[Code of Federal Regulations]
[Title 40, Volume 1]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 40CFR40.145-3]

[Page 714-715]
 
                   TITLE 40--PROTECTION OF ENVIRONMENT
 
               CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY
 
PART 40_RESEARCH AND DEMONSTRATION GRANTS--Table of Contents
 
Sec. 40.145-3  Projects involving construction.

    Research and demonstration grants for projects involving 
construction shall be subject to the following conditions:
    (a) The applicant will demonstrate to the satisfaction of the grants 
officer that he has or will have a fee simple or such other estate or 
interest in the site of the project, and rights of access, as the grants 
officer finds sufficient to assure undisturbed use and possession for 
the purpose of construction and operation for the estimated life of the 
project; and in the case of projects serving more than one municipality, 
that the participating communities have such interests or rights as the 
grants officer finds sufficient to assure their undisturbed utilization 
of the project for the estimated life of the project.
    (b) Invitations for bids or requests for proposals shall be based 
upon a clear and accurate description of the technical requirements for 
the material, product, or service to be procured.

[[Page 715]]

Such description shall not, in competitive procurements, contain 
features which unduly restrict competition. ``Brand name or equal'' 
description may be used as a means to define the performance or other 
salient requirements of a procurement, and when so used the specific 
features of the named brand which must be met by offerors should be 
clearly specified.
    (c) Positive efforts shall be made by the grantees to utilize small 
business and minority-owned business sources of supplies and services.
    (d) Subagreements for construction work may be negotiated when 
advertising for competitive bids is not feasible; however, the grantee 
must adequately demonstrate its need to contract with a single or sole 
source. All such subagreements are subject to prior approval by the 
grants officer.
    (e) Construction work will be performed by the fixed-price (lump 
sum) or fixed-rate (unit price) method, or a combination of these two 
methods, unless the grants officer gives advance written approval to use 
some other method of contracting. The cost-plus-a-percentage-of-cost 
method of contracting shall not be used. Adequate methods of advertising 
for and obtaining competitive sealed bids will be employed prior to 
award of the construction contract. The award of the contract will be 
made to the responsible bidder submitting the lowest responsive bid, 
which shall be determined without regard to State or local law whereby 
preference is given on factors other than the specification requirements 
and the amount of bid. The grantee must promptly transmit to the grants 
officer copies of bid protests, decisions on such protests, and related 
correspondence. The grants officer will cause appropriate review of 
grantee procurement methods to be made.
    (f) On construction contracts exceeding $100,000, each bidder must 
furnish a bid guarantee equivalent to 5 percent of the bid price. In 
addition, the contractor awarded the contract must furnish performance 
and payment bonds, each of which shall be in an amount not less than 100 
percent of the contract price. Construction contracts less than $100,000 
shall follow the State or local requirements relating to bid guarantees, 
performance bonds, and payment bonds.
    (g) The construction of the project, including the letting of 
contracts in connection therewith, shall conform to the applicable 
requirements of State, territorial, and local laws and ordinances to the 
extent that such requirements do not conflict with Federal laws.
    (h) The grantee will provide and maintain competent and adequate 
engineering supervision and inspection for the project to insure that 
the construction conforms with the approved plans and specifications.
    (i) Any construction contract must provide that representatives of 
the Environmental Protection Agency and the State, as appropriate, will 
have access to the work whenever it is in preparation or progress and 
that the contractor will provide proper facilities for such access and 
inspection. The contract must also provide that the grants officer, the 
Comptroller General of the United States, or any authorized 
representative shall have access to any books, documents, papers, and 
records of the contractor which are pertinent to the project for the 
purpose of making audit, examination, excerpts, and transcriptions 
thereof.
    (j) The grantee agrees to construct the project or cause it to be 
constructed in accordance with the application, plans and 
specifications, and subagreements approved by EPA in the grant agreement 
or amendments.
    (k) In addition to the notification of project changes pursuant to 
40 CFR 30.900, a copy of any construction contract or modifications 
thereof, and of revisions to plans and specifications must be submitted 
to the grants officer.

[38 FR 12784, May 15, 1973, as amended at 40 FR 20083, May 8, 1975]