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PART 18 - UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOP... Page 28 of 38 <br />if the awarding agency determines that its procurement systems comply with the standards of this section. <br />(i) A grantee or subgrantee may request that its procurement system be reviewed by the awarding <br />agency to determine whether its system meets these standards in order for its system to be certified. <br />Generally, these reviews shall occur where there is a continuous high - dollar funding, and third - <br />party contracts are awarded on a regular basis. <br />(ii) A grantee or subgrantee may self- certify its procurement system. Such self- certification shall <br />not limit the awarding agency's right to survey the system. Under a self- certification procedure, <br />awarding agencies may wish to rely on written assurances from the grantee or subgrantee that it is <br />complying with these standards. A grantee or subgrantee will cite specific procedures, regulations, <br />standards, etc., as being in compliance with these requirements and have its system available for <br />review. <br />(h) Bonding requirements. For construction or facility improvement contracts or subcontracts exceeding the <br />simplified acquisition threshold, the awarding agency may accept the bonding policy and requirements of the <br />grantee or subgrantee provided the awarding agency has made a determination that the awarding agency's <br />interest is adequately protected. If such a determination has not been made, the minimum requirements shall be <br />as follows: <br />(1) A bid guarantee from each bidder equivalent to five percent of the bid price. The "bid guarantee" shall <br />consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument <br />accompanying a bid as assurance that the bidder will, upon acceptance of his bid, execute such <br />contractual documents as may be required within the time specified. <br />(2) A performance bond on the part of the contractor for 100 percent of the contract price. A <br />"performance bond" is one executed in connection with a contract to secure fulfillment of all the <br />contractor's obligations under such contract. <br />(3) A payment bond on the part of the contractor for 100 percent of the contract price. A "payment bond' <br />is one executed in connection with a contract to assure payment as required by law of all persons <br />supplying labor and material in the execution of the work provided for in the contract. <br />(i) Contract provisions. A grantee's and subgrantee's contracts must contain provisions in paragraph (i) of this <br />section. Federal agencies are permitted to require changes, remedies, changed conditions, access and records <br />retention, suspension of work, and other clauses approved by the Office of Federal Procurement Policy. <br />(1) Administrative, contractual, or legal remedies in instances where contractors violate or breach contract <br />terms, and provide for such sanctions and penalties as may be appropriate. (Contracts more than the <br />simplified acquisition threshold) <br />(2) Termination for cause and for convenience by the grantee or subgrantee including the manner by <br />which it will be effected and the basis for settlement. (All contracts in excess of $10,000) <br />(3) Compliance with Executive Order 11246 of September 24, 1965, entitled "Equal Employment <br />Opportunity," as amended by Executive Order 11375 of October 13, 1967, and as supplemented in <br />Department of Labor regulations (41 CFR chapter 60). (All construction contracts awarded in excess of <br />$10,000 by grantees and their contractors or subgrantees) <br />(4) Compliance with the Copeland "AntiKickback" Act (18 U.S.C. 874) as supplemented in Department <br />of Labor regulations (29 CFR part 3). (All contracts and subgrants for construction or repair) <br />(5) Compliance with the DavisBacon Act (40 U.S.C. 276a to 276a -7) as supplemented by Department of <br />http: / /www. dot .gov /ost/m60 /grant/49cfr18.htm 8/30/2012 <br />