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HomeMy WebLinkAboutResolution No. 5761RESOLUTION NO. 5761 A RESOLUTION AUTHORIZING THE SIGNING OF A LEASE OR AGREEMENT THE CITY COUNCIL OF THE CITY OF SAN RAFAEL HEREBY RESOLVES as follows: The MAYOR and CITY CLERK are authorized to execute, on behalf of the City of San Rafael a lease or agreement with the State of California, Department of Navigation and Ocean Development (Police/Fire Boat), a copy of which is hereby attached and by this reference made a part hereof. I, JEANNE M. LEONCINI, City Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of said City held on Monday, the 17th day of September 1979, by the following vote, to wit: AYES: COUNCILMEMBERS: Breiner, Miskimen & Acting Mayor Jensen NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Nixon & Mayor Mulryan ffNN-F M. LEONCINI, WTY CLERK G.' -M 1` '', l "14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 RT PAPER - or CALI/OR4U 113 1REY 8.72 asp EQUIPDIENT AND OPERATION AGREa!ENTT BOATING SAFETY AND ENFORCE?v[ENT GRANT THIS AGREEMENT is made and entered into this 23 day of July, 1979 , by and between the State Department of Boating and h'aterways and the City of San Rafael. THE FOLLOWING TERMS are defined and hereinafter referred to as follows: DEPAR714ENT - The State of California acting by and through the Department of Boating and Waterways. CITY - The City of San Rafael. FEDERAL FUNDS - Those funds appropriated by the Federal Government under the Federal Boat Safety Act of 1971. CITY FUNDS - Any funds appropriated for, or otherwise provided by CITY for operation and maintenance of patrol boat. TERM OF OPERATION - That period of time commencing on the date first herein appearing and terminating ten (10) years thereafter. PATROL BOAT-- Patrol boat and related equipment for use in boating safety and boating law enforcement. W I T N E S S E T H WHEREAS, pursuant to Section 61.4 of the Harbors and Navigation Code, the Director of DEPARTMENT, with the approval of the Director of Finance, may accept on behalf of DEPARDIENT Federal grants for the purposes for which the DEPARTMENT is established; and WHEREAS, FEDERAL FUNDS have been provided to DEPARTDTNT for the purpose of improving boating safety and law enforcement; and I 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 RT PAPER [ Of Cwl1IO-1. 113 REV 8.721 OSS WHEREAS, DEPARTNIENT finds that an improved boating safety and law enforcement program can be accomplished if funds are provided for the purpose of patrolling the navigable waters of the State; and WHEREAS, CITY is desirous of improving its boating safety and law enforcement program; and WHEREAS, DEPARDIENT and CITY desire to enter into an agreement to provide for the operation and maintenance of a PATROL BOAT. NOW, THEREFORE, in consideration of the mutual promises and covenants herein contained, the parties hereto hereby agree as follows: 1. DEPAMIE,1i T will provide CITY with PATROL BOAT to be used for boating safety and enforcement activities. 2. During TERM OF OPERATION, CITY shall, with funds available to CITY operate and maintain PATROL BOAT or cause to be operated and maintained, and DEPARTMENT shall not be held liable for the cost of said operation and maintenance, except as otherwise specified herein. Such maintenance shall include, but not be limited to, keeping PATROL BOAT - in good repair. 3. During TERM OF OPERATION, CITY shall keep complete and accurate records of all expenditures pertaining to the purchase of additional equip- ment, operation, and maintenance of PATROL BOAT and said records shall, at all reasonable times, be open and available for inspection and audit by any duly authorized official of DEPARTT�IENT. 4. CITY shall patrol during peak boating periods, and shall be available for search and rescue operations. S. CITY agrees to replace, at CITY expense, the PATROL BMT if destroyed or rendered useless by any casualty, including but not limited to, fire, theft, acts of vandalism, or other disaster, -2- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 RT PAPER Or CALIFO IINIA 113 1REV l 721 O!P whether enumerated here or not, during the TERM OF OPERATION. 6. CITY hereby certifies that the obligations created by this agreement do not violate the provisions of Sections 1090 to 1096 of the Government Code. 7. The parties hereto agree that CITY and any of its agents and employees in the performance of this agreement shall act in an independent capacity, and not as officers or employees or agents of DEPARTMENT. 8. CITY shall, insofar as allowable by law, indemnify, hold harmless, and defend DEPARTMENT and the State of California, officers, agents, and employees of either of them against any and all claims, demands, costs, expenses, or liabilities arising out of the operation and maintenance of PATROL BOAT except for liability arising out of the sole negligence of DEPARTMENT, its officers, agents, or employees, and for which DEPARTMENT is othenJise responsible. 9. CITY hereby waives all claims and recourse against the DEPARTtiIENT, including the right to contribution for loss or damage to persons or property arising from, growing out of, or in any way connected with or incident to the operation and maintenance of PATROL BOAT except claims arising from the sole negligence of DEPARTMENT, its officers, agents, or employees, and for which DEPARTMENT is otherwise legally responsible. 10. In the event DEPARTD-M and/or the State of California is named as codefendant in any legal action concerning operation and maintenance of PATROL BOAT , CITY shall notify DEPARTMENT of such fact, and shall defend DEPARTMENT in such legal action, unless DEPARTMENT undertakes to represent itself, in which event DEPARTIvEN T shall bear its own litigation costs, expenses, and attorney's.fees. -3- 1 2 3 4 5 6 71 81 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 +RT PAPER Or CALIFORNIA 113 1REV B•72, asp 11. During TERM OF OPERATION, the DEPARTMENT shall be the legal oivner of PATROL BOAT and CITY shall be the registered ouner, interest herein or hereunder shall not be assigned, mortgaged, hypothecated, or transferred, either by CITY or by operation of lai\r, without prior written approval of DEPARDIENT. 12. During TERM OF OPERATION, this agreement, at the option of DEPARTMENT, may be terminated by DEPARTMENT for the material breach by CITY of any of the terms herein. Such termination shall become effective NINETY (90) days following date of written notification by DEPARTENT to CITY as provided in paragraph 18 herein. 13. During TERM OF OPERATION, this agreement, at the option of DEPARTti1ENT, may be terminated immediately if the legislative body of CITY fails to appropriate funds necessary for compliance with terms of this contract. 14. During TERM OF OPERATION, this agreement, at the option of CITY may be terminated -by CITY for the material breach by DEPARTMENT of any of the terms of this agreement, or for any acts or omissions by DEPARTMENT, or occurrences beyond the control of CITY which render it impossible for CITY to comply with the terms and provisions of this agreement. Such termination shall become effective NINETY (90) days following date of written notification by CITY to DEPARTMENT, as provided in paragraph 18 herein. 15. During TERM OF OPERATION, this agreement may be terminated immediately by mutual consent by both CITY and DEPARTMENT. 16. In the event of termination for any reason, CITY shall deliver said PATROL BOAT to DEPARTMENT, and agrees to execute any documents necessary to effect appropriate changes in pertinent -4- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 1 R PAPER rr orCALIIORIIIA 113 ,REV 0.72, O!► 1 2 3 4 5 6 7 8 a 12 13 14 15 16 17 18 19 18. In the event either party desires or is required to send notice to the other, such notice shall be deemed to have been given when mailed to the address set out below, or at such other address as may, from time to time; be designated in writing by the parties, irith first class postage fully prepaid thereon. TO DEPARTMENT: Department of Boating and Waterways 1629 - "S" Street Sacramento, California 95814 TO : City of San Rafael Post Office Box 60 San Rafael, California 94902 IN WITNESS WHEREOF, the parties hereto have executed this agreement as of the date first hereinabove appearing. STATE OF CALIFORNIA Department of Boating and Watenaays APPROVED: DEPARTMENT OF GENERAL SERVICES City o San Rafael t-t J By 4'Z1 Acting May ATTES City Clerk DEPARTDIENT OF BOATING AND WATERWAYS c NTRACT # 9-33-61-13 with CITY OF SAN RAAAEL A PROPRIATION DATA CH 259/79, Item 222 F.Y. 1979-80 FUND HARBORS AND WATERCRAFT REVOLVING FUND Line Item Allotment Operation 8 maintenance Agreement - F.F. Amount of this estimate $ -0- Unencumbered Balance after posting this estimate $ certify upon my own personal knowledge that bud ed fundi are availab r the period and purpose of the expenditure s ted bo� 10/19/79 Date Accounting Officer 45M NOTICES AssACFr`61;NT N--CiacM_%K No. A-102 vides the Federal sponsoring agency with ices Administration. Appropriate dlspo- sition instructioiis will be Issued to the PROPeBTT wAigAGzwrxT sTANDARDs adequate authority. 3. Real property. Each Federal grant- recipient alter completion of the Federal 1. This Attachment prescribes uniform or agency shall prescribe requirements agency review. 5. Exempt property. When statutory staadards governing the utilization.and disposition. of property furnished by the for grbntees concerning the use and dis- position of real property funded partly authority exist$ title to nonexpendable Federal Government or acquired In or wholly by the Federal Government. personal property acquired with project funds shall be vetted in the recipient whole or in'part with Federal funds or whose cost was charged to a project sup- Unless otherwise provided by statute, such requirements, as a minimum, shall upon acquisition unless it 1s determined ported by a Federal grant. Federal contain the following: that to do so is not in the furtherance of the objectives of the Federal sponsor - grantor agencies shall require grantees (a) Title to real property shall vest In Ing agency. When title is vestad La t..e to observe these standards under grants the recipient subject to the condition recipient the recipient shall have ro from the Federal Government and shall that the grantee shall use the real prop- other obligation or accountabill to the not impose additional requirements un- erty for the authorized purpose of the Federal Government for its use or d_'.., - less specifically required by Federal law. original grant as long as needed. position except as provided In 6a below. The grantees shall be authorized to use (b) The grantee shall obtain approval 6. Other nonexpendable properti. 12heir own property management stand- by the grantor agency for the use of the When other nonexpendable tangible ards and procedures as long as the pro- real property in other projects when property Is acquired by a grantee with visions of this Attachment are included. the grantee determines that the property project funds title shall not be tz: en 2. The following definitions apply for is no longer needed for the original grant by the Federal Government but shall the purpose of this Attachment: purposes. Use in other projects shall be vest in the grantee subject to the follow - (a) Real property. Real property limited to those under other Federal Ing conditions: means land. including land improve- grant programs, or programs that have (a) Right to transfer title. For items ments, structures- and appurtenances purposes consistent with those author- of nonexpendable personal property thereto, excluding movable machinery ized for support by the grantor. having a unit acquisition cost of $1,000 and equipment. (c) When the real property is no long- or more, the Federal -agency may reserve (b) Personal property. Personal prop- er needed as provided in a and b above, the right to transfer the Liffe to the erty of any kind except real property. It the grantee shall request disposition In- Federal Government or to a third part may be tangible -having physical exist- structions from the Federal agency or its named by the Federal Government when ante, or intangible --having no physical successor Federal agency. The Federal igiule such third party Is otherwise elerva- existence, such as patents. inventions, agency shall observe .the following rules and copyrights. in the disposition instructions: tion shall bbeegsubject to the following (c) Nonexpendable personal property. • (1) The grantee may be permitted tp standards: Nonexpendable personal property means retain title after it compensates the Fed- (1) The property shall be apPropri- tangible personal property having a use- eral Government in an amqunt computed ately identified in the grant or other- ful life of more than one year and an by applying the Federal percentage of wise made known to the grantee in acquisition cost of $300 or more per unit. participation in the cast of the original writing. A grantee may use its own definition of project to the fair market value of the (2) The Federiii-agency shall issue nonexpendable personal property pro- Property, disposition instructions within 120 cal- vided that such definition would at least - (2) The grantee may be directed to endar days after the end of the Federal include all tangible personal property 84 sell the property under *uidelines pro- support of the project for which It was dedr:ed above. vided by the Federal agency and pay the acquired. If the Federal agency falls to (d) Expendable personal property. Ex- Federal Government an amount com- issue disposition instructions within the pendable personal property refers to all puted by applying ther Federal percent- 120 calendar -day period, the grantee tangible personal property, other than age of participation in the cost of the shall apply the standards of subpara- nonexpendable property. original project to the proceeds from sale graph 6(b) and 6(c) as appropriate. (e) Excess property. Excess property (after deducting actual and reasonable (3) When the Federal agency exer- means property under the control of any selling and fix -up expenses, if any, from cases its right to take title. the personal Feder.1 agency which, as determined by the sales proceeds). When the grantee Is property shall be subject to the provi- the head thereof, is no longer required authorized or required to sell the prop- sions for federally -owned nonexpendabie for its needs or discharge of its responsi- erty. Proper sales procedures shall be es- property discussed in paragraph 4. bllitlesy tablished that provide for competition to above. (.) Acquisition cost of purchased non- the extent practicable and resWt in the (4) When title is transferred either expendable personal property. Acqui- .highest possible return. to the Federal Government or to a third sitlon cost of an item of purchased nen- (3) The grantee may be directed to party, the pra inions of S'a,bPQr--9:..:: expendable personal property means the transfer title to the property to the Fed- 6(c) (2) (b) should' be followed. net invoice unit price of the property in- eral Government provided that in such (b) Use of other tangible nonespend- cluding the cost of modifications` attach- cases the grantee shall be entitled to able property for which the grantee has ments, accessories, or auxiliary apparn- compensation computed' by applying the title. tun necessary to make the property usa- grantees percentage of participation in (1) The grantee shall use the proper- ble for the purpose for which it was the cost of the program or project to the ty in the project or program for which acquired. Other charges such as the cost current fair market value of the prop- • it was acquired as long as needed, .of installation, transportation, taxes, erty- whether or not the project or program duty, or protective in -transit insurance, 4. Pederally owned nonexpendable continues to be supported by Federal shall be included or excluded from the personal property. Title to federally funds. When no longer needed for the unit acquisition cost.in accordance with owned property remains vested in the original project or program, the grantee the grantee's regular accounting prat- Federal Government. Recipients shall shall use the property In connection with tices submit annually an inventory listing of Its other federally sponsored activities, (g) Exempt property. Exempt property federally owned property in their custody in the following order of .priority: means tangible personal property ac- to the Federal agency. Upon completion (a) Activities sponsored by the same quired in whole or in part with Federal of the agreement or when the property Federal agency. funds, and title to which is vested in the is no longer needed; the grantee shall (b) Activities sponsored by other Fed - recipient without further obligation to report the property to the Federal agency eral agencies. the Federal Government except as pro- for further agency utilization. (2) Shared use. During the time that vided in subparagraph 6a below. Such If the Federal agency has no further nonexpendable personal property is held unconditional vesting of title will be pur- need for the property, it shall be declared for use on the project or program for suant W any Federal legislation that pro- excess and reported to the General Serv- which it was acquired, the grantee shall FEDERAL REGISTER, VOL 42, NO. 116—MONDAY, SEPTEMBER 12, 1177 make it available for use on other prol- ects or programs If such other use will not interfere with the work on the prot- ect or program for which the property was originally acquired. First preference` for such other use shall be given to other projects or programs sponsored by the. Federal agency that financed the prop- erty; second preference shall be given to projects Or programs sponosred by other Federal agencies. If the property Is' owned by the Federal Government, use on. other'activities not sponsored by the Federal Government shall be per- missible if authorized by the Federal agency. User charges should be con- sidered If appropriate. - (c) Disposition of other nonexpend- able property. When the grantee- no longer needs the property as provided in 6h above, the property may be used for other activities in accordance with the following standards: (1)" Nonexpesidaule property with a unit acquisition cost of less than $1,000. Thr, grantee may use the property for other activities without reimbursement to the Federal Government or sell the property and retain the proceeds. (2) Nonexpendable personal -property with a unit acquisition cast of $1,000 or more. 'The grantee may retain the prop- erty far other uses provided that com- pensation Is madd to the original Federal agency or Its successor. The amount of compensation shall be computed by ap- plyina-the percentage of Federal par- ticipation in the cost of the original Project or program to .the current fair market value of the property. If the grantee has no need for the property and the property has further use value, the grantee shall request disposition irstruc- tlons from the original grantor agency. The Federal agency shall determine whether the property can be used to meet the agency's requirements. If no requirement exists w_thin that agency, the availability of the property shall be reported. in accordance with the guidelines of the Federal Property Management Regulations (FPMR), to the General Services Administration by the Federal agency to determine whether a requirement for the property exists in other Federal agencies. The Federal agency shall Issue instructions to the grantee• no later than 120 days after the grantee request and the following procedures shall govern: (a) If so Instructed- or if disposition Instructions are not Issued within 120 calendar days after the grantee's re- quest, the -grantee shall sell the prop- erty and reimburse the Federal agency an amount computed by applying to the sales proceeds the percentage of Federal participation In the cost of the original project or program. However, . the grantee shall be permitted to deduct and retain from the Federal share $100 or ten percent of the proceeds, which- ever is greater,' for the gruitee's sell- ing and handling expenses. '(b) If the grantee is Instructed to ship the property elsewhere the grantee shall be reimbursed by the benefiting Federal agency with an amount which NOTICES Is computed by applying the" percentage of the grantee participation in the cost of the original grant project or program to the current fair market value of the property, -plus any reasonable shipping or. interim storage costs Incurred. •'(c) If the grantee is' instructed to otherwise dispose of the property, the grantee shall be reimbursed by the Fed- eral agency for such cosh incurred in its disposition. (d) Property rcanagem- zitt standards for nonerpendable property. The grant- ee's property management standards for nonexpendable personal property shall Include the fi .lowing procedural require- ments: (1) Property records shall be main- tained accurately and shall include: (a) A description of the property. (b) Manufacturer's serial number, model number, Federal stock numoer, national stock number, or other IdentiS- cation number. (c) Source of the. property Including grant or other agreement number. (d) Whether title vests in the grantee or the Federal Government. . (e) Acquisition date (or date received, if the property was furnished by the Federal Government) and cost. (f) 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 Federal Government.) (g) Location, use, and condition of the property and the date the informa- tion was reported. (h) Unit acquisition cost. (1) Ultimate disposition data, includ- ing date of disposal and sales price or the method used to determine current fair market value where a grantee com- pensates the Federal agency for its share. (2) Property owned -by the Federal Government must be marked to indi- cate Federal ownership. (3) A physical inventory of property shall be taken and the results reconciled with the property records at least once every two years. Any differences between quantities determined by the physical inspection and those shown in the ac- counting records shall be investigated to determine tfie causes of the difference. The grantee shall, in connection with the Inventory, verify the existence, current utilization, and continued need for the property. (4) A control system shall be in effect to insure adequate safeguards to prevent lass, damage, or theft of the property. Any loss, damage, or theft of nonex- pendable property shall be investigated and fully documented; if the property was owned by the Federal Government, the grantee shall promptly notify the Federal agency. (5) Adequate maintenance procedures shall be Implemented to keep the prop- erty in good condition. - . (6) Where the grantee Is authorized or required to sell the property, proper sales procedures shall be established which would provide for competition to M -M the extent p:actIr-abie and result in the highest possible return. 7. Ezpendahlz personal property. Title to expendable personal preparty sha' vest in the grantee upon acquisit Ma If there is a residual inventory of such Property excm� $1,000 in total aggr'e- gato fair market value, upon termina- tion or completion of the giant and if the property is not needed for any other federally sponsored project or program, the grantee shall retain the property for use on nonfederally sponsored activities, or sell it, but must in either case, com- pensnte the Federal Government for its share. The amount of compensation shall be computed fn the same manner as noneependsble personal property. 8. Intangit)le property. (a) Inventions and patent. If any program produces patentable items, patent rights, processes, or inventions, in rhe coure of .vork sponsored by the Federal Government, such fact shall be promptly and fully reported to the Fed- eral agency. Unlessthere is a prior agree- ment greement between the grantee and the Fed- eral agency on disposition of such items, the Federal agency shall determine whether protection on the invention or disccvery shall be sought. The Federal agency will also determine how the rights in the invention or discovery, including rights under any patent Issued thereon. shall be allocated and administrated in order to protect the public mterest con- sistent with "Governrcant Patent Policy" (President's Memorandum for Heads of Executive Departments and Agencies, August 23. 1971, and statement of Gov- errunent Patent Policy as printed in 36 FR 16889) . (b) Copyrig)rts- Except a:> otherwise provided in the terms =d conditions of Lhe agreement the aut':or or the grantee organization is free to copyright any books, publications, or other copyright- able materials developed in the course of or under a Federal agreement, but the Federal agency 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. 9. F,tcess personal property. When title to excess property is vested in grant- ees such property shall be accounted for ,ind disposed of in accordance with para- e=Pbs 6(c) and 6(d) of this attenhm�_nf ATrACILbMNT O—Crnc &R No. A-102 PROCUREMENT STANDARDS 1. This Attachment provides standards for use by grantees in establishing proce- dures for the procurement of supplies, equipment, constrcaction, and other serv- ices with Federal grant funds. These standards are.furnished to insure that such materials and services we obtained in an effective manner and in compliance with the provisions of applicable Federal law and Executive orders. No additional requirement-. shall be impc4ed by the Fedeml agencies upon the grantees un- less specifically required by Federal law or Executive orders. 2. The Standards contained in this At- tachment do not relieve the grantee of the contractual responsibilities arising FEDERAL REGISTER, VOL 42, NO. 176 --MONDAY, SEPTEMBER 12, 1977 590 uwder its contracts. The grantee Is the responsible authority, without recourse the grantor agency regarding the set- tlement and satisfaction of all contrac- t- and administrative issues arising out of and entered into, In support of a grant. This includes but Is not lim- ited to: disputes, claims, protests o1 award. source evaluation or other mat- ters of a contractual nature. Matters concerning violation of law are to be re- ferred to such local. State, or Federal authority as�may have proper jurisdic- tion. 3. Grantees — use their own pro- curement regulations which reflect ap- plicable State and local law, rules and regulations provided that procurements made with Federal grant funds adhere to the standards set forth as follows: (a) The grantee shall maintain a code or standards of conduct which shall govern the performance of its ofXIcers, employees, or agents in contracting with and expending Federal grant funds. drantee's officers, employees. or agents, shall neither solicit nor accept gratui- ties, favors, or anything of monetary value from contractors or potential con- tractors. To the extent permissible by State or local law, rules or regulations, such standards shall provide for penal- ties, sanctions, or other disciplinary ac- tions to be applied for violations of such standards by either the grantee officers, employees, or agents, or by contractors or. their agent& (b) All procurement transactions re-• gardless of whether negotiated or adver- t1sed and without regard to.dollar value shall be conducted In a manner so as to provide maximum open and free compe- tition. The grantee should be alert to or- ganizational conflicts of interest or non- competitive practices among contractors which may restrict or eliminate compe- tition of otherwise restrain trade. (c) The grantee shall establish pro- curement procedures which provide for, as a minimum, the following procedural requirements: (1) Proposed procurement action$ shall he reviewed by grantee officials to avoid purchasing unnecessary or dupli- cative Items. Where appropriate, an analysis shall be made of lease and pur- r_hase alternatives to determine which would be tits mmt ercnomical, practical procurement. (2) Invitations for bids or requests for proposals shall be based upon a clear and accurate description of the techni- cal requirements for the material, prod- uct, or service to be procured: Such de- scription shall not. in competitive pro- curements, contain features which un- duly restrict competition. "Brand name or equal" description 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 trust be met by offerors should be clearly specified. (3) Positive efforts shall be made by the grantees to utilize small business and minority-owned business sources of sup- plies and services. Such efforts should al - NOTICES low these sources the maximum fertzible opportunity to compete for contnu:ts to be performed utilizing Federal grant funds. (4) The type of procuring instruments used (i.e., fixed price contracts, cost re- imbursable contracts, purchase orders, incentive contracts, etc.), shall be ap- propriate for the particular procurement and' for promoting the best interest o1 the grant program involved. The "cost- plus -a -percentage -of -cost" method of contracting shall not be used. (5) Formal advertising, with adequate purchase description, sealed bids, and public openings shall be the required method- of procurement unless negotia- tion pursuant to paragraph (6) below Is necessary to accomplish sound procure- ment. However, procurements of $10,000 or less n --ed not be so advertised unless otherwise required by State or local law or regulations. Where such advertised bids are obtained the awards shall be made to the responsible bidder whose bid Is responsive to the invitation and Is most advantageous to the grantee, price and other factors considered. (Factors such as discounts, transportation costs, taxes may be considered in determining the lowest bid.) Invitations for bids shall clearly set forth all requirements which, the bidder must fulfill in order for his bid to be evaluated by the grantee. Any or all bids may be rejected when it is in the grantee's interest to do so, and such rejections are In accordance with appli- cable State and local law, rules, and regulations. (6) Procurements may be negotiated If it is impracticable and unfeasible to _ use- formal advertising.. Generally, pro- curements may be negotiated by the granEee. if: (a) The public exigency will not per- mit the delay Incident to advertising; (b) The material or service to be pro- cured Is available from only one person or firm: (All contemplated sole source procurements where the aggregate ex- penditure Is expected to exceed $5,000 shall be referred to the grantor agency for prior approval.) (c) The aggregate amount involved does not exceed $10,000; (d) The contract is for personal or professional services, or for any service to be rendered by a. university, callege, or other educational institutions; (e) The material & services are to be procured and used outside the limits of the United States and its possessions; (f) No acceptable bids have been re- ceived after formal advertising; (g) The purchases are fok- highly per- ishable materials or medical supplies, for material or services where the prices are established by law, for technical items or equipment requiring standardization and interchangeability of parts with ex- isting, for experimental, developmental or research work, for supplies purchased for authorized resale, and for technical or specialized supplies requiring substan- tial initial investment for. manufacture; (h) Otherwise authorized by law, rules, or regulations. Notwithstanding the existence of circum- stances j 1sttfy?ng negotiation. competi- tion shall be obtained to the maximum exteut prs.cticable. (7) Contract.: shall be made only with responsible contractors who passe.,s the potential ability to perform successfully under the terms and conditions of a pro- posed procurement. Consideration shall be given to such matters as contractor integrity, record of past performance, fiiianCial and technical resources, or ac- cessibility to other necessary resources.. (8) Procurement records or files for purchases in amounts in excess of S10.- 000 shall provide at least the following pertinent information: justification for the use of negotiation In lieu of advertis- Ing, contractor selection, and the basis for the cost or price negotiaped. (9) A system for contract administra- tion shall be maintained to assure con- tractor conformance with terms, condi- tions, and specifications of the contract or order, and to assure adequate and timely followup of all purchases. 4. The grantee shall include, In addi- tion to provi3lons to define a sound and complete agreement, the following pro- visions In all contracts and subgrants: (a) Contracts shall contain such con- tractual provisions or conditions which will allow for administrative, contractual., or legal n.medies in instances where con- tractors violate or brach contract terms, and provide for such sanctions and Penalties as may be appropriate. (b) All contracts, amounts for which are in excess of =10,000, shall contain suitable provisions for termination by the grantee Including the manner by which it will be effected and the bad for settlement. In. addition, such con- tracts 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. (c) All contracts awarded by grantees and their contractors or subgrantees hav- ing a value of more than $10,000 shall contain a provision requiring compljance with Esectlttve Order 11248, entitled, "Equal Employment Opportunity," as amended by Executive Order 11375, and as supplemented in Department of Tabor regulations (41 CFR Part 6a). (d) All contracts and subgrants for constructton or repair shall include a provision for compliance with the Cope- land "Anti-KIck Back" Act (18 U.S.C. 874) as supplemented in Department of Labor Fegulatlons (29 CFR, Part 3) . This Act provides that each contractor or subgrantee shall be prohibited from In- ducing, by any means. any person em- ployed in the construction, completion. or repair of public work, to give up amy part of the compensation to which he Is otherwise entitled. The grantee shall report all suspected or reported viola- tions to the grantor agency. (e) When required by the Federal grant prograrh legislation, all construc- tion contracts awarded by grantees and subgrantees in excess of $2.000 shall in- clude a provision for compliance with FEDERAL REGISTER, VOL 42, NO. 176—MONDAY, SEMEMBER 12, 1477 e Davis -Bacon Act (40 U.S.C. 276a to g�-7) and as supplemented by Depart- ,dient of Labor regulations (29 CFR, Part A),. Under this Act contractors shall be r'�-quired to pay wages to laborers and mechanics at a rate not less than the 'minimum wages specified in a wage de- termination made by the Secretary of Labor. In addition, contractors shall be required to pay wages not less often than once a week. The grantee shall place a copy of the current prevailing wage determination issued by the De- partment of Labor in each solicitation and the award of a contract shall be - conditioned upon the acceptance of the wage determination. The grantee shall report all suspected or reported viola- tions to the grantor agency. (1) Where applicable, all contracts awarded by grantees and subgrantees in excess of $2.000 for construction con- tracts and in excess of $2,500 for other contracts which involve the employ- ment of mechanics or laborers. shall in- clude a provision for compliance with sections 103 and 107 of the • Contract Works 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 NOTICES 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 per- missible provided that the worker is compensated at a rate of not less than 153 times the basic rate of pay for all hours worked in excess of 8 hours in any calendar day or 40 hours In the work week. Section 107 of the Act is applica- ble to construction work and, provides that no laborer or mechanic shall be required to work in surroundings or un- der working conditions which are un- sanitary, hazardous, or dangerous to his health and safety as determined under construction, safetyf, and health stand- ards 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 transpor- tation or transmission of intelligence. (g) Contracts or agreements. the principal purpose of which is to create, develop, or improve products, processes or methods; or for exploration Into fields which directly concern public health. safety, or welfare; or contracts In the Held of science or technology in which there has been little significant experi- U S. GOVERNMENT PRINTING OFFICE - 1977 O - 218-151 45891 ence outside of work funded by Federal assistance, shall contain a nutice to the effect that matters regarding rights to inventions, and materials generated under the contract or agreement are sub- ject to the regulations ks.ued by the Fed- eral grantor agency and the grantee. The contractor shall be advised as to the :source of additional inf,�rmutlon re- g:lyding these matters. (h) Ali negotiated contrl,cta (except those of $10,000 or Ips) awarded by effect that the grantee, the Federal grantees shall include a provision to the grantor agency, the Comptroller General of the United States, or any of their duly withorized representatives, shall have access to any books, doc=ents. Pa'pe'rs, and records of the contractor which are directly pertinent to a specific grant progmri for the purpose of making audit, examination, excerpts, and tran- scriptions. .(1) Contracts and subgnants of amounts in excess of $100,000 shall con- tain a provision which requires the re- cipient to agree to comply with all ap- plicable standards, orders, or regulations issued pursuant to the Clean Air Act of 1970. Violations shall be reported to. the grantor agency and the Regional Office of the Environmental- Protection Agency. [FR Doc.77-25944 Filed 9-9-77.8:46 ami