[Code of Federal Regulations]

[Title 40, Volume 1]

[Revised as of July 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 40CFR30.48]



[Page 337-338]

 

                   TITLE 40--PROTECTION OF ENVIRONMENT

 

               CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY

 

PART 30_UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND AGREEMENTS 

 

                    Subpart C_Post-Award Requirements

 

Sec. 30.48  Contract provisions.



    The recipient shall include, in addition to provisions to define a 

sound and complete agreement, the following provisions in all contracts. 

The following provisions shall also be applied to subcontracts.

    (a) Contracts in excess of the small purchase threshold shall 

contain contractual provisions or conditions that allow for 

administrative, contractual, or legal remedies in instances in which a 

contractor violates or breaches the contract terms, and provide for such 

remedial actions as may be appropriate.

    (b) All contracts in excess of the small purchase threshold shall 

contain suitable provisions for termination by the recipient, including 

the manner by which termination shall be effected and the basis for 

settlement. In addition, such contracts shall describe conditions under 

which the contract may be terminated for default as well as conditions 

where the contract may be terminated because of circumstances beyond the 

control of the contractor.

    (c) Except as otherwise required by statute, an award that requires 

the contracting (or subcontracting) for construction or facility 

improvements shall provide for the recipient to follow its own 

requirements relating to bid guarantees, performance bonds, and payment 

bonds unless the construction contract or subcontract exceeds $100,000. 

For those contracts or subcontracts exceeding $100,000, EPA may accept 

the bonding policy and requirements of the recipient, provided EPA has 

made a determination that the Federal Government'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 instrument 

accompanying a bid as assurance that the bidder shall,



[[Page 338]]



upon acceptance of his bid, execute such contractual documents as may be 

required within the time specified.

    (2) A performance bond on the part of the contractor for 100 percent 

of the contract price. A ``performance bond'' is one executed in 

connection with a contract 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 executed in connection 

with a contract to assure payment as required by statute of all persons 

supplying labor and material in the execution of the work provided for 

in the contract.

    (4) Where bonds are required in the situations described herein, the 

bonds shall be obtained from companies holding certificates of authority 

as acceptable sureties pursuant to 31 CFR part 223, ``Surety Companies 

Doing Business with the United States.''

    (d) All negotiated contracts (except those for less than the small 

purchase threshold) awarded by recipients shall include a provision to 

the effect that the recipient, EPA, the Comptroller General of the 

United States, or any of their duly authorized representatives, shall 

have access to any books, documents, papers and records of the 

contractor which are directly pertinent to a specific program for the 

purpose of making audits, examinations, excerpts and transcriptions.

    (e) All contracts, including small purchases, awarded by recipients 

and their contractors shall contain the procurement provisions of the 

appendix to Circular A-110, as applicable.



                           Reports and Records