[Code of Federal Regulations]

[Title 32, Volume 1]

[Revised as of July 1, 2006]

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

[CITE: 32CFR32.48]



[Page 168-169]

 

                       TITLE 32--NATIONAL DEFENSE

 

              CHAPTER I--OFFICE OF THE SECRETARY OF DEFENSE

 

PART 32_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.  32.48  Contract provisions.



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

sound and



[[Page 169]]



complete agreement, the following provisions in all contracts. The 

following 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 

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 DoD 

Component may accept the bonding policy and requirements of the 

recipient, provided the grants officer 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 in 

Sec. Sec.  32.40 through 32.49, 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 Department of Defense, 

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 those for amounts less than the 

simplified acquisition threshold, by recipients and their contractors 

shall contain the procurement provisions of Appendix A to this part, as 

applicable.