Appendix H to Part 1138 - Terms and Conditions for SUB Article VIII, “Other Administrative Requirements for Subawards”
2:1.2.8.6.18.12.64.3.63 : Appendix H
Appendix H to Part 1138 - Terms and Conditions for SUB Article
VIII, “Other Administrative Requirements for Subawards”
Unless modified as provided in § 1138.5, a DoD Component's
general terms and conditions must use the following wording for SUB
Article VIII, as specified in § 1138.805, but may add a section(s),
as appropriate.
SUB Article VIII. Other Administrative Requirements for Subawards.
(DECEMBER 2014)
Section A. Purposes of this article in relation to other
articles.
1. This article specifies other administrative requirements that
you either must or should include in the terms and conditions of
each cost-type subaward that you make under this award.
2. It thereby addresses the flow down to subrecipients of
requirements with which you must comply under OAR Articles I
through VII of this award.
3. SUB Article XII of this award addresses which of these
administrative requirements you must include in any fixed-amount
subaward that you make, if you are authorized to make fixed-amount
subawards under this award.
Section B. Submission and maintenance of subrecipient
information. You must include the substance of the provision in
Section C of OAR Article I in any subaward you make under this
award. The provision must require the subrecipient's disclosure of
any evidence directly to the Inspector General, DoD.
Section C. Records retention and access. In each subaward
you make under this award:
1. If the subaward is to an institution of higher education,
nonprofit organization, State, local government, or Indian
tribe:
a. You must include the requirements of Section A of OAR Article
II with the additional condition that, for any subrecipient under
this award that does not have a federally approved rate for
indirect or facilities and administrative costs and that does not
use the de minimis rate described in 2 CFR 200.414(f), you
must:
i. Require the subrecipient to keep records that support its
indirect or facilities and administrative costs charged to the
subaward for 3 years from the end of the fiscal year (or other
accounting period) to which the costs apply; and
ii. Keep any plan or computation the subrecipient submits to you
to serve as a basis for your determining the reasonableness and
allowability of indirect or facilities and administrative costs of
the subaward, for 3 years from the end of the fiscal year (or other
accounting period) to which the proposal, plan, or computation
applies.
b. You must include the requirements of Sections B, C, and F of
OAR Article II.
c. You must include provisions that enable you to comply with
the requirements of Section D of OAR Article II concerning records
for joint or long-term use.
d. You must include provisions that establish the same rights
and responsibilities for the subrecipient under the subaward that
Section E of OAR Article II establishes for you under this
award.
e. You may not impose any other record retention or access
requirements on the subrecipient.
2. If the subaward is to a for-profit entity, you must include
the records retention and access provisions of 32 CFR 34.42.
Section D. Remedies and termination. The terms and
conditions of each subaward you make under this award should
specify your rights and responsibilities and those of the
subrecipient if you take a remedial action to address a
subrecipient's noncompliance with an applicable Federal statute or
regulation or the terms and conditions of your subaward. Each
subaward's terms and conditions should:
1. Identify remedial actions you may take to address the
subrecipient's noncompliance. Available remedies are described
in:
a. OMB guidance in 2 CFR 200.338 for a subaward to an
institution of higher education, nonprofit organization, State,
local government, or Indian tribe; and
b. 32 CFR 34.52 for a subaward to a for-profit entity.
2. With respect to termination specifically:
a. Identify conditions under which you, the subrecipient, or
both (by mutual agreement) may terminate the subaward, in whole or
in part, as described in:
i. OMB guidance in 2 CFR 200.339(a) for a subaward to an
institution of higher education, nonprofit organization, State,
local government, or Indian tribe; and
ii. 32 CFR 34.51 for a subaward to a for-profit entity.
b. Inform the subrecipient that you will provide it with a
notice of termination if you unilaterally terminate the award.
c. Specify that you and the subrecipient remain responsible for
applicable requirements addressed in Sections G and H of this
article concerning closeout, post-closeout adjustments, and
continuing responsibilities.
3. With respect to either suspension or termination of the
subaward, inform the subrecipient about the criteria that you will
use to either allow or disallow subaward costs, which are in:
a. Section D of OAR Article III for a subaward to an institution
of higher education, nonprofit organization, State, local
government, or Indian tribe; and
b. 32 CFR 34.52(c) for a subaward to a for-profit entity.
Section E. Disputes, hearings, and appeals. Each
subaward's terms and conditions should specify any rights the
subrecipient has to a hearing, appeal, or other administrative
proceeding if it disputes a decision you render in administering
its subaward. You must comply with any statute or regulation that
affords the subrecipient an opportunity for a hearing, appeal, or
other administrative proceeding and is applicable to the
dispute.
Section F. Collection of amounts due. Although your
subaward terms and conditions do not need to include any of the
requirements of OAR Article V because those requirements do not
flow down to subrecipients, you should consider including
provisions to specify what you would need from the subrecipient if
you owed a debt to the Federal Government under this award that is
related to its subaward.
Section G. Closeout.
1. In each subaward that you make to an institution of higher
education, nonprofit organization, State, local government, or
Indian tribe, you must include provisions to require the
subrecipient to:
a. Liquidate all obligations that it incurred under the subaward
not later than 90 calendar days after the end date of the period of
performance of either the subaward or this award, whichever is
earlier, unless you grant an extension.
b. Promptly refund to you any balances of unobligated cash that
you advanced or paid to the subrecipient, unless you received
authorization from the DoD award administration office for the
subrecipient's use of those funds on other projects or
programs.
c. Submit to you:
i. Any information you need from the subrecipient to meet your
responsibilities to us for an accounting of property, under Section
D of OAR Article VI; and
ii. Not later than 90 calendar days after the end date of the
period of performance of this award, unless you grant the
subrecipient an extension, any information you need to meet your
responsibilities to us for final reports, under Section C of OAR
Article VI.
2. In each subaward that you make to a for-profit entity, you
must include the terms and conditions that you deem necessary for
you to be able to comply with the requirements in OAR Article
VI.
Section H. Post-closeout adjustments and continuing
responsibilities.
You must include provisions in each subaward to require the
subrecipient to provide what you need in order to comply with the
requirements of OAR Article VII.