Department of Justice
than the simplified acquisition thresh-
old.
(3) A grantee or subgrantee will be
exempt from the pre-award review in
paragraph (g)(2) of this section if the
awarding agency determines that its
procurement systems comply with the
standards of this section.
(i) A grantee or subgrantee may re-
quest that its procurement system be
reviewed by the awarding agency to de-
termine whether its system meets
these standards in order for its system
to be certified. Generally, these re-
views shall occur where there is a con-
tinuous high-dollar funding, and third-
party contracts are awarded on a reg-
ular basis.
(ii) A grantee or subgrantee may self-
certify its procurement system. Such
self-certification shall not limit the
awarding agency's right to survey the
system. Under a self-certification pro-
cedure, awarding agencies may wish to
rely on written assurances from the
grantee or subgrantee that it is com-
plying with these standards. A grantee
or subgrantee will cite specific proce-
dures, regulations, standards, etc., as
being in compliance with these require-
ments and have its system available
for review.
(h) Bonding requirements. For con-
struction or facility improvement con-
tracts or subcontracts exceeding the
simplified acquisition threshold, the
awarding agency may accept the bond-
ing policy and requirements of the
grantee or subgrantee provided the
awarding agency has made a deter-
mination that the awarding agency’s
interest is adequately protected. If
such a determination has not been
made, the minimum requirements shall
be as follows:
(1) A bid guarantee from each bidder
equivalent to five percent of the bid price.
The ‘bid guarantee’ shall consist of a
firm commitment such as a bid bond,
certified check, or other negotiable in-
strument accompanying a bid as assur-
ance that the bidder will, upon accept-
ance of his bid, execute such contrac-
tual documents as may be required
within the time specified.
(2) A performance bond on the part of
the contractor for 100 percent of the con-
tract price. A ‘‘performance bond”’ is
one executed in connection with a con-
§ 66.36
tract to secure fulfillment of all the
contractor’s obligations under such
contract.
(3) A payment bond on the part of the
contractor for 100 percent of the contract
price. A *‘payment bond” is one exe-
cuted in connection with a contract to
assure payment as required by law of
all persons supplying labor and mate-
rial in the execution of the work pro-
vided for in the contract.
(i) Contract provisions. A grantee’s
and subgrantee’s contracts must con-
tain provisions in paragraph (i) of this
section. Federal agencies are permitted
to require changes, remedies, changed
conditions, access and records reten-
tion, suspension of work, and other
clauses approved by the Office of Fed-
eral Procurement Policy.
(1) Administrative, contractual, or
legal remedies in instances where con-
tractors violate or breach contract
terms, and provide for such sanctions
and penalties as may be appropriate.
(Contracts more than the simplified ac-
quisition threshold)
(2) Termination for cause and for
convenience by the grantee or sub-
grantee including the manner by which
it will be effected and the basis for set-
tlement. (All contracts in excess of
$10,000)
(3) Compliance with Executive Order
11246 of September 24, 1965, entitled
“Hgual Employment Opportunity,” as
amended by Executive Order 11375 of
October 13, 1967, and as supplemented
in Department of Labor regulations (41
CFR chapter 60). (All construction con-
tracts awarded in excess of $10,000 by
grantees and their contractors or sub-
grantees)
(4) Compliance with the Copeland
“Anti-Kickback’’ Act (18 U.S.C. 874) as
supplemented in Department of Labor
regulations (29 CFR part 3). (All con-
tracts and subgrants for construction
or repair)
(5) Compliance with the Davis-Bacon
Act (40 U.S.C. 276a to 276a-7) as supple-
mented by Department of Labor regu-
lations (29 CFR part 5). (Construction
coutracts in excess of $2000 awarded by
grantees and subgrantees when re-
quired by Federal grant program legis-
lation)
(6) Compliance with sections 103 and
107 of the Contract Work Hours and
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