Appendix C to Part 1132 - Terms and Conditions for PROC Article III, “Contract Provisions for Recipient Procurements”
2:1.2.8.6.15.3.64.4.43 : Appendix C
Appendix C to Part 1132 - Terms and Conditions for PROC Article
III, “Contract Provisions for Recipient Procurements”
Unless a DoD Component reserves one or more paragraphs of
Section B, as specified in § 1132.310, a DoD Component's general
terms and conditions must use the following wording for PROC
Article III.
PROC Article III. Contract Provisions for Recipient Procurements.
(December 2014)
Section A. Contract provisions for administrative
requirements.
1. Remedies. In any contract under this award for an
amount in excess of the simplified acquisition threshold, you must
provide for administrative, contractual, or legal remedies,
including any appropriate sanctions and penalties, when the
contractor violates or breaches the contract terms.
2. Termination. In any contract for an amount in excess
of $10,000, you must specify conditions under which you may
terminate the contract for cause or convenience; the procedures for
termination; and the basis to be used for settlement.
3. Allowable costs under cost-type contracts. In any
cost-type contract with an entity, you must include a clause to
permit the entity to charge to the contract only costs that are
allowable under the cost principles that FMS Article III identifies
as applicable to that type of entity, as supplemented by any
award-specific terms and conditions related to allowability of
costs that are included in this award. Your contract clause may
permit the contractor to use its own cost principles in determining
the allowability of its costs charged to the contract, as long as
its cost principles comply with those Federal cost principles
supplemented by any award-specific terms and conditions of this
award.
4. Rights in copyright and data. You must include in each
contract under this award a provision requiring that the
contractor:
a. Grant the Federal Government a royalty-free, nonexclusive and
irrevocable right to:
i. Reproduce, publish, or otherwise use for Federal purposes any
work that is subject to copyright and that the contractor develops,
or acquires ownership of, under this award;
ii. Authorize others to reproduce, publish, or otherwise use
such work for Federal purposes; and
b. Grant the Federal Government the right to:
i. Obtain, reproduce, publish, or otherwise use data produced
under this award;
ii. Authorize others to receive, reproduce, publish, or
otherwise use such data for Federal purposes; and
c. Include the Federal Government rights described in
subparagraphs 4.a. and 4.b. of this section in any
subcontracts.
5. Access to records.
a. In any negotiated, cost-type or time and materials contract
for an amount in excess of the simplified acquisition threshold,
you must provide for access to any of the contractor's books,
documents, papers, and records that are directly pertinent to that
contract to enable and support audits, examinations, excerpts, and
transcriptions. The contract provision must provide access to those
records for all of the following and their duly authorized
representatives:
i. You;
ii. Us as the Federal awarding agency, including our Inspector
General; and
iii. The Comptroller General of the United States.
b. In any audit services contract for performance of an audit
required by the Single Audit Act, as implemented by OMB in Subpart
F of 2 CFR part 200, you must provide for the access to audit
documentation described in 2 CFR 200.517(b).
6. Records retention.
a. In any negotiated, cost-type or time and materials contract
for an amount in excess of the simplified acquisition threshold,
you must provide for retention of all records that are directly
pertinent to that contract for 3 years after you make final payment
and all pending matters are closed.
b. In any audit services contract for performance of an audit
required by the Single Audit Act, as implemented by OMB in Subpart
F of 2 CFR part 200, you must provide for the retention of audit
documentation described in 2 CFR 200.517(a).
7. Reporting. In any contract awarded under this award,
you must include any provision for the contractor's reporting to
you that may be needed in order for you to meet your requirements
under this award to report to us.
Section B. Contract provisions for national policy
requirements.
1. Equal employment opportunity. You must include the
clause provided in 41 CFR 60-1.4(b) in any “federally assisted
construction contract” (as defined in 41 CFR 60-1.3) under this
award, unless provisions of 41 CFR part 60-1 exempt the contract
from the requirement.
2. Wage Rate Requirements (Construction), formerly the
Davis-Bacon Act. With respect to each construction contract for
more than $2,000 to be awarded using funding provided under this
award, you must:
a. Place in the solicitation under which the contract will be
awarded a copy of the current prevailing wage determination issued
by the Department of Labor;
b. Condition the decision to award the contract upon the
contractor's acceptance of that prevailing wage determination;
c. Include in the contract the clauses specified at 29 CFR
5.5(a) in Department of Labor regulations at 29 CFR part 5, “Labor
Standards Provisions Applicable to Contracts Governing Federally
Financed and Assisted Construction,” to require the contractor's
compliance with the Wage Rate Requirements (Construction), as
amended (40 U.S.C. 3141-44, 3146, and 3147); and
d. Report all suspected or reported violations to the award
administration office identified in this award.
3. Copeland Act prohibition on kickbacks. In each
contract under this award that is subject to the Wage Rate
requirements in paragraph 2 of these provisions, you must:
a. Include a provision requiring the contractor to comply with
the anti-kickback provisions of the Copeland Act (18 U.S.C. 874 and
40 U.S.C. 3145), as supplemented by Department of Labor regulations
at 29 CFR part 3, “Contractors and Subcontractors on Public
Building or Public Work Financed in Whole or in Part by Loans or
Grants from the United States.”
b. Report all suspected or reported violations to the award
administration office identified in the award notice cover sheet of
this award.
4. Contract Work Hours and Safety Standards Act for work
involving mechanics or laborers. In each contract for an amount
greater than $100,000 that involves the employment of mechanics or
laborers and is not a type of contract excepted under 40 U.S.C.
3701, you must include the clauses specified in Department of Labor
(DoL) regulations at 29 CFR 5.5(b) to require use of wage standards
that comply with the Contract Work Hours and Safety Standards Act
(40 CFR, Subtitle II, Part A, Chapter 37), as implemented by DoL at
29 CFR part 5, “Labor Standards Provisions Applicable to Contracts
Governing Federally Financed and Assisted Construction.”
5. Patents and inventions. If you procure the services of
a nonprofit organization, small business firm, or other entity for
the performance of experimental, developmental or research work,
you must include in the contract the clause prescribed in Section B
of PROP Article VI to establish contractual requirements regarding
subject inventions resulting from the contract and provide for
Federal Government rights in those inventions.
6. Clean air and water requirements. You must:
a. In each contract for an amount greater than $150,000 under
this award, include a clause requiring the contractor to comply
with applicable provisions of the Clean Air Act (42 U.S.C.
7401-7671q), Federal Water Pollution Control Act (33 U.S.C.
1251-1387), and standards, orders, or regulations issued under
those acts; and
b. Report any violations of the Acts, standards, orders, or
regulations to both the award administration office identified in
this award and the appropriate regional office of the Environmental
Protection Agency.
7. Nonprocurement suspension and debarment. Unless you
have an alternate method for requiring the contractor's compliance,
you must include a clause in each contract for an amount equal to
or greater than $25,000 for other than federally required audit
services and in each contract for federally required audit services
regardless of dollar value to require the contractor to comply with
OMB guidance on nonprocurement suspension and debarment in 2 CFR
part 180, as implemented by DoD regulations at 2 CFR part 1125.
8. Byrd Amendment anti-lobbying requirements. In each
contract for an amount exceeding $100,000, you must include a
clause requiring the contractor to submit to you the certification
and any disclosure forms regarding lobbying that are required under
31 U.S.C. 3152, as implemented by the DoD at 32 CFR part 28.
9. Purchase of recovered materials by States or political
subdivisions of States. In each contract under which the
contractor may purchase items designated in Environmental
Protection Agency (EPA) regulations in 40 CFR part 247, subpart B,
you must include a clause requiring the contractor to comply with
applicable requirements in those EPA regulations, which implement
Section 6002 of the Resource Conservation and Recovery Act of 1976,
as amended (42 U.S.C. 6962).
10. Fly America requirements. In each contract under
which funds provided under this award might be used for
international air travel for the transportation of people or
property, you must include a clause requiring the contractor
to:
a. Comply with the International Air Transportation Fair
Competitive Practices Act of 1974 (49 U.S.C. 40118, also known as
the “Fly America” Act), as implemented at 41 CFR 301-10.131 through
301-10.143. The statute and regulations provide that U.S.
Government-financed international air travel of passengers and
transportation of personal effects or property must use a U.S. Flag
air carrier or be performed under a cost-sharing arrangement with a
U.S. carrier, if such service is available; and
b. Include the requirements of the Fly America Act in all
subcontracts that might involve international air
transportation.
11. Cargo preference for United States flag vessels. In
each contract under which equipment, material, or commodities may
be shipped by oceangoing vessels, you must include the clause
specified in Department of Transportation regulations at 46 CFR
381.7(b) to require that at least 50 percent of equipment,
materials or commodities purchased or otherwise obtained with
Federal funds under this award, and transported by ocean vessel, be
transported on privately owned U.S.-flag commercial vessels, if
available.