[Code of Federal Regulations]

[Title 34, Volume 1]

[Revised as of July 1, 2006]

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

[CITE: 34CFR74.48]



[Page 122-123]

 

                           TITLE 34--EDUCATION

 

PART 74_ADMINISTRATION OF GRANTS AND AGREEMENTS WITH INSTITUTIONS OF 

HIGHER EDUCATION, HOSPITALS, AND OTHER NON-PROFIT 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 provisions must 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



[[Page 123]]



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

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, contracts must 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 must 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 Secretary 

may accept the bonding policy and requirements of the recipient, 

provided the Secretary has made a determination that the Federal 

Government's interest is adequately protected. If a determination has 

not been made, the minimum requirements are as follows:

    (1) A bid guarantee from each bidder equivalent to five percent of 

the bid price. The ``bid guarantee'' must 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 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 a 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, the bonds must 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 must include a provision to 

the effect that the recipient, ED, the Comptroller General of the United 

States, or any of their duly authorized representatives, must 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 must contain the procurement provisions of 

appendix A to this part, as applicable.



(Authority: 20 U.S.C. 1221e-3, 3474; OMB Circular A-110)



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