[Code of Federal Regulations]

[Title 49, Volume 1]

[Revised as of October 1, 2005]

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

[CITE: 49CFR19.48]



[Page 170-171]

 

                        TITLE 49--TRANSPORTATION

 

          Subtitle A--Office of the Secretary of Transportation

 

PART 19_UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND AGREEMENTS 

WITH INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, AND OTHER NON-PROFIT 

ORGANIZATIONS--Table of Contents

 

                    Subpart C_Post-Award Requirements

 

Sec. 19.48  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, the Federal 

awarding agency may accept the



[[Page 171]]



bonding policy and requirements of the recipient, provided the Federal 

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 small 

purchase threshold) awarded by recipients shall include a provision to 

the effect that the recipient, the Federal awarding agency, 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 

appendix A to this part, as applicable.



                           Reports and Records