[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: 32CFR34.31]



[Page 218-219]

 

                       TITLE 32--NATIONAL DEFENSE

 

              CHAPTER I--OFFICE OF THE SECRETARY OF DEFENSE

 

PART 34_ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND AGREEMENTS WITH 

FOR-PROFIT ORGANIZATIONS--Table of Contents

 

                    Subpart B_Post-award Requirements

 

Sec.  34.31  Requirements.



    The following requirements pertain to recipients' procurements 

funded in whole or in part with Federal funds or with recipients' cost-

share or match:

    (a) Reasonable cost. Recipients procurement procedures shall make 

maximum practicable use of competition, or shall use other means that 

ensure reasonable cost for procured goods and services.

    (b) Pre-award review of certain procurements. Prior to awarding a 

procurement contract under an award, a recipient may be required to 

provide the grants officer administering the award with pre-award 

documents (e.g., requests for proposals, invitations for bids, or 

independent cost estimates) related to the procurement. Recipients will 

only be required to provide such documents for the grants officer's pre-

award review in exceptional cases where the grants officer judges that 

there is a compelling need to do so. In such cases, the grants officer 

must include a provision in the award that states the requirement.

    (c) Contract provisions. (1) 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.

    (2) All contracts in excess of the simplified acquisition threshold 

shall contain suitable provisions for termination for default by the 

recipient or for termination due to circumstances beyond the control of 

the contractor.

    (3) All negotiated contracts in excess of the simplified acquisition 

threshold shall include a provision permitting access of the Department 

of Defense, the Comptroller General of the United States, or any of 

their duly authorized representatives, to any books, documents, papers, 

and records of the contractor that are directly pertinent to a specific 

program, for the purpose of making audits, examinations, excerpts, and 

transcriptions.

    (4) All contracts, including those for amounts less than the 

simplified acquisition threshold, awarded by recipients and their 

contractors shall contain the



[[Page 219]]



procurement provisions of Appendix A to this part, as applicable.



                           Reports and Records