[Code of Federal Regulations]

[Title 45, Volume 1]

[Revised as of October 1, 2005]

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

[CITE: 45CFR74.48]



[Page 229-230]

 

                        TITLE 45--PUBLIC WELFARE

 

           SUBTITLE A--DEPARTMENT OF HEALTH AND HUMAN SERVICES

 

    PART 74_UNIFORM ADMINISTRATIVE REQUIREMENTS FOR AWARDS AND SUBAWARDS TO INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, OTHER NONPROFIT ORGANIZATIONS, AND 

COMMERCIAL ORGANIZATIONS--Table of Contents

 

                    Subpart C_Post-Award Requirements

 

Sec. 74.48  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



[[Page 230]]



provisions shall also be applied to subcontracts:

    (a) Contracts in excess of the simplified acquisition 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 simplified acquisition threshold 

(currently $100,000) 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, the HHS awarding 

agency may accept the bonding policy and requirements of the recipient, 

provided the HHS awarding agency 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, 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 

simplified acquisition threshold) awarded by recipients shall include a 

provision to the effect that the recipient, the HHS awarding agency, the 

U.S. Comptroller General, 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 

appendix A to this part, as applicable.



[59 FR 43760, Aug. 25, 1994, as amended at 61 FR 11747, Mar. 22, 1996; 

62 FR 41878, Aug. 4, 1997]



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