PART 1132—RECIPIENT PROCUREMENT PROCEDURES: GENERAL AWARD TERMS AND CONDITIONS Authority: 5 U.S.C. 301 and 10 U.S.C. 113. Source: 85 FR 51171, Aug. 19, 2020, unless otherwise noted. § 1132.1 Purpose of this part. (a) This part specifies standard wording of general terms and conditions concerning recipients' purchases of property (supplies, equipment, and real property) and services. (b) It thereby implements OMB guidance in 2 CFR 200.317 through 200.326, and appendix II to 2 CFR part 200, as those portions of 2 CFR part 200 apply to general terms and conditions of grants and cooperative agreements. It also partially implements 2 CFR 200.205(d), 200.213, and 200.517. § 1132.2 Applicability of this part. The types of awards and entities to which this part and other parts in this subchapter apply are described in the subchapter overview at 2 CFR 1126.2. § 1132.3 Exceptions from requirements of this part. Exceptions are permitted from the administrative requirements in this part only as follows: (a) As described in 2 CFR 1126.3, and (b) Based on any language in 2 CFR 200.110(a) regarding the applicability of the procurement standards in 2 CFR part 200. § 1132.4 Organization of this part. (a) The content of this part is organized into subparts and associated appendices. (1) Each subpart provides direction to DoD Components on how to construct one article of general terms and conditions for grants and cooperative agreements. (2) For each subpart, there is a corresponding appendix with standard wording for terms and conditions of the article addressed by the subpart. Terms and conditions address rights and responsibilities of the Federal Government and recipients. (b) A DoD Component must use the wording provided in each appendix in accordance with the direction in the corresponding subpart. That direction may permit DoD Components to vary from the standard wording in some situations. (c) Table 1 shows which article of general terms and conditions may be found in each of appendices A through C to this part (with the associated direction to DoD Components in Subparts A through C, respectively): Table 1 to paragraph (c) In . . . You will find terms and conditions specifying recipients' rights and responsibilities related to . . . That would appear in an award within PROC Article . . . Appendix A Procurement standards for States I. Appendix B Procurement standards for institutions of higher education, nonprofit organizations, local governments, and Indian tribes II. Appendix C Contract provisions for recipient procurements III. Subpart A-Procurement Standards for States (PROC Article I) § 1132.100 Purpose of PROC Article I. PROC Article I of the general terms and conditions specifies requirements for a State's procurement of property and services under grants or cooperative agreements. It thereby implements OMB guidance in 2 CFR 200.317 and partially implements the guidance in 2 CFR 200.205(d) and 200.213. § 1132.105 Content of PROC Article I. (a) Requirement. (b) Award terms and conditions General. (2) Exception. (i) DoD Component awards using those general terms and conditions; or (ii) Subawards from recipients of DoD Component awards using those general terms and conditions. Subpart B—Procurement Standards for Institutions of Higher Education, Nonprofit Organizations, Local Governments, and Indian Tribes (PROC Article II) § 1132.200 Purpose of PROC Article II. PROC Article II of the general terms and conditions specifies procurement procedures for a recipient of a grant or cooperative agreement other than a State or for-profit entity. It thereby: (a) Implements OMB guidance in 2 CFR 200.318 through 200.323, 200.324(a) and (b), and 200.325; (b) Partially implements 2 CFR 200.205(d) and 200.213; and (c) Implements, in conjunction with PROC Article III, 2 CFR 200.326. § 1132.205 Procurement procedures. (a) Requirement. (b) Award terms and conditions. § 1132.210 Procurement of recovered materials. (a) Requirement. (b) Award terms and conditions. (1) Use the wording that appendix B provides for Section G of PROC Article II, to specify requirements for a local government or other political subdivision of a State to comply with Resource Conservation and Recovery Act requirements; or (2) Reserve Section G if the DoD Component determines that it is not possible that a political subdivision of a State will receive either: (i) An award using those terms and conditions; or (ii) A subaward under an award using those terms and conditions. § 1132.215 Review of recipient procurement documents. (a) Requirements. (1) Include a requirement for recipients to make technical specifications for proposed procurements available upon the DoD Component's request, as described in 2 CFR 200.324(a). (2) Reserve the DoD Component's right to review a recipient's pre-procurement documents when any of the conditions described in 2 CFR 200.324(b)(1) through (5) apply and the recipient is not exempted from the requirement in accordance with 2 CFR 200.324(c). (b) Award terms and conditions. § 1132.220 Bonding requirements. (a) Requirements. (b) Award terms and conditions General. (2) Exceptions. Subpart C—Contract Provisions for Recipient Procurements (PROC Article III) § 1132.300 Purpose of PROC Article III. PROC Article III of the general terms and conditions specifies provisions that recipients must include in contracts under their awards, as applicable. It thereby: (a) Implements, in conjunction with PROC Articles I and II, OMB guidance concerning recipients' contract provisions under grants and cooperative agreements in 2 CFR 200.317 and 200.326; (b) Partially implements the OMB guidance in 2 CFR 200.205(d) and 200.213 concerning suspension and debarment requirements; and (c) Partially implements the OMB guidance in 2 CFR 200.517 concerning retention and access of auditors' records. § 1132.305 Administrative requirements. (a) Requirement. (b) Award terms and conditions. § 1132.310 National policy requirements. (a) Requirement. (b) Award terms and conditions General. (2) Exceptions. (ii) If a DoD Component determines that any of the other national policy requirements in Section B will not apply to any of the awards subject to its general terms and conditions, the DoD Component may reserve the paragraphs of Section B addressing those requirements. Should a future need arise to include the requirements in a given award, the DoD Component may include them as award-specific terms and conditions. Appendix A to Part 1132—Terms and Conditions for PROC Article I, “Procurement Standards for States” Unless a DoD Component reserves the article, as specified in § 1132.105, a DoD Component's general terms and conditions must use the following wording for PROC Article I. PROC Article I. Procurement Standards for States. (December 2014) Section A. Use of State procurement system. Section B. Procurement of recovered materials. Section C. Debarment and suspension. Section D. Contract provisions. Appendix B to Part 1132—Terms and Conditions for PROC Article II, “Procurement Standards for Institutions of Higher Education, Nonprofit Organizations, Local Governments, and Indian Tribes” With the exception of Sections G and I, which may be reserved as specified in §§ 1132.210 and 1132.220, a DoD Component's general terms and conditions must use the following wording for PROC Article II. PROC Article II. Procurement Standards for Institutions of Higher Education, Nonprofit Organizations, Local Governments, and Indian Tribes. (December 2014) Section A. General procurement standards. 1. For procurement under this award, you must comply with the following paragraphs of OMB guidance in 2 CFR 200.318: a. 200.318(a) concerning documented procurement procedures; b. 200.318(b) concerning oversight of contractors; c. 200.318(c) concerning standards of conduct and conflicts of interest; d. 2 CFR 200.318(d) concerning purchases of unnecessary or duplicative items; e. 200.318(e) concerning intergovernmental or inter-entity agreements; f. 200.318(g) concerning value engineering; g. 200.318(i) concerning procurement records; h. 200.318(j) concerning time and material type contracts; and i. 200.318(k) concerning settlement of issues arising out of procurements. 2. You must do business only with responsible contractors who are able to perform, as described in OMB guidance in 2 CFR 200.318(h). Related to that, you must comply with restrictions on awarding procurement transactions to excluded or disqualified parties and other requirements specified by OMB guidelines on nonprocurement debarment and suspension at 2 CFR part 180, as implemented by DoD at 2 CFR part 1125. Section B. Competition. Section C. Procurement methods. Section D. Contracting with small and minority businesses, women's business enterprises, and labor surplus area firms. Section E. Contract cost and price. Section F. Contract provisions. Section G. Procurement of recovered materials. Section H. Review of procurement documents. 1. Technical specifications on proposed procurements, as described in 2 CFR 200.324(a). 2. Pre-procurement documents for our review, as described in 2 CFR 200.324(b) unless you are exempt from that requirement under 2 CFR 200.324(c). Section I. Bonding requirements. 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. 2. Termination. 3. Allowable costs under cost-type contracts. 4. Rights in copyright and data. 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. Section B. Contract provisions for national policy requirements. 1. Equal employment opportunity. 2. Wage Rate Requirements (Construction), 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. 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. 5. Patents and inventions. 6. Clean air and water requirements. 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. 8. Byrd Amendment anti-lobbying requirements. 9. Purchase of recovered materials by States or political subdivisions of States. 10. Fly America requirements. 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.