[Code of Federal Regulations]
[Title 13, Volume 1]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 13CFR305.22]

[Page 494-495]
 
                TITLE 13--BUSINESS CREDIT AND ASSISTANCE
 
CHAPTER III--ECONOMIC DEVELOPMENT ADMINISTRATION, DEPARTMENT OF COMMERCE
 
PART 305--GRANTS FOR PUBLIC WORKS AND DEVELOPMENT FACILITIES--Table of Contents
 
              Subpart B--Requirements for Approved Projects
 
Sec. 305.22  Services performed by the recipient's own forces.

    The recipient may wish to have a portion or all of the design, 
construction, inspection, legal services or other work and/or services 
in connection with the project performed by personnel who are employed 
by the recipient either full or part time (in-house). Due to the 
difficulty in monitoring in-house construction and the limited EDA staff 
available to perform the monitoring, in-house construction is 
discouraged.
    (a) If EDA approves the use of the recipient's in-house forces to 
construct all or part of the EDA assisted project and the in-house 
forces are to be augmented by personnel hired specifically for the EDA 
assisted project, the hourly wages to be paid to such personnel shall be 
the same as the hourly wages paid to full time personnel of the 
recipient doing the same or similar work. If the nature of the work is 
not similar and/or there is not an established wage scale, the 
prevailing state or county hourly wage for public employees shall be 
obtained from the appropriate state or county agency and used for the

[[Page 495]]

newly established position. However, non-profit recipients must pay all 
personnel employed for the construction of the EDA assisted project the 
prevailing hourly wages for the area as established by the U.S. 
Department of Labor.
    (b) The use of in-house forces for construction may be approved by 
EDA if:
    (1) The recipient has a special skill required for the construction 
of the project, e.g., construction of unique Indian structures, or
    (2) The recipient has made all reasonable efforts to obtain a 
contractor but has failed to do so because of uncontrollable factors 
such as the remoteness of the project site or an overabundance of 
construction work in the project area, or
    (3) Substantial cost savings can be demonstrated.

[64 FR 69877, Dec. 14, 1999]