Audit reports must be prepared at the completion of the. audit and shall include the following: (l) The audit report shall state that the audit was made. in accordance with the provisions of this clause. The report shall be made up of at least: 34 (a) The auditor's report on financial statements and -on a • schedule of Federal assistance; otal financialthe statements; for Beach Federal assistance chedule of ex assistance Federal assistance showing the P program as identified in the �atatoebeen Fassigned a scatalogin m er sh llerbe programs or grants that have no identified under the caption "other Federal Assistance." (b) The auditor's report on the study and evaluation of internal control systems must identify thorganization's gztoi Prov denificant reasonable internalaccounting that controls, and those controls designed com liance with laws and regulations. It Federal programs are being managed in P must also identify the controls that were identifiedtas+atresult of the evaluation�t evaluated, and the material weaknesses (c) The auditor's report on compliance containing: (i) A statement of positive assurance with respect to those items tested for compliance and advances and reimbursements; liance with law and lations pertaining to financial reports those items not tested; er 9 on P -assurance {ii} Negative and (iii) A summary of all in a�famountsplque ti�oned, if (iv) An identification of tot any, for each Federal assistance award, as a result of noncompliance. (2) The three parts of the se report oate docume be bound into a single report, or presented at the same time as Par • (3) All fraud abuse, s s the resultal acts rof these acts t at indications of auditors including all questioned costs found a become aware of, should normally be covered in a separate written report. (4) In addition to the audit report, reportiincludingient aa plan ide comments on the findings and recommendations in correctsve actions taken or plannedlfn�orrtive action ison the -not not of corrective va action taken on prior findings statement describing the reason it is not should accompany the audit report. (5) The reports shall be made 30 daysaal letion ofthe athe audit. te or cal government for public inspection withftercomp ndar b In accordance with generally accepted government a dit sda andds, reports shall be submitted by the auditor to the organization recipient shall to re those requiring or arranging for the audit. In addition, the that provided submit copies of the reports to each Federal department or agency Federal assistance funds to theFederale assistancec�fundss sThe reports ienthall submitcshall be recipients that provided themut no later than one sent within 30 days after the comunless aetion of the longersperiod is agreed to withythe after the end of the audit period cognizant agency. t7) Recipients of more than ss afte00�ssuancein eral to afunds centralall tlearbmit one inghouse of the audit report within 30 day et. The clearinghouse will copyManagement and Budget. to be designated by the Office of keep completed audits on file and follow up with State and local governments that have not.submitted required audit reports. 35 • (8) Recipients shall keep audit reports on file for three years from thier issuance. (i) Audit Resolution - The conizant agency shall be responsible for overseeing the resolution of audit findings that affect the programs of more than one Federal agency. Resolution of findings that relate solely to the programs of FWS will be the responsibility of the recipient and FWS. Alternate arrangements may be made on a case-by-case basis by agreement between the agencies concerned. Resolution shall be made within six months after receipt of the --report by the departments and agencies. Corrective action should proceed as rapidly as possible. (j) Audit workpaper and reports Workpapers and reports shall be retained for a minimum of three years from the .date of the audit report, unless the auditor is notified in writing by the cognizant agency to extend the retention period. Audit workpapers shall be made available upon request to the cognizant agency or its designee or the General Accounting Office, at the completion of the audit. (k) Audit Costs - The cost of audits made in accordance with the provisions of this clause are allowable charges to Federal assistance programs. (1) The charges may be considered a direct cost or' an allocated indirect cost, determined in accordancee with the provisions of Circular A-87, "Cost Principles for State and Local Governments." (2) Generally, the percentage of costs charged to Federal assistance programs for a single audit shall not exceed the percentage that Federal funds represent of total expenditures of the recipient during the fiscal year. The percentage may be exceeded, however, if appropriate documentation demonstrates higher actual cost. (1) Sanctions - No cost may be charges to Federal assistance programs for audits required by the Act that are not made in accordance with this clause. In cases of continued inability or unwillingness to have a proper audit, FWS may consider other appropriate sanctions including: (1) withholding a percentage of assistance payments until the audit is completed satisfactorily. (2) withholding or disallowing overhead costs, or (3) suspending the Federal assistance agreement until the audit is made. (m) Auditor Selection - In arranging for audit services State and local governments shall follow the procurement standards prescribed in Clause 16. The standards provide that while recipients are encouraged to. enter into intergovernmental agreements for audit and other services, analysis should be made to determine whether it would be more economical to purchase the services. • from private firms. In instances where use of such intergovernmental agreements are required by State statutes (e.g., audit services) these statutes will take precedence. 36 • (n) Small and M I inority Audit Firms - Small audit firms and audit firms owned and controlled by socially and economically disadvantaged individuals shall have the maximum practicable opportunity to participate in the performance of .. of tracti Federalaassista assistance shalled to l the take thedit followRecipients following steps to further this goal of Fe (1)andAssure economi�callyat small disadvantagedfirms and audit individuals firms controlled by socially are used to the fullest extent practicable. (2) Make information on forthcoming opportunities available and arrange timeframes rmsthe and audit audito as to firms owned and socially facilitate and participation by small audit f . disadvantaged individuals. (3) Consider in the contract process whether firms competing for larger audits intend to subcontract with small audit firms and audit firms owned and controlled by socially and economically disadvantaged individuals. (4) Encourage contracting with small audit firms or audit firms owned and controlled by socially and economically disadvantaged individuals which have traditionally audited government programs and, in such cases where this is hot possible, assure that these firms are givern consideration for audit subcontracting opportunities. (5) Encourage contracting with consortiums of small audit firms as described n firm ooraauditph 1)firmvow ed aboe when a contract is too lare and controlled by sociallyfor a n individual small auditand economically disadvantaged individuals. (6) Use the services and assistance, as appropriate, of such organSmall Administration rit ion and utilization tilizationof small audit firms or audiitfirmsowed and cotrolledbysocially and economically disadvantaged individuals. 17C. AUDIT REQUIREMENTS - (April. 1984, Deviations, FAR 52.215.2) - [This clause is applicable to all assistance agreements with commercial organizations involving the transfer of Federal funds] a. Examination of Cost - The recipient shall maintain --and the SO or representatives of the SO shall have the right to examine and audit --books, records, documents, and other evidence and accounting procedures and practices, sufficient to reflect properly all costs claimed to have been incurred or anticipated to be incurred in performing this agreement. This right of examination shall include inspection at all reasonable times of the recipient's facilities or parts of them, engaged in the performance of the agreement. b, Cost or PriciDg Data The SO or representatives of the SO shall have the right to examine and audit -all books, records, documents, and other data of the recipient (including computations and projections) related to pricing or performing the initial agreement currencysubsequent the costforatins pricingndataorder to evaluate completeness the accuracy, 37 .c. Reports - If the recipient is required to furnish cost, funding, or • performance reports, the SO or representatives of the SO shall have the right to examine and audit books, records, other documents, and supporting materials, for the purpose of evaluating (1) the effectiveness of the recipient's policies and procedures to produce data compatible with the objectives of these reports and (2) the data reported. d.- Availabilitx - The recipient shall make available at its office at all reasonable times the materials described, in paragraphs a and b above, for examination, audit, or reproduction, as specified in the clause entitled Retention and Custodial Reauirements for Records. In addition, the recipient shall insert a clause containing all the terms of this clause, including this paragraph, in all subcontracts over $100,000 under this agreement, altering the clause only as necessary to identify properly the contracting parties and the SO under the Government prime agreement. 18. STANDARD PATENT RIGHTS - (OMB Circular A-124) - [This clause is applicable to all assistance agreements for the performance of research and development work unless otherwise superceded in the Special Provisions of the individual assistance agreement] a. Definitions (1) "Invention" means any invention or discovery which is or may be patentable or otherwise protectable under Title 35 of the United States Code. (2) "Subject Invention" means any invention of the recipient conceived or first actually reduced to practice in the performance of work under this agreement. (3) "Practicable' Application" means to manufacture in the case of a composition or product, to practice in the case of a process or method, or to operate in the case of a machine or system; and, in each case, under such conditions as to establish that the invention is being utilized and that its benefits are, to the extent permitted by law or Government regulations, available to the public on reasonable terms. (4) '"Made" when used in relation to any invention means the conception or first actual reduction to practice of such invention. (5) "Small Business Firm" means a domestic small business concern as defined at section 2 of Public Law 85-536 (15 U.S.C. 632) and implementing regulations of the Administrator of the Small Business Administration. For the purpose of this clause,the size, standards for small business concerns involved in Government procurement and subcontracting at 13 CFR 121.3-12, respectively, shall be used. (6) "Nonprofit Organization" means a domestic university or other institution of higher education or an organization of the type described in section 501(c)(3) of the Internal Revenue Code of 1954 (26 U.S.C. 501(c)) and exempt from taxation under section 501(a) of the Internal Revenue Code (26 U.S.C. 501(a)) or' any domestic nonprofit scientific or educational organization • qualified under a state nonprofit organization statute. 38 b, llocation of Princi le Ri ht - The recipient may retain the -entire • ughout the world to each subject invention subject right, title, and interest thro to the provisions of this clause and 35 U.S.C. 203. With respect to any subject invention in which the recipient retains title, the Federal Government shall have a non-exclusive non -trans n ebeh if of irrevocable, United States these to subjectrai vention, e or have practiced for throughout the world. (1) The recipient shall disclose each subject invention to Fws witnin 2 months after the inventordiscloses disclosure to WS shall be ito nient the formoofea responsible for patent matters. written report and shall identify the agreement under which the invention was made and the inventor(s). it shall be sufficiently complete in technical detail to convey a clear understanding,eooset operation,eandnt known at the physical, chemical, ime of the biological disclasure, of the natu , p or electrical characterisoticsale th inv nti not t eeinvention r ndswhether sa identify any publication, manuscript describing the v}on forhas publeen submitted fr cation at the timepofl disclosures' In so, whether it has been accepted addition, after disclosureuscrito ht describingthe e the i nve tilon for publ cation FWS Of of the acceptance of any man p any on sale or public use planned by the recipient. (2) The recipient shall elect in writing whether or not to retain title to any such invention by inany notifying csehwhere publication, the FWS within 12 nhs of sale,dorclosure public to the recipient, provided that use has initiated the one year statutory period wherein valid patent protection can still be obtained in the United date that isates, the no more thaniod of 60 days election tofthetitle endmof be shortened by FWS to the statutory period. (3) The recipient shall file its initial patent application on an elected invention within 2 yearn aft'valid election stent protect onif s can be obtained ior to the the of any statutory period where P United States after a publitaatdiditionalon scountrieor suwithinuse. eitherThe 10emonthstofshall the file patent applications in corresponding initial patent plication or 6 mon and Trademarks ths from file foreign permission granted by the Commissionerof Patents applications where such filing has been prohibited by a Secrecy Order. - (4) Requests for extension of the time ibe forgrandisclosure to FWS, election, and filing may, at the discretion d, renditions When the Governme Ma btain Title - The recipient shall convey to FWS, upon written request, title to any subject invention: (1) If the recipient fails to disclose or elect the subject invention within the times specified in da s after or elects le ruing oftto retain the recipienttsefailuremto only request title within 60 y • report or elect within the specified times. 39 (2) In those countries in which the recipient fails to file patent applications with the times specified in c. above; provided, however, that if the recipient has filed a patent application in a country after the times specified -- in c. above, but prior to its receipt of the written request of FWS, the recipient shall continue to retain title in that country. (3) In any country in which the recipient decides not to continue the prosecution of any application for, to pay the maintenance fees on, or defend in reexamination or opposition proceeding, on a patent on a subject invention. e. Minimum Rights to Recipient (1) The recipient shall retain a nonexclusive, royalty -free license throughout the world in each subject invention to which the Government obtains title except if the recipient fails to disclose the subject invention within the times specified in c. above. The recipients's license extends to its domestic subsidiaries and affiliates, if any, within the organizational structure of which the recipient is a party and includes .the right to grant sublicenses of the same scope to -the extent the recipient was legally obligated to do so at the time the agreement was awarded. The license is transferable only with the approval of FWS except when transferred to the successor of that party of the recipient's business to which the invention pertains. (2) The recipient's domestic license may be revoked or modified by FWS to the extent necessary to achieve expeditious practical application of the subject invention pursuant to an application for an exclusive license submitted in accordance with applicable provisions in the Federal Property Management Regulations and FWS licensing regulations (if any). This license shall not be revoked in that field of use or the geographical areas in which the recipient has achieved practical application and continues to make the benefits of the invention reasonably accessible to the public. The license •in any foreign country. may be revoked or modified at the discretion of FWS to the extent the recipient, its licensees, or its domestic subsidiaries or affiliates have failed to achieve practical application in the foreign country. (3) Before revocation or modification of the license, FWS shall furnish the recipient a written notice of its intention to revoke or modify the license, and the recipient shall be allowed 30 days (or such other time as may be authorized by the FWS for good cause shown by the recipient) after the notice to show cause why the license should not be revoked or modified.' The recipient has the right to appeal, in accordance with applicable FWS licensing regulations (if any) and the Federal Property Management Regulations concerning the licensing•of Government-owned inventions, any decision concerning the revocation or modification of its license. f. Recipient tion to Protect the Government's Interest (1) The recipient agrees to execute or to have executed and promptly deliver to FWS all instruments necessary to (i) establish or confirm the rights the Government has throughout the world in those subject inventions to which the recipient elects to retain title, and (ii) convey title to FWS when requested under paragraph d. above, and to enable the Government to obtain patent protection throughout the world in that subject invention. 40 (2) The recipient agrees to require, by written agreement, its employees, other than clerical and nontechnical employees, to disclose promptly in writing to personnel identified as responsible for the administration of patent matters and in a format suggested by the recipient each subject invention made under agreement in order that the recipient can comply with the disclosure provisions- of paragraph c. above, and to execute all papers necessary to file patent applications on subject inventions and to establish the Government's rights in the subject inventions. This disclosure format The recipient sh require, as ca minimum, the information required by c(1) sclos such employees through employee agreements or other suitable educational programs on the importance of reportingo {invsntio s in sufficient rs time to permit the -filing gn of patent applications prior (3) The recipient shall notify FWS of any decision not to continue the prosecution of a patent application, pay maintenance fees, or defend in a reexamination or opposition proceeding on a patent, in any country, not less than 30 days before the expiration of the response period required by the relevant patent office. (4) The recipient agrees, to include, within the specification any United States patent application and any patent issuing thereon covering a subject invention, the following statement: "This invention was made with Government support under overnmentythe has certain rightsent aineth is invention."Fish and Wildlife Service). Th g. Subcontracts - The recipient shall include this clause suitably modified to identify the parties, in all subagreements, regardless of tier, for experimental, developmental, or research work to be performed by a small business firm or nonprofit organization. The subrecipient shall retain all rights provided for the recons for awardi g clause, and the ubagreementpiobtainent alrights in l not, as pthe art of the 'consideration subrecipient's subject inventions. h. Reporting utilization of Subject Inventions - The recipient agrees to submit on request periodic reports no more frequently than annually on the utilization of a subject invention or on efforts at obtaining such utilization that.are being made by the recipient or its licensees or assignees. Such reports shall include information regarding the status of development, date of first commercial sale or use, gross royalties received by the recipient, and such other data and information as the agency may reasonably equested.by The reci ie n nt aiso agrees to provide additional reports as may with any march -in proceedings undertaken by FWS in accordance with paragraph j. of this clause. To the extent data or information supplied under this section is considered by the recipient, its licensee or assignee to be privileged and confidential and is so marked, FWS agrees that, to the extent permitted by law, it shall not disclose such information to persons outside the Government. i. Preference for United States_IndusC - Notwithstanding any other provision of this use, the recipient agrees that neither it nor any assignee will grant to any person the exclusive right to use or sell any subject invention in the United Stites unless sufaciured substantially rees that in the Unit d St troducts esing the subject invention shall be man 41 However, in individual, cases, the requirement for such an agreement may be waived by the FWS upon a showing by the recipient or its assignee that reasonable but unsuccessful efforts. have been made to grant licenses on similar terms to potential licensees that would be -likely to manufacture substantially in the United States or that under the circumstances domestic manufacture is not commercially feasible. J.' March -in -Rights - The recipient agrees that with respect to any subject invention in which it has acquired title, FWS has the right in accordance with the procedures in OMB Circular A-124 to require the recipient, an assignee or exclusive licensee of a subject invention to grant a non-exclusive, partially exclusive, or exclusive license in any field of use to a responsible applicant or applicants, upon terms that are reasonable under the circumstances, and if the recipient, assignee, or exclusive licensee refuses such a request, FWS has the right to grant such a license itself if FWS determines that: (1) Such action is necessary because the recipient or assignee has not taken, or is not expected to take within a reasonable time, effective steps to achieve practical application of the subject invention in such field of use; (2) Such action is necessary to alleviate health or safety needs which are not reasonably satisfied by the recipient, assignee, or their licensees; (3) Such action is necessary to meet requirements for public use specified by Federal regulations and such requirements are not reasonably satisfied by the recipient, assignee, or licensees; or (4) Such action is necessary because the agreement required by paragraph i..of this clause has not been obtained or waived or because a license of the exclusive right to use or sell any subject invention in the United States is in breach of such agreement. k. Special Provisions for Agreements with Non - ofit Organizations - If the recipient is a nonprofit organization, it agrees that: (1) Rights to a subject invention in the United States may not be assigned without the approval of FWS, except where such assignment is made to an organization which has as one of its primary functions the management of inventions and which is not, itself, engaged in or does not hold a substantial interest in other organizations engaged in the manufacture or sale of products or the use of processes that might utilize the invention or be in competition with embodiments of the invention (provided that such assignee shall be subject to the same provisions as the recipient); (2) The recipient may not grant exclusive licenses under United States - patents or patent applications in subject inventions to persons other than small business firms for a period in excess of the earlier of: invention; or C (i) Five years from first commercial sale or use of the 42 • (ii) Eight years from the date of.the exclusive license excepting that time before regulatory agencies necessary to obtain premarket clearance, unless on a case-by-case basis, FWS approves a longer exclusive license. if exclusive field of use licenses are -granted, commercial sale or use in one field of use shall not be deemed commercial i tosale or end these with exclusivesperiod toect to a product of different the invention shall no be subsequent product's covered by the invention. (3) The recipient shall share royalties collected on a subject invention with the inventor; and (4) The balance of any royalties or income earned by the recipient with respect to subject inventions, after payment of expenses (including payments to inventors) incidential to the administration of subject inventions, shall be utilized for the support of scientific research or. education. 19. DATA CO LECTION - (Paperwork Reduction Act of 1980) - [This clause shall be applicable to all assistance agreements through which FWS sponsors the collection of information as defined in 5 CFR* 1320.1] a. OMS requires review and approval of plans and reports used to collect identical information from 10 or more persons (other than Federal employees) under assistance agreements sponsored by FWS. A collection of information undertaken by a recipient is considered to be "sponsored" by FWS only if: (1) The recipient is collecting information at the specific request of FWS; or (2) The terms and conditions of. the agreement require specific approval by FWS of the collection of information or the collection procedures. b. Unless otherwise specified, data collection conducted under.t_he assistance agreement is.the responsibility of the recipient, and FWS support bf the project does not constitute FWS approval of the survey design, questionnaire content, or data collection procedures. The recipient shall not represent to respondents that such data is being collected for, or in association with, the FWS or any Federal agency without the specific written approval of such data collection plan or device by the FWS. However, this requirement is not intended to preclude mention of FWS support of the projion of this data to any inquire or acknowledgement of such support in any p 2O. RiGHTs IH TECHNICAL A AND COMPUTER SOFTWARE - [This clause shall be applicable to all assistance agreements involving the accumulation of technical data or the development of computer software financed in whole or in part with Federal funds) a. Definitions (1) The term "technical data" means recorded information, regardless of form or characteristic, of a scientific or technical nature. Technical data does not include computer software, and it .does not include financial, administrative, cost pricing, and management data, or other information • incidental.to contract administration. 43 • (2) Computer Software - Computer programs and computer data bases. (3) Computer Software Docume t tio - Technical data, including computer listings and printouts, in human -readable form which (i) documents the•_ design or details of computer software, (ii) explains the capabilities of the software, or (iii) provides operating instructions for using the software to obtain desired results from a computer. (4) Unlimited Rights means rights to use, duplicate, or disclose technical data or computer software in whole or in part, in any manner and for any purpose whatsoever, and to have or permit others to do so. (3) Limited Rights means rights to use, duplicate, or disclose technical data, in whole or in part, by or for the Government, with the express limitation that such technical data shall not, without the written permission of the party furnishing such technical data be (a) released or disclosed in whole or in part outside the Government, (b) used in whole or in part by the Government for manufacture, or in the case of computer software documentation, for preparing the same or similar computer software, or (c) used by a party other than the Government, except for emergency repairs or release to a foreign government as the interest of the United States may require. -- (6) Restricted Rights apply only to computer software and include, as a minimum, the right to: (i) use computer software with the computer (or if inoperative, a backup) for which it was acquired at any Government installation; (ii) copy computer programs for safekeeping (archives) or backup purposes; (iii) modify computer software or combine it with other software, subject to continuation of the existing restricted rights provisions. b. Government Rights (1) Unlimited Rights - The Government shall have unlimited rights in: (a) ' Technical data and computer software resulting directly from performance of experimental, developmental or research work which was specified as an element of performance in this or any other Government assistance agreement or contract, at any tier; (b) Computer software required to be originated or developed or generated as a necessary part performance under this or any other Government assistance agreement or contract, at any tier; (c) Computer data bases prepared under this or any other Government assistance agreement or contract at any tier consisting of information supplied by the Government, information in which the Government has unlimited, rights, or information which is in the public domain; (d) Technical data or computer software, constituting corrections or changes to Government -furnished data or computer software, prepared or required to be delivered under this or any other Government assistance agreement or contract at any tier; (e) Technical dataor computer software which is in the public domain or has been or is normally released or disclosed by the recipient or subrecipients without restriction or further disclosure; 44 • (f) Technical data or computer software listed -or described elsewhere in this assistance agreement which the parties have predetermined and agreed will be furnished with unlimited rights. - (2) Limited Riohts - The Government shall have -limited rights in: (a) Technical data, listed or described elsewhere in this assistance agreement which the parties have agreed will be furnished with limited rights; (b) Unpublished technical data developed at private expense and unpublished computer software documentation related to computer software that is acquired with restricted rights provided that the data to which the Government's rights are limited i's identified. (3) Restricted Rights - The Government shall have restricted rights in computer software, listed or described elsewhere in this assistance agreement, which -the parties have agreed will be furnished with restricted rights, provided further that: (a) The recipient clearly marks the computer software with a restricted rights legend and the related computer software documentation includes. a prominent statement of the restrictions applicable to the computer software. Failure of the recipient to apply a restricted rights legend to such computer software shall relieve the Government of liability with respect to such unmarked software. (b) The recipient may not place any legend on computer software indicating restrictions on the Government's rights in such software unless the restrictions are set forth elsewhere in this assistance agreement and agreed to by the parties prior to the delivery data of the software. (4)' No legend shall be marked on, nor shall any limitation or restriction on rights of use* to any data or computer software which the recipient has previously delivered to the Government without restriction. The limited or restricted rights provided for by this clause shall not impair the right.of the Government to use similar or identical data or computer software acquired from other sources. C. lndemnifi ation - The recipient shall indemnify -and save and hold harmless the Government, its officers, agents, and employees acting within the scope of their- official duties against any liability, including costs and expenses, resulting from any willful or intentional violation by the recipient of proprietary rights; copyrights, or rights or privacy, arising out of the. publication, translation, reproduction, delivery, performance, use or disposition of any data furnished under this assistance agreement. d. AcQuisition of Technical Data and Computer 5oftware from Subcontractors (1) Whenever any technical data or computer software is to be obtained from a subcontractor under this agreement, the recipient shall use this same clause in the subcontract, without -alteration, and no other clause shall be used to enlarge or diminish the Government's or the recipient's rights in that subcontractor data or computer software which is required for the Government. 45 (2) The recipient and higher -tier subcontractors will not use their • power to award subcontracts as -economic leverage to acquire rights in technical data or computer software from their subcontractors for themselves. e. Relation to Patents - Nothing contained in this clause shall imply a'- license to the Government under any patent or be construed as affecting the scope of any license or other right otherwise granted to the Government under any patent. 21. RESTRICTIONS ON PRINTING -(Government Printing and Binding Regulations published by the Joint . Committee on Printing, Congress of the United States) - [This clause is applicable to all assistance agreements except those in which the entire cost of printing is not borne by the FWS or the printing is not exclusively for the FWS' use) a. This assistance agreement is not made primarily or substantially for the purpose of typesetting or having material printed for FWS use. b. Recipients may reproduce without further authorization, reports, data, or other written material required -under the terms of the agreement for the use of FWS, provided that the material duplicated does not exceed 5,000 units of only one page, or that items consisting of multiple pages do not exceed 25,000 units in the aggregate. Recipients -must advise the SO if the estimated quantities will exceed these ceilings so that Departmental/Committee approval can be obtained. c. These restrictions do not preclude the writing, editing, preparation of manuscript copy and relEted illustrative material, or the publication of findings by recipients; or the administrative printing requirements of the recipient required for its own use to respond to the terms of the agreement. 22. NISTRATIVE PROVISIONS AND ASSURANCES - [The following provisions and assurances are applicable to all assistance agreements] The recipient hereby assures and certifies that: a. It possesses legal authority to apply for and accept this Agreement; that any necessary resolution, motion or similar action has been duly adopted or passed as an official act of it's governing body, authorizing the filing of any application, 'including all understandings and assurances contained therein and directing and authorizing any person identified as it's official representative to act in connection with any application or acceptance and to provide such information as may be required. b. It shall comply with Title VI of the Civil Rights Act of 1964 (P.L. 88- 352), and in accordance with Title VI of the Act, no person in the United States shall, on the ground of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity for which recipient receives Federal financial assistance and shall immediately take any measures necessary to effectuate this Agreement. 46 . c . it shall comply with Title VI of Civil Rights Act of 1964 (42-U.S.C. • 2000d) prohibiting employment discrimination where (i) the primary purpose of an agreement is to provide employment or (ii) discriminatory employment practices will result in unequal treatment of persons who are or should be benefiting form the assistance -aided activity. d. It shall comply with the provisions of the Age Discrimination Act of 1975 (PI.L. 94-135; 42 U.S.C. 6101, et. seq.) and in accordance with that Act, shall prohibit discrimination on the basis of age. e.. It, shall comply, to the extent applicable, with Title IX of the Education Amendments of 1972 (20 U.S.C. 1681, et. seq.) which provides that no person in the United States shall, on the basis of sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any educational program or activity receiving Federal financial assistance. f. It shall comply with Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. 794, P.L. 93-112), and all requirements imposed by or pursuant to the regulations of .the Department of Health, Educatior4 and -Welfare (45 CFR Parts 80, 81 and 84), promulgated under the foregoing statute. It agrees 'that, in accordance with the foregoing requirements, no otherwise qualified handicapped person, by reason of handicap, shall be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance, and that it shall take any measures necessary to effectuate this Agreement. g. It shall comply 'With requirements of the provisions of the Uniform Relocation Assistance and Real Property Acquisitions Act of 1970 (P.L. 91-646; 42 U.S.C. 4601, et. seq.) which provides for fair and equitable treatment of persons displaced as a result of Federal and Federally assisted programs. h. It shall comply with the minimum wage and maximum hours provisions of the Federal Fair Labor Standards Act (29 U.S.C.- 500, et. seq.) requiring. the payment of the minimum wage for all covered employees and the payment of overtime. J. It shall establish safeguards to prohibit employees from using their positions for a purpose that is or gives the appearance of being motivated by a desire for private gain for themselves or others, particularly those with whom they have family, business, or other ties. J. It shall assure that no member of or delegate to Congress, or resident Commissioner, will be admitted to any share or part of this assistance agreement, or to any benefit that may arise from it. And further, it shall comply with the provisions of 18 U.S.C. 1913 which prohibits the direct or indirect use of any funds appropriated by Congress to pay for any personal service, advertisement, telegram, telephone, letter, printed or written matter, or other device intended or designed to influence a member of Congress, to favor or oppose, any legislation or appropriation, whether before or after the introduction of any bill or resolution proposing such legislation or appropriation. Finally, it warrants that it has not paid and agrees not to pay any bonus, commission or fee for the purpose of obtaining approval of it's application for the financial assistance agreement. :�i k. It shall comply with the flood insurance purchase requirements of •Section 102(a) of the Flood Disaster Protection Act of 1973 (P.L. 93-234, 87 •Stat. 975 approved December 13, 1975) which call for the purchase of flood insurance in•communities where such insurance is available as a condition for the -. receipt of any Federal financial assistance for construction or acquisition purposes for use in any area that has been identified by the Director of the Federal Emergency Management, Agency as an area having special flood hazards. The phrase "Federal financial assistance" includes any form of loan, grant, guaranty, insurance payment, rebate, subsidy, disaster assistance loan or grant, or any other form of direct or indirect Federal assistance. 1. It shall ensure, pursuant to Executive Order 11738, that the facilities under its ownership, lease, or supervision, which shall be utilized in the accomplishment of the agreement are not listed on the Environmental Protection Agency (EPA) list of violating facilities and that it shall notify FWS of the receipt of any communication from the. Director of the EPA Office of Federal Activities indicating that a facility to be used in the project is .under consideration for listing by the EPA. M. It shall comply with the provisions of the National Environmental Policy Act of 1969, (P.L. 91-190) and Executive Order 11514, as amended by Executive Order 11991, which promotes efforts to prevent or eliminate damage to the environment and biosphere and requires an Environmental Impact Statement when plans and programs may affect the quality of the environment. n. It shall comply, to the extent applicable, with all the requirements of Section 114 of the Clean Air Act, as amended (42 U.S.C. 1857, et. seq., as amended by P.L. 91-604) and Section 308 of the Federal Water Pollution Control Act (33 U.S.C. 1251 et. seq., as amended by P.L. 92-500), respectively, relating to inspection, monitoring, entry, reports, and information, as well as other requirements specified in Section 114 and Section 308 of the Air Act and the Water Act, respectively, and all regulations and guidelines issued thereunder. o. It will comply with the provisions of Executive Order 11288, relating to the prevention, control and abatement of water pollution. p. It shall assist FWS in its compliance with Section 106 of the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470), Executive Order 11593, and the Archaeological and Historic Preservation Act of 1966 (16 .U.S.C. 469a-1 et. seq.) by (i) consulting with the State Historic Preservation Officer on the conduct of investigations, as necessary, to identify properties listed in or eligible for inclusion in the National Register of Historic Places that are subject to adverse effects (see 36 CFR Part 800.8) by the activity; and notifying FWS of the existence of any such properties, and by (b) complying with all requirements established by FWS to avoid or mitigate adverse effects upon such, properties. q. -It shall comply with the provisions of the Cargo Preference Act of 1958 (46 U.S.C. 1241(b)(1)) as it relates to ensuring fair and reasonable participation by privately owned U.S. Flag commercial vessels in transporting cargos and the requirement of the International Air Transportation Fair Competitive Practices Act of 1974 (49 U.S.C. 11596) for preferential use of U.S. • Flag air carriers for the international transportation of persons, personal effects and other cargo. 48 r. It shall comply with the provisions of Section 176 (c) of the -Clean Air • Act (42 U.S.C. 7401, et seq.) to assure that Federal assistance activities do not detrimentally affect State efforts to attain and maintain the national ambient air quality standards and protect air quality cleaner than the standards. S. It shall comply with the provisions of the Endangered. Species Act of 1973, as amended (16 U.S.C. 1531, et. seq.) to assure that Federal assistance activities are not likely to jeopardize the continued existence of any endangered or threatened species or result in the destruction or adverse modification of critical habitat of such species. 0 t. It shall comply with the provisions of,the Marine Mammal Protection Act of 1972, as amended (16 U.S.C. 1361, et. seq.) as it relates to restriction on the taking and use of marine mammals. u.' It shall comply with the requirements of the Laboratory Animal Welfare Act of 1966, as amended (7 U.S.C. 2131, et. seq.) and the regulations promulgated by the U.S. Department of Agriculture pertaining to the care, handling and treatment of warm-blooded animals held or used for research, teaching or other activities supported by Federal funds. V. It shall comply with the requirements of the Federal Insecticide, Fungicide and Rodenticide Act, as amended (7 U.S.C. 135, et. seq.) as it relates to the application of any pesticide. W. It shall comply with the requirements of the National Research Act of 1974, as amended [42 U.S.C. 289 (1)(3)] and regulations issued by the U.S. Department of Health and Human Services (45 CFR, Part 46) as they relate to safeguarding the rights and welfare of any human subjects involved in research, development and related activities supported by Federal assistance funding. X. It shall comply with the requirements of the Privacy Act of 1974 [5 U.S.C. 552(a)], OMB Circular A-108 and the Freedom of Information Act (5 U.S.C. 552) as amended, as they relate to the design, development or operation of any system of records on individuals performed by the Federal assistance recipient or subrecipient involving the performance of the government function, including the collection, use, and dissemination of records. y. It shall comply with the provisions of Executive Order 12372, as implemented by Department of Interior regulations [43 CFR Part 9; 48 FR 29224, June 24, 1983] as they relate to Intergovernmental Review of Federal Programs. Z. It shall comply with all requirements imposed by a Federal agency concerning special requirements of law, program requirements, and other administrative requirements approved in accordance with applicable OMB Circulars. [The following additional administrative provisions and recipient assurances are applicable to assistance agreements with State and local governments.] aa. It shall comply with the provisions of the Hatch Political Act of 1940 (5 U.S.C. 1501) which limits the political activity of State and local government employees whose salaries are paid from Federal assistance funds. 49 bb. It shall comply with the requirements_ of the Coastal Tone Management • Act of 1972, as amended (16 U.S:C..1451 et. seq.) to assure -that Federal assistance activities are consistent with Federally- approved State coastal management programs designed to preserve, protect, develop and, where possible,. restore or enhance the nation's coastal resources. [The following additional administration provisions and recipient assurances are applicable to assistance agreements involving construction and improvements.] cc. It will have sufficient funds available to meet the non -Federal share of the cost for construction projects. Sufficient funds will be available when construction is completed to assure effective operation and maintenance of the facility for the purposes constructed. dd. It will require the facility to be designed to comply with the "American Standard Specializations for making Buildings and Facilities Accessible to, and Usable by, the Physically Handicapped," Number A111.1-1961, as modified, (41 GFR 101-19.603). The applicant will be responsible for conducting inspections to insure compliance with these specifications by the contractor. ee. It will obtain approval by FWS of the final working drawings and specifications before the project is advertised or placed on the market for bidding; that it will construct the project, or cause it to be constructed, to final completion in accordance with the application and approved plans and specifications; that it will submit to FWS for prior approval changes that alter the costs of the project, use of space, or functional layout;' that it will not enter into a construction contract(s) for the project or undertake other activities until the conditions of the construction grant.program(s) have been met. €f. It will cause work on the project to be commenced within a reasonable time after receipt of notification from FWS that funds have been approved and that the project will be prosecuted to completion with reasonable diligence. gg. It will dispose of or encumber its title or other interests in the site and facilitate during the period of Federal interest or while the Government holds bonds, whichever is the longer. hh. It will provide and maintain competent and adequate architectural engineering supervision and inspection at the construction site to insure that the completed work conforms with the approved plans and specifications; that it will furnish progress reports and such other information as FWS may require. ii. It will operate and maintain the facility in accordance with the minimum standards as may be required or prescribed by the applicable Federal, State and local agencies for the maintenance and operation of such facilities. JJ. It shall assist in compliance with Executive Order 11988, Flood Plain Management which requires avoidance, to the extent possible, of the long -and - short -term adverse impacts associated with the occupancy and modification of flood plains and to avoid the direct or indirect support of flood plain development whenever there is a practicable alternative. 50 0 Ak. It shall assist in compliance with Executive Order 11990, "Protection of Wetlands" which requires mimizing the destruction, nhance their natural loss or and be efecialavaluesf wetlands and efforts to preserveande 23. ORDER OF PRECEDENCE " [This clause shall- be applicable to all assistance agreements] In. the event of any inconsistency between any provisions of this agreement, the following order of precedence shall apply: a. Statement of Work (excluding the recipient's proposal, if incorporated). b. Special Provisions. c. General Provisions. d. Recipient's Proposal (if incorporated). 24. FFIC ALS OTT BENEFI No member of or delegate to Congress, or resident commissioner, arising from be admitted to any share or part of this contract, Y it it. However, this made clause th an rpopration this for thecontract corporation's extent general this contract is m benefit. 25. COVENANT AGAINST CONTINGENT FEES (a) The Contractor warrants that no person or agency has been employed or retained to solicit or obtain this contract upon an agreement or understanding for a contingent fee, except a bona fide employee or agency. For breach or violation of this warranty, the Government shall have the right to h annul this rice contract o stout ideration lior otherwise recover, in its ithe fullto educt amountrom of the Contract price the contingent fee. (b) "Bona fide agency," as used in this clause, means an established commercial or selling agency, maintained by a contractor for the purpose of securing business, that neither exerts nor proposes to exert improper influence to solicit or obtain Government contracts nor holds itself out as being able to obtain any Government contract or contracts through improper influence. "Bona fide employee," as used in this clause, means a" person, employed by a Contractor and subject to the Contractor's supervision and control as to time, place, -and manner of performance, who neither exerts nor proposes to exert improper tuoence obtain to sanycGovernmentit or i contract or contracts n Government contracts nor holds out as bung through improper influence. 51 • "Contingent fee," as used in this clause, means any commission, percentage, brokerage, or other fee that is contingent upon the success that a person or concern has in securing a Government contract. "Improper influence," as used in this clause, means any influence that induces or tends to induce a Government employee or officer to give consideration or to act regarding a Government contract on any basis other than the merits of the matter. 26. LIMITATION ON PAYMENTS TO INFLUENCE CERTAIN FEDERAL TRANSACTIONS (a) Definitions. "Agency," as used in this clause means executive agency as defined in 2.101. "Covered Federal action," as used in this clause, means any of the following Federal actions: (a) The awarding of any Federal contract. (b) The making of any Federal grant. (c) The making of any Federal loan. (d) The entering into of any cooperative agreement. (e) The extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. "Indian tribe" and "tribal organization," as used in this clause, have the meaning provided in section 4 of the Indian Self - Determination and Education Assistance Act (25 U.S.C. 4508) and include Alaskan Natives. "Influencing or attempting to influence," as used in this clause, means making, with the intent to influence, any communication to or appearance before an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with any covered Federal action. "Local government," as used in this clause, means a unit of government in a State and, if chartered, established, or otherwise recognized by a State for the performance of a governmental duty, including a local public authority, a' special district, an intrastate district, a council- of governments, a sponsor group representative organization, and any other instrumentality of a local government. "Officer or employee of an agency," as used in this clause, includes the following individuals who are employed by an agency: (a) An individual who is appointed to a position in the Government under title 5, United States Code, including a position under a temporary appointment. (b) A member of the uniformed services, as defined in subsection 101(3), title 37, United States Code. (c) A special Government employee, as defined in section 202, title 18, United States Code. 52 10 (d) An individual' who is a member of a Federal advisory committee, as defined by the Federal Advisory Committee Act, title 5, United States Code, appendix 2. "Person," as used in this clause, meansartnn individual,corporation, i company, association, authority, firm, p society, y, ora local government, regardless of whether such entity is operated for profit, or not for profit. This term excludes an Indian tribe, tribal organization, or any other Indian organization with respect to expenditures specifically permitted by other Federal law. "Reasonable compensation," as used in this clause, means, with respect to a regularly employed officer or employee of any person, compensation that is consistent with the normal compensation for such officer or employee for work that is not furnished to, not funded by, or not furnished in cooperation with the Federal Government. "Reasonable payment," as used in this clause, means, with respect to professional and other technical services, a payment in an amount that 'is consistent with the amount normally paid for such services in the private sector. "Recipient," as used in this clause, includes the Contractor and all subcontractors. This term excludes an Indian tribe, tribal organization, or any other Indian organization with respect to expenditures specifically permitted by other Federal law. "Regularly employed," as used in this clause, means, with respect to an officer or employee of a person requesting or receiving a Federal contract, an officer or employee who is employed by such person for at least 130 working days within 1 year immediately preceding the date of the submission that initiates agency consideration of such person for receipt of such contract. An officer or employee who is employed by such person for less than 130 working days within 1 year immediately preceding the date of the submission that initiates agency consideration of such person shall be considered to be regularly employed as soon as he or she is employed by such person for 130 working days. "State," as used in this clause, means a State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, a territory or possession of the United States, an agency or instrumentality of a State, and multi -State, regional, or interstate entity having governmental duties and powers. (b) Prohibitions. (1) Section 1352 of title 31, United States Code, among other things, prohibits a.recipient of a Federalcontract, funds to loan, or cooperative agreement from using appropriated o pay any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with any of the following covered Federal actions: the awarding of any Federal contract; the making of any Federal grant; the making of any Federal loan; the entering into of any cooperative agreement; or the modification of any Federal contract, grant, loan, or cooperative agreement. 53 • (2). The Act also requires Contractors to furnish a disclosure if any funds other than Federal appropriated funds (including profit or fee received under a covered Federal transaction) have been paid, or will be paid, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with a Federal contract, grant, loan, or cooperative agreement. (3) The prohibitions of the Act do not apply under the following conditions: (i) Agency and legislative liaison by own employees. (A) The prohibition on the use of appropriated funds, in subparagraph (b)(1) of this clause, does not apply. in the case of a payment of reasonable compensation made :to an officer or employee of a person requesting or receiving a covered Federal action if the payment is for .agency and legislative liaison activities not directly related to a covered Federal action.' (B) For purposes of subdivision (b)(3)(i)(A) of this clause, providing any information specifically requested by an agency or Congress is permitted at any time. (C). The following agency and legislative liaison activities are permitted at any time where they are not related to a specific solicitation for any covered Federal action: (1) Discussing with an agency the qualities and characteristics (including individual demonstrations) of the person's products or services, conditions or terms of sale, and service capabilities. (2) Technical discussions and other activities regarding the application or adaptation of the person's products or services for an agency's use. (D) The following agency and legislative liaison activities are permitted where they are prior to formal solicitation of any covered Federal action - (1) Providing any information not specifically requested but necessary for an agency to make an informed decision about initiation of a covered Federal action; . (2) Technical discussions regarding the preparation of an unsolicited proposal prior to its official submission; and 54 • (3) capability presentations by persons seeking awards from an agency pursuant to the provisions of the Small Business Act, as amended by Pub. L. 95-507, and subsequent amendments. (E) Only those se3v ices ofpthisrepermitted sclause aauhorized e subdivision (b)( )( )( ) under this clause. Professional and technical services. (A) The prohibition on the use of appropriated funds, in subparagraph (b)(1) of this clause, does not apply in the case of - (1) A payment of reasonable compensation made to an officer or employee of a person, requesting or receiving a covered Federal action or an extension, continuation, renewal, amendment, or modification of "a covered Federal action, if payment is for professional or technical services rendered directly in the preparation, submission, or negotiation of any bid, proposal, or application for that Federal action or for meeting requirements imposed by or pursuant to law as a condition for receiving that Federal action. (2) Any reasonable payment to a person, other than an officer or employee of - a person requesting or receiving a covered Federal action or an extension, continuation, renewal, amendment, or modification of a covered Federal action if the payment is for professional or technical services rendered directly in the preparation, submission, or negotiation of any bid, proposal, or application for that Federal action or for meeting requirements imposed by or pursuant to law as a condition for receiving that Federal action. Persons other than officers or employees of a person requesting or receiving a covered Federal action include consultants and trade associations. (B) For purposes of subdivision (b)(3)(ii)(A) of this clause,"professional and technical services" shall be limited to advice and analysis directly applying any professional or technical discipline. For example, drafting of a legal document accompanying a bid or proposal by a lawyer is allowable. Similarly, technical advice • provided by an engineer on the performance or operational capability of a piece of equipment rendered directly in the negotiation of a contract is allowable. However, communications with the intent to influence made by a 55 professional (such as a licensed lawyer) or a technical person (such as a licensed accountant) are not allowable under this section unless they provide' advice and analysis directly applying their professional or technical expertise and unless the advice or analysis is rendered directly and solely in the preparation, submission or negotiation of a covered Federal action. Thus, for example, communications with the intent to influence made by a lawyer that do not provide legal advice or analysis directly and solely related to the legal aspects of his or her clients a proposal, but generally advocate one proposal over another are not allowable, under this section because the lawyer is not providing professional legal services. Similarly, communications with the intent to influence made by an engineer providing an engineering analysis prior to the preparation or submission of a bid or proposal are not allowable under this section since the engineer is providing technical services but not directly in the preparation, submission or negotiation of a covered Federal action. (C) Requirements imposed by or pursuant to law as a condition for receiving a covered Federal award include those required by law or regulation and any other requirements in the actual award documents. (0) Only those services expressly authorized by subdivisions (b)(3)(ii)(A)(1) and (2) of this clause are permitted under this clause. (E) The reporting requirements of FAR 3.803(a) shall not apply with respect to payments of reasonable compensation made to regularly employed officers or employees of a person. (iii) Disclosure. (A) The Contractor who requests or receives from an agency a Federal contract shall file with that agency a disclosure form, OMB standard form LLL, Disclosure of Lobbying Activities, if such person has made or has agreed to make any payment using nonappropriated funds (to include profits from any covered Federal action), which would be prohibited under subparagraph (b)(1) of this clause,•if paid for with appropriated funds. • (B) The Contractor shall file a disclosure form at the end of each calendar quarter in which there occurs any event that materially affects the accuracy of the information contained in any disclosure form previously filed by such person under subparagraph (c)(1) of this clause. An 56 (1) A cumulative increase of 525,000 or more in • the amount paid or expected to be paid for influencing or attempting to influe7tce a covered Federal action; or (2) A change in the person(s) or individual(s) influencing or attempting to influence a covered Federal action; or (3) A change in the officer(s), employee(s), or Member(s) contacted to influence or attempt to influence a covered Federal action. (C) The Contractor shall require the submittal of a certification, and if required, a disclosure form by any person who requests or received any subcontract exceeding $100,000 under the Federal contract. (D) All subcontractor disclosure forms (but not certifications) shall be forwarded -from tier to tier until received by the prime Contractor. The prime Contractor shall submit all disclosures to the Contracting Officer at the end of the calendar quarter in which the disclosure form is submitted by the subcontractor. Each subcontractor certification shall be retained in the subcontract file of the awarding Contractor. (iv) Agreement. The Contractor agrees not to make any payment prohibited by this clause. (v) Penalties. (A) Any person who makes an expenditure prohibited under paragraph (a) of this clause or who fails to file or amend the disclosure form to be filed or amended by paragraph (b) of this clause shall be subject to civil penalties as provided for by • 31 U.S.C. 1352. An imposition of a civil penalty does not prevent the Government from seeking any other remedy that may be applicable. (B) Contractors may rely without liability on the representation made by their subcontractors in the certification and disclosure form. (vi) Cost allowability. Nothing in this clause makes allowable or reasonable any costs which would otherwise be unallowable or unreasonable. Conversely, costs made specifically unallowable by the requirements in this clause will not be made allowable • under any other provision. (END OF CLAUSE) 57. 14-48-0002- - ATTACHMENT B— CERTIFICATIONS APPLICABLE TO FEDERAL GRANTS AND COOPERATIVE AGREEMENTS All of the following certifications concern a matter within the jurisdiction of an agency of the United States Government and the making of a false, fictitious, or fraudulent certification, in addition to other remedies available to the Federal Government, may result in cancellation of Federal sponsorship and may be cause for reimbursement in whole or in part of Federal funds paid to the recipient. An officer or employee of the recipient responsible for this Agreement shall certify, to the best of his or her knowledge and belief that: 1. Certification Regarding Proposal Submission This Agreement is for the support and stimulation of the recipient's project; that the request for Financial assistance and the related proposal have not been submitted in response to a request from the Government to undertake work to support a specific Government project; and that the proposal has been prepared without the assistance and/or input of Federal personnel except -as -noted'. (When necessary, attach an explanation of the extent of assistance or input received from Federal personnel in the preparation of the proposal). 2. Certification_ Regarding -Conflict _of_Interest There are no relevant facts. or circumstances which could give rise to either an individual or organizational conflict of interest. Such conflict of interest could involve such things as Government employees being associated with or a member of the requesting organization and being in a position to influence the awarding of a grant or cooperative agreement.The recipient agrees that if an actual or potential conflict of interest is discovered the recipient shall make a full disclosure in writing to the Contracting Officer. This disclosure shall include a description of actions which the recipient has taken or proposes to take, after consultation with the Contracting Officer, to avoid, mitigate or neutralize the actual or potential conflict. 3. (a) No Federal appropriated funds have been paid or will be paid, by or on behalf of'the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a • Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any. Federal contract, the making of any Federal grant, the 1 3 making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. (b) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, or Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Farm -LLL, "Disclosure Form to Report Lobbying,".in accordance with its instructions. (c) The - undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. (d) This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to A ciwil.•penalty of not less than $10,000 and not more than $100,000 for each such failure. Appendix 2 for Instructions The prospective primary participant certifies to the best of its knowledge and belief, that it and its principals: (a) Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any Federal department or agency; (b) Have not within a three-year period preceding this proposal been convicted of or had a civil judgement rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property;, (c) Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State, or local) with commission of any of the offenses enumerated in paragraph (b) of this certification; and 2 5. (d) Have not within a three-year period preceding this application/proposal had one or more public transactions (Federal,State, or local) terminated for cause or default. (e) Where the prospective primary participant is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to their proposal. The prospective lower tier participant certifies to the best of its knowledge and belief that it and its principals: (a) By the submission of their proposal, that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department or agency. (b) Where the prospective lower tier participant is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to their proposal. 6. Certification Regarding Drug -Free Workplace Requirements Instructions for Certification (a) By signing and/or submitting this application or grant agreement, the grantee is providing the certification set out below. (b) The certification set out below is a material representation of fact upon which reliance was placed when the agency determined to award the grant. If it is later determined that the grantee knowingly rendered a false certification or otherwise violates the requirements of the Drug -Free Workplace Act, the agency, in addition to any other remedies available to the Federal Government, may take action authorized under the Drug -Free Workplace Act. (c) For grantees other than individuals, Alternate I applies. (d) For grantees who are individuals, Alternate II applies. Certification Regarding Drug -Free Workplace Requirements Alternate I 40 A. The grantee certifies that it will provide a drug-free workplace by: 3 (a) Publishing.a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession or use of a controlled substance is prohibited in the grantee's workplace and specifying the actions that will be taken against - employees for violation of such prohibition; (b) Establishing a drug-free awareness program to inform employees about: (1) The dangers of drug abuse in the workplace, (2) The grantee's policy of maintaining a drug-free workplace, (3) Any available drug counseling, rehabilitation, and employee assistance programs, and (4) The .penalties that may be imposed upon employees for drug abuse violation occurring in the workplace; (c) Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph (a); (d) Notifying the employee In, "the 'statement required by paragraph (a) that, as a condition of employment under the grant, the employee will: (1) Abide by the terms of the statement, and (2) Notify the employer of any criminal drug statute conviction for a. violation occurring in the workplace no later than five days after such conviction, (e) Notifying the agency within ten days after receiving notice under subparagraph (d)(2) from an employee otherwise receiving actual notice of such conviction, (f) Taking one of the following actions, within 30 days of receiving notice under subparagraph (d)(2), with respect to any employee who is so convicted: (1) Taking appropriate personnel action against such an employee, up to and including termination; or (2) Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency; (g) Making a good faith effort to continue to maintain a drug- free workplace through implementation of paragraphs (a), (b), (c), (d), (e) and (f). 4 �I B. The grantee shall insert in the space provided below the site(s) for the performance of work done in connection with the specific grant: Place of Performance (Street address, city, county, state, zip code) 2. (Street address) (City and County) (State and Zip Code) Alternate II. The Grantee certifies that as a condition of the grant, he or she will not engage in the unlawful manufacture,....distribution, dispensing, possession or use of a controlled-subsfarice in*conducting any activity with the Grant. The undersigned certifies that he/she has read the above and has/will take any and all actions necessary to comply with the certifications. (Name of Authorized Representative) (Title) (Signature) (Date) • 5 APPENDIX 1 DISCLOSURE OF LOBBYING ACTIVITIES " pravvdb'O, 0348-00" Complete this form to disclose lobbying activities pursuant to 31 U.S.C. 1352 (See reverse for public burden disclosure.) Type of Federal Action_ 2 Status of Federal Action: 3. Report Type. a. contract b. ❑ a. bidfoffer/application ❑ a. initial filing grant cooperative agreement b. initial award b. material change l d. o c, post -award For Material Change OnIJr. e. loan guarantee year quarter f. loan insurance date of last report 4. Name and Address of Reporting Entity: S. If Reporting Entity in No. 4 is Subawardee, Enter Name C3 Prime ❑ Subawardee and Address of Prime: Tier. ; if known: Congressional District. if known: Congressional District, if known: &. Federal Department/Agency. 7. Federal Program Name(Description: CFDA Number, if applicable: $. Federal Action Number, if known: 9. Award Amount. if known: $ 10. a. Name and Address of Lobbying Enu b. lndividuals.4erfacmin Services (including address if (if individual, last name, fast name, 1): different from Na ION (fast name. Arst name, Mfr tafrach eandnr anon i(sISF-M-Ailaccessarfo esra 11. Amount of Payment (check all that apply): 13. Type of Payment (check all that apply): S ❑ actual ❑ planned ❑ a. retainer ❑ b. one-time fee 12 Form of Payment (check all that apply): ❑ c. commission p a. cash ❑ d. contingent fee ❑ b. in-kind; specify:' nature ❑ e. deferred value ❑ f- other, specify: 14. Brief Description of Services Performed or to be Performed and Date(s) of Service, including officer(s). employee(s). or Members) contacted. for Payment Indicated in (tem 11: attach Continmaden Sheelftp Sf-LLL-A if necerra 1S. Continuation Sheet(s) SF -CLL A attached: ❑ Yes O No k4mmation «puesud dwwgh d%ia foae it saha&W br tide 11 U.S.C. section 1351 Ibis ditdea4ro d k6bf+o[ wtmtias :t a ,N,,e" mpremnution Signature.- -W Out Lpon w.h:dt tafim a w.a p"ced by the liir abow whon th.s ltawaa"W" Was wu16 W one- W :.w This ditdouro i #WRUiw! PWr.ant to Print Name. 11 LLiC 1751 This 66mmmtion MM be nppnad 10 dw Caegmr< wati- ba Title: anw&&r and -4 4-4464 for p.bGc ntpeomL i4W.p - who rya to Q* dw RMP"d dado.uw " d0 uA4* t to a sial P.odry of rat trta ducat sMAN and n« om.e Wao s XKMM far eadt mah carne. Telephone No.: Date; R:M ".•-!^yx%n 'J.•-'. �oK'iS.5 _. ,_..ryif'••'f 4v.3y,'..w 4. DISCLOSURE OF LOBBYING ACTIVITIES Apar-odbyoma CONTINUATION SHEET 014&0046 cporting Entity: page of j t a A• Audsorix" IOt toe_a Reprodu�t[on SEWW" d rwm - U1 -A INSTRUCTIONS FOR COMPLETION OF SF -LLL, DISCLOSURE OF LOBBYING ACTIYTTIES This disclosure form shall be completed by the reporting entity, whether subawardee or prime Federal recipient, at the rtratron or receipt of'a covered Federal action, or a material change to a previous filing, pursuant to title 31 U.S.C. ection 1352. The filing of a form is required for each payment or agreement to make payment to any lobbying entity for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer of - employee of Congress, or an employee of a Mernber of Congress in connection with a covered Federal action. Use the SF-U.L A Continuation Sheet for additional information if the space on the form is inadequate. Complete all items that apply for both the initial [fling aitd material lunge report. Refer to the implementing guidance published by the Office*of Management and Budget for additional information. 1. Identify the type of covered Federal action for which lobbying activity is andlor has been secured to influence the outcome of a covered Federal action. 2. Identify the status of the covered Federal action. 3. Identify the appropriate classification of this report. If this is a followup report Bused by a material change to the information previously reported, enter the year and quarter in which the change occurred. Enter the date of the last previously submitted report by this reporting entity for this covered Federal action. 4. Enter the full name, address, city, state and zip code of the reporting entity. Include Congressional District, if known. Check the appropriate classification of the reporting entity that designates if it is, or expects to be, a prime or subaward recipient. identify the tier of the subawardee, e.g., the first subawardee of the prime is the 1st tier. Subawards include but are not limited to subcontracts, subgrants and contract awards under grants. S. If the organization filing the report in item 4 checks "Subawardee", then enter the* full name, address, city, state and zip code of the prime Federal recipient. Include Congressional District„ if known. 6. Enter the name of the Federal agency making the award or loan commitment. Include at least one organizational level below agency name, if known. For example, Department of Transportation, United States Coast Guard. 7. Enter the Federal program name or description for the covered Federal action (item 1). If known, enter the full Catalog of Federal Domestic Assistance (CFDA) number for grants, .cooperative agreements, loans, and loan commitment. B. Enter the most appropriate Federal identifying number available for the Federal action identified in item 1 (e.g., Request for Proposal (RFP) number, Invitation for Bid (IFB) number, grant announcement number, the contract, get. or loan award number, the applicadocvproposal control number assigned by the Federal agency). Include prefixes, e.g., ORFP-DE-90-041.0 9. For a covered Federal action where there has been an award or loan commitment by the Federal agency, enter the — Federal amount of the awarddoan commitment for the prime entity identified in item 4 or S. M. (a) Enter the full name, address, city, state and rip code of the lobbying entity engaged by the reporting entity identified in item 4 to influence the covered Federal action. (b)Enter the full names of the indivfdual(s) performing services, and include full address if different from 10 (a). Enter Last Name, First Name, and Middle Initial (MI). 11.'Enter the amount of compensation paid or reasonably expected to be paid by the reporting entity (item 4) to the lobbying entity (item 10). Indicate whether the payment has been made (actual) or will be made (planned). Check all boxes that apply. If this is a material change report enter the cumulative amount of payment made or planned to be made. 12. Check the appropriate box(es). Check all boxes that apply. if payment is mads through an in-kind contribution, specify the nature and value of the in-kind payment. 13- Check the appropriate box(es). Check all boxes that apply. if other, specify nature. 14. Provide a specific and detailed description of the services that the Iobbyist has performed, or w11 be expected to perform, and the date(s) of arty services rendered. include all preparatory and related activity, not just time spent in actual contact with Federal officials. Identify the Federal offidal(s) or employee(s) contacted or the officer(s), employee(s), or Member(s) of Congress that were contacted. 15. Check whether or not a SF -ILL -A Continuation Sheet(s) is attached. 16. The certifying official shall sign and date the form, print hislher name, title, and telephone number. PuWie reporting twnien for this collection of information is estimated to average 30 nhintues per response. including time for reviewing imstn"Gm start "existing daft sources, gathering and maintaining the data needed, and cumpteting and reviewing the collection of information. Send corwnents reg3r&'5 the burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden. to the Office of Muhagenumt and Budget Paperwork Reduction Project (034&0046), wsshinxtom D.C. 20503. APPENDIX 2 '1' f:' 1'4: •'41 17.'' � MENEM 1. By signing and submitting this proposal, the prospective participant is providing the certification set out below. 2. The inability of a person to provide the certification required below will not necessarily result in denial of participation in this covered transaction. The prospective participant shall submit an explanation of why it cannot provide the certification set out below. The certification or explanation will be considered in connection with the department or agexy,s determination whether to enter into this transaction. However; failure of the prospective participant to furnish a certification or an explanation shall disqualify such a person from participation in this transaction. 3. The certification in this clause is a material representation of fact upon which reliance was placed when the deparimt or agency determined to enter into this transaction. If it is later determined that the prospective participant knowingly Yendered an erroneous certification, in addition to other mredies available to the Federal Goverment, the department or agency may terminate this transaction for cause of default. 4. The prospective participant shall provide immediate written notice to the department or agency to wham this proposal is submitted if at any time the prospective participant learns that its certification was erroneous when submitted or -has become erroneous by reason of changed circumstances. 5. The terms "covered transaction," "debarred," "suspended," "ineligible," "lower tier covered transaction," "participant," "person," "primary covered transaction," "principal," "proposal," and "voluntarily excluded," as used in this clause, have -the mwdngs set out in the Winitions and Coverage sections of the rules inplementing Executive Order 12549. You may contact the department or agency to which this proposal is being submitted for assistance in obtaining a copy of those regulations. 6. The prospective participant agrees by submitting this proposal that, should the proposed oxered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency entering into this transaction. 7. The prospective participant further agrees by submitting this proposal, that it will include the clause titled "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion -Lower Tier Covered Transaction," provided by the department or agency entering into this covered transaction, without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions. 8. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that it is not debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant may decide the method and frequency by which it determines the eligibility of its principals. Each participant may, but is not required to, check the Nonprocurement List. 9. Nothing contained in the foregoing shall be construed to mire establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings. 10. Except for transactions authorized under paragraph 6 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency may terminate this transaction for cause or default.