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PART 18 - UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOP... Page 23 of 38 <br />(6) Grantees and subgrantees are encouraged to use Federal excess and surplus property in lieu of <br />purchasing new equipment and property whenever such use is feasible and reduces project costs. <br />(7) Grantees and subgrantees are encouraged to use value engineering clauses in contracts for <br />construction projects of sufficient size to offer reasonable opportunities for cost reductions. Value <br />engineering is a systematic and creative analysis of each contract item or task to ensure that its essential <br />function is provided at the overall lower cost. <br />(8) Grantees and subgrantees will make awards only to responsible contractors possessing the ability to <br />perform successfully under the terms and conditions of a proposed procurement. Consideration will be <br />given to such matters as contractor integrity, compliance with public policy, record of past performance, <br />and financial and technical resources. <br />(9) Grantees and subgrantees will maintain records sufficient to detail the significant history of a <br />procurement. These records will include, but are not necessarily limited to the following: rationale for the <br />method of procurement, selection of contract type, contractor selection or rejection, and the basis for the <br />contract price. <br />(10) Grantees and subgrantees will use time and material type contracts only- - <br />(i) After a determination that no other contract is suitable, and <br />(ii) If the contract includes a ceiling price that the contractor exceeds at its own risk. <br />(11) Grantees and subgrantees alone will be responsible, in accordance with good administrative practice <br />and sound business judgment, for the settlement of all contractual and administrative issues arising out of <br />procurements. These issues include, but are not limited to source evaluation, protests, disputes, and <br />claims. These standards do not relieve the grantee or subgrantee of any contractual responsibilities under <br />its contracts. Federal agencies will not substitute their judgment for that of the grantee or subgrantee <br />unless the matter is primarily a Federal concern. Violations of law will be referred to the local, State, or <br />Federal authority having proper jurisdiction. <br />(12) Grantees and subgrantees will have protest procedures to handle and resolve disputes relating to their <br />procurements and shall in all instances disclose information regarding the protest to the awarding agency. <br />A protestor must exhaust all administrative remedies with the grantee and subgrantee before pursuing a <br />protest with the Federal agency. Reviews of protests by the Federal agency will be limited to: <br />(i) Violations of Federal law or regulations and the standards of this section (violations of State or <br />local law will be under the jurisdiction of State or local authorities) and <br />(ii) Violations of the grantee's or subgrantee's protest procedures for failure to review a complaint <br />or protest. Protests received by the Federal agency other than those specified above will be referred <br />to the grantee or subgrantee. <br />(c) Competition. <br />(1) All procurement transactions will be conducted in a manner providing full and open competition <br />consistent with the standards of Sec. 18.36. Some of the situations considered to be restrictive of <br />competition include but are not limited to: <br />(i) Placing unreasonable requirements on firms in order for them to qualify to do business, <br />(ii) Requiring unnecessary experience and excessive bonding, <br />http: / /www. dot .gov /ost/m60 /grant/49cfr18.htm 8/30/2012 <br />