HomeMy WebLinkAboutContract 38885CITY SECRE
CONTRACT ~'6~Y·3ii8S-
TCEQ
FEDERALLY
FUNDED GRANT
AGREEMENT
Between
TEXAS COMMISSION ON
ENVIRONMENTAL QUALITY
and
CITY OF FORT WORTH
For
Air Pollution Control Services
State Contract No. 582-10-86 ~.._---i
OFFICIAL RECOR
CITVSECRETARY
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•
'i"'--"' City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 6/16/2009 -Ord. No. 18678-06-2009
DATE: Tuesday , June 16 , 2009 REFERENCE NO.: C-23606
LOG NAME: 52TCEQ_SEC105 2010 TO 2011
SUBJECT:
Authorize the Execution of a Texas Commission on Environmental Quality Federally Funded Grant
Agreement in an Amount Not to Exceed $308 ,856 .00 with the Texas Commission on Environmental Quality
for Air Pollution Control Services and Adopt Appropriation Ordinance
RECOMMENDATION:
It is recommended that the City Council :
1. Authorize the City Manager to execute the Texas Commission on Environmental Quality Federally
Funded Grant Agreement with the Texas Commission on Environmental Quality for air pollution control
services by the City with a maximum amount of $308 ,856 .00 for a two year term of September 1, 2009 ,
through August 31, 2011;
2. Authorize a non-interest bearing interfund loan from the Environmental Management Operation Fund to
the Grants Fund in the amount of $25,480.50 for interim financing for this grant pending contract
execution;
3. Authorize the use of $101 ,922 .00 from the General Fund as an in-kind match for the two year term of
September 1, 2009 , through August 31, 2011 ;
4. Adopt appropriation ordinance increasing estimated receipts and appropriations in the Grants Fund by
$206 ,934 .00 for grant years 2009-2010 through grant years 2010-2011 , subject to receipt of an executed
Contract ; and
5. Apply indirect costs at the most recently approved rate of 21.48 percent for the Environmental
Management Department.
DISCUSSION:
The Texas Commission on Environmental Quality (TCEQ) is the pass-through agency for all
Environmental Protection Agency (EPA) Section 105 Grant Funds . EPA Section 105 Grant Funds have
been received annually by the City Air Pollution Control Program in cooperat ion with TCEQ to maintain
and operate various ambient air monitoring stations . This includes daily monitoring of ozone and
particulate levels .
This grant requires a local in-kind match of $50 ,961 .00 per year . The City of Fort Worth (City) must
provide matching funds such that the combined federal and state share of the total funding for the Section
105 Grant shall not exceed 67 percent . The matching funds must be allocated per maintenance of effort
requirements for federal air pollution grants . The Environmental Management Department's proposed
Fiscal Year 2010 General Fund budget includes funds required for the in-kind match .
No City funds will be expended before the contract is approved . Upon approval and acceptance of the
grant , City funds will be expended before receipt of grant funds .
------------------·
FISCAL INFORMATION/ CERTIFICATION:
The Financial Management Services Director certifies that upon approval of the above recommendations,
r~i p ' f grant funds , adoption of the attached appropriation ordinance and execution of a Grant
greement , funds will be available in the current operating budget, as appropriated , in the Grants Fund
and will be reimbursed after expenditures are made . Upon execution of the Grant Agreement , the
interfund loan of $25,480.50 will be returned to the Environmental Management Operating Fund .
FUND CENTERS:
TO Fund/Account/Centers
2) GR76 220103 000412375000
3) GR76 517040 052412375020
3) GR76 488279 052412375000
4 ) GR76 451543 052412375000
4 GR 76 5 (VARIOUS) 052412375010
CERTIFICATIONS:
FROM Fund/Account/Centers
$25 ,4 80 .50 2) R103 136076 0000000
$101 .922 .00
$101 .922 .00
$206 .934 .00
$206 .934 .00
Submitted for City Manager's Office by: Fernando Costa (6122)
Br ian Boerner (664 7)
Michael Gange (6569)
Originating Department Head:
Additional Information Contact:
ATTACHMENTS
1. 52 TCEQ_SEC 1 O!i.d o~ (Public)
2 . Co rr 5 2T C EQ SEC105 20 1Q .do~ (CFW Internal)
$25 ,4 80 .50
--------
Contract No. 582-10-86411
TCEQFEDERALLYFUNDEDGRANTAGREEMENT
THIS AGREEMENT is by and between the Texas Commission on Environmental Quality (hereinafter
called TCEQ) and City of Fort Worth (hereinafter called PERFORMING PARTY).
TCEQ and PERFORMING PARTY, in consideration of the mutual covenants hereinafter set forth ,
agree as follows:
ARTICLE 1. WORK
1.1. PERFORMING PARTY shall complete all Work as specified or indicated in the Contract
Documents . The Work is generally described as follows:
Air Pollution Control Services performed within the jurisdiction of the City of Fort Worth Air Pollution
Control Program, as more fully described in the Scope of Work, which is attached hereto and
incorporated for all purposes .
1.2. Statutory authority for this Grant is for performing the work in the Current Appropriations
Act ; Tex . Water Code§§ 5.229 and 7 .351-7.358 ; and Tex. Health and Safety Code§§ 382 .033 and
382.111-382.115.
ARTICLE 2. CONTRACT TIMES
2.1. This Agreement shall begin on September 1, 2009 or date of last Contract signature ,
whichever is later, and shall terminate on full performance which is due on August 31, 2011. However,
certain reporting requirements of this Contract shall survive the termination of this Contract. This
Agreement shall immediately terminate at the end of any State fiscal year for which the Texas
Legislature, the U.S. Congress , and/or the U.S. Environmental Protection Agency (hereinafter referred
to as the "EPA") fails to appropriate and/or provide the funds necessary to perform pursuant to this
Agreement.
ARTICLE 3. CONTRACT AMOUNT
3.1. The total amount of this Agreement shall not exceed $308,856 .00 unless the parties amend
this amount in accordance with the Contract Documents. TCEQ and PERFORMING PARTY agree
that the maximum amount to be reimbursed by TCEQ for completion of the Work shall not exceed
$206,934 .00. The total amount of the Agreement is based upon the PERFORMING PARTY 's actual
allowable and eligible costs of performing the Work, contingent upon the Performing Party providing
and documenting Matching funds totaling $101,922.00 ($50,961 .00 maximum Match each year). The
1 of99
amount referenced above to be reimbursed by TCEQ , will be divided up over a two (2) year period
($103 ,467.00 maximum for each fiscal year). Upon receipt of funds from the EPA for a second year ,
the TCEQ will continue this Contract for the period of September 1, 2010 through August 31 , 2011.
3 .2. The term "Local Air Program" is defined as the eligible local air pollution program conducted
by PERFORMING PARTY under Section 382.0622 , Texas Health and Safety Code. The total
combined federal and State share of the funding for the PERFORMING PARTY's Local Air Program
shall not exceed 67% (sixty-seven percent) of the PERFORMING PARTY's total cost for the program ;
with the local share being based on the local dollars allocated pursuant to maintenance-of-effort
requirements for federal air pollution grants. The PERFORMING PARTY must provide Matching
funds such that the combined federal share , derived from Section 105 funding , and the State share,
derived from the current Appropriations Act (Rider 5), shall not exceed 67%, or the total amount of this
contract may be reduced proportionately so that this condition is met.
ARTICLE 4. PAYMENT PROCEDURES
4.1. PERFORMING PARTY shall submit Applications for Payment in accordance with the
General Conditions and Scope of Work (in the document titled" Contract Costs Budget").
ARTICLE 5. FUNDING
5 .1. Availability of Funds. The parties agree that this Agreement and all claims , suits , or
obligations arising under or related to this Agreement are subject to and limited to the availability of
funds appropriated by the Texas Legislature for the purposes of this Agreement or for the respective
claim, suit, or obligation, as applicable.
5.2. Source of Funds and Legal Authority. (This Agreement is funded through the Performance
Partnership Grant (PPG) pass-through funds from the U.S. EPA to TCEQ through the Current
Appropriations Act; Tex. Water Code§§ 5.229 AND 7.351-7.358 ; and Tex. Health and Safety Code
§§ 382.033 AND 382.111-382.115. The PERFORMING PARTY certifies that it has authority to
perform the work contracted for by authority granted in the Fort Worth City Code, Chapter 12 .5, Article
II, Fort Worth Environmental Protection and Compliance Ordinance. This Agreement is subject to the
Uniform Grant and Contract Management Act, Texas Government Code, Section 783.001 et seq., and
the Uniform Grant Management Standards for State Agencies , and Bulletins of the Office Management
and Budget (OMB-87.)
5.3 . PERFORMING PARTY agrees to place the above notices relating to availability of funds ,
the source of funds and legal authority in all Subgrants and subcontracts.
Contract Number 582-10-86411 Page 2 of 99
ARTICLE 6. PERFORMING PARTY'S REPRESENTATIONS
In order to induce TCEQ to enter into this Agreement PERFORMING PARTY makes the following
representations:
6.1. PERFORMING PARTY has examined and carefull y studied the Contract Documents .
6.2. PERFORMING PARTY is familiar with and understands all federal , State and local Laws and
Regulations that may affect cost, progress , performance or furnishing of the Work.
6.3. PERFORMING PARTY is aware of the general nature of work to be performed by TCEQ and
others that relates to the Work as indicated in the Contract Documents .
6.4. PERFORMING PARTY has correlated the information known to PERFORMING PARTY,
reports and drawings identified in the Contract Documents and all additional examinations,
investigations , explorations , tests, studies and data with Contract Documents.
6 .5. PERFORMING PARTY has given TCEQ written notice of all conflicts, errors , ambiguities or
discrepancies that PERFORMING PARTY has discovered in the Contract Documents and the written
resolution thereof by TCEQ is acceptable to PERFORMING PARTY, and the Contract Documents are
generally sufficient to indicate and convey understanding of all terms and conditions for performance
and furnishing of the Work.
6.6. PERFORMING PARTY agrees that it is not a vendor and that this Contract is not subject to the
Prompt Payment Act.
ARTICLE 7. CONTRACT DOCUMENTS
The Contract Documents which comprise the entire Agreement between TCEQ and PERFORMING
PARTY concerning the Work consist of the following:
7.1 . The TCEQ Form: Federally Funded Grant Agreement.
7.2. The General Conditions of the TCEQ Federally Funded Grant Agreement.
7 .3. The Federal Terms and Conditions
7.4 . Scope of Work.
A . Statement of Services
B. Deliverables
Contract Number 582-10-86411 Page 3 of 99
C. Contract Costs Budget Sheet
7.5. Other Documents.
EXHIBITS
A. Exhibit A-1: Funding Application Package
B. Exhibit A-2: EPA QNR-2 (March 2001)
C. Exhibit A-3: EPA QNR-5 (March 2001)
D . Exhibit A-4: Quarterly Report Checklist
FORMS
E. Form B-1:
F. Form B-2:
F . Form B-3:
G. Form B-4:
H. Form B-5:
I. Form B-6
J. Form B-7
K. Form B-8
L. Form B-9
M. Form B-10
N. Form B-11
0. Form B-12
HUB Progress Assessment Report
TCEQ STATE PURCHASE VOUCHER
TCEQ Invoice
Financial Status Report
Federal Conditions
Certification Regarding Debarment, Suspension, and Other
Responsibility Matters -Lower Tier
Certification Regarding Lobbying , Disclosure of Lobbying Activities
Cost or Price Summary and Instructions
EPA FORM 6100-2 (DBE Subcontractor Participation Form)
EPA FORM 6100-3 (DBE Subcontractor Performance Form)
EPA FORM 6100-4 (DBE Subcontractor Utilization Form)
Allowable Expenditure Guidelines
7.6. The following which may be delivered or issued after the Effective Date of the Agreement and
are not attached hereto: Quarterly Work Plans , all Written Amendments, and other documents
amending, modifying or supplementing the Contract Documents pursuant to the General Conditions.
7.7 . There are no Contract Documents other than those listed above in this Article. The Contract
Documents may be amended, modified or supplemented only as provided in the General Conditions .
ARTICLE 8. MISCELLANEOUS
8 .1 . Terms used in this Agreement which are defined in Article 1 of the General Conditions will have
the meanings indicated in the General Conditions.
8.2 . Notwithstanding any provisions relating to assignment in the Uniform Commercial Code, no
delegation by a party hereto of any duties or obligations nor assignment by a party hereto of any rights
under or interests in the Contract Documents will be binding on another party hereto without the written
consent of the party sought to be bound; and, specifically but without limitation, monies that may
Contract Number 582-10 -86411 Page 4 of 99
become due and monies that are due may not be assigned without such consent ( except to an extent that
the effect of this restriction may be limited by Law), and unless specifically stated to the contrary in any
written consent to an assignment, no assignment will release or discharge the assignor from an y duty or
responsibility under the Contract Documents. This Agreement is not transferable or otherwise
assignable by the PERFORMING PARTY without the written consent of the TCEQ and an y attempted
transfer without such consent is void.
8 .3. TCEQ and PERFORMING PARTY each binds itself, its partners , successors , assigns and
representatives to the other party hereto , its partners , successors , assigns and representatives in respect
to all covenants , agreements and obligations contained in the Contract Documents .
8.4 The parties hereby agree that this Agreement does not waive the State's sovereign immunity
relating to suit, liability, and the payment of damages. The parties further agree that all claims , suits or
obligations arising under or related to this Agreement are subject to and limited to the availability of
funds appropriated by the Texas Legislature for that respective claim , suit, or obligation.
8.5. Any provision of the Contract Documents held to be void or unenforceable under any Laws or
Regulations shall be deemed stricken, and all remaining provisions shall continue to be valid and
binding upon TCEQ and PERFORMING PARTY, who agree that Contract Documents shall be
reformed to replace such stricken provision or part thereof with a valid and enforceable provision that
comes as close as possible to expressing the intention of the stricken provision.
8.6. The PERFORMING PARTY acknowledges and agrees that because this Agreement has been
executed, and will be administered in Travis County, Texas , that in this sense, the Agreement is to be
performed in said County. The PERFORMING PARTY acknowledges and agrees that any permissible
cause of action involving this Agreement will arise solely in Travis County. If a legal action related to
this claim is permissible and there are two (2) or more counties of proper venue under the rules of
mandatory, general, or permissive venue , and one such county is Travis County, the PERFORMING
PARTY hereby agrees to venue in Travis County. This provision does not waive TCEQ's sovereign
immunity .
8.7. Any notice issued pursuant to these Contract Documents shall be addressed to the respective party
at the addresses set out below, or at such other address as they have theretofore specified by written
notice . Such notices shall be sent by certified mail , return receipt requested, or shall be delivered in
hand and a receipt provided therefore . Any notice or other written communication shall be considered
delivered five (5) days after the date postmarked, provided it is sent in accordance with this Article .
Contract Number 582-10-86411 Page 5 of 99
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•
•
•
ADDRESSES FOR NOTICE:
TCEQ:
Lloyd Lawrence,
(Printed Name) (Contract Manager)
Monitoring Operations Division
Texas Commission on Environmental Quality
P . 0. Box 13087 , MC-165
Austin, Texas 78711-3087
(Address)
PERFORMING PARTY:
T.C. Michael
(Printed Name) (Project Manager)
City of Fort Worth
Environmental Management Department
Air Program
1000 Throckmorton Street
Fort Worth, TX 76102
(Address )
IN WITNESS WHEREOF, TCEQ and PERFORMING PARTY have signed three (3) originals of this
Agreement. One (I) counterpart will be delivered to PERFORMING PARTY and two (2) counterparts
will be delivered to TCEQ.
This Agreement will be effective on September 1, 2009 , or upon execution by both Parties , whichever
is later.
Texas Commission on Environmental
Quality
Signature: ~ ~
Printed Nam~=adlier
Title: Deputy Director
Office of Compliance and Enforcement
Date: 1-/ 21-J UfJ1 ---+-, -----,t>-----=--~---
Contract umber 582-10-86411 Page 6 of 99
City of Fort Worth
Signatu:: ~-~Q
Printed Name: Fernando Costa
-----------
Title: Assistant City Manager
APPROVE D AS TO F ORM & LE GALITY:
By
Title: Assistant City Attorney
Texas Commi ss ion on Envi ronm ent a l Qua li ty
Co nt ract 582-I 0-864 I I
ATT EST :
Printed Name: --'-M~a=rt-'-'y'---'H'-'-e=n-'-d"'"'"r""'"ix'-------
Title : City Secretary
Date : lo\\ le\ O")
M&C : t -d\~L,Q\J,
GENERAL CONDITIONS OF THE TCEQ FEDERALLY FUNDED GRANT
AGREEMENT
ARTICLE 1. DEFINITIONS
Wherever used in these General Conditions or in the other Contract Documents the following terms
have the meanings indicated which are applicable to both the singular and plural thereof:
1.1. Accrued expenditures -means the charges incurred by the PERFORMING PARTY during a
given period requiring the provision of funds for : (1) goods and other tangible property received ; (2)
services performed by employees , and (3) other amounts becoming owed under programs for which no
current services or performance is required, such as annuities , insurance claims , and other benefit
payments .
1.2. Accrued income -means the sum of: (1) earnings during a given period from services performed
by the PERFORMING PARTY and goods and other tangible property deliverable to purchasers , and (2)
amounts becoming owed to the PERFORMING PARTY for which no current services or performance
is required by the PERFORMING PARTY.
1.3 . Acquisition Cost -of an item of purchased Equipment means the net invoice unit price of the
property including the cost of modifications , attachments , accessories , or auxiliary apparatus necessary
to make that property usable for the purpose for which it was acquired. Other charges such as the cost of
installation, transportation, taxes , duty or protective in-transit insurance , shall be included or excluded
from the unit Acquisition Cost in accordance with the PERFORMING PARTY's regular accounting
practices.
l .4. Addenda -written or graphic instruments issued prior to the execution of the Contract which
clarify, correct or change the Proposal Requirements or the Contract Documents.
1.5 . Administrative requirements -mean those matters common to grants in general , such as
financial management, kinds and frequency of reports , and retention of records. These are distinguished
from "programmatic" requirements , which concern matters that can be treated only on a program-by-
program or grant-by-grant basis , such as kinds of activities that can be supported by grants under a
particular program.
l .6. Agreement -refers to the form "TCEQ Federally Funded Grant Agreement" which contains the
salient terms of the Contract between TCEQ and the PERFORMING PARTY and covers the Work to
be performed; also includes any additional Contract Documents which may be attached to the
Agreement and made a part thereof as provided therein.
1.7. A ssessment -The evaluation process used to measure the performance or effectiveness of a
Contract Number 582-10-86411 Page 7 of 99
system and its elements, including Audit, Performance Evaluation, Management Systems Review , Peer
Review, Inspection, or Surveillance.
1.8 Audit-A systematic and independent examination to determine whether activities and related
results comply with planned arrangements and whether these arrangements are implemented effectively
and are suitable to achieve objectives.
1.9 Awarding Agency-means the TCEQ.
1.10 . Bonds -Bid , Performance and Payment bonds and other instruments of security.
1.11. Cash Contributions -means the PERFORMING PARTY's cash Outlay , including the Outlay of
money contributed to the PERFORMING PARTY or Subgrantee by other public agencies and
institutions , and private legislation, federal funds received from other assistance Agreements may be
considered as PERFORMING PARTY or Subgrantee Cash Contributions.
1.12 . Common Rule -means the Uniform Grant Management Standards which were promulgated by
the Texas Governor's Office of Budget and Planning pursuant to the Uniform Grant Conditions and
Management Act, Tex. Gov't Code Chapter 783.
. 1.13 . Contract -means ( except as used in the definitions for "Grant" and "Subgrant" in this Section
and except where qualified by "federal") a procurement Contract under a grant or Subgrant, and means a
procurement subcontract under a Contract.
1.14. Contract Documents -as set forth in the Agreement.
1.15. Contract Price -the monies payable by TCEQ to PERFORMING PAR TY for completion of the
Work in accordance with the Contract Documents as stated in the Agreement (subject to the provisions
of these General Conditions).
1.16 . Contract Times -the number of days or dates stated in the Agreement to complete the Work so
that it is ready for final payment.
1.17 . Cost Sharing or Match -means the value of the third party in-kind contributions and the portion
of the costs of a State assisted project or program not borne by the State .
1.18. Cost-type Contract -means a Contract or subcontract under a grant in which the PERFORMING
PARTY or Subcontractor is paid on the basis of the costs it incurs , with or without a fee.
1.19. DBE -Disadvantaged Business Enterprise , within the meaning of the provisions relating to
Contract Number 582 -10 -86411 Pa ge 8 of 99
businesses owned or controlled by socially and economically disadvantaged individuals in applicable
Federal Regulations (40 CFR Part 33 , 35 , and 40). The Environmental Protection Agency 's DBE
Program revises and replaces the Minority and Women Business Enterprise (MBE/WBE) Program.
1.20 . Defective -an adjective which when modifying the word Work refers to Work that is
unsatisfactory, faulty or deficient, in that it does not conform to the Contract Documents, or does not
meet the requirements of any inspection, reference standard, test on approval referred to in the Contract
Documents, or has been damaged prior to final payment.
1.21. Effective Date of the Agreement -the date indicated in the Agreement on which it becomes
effective, but if no such date is indicated it means the date on which the Agreement is signed and
delivered by the last of the two parties to sign and deliver.
1.22. Equipment -means tangible, nonexpendable, personal property having a useful life of more than
one year and an Acquisition Cost of $1 ,000 or more per unit. A PERFORMING PARTY may use its
own definition of equipment provided that such definition would at least include all equipment defined
above. A State Awarding Agency will advise a PERFORMING PARTY of the rules for capitalizing
equipment purchased from State funds and ultimate disposition thereof.
1.23. Expenditure Report -means ( 1) for nonconstruction Grants the "Financial Status Report" ( or
other equivalent report); and (2) for construction Grants , the SF-271 "Outlay Report and Request for
Reimbursement" (or other equivalent report).
1.24 . Final Completion -the Work is completed in the judgment of TCEQ.
1.25 . General Conditions -refers to the "General Conditions of the TCEQ Federally Funded Grant
Agreement."
1.26. Government -means a State agency or Local Government.
1.27. Grant -means an award of financial assistance , including cooperative Agreement, in the form of
money , or property in lieu of money , by the State to an eligible PERFORMING PARTY. The term
does not include technical assistance which provides services instead of money, or other assistance in
the form of revenue sharing , loans , loan guarantees, interest subsidies , insurance , or direct
appropriations . Also , the term does not include assistance , such as a fellowship or other lump sum
award , which the PERFORMING PARTY is not required to account for.
1.28. Grantee -means the Government to which a grant is awarded and which is accountable for the
use of the funds provided. The Grantee is the entire legal entity even if only a particular component of
the entity is designated in the Grant award document. Also means the PERFORMING PARTY.
Contract Number 582-10-86411 Page 9 of 99
1.29. H UB-Historically Underutilized Business as defined by Texas law. The State Purchasing and
General Services Act defines a Historically Underutilized Business as an entity with its principal place
of business in Texas in which fifty one percent (51 % ) or more of the corporation's stock ( or other
equitable securities) or partnership's assets and interest are owned by one or more economically
disadvantaged persons, who have a proportionate interest and actively participate in the corporation or
partnership control , operation, and management. If the business is a sole proprietorship , the
economically disadvantaged person must completely own, operate and control the business.
Economically disadvantaged persons include members of certain groups including Black Americans ,
Hispanic Americans, American Women, Asian Pacific Americans and Native Americans.
1.30. Inspection -An activity such as measuring , examining, testing , or gauging one or more
characteristics of an entity and comparing the results with specified requirements in order to establish
whether conformance is achieved for each characteristic.
1.31. Intellectual Property -1) any and all inventions , discoveries , improvements, or creations for
which copyright, trade secret, patent or other proprietary rights may be acquired, 2) any photographs,
graphic designs , plans, drawings , specifications, computer programs , computer files , documentation,
technical reports , operating manuals , or other copyrightable materials , and 3) any other work fixed in
any tangible medium of expression which can be perceived, reproduced, or otherwise communicated for
which copyright, trade secret, patent or other proprietary rights may be acquired.
1.32. Intellectual Property Rights -patent, trademarks , trade secret rights , confidential information
rights or any other proprietary rights to which a person may be entitled or may actually possess.
Intellectual Property Rights include all rights of ownership and original authorship throughout the
world.
1.33. ISOIIEC -The International Organization for Standardization and the International
Electrotechnical Commission.
1.34. Laws and R egulations; Laws or Regulations -any and all applicable laws , rules , regulations ,
ordinances, codes and orders of any and all Governmental bodies, agencies , authorities and courts
having jurisdiction.
1.35. Liens -liens , charges , security interests or encumbrances upon Real Property or personal
property.
1.36. Local Governm ent -means a county, municipality, city, town, township, local public authority
(including public and Indian housing agencies under the United States Housing Act of 193 7 , 42 U.S.C .
§ 143 7 et seq.) school district, special district, intrastate district, council of Governments (whether or not
incorporated as a nonprofit corporation under State law), any other regional or interstate Government
entity, or any agency of instrumentality of a local Government.
Contract Number 582-10-86411 Page 10 of 99
1.3 7. Major Change -any change in the Work that meets the requirements of Article 6 , Section 6.2 of
the General Conditions of this Agreement.
1.38. Management Systems Review (MSR) -The qualitative assessment of a data collection operation
and/or organization(s) to establish whether the prevailing quality management structure , policies,
practices, and procedures are adequate for ensuring that the type and quality of data needed are
obtained.
1.39. MBEI WBE (or MWBE) -Minority Business Enterprise / Women Business Enterprise. The
MBE/WBE program falls under the umbrella of the Federal DBE program , which includes small
businesses and veterans .
l .40. Minor Change -a written document which provides for minor changes in the Work in
accordance with these General Conditions , but which does not involve a change in the Contract Price or
the Contract Times.
1.41. Nonconformance -A deficiency in characteristic, documentation, or procedure that renders the
quality or an item or activity unacceptable or indeterminate; non-fulfillment of a specified requirement.
1.42. Notice of Award -the written notice by TCEQ to an apparent successful Applicant stating that
upon compliance by the apparent successful Applicant with the conditions precedent enumerated
therein, within the time specified, TCEQ will sign and deliver the Agreement.
1.43. Obligations -means the amount of Work performed by the PERFORMING PARTY during a
given period that may result in reimbursement by the TCEQ during the same or a future period.
1.44. Outlay-(expenditures) mean charges made to the project or program. They may be reported
on a cash or accrual basis. For reports prepared on a cash basis , outlays are the sum of actual cash
disbursement for direct charges for goods and services , the amount of indirect expense incurred, the
value of in-kind contributions applied, and the amount of cash advances and payments made to
PERFORMING PARTY and Subgrantees. For reports prepared on an accrued expenditure basis,
outlays are the sums of actual cash disbursements , the amount of indirect expense incurred, the value of
in-kind contributions applied, and the new increase (or decrease) in the amounts owed by the
PERFORMING PARTY for goods and other property received, for services performed by employees,
contractors , Subgrantees, Subcontractors, and other payees , and other amounts becoming owed under
programs for which no current services or performance are required, such as annuities , insurance
claims, and other benefit payments.
1.45. Peer Review -A documented, critical review of work generally beyond the state of the art or
characterized by the existence of potential uncertainty. The peer review is conducted by qualified
individuals (or organizations) that are independent of those who performed the work but are equivalent
in technical expertise (i.e., peers) to those who performed the original work. The peer review is
Contract Number 582-10-86411 Page 11 of 99
conducted to ensure that act1v1t1es are technically adequate , competently performed , properly
documented, and satisfy established technical and quality requirements. The peer review is an in -depth
assessment of the assumptions , methodology, acceptance criteria, and conclusions pertaining to specific
work and of the documentation that supports them. Peer reviews provide an evaluation of a subject
where quantitative methods of anal ysis or measures of success are unavailable or undefined , such as in
research and development.
1.46. Percentage of completion method -refers to a system under which payments are made for Work
according to the percentage of the completed Work, rather than to the PERFORMING PARTY's cost
incurred.
1.4 7. P erformance Evaluation -A type of audit in which quantitative data generated in a measurement
system are obtained independently and compared with routinel y obtained data to evaluate the
proficiency of an analyst or laboratory.
1.48. Prior Approval -means documentation evidencing consent prior to incurring a specific cost.
1.49 . Produced-participle or passive verb which when used in connection with the term Intellectual
Property means conceived, developed, implemented, discovered, invented, first actually reduced to
practice or otherwise produced .
1.50 . Project -the total body of services rendered of which the Work to be provided under the
Contract Documents may be the whole , or a part as indicated elsewhere in the Contract Documents.
1.51. Project Representative -the Project Representatives of the TCEQ and the PERFORMING
PARTY is designated in the Supplementary Conditions.
1.52. Quality Assurance (QA ) -An integrated system of management activities involving planning ,
implementing, assessment, reporting, and quality improvement to ensure that a process , item, or service
is of the type and quality needed and expected by the customer.
1.53 . Quality Assurance Project Plan (QAPP) -A formal document describing in comprehensive
detail the necessary quality assurance , quality control , and other technical activities that must be
implemented to ensure that the results of the Work performed will satisfy the stated performance
criteria.
1.54 . Quality Control (QC) -The overall system of technical activities that measures the attributes
and performance of a process , item , or serv ice against defined standards to verify that they meet the
stated requirements established by the customer; operational techniques and activities that are used to
fulfill requirements for quality.
Contract Number 582 -10 -86411 Page 12 of 99
1.55. Quality Management Plan (QMP) -A formal document or manual , usually prepared once for
an organization, that describes the quality system in terms of organizational structure , functional
responsibilities of management and staff, lines of authority , and required interfaces for those planning,
implementing, and assessing all activities conducted.
1.56. Quality System -A structured and documented management system (1) describing the policies,
objectives, principles , organizational authority, responsibilities , accountability, and implementation plan
of an organization for ensuring quality in its work processes , products (items), and services and (2)
providing the framework for p lanning, implementing, and assessing work performed by the organization
and for carrying out required quality assurance and quality control.
1.57 . Quality System Audit -A systematic and independent examination and evaluation to determine
whether an organization 's quality system complies with planned arrangements and whether these
arrangements are implemented effectively and are suitable for achieving objectives.
1.58. Real Property -means land, including land improvements, structures and appurtenances thereto ,
exclu ding movable machinery and equipment.
1.59 . Share -when referring to the TCEQ's portion of Real property, Equipment or Supplies , means
the same percentage as the TCEQ's portion of the acquiring party's total costs under the Grant to which
the Acquisition Cost of the property was charged. Only costs are to be counted, not the value of third
party in-kind contributions.
l .60 . Standards -refers to the Uniform Grant Management Standards.
1.61. State -means the State of Texas.
1.62. Subcontractor -an individual, firm , or corporation having a direct contract with PERFORMING
PARTY or with any other Subcontractor for the performance of a part of the Work.
1.63 . Sub grant -means an award of financial assistance in the form of money, or property in lieu of
money, made under a grant by the PERFORMING PARTY to an eligible Subgrantee. The term
includes financial assistance when provided by a contractual legal Agreement, but does not include
procurement purchases, nor does it include any form of assistance which is excluded from the definition
of "Grant."
1.64 . Subgrantee -means the Government or other legal entity to which a Subgrant is awarded and
which is accountable to the PERFORMING PARTY for the use of the funds provided. "Subgrantee" is
synonymous with "subrecipient" and refers to any entity receiving grant or contract funds from or
through a State agency.
Contract Number 582-10 -86411 Pag e 13 of 99
1.65. Supplementary Conditions -synonymous with "Program Conditions ," the part of the Contract
Documents which amends or supplements these General Conditions.
1.66. Supplies -means all tangible personal property other than "Equipment" as defined in these
General Conditions.
1.67 . Surveillance -Continual or frequent monitoring and verification of the status of an entity and the
analysis of records to ensure that specific requirements are being fulfilled.
1.68. Su spension -means , depending on the context, either (1) temporary withdrawal of the authority
to obligate Grant funds pending corrective action by the PERFORMING PARTY, or Subgrantee or a
decision to terminate the Grant, or (2) an action taken by a TCEQ official in accordance with the
Contract Documents, State or Federal Law, or Regulations to immediately exclude a person from
participating in Grant transactions for a period, pending completion of an investigation and such legal or
debarment proceedings as may ensue.
1.69. Technical Systems Audit (FSA ) -a thorough, systematic , on-site qualitative audit of facilities ,
equipment, personnel , training procedures , record keeping, data validation, data management, and
reporting aspects of a system.
1. 70. Termination -means permanent withdrawal of the authority to obligate previously-awarded
Grant funds before that authority would otherwise expire. It also means the voluntary relinquishment of
that authority by the PERFORMING PARTY or Subgrantee. "Termination" does not include: (1)
withdrawal of funds awarded on the basis of the PERFORMING PARTY's underestimate of the
Unobligated Balance in a prior period; (2) withdrawal of the Unobligated Balance as of the expiration
of a Grant ; (3) refusal to extend a Grant or award additional funds to make a competing or
noncompeting continuation, renewal , extension or supplemental award ; or ( 4) voiding of a Grant upon
determination that the award was obtained fraudulently or was otherwise illegal or invalid from
inception .
1. 71. Terms of a Grant or Subgrant -mean all requirements of the Grant or Subgrant, whether
contained in Statutes , Regulations , or the Contract Documents.
1. 72. Third party in-kind contributions -mean property or services which benefit a State assisted
project or program and which are contributed by third parties without charge to the PERFORMING
PARTY, or a Cost-type PERFORMING PARTY under the Grant Agreement.
1.73. TCEQ-the Texas Commission on Environmental Quality.
1.74. Uniform Grant Management Standards (UGMS) -means the Uniform Grant Management
Standards which were promulgated by the Texas Governor's Office of Budget and Planning pursuant to
Contract Number 5 82 -10 -86411 Page 14 of 99
the Uniform Grant Conditions and Management Act, Tex. Govt. Code Chapter 783.
1. 7 5. Unliquidated Obligation s -for reports prepared on a cash basis mean the amount of Obligations
incurred by the PERFORMING PARTY that has not been paid. For reports prepared on an accrued
expenditure basis they represent the amount of Obligations incurred by the PERFORMING PARTY for
which an Outlay has not been recorded.
1.76. Unobligated Balance -means the portion of the funds authorized by the TCEQ that has not been
obligated by the PERFORMING PARTY, and is determined by deducting the cumulative Obligations
from the cumulative funds authorized .
1. 77 . Work -the entire completed services or the various separately identifiable parts thereof required
to be furnished under the Contract Documents. Work includes and is the result of performing or
furnishing labor, services , m aterials or equipment as required by the Contract Documents .
1.78. Work Plan -the Work Plan submitted by the Applicant a s amended at the time of award and
subsequently according to procedures set forth in these General Conditions . The Work Plan consists of
written technical descriptions of, equipment, schedules , standards & workmanship as applied to the
Work and certain administrative details applicable thereto.
l.79 . Written Amendment -a document signed by PERFORMING PARTY and TCEQ which
authorizes an addition, deletion, or revision in the Work, or an adjustment in the Contract Price or the
Contract Times , issued on or after the Effective Date of the Agreement.
ARTICLE 2. PRELIMINARY MATTERS
Commencement of Contract Term
2.1. The Contract Term will commence on the Effective Date of the Agreement.
ARTICLE 3. CONTRACT DOCUMENTS: INTENT
Intent
3 .1. The Contract Documents comprise the entire Contract between TCEQ and PERFORMING
PAR TY concerning the Work. The Contract Documents are complementary ; what is called for by one is
as binding as if called for by all. The Contract Documents will be construed in accordance with the laws
of the State of Texas.
3.2. It is the intent of the Contract Documents to describe a functionally complete Project (or part
thereof) to be constructed in accordance with the total Contract. Any Work, materials or equipment that
may reasonably be inferred from the Contract Documents or from prevailing custom or trade usage as
being required to produce the intended result will be furnished and performed whether or not
Contract Number 582-10-86411 Page 15 of 99
specifically called for. When words or phrases which have a well-known technical or pollution cleanup
industry or trade meaning are used to describe Work, materials or equipment, such words or phrases
shall be interpreted in accordance with that meaning.
3.3. Whenever in the Contract Documents the terms "as ordered," "as directed ," "as required ," "as
allowed ," "as approved" or terms of like effect or import are used , or the adjectives "reasonable",
"suitable ," "acceptable ," "proper" or "satisfactory" or adjectives of like effect or import are used to
describe a requirement, direction, review or judgment ofTCEQ as to the Work, it is intended that such
requirement, direction, review or judgment will be solely to evaluate , in general , the completed Work
for compliance with the requirements of and information in the Contract Documents and conformance
with the design concept of the completed Project as a functioning whole as shown or indicated in the
Contract Documents (unless there is a specific statement indicating otherwise). The use of any such
term or adjective shall not be effective to assign to TCEQ any duty or authority to supervise or direct the
furnishing or performance of the Work or any other provision of the Contract Documents.
ARTICLE 4. PERFORMING PARTY'S RESPONSIBILITIES
4.1. The PERFORMING PARTY shall be responsible for the professional quality , technical
accuracy , timely completion and the coordination of all services and other Work furnished by the
PERFORMING PARTY under this Agreement.
Supervision and Superintendence:
4.2. PERFORMING PARTY shall supervise , inspect and direct the Work competently and
efficiently, devoting such attention thereto and applying such skills and expertise as may be necessary to
perform the Work in accordance with the Contract Documents. PERFORMING PAR TY shall be solely
responsible for the means , methods , techniques , sequences and procedures of the Work.
PERFORMING PARTY shall ensure that the completed Work complies accurately with the Contract
Documents.
PERFORMING PARTY's Representative
4.3. The PERFORMING PARTY will identify in writing the person authorized to receive direction
from the TCEQ , to manage the Work being performed, and to act on behalf of the PERFORMING
PARTY.
4.4. The PERFORMING PARTY agrees to make arrangements necessary to ensure that its
authorized Representative , or someone to whom that person has delegated his or her authority , is
available at all times for consultation with the TCEQ. Written notice of any such delegation shall be
provided to the TCEQ.
Personnel
4 .5. PERFORMING PARTY shall provide competent, suitably qualified personnel to perform the
Work as required by the Contract Documents. PERFORMING PARTY shall at all times maintain good
discipline and order on the Project.
Contract Number 582-10-86411 Page 16 of 99
Employment Practices
4.6. The PERFORMING PARTY agrees that in the performance of this Contract, it will not
discriminate against any employee or applicant because of race , religion, color, sex, age, or national
origin and it will comply with Executive Order 11246 , entitled "Equal Employment Opportunity," as
amended by Executive Order 113 75 , and as supplemented in Department of Labor Regulations ( 41 CFR
Part 60). The PERFORMING PARTY assures that no person will , on the grounds ofrace, creed , color,
disability, national origin, sex , political affiliation or beliefs , be excluded from , be denied the benefit of,
or be subject to discrimination under any program or activity funded in whole or part under this
Contract.
Americans with Disabilities Act
4 .7. The PERFORMING PARTY shall comply with all applicable requirements of the Americans
with Disabilities Act of 1990, 42 U.S.C. §12131 et seq., as well as State and Federal statutes relating to
nondiscrimination which include, but are not limited to , those listed in the Uniform Grant Management
Standards.
Materials & Equipment
4.8. Unless otherwise specified in the Contract Documents, PERFORMING PARTY shall furnish
and assume full responsibility for all materials , equipment, labor, transportation, tools, appliances, fuel ,
power, li ght, heat, telephone , water, sanitary facilities , temporary facilities and all other facilities and
incidental s necessary for the furnishing , performance, testing, start-up and completion of the Work.
4.9. All materials and equipment shall be of good quality and new, except as otherwise provided in
the Contract Documents. All materials and equipment shall be applied, installed, connected, erected,
used, cleaned and conditioned in accordance with instructions of the applicable Supplier, except as
otherwise provided in the Contract Documents.
Title to and Management of Equipment
4.10. Subject to the obligations and conditions set forth in this Contract, title to all equipment
acquired under this Contract shall vest, upon acquisition or construction, with the PERFORMING
PARTY.
4.11. The PERFORMING PARTY agrees to conduct phy sical property inventories , to maintain
property records and necessary control procedures , and to provide adequate maintenance with respect to
all equipment acquired under this Contract.
4.12. The PERFORMING PARTY may develop and use its own property management system which
must conform to all applicable State and local Laws , rules and regulations. If an adequate system for
accounting for personal property owned by the PERFORMING PARTY or its subcontractor is not in
place or currently in use, the Property Accounting System Manual issued by the Texas Comptroller of
Public Accounts shall be used as a guide for establishing such a system .
Contract Number 582-10-86411 Page 17 of 99
4.13. Property records must be maintained that include a description of the property, a serial number
or other identification number, the source of property , identification of the title holder, the acquisition
date , the cost of the property , percentage of federal participation in the cost of the property , the location,
use and condition of the property , and any ultimate disposition data including the date of disposal and
sale price of the property.
4.14 . A physical inventory of all equipment acquired or replaced under this Contract having an initial
purchase price of One Thousand Dollars ($1 ,000) or more shall be conducted no less frequently than
once every two (2) years and the results of such inventories reconciled with the appropriate property
records. Property control procedures utilized by the PERFORMING PARTY shall include adequate
safeguards to prevent loss , damage , or theft of the acquired property. Any loss , damage or theft shall be
investigated . The PERFORMING PARTY agrees to develop and carry out a program of property
maintenance as necessary to keep both originally acquired and any replaced property in good condition,
and to utilize proper sales procedures to ensure the highest possible return, in the event such equipment
is sold.
4.15 . All equipment acquired or replaced under this Contract shall be used for the duration of its
normally expected useful life to support the purposes of this Contract whether or not the original
Projects or Programs continue to be supported by Federal or State funds.
4.16 . Subject to the provisions of this Article, if no longer needed for the support of the authorized
Projects or Programs referred to in Paragraph 4 .15 of this Article , equipment acquired under this
Contract, whether original or replacement, may be used in support of other activities currently or
previously supported by the TCEQ or the Federal Government, or alternatively , may be made available
for use on other Projects or Programs , providing such other use will not interfere with the work on those
Projects or Programs for which such equipment was originally acquired.
4.17 . The PERFORMING PARTY may for the purpose of replacing various equipment utilized under
this Contract, either trade in or sell the equipment or property referred to in Paragraph 4.10 and use the
proceeds of such trade-in or sale to offset the cost of acquiring needed replacement property.
4.18. Items of equipment with a current per-unit fair market value ofless than $1 ,000 may be retained ,
sold or otherwise disposed of with no further obligation to the Awarding Agency. Methods used to
determine per-unit fair market value must be documented, kept on file and made available to the
A warding Agency upon request.
Items of equipment with a current per-unit market value of $1 ,000 or more may be retained or sold and
the A warding Agency shall have a right to an amount calculated by multiplying the current market value
or proceeds from sale by the Awarding Agency's share of the equipment. Methods used to determine
per-unit fair market value must be documented, kept on file and made available to the Awarding
Agency upon request.
4.19 . If prior to the termination date of this Contract, the PERFORMING PARTY or its
Subcontractors or Subgrantees determine that any equipment acquired with funds provided as a result of
this Contract is no longer needed for support of the Programs or Projects referred to in Paragraph 4.15 ,
the TCEQ may require the PERFORMING PARTY to transfer title and possession to such equipment
Contract Number 582-10 -86411 Page 18 of 99
to the TCEQ or a third party named by the TCEQ .
4.20. The PERFORMING PARTY agrees that if a determination is made within six (6 ) years of the
initiation date of thi s Contract that any equipment acquired w ith fund s pro vided as a result of this
Contract is no longer needed for support of the Programs or Projects referred to in Paragraph 4 .15 , the
TCEQ has a right to require the transfer of any equipment havin g a fair market, per unit v alue of more
than one thousand dollars ($1 ,000 ) to the TCEQ or a third party named by the T CEQ.
4 .21. The PERFORMING PARTY shall not grant or allo w to a third party a securi ty interest in any
original or replacement equipment purchased or constructed with funds made av ailable to
PERFORMING PARTY under thi s Contract.
4 .22. The PERFORMING PARTY agrees that, in the ev ent any funds prov ided under this Contract
are in turn awarded to any Subcontractor for the purchase or acquisition of any equipment by such other
party, the PERFORMING PARTY's contract with that Subcontractor shall include the requirements set
forth in these General Conditions .
Substitutes and "or-Equal" Items:
4 .23. Whenever an item of material or equipment is specified or described in the Contract Documents
by using the name of a proprietary item or the name of a particular Supplier, the specification or
description is intended to establish the type , function and quality required. Unless the specification or
description contains or is followed by words reading that no like , equivalent or "or-equal" item or no
substitution is permitted, other items of material or equipment of other Suppliers may be accepted by
TCEQ .
4.24. Substitute Methods or Procedures: If a specific means , method, technique , sequence or
procedure is shown or indicated in and expressl y required by the Contract Documents, PERFORMING
PARTY may furnish or utilize a substitute means , method, technique , sequence or procedure acceptable
to TCEQ . PERFORMING PAR TY shall submit sufficient information to allow TCEQ , in TCEQ's sole
discretion , to determine that the substitute proposed is equi valent to that expressly called for by the
Contract Documents .
Concerning Subcontractors, Suppliers and Others
4.25. All contractual expenditures using funds prov ided under this Agreement shall meet all
procurement laws and regulations applicable to the PERFORMING PAR TY and Subcontractor and the
Uniform Grant and Contract Management Act and the Uniform Grant Management Standards. Note
that competiti ve bidding will generally be required for contracts other than interlocal and interagency
contracts , which are under T EX. Gov. CODE , Chapter 791 et seq. Note also that the Common Rule of
0MB Circular A-102 , as adopted in the Uniform Grant Management Standards, precludes the use of the
cost plus a percentage of cost method of contracting.
4 .26 . The PERFORMING PARTY shall forward any proposed subagreement for the performance of
Work required under this Contract's Scope of Work to TCEQ 's Project Representati v e prior to
execution of the subagreement. The TCEQ may , within twenty-one (21) days of receipt of the
proposed subagreement, pro v ide written notice (fax acceptable) to the PERFORMING PARTY
Contract Number 582-10-86411 Page 19 of99
questioning whether the subagreement is for a legitimate purpose relating to the satisfaction of this
Agreement or has been procured in accordance with the minimum standards of the UGCMA. The
PERFORMING PARTY shall not enter into a questioned subagreement until the TCEQ has withdrawn
all questions raised in the notice. Neither the TCEQ's failure to question a subagreement nor its
subsequent withdrawal of any questions raised regarding a subagreement shall in any way imply the
TCEQ's approval of the subagreement's purpose or method of procurement of the subagreement.
Further, the terms of this provision do not in an y way restrict the TCEQ's rights under this Agreement to
subsequently refuse reimbursement for expenses incurred pursuant to the subagreement. The
PERFORMING PARTY may require a bid bond to protect the local and State interests by assuring that
a bidder will , upon acceptance , execute all required contractual documents within the time period
specified.
4.27. No employee , officer or agent of the PERFORMING PARTY shall participate in selection, or
in the award or administration of a subagreement supported by this Contract if a conflict of interest, real
or apparent, would be involved. Such a conflict arises when:
4.27.1. The employee , officer or agent ,
4.27.2. Any member of his immediate family ,
4.27.3. His or her partner, or
4.27.4 . An organization which employs , or is about to employ any of the above ,
has financial or other interest in the Subcontractor selected. The officers , employees or agents will
neither solicit nor accept gratuities , favors or anything of monetary value from contractors , potential
contractors , or parties to subcontracts. To the extent permitted by State or local Law or Regulations ,
such standards of conduct will provide for penalties , sanctions , or other disciplinary actions for
violations of such standards by the PERFORMING PARTY officers , employees , or agents , or by
contractors or their agents. See Uniform Grant Management Standards, Part III , Subpart C ,
Sec._.36(3).
4.28. The PERFORMING PARTY shall be responsible for the management and fiscal monitoring of
all Subcontractors and Subgrantees. The PERFORMING PARTY shall monitor its Subcontractors and
Subgrantees to ensure that the Subcontractors and Subgrantees are operating consistently with
applicable Laws and Regulations , applicable contracting policies , and these Contract Documents . The
PERFORMING PARTY shall ensure that all Subcontractors and Subgrantees comply with all record
keeping and access requirements set forth in these Contract Documents. The TCEQ reserves the right
to perform an independent audit of all Subcontractors and Subgrantees.
PERFORMING PARTY, Subcontractors and Subgrantees shall implement and maintain a Quality
Assurance Program that addresses quality-related activities performed under this Contract and
conforms to the American National Standards Institute (ANSI) /the American Society for Quality
(ASQ) E4-2 Quality Systems for Environmental Data and Technology Programs -Specification
with Guidance for Use , the U.S Environmental Protection Agency (EPA) Requirem ents for Quality
Management Plans EPA QA/R-2 and with the TCEQ Quality Management Plan. The TCEQ ,
Quality Assurance specialists , or any of their authorized representatives shall have access to all such
Work activities , monitors , records , documents and other evidence for the purpose of management
systems review, inspection, audit , surveillance , peer re view, excerpts, transcriptions and/or copying
Contract Number 582-10-86411 Page 20 of 99
during normal business hours. The PERFORMING PARTY shall provide proper access .
Laboratory data produced on or after July 1, 2008 , must be produced by a laboratory accredited by
TCEQ according to Title 30 Texas Administrative Code (TAC) Chapter 25 (relating to
Environmental Testing Laboratory Accreditation and Certification) Subchapters A and Bas
amended, for the matrices , methods , and parameters of analysis , unless TCEQ agrees in writing to
allow one of the regulatory exceptions specified in 30 TAC §25 .6.
4.29. Funds provided by the TCEQ pursuant to this Agreement that are paid to the Subcontractor shall
be used by the Subcontractor solely to satisfy the purposes of the Agreement.
Procurements
4.30. All procurements by the PERFORMING PARTY of goods and/or seryices under this
Agreement shall be conducted in a manner providing full and open competition in accordance with
Subpart C , Sec._.36, Subsections (b) through (i) of Part III ofUGMS.
4 .31. PERFORMING PARTY shall perform a cost or price analysis in connection with all
procurements in excess of $2 ,000 which are not competitively procured. A cost analysis will also be
required when adequate price competition is lacking and for sole source procurements, unless the
reasonableness of the price can be established on the basis of a catalog or market price. Failure to
follow these requirements for providing the greatest possible competition in procurement is grounds for
disallowance of costs for reimbursement.
4.32. All Subgrants awarded by the PERFORMING PARTY under this Agreement shall be in
accordance with Chapter 2261 Texas Government Code and Part III Subpart C , Sec._.3 7, Subsection
(b) ofUGMS.
Historically Underutilized Businesses
4.33. State of Texas certified Historically Underutilized Businesses (HUBs) are certified DBEs.
PERFORMING PARTY agrees that the requirements relating to DBEs, including those under Article 8
of the Federal Terms and Conditions of this Contract, also apply to HUBs.
4.34. PERFORMING PARTY will submit a completed HUB Progress Assessment Report with each
reimbursement request submitted. At a minimum this report shall include the name of the DBE, a
description of the Work, services or materials provided , the amount paid to the DBE , and the name and
telephone number of a contact person within the DBE.
4 .3 5. PERFORMING PAR TY shall require its Subcontractors to take the actions listed in Article 8 of
the Federal Terms and Conditions , 5.1 -5.8 in all of its subcontracts that contemplate the letting of
lower-tier subcontracts.
4 .36. PERFORMING PARTY's failure to comply with this Article shall be grounds for termination for
Contract Number 582-10-86411 Page 21 of 99
cause in accordance with the Article entitled, "Termination."
Intellectual Property Requirements
4.37. Intellectual Property
4.37.1. Royalties and Patent Fees. PERFORMING PARTY shall pay all license fees and
royalties and assume all costs incident to the use or possession in the performance of the Work
or the incorporation in the Work of any Intellectual Property.
4 .3 7 .2. Disclosure of Intellectual Property Produced during the Work. PERFORMING PAR TY
shall promptly notify TCEQ and EPA of all Intellectual Property which PERFORMING
PAR TY or PERFORMING PAR TY's employees , Subcontractors, or Subcontractor's employees
may produce, either solely or jointly with others , during the course of the Work. In addition,
PERFORMING PARTY shall promptly notify TCEQ of all Intellectual Property to which
PERFORMING PAR TY may acquire rights in connection with the performance of the Work.
Any notification under this Paragraph shall contain sufficient technical detail to convey a clear
understanding of the Intellectual Property, and shall identify any publication, sale , public use , or
impending publication. Promptly upon request, PERFORMING PARTY shall supply such
additional information as TCEQ may request.
4.37.3 .. If PERFORMING PARTY fails to protect any Intellectual Property Rights in the
Intellectual Property produced in the course of performing the Work, TCEQ shall have full
authority to protect, assume and retain all Intellectual Property Rights in any and all such
Intellectual Property.
4.37.4. PERFORMING PARTY agrees that PERFORMING PARTY, its agents, and its
employees shall not in any manner use, sell, distribute , disclose or otherwise communicate any
portion of Intellectual Property owned by or licensed to TCEQ , except in the course of
performing the Work, unless PERFORMING PARTY has independent Intellectual Property
Rights to such Intellectual Property.
4.3 7 .5. Grant of License. With respect to such Intellectual Property as is (i) incorporated in the
Work ( other than Intellectual Property for which TCEQ already possesses equal or greater
Intellectual Property Rights by virtue of this Agreement or otherwise), (ii) Produced by
PERFORMING PARTY or PERFORMING PARTY's employees, Subcontractors , or
Subcontractor's employees during the course of performing the Work, or (iii) specifically
identified in the Supplemental Conditions as Intellectual Property to which Intellectual Property
Rights are granted pursuant to this Paragraph, PERFORMING PARTY hereby grants to TCEQ
(i) a nonexclusive, perpetual , irrevocable, enterprise-wide license to reproduce , publish, or
otherwise use such Intellectual Property and associated use documentation, and (ii) a
nonexclusive, perpetual , irrevocable , enterprise-wide license to authorize others to reproduce ,
publish, or otherwise use such Intellectual Property for TCEQ's purposes.
4.37.6. Modification; Derivative Works. TCEQ shall have the right, in its own discretion, to
independently modify any Intellectual Property to which license is granted herein for TCEQ's
own purposes and use , through the services of its own employees or independent contractors.
Contract Number 582-10-86411 Page 22 of 99
TCEQ shall own all Intellectual Property Rights to such modifications. PERFORMING
PAR TY shall not incorporate any such modifications into its Intellectual Property for
distribution to third parties unless it first obtains a license from TCEQ.
4.37.7 . PERFORMING PARTY shall comply with all Laws and Regulations relating to
Intellectual Property. PERFORMING PARTY represents and warrants to TCEQ that
PERFORMING PARTY will not infringe any Intellectual Property Right of any third party.
PERFORMING PARTY further represents and warrants to TCEQ that in the course of
performing the Work it will not use or possess any Intellectual Property owned by a third party
without paying any required royalty or patent fees . PERFORMING PARTY warrants that it has
full title in and ownership of the Intellectual Property and any enhancements , updates or other
modifications , or that it has full power and authority to grant all licenses granted herein, and that
such license use by the TCEQ will in no way constitute an infringement or other violation of
any Intellectual Property right of any third party. The PERFORMING PARTY warrants that it
shall have, throughout any applicable license term hereunder, free and clear title to , or the right
to possess , use, sell , transfer, assign , license , or sublicense, products that are licensed or
provided hereunder to the TCEQ by PERFORMING PARTY. Except as permitted in the
Contract Documents , PERFORMING PARTY shall not create or permit the creation of any
lien, encumbrance , or security interest in the Work or any part thereof, or any product licensed
or provided hereunder to TCEQ for which title has not yet passed to TCEQ , without the prior
written consent of TCEQ. PERFORMING PARTY represents and warrants to TCEQ that
neither it nor any other company or individual performing the Work is under any obligation to
assign or give to any third party any Intellectual Property Rights granted or assigned to TCEQ ,
or reserved by TCEQ , pursuant to the Contract Documents.
4.37.8 . To the fullest extent permitted by Laws and Regulations , PERFORMING PARTY shall
indemnify and hold harmless TCEQ , and its officers , directors , employees and agents , as more
fully specified in these General Conditions , from and against all fines , penalties , claims ,
damages , losses, demands, judgments, settlements , punitive damages , costs of suit , attorneys'
fees and delays to the contractors , whether arising in tort or otherwise , and whether the parties
are individually or jointly responsible from any damages , that arise out of, result from or relate
to any infringement of property, contractual , or employment rights or Intellectual Property
Rights incident to the use in the performance of the Work or resulting from the incorporation in
the Work of any Intellectual Property. PERFORMING PARTY agrees that it will make no
settlement which prevents TCEQ from continuing use of the Intellectual Property without
TCEQ's prior written approval. In all events , TCEQ shall have the right to participate in the
defense of any such suit or proceeding through counsel of its own choosing.
4.37.9. Federal Intellectual Property requirements. A nonexclusive , perpetual , irrevocable
license to use , copy , publish, and modify any Intellectual Property to which rights are granted or
assigned to TCEQ in this Contract are hereby also granted to , assigned to , or reserved by the
Federal Government. To the extent consistent with the rights of third parties, the Federal
Government shall also have the right to sell any Intellectual Property right it reserves or acquires
through this Contract.
Technology Access Clause
Contract Number 582-10-86411 Page 23 of 99
4.38. PERFORMING PARTY expressly acknowledges that State funds may not be expended in
connection with the purchase of electronic and information resources unless the system complies with
the Electronic and Information Resources Accessibility Standards under 1 TAC Chapter 213 .
Accordingly, the PERFORMING PARTY represents and warrants to the TCEQ that the technology
provided to TCEQ for purchase meets the Electronic and Information Resources Accessibility
Standards under 1 TAC Chapter 213.
Subgrant Activities
4.39. All Subgrants awarded by the PERFORMING PARTY under this Agreement will be awarded
on the basis of competitive applications and proposals when feasible. The applications and proposals
will be evaluated utilizing criteria including cost comparison, probable quality of goods or services and
past performance. Upon request, PERFORMING PARTY must provide evidence to support the
selection and award.
4.40. Payments by PERFORMING PARTY to Subgrantees will be solely for reimbursement of actual
allowable costs utilizing the same standards and requirements as the reimbursement payments from
TCEQ to PERFORMING PARTY set out in this Agreement. No Subgrant will be made on a fixed-
amount of cost reimbursement unless this method is specifically approved by the TCEQ based on
supporting evidence of proposed Subgrantee's actual costs.
4.41. All Subgrant agreements must be in writing and must be approved by the TCEQ. The standards
and requirements for reimbursements and standards for performance will be incorporated into the
Subgrant agreements as well as other provisions required by this Agreement.
Permits
4.42. Unless otherwise provided in the Contract Documents , PERFORMING PARTY shall obtain and
pay for all construction permits and licenses. PERFORMING PARTY shall pay all charges of utility
owners for connections to the Work, and PERFORMING PAR TY shall pay all charges of such utility
owners for capital costs related thereto such as plant investment fees.
Laws and Regulations
4.43. PERFORMING PARTY shall give all notices and comply with all Laws and Regulations
applicable to furnishing and performance of the Work. Except where otherwise expressly required
by applicable Laws and Regulations, TCEQ shall not be responsible for monitoring PERFORMING
PAR TY's compliance with any Laws or Regulations.
4.44. If PERFORMING PARTY performs any Work knowing or having reason to know that it is
contrary to laws or regulations , PERFORMING PARTY shall bear all claims , costs , losses and
damages caused by, arising out of or resulting therefrom.
Uniform Grant and Contract Management Act
Contract Number 582-10-86411 Page 24 of 99
4.45. The provisions of Uniform Grant and Contract Management Act, TEXAS GO VERNMEN T
CODE , Chapter 783 applies to this Agreement, all amendments thereto , and all subcontracts and
subagreements. Compliance with the conditions and requirements contained therein is necessary
for the satisfactory performance of the services and Work required under this Agreement.
Energy Efficiency Standards
4.46. The PERFORMING PARTY shall follow standards and policies on energy efficiency which are
contained in the Texas State Energy Conservation Plan issued in compliance with Federal requirements.
Taxes
4.47. Where applicable PERFORMING PARTY shall pay all sales , consumer, use and other similar
taxes required to be paid by PERFORMING PARTY in accordance with the Laws and Regulations in
connection with the Work required by this Agreement.
Records, Documents, Data, Access, and Audit
4.48. The PERFORMING PARTY shall maintain books , records , documents , and other evidence
reasonably pertinent to performance of the Work and requirements of the Contract Documents ,
including the Agreement or amendments thereto. All financial records shall be maintained in
accordance with generally accepted accounting principles, the Uniform Grant Management Standards
and these Contract Documents. The PERFORMING PARTY shall also maintain the financial
information and data used in the preparation or support of any request for reimbursement ( direct and
indirect), price or profit analysis for this Agreement or any subagreement or subcontract and a copy of
any cost information or analysis submitted to the TCEQ. The TCEQ , Texas State Auditor's Office , or
any of their authorized representatives shall have access to all such books, records, documents and other
evidence for the purpose of review, inspection, audit, excerpts, transcriptions and/or copying during
normal business hours. The PERFORMING PARTY shall provide proper facilities for such access and
inspection .
PERFORMING PARTY, Subcontractors and Subgrantees shall implement and maintain a Quality
Assurance Program that addresses quality-related activities performed under this Contract and
conforms to the American National Standards Institute (ANSI) /the American Society for Quality
(ASQ) E4-2 Quality Systems for Environmental Data and Technology Programs -Specification
with Guidance for Use, the U.S Environmental Protection Agency (EPA) Requirem ents for Quality
Management Plans EPA QA/R-2 and with the TCEQ Quality Management Plan . The TCEQ ,
Quality Assurance specialists , or any of their authorized representatives shall have access to all such
Work activities , monitors , records , documents and other evidence for the purpose of management
systems review , inspection, audit, surveillance, peer review, excerpts , transcriptions and/or copying
during normal business hours. The PERFORMING PARTY shall provide proper access .
Laboratory data produced on or after July 1, 2008 , must be produced by a laboratory accredited by
TCEQ according to Title 30 Texas Administrative Code (TAC) Chapter 25 (relating to
Environmental Testing Laboratory Accreditation and Certification) Subchapters A and B as
amended, for the matrices , methods , and parameters of analysis , unless TCEQ agrees in writing to
Contract Number 582-10-86411 Page 25 of 99
allow one of the regulatory exceptions specified in 30 TAC §25 .6.
4.49. The PERFORMING PARTY agrees that all record keeping , quality assurance requirements , and
access requirements shall be applicable to all subcontracts and subagreements .
4.50. The PERFORMING PARTY agrees to the disclosure of all information and reports resulting
from access to records and quality activities under this Agreement.
4.51. Records under Paragraph 4.48 and 4.49 shall be maintained by the PERFORMING PARTY
during performance of Work under this Agreement, and for three (3) years after final payments , final
Expenditure Reports and all other pending matters are closed. If any litigation, claim, negotiation,
audit, quality assurance assessment, cost recovery, or other action (including actions concerning costs of
items to which an audit exception or nonconformance has been taken or identified) involving such
records or corrective actions has been started before the expiration of the three (3) year period, such
records must be retained until completion of the action or resolution of all issues which arise from it , or
until the end of the regular three (3) year period, whichever is later.
4.52. Access to records or Work activity is not limited to the required retention periods. The entities
designated in Paragraph 4 .48 shall have access to records or Work activity at any reasonable time for as
long as the records or nonconformance identified pursuant to an Assessment are maintained.
4 .53. This right-of-access article applies to financial and quality records pertaining to this Agreement
and all subagreements and amendments . In addition, this right of access article applies to all records
and Work activities pertaining to this Agreement and all subagreements and amendments :
4 .5 3 .1. to the extent the records pertain reasonably to Agreement or subcontract performance ;
4 .53.2. if there is any indication that fraud, gross abuse, or corrupt practices may be involved;
or
4.53.3. if the Agreement or subcontract is terminated for default or for convenience.
4.54. The Federal Government and its agencies will have the same rights of access to records as are
granted to , assigned to , or reserved by the TCEQ under this Contract.
Data and Publicity
4.55. All data and other information developed under this Agreement shall be furnished to the TCEQ
and shall be public data and information except to the extent that it is exempted from public access by
the Texas Public Information Act, TEX. Gov'T CODE § 552 ("Act"). Upon termination of this
Agreement, all copies of data and information shall be furnished , at no charge to the TCEQ , upon
request, to include databases prepared using funds provided under this Agreement, and become the
property of the TCEQ. Except as otherwise provided by these Contract Documents or the Act, the
PERFORMING PAR TY shall not provide data generated or otherwise obtained in the performance of
its responsibilities under this Contract to any party other than the State of Texas and its authorized
agents.
Contract Number 582-10-86411 Page 26 of 99
4.56. The PERFORMING PARTY agrees to notify and obtain the verbal approval of TCEQ prior to
releasing any information to the news media regarding the activities being conducted under this
Agreement.
Safety and Protection
4 .57. Where applicable , PERFORMING PARTY shall be responsible for requiring Subcontractors
and Subgrantees to maintain and supervise all necessary safety precautions and programs in connection
with the Work. PERFORMING PARTY shall take all necessary safety precautions.
Independent Contractor
4.58. In performing any services hereunder, the PERFORMING PARTY 1s , and undertakes
performance as , an independent contractor.
Lobbying Activities
4.59. As set forth in these Contract Documents, and in accordance with the Uniform Grant
Management Standards , and State law, PERFORMING PAR TY shall not use funds provided under this
Agreement to support political activity either directly or indirectly. This preclusion includes funds paid
in reimbursement of direct or indirect costs.
4.59.1. If it is reasonably foreseeable that payments to the PERFORMING PARTY under this
Contract will exceed $100 ,000 , the PERFORMING PARTY shall comply with the following
requirements. This Article applies regardless of whether the PERFORMING PAR TY is a for-
profit or not-for-profit entity, including a State or local Governmental entity.
4.59.2. The PERFORMING PARTY shall comply with the requirements of the "Anti-Lobbying
Act" (Public Law 101-121 , Section 319 , 31 U.S .C . 1352) (hereinafter, "Act"), and with all
applicable regulations, standards , orders , or requirements issued thereunder. Any violation of
this provision by the PERFORMING PARTY constitutes grounds for termination of this
Contract for default.
4.59.3. The PERFORMING PARTY shall forward to the TCEQ the Certification it is required
to submit under Section 1352(b )(2)(C) of the Act, which requires the recipient of Federal funds
to certify that it is in compliance with the Act. It shall also forward to the TCEQ any disclosure
forms it is required to submit under Section 1352(b)(2)(A)&(B) of the Act, which requires
disclosure of lobbying activities paid for with non-federal funds.
4.59.4. PERFORMING PARTY shall require all ofits Subcontractors under subcontracts that
will exceed $100 ,000: (1) as a condition of the subcontract, to furnish the PERFORMING
PARTY with the certification required under Section 1352(b)(2)(C) of the Act; and (2) to
furnish the PERFORMING PARTY with any disclosure forms required under Section
1352(b)(2)(A)&(B) of the Act. PERFORMING PARTY shall promptly forward to the TCEQ
any of the forms its Subcontractors submit to it.
Contract Number 582-10-86411 Page 27 of 99
Performance Reports
4.60. In accordance with the Uniform Grant Management Standards , the PERFORMING PARTY
shall submit written progress reports documenting all activities during a quarter pursuant to the
Schedule of Deliverables set forth in the Work Plan. In the absence of a schedule in the Work Plan, the
PERFORMING PARTY shall submit the reports not later than thirty (30) days after the close of each
quarter. The reporting periods shall correspond to the State of Texas fiscal year (September-November;
December-February , March-May ; June-August).
Accounting Systems
4.61. The PERFORMING PARTY shall have an accounting system which accounts for costs in
accordance with generally accepted accounting standards or principles and complies with 40 CFR
§31.20 and all applicable State laws and regulations , and policies relating to accounting standards or
principles. The PERFORMING PARTY must account for costs in a manner consistent with such
standards or principles. This system shall provide for the identification, accumulation, and segregation
of allowable and unallowable project costs among projects.
Independent Financial Audit
4.62. The PERFORMING PARTY shall engage an Independent Financial Auditor and conduct an
annual audit of the PERFORMING PARTY'S financial statements in accordance with the Single Audit
provisions of UGMS.
4.62.1. All terms used in connection with Audits in this Agreement shall have the definitions
and meanings assigned in the Single Audit Circular in UGMS.
4 .62.2 . Provisions of the Single Audit Circular in Part IV ofUGMS shall apply to all non-State
Government entities expending the funds ofthis Grant , whether they are recipients , receiving
the funds directly from the TCEQ , or are subrecipients , receiving the funds from a pass-through
entity (a recipient or another subrecipient). In addition, the PERFORMING PARTY shall
require the independent auditor to supply all audit work papers substantiating the Work
performed, at the request of the TCEQ or its designee.
Exceptions in Audit
4.62.3. TCEQ is required to take action on exceptions noted in an audit of PERFORMING
PARTY's financial records. Therefore, PERFORMING PARTY agrees to submit to TCEQ a
copy of the report any audit conducted of the PERFORMING PARTY's financial records within
20 days ofreceipt of PERFORMING PARTY's receipt of an audit report. At the same time ,
PERFORMING PARTY will also provide a statement containing an explanation of the
conditions giving rise to each exception in the audit report as well as a plan for correction of any
significant deficiencies in PERFORMING PARTY's operations or Contract performance .
TCEQ may approve the statement or reject as insufficient. At the option of the TCEQ , the
PERFORMING PARTY may revise and resubmit. If the statement is initially or subsequently
Contract Number 582-10-86411 Page 28 of 99
rejected by the TCEQ with no further opportunity to revise , the TCEQ may suspend payments
or may terminate the Contract for cause and may undertake any other remedies or sanctions
provided under this Contract.
Hazardous Substances, Waste Disposal and Manifests
4.63 . PERFORMING PAR TY, Subcontractors and Subgrantees must comply with all applicable laws
and regulations.
Conflict of Interest
4 .64. PERFORMING PARTY shall notify TCEQ immediately upon discovery of any potential or
actual conflict of interest. PERFORMING PARTY agrees that TCEQ has sole discretion to determine
whether a conflict exists and that TCEQ may terminate the Agreement at any time , on the grounds of
actual or apparent conflict of interest. See Paragraph 4.27 of these General Conditions concerning
conflicts of interest with Subgrantees, Subcontractors and others.
4.64.1. Notice of Conflict of Interest: The PERFORMING PARTY shall notify the TCEQ in
writing of any actual , apparent, or potential conflict of interest regarding any individual
performing or having access to information regarding the Work. As applicable, the notification
shall include both organizational conflicts of interest and personal conflicts of interest. Any
individual with a personal conflict of interest shall be disqualified from taking part in any way
in the performance of any Work that created the conflict of interest.
Survival of Obligations:
4. 65. All representations , indemnifications , warranties and guarantees made in, required by or given in
accordance with the Contract Documents, as well as all continuing obligations indicated in the Contract
Documents, will survive final payment, completion and acceptance of the Work and Termination or
completion of the Agreement.
Debarment:
4.66. On or prior to the Effective Date of this Contract, PERFORMING PARTY must submit a
Certification Regarding Debarm ent, Suspension, and Other Responsibility Matters. This certification
must be submitted on forms provided by the TCEQ . A copy of the Certification is attached hereto and
incorporated in the Application for Federal Assistance. PERFORMING PARTY shall fully comply with
Subpart C of2 CFR Part 180 and 2 CFR Part 1532 , entitled "Responsibilities of Participants Regarding
Transactions (Doing Business with Other Persons)." PERFORMING PARTY must also submit a
Certification Regarding Debarment, Suspension, and Other Responsibility Matters / Lower Tier for each
Subcontractor it employs to conduct the Work. These certifications must be submitted on forms
provided by the TCEQ. PERFORMING PARTY shall not subcontract any part of the services under
this Contract to an entity that has been debarred. Recipient may access the Excluded Parties List System
at www.epls.gov.
ARTICLE 5. TCEQ'S RESPONSIBILITIES
Contract Number 582-10-86411 Page 29 of 99
5.1. The Executive Director of the TCEQ will identify a person authorized to give direction to the
PERFORMING PARTY , and act on behalf of the TCEQ. The person designated as the TCEQ
Authorized Representative is identified on Page 6 of this Contract.
5.2. The Executive Director of the TCEQ hereby authorizes such identified person to further delegate
his or her authority as necessary , including a delegation of authority to a TCEQ employee.
5 .3. The Contract Documents and the Uniform Grant Management Standards contain provisions that
provide for withholding of payment as well as suspension and termination of the Agreement by the
TCEQ.
5.4. The TCEQ shall not supervise, direct or have control or authority over, nor be responsible for ,
PERFORMING PARTY's means , methods , techniques , sequences or procedures of performing the
Work or the safety precautions and programs incident thereto , or for any failure of PERFORMING
PARTY to comply with laws and regulations applicable to the furnishing or performance of the Work .
TCEQ will not be responsible for PERFORMING PARTY's failure to perform or furnish the Work in
accordance with the Contract Documents .
ARTICLE 6. CHANGES IN THE WORK
6.1. The Executive Director of the TCEQ or his Project Representative may, at any time, by written
notification to the PERFORMING PARTY , make changes to the scope of this Agreement or in the
services or Work to be performed. If such changes cause an increase or decrease in the PERFORMING
P ARTY's cost of, or time required for , performance of any services under this Agreement, whether or
not changed by an order, an equitable adjustment shall be made and this Agreement shall be modified in
writing accordingly. Any claim of the PERFORMING PARTY for adjustment under this clause must
be asserted in writing within thirty (30) days after the date ofreceipt by the PERFORMING PARTY of
the notification of change , unless the Executive Director of the TCEQ or his Project Representative
grants a further period of time before the date of final payment under this Contract.
6.2. An Amendment (Major Change) will include one or more of the following:
6.2.1. an increase or decrease in the amount of compensation to the PERFORMING PARTY ;
6.2.2. an extension or shortening of the term of the Agreement;
6.2 .3 . a significant change in the scope of the Agreement or the services to be performed ; or
6.2.4. any action that is beyond the authority of the Executive Director or the Project
Representative of the TCEQ.
6.3. Implementation of a Major Change must be preceded by a formal Written Amendment to the
Agreement. Requests for an amendment must be in writing and be submitted to the TCEQ Project
Representative prior to initiating changes. The amendment must contain a description of the proposed
change. The amendment must be signed by persons authorized to bind each party in contract. Any
Contract Number 582-10-86411 Page 30 of 99
amendment that will exceed the contractual authority of the Executive Director of the TCEQ also
requires the consent, at Agenda, of a majority of Commissioners of the TCEQ.
6.4 . Any proposed change that is not a Major Change (amendment) may qualify as a Minor Change.
A Minor Change shall require the written agreement of both Project Representatives , but shall not
require a formal amendment to the Contract. A cop y of the authorization must be retained in the
appropriate file of both the PERFORMING PARTY and the TCEQ.
6.5. If the PERFORMING PARTY requests a Minor Change and the Project Representative of the
TCEQ does not approve the request as a Minor Change , then the change shall be deemed a Major
Change and the PERFORMING PARTY may only obtain authorization to proceed in accordance with
Section 6.3 of this Article .
6.6. PERFORMING PARTY is permitted to rebudget within the approved direct cost budget to meet
any unanticipated requirements and may make limited program changes to the approved Project.
Certain types of these changes require the prior written approval of the TCEQ . Applicable cost
principles set forth in 40 CFR Part 31.22 contain additional requirements for prior approval of certain
types of costs and apply to all grants and Subgrants. Prior approval shall be required as follows :
6.6.1. Any change resulting in the need for additional funding;
6.6.2. Cumulative transfers among direct cost categories , or , if applicable , among separately
budgeted programs of projects and which exceed or are expected to exceed the total budget by
ten percent (10%);
6 .6 .3. Transfers of funds allotted for training allowances ;
6 .6.4. Changes in key personnel in cases where specified in an application or Grant award ; or
6.6.5. Subcontracting those activities which are central to the purposes of the award.
6.7. Any request shall be in writing to TCEQ and TCEQ shall promptly review , approve or
disapprove the request in writing. If such changes require federal prior approval, TCEQ shall obtain
that approval before approving the request.
6.8 Changes to the services or Work to be performed shall be included as revisions in the Quality
Assurance Project Plan for this Contract.
Inclement Weather
6.9 . A deadline set forth in the Schedule of Deliverables may be extended by a period equivalent to
the time lost because of inclement weather that precludes Work towards the completion of that
deliverable. The PERFORMING PARTY shall maintain, and make available at the TCEQ's request,
daily records adequately supporting its claim that inclement weather precluded Work towards the
completion of a deliverable. The PERFORMING PAR TY shall make best attempts to recoup time lost
Contract Number 582 -10-8 6411 Page 31 of 99
due to inclement weather. The PERFORMING PARTY shall notify the TCEQ in writing (fa x
acceptable) prior to the deliverable deadline of the deadline extension pursuant to this Article.
Extensions of a deliverable deadline pursuant to this Article will constitute a Minor Change . No
extension under this Paragraph shall extend the terms of thi s Contract. The TCEQ reserves the right to
reject , in good faith , within thirty (30) days ofreceipt of the notification of the deadline extension, the
PERFORMING PARTY'S claim that inclement weather precluded Work towards the completion of a
deli verable.
Waiver
6.10 . Unless authorized in accordance with these Contract Documents (relating to Changes), or in
writing by the TCEQ , no wai ver of any obligation of the PERFORMING PARTY , the authorized
waiver by the TCEQ of such obligation shall not constitute a continuing waiver of the obligation. No
waiver by the TCEQ Executive Director shall constitute a waiver of the TCEQ's subsequent right to
demand and receive performance within a reasonable time to be specified by the TCEQ , in accordance
with all provisions of this Contract.
ARTICLE 7. PAYMENTS TO PERFORMING PARTY
Payment based on Reimbursement of Actual Cost of Performance
Allowable Costs
7 .1 Payments from the TCEQ to the PERFORMING PARTY are for reimbursement of
PERFORMING PARTY's actual allowable costs of PERFORMING PARTY's performance. Actual
costs include reasonable and necessary direct and indirect costs. Allowable costs are those deemed
allowable by the TCEQ in accordance with the requirements of this Contract and the following which
are hereby incorporated into this Contract :
7.1.1. Uniform Grant Management Standards prepared and promulgated by the Office of the
Governor of Texas ;
7.1.2. Rules and guidelines of the Office of the Governor of Texas ;
7.1.3. Applicable rules and policies of the TCEQ ;
7.1.4. Applicable State law;
7.1.5. For funds received from a Federal Government source , applicable Federal laws and
regulations. For example , 40 CFR §31.3 (e.g., payments for expenses incurred , time and
materials , or hourly rates), all payments where PERFORMING PARTY'S services have not
been competitively procured , shall be based on allowable costs (refer to 40 CFR §31.22), and
shall be based on a cost or price summary , and Title 48 CFR Part 31.
Eligible costs are: 1) those costs authorized in this Agreement and ; 2) for activities performed in
compliance with the Agreement.
Contract Number 5 82-10-86411 Page 32 of 99
Payments by TCEQ
7.2 PERFORMING PARTY must request payment by submitting one (1) copy of an itemized
invoice in a format provided by the TCEQ (Form B-3 ), a properly completed TCEQ Purchase Voucher
(Form B-2), the Financial Status Report Form , (Form B-4) and such other forms as the TCEQ requires .
PERFORMING PARTY must complete the entire Quarterly Report Checklist (Exhibit A-4).
PERFORMING PARTY will also submit any supporting documentation required by TCEQ. TCEQ
will review the submittal and approve or reject the request for payment. PERFORMING PARTY must
make any revisions required by the TCEQ in order to gain approval. TCEQ is not obligated to make
payment until the request for payment is approved by TCEQ.
Cost Reimbursement
7.3. In accordance with Chapter 2261 Texas Government Code, all payments by TCEQ to
PERFORMING PARTY are based on reimbursement of PERFORMING PARTY's actual costs
incurred in performing the Work.
7 .3 .1 This Contract contains a Contract Costs Budget indicating expected Contract-related costs
for the required Work. PERFORMING PARTY will be paid on the basis of reimbursement of
actual costs. At the intervals specified in the Contract Costs Budget, PERFORMING PARTY
may submit a request for reimbursement of actual costs it has incurred . All such requests must
be accompanied by supporting documentation as required by this Agreement. PERFORMING
PARTY agrees that TCEQ 's obligation to reimburse the PERFORMING PARTY 'S costs will
remain within the Contract Costs Budget and that cumulative transfers will not exceed ten
(10%) percent of the total reflected therein.
7.4 . The PERFORMING PARTY has submitted a cost analysis in its Funding Application budget
estimate . The PERFORMING PARTY and the TCEQ acknowledge that this cost analysis is the basis
upon which the Contract Costs Budget has been developed.
7.5 . Because certain Monitoring Operations Program activities may not be performed in a given
month , the PERFORMING PARTY shall perform a quarterly review of the Monitoring Operations
Program activities it actually performs or expects to actually perform during that quarter. In this review ,
the PERFORMING PARTY shall determine whether the nearest practicable estimate of its actual cost
of providing those services for that quarter is within the constraints established elsewhere in this
Agreement.
7 .6. The PERFORMING PARTY shall make its review and determination available to the TCEQ
upon request. The TCEQ may perform an independent review (in accordance with Article 4.50 (Record
Documents , Data, Records Access and Audit) of the General Conditions and make its own independent
determination, or may make its own independent determination based upon the PERFORMING
PARTY's review.
Contractual Costs
Contract Number 582-10 -86411 Page 33 of 99
7.7. PERFORMING PARTY's contractual costs must comply with allowable costs requirements.
PERFORMING PARTIES which are Governmental entities must engage in contractor selection on a
competitive basis in accordance with their established policies. If PERFORMING PARTY has no
competitive procurement policy or is a private entity, PERFORMING PARTY must generall y select
contractors by evaluation and comparison of price, quality of goods or services and past performance.
Comparison of Performing Party~ Costs
7.8. In accordance with Section 2261.203 Texas Government Code, the TCEQ is required to perform
a comparison of costs reimbursed under this Agreement. PERFORMING PAR TY will provide a report
to verify that its costs of performance are reasonably comparable to prices generally charged for similar
goods or services.
Indirect Cost Rate
7.9. The indirect cost rate for this Agreement is that rate specified in the Contract Co s ts Budget. The
rate in effect on the Effective Date of this Agreement must remain in effect for the applicable period of
the Agreement.
Duplication of Effort Prohibited
7.10. In addition to the funds provided to PERFORMING PARTY under this Grant Agreement, the
TCEQ may provide funds to PERFORMING PARTY under a separate Grant Agreement so that funds
of two (2) or more Grants are to be provided to a single activity of the PERFORMING PARTY.
PERFORMING PARTY must monitor all activities to ensure that the Grant funds complement one
another and do not result_ in double payments for the same activity.
Payment Request Procedures
7 .11. All requests for reimbursement under this Contract shall be submitted in accordance with the
requirements set forth in this Article.
7.12. On a quarterly basis, within thirty (30) days after the end of a quarter, the PERFORMING
PARTY shall submit one (1) copy of a properly completed State of Texas Purchase Voucher (Form B-
2), an itemized invoice provided by the TCEQ (Form B-3), a Financial Status Report (FSR) (Form B-4)
and a Quarterly Report Checklist incorporated herein as Exhibit A-4 , in order to obtain payment for
tasks completed under this Agreement. The PERFORMING PARTY will indicate the Match Amount
in the space provided on the FSR. A description of the services provided by your Match Amount
should be described in the FSR on the supplemental pages attached to the form . The itemized invoice
includes on a separate line, the total amount that is being matched by the PERFORMING PARTY.
The PERFORMING PARTY shall complete a quarterly HUB Progress Assessment Report,
incorporated herein as Form B-1 , and submit this Report with each quarterly invoice and voucher.
Completed vouchers , invoices, and reports shall be mailed or delivered to the following address:
Contract Number 582-10-86411 Page 34 of 99
Attn: Mr. Lloyd Lawrence
TCEQ
Monitoring Operations Division, MC-165
P.O. Box 13087
Austin, TX 78711-3087
7 .13. The TCEQ Project Representative will review the purchase vouchers , invoices , the quarterly
FSR, and Quarterly Report Checklists for requests for payment of services performed as identified in
Section A (Statement of Work) and Section B (Deliverables) and will notify the PERFORMING
PAR TY that the requests are acceptable or will provide an explanation of why the requests or the Work
identified in the requests are unacceptable. If the requests do not satisfactorily demonstrate the
accomplishment of the required tasks , the TCEQ Project Representative will not authorize payment on
the accompanying voucher and invoice until such time as deficiencies have been corrected.
7.14. TCEQ is not obligated to make payment until the request for reimbursement is approved by
TCEQ. Further, the TCEQ reserves the right to suspend payment for any incomplete , inconsistent or
incorrect services or reports as required by this Contract until the PERFORMING PAR TY satisfactorily
completes, revises , or corrects such services or reports.
7 .15. The TCEQ will not issue any payment of an approved reimbursement request from the
PERFORMING PARTY until the TCEQ receives from the EPA funds specifically awarded for
activities provided by the PERFORMING PARTY under this Agreement.
7 .16. Failure on the part of the PERFORMING PARTY to comply with the conditions set forth in
this Agreement may be grounds for termination of this Contract for cause, and revocation of any
unexpended funds.
7.17. Nothing in this Article shall be construed to prevent the TCEQ or the PERFORMING PARTY
from exercising any of its rights under this Agreement including but not limited to those relating to
termination and remedies.
7.18. TCEQ is not obligated to make payment until the request for reimbursement is approved by
TCEQ. TCEQ may reject payment requests not submitted in accordance with these Contract
Documents. TCEQ may reject payment requests submitted less than thirty (30) days after the close of
each quarter, or prior to TCEQ's acceptance of the deliverables due in the quarter for which the payment
request applies . TCEQ shall have thirty (30) days after receipt to review and determine the acceptability
of a deliverable. If TCEQ has neither accepted nor rejected a deliverable within thirty (30) days of
receiving it, PERFORMING PARTY shall be entitled to submit a payment request as if that deliverable
had been accepted , BUT IN NO CASE SHALL TCEQ BE DEEMED TO HA VE ACCEPTED THE
DELIVERABLE . TCEQ reserves the right to suspend payment for any incomplete , inconsistent or
incorrect services or reports as required by this Contract until the PERFORMING PAR TY satisfactorily
completes , revises , or corrects such services or reports , whether or not the deliverable is rejected within
thirty (30) days.
Closeout
Contract Number 582-10-86411 Page 35 of 99
7.19. When it is determined that all applicable administrative activities and all required Work have
been completed, the TCEQ shall close out the award. Within sixty (60) days after the expiration or
termination of the Contract, the Performing Party must submit all financial , performance , and other
reports as required. These reports may include, but are not limited to:
7 .19 .1 . All Performance or Progress Reports required by this Agreement.
7.19.2. Financial Status Report (Form B-4).
7.19.3. Final Request for Payment. (Incl uding Forms B-1 , B-2 , B-3)
7.19.4. Invention disclosure (if applicable).
7.19.5. State-owned Property Report (if applicable).
7.20 . In accordance with the Uniform Grant Management Standards , the PERFORMING PARTY
must submit an inventory of all State-owned property ( as distinct from property acquired with Grant
funds) for which it is accountable and request disposition instructions from the TCEQ of property no
longer needed.
7 .2 1. Within ninety (90) days of receipt of the reports set forth above , the TCEQ will make upward
or downward adjustments to the allowable costs. The TCEQ will make prompt payment to the
PERFORMING PARTY for allowable reimbursable costs. Closeout of the Grant does not affect:
7.21.1. The TCEQ's right to disallow costs and recover funds on the basis of a later audit ,
quality assurance assessment, or other review;
7.21.2. The PERFORMING PARTY'S obligation to return any funds due as a result oflater
refunds , corrections , or other transactions;
7.21.3. Record s retention as required herein ;
7 .2 1.4. Property management requirements set forth herein ; and
7.21.5. Audit, including quality assurance assessment, requirements set forth herein.
7.22. The PERFORMING PARTY must immediately refund to the TCEQ any balance of
unobligated (unencumbered) cash advanced that is not authorized to be retained for use on another
Grant.
7.23. Any funds paid to a Performing Party in excess of the amount to which the Performing Party is
finally determined to be entitled under the terms of the award constitute a debt to the TCEQ. If not paid
within a reasonable period after demand , the TCEQ may reduce the debt by:
Contract Number 5 82-10-86411 Page 36 of 99
7 .23 .1. Making an administrative offset against other requests for reimbursement;
7.23.2. Withholding advance payments otherwise due to the PERFORMING PARTY, or
7.23.3. Other action permitted by law.
7.24. Except where otherwise provided by statutes or regulations, the TCEQ will charge interest on
an overdue debt in accordance with the Uniform Grant Management Standards . The date from which
interest is computed is not extended by litigation or the filing of any form of appeal.
7 .25. Upon satisfactory completion of the Work performed hereunder, acceptance of such Work by
the TCEQ Project Representative , and prior to final payment under this Contract for such Work, or prior
to settlement upon termination of this Contract and as a condition thereto, the PERFORMING PARTY
shall execute and deliver to the TCEQ a release of all claims for payment of any funds due and payable
by the TCEQ pursuant to the terms of this Contract. Such release shall be conditioned upon payment of
all fund amounts due and payable to PERFORMING PARTY under this Contract, and limited to only
those claims which reasonably could have been foreseen at the time the release was executed.
PERFORMING PARTY reserves the right to identify claims to be excluded thereby.
7 .26 . The PERFORMING PAR TY shall provide to the TCEQ documentation showing all tasks that
have been completed by the PERFORMING PARTY. The PERFORMING PARTY agrees that the
determination of satisfactory completion of any and all Work or other services performed or furnished
under this Contract will be based on the judgment of the staff of the TCEQ , which judgment will be
exercised in a reasonable manner and in good faith.
7 .27 . Final payment under this Contract or settlement upon termination shall not constitute a waiver
of the TCEQ's claims against the PERFORMING PARTY. The TCEQ may refuse to reimburse
expenditures for which the PERFORMING PARTY submits a voucher more than sixty ( 60) days after
the termination date of this Contract.
ARTICLE 8. TERMINATION
8.1. This Agreement shall terminate upon full performance of all requirements contained herein,
unless extended in writing.
8.2. This Agreement may be terminated in whole or in part by the TCEQ in the event of a material
failure to comply with the Contract terms, in accordance with the Uniform Grant Management
Standards: provided that no such termination may be effected unless the other party is given :
8.2.1. not le ss than ten (10) days written notice (delivered by certified mail , return receipt
requested) of intent to terminate , and
8.2.2. an opportunity for consultation with the terminating party prior to termination.
8.3. This Agreement may be terminated in whole or in part in writing by the TCEQ for its
Contract Number 582-10-86411 Page 37 of 99
convenience , in accordance with the Uniform Grant Management Standards : provided that the
PERFORMING PARTY is given not less than ten (10) days written notice ( delivered by certified mail ,
return.receipt requested) of intent to terminate. Circumstances in which the TCEQ may terminate for
convenience include , but are not limited to , the Texas Legislature's withdrawal of appropriations for this
Project.
8.4 . If the TCEQ terminates the Contract for a material failure to comply with the Contract terms
under Section 8.2 or the TCEQ terminates the Contract for convenience under Section 8.3 , an
adjustment in the Contract amount shall be made in accordance with the Uniform Grant Management
Standards.
8.5. Upon receipt of a termination action pursuant to Sections 8.2 or 8.3 above , the PERFORMING
PAR TY shall:
8. 5 .1. promptly discontinue all services affected ( unless the notice directs otherwise), and
8.5 .2. deliver or otherwise make available to the TCEQ all data, drawings , specifications,
reports , estimates , summaries , and such other information and materials as may have been
accumulated by the PERFORMING PAR TY in performing this Contract, whether completed
or in the process.
8.6. If, after termination for failure of the PERFORMING PARTY to fulfill contractual obligations,
it is determined that the PERFORMING PAR TY had not so failed , the termination shall be deemed to
have been effected for the convenience of the TCEQ .
8.7. If any delay or failure of performance is caused by a forc e majeure event as described in the
Force Majeure Article of this Contract, the TCEQ may in its sole discretion terminate this Contract in
whole or part pursuant to this Article.
Force Maj eure
8.8. A force majeure event shall be defined to include decrees of or restraints by a Governmental
instrumentality , acts of God (except that rain, wind, flood or other natural phenomena normally
expected for the locality shall not be construed as an act of God), work stoppages due to labor disputes
or strikes , fires , explosions , epidemics , riots , war, rebellion, and sabotage .
8.9. Provided this Contract has not been terminated, and subject to the conditions below, if a delay
or failure of performance by either party results from the occurrence of a force majeure event, the delay
shall be excused and the time fixed for completion of the Work extended by a period equivalent to the
time lost because of the event if, and to the extent that:
8.9.1 . The delay or failure was beyond the control of the party affected and not due to its fault
or negligence; and
8.9.2 . The delay or failure was not extended because of the affected party's failure to use all
diligence to overcome the obstacle or to resume performance immediately after the obstacle
Contract Number 582 -10-86411 Pag e 38 of 99
was overcome.
8.10. No time extension shall be granted under this Article unless the party seeking relief has notified
the other in writing within a reasonable time after commencement of the event, of the anticipated length
and cause of the delay , the measures taken or to be taken to minimize the delay , and the timetable by
which the PERFORMING PARTY intends to implement these measures. The party seeking relief shall
also give written notice of the ending of the event within a reasonable time after the event has ended .
8.11. The TCEQ shall be responsible for costs related to a force majeure event only if they are
incurred by the PERFORMING PARTY after the prior written request by the TCEQ Project
Representative , to incur such costs in connection with any force majeure event. Neither the TCEQ nor
the PERFORMING PARTY shall have , and both hereby waive , any claim whatever for any damages
resulting from delays caused by force majeure events.
ARTICLE 9. MISCELLANEOUS
Computation of Times:
9 .1. When any period of time is referred to in the Contract Documents by days , it will be computed to
exclude the first and include the last day of such period. If the last day of any such period falls on a
Saturday or Sunday or on a Federal holiday , such day will be omitted from the computation.
9.2. A calendar day of twenty-four (24) hours measured from midnight to the next midnight will
constitute a day.
Notice of Claim:
9.3. Should TCEQ or PERFORMING PARTY suffer injury or damage to person or property
because of any error, omission or act of the other party or of any of the other party's employees or agents
or others for whose acts the other party is legally liable , claim will be made in writing to the other party
within a reasonable time of the first observance of such injury or damage. The provisions of this
Paragraph shall not be construed as a substitute for or a waiver of the provisions of any applicable
statute oflimitations or repose or sovereign immunity.
Professional Fees and Court Costs Included:
9.4. Whenever reference is made to "claims , costs , losses , and damages ," it shall include in each
case , but not be limited to, all fees and charges of TCEQ , architects, attorneys and other professionals
and all court or other dispute resolution costs.
Acknowledgment of Financial Support
9.5. The PERFORMING PARTY shall acknowledge the financial support of the TCEQ and the
U.S. EPA whenever Work funded , in whole or part, by this Contract is publicized or reported in news
media or publications. All reports and other documents completed as a part of this Contract, other than
documents prepared exclusively for internal use within the TCEQ , shall carry the following notation on
Contract Number 582-10-86411 Page 39 of 99
the front cover or title page:
PREPARED IN COOPERATION WITH THE
TEXAS COMMISSION ON ENVIRONMENTAL QUALITY AND
U.S. ENVIRONMENTAL PROTECTION AGENCY
The preparation of this report was .financed through grants from the U.S. Environmental Protection
Agency through the Texas Commission on Environmental Quality.
ARTICLE 10. INSURANCE, LIABILITY AND INDEMNIFICATIO~
10.1 To the extent permitted by law, the PERFORMJNG PARTY agrees to indemnify and hold
harmless the TCEQ and all of its employees and officers against and from any and all liability, loss, or
damage arising out of the performance of this Agreement. To the extent that any activity conducted by
PERFORMING PARTY with funds provided under this Agreement entails significant risk of loss or
injury to individuals and third parties or their property, the PERFORMING PARTY will secure and
maintain insurance sufficient to protect PERFORMJNG PARTY and the TCEQ, and its employees and
officers against claims arising from the conduct of such activities.
I 0.2 In all Subcontracts and Subgrants, PERFORMING PARTY shall require its Subcontractors and
Subgrantees to obtain and maintain, at their own expense, insurance as will protect the Subcontractor,
the PERFORMING PARTY and the TCEQ, its employees, and its officers from all such claims arising
from the performance by the PERFORMING P ARTY's Subcontractors or Subcontractors' employees
resulting from the functions and services required under this Contract, including workers compensation
in accordance with Texas statutory requirements.
10 .3. PERFORMING PARTY will purchase and maintain Directors and Officers insurance or
equivalent insurance coverage or other financial assurance sufficient to protect the interests of the State
in the event of an actionable actor or omission by a director or officer of the PERFORMING PARTY.
Self-insurance may satisfy the requirements of this section if the PERFORMING PAR TY is a home
rule municipality and the PERFORMJNG P ARTY's self insurance covers acts or omissions of officers
or directors.
ARTICLE 11. STANDARDS FOR PERFORMING PARTY'S PERFORMANCE
11 .1 In accordance with Chapter 2261 Texas Government Code, the TCEQ is required to monitor
PERFORMING P ARTY's performance under this Contract. Therefore, PERFORMING PARTY agrees
that the following are appropriate standards for PERFORMING P ARTY's performance during the
Con tract:
11.1.1. Timeliness of Work. Standard : Work is provided on schedule .
11.1.2. Quality of Work. Standard: PERFORMING P ARTY's Work conforms to the
requirements of the Contract and is technically accurate.
11.1.3. Subcontract Activities. Standard: PERFORMING PARTY's subcontract and
Contract Number 58 2-10 -86411 Page 40 of 99
Subgrant activities comply with all TCEQ contract requirements regarding subcontracts
especially competitive procurement methods for goods and services, use of required
subcontract provisions, and monitoring performance of Subcontractors and Subgrantees.
11.1.4. Administrative and Financial Operations. Standard: PERFORMING PARTY's
administrative and financial operations comply with all obligations in law and in the Contract
especially record-keeping, reimbursement requests, audits, allowable costs, and restricted
expenditures.
Performance Measures
11.2. TCEQ will monitor PERFORMING PARTY 's performance and evaluate the level of
compliance with the standards using the TCEQ Contractor Evaluation form.
Contract Monitoring and Evaluation Report
11.3. In accordance with Chapter 2261 Texas Government Code, TCEQ will monitor and evaluate
PERFORMING P ARTY's performance utilizing the performance standards and performance measures
set out in this Contract. TCEQ will prepare a cumulative written report of the evaluation upon
termination or expiration of the Contract and also as frequently as determined appropriate by the TCEQ.
11.3.1. Within thirty (30) days of receipt of each of the FY-2010 and py..:2011 End-of-Year
Assessments, the PERFORMING PARTY shall provide information to the TCEQ concerning
action(s) that will be taken to correct any deficiencies noted in the report. This response will
include a description of the nature and extent of each deficiency's impact on data quality, the
specific corrective actions taken or planned to address the deficiencies, actions taken or
planned to prevent recurrence, a schedule to bring any deficiencies in the ambient air
monitoring program up to TCEQ standards, the means to be used to document completion of
each action, and it will identify resources to accomplish the necessary corrections.
11 .3.2. Within ninety (90) days after receipt of TCEQ comments or as recommended by the
TCEQ, the PERFORMING PARTY shall correct deficiencies and report to the TCEQ any
deficiencies that cannot be corrected within the allocated time-frame. If the deficiencies are
not corrected to the satisfaction of the TCEQ, in addition to other rights the TCEQ may have
against the PERFORMING PARTY, it may result in the TCEQ withholding payment to the
PERFORMING PARTY for future monitoring activities and/or in the PERFORMING PARTY
becoming ineligible for future funding.
Resolution Process for Disallowed /Questioned Costs:
11.4. The PERFORMING PARTY has the right to dispute any such determination by the TCEQ,
utilizing the process identified in Article 12, below.
Schedule of Remedies available to the TCEQ
11 . 5 . In accordance with Chapter 2261 Texas Government Code, the following Schedule of
Contract Number 582-10-86411 Page 41 of 99
I
-----------·----·-------··--------------
Remedies applies to this Contract in the event of substandard performance or other failure to conform to
the requirements of the Contract or applicable law.
11.5 .1 . Reject substandard performance and request corrections without charge to the TCEQ.
11.5 .2 . Issue notice of substandard performance or other non-conforming act or omission.
11.5.3 . Request and receive return of any over-payments or inappropriate payments.
11.5.4. Reject reimbursement request and suspend payment pending accepted revision of
substandard performance or non-conformity.
11.5.5. Suspend all or part of the Work and/or payments pending accepted revision of
substandard performance or non-conformity.
11.5.6. Reject reimbursement request and withhold all or partial payments. Funds may be
retained by the TCEQ for recovery of administrative costs or returned to funding source as
authorized by agreements with the funding source and by State or Federal law.
11.5.7. Terminate the Contract, demand and receive: return of all equipment purchased with
Contract funds, return of all unexpended funds, and repayment of expended funds.
Sanctions for Substandard Performance
11 .6. If the TCEQ evaluation finds PERFORMING P ARTY's performance to be substandard, TCEQ
may provide its written evaluation report to other Governmental entities at any time. TCEQ may also
provide its written evaluation report to the public as authorized by law.
Cumulative Remedies
11.7. TCEQ may avail itself of any remedy or sanction provided in this Contract or in law to recover
any losses rising from or caused by the PERFORMING P ARTY's substandard performance or any non-
conformity with the Contract or the law. The remedies and sanctions available to TCEQ in this
Contract shall not limit the remedies available to the TCEQ under law.
11 .8. The duties and obligations imposed by these General Conditions and the rights and remedies
available hereunder to the parties hereto, and, in particular but without limitation, the Schedule of
Remedies, obligations imposed upon PERFORMING PARTY by these General Conditions, and all
other rights and remedies available to TCEQ there under, are in addition to , and are not to be construed
in any way as a limitation of, any rights and remedies available to any or all of them which are
otherwise imposed or available, by laws or regulations, by special warranty or guarantee or by other
pro v isions of the Contract Documents, and the provisions of this Paragraph will be as effective as if
repeated specifically in the Contract Documents in connection with each particular duty, obligation,
right and remedy to which they apply.
Contract Number 582-10-86411 Page 42 of 99
r
ARTICLE 12. DISPUTE RESOLUTION
Alternative Dispute Resolution
12.1 The dispute resolution process provided for in Chapter 2260 of the Texas Government Code
and applicable rules of the TCEQ must be used by the Contractor to attempt to resolve all disputes
arising under this Contract.
Contract Number 582-10-86411 Page 43 of 99
SCOPE OF WORK
A. STATEMENT OF SERVICES
The PERFORMING PARTY shall perform the tasks described in this Scope of Work as well as
comply with all deadlines as they are more fully set out in this Scope of Work.
The PERFORMING PARTY will operate two (2) high volume PM-10 monitors at Stagecoach in
Fort Worth. They will also operate ozone , carbo n monoxide, nitrogen oxides , PM2.5 TEOM, solar
radiation , wind speed, wind direction and temperature monitors at the Arlington Municipal Airport
(CAMS 61).
1. Grants
The PERFORMING PARTY shall fully comply with and complete all requirements and output
objectives under any U.S. Environmental Protection Agency (EPA) grant agreements from which it
receives funds for the period of this Agreement. This task shall apply , but not be limited, to grants
awarded under Section 105 of the Federal Clean Air Act.
2 . Administrative Regulations
The PERFORMING PARTY shall provide adequate recordkeeping and reporting to ensure
conformance to the financial , property, and procurement regulations. Guidelines or criteria for
accomplishment: Treasury Circular 1075 , Chapters 1000 and 2000 ; 0MB Circular A -102 , A-133 ,
and A-87; 40 CFR 31; 40 CFR 35.
The TCEQ or the EPA, as appropriate , may update any or all of the exhibits referred to in this
Agreement. The PERFORMING PARTY shall implement updated editions of any such updated
exhibits w ithin thirty (30) days of receipt.
2.1. Funding Application Package
Within thirty (30) days of receipt of funding allocation notification and current Funding
Application Package , incorporated herein as Exhibit A-1 , the PERFORMING PARTY shall
submit to the TCEQ its FY-2010 and 2011 funding application. The application shall include
the following:
2.1.1 Grant funds requested in the application shall in no event exceed the amount
referred to in the funding allocation notification. Submittal of an application in an
amount greater than the PERFORMING PARTY's funding allocation shall result in
the TCEQ's immediate rejection of such application and the PERFORMING PARTY
shall reapply in conformance with the allocation notification amount.
2.1 .2 The term "Local Air Program" is defined as the eligible Local Air Pollution
Program conducted by PERFORMING PARTY under Section 382.0622 , Texas
Contract Number 582-10-86411 Page 44 of 99
Health and Safety Code. The total combined Federal and State share of the funding
for the PERFORMING PARTY's Local Air Program shall not exceed sixty seven
percent (67%) of the PERFORMING PARTY's total cost for the program; with the
local share being based on the local dollars allocated pursuant to maintenance-of-
effort requirements for Federal air pollution grants. The PERFORMING PARTY
must provide matching funds such that the combined Federal share , derived from
Section 105 funding , and the State share , derived from the current Appropriations
Act (Rider 5), shall not exceed sixty seven percent (67 %), or the total amount of this
Contract may be reduced proportionately so that this condition is met.
2.1.3 The PERFORMING PARTY must ensure that all required Federal certifications
as appears in the Funding Application Package, Exhibit A-1 , are completely filled out
and signed as necessary.
2.1.4 The PERFORMING PARTY must ensure that all required Federal inventory
provisions are addressed in the Funding Application Package , Exhibit A-1 . (See Section
2.5 below.)
2.1 .5 The budget is effective for the term of this Contract. The PERFORMING
PAR TY may move funds between budget categories up to a maximum of ten percent
(10%) of the total Contract amount. Any changes beyond ten percent (10%) may be
made only with the written consent of the TCEQ.
2.2 Requests for Payment
On a quarterly basis , the PERFORMING PAR TY shall submit requests for payment to TCEQ in
accordance with Article 7 of the General Conditions.
2.3 Requests for Rebudget Approval
As needed, the PERFORMING PARTY shall submit to the TCEQ a request for rebudget
approval according to the requirements described in 40 CFR 31.30 ( c) (iii) or ( d) (1-3). Within
thirty (30) days of request , the TCEQ will provide comments or approve the request.
2.4 Purchase of Property Items
Prior to purchase, the PERFORMING PARTY shall submit a request and a justification to the
TCEQ for approval to purchase property items with a unit acquisition cost of $1 ,000 or more , if
purchased with funds provided by contracts and/or matching funds with the TCEQ.
2.5 Physical Inventory Processing
Pursuant to 40 CFR 31 .32 , the PERFORMING PARTY shall be solely responsible for physical
inventory processing as follows:
Contract Number 582-10-86411 Page 45 of 99
2.5.1 The PERFORMING PARTY shall perform an annual physical inventory of total
property purchased with funds provided by contracts with the TCEQ .
2.5.2 The PERFORMING PARTY sh all submit a report to the TCEQ of any
unresolved shortages and unprogrammed losse s ex ceeding $1 ,000 purchased with funds
provided by contracts with the TCEQ.
2.5 .3 On an ongoing basis and as needed, the PERFORMING PARTY shall request
disposition of non-expendable personal property purchased with funds provided by
contracts with the TCE Q.
2.5.4 On an ongoing basis , the PERFORMING PARTY shall maintain property
records as required.
2.6 Financial Status Report
By September 30 of each fiscal year, the PERFORMING PARTY shall submit a final Financial
Status Report (FSR) for this Contract, in accordance with EPA Fiscal Guidance 40 CFR 31.41.
With the final FSR, the PERFORMING PARTY shall submit a list of property purchased
wholly or partially with funds from this Contract and having a unit acquisition cost of $1 ,000 or
more . The FSR shall satisfy State financial reporting requirements for this Contract. This
requirement for a final FSR is in addition to the FSR required to be submitted with each invoice.
The requirements of this Section shall survive the termination of this Agreement.
2. 7 Quality Assurance Audit
The Quality Assurance Audit will consist of an End-of Year Questionnaire plus any on-site
evaluations deemed necessary by the lead TCEQ Quality Assurance Specialist. The TCEQ will
submit to the EPA the results of any Quality Assurance Assessments conducted on the acti v ities
of the PERFORMING PARTY and its progress in meeting contract requirements . The report
will include quali ty assurance findings and recommended solutions to any quality assurance
problems noted. A copy of the report will be provided to the PERFORMING PARTY. The
requirements regarding any Quality Assurance Assessment shall survive the termination ofthis
Agreement. The Quality Assurance Assessment will be conducted as an on-site evaluation as
deemed necessary b y the lead TCEQ Quality Assurance Specialist. An End-of-Year
Questionnaire will be used and conducted as follows:
2.7.l FY2009 End-of-Year Questionnaire (co v ering 9/1 /08 through 8/31 /09) and
FY2010 End-of-Year Questionnaire ( covering 9/1/09 through 8/31/2010)
If the TCEQ identifies deficiencies in the Ambient Air Monitoring Program upon its
FY-09 End-of Year Questionnaire or on-site evaluation required by previous agreement,
or upon its FYlO Quality Assurance Audit, the PERFORMING PARTY shall , within
ninety (90) days after receipt of TCEQ comments or as recommended by the TCEQ,
correct any similar deficiencies in the Work performed under this Contract and report to
the TCE Q any deficiencies that cannot be corrected within the allocated time-frame. If
Contract Number 5 82-10-86411 Page 46 of 99
the deficiencies are not corrected to the satisfaction of the TCEQ , in addition to other
rights the TCEQ may have against the PERFORMING PARTY, it may result in the
TCEQ withholding payment to the PERFORMING PARTY for future monitoring
activities and/or in the PERFORMING PARTY becoming ineligible for future funding .
2.7.2 FY-2009 Quality Assurance Audit (covering 9/1 /08 through 8/31/2009)
FY-2010 Quality Assurance Audit (covering 9/1/09 through 8/31/2010)
a . By July 1 of each fiscal year, the TCEQ will provide an End-of-Year
Questionnaire to be completed by the PERFORMING PARTY. The response to
the questionnaire with the addition of any additional correspondence needed to
resolve issues will be used as an assessment of program activities . An on -site
assessment will be conducted as deemed necessary by the lead TCEQ Quality
Assurance Specialist.
b . By September 30 of each fiscal year, the TCEQ will provide a plan for
any planned on-site Quality Assurance Audit.
c . Within thirty (30) days of receipt of the plan, the PERFORMING
PARTY shall provide a written response to the End -of-Year Questionnaire to
the TCEQ .
d. By November 30 of each fiscal year , the TCEQ w i ll complete the Air
Monitoring Program Quality Assurance Assessment. The Quality Assurance
Assessment will include , but is not limited to , discussions of new and
preliminary findings as well as any associated recommendations.
2.7.3 Within thirty (30) days ofreceipt of each of the FY-2009 and FY-2010 Quality
Assurance Audits , the PERFORMING PARTY shall provide information to the TCEQ
concerning action(s) that will be taken to correct any deficiencies noted in the report.
This response will include a description of the nature and extent of each deficiencies'
impact on data quality, the specific corrective actions taken or planned to address the
deficiencies , actions taken or planned to prevent recurrence , a schedule to bring any
deficiencies in the Ambient Air Monitoring Program up to TCEQ standards , the means
to be used to document completion of each action, and it will identify resources to
accomplish the necessary corrections .
2 . 7.4 Within ninety (90) days after receipt of TCEQ comments or as recommended by
the TCEQ , the PERFORMING PARTY shall correct deficiencies and report to the
TCEQ any deficiencies that cannot be corrected within the allocated time-frame . If the
deficiencies are not corrected to the satisfaction of the TCEQ, in addition to other rights
the TCEQ may have against the PERFORMING PARTY, it may result in the TCEQ
withholding payment to the PERFORMING PARTY for future monitoring activities
and/or in the PERFORMING PARTY becoming ineligible for future funding .
3. Quality Assurance Plans
Contract Number 582-10-86411 Page 47 of 99
A complete task under this Section shall include all of the requirements listed below. In order to
receive the payment set out in the Scope of Work (Contract Costs Budget), the PERFORMING PARTY
must fulfill all of the following subsections . Guidelines or criteria for accomplishment: Sec . 319 , CAA;
40 CFR, Parts 50 , 51 , 53 , and 58 ; EPA QA/R2; EPA QA/RS ; EPA QA 04 ; EPA QA/G-6 ; EPA QA/G-
7 ; EPA QA/09.
3.1 Quality Management Plan
By March 1 of each fiscal year, the PERFORMING PARTY shall submit to the TCEQ its
rev ised/updated Quality Management Plan or a certification that no changes were made . The
Quality Management Plan must adhere to EPA QA/R2 guidance incorporated herein as Exhibit
A-2 . Failure to have an approved plan may result in withholding of all Section 105 Contract
funding until the plan is submitted and approved by the TCEQ. Services or Work performed
under this Contract by the Contractor and any Subcontractor shall conform to the Quality
Management Plan.
3 .2 Quality Assurance Project Plan
By August 1 of each fiscal year, the PERFORMING PARTY shall submit to the TCEQ its
revised/updated Quality Assurance Project Plan associated with this Scope of Work or a
certification that no changes were made , or sign onto the TCEQ NAMS /SLAMS /BORDER
QAPP . The Quality Assurance Project Plan must adhere to EPA QA/RS guidance incorporated
herein as Exhibit A-3 ,-and requirements must be at least as stringent as those described in the
TCEQ NAMS/SLAMS Network and U.S ./Border Support Activities Quality Assurance Project
Plan. Failure to have an approved plan may result in withholding of all Section 105
Contract funding until the plan is submitted and approved by the TCEQ. Services or
Work performed under this Contact by the Contractor and any Subcontractor shall conform to
the Quality Assurance Project Plan. By mutual agreement, Contractor and TCEQ may amend
the QAPP as necessary to reflect changes in the Services or Work to be performed under this
Contract.
4 . Monitoring Operations Program
The PERFORMING PARTY shall provide support of the Texas Ambient Air Monitoring network
objectives for FY-2010 and FY2011 by operating and submitting data for air pollution monitoring sites.
The PERFORMING PARTY shall ensure that the monitoring sites are operated in compliance with
applicable regulations .
The PERFORMING PARTY shall implement and conduct a Monitoring Operations Program as
required by the following :
4.1 Maintenance and Repair of Equipment
The PERFORMING PARTY shall be responsible for all the maintenance and /or all
the repair of any of its equipment at these sites.
Contract Number 5 82-10-86411 Page 48 of 99
4.2 Training
The PERFORMING PARTY shall ensure that its staff is adequately trained and
qualified in order to perform designated tasks. Representatives for the PERFORMING
PARTY are expected to attend TCEQ provided training, workshops , and /or other
activities designed to increase technical capabilities required to support this Agreement.
It shall be the responsibility of the PERFORMING PARTY to identify and obtain any
necessary safety training. The PERFORMING PARTY shall provide a quarterl y report
to the TCEQ pursuant to Article 7 of the General Conditions of this Agreement of
attendance by staff of training, workshops , and/or other activities designed to increase
technical capabilities of the PERFORMING PARTY's personnel. The report shall
include any safety training that the PERFORMING PARTY's personnel attended. This
report shall be discussed during the End-of-Year Assessment.
4.3 Quality Assurance/Quality Control Assessments
4 .3.1 On a quarterly basis , the PERFORMING PARTY shall perform performance
evaluations for accuracy on at least twenty five percent (25%) of the NAMS/SLAMS
designated monitors. All NAMS/SLAMS monitors will be assessed at least once a year.
If the data quality objectives are not met, the PERFORMING PARTY must produce in
writing an assignable cause for not meeting this specification, the specific corrective
actions taken or planned to address the nonconformance , actions taken or planned to
prevent recurrence , the timetable for completing each action, and the means to be used
to document completion of each action. The TCEQ reserves the right to reject the
affected data sets and payment may be withheld if seventy-five (75%) percent data
return per quarter is not accomplished.
4.3.2 On an ongoing basis , the TCEQ reserves the right to assess , which includes
performance evaluation, inspection, surveillance , peer review, or audit monitors
operated by the PERFORMING PARTY. Such Assessments are expected to be
announced and access to the monitors and the associated measurement data are expected
to be coordinated with the PERFORMING PARTY's staff. At least one (1) assessment
per year should be expected. More frequent assessments may occur if significant or
persistent data quality issues occur.
4.4 Air Quality Data (AQD) Reporting
The PERFORMING PARTY shall submit to the TCEQ all air quality data (including any
required metals analysis) in a mutually agreed upon format for the preceding quarter for all
monitors as designated by the TCEQ , including NAMS , and SLAMS . To satisfy Federal
requirements , this data shall be submitted within forty five ( 45) days after the end of the Federal
calendar quarter. All air quality data submittals shall be a~companied by the precision and
accuracy reports for ambient monitors as designated by the TCEQ , including all NAMS , and
SLAMS , which describe the quality of the data submitted.
Contract Number 5 82-10 -86411 Pa ge 49 of 99
4.4.1 Because the Federally mandated time-frames do not coincide with the Contract
period, the data submittal required in Section 4.4 (Air Quality Data Reporting) may be
evaluated by the TCEQ after payment has been made to the PERFORMING PARTY or
after the Contract period has expired for monitoring services. Any deficiency related to
the quality and /or timeliness of the data submittal report will be documented and
reported by the TCEQ to the PERFORMING PARTY. If the deficiencies are not
corrected to the satisfaction of the TCEQ , it may result in the TCEQ withholding
payment to the PERFORMING PARTY for future monitoring activities and /or in the
PERFORMING PARTY becoming ineligible for future funding .
4.5 Notice of Special Purpose Monitoring
At least thirty (30) days before monitoring begins or as soon as is practicable , the
PERFORMING PARTY shall provide written notification to the TCEQ Monitoring Program
and the TCEQ Regional Office of any special purpose monitoring to be performed. This
notification shall include a summary report describing special purpose monitoring to be
conducted. If the monitoring is anticipated to continue for a period greater than ninety (90)
days , quarterly accuracy audits and biweekly precision checks , in the case of continuous
monitoring , shall be performed.
4.6 Reporting of Special Purpose Monitoring Data
With quarterly data, the PERFORMING PARTY shall submit data to the TCEQ in a mutually
agreed upon format for special purpose monitoring conducted. A summary report of monitoring
results will be submitted within forty five ( 45) days after completion of monitoring.
4.7 NAMS/SLAMS Network Review
If the PERFORMING PARTY makes any changes to its local network during a quarter , the
Performing Party shall provide a status report of its local network to evaluate the adequacy of
the existing network to meet the State and Federal monitoring objectives. Guidelines or criteria
for accomplishment: 40 CFR, Part 58. The network review process shall be conducted as
follows:
4. 7 .1 By May 1 of each fiscal year, the TCEQ will provide a draft of any proposed
revisions to the PERFORMING PARTY for review, evaluation, and any additional
proposals for NAMS /SLAMS network.
4.7.2 By May 14 of each fiscal year , the PERFORMING PARTY shall submit a
review and evaluation document , including recommendations for network changes to
the TCEQ.
4.7.3 By June 1 of each fiscal year, the TCEQ will submit a modifiedNAMS/SLAMS
review and evaluation document to the EPA. A copy of the final document will be
provided to the Performing Party .
Contract Number 582-10-86411 Page 50 of 99
4.7.4 On an ongoing basis , TCEQ will notify the PERFORMING PARTY of EPA
approved changes to NAMS /SLAMS network.
Contract Number 5 82-10-86411 Page 51 of 99
B. DELIVERABLES
The PERFORMING PARTY shall provide the appropriate TCE Q office with the reports required
below to prov ide the information on Tasks listed in the Scope of Work (Statement of Service s) of
this Agreement:
1. Administrative Regulations
The requirements regarding the End-of-Year Assessment and the following reports
shall survive the termination of this Agreement.
a. By September 30 of each fiscal year, the PERFORMING PARTY shall submit a
final Financial Status Report (FSR) for this Contract, as prescribed under Section 2 .6
in Scope of Work (Statement of Services) of this Agreement.
b. Each fiscal year within thirty (30) days ofreceipt, the PERFORMING PARTY
shall provide a written response to the End-of-Year Questionnaire to the TCEQ , as
prescribed under Section 2 . 7 .2 in Scope of Work (Statement of Services) of this
Agreement.
c. Within thirty (30) days of receipt of each of the FY-2009 and FY2010 Quality
Assurance Audits , the PERFORMING PARTY shall provide to the TCEQ
information concerning action(s) that will be taken to correct any deficiencies noted
in the report, as prescribed under Sections 2. 7 .3 and 2. 7.4 in the Scope of Work
(Statement of Services) of this Agreement.
d. Within thirty (30) days ofreceipt at PERFORMING PARTY's OFFICE a copy of
the annual independent single audit required by 0MB Circular A-133 shall be
provided by the PERFORMING PARTY to the TCEQ Project Manager.
e . All other deliverables required under this Contract.
2. Quality Assurance Plans
a. By March 1 of each fiscal year , the PERFORMING PARTY shall submit to the
TCEQ its revised/updated Quality Management Plan or a certification that no
changes were made, as prescribed under Section 3.1 in the Scope of Work
(Statement of Services) of this Agreement.
b. By August 1 of each fiscal year, the PERFORMING PARTY shall submit to the
TCEQ its revised/updated Quality Assurance Project Plan associated with this Scope
of Work or a certification that no changes were made , as prescribed under Section
3 .2 in the Scope of Work (Statement of Services) of this Agreement.
Contract Number 582-10-86411 Page 52 of 99
3. Monitoring Operations Program
The requirements of this Section shall survi ve the termination of the Agreement .
a. The PERFORMING PARTY shall submit a Quarterl y Report Checklist
incorporated herein as Exhibit A-4 , pursuant to Article 7 of the General Conditions
and Form B-1 with every invoice . The Checklist, along with the required State of
Texas Purchase Voucher, the Financial Status Report , and the TCEQ In voice , will
serve as a request for payment of services by certifying that the PERFORMING
PARTY is supporting the Texas Ambient Air Monitoring network as prescribed
under Section 4 in the Scope of Work (Statement of Services) of this Agreement.
b. Within forty five ( 45) days after the end of the Federal calendar quarter , the
PERFORMING PARTY shall submit to the TCEQ all air quality data (including
metals analysis) in a correct AIRS format for the preceding quarter for all monitors
as designated by the TCEQ , including NAMS , SLAMS , as prescribed under Section
4 .4 in the Scope of Work (Statement of Services) of this Agreement.
c . At least thirty (30) days before monitoring begins or as soon as is practicable, the
PERFORMING PARTY shall provide written notification to the TCEQ Monitoring
Program and the TCEQ Regional Office of any special purpose monitoring to be
performed , as prescribed under Section 4 .5 in the Scope of Work (Statement of
Services) of this Agreement.
d . With quarterl y data, the PERFORMING PARTY shall submit data to the TCEQ
in the correct AIRS format for special purpose monitoring conducted . A summary
report of monitoring results will be submitted after completion of monitoring , as
prescribed under Section 4.6 in the Scope of Work (Statement of Services) of this
Agreement.
e . The PERFORMING PARTY shall provide a status report of its local network , as
changes occur in the network , to the TCEQ , to evaluate the adequacy of the existing
network to meet the State and Federal monitorin g objectives , as prescribed under
Section 4. 7 in the Scope of Work (Statement of Services) of this Agreement.
Contract Number 58 2-10-86411 Page 53 of 99
Contract Costs Budget
ARTICLE 1. AUTHORIZED EXPENSE BUDGET
1.1. The authorized expenses, acquisitions, or expenditures under thi s Contract are as follows:
Budget Category
Personne l/Sa lary
Fringe Benefitsl
Travel
Supplies
Equipment
Contractual
Other
Other -Third Party In-kind
Total Direct Costs
Authorized Indirect Costs2
TCEQ Share
Grantee Cost Share
TOTAL COSTS
3 Budget
$52 ,822.00
$9,132.00
$2,500.00
$4 ,500.00
$0.00
$0.00
$21,205.00
$0.00
$90,159.00
$13,308.00
$ 103 ,467.00
$50,961.00
$ I 54,428.00
1. Fringe benefits shall be reimbursed at actual costs and shall not exceed eighteen percent 18 % of total
direct personnel/salary costs for the applicable period of the term of the Contract. Prior to the
termination date of this Contract, an audited fringe rate which is different from the above stated
percentage of total direct personnel/salary costs for the applicable period of the term of the Contract
may be accepted by Commission. lf cumulative transfers among the budgeted cost categories caused
by this approved change in fringe rate exceed ten percent (I 0%) of the total costs , the Commission
and PERFORMING PARTY must negotiate a new contract budget and incorporate such into this
Contract by way of a contract amendment.
The PERFORMING PARTY agrees to reimburse the Commiss ion an y overpayments received as a
result of the above stated rate being higher than the approved final audited fringe rate for the period
under consideration. Nothing in this Section, or the results of any fringe rate audit or final fringe rate
approval , shall cause the Commission to owe the PERFORMING PARTY more than the "Total
Costs" or result in a reduction in the deliverables a s set forth in the Scope of Work . lfthe final fringe
rate is higher than the provisional rate , an adjustment may be made in a future year contract.
2. The indirect rate currently authorized (for the purpose of calculating amounts to be reimbursed by the
TCEQ) shall not exceed twenty-one point forty-eight percent 21.48 % of salaries & fringe benefits
(distribution base) for the applicable period of the term of the Contract, s ubject to the provisions
outlined in the Indirect Cost Rate Section of this Article.
TCEQ and Performing Party agree that costs shall not be categorized as both indirect costs and as
"other" direct costs. To facilitate this end, Performing Party shall provide to TCEQ a quarterl y
narrative of expenditures under the indirect cost category. lf a particular cost has been categorized as
both indirect and direct (other), then Performing Party shall return the overpaid costs to TCEQ , or
TCEQ will count the overpaid cost as an offset against future invoices.
Contract Number 582-10-86411 Page 54 of 99
3. The funds budgeted by category reflect one hundred percent I 00% of the sum of local match and
TCEQ/Federal amounts , as applicable. The local match rate is thirty three percent 33 % and the
TCEQ/Federal share represents sixty seven percent 67 %.
1.2 . The PERFORMING PARTY is responsible , throughout the term of thi s Contract, for tracking and ensuring
that expenditure amounts under this Contract remain within the various budgeted cost categories set forth in this Article .
If, after taking into consideration the requirements set forth in this Article , the PERFORMING PARTY determines that
changes or adjustments to any of the current cost category amounts are likel y to be necessary , the PERFORMING
PARTY shall submit a Budget Revision Form to the TCEQ for review and approval.
1.3. Indirect Cost Rate: The Commission and the PERFORMING PARTY must choose one (I) ofthe following
options relating to indirect rate , and identify that option clearly in the contract budget. Ifno option is selected , indirect
rate will NOT be reimbursed.
Option On e: X
1.3 .1. The PERFORMING PARTY shall comply with 0MB Circular A-87 and the Uniform Grant
Management Standards (UGMS) relating to Indirect Cost Rates .
1.3.2. The PERFORMJNG PARTY shall maintain all indirect rate records for the Commission 's inspection or
submit records as per the Agency 's request.
1.3 .3 . PERFORMING PARTY agrees to utilize the provisional rate as established below and agrees to
conduct an indirect rate audit. A final indirect rate will be established based on the actual allowable costs , as
provided in UGMS , for the period as established by an audit conducted by a currently licensed independent
certified public accountant and submitted to the PERFORMING PARTY and the Commission . This indirect
rate audit may be conducted at the same time as any other audit required of the PERFORMING PARTY. The
cost of the indirect rate audit will be accounted for within the indirect rate , and not directly charged to the
Commission . If the indirect rate audit is not provided to the Commission within the earlier of thirty (30) da ys
after receipt of the auditor 's report or nine (9) months after the end of the audit period, Option Two (below)
will apply .
(i) In accordance with 0MB Circular A-87 and the UGMS , when the PERFORMING PARTY has a
Federal cognizant agency or a State coordinating agency , the PERFORMING PARTY must submit the indirect
rate approved by the Federal cognizant agency or State coordinating agency within the past twenty four (24)
months as the provisional indirect rate.
(ii) Alternatively, if the PERFORMING PARTY does not have an assigned Federal cognizant agency
or a designated State coordinating agency or ifno rate is approved by the designated oversight agency , the
Commission and the PERFORMING PARTY may negotiate a provisional indirect rate in accordance with
UGMS .
(iii) ln the event, prior to the termination date of this Contract, an audited indirect rate which is
different from the initial provisional indirect rate set forth in thi s Section is accepted by Commission, the
Commission and PERFORMING PARTY may negotiate a new contract budget and incorporate such into this
Contract by way of a contract change.
(iv) The provisional rate will be included in the Authorized Expense Budget and shall remain in effect
subject to determination ofa final indirect rate which is based on an audit of the contract period, performed by
a currentl y licensed independent certified public accountant, which specifically examines and reports the
indirect rate for the PERFORMING PARTY 's accounting period(s) covered under this Contract.
(v) The PERFORMING PARTY agrees to reimburse the Commission any overpayments received as a
result of this provisional rate being higher than the approved final audited indirect rate for the period under
consideration . Nothing in this Section , or the results of any indirect cost audit or final indirect rate approval ,
shall cause the Commission to owe the PERFORMING PARTY more than the "Total Obligation Amount" or
Contract Number 582 -10-86411 Page 55 of 99
result in a reduction in the deliverables set forth in the Scope of Work. lfthe final indirect rate is higher than
the provisional rate, an adjustment may be made in a future year contract.
Option Tw o:
1.3.4 . Indirect Cost Rates. The PERFORMING PARTY shall comply with 0MB Circular A-87 and the
Uniform Grant Management Standards (UGMS) relating to Indirect Cost Rates .
1.3 .5. The PERFORMING PARTY shall maintain all indirect rate records for the Commission 's inspection or
submit records as per the agency 's request.
1.3.6. PERFORMJNG PARTY agrees to an indirect rate often percent 10 % or le ss of the direct salary and
wage costs of providing the service, in accordance with UGMS Part II , Attachment E, Paragraph E.2 .d . No
audit of this rate will be required by the Commission.
Option Three:
I .3 .7 . PERFORMING PARTY agrees to direct bill all costs and not require indirect cost for the Contract.
I .4. When the PERFORMING PARTY applies for final payment, the PERFORMJNG PARTY will certify on a
written form provided by TCEQ that the PERFORMJNG PARTY has not engaged in the lobbying of the Federal
government or in litigation against the United States unless authorized under existing law.
ARTJCLE 2. SUBMlTTAL OF PAYMENT REQUESTS
Payment requests must be submitted at the interval specified below (whichever is checked; if none is checked, payment
requests must be submitted monthly ; if more than one is checked , invoices must be submitted when both requirements are
met):
o monthly
o upon comp letion of deliverables specified herein (see ___________ ).
o upon comp letion of all Work
X Other (specify) Quarterly -To be received within thirty (30) days after the end of the quarter. Included
with the invoice which shall be provided in a format acceptable to the TCEQ, will be the FSR (Financial Status
Report) and the HUB PAR form .
Contract Number 582-10-86411 Page 56 of 99
THE EXHIBITS AND FORMS LISTED BELOW ARE SEPARATE ATTACHMENTS
A-1 (Funding Application Package)
A-2 (EPA QA/R-2) -Requirements for Quality Management Plans
A-3 (EPA QA/R-5) -Require m e nts for Quality As suranc e Proj ect Plan s
B-12 (Allowabl e Exp e nditure Guid eline s)
Contract Number 582-10-86411 Page 57 of 99
FY-2010 SECTION 105 CONTRACT QUARTERLY REPORT
Check List for Reimbursement Request Approval
DATES TO
Exhibit A-4
QUARTER ------ ------
Sections A -Care all part of this Checklist.
A. Administrative Regulations
A -1. Have you reviewed your procurement systems for compliance with 40 CFR 3 5 according to the
Procurement System Certification form (EPA form 5700 -48) in your Financial Application Package?
Yes . The certification was submitted on -----------No. This is not our year to do this .
A -2. Have you purchased any property items with a unit acquisition cost of $1 ,000 or more ?
_ Yes. The request to purchase the property item(s) was appro ved by the TCEQ on
No . We have not made any such purchases .
A-3 . Are you maintaining property records (performing physical inventory) as required ?
_ Yes . They are available in our office .
No . Please explain .
A-4. Is the quarterly HUB Progress Assessment Reports required in the General Conditions , Article
4.34 attached to this Reimbursement Request ?
Yes.
No. Please explain .
A-5 . What is the date of your most recent independent audit report (required by 0MB A -133). Was
this report submitted to the TCEQ Project Representati ve ?
Yes . Submitted on -------
No . Please explain .
Contract Number 582-10-86411 Page 58 of 99
FY-2010 SECTION 105 CONTRACT QUARTERLY REPORT
Check List for Reimbursement Request Approval
A-6. Have you provided written response to the FY-2009 End-of-Year Review questionnaire by
the deadline of September 30, 2009 or within thirty (30) days after receipt of the
questionnaire?
Yes. It was submitted on --------------No. Please explain .
NA. Due in the 1st quarter of the Contract only .
A-7. Within thirty (3 0) days of receipt of your FY -2009 End -o f-Year Review Assessment did you
provide information concerning actions to be taken to correct any deficiencies found during
the End-of-Year Review?
Yes.
_ No. Please explain.
N I A. We had no deficiencies.
_NI A. Not due this quarter.
A-8. Have the deficiencies been corrected?
Yes.
-No. We are still within the ninety (90) day window .
-No. There are deficiencies that cannot be corrected within the allotted time-frame.
An explanation is attached.
N I A.
A-9. Have you performed a physical inventory of total property purchased with funds provided by
contracts with the TCEQ by the deadline of August 31, 201 O?
_ Yes. The report is available in our office.
_ No. Please explain.
NA. Due in the 4th quarter of the Contract only.
A-10 . Have you reported any unresolved shortages and unprogrammed losses exceeding $1 ,000 by
the deadline of August 31, 2010?
_ Yes. The report was made on -------------
No. We have none to report.
NA. Due in the 4th quarter of the Contract only.
Contract Number 582-10-86411 Page 59 of 99
FY-2010 SECTION 105 CONTRACT QUARTERLY REPORT
Check List for Reimbursement Request Approval
A -11. Is the final Financial Status Report for this Contract, along with a list of property costing
$1 ,000 or more and purchased with contract funds , attached to this reimbursement request
and being submitted no later than the deadline of September 30, 201 O?
Yes.
_ No . Please explain.
_ NA. Due in the 4th quarter of the Contract only.
A -12 . Have you submitted your funding application for FY-2010 within thirty (30) days ofreceipt
of funding allocation notification and current Funding Application Package?
Yes . It was submitted on --------------No. Projected submittal date : _______ _
NA. Due in the 4th quarter of the Contract only.
A -13 You are required to provide matching funds of not less than thirty three percent (33%) for the
Section 105 Contract, part of which can be funds from the State Compliance Contract.
Funding allocated for Title V activities in the State Compliance Contract cannot be used as
match. You must demonstrate that funds provided to your program under the Section 105
Contract do not cause failure of the match requirements under the State Compliance
Contract, which requires that no more than sixty seven percent ( 67%) of total funding for this
program comes from State and Federal sources. Please list the breakdown for your FY-2010
air program :
*
State Compliance Contract $ %
Section 105 Contract $ %
Other 105 Funds* $ %
City/County Funds $ %
Total $ 100%
In order to accurately calculate your match under the terms of the State Compliance
Contract and the Section 105 Contract, you must include any additional 105 funding you
have received directly from the EPA that is not processed through the TCEQ .
Contract Number 582-10 -86411 Page 6 0 of 99
FY-2010 SECTION 105 CONTRACT QUARTERLY REPORT
Check List for Reimbursement Request Approval
B. Quality Assurance Planning
B -1. Have you submitted a revised/updated Quality Management Plan or certification of no changes
by the deadline of March 1, 201 O?
_ Yes. The report was submitted on _________ _
_ No . Please explain.
_ NA. Not due this quarter .
B-2. Have you submitted the Quality Assurance Project Plan or certification of no changes by the
deadline of August 1, 201 O?
Yes. It was submitted on ------------No . Please explain.
NA. Not due this quarter.
Contract Number 582-10 -86411 Page 61 of 99
FY-2010 SECTION 105 CONTRACT QUARTERLY REPORT
Check List for Reimbursement Request Approval
C. Monitoring Operations Program
C-1. Have there been any changes to your Scope of Work as outlined in Attachment A (Statement of
Services to be performed)?
Yes.
No.
C-2. Did your monitoring staff participate in any applicable training activities during this reporting
period?
Yes. Please list.
No.
C-3. Have yo u performed accuracy audits on at least twenty five percent (25%) of the
NAMS /SLAMS /P AMS designated monitors during this reporting period?
Yes. The report for this will be submitted within forty five ( 45) days of the end of the
quarter.
No.
C-4 . Have you collected air quality data during this quarter which you will submit to TCEQ in a
mutually agreed upon format?
Yes . The report will be submitted no later than ___________ _
No.
C-5. Was precision and accuracy data collected to quality assure the air data?
Yes. The report will be submitted no later than ----------
No.
C-6. Have you experienced any significant equipment failure or instrument malfunction?
Yes. Please explain.
No.
C-7. Has thirty (30) days written notice been given prior to the start of any special purpose
monitoring?
Yes. Notice and a summary report submitted on ----------No.
N I A. We have no new SPMs.
Contract Number 582-10-86411 Page 62 of 99
FY-2010 SECTION 105 CONTRACT QUARTERLY REPORT
Check List for Reimbursement Request Approval
C -8. Has reporting of Special Purpose Monitoring data been submitted in a mutually agreed upon
format with quarterly data?
Yes.
_ No. Please explain.
N I A.
C -9. Has a summary report of Special Purpose Monitoring results been submitted in a mutually
agreed upon format upon completion of monitoring?
_ Yes . Report was submitted on _________ _
_ No. Please explain.
N I A.
C-10. Have you submitted a review and evaluation document, including recommendations for network
changes , for the NAMSISLAMS Network Review by the deadline of May 1?
Yes . Submitted on _________ for _ quarter.
No.
C-11 . Have you submitted the required Quarterly Status Report for evaluating adequacy of the existing
network to meet State and Federal standards?
Yes .
No. Please explain.
NA
C-12. If any changes were made to your local monitoring network during a quarter , have you
determined whether the nearest practicable estimate of your actual cost (including your required
match of thirty three percent (33%)) for the Monitoring Operations Program activities is less
than or equal to the cumulativ e fixed monthly fee ?
Yes .
No .
Contract Number 582 -10 -86411 Page 63 of 99
FY-2010 SECTION 105 CONTRACT QUARTERLY REPORT
Check List for Reimbursement Request Appro v al
Sections A -C are all part of this Checklist.
Authorized Signatory of Performing Party Date
Printed Name of Signatory
Contract Number 5 82-10-86411 Page 64 of 99
FY-2011 SECTION 105 CONTRACT QUA RTERLY REPORT
Check List for Reimbursement Request Approval
DATES TO
ExhibilA-4
__ QUARTER ------ ------
Sections A - C are all part of this Checklist.
A. Administrative Regulations
A-1 . Have you reviewed your procurement systems for compliance with 40 CFR 3 5 according to the
Procurement System Certification form (EPA form 5700-48) in your Financial Application Package ?
Yes . The certification was submitted on ----------No . This is not our year to do this .
A-2. Have you purchased any property items with a unit acquisition cost of $1 ,000 or more?
_ Yes. The request to purchase the property item(s) was approved by the TCEQ on
No. We have not made any such purchases.
A -3. Are you maintaining property records (performing physical inventory) as required ?
_ Yes. They are available in our office.
No . Please explain .
A-4 . Is the quarterly HUB Progress Assessment Reports required in the General Conditions , A rt icle
4.34 attached to this reimbursement request?
Yes.
No . Please explain.
A -5. What is the date of your most recent independent audit report (required by 0MB A-13 3). Was
this report submitted to the TCEQ Project Representative ?
Yes. Submitted on -------
No. Please explain.
Contract Number 582 -10 -86411 Page 65 of 99
FY-2011 SECTION 105 CONTRACT QUARTERLY REPORT
Check List for Reimbursement Request Approval
A -6. Have you provided written response to the FY-2010 End-of-Year Review questionnaire by
the deadline of September 30, 2010 or within thirty (30) days after receipt of the
questionnaire?
Yes . It was submitted on --------------No. Please explain.
_ NA. Due in the 1st quarter of the Contract only.
A -7 . Within thirty (30) days ofreceipt of your FY -2010 End-of-Year Review Assessment did you
provide information concerning actions to be taken to correct any deficiencies found during
the End-of-Year Review?
Yes.
_ No . Please explain.
N I A. We had no deficiencies .
N I A. Not due this quarter.
A -8 . Have the deficiencies been corrected?
Yes.
_ No . We are still within the ninety (90) day window.
No. There are deficiencies that cannot be corrected within the allotted time-frame.
An explanation is attached.
N I A.
A -9. Have you performed a physical inventory of total property purchased with funds provided by
contracts with the TCEQ by the deadline of August 31 , 2011?
_Yes. The report is available in our office .
No . Please explain .
_ NA. Due in the 4th quarter of the Contract only .
A-10. Have you reported any unresolved shortages and unprogrammed losses exceeding $1 ,000 by
the deadline of August 31 , 2011?
_Yes. The report was made on ____________ _
No . We have none to report.
NA. Due in the 4th quarter of the Contract only .
Contract Number 582 -10 -86411 Page 66 of 99
FY-2011 SECTION 105 CONTRACT QUARTERLY REPORT
Check List for Reimbursement Request Approval
A-11 . Is the final Financial Status Report for this Contract, along with a list of property costing $1 ,000
or more and purchased with contract funds , attached to this reimbursement request and being
submitted no later than the deadline of September 30 , 2011 ?
Yes.
_ No . Please explain.
_ NA. Due in the 4th quarter of the Contract only.
A-12 . Have you submitted your funding application for FY-2011 within thirty (30) days ofreceipt of
funding allocation notification and current Funding Application Package?
Yes. It was submitted on ---------------No. Projected submittal date: _______ _
NA. Due in the 4th quarter of the Contract only.
A-13 You are required to provide matching funds of not less than thirty three percent (33%) for the
Section 105 Contract, part of which can be funds from the State Compliance Contract. Funding
allocated for Title V activities in the State Compliance Contract cannot be used as match. You
must demonstrate that funds provided to your program under the Section 105 Contract do not
cause failure of the match requirements under the State Compliance Contract, which requires
that no more than sixty seven percent ( 67%) of total funding for this program comes from State
and Federal sources. Please list the breakdown for your FY-2011 air program:
*
State Compliance Contract $ %
Section 105 Contract $ %
Other 105 Funds* $ %
City/County Funds $ %
Total $ 100%
In order to accurately calculate your match under the terms of the State Compliance
Contract and the Section 105 Contract, you must include any additional 105 funding you
have received directly from the EPA that is not processed through the TCEQ.
Contract Number 582-10-86411 Page 67 of 99
FY-2011 SECTION 105 CONTRACT QUARTERLY REPORT
Check List for Reimbursement Request Approval
B. Quality Assurance Planning
B-1. Have you submitted a revised/updated Quality Management Plan or certification of no changes
by the deadline of March 1, 2011?
_ Yes . The report was submitted on _________ _
_ No. Please explain .
NA . Not due this quarter.
B-2 . Have you submitted the Quality Assurance Project Plan or certification of no changes by the
deadline of August 1, 2011 ?
Yes. It was submitted on ------------No . Please explain.
_ NA. Not due this quarter.
Contract Number 582 -10-86411 Page 68 of 99
FY-2011 SECTION 105 CONTRACT QUARTERLY REPORT
Check List for Reimbursement Request Approval
C. Monitoring Operations Program
C-1. Have there been any changes to your Scope of Work as outlined in Attachment A (Statement of
Services to be performed)?
Yes.
No.
C-2. Did your monitoring staff participate in any applicable training activities during this reporting
period?
Yes. Please list.
No .
C-3. Have you performed accuracy audits on at least twenty five percent (25%) of the
NAMS /SLAMS/P AMS designated monitors during this reporting period?
Yes. The report for this will be submitted within forty five ( 45) days of the end of the
quarter.
No.
C-4. Have you collected air quality data during this quarter which you will submit to TCEQ in a
mutually agreed upon format?
Yes. The report will be submitted no later than _________ _
No.
C-5. Was precision and accuracy data collected to quality assure the air data?
_Yes. The report will be submitted no later than _________ _
No.
C-6. Have you experienced any significant equipment failure or instrument malfunction?
Yes. Please explain.
No.
C-7. Has thirty (30) days written notice been given prior to the start of any special purpose
monitoring?
Yes . Notice and a summary report submitted on _________ _
No .
N I A. We have no new Special Purpose Monitoring.
Contract Number 582-10-86411 Page 69 of 99
FY-2011 SECTION 105 CONTRACT QUARTERLY REPORT
Check List for Reimbursement Request Approval
C-8. Has reporting of Special Purpose Monitoring data been submitted in a mutually agreed upon
format with quarterly data?
Yes.
_ No. Please explain.
N I A.
C-9. Has a summary report of Special Purpose Monitoring results been submitted in a mutually
agreed upon format upon completion of monitoring?
_Yes. Report was submitted on ________ _
_ No. Please explain.
N I A.
C-10. Have you submitted a review and evaluation document, including recommendations for network
changes, for the NAMSISLAMS Network Review by the deadline of May 1?
Yes. Submitted on _________ for _ quarter.
No.
C-11. Have you submitted the required Quarterly Status Report for evaluating adequacy of the existing
network to meet State and Federal standards?
Yes.
No. Please explain.
NA
C-12. If any changes were made to your local monitoring network during a quarter, have you
determined whether the nearest practicable estimate of your actual cost (including your required
match of thirty three percent (33%)) for Monitoring Operations Program activities is less than or
equal to the cumulative fixed monthly fee?
Yes.
No .
Contract Number 5 82-10-86411 Page 70 of 99
Sections A -C are all part of this Checklist.
Authorized Signatory of Performing Party Date
Printed Name of Signatory
Contract Number 582-10-86411 Page 71 of 99
TCEQ HUB Progress Assessment Report (PAR) Form B-1
Part A . Identify in g Information .
I. TCEQ Contract No .: ____________ _ 2. Your In voice No . ____________ _
3. Work Order No. (if applicable) _________ 4. For work completed between __ I~'-/ -and
5. Prime Contractor ("You"): ___________ _ 6. Prime Contractor Vendor ID #: _________ _
7. Contact:------------------8. Phone: .,.___.,_ ______ _
9. l s the Prime Contractor a Texas certified HUB and performing at least 25% of the total value of the contract? Yes_ No_
Part B. C urrent In vo ice FOR H U B and/or No n-HU B Subcontracting Information.
JO D Ch kb "f HUB d/ N HUB b ec OXI no an or on -SU con rac ors h ave b een use d th" . d th 1s peno '0 fill erw1se 1 out b I I" d bl e ow 1ste ta e:
I
I
Va lue of thi s subcontractor's
Na me and Address of HU B I Type of I participation for t hi s invoicin g
and/or N on-HU B Subcontractor I Vendor ID No. HU B Provid e d *: period
DMBE I D Services $
DWBE I D Co mmodities
DMBE I D . $ Services
I I DWBE I D Commodities
DMBE I D Services
I
$
DWBE D Commodi tie s
J Total I $
* If su bcontractor's services include both labor and material s, check "se rvices'· only.
No te: lfyou need room to li st more s ubcontractors, enter this information on a plain sheet of paper and attach it to this fo rm.
I I . Total of current invoice:
I 2. Total of current invoices from certified HUB s ubcontractors:
13. Percent of HUB expenditures for this invoice:
Part C. Total Contract/HUB Subcontracting Information
14 . Total amount in voiced to date:
15 . Total invoiced from certified HUB Subcontractors to date:
I 6 . Percent of HUB invoices for total contract to date:
$ _______ _
$ _______ _
_________ %
(line 12 + lin e 11 ) x 100
$ ________ _
__________ %
(line 15 .,. lin el4)x100
17. HUB s ubcontracting goal for thi s contract: %
Part D. A ffirmation. The informatio n pro vided on thi s form is comp lete and correct. You or ou r representative must sign here:
I 8. Name: _________________ Signature __________________ 19 . Date: ___ _
Part E. Other Information. For TCEQ use only. (Project manager: Complete this box and sign.)
Type of funding : D State D Federal D Both
Check if prime contractor is one of the following:
D River Au th ority D lnterlocal
Index : COBJ: --------
Contract Number 582-10-86411
Date In : -~' -~-PCA Code(s) ______ _
Printed Name: --------------------
Signature:---------------------
ofgg:-------------------------__J
General Information
The purpose of thi s fo rn1 is to he lp th e Texas Commission on Enviro nm enta l Q uali ty (TCEQ; "us ") to track th e valu e of bu s in ess we do w ith Texas-certi fied
"hi stori call y underu tili zed bu s in esses" (H UB s) and fe derall y d es ig nated "minori ty-or wom an-owned bu s in ess enterpri ses'· (MWBEs). In thi s fo rn1, th e
acro nym "H UB" refe rs to bo th of th ese classes of busin esses .
Do I Have to Complete This Form ?
If we have award ed you a contract to prov id e us wi th profess ional services, other services, or com mod it ies and yo ur contract contains a subcontractin g plan,
th en you must compl ete thi s fo rm each t im e yo u s ubmit an invo ice or set of in vo ices to u s-even if no subcontracting occurred during the period covered by
th ese invoices.
If you are a HUB, yo u must perform at least 25 percent of th e to tal va lu e of th e contract w ith yo ur own or leased empl oyees as d efi ned by th e Inte rnal
Revenue Service in ord er fo r th e agency to rece ive 100 pe rcent HUB credi t for th e entire contract. Yo u may s ubcontrac t m o re th an 75 percent of the contract
with H UBs or non-HUB s ub contractors, but you must report to us th e va lu e-bo th do ll ar am o un t and percentage-of yo ur contract that was actua ll y perfo rn1 ed
by yo u and yo ur sub contractors durin g each in vo ici ng perio d .
Where Do I Tu rn This Form In?
W hen you have co mpl eted thi s fo rm , an ach it to your invoices and submit it to o ur proj ect manager fo r yo ur contract.
Where Can I Get More Answers?
If yo u ha ve any oth er qu esti o ns , call th e proj ect m anager nam ed o n your contract or o ur HUB P rogram D ir ector: (5 12/239-1 273).
Definitions
These brief defi nitio ns may he lp yo u complete thi s form. For term s where a full legal defi ni t ion m ay be helpful , we have c ited th e rul e or law th at g ives th at
d efiniti on .
C o mmodities--m ateri a ls, suppli es , or equipment. May include cons um a bl e arti c les (for exampl e, office supplies) or durabl e item s (for example, computers,
furniture, o r equipment).
Ot her services--all servi ces oth er th an constru cti on and pro fess ional servi ces, includin g cons ul tin g services (Texas Government Code, C hapter 2254,
S ubcha pter B ).
Prim e con t r actor (or "prime"}--any bu sin ess, age ncy, or individua l who prov id es commod ities or services to us under a pu rc hase order o r oth er contrac t.
Profess io na l s erv ices--servi ces of acco untants, archi tects, eng in eers, land s urveyo rs, o ptom etri sts, and ph ys ic ians (Texas Government Cod e, C ha pter 2254,
S ub chapter A).
Serv ice s--( I ) fun cti ons perfo rmed fo r us by an outs id e source-for example, equipment re pa ir, cons ultin g, hazard o us waste di s posal, or work by sho rt-te rm
temporary em ployees.
(2) s im ilar fun cti ons perform ed fo r th e prim e contractor by an o ut s id e source .
S ubcontractor-any bu s in ess, agency, or indi v idua l (o th e r th an an empl oyee) w ho prov id es commo di ties or services to th e prime contrac tor.
Total co n t r act (Item 14)-on this fo rn1 , tota l valu e of yo ur contract w ith us, including a ll m onetary amendments, if any.
Ven dor ID N o.-the I I -di g it tax pa yer id ent ifica tion number assigned to thi s s ubcontrac tor by Comptroll er of Public Acco unts . T he s ubcontracto r sho ul d be
a bl e to prov id e you wi th th is number.
Instructions
I . TCEQ Contract No. -E nter th e contract number w e have ass igned to this contract. T hi s n umber a ppears on th e fi rst page of th e contract.
2. Your In vo ice No. -Enter yo ur in vo ice number for each in vo ice yo u are s ubmitting w ith thi s form.
3. Work O rd er No. - If appli ca bl e, e nte r yo ur work ord er number for the s ite, ph ase, o r program .
4. For work compl eted between -Enter th e peri od of time in whi ch th e work covered by th ese in vo ices was carried o ut.
5. Prim e Contractor -Enter th e name of th e contractor to whi ch w e award ed thi s contract.
6. Prim e Contracto r Ve nd or ID# -E nter the I I -di g it ve nd or id entifi cati on number th e Comptro ll er of P ub lic Acco unts has assigned th e pri m e contractor.
7. Contact -Enter th e nam e of the person a uth ori zed to compl ete thi s fo rm fo r th e prim e contracto r. We wi ll contact thi s pe rson ifwe have any qu estio ns a bo ut
th e in fo rm ati on yo u have provid ed on thi s fo rm .
8. P hone -Ent er the ph one number at whi ch we can reac h the contact person nam ed in Item 7.
9. Indi cate "Yes" or "No".
Contract Number 582 -10-86411 Page 73 of 99
I 0. HUB and/or Non -H UB Subcontractor Information -First co lumn-Enter th e compl ete name and address of eac h subcontractor. Enter information about
thi s subco ntracto r in th e remainin g columns of thi s row . Check box ifno s ubcontrac to rs were used durin g thi s in vo icin g peri od .
Second co lumn-Ent er th e 13 -di g it ven dor identification number the Comptroll er of Public Acco unt s has ass igned to thi s HUB s ub contractor.
Third column-You have three o pti ons :
O If thi s sub co ntrac tor is a min ority-owned bu s in ess ent erpri se , c heck "MBE ."
0 If this sub co ntractor is a woman -own ed bu s in ess enterpri se, che ck "WBE."
0 If thi s s ub co ntractor qualifi es as both an MBE and a WBE , check both boxes .
Fourth column-Indi cate, by check in g th e appro pria te box, wheth er th e s ub contrac tor provided services or co mmoditi es . (If both , check "serv ices " onl y.)
Fifth column-Enter the total of all in vo ices attac hed for thi s HUB subcontractor.
1 I . Total of c urrent in vo ice -Ent er th e tota l of th e Prime Contra ctor 's current invoice.
12 . Tota l of c urrent in voices fro m certifi ed HUB s ubco ntractors -Enter the tot a l a mo unt of all attached invoices from HUBs .
13. Percent of HUB ex p enditures for thi s in vo ice -Use th e in struction s on th e PAR form to calculate th e percentage of thi s in vo ice th at HUB s ub co ntractors
have completed .
14 . Total amount in vo iced to date -E nter th e total of all invoices yo u ha ve s ubmitted to us to date fo r thi s contract, includin g th e invoices attached to this PAR
fo rm .
15 . Total of HUB expenditures on th e total contract to date -Enter the total of all H UB s ub contrac tor invoi ces for thi s contract to date .
16 . Pe rcent of HUB invo ices for the total contract to date -Use the in stru ctions on th e PAR form to ca lcul ate th e percentage of thi s contract that HUB
subcontractors have completed to date.
17. HUB S ubco ntra ctin g goa l for thi s co ntract -T he HUB goal is stated as a percentage in yo ur contract. Enter th e HUB goa l here .
18. Name and S ignature -The co ntracto r or authorized representative of th e contractor.
19. Da te -E nter the date yo u compl eted thi s report .
Contract Number 582-10 -86411 Page 74 of 99
Form B-2
TCEQ P U RCHAS E VO U CHER Page o f
I Age n cy No . 58 2 Age n cy N ,une T e xas Commiss io n o n E n viro nme ntal Quality Current Document N o.
11. Date T CEQ Rece ived 2. Se rvice Dat es 3. Co ntracl/P urcl1ase 4 .. Requested Payme nl 5. Payme nt Due
Invo ice Ord er Date Date Date
I
I 6. Payee Id entifica ti on No. 8 . Voucher Prepared By: Date:
7. Pay T o (Payee Name /Ad dress): 9 . Contract Voucher Auditor: Date:
10. FINAL BILl.lNG YES NO (Pl eas e circle one)
,D~S REF D OC SFX TRANS IND EX MOD AY 11. PCA PCC
CODE p
231
00 1
' l SEQ REQNO COMP ACY 12. AMOUNT RVS RTI NU MBER
NO. OBJ O BJ
l 13. I NVOI CE NU MBER DESCRIPTION 14. CONTRACT GRANT P R OJECT N O .
NO. NO .
DOCS REF D OC SFX TRANS I ND EX MOD AY 11. PCA PCC
FX COD E p
231
001
l SEQ REQNO COMP ACY 12 . AMOUNT RVS RTI NUMBER
NO . OBJ O BJ
13 . I NVOI CE NU MBER DESCRIPTION 14. GRANT NO . PROJECT N O .
CONTRACT
NO .
i.J
I
15. DESCRIPTIOi\" OF GOOD S or SERVI CES 16. Ql"ANTITY 17. UNIT 18. AMO L"NT
PRI CE
l
I L EGAL D ESC RIIYfIVE TEXT:
I ap prove thi s voucher for payment. The above goo d s or se rvices co rrespond in eve ry particular witl1 tl1 e co nti-act unde r which tl1 ey were purchased. The invo ice for th e goods o r
services is correct. T hi s pav ment com pli es wiili tl1e General A p prop ri ati o ns Act.
I 19 . DIVISI ON SI GN 19. Ph o ne (Area 19 . D ate
AP PR O\A L H ERE code and number)
I
' BATCH NO BATCH DATE ENTERED BY DATE RELEASED BY:
TYPE E 'TERED RELEASED
4
DATE MAILED O R WARRANT NU MBER DIRECT DEPOSIT TRANSMITTAL NU MBER
TRANSMITTED
Co ntract N umb er 582 -10 -864 11 Page 75 of 99
TCEQ INVOICE Form B-3
Agency No . Agency Name TCEQ Contract No . 582-10-86411
582 Texas Commission on Environmental Quality
Date
1. Payee Identification No. 2 . Service Dates:
3 . Pay To : (Payee Name /Address ) 4 . Prepared By :
City of Fort Worth
Environmental Management 5. FINAL BILLING : 6 . This Invoice Amount: $
Dept. (Please circle one) YES NO
1000 Throckmorton
Fo rt W orth , TX 7 6 102
7 . DELIVERABLES 8 . QUANTITY 9 . UNIT PRICE 10 . AMOUNT 11 . CUMULATIVE 12 . CUMUL ATIVE
QUANTITY AM OUNT
Total Amount of Services Rendered $
Less 33% Match $
Total Reimbursement $
Total
APPROVAL SIGNATURE REQUIRED FOR FINAL BILLING ONLY:
I approve this release of the c laims for payment of any funds due and payable by the TCEQ pursuant to the terms of the Contract in Attachment B, Article 2a., entitled "Final Payment Request.•
13. PAYEE SIGN 14. Printed 15. Date :
APPROVAL HERE: Name
BATCH NO .ITYPE DATE ENTERED ENTERED BY RELEASED BY DATE RELEASED INVO ICE NUMBER RT I NUMBER D
I 4 0
C
N
ISSUE DATE/DATE WARRANT NUMBER TRANSMITTAL NUMBER 0
MAILED
I
Contract Numbe r 5 82 -10 -86411 Page 76 of 99
Form 8-.t!
Financial Statu s Report
1. STATE AGENCY ORGANIZATION UNIT TO
WHICH REP ORT IS S UBMITTED : ... 2 . GRANT /CONTRACT TITLE :
3 . PAYEE IDENTIFICATION NUMBER : 4 . RECIPIENT ORGANIZATI ON (NAME AND COMPLET E ADDRESS ,
IN CLUDIN G ZI P COD E ) : ...
5 . TCEQ CONTRACT NUMBER :
~
6 . FINAL YES NO
REPORT :
7 . ACCOUNTING CASH ACCRUAL
BASIS :
8. TOTAL PROJECT /GRANT PERIOD : 9 . PERIOD COVERED BY THIS REP ORT :
I
10 . BUDGET CATEGORIES : Approved Project Cost Cumulative Balance **
Budget This Report Project Cost
a .Per s onnel/Salary *
111111 b .Fringe Benefits
c .Travel *
ct .Supplies * ... e .Equipment *
f.Contractual *
g .Construction *
111111 h .Other *
i .Total Direct Costs
(Sum a -h )
j .Indirect Costs .....
k .Tota l Costs (Sum of i
& j )
1 . Recipient Cost Share
(33 %)
m . Total Reimbursable
Costs (k -1 )
*List (Itemize ) on t he appropriate supplemental form all component expenses comprising the total .., for each of these catego ries .
Please attach receipts , a s required, in acco r dance wi th Attachment B of your contract .
** ~egative balances in any of the budget categories should be explained in a brief accompanying -nar r ative . ... 11. CERTIFICATION I c ertify to the best of my knowledge and bel i ef that this report is c o rrect and
complete and that all Outlays and Unliquidated Obligations are for the purposes set f o rth in
the award document .
...
l:ignature of Authorized Certifying I
Official I
...
l;yped or Printed Name and I
Title I
...
l:elephone (Area code , number and I Date Submitted I
ext .) I I
Con tract Numbe r 582-10-8641 1
PAGE 77 OF 99
ITEMIZATION OF EQUIPMENT AND CONTRACTUAL COSTS
EQUIPMENT PURCHASES (during this report period)
NUMBER ITEM DESCRIPTION UNIT TOTAL TASKS
PURCHASED (Should match description provided for COST COST
..i approval)
..I
J
..i
....
TOTAL EQUIPMENT EXPENDITURES (must agree with line 10e on Form 269a) $
J
CONTRACTUAL EXPENDITURES (during this report period)
.., SUBCONTRACTOR (NAME) FOR COST (THIS PERIOD) TASKS
..J
J
..I
..I
rTOTAL CONTRACTUAL EXPENDITURES (must agree with line 10f on Form 269a) $
* LEGIBLE PURCHASE ORDER AND/OR INVOICES MUST BE ATIACHED TO THIS FORM FOR EACH LISTED ITEM OR EXPENDITURE .
Contract Number 582-10-86411
PAGE 78 OF 99
.I ITEMIZATION OF CONSTRUCTION COSTS
CONSTRUCTION COSTS (during this report period)
DESCRIPTION PURPOSE COST (THIS PERIOD) TASKS ....
...
I I ..
I I ..
....
...
....
-
...
..
..J
..: TOTAL CONSTRUCTION EXPENDITURES (must agree with line 10g on Form 269a) $
*LEGIBLE DOCUMENTATION MUST BE ATIACHED FOR ALL LISTED EXPENDITURES .
Contract Number 582-10-86411
PAGE 79 OF 99
..i
...,
..J
...
~
...,
j
..,
...
j
..,
..J
ITEMIZATION OF SUPPLY AND OTHER COSTS
SUPPLIES PURCHASED (during this report period)
NUMBER ITEM DESCRIPTION
PURCHASED (Should match description provided for approval)
TOTAL SUPPLY EXPENDITURES (must agree with line 1 Od on Form 269a)
OTHER EXPENDITURES (during this report period)
NUMBER DESCRIPTION
PURCHASED
TOTAL OTHER EXPENDITURES (must agree with line 10h on Form 269a)
UNIT TOTAL TASKS
COST COST
$
UNIT TOTAL
I TASKS
COST COST
$
*LEGIBLE RECEIPTS OR OTHER SUBSTANTIATING DOCUMENTATION MA'1 BE ATIACHED FOR EXPENDITURES THAT EQUAL OR
EXCEED $500 .
Contract Number 582 -10-86411
PAGE 80 OF 99
i
),1111
11111
....
...
,la
...
-
.-I
...
...
-
..I
...
...J
ITEMIZATION OF PERSONNEL/SALARY AND TRAVEL COSTS
PERSONNEL/SALARY EXPENDITURES (during this report period)
EMPLOYEE NAME TITLE/POSITION
rroTAL PERSONNEL/SALARY EXPENDITURES (must agree with line 10a on Form 269a) $
TRAVEL EXPENDITURES (during this report period)
SALARY (THIS
PERIOD
DESCRIPTION REASON COST (THIS PERIO~
rTOTAL TRAVEL EXPENDITURES (must agree with line 10c on $
Form 269a)
TAC:!o"c:
11-\.'.:>n.v 11
_*SUBSTANTIATING DOCUMENTATION (time sheets, travel receipts , etc .) MAY BE REQUIRED TO BE ATIACHED TO THIS FORM
Contract Number 582-10-86411
PAGE 81 OF 99
Financial Status Report Preparation Instructions
1. The PERFORMING PARTY , in order to obtain reimbursement for those expenditures authorized under this Contract , shall submit a
completed , legible TCEQ Financial Status Report (TCEQ Form 269a) and any required TCEQ Supplemental 269a forms . Unless
directed otherwise in the Contract , the PERFORMING PARTY shall submit such payment request documents by not later than twenty-
one (21) days after the close of each State fiscal year quarter. The reporting periods shall also correspond to the State of Texas fiscal
year quarters (September-November; December-February , March-May ; June-August). Each Financial Status Report shall indicate , for
each budget sub-category the PERFORMING PARTY'S Project expenditures for the period in question , the cumulative expenditures
with respect to each budget sub-category , and the balance remaining in each budget sub-category following reimbursement of the
amount being requested . A quarterly Financial Status Report is required even if no expenses were incurred during the report period .
2. All requests for reimbursement of expenditures that fall within either the "Equipment " or "Contractual " categories of the Contracts Cost
Budget shall be itemized by the PERFORMING PARTY on Supplemental Form 269a-1 and identified with respect to the major tasks or
objectives , set forth in the Scope of Work , that such expenditures support or satisfy. In addition , the PERFORMING PARTY shall
attach , for each reimbursable cost listed on Supplemental Form 269a -1, legible documentation that (1) serves to further identify the
specific piece of equipment received or the services provided, (2) clearly identifies the vendor or Subcontractor who provided the
equipment or services , and (3) that confirms the reimbursable amount listed on the form . In the case of equipment purchases , the
attached documentation shall be either a purchase order marked "received/paid " or a vendor-submitted invoice similarly marked . In
the case of Subcontractor provided services , the documentation shall consist of a dated invoice that shows the amount billed to the
PERFORMING PARTY and any "past due " amount from previous invoices.
3. All requests under this Contract for the reimbursement of expenditures that fall within the "Construction " category of the Contracts Cost
Budget shall be itemized by the PERFORMING PARTY on Supplemental Form 269a-2 and identified with respect to the major tasks or
objectives , set forth in the Scope of Work that such expenditures support or satisfy . In addition , the PERFORMING PARTY shall
attach , for each reimbursable cost listed on Supplemental Form 269a-2 , legible documentation that (1) serves to further identify the
specific cost , (2) clearly identifies the vendor or Subcontractor who provided the construction related materials or services , and (3) that
confirms the reimbursable amount listed on the form . The attached documentation shall be either a purchase order marked
"received/paid" or an invoice similarly marked . In the case of Subcontractor provided construction services , the documentation shall
consist of a dated invoice that shows the amount billed to the PERFORMING PARTY and any "past due " amount from previous
invoices .
4. All requests for the reimbursement of expenditures that fall within either the "Supply" or "Other" categories of the Contracts Cost
Budget shall be itemized by the PERFORMING PARTY on Supplemental Form 269a-3 and identified with respect to the major tasks
or objectives , set forth in the Scope of Work , that such expenditures support or satisfy. In addition , for any single-listed item or service
costing more than $500 , the PERFORMING PARTY shall attach , for each reimbursable cost listed on Supplemental Form 269a-3 ,
legible documentation that (1) serves to further identify the specific items or services , (2) clearly identifies the vendor or Subcontractor
who provided the items or services , and (3) that confirms the reimbursable amount listed on the form. Although issued purchase
orders and/or invoices marked "received/paid " represent the preferred types of documentation for purposes of this section , the
PERFORMING PARTY may substitute/attach other records or documents that provide the same type of information . The
PERFORMING PARTY shall not intentionally break up single orders of identical or similar items , materials or Supplies simply for the
purpose of avoiding the above requirement to provide confirming documentation when submitting reimbursement requests to the
TCEQ .
5. All requests for reimbursement of expenditures that fall within either the "Personnel/Salary" or "Travel " categories of the Contracts Cost
Budget shall be itemized by the PERFORMING PARTY on Supplemental Form 269a-4 and identified with respect to the major tasks or
objectives , set forth in the Scope of Work , that such expenditures support or satisfy . Although no supporting documentation is
required to be attached to Supplemental Form 269a-4 with respect to reported "Personnel/Salary" expenditures in order to receive
reimbursement , the PERFORMING PARTY is expected to maintain signed time sheets that can serve to verify the total , overall hours
of staff time being directly billed to this Contract. With respect to employee travel, all costs listed on Form 269a-4 must be supported
by attached documentation that identifies the name of the traveler's , and that substantiates the reported reimbursable costs.
Documentation, for the purpose of substantiating travel-related costs , includes the following: (1) legible copies of the PERFORMING
PARTY-approved travel vouchers , signed by the employees who traveled , and (2) for any travel-related expenses under this contract
borne directly by the PERFORMING PARTY (and thus for which reimbursement by the PERFORMING PARTY to the traveler was not
required) separate receipts showing , at a minimum , the traveler's name , the travel location , and the travel date(s).
6 . When a single expenditure supports or satisfies more than one task or objective , the PERFORMING PARTY need not breakdown that
particular expenditure by specific contract task or objective but may simply identify , in relative cost order , the various tasks or
objectives supported.
Contract Number 582-10-86411
PAGE 82 OF 99
FEDERAL FORMS Form B-5
FEDERAL CONDITIONS
ARTICLE 1. FEDERAL REQUIREMENTS
This Contract is funded in part with federal grant money . The following conditions apply to this Contract in addition to all other contract terms . All
applicable requirements ofTCEQ 's federal grants and 40 CFR Parts 30 through 35 are incorpo rated herein by reference (T CEQ will provide copies of
applicable federal grants or regulations upon request). The term "PERFORMING PARTY" as used in these Federal Conditions means either
PERFORMING PARTY or CONTRACTOR , as applicable .
ARTICLE 2 . FEDERAL INTELLECTUAL PROPERTY REQUIREMENTS
A nonexclusive , perpetual , irrevocable license to use , copy , publish , and modify any intellectua l property to which rights are granted or assigned to
TCEQ in this Contract are hereby also granted to , assigned to , or reserved by the Federal Government. To the extent consistent with the rights of
third parties , the Federal Government shall also have the righ t to sell any intellectual property right it reserves or acquires through this Contract.
ARTICLE 3 . ACKNOWLEDGMENT OF FINANCIAL SUPPORT
The PERFORMING PARTY shall acknowledge the financial support of the TCEQ and the U.S. EPA whenever work funded , in whole or part , by this
Contract is publicized or reported in news media or publications . All reports and other documents completed as a part of this Contract , other than
documents prepared exclusively fo r internal use within the TCEQ , shall carry the following notat ion on the front cover or title page:
PREPARED IN COOPERATION WITH THE
Texas Commission on Environmental Quality AND
U.S . ENVIRONMENTAL PROTECTION AGENCY
The preparation of this report was financed through grants from the U.S. Environmental Protection Agency through the Texas Commission on
Environmental Quality .
If the funding source is a U .S. agency other than U.S . EPA , the name of the appropriate fede ral agency should be substituted .
ARTICLE 4. COST AND PRICE OF THIS CONTRACT
If this Contract was not competitively procured or if payment is based on reimbursement of actual costs , then PERFORMING PARTY shall submit
cost information sufficient for a cost analysis as required by 40 CFR §31 .36 . This information must be submitted on forms provided by the TCEQ .
ARTICLE 5 . ACCOUNTING SYSTEMS AND PROPERTY MANAGEMENT SYSTEMS
1. PERFORMING PARTY shall have an accounting system which accounts for costs in accordance with generally accepted accounting standards or
principles and complies with 40 CFR §3 1.20 . This system shall provide for the identification , accumulation , and segregation of allowable and
unallowable Project costs among Projects .
2 . PERFORMING PARTY shall have a property management system that complies with the standard of and requirements in 40 CFR §§ 31 .32
through 31 .33.
ARTICLE 6 . RECORD DOCUMENTS , DATA. RECORDS . ACCESS . AND AUDIT
The Federal Government and its agencies will have the same rights of access to records as are granted to , assigned to , or reserved by the TCEQ
under this Contract.
ARTICLE 7 . DEBARMENT
On or prior to the Effective Date of this Contract , PERFORMING PARTY must submit a Certification Regarding Debarment , Suspension , and Other
Responsibility Matters. PERFORMING PARTY must also submit a Certification Regarding Debarment , Suspension , and Other Responsibility Matters
/ Lower Tier for each Subcontractor it employs to conduct the Work . These certifications must be submitted on forms provided by the TCEQ .
ARTICLE 8. DISADVANTAGED BUSINESS ENTERPRISES : MINORITY BUS INESS ENTERPRISES / WOMEN 'S BUSINESS ENTERPRISES
(DBE 's)
1 . In order to qualify and participate as an MBE or WBE prime or Subcontractor for EPA recipients under EPA's DBE Program , an entity must be
-properly certified as required by 40 C .F.R . 33 Subpart B . DBE 's must be certified by the following entities : EPA ; the U .S . Small Business
Administration , under its 8(a ) Business Development Program or its Small Disadvantaged Business Program ; the U .S. Department ofTransportation ,
under its regulations for Participation by DBE 's in DOT Programs ; an Indian Tribal Government, State Government , Local Government , or
independent private organization in accordance with EPA's 8% or 10 % statute as applicable . State of Texas certified Historically Underutilized
Businesses (HUB 's) are certified DBE 's .
2 . If the General Conditions of this Contract contain a requirement that PERFORMING PARTY submit information regarding its subcontracts with
HUBs as defined by Texas law , then PERFORMING PARTY shall comply with the Hub requirements as well as the DBE requirements imposed on
TCEQ in the federal grant or grants funding this Contract , and submit information regarding its subcontracts with Certified DBE 's and Hub 's on forms
provided by the TCEQ.
3 . PERFORMING PARTY agrees that qualified DBE 's shall have the maximum practicable opportunity to participate in the performance of the Work
required under this Contract through possible subcontracts to carry out portions of the Work and by way of goods and/or services procurement
contracts that directly support the required Work .
4. PERFORMING PARTY will submit a completed HUB PROGRESS ASSESSMENT REPORT with each reimbursement request submitted . At a
minimum this report shall include the name of the DBE , a description of the work , services or materials provided , the amount paid to the DBE , and
the name and telephone number of a contact person within the DBE.
Contract Number 582-10-86411
PAGE 83 OF 99
5 . The PERFORMING PARTY shall conduct the following actions in connection with solicitations for Subcontractors and for suppliers (vendors) of
contract-required goods and/or services :
5.1. Place qualified DBE 's on solicitation lists for Subcontractors and vendors ;
5 .2 . Assure that at least three (3) DBE 's are solicited whenever they are potential sources for Subcontractor-performed work or vendor-
provided goods and/or services ;
5 .3 . Each solicitation shall include a copy of the specifications , adequate information about the plans , Scope of Service , and requirements of
the work to be subcontracted or the goods and/or services to be procured , and shall provide sufficient time to allow all interested parties the
opportunity to participate effectively ;
5.4 . Records of solicitations for Subcontractor and/or vendor services , including the responses received from potential DB E's Subcontractors
and vendors , shall be maintained and reported to TCEQ ;
5 .5. Submit explanatory information in cases where bids were not solicited prior to obtaining the services of Subcontractors or vendors , or
where a DBE 's was low bidder but the subcontract or procurement contract was awarded to a non DBE ;
5.6 Divide total Subcontractor or vendor requirements , when economically feasible , into smaller tasks or quantities to permit maximum
participation by such business enterprises ; if sufficient subcontracting or goods and/or service provider opportunities are not available ,
PERFORMING PARTY shall submit explanatory information to TCEQ ;
5.7 . Establish delivery schedules , where requirements permit , which encourage participation by DBE 's ;
5.8. Utilize the Texas Comptroller of Public Accounts (CPA) Centralized Master Bidders List (CMBL) and Historically Underutilized Business
(HUB) Directory (<http://www .cpa.state.tx.us>) and the services and assistance of the Small Business Administration and the Minority
Business Development Agency of the U .S . Department of Commerce (<http://www .doc.gov>) when searching for DBE 's .
6 . The PERFORMING PARTY must pay its Subcontractors for satisfactory performance no more than 30 days from the Performing Party 's receipt
of payment from TCEQ .
7 . Before terminating a DBE for convenience , the PERFORMING PARTY must notify TCEQ in writing .
8 . If a DBE Subcontractor fails to complete work , for any reason , and the PERFORMING PARTY plans to procure a replacement Subcontractor ,
the PERFORMING PARTY must undertake the actions listed in 5 .1 -5 .8 of this Article .
9 . The PERFORMING PARTY shall provide the attached DBE Subcontractor Participation Form , EPA Form 6100-2 , to all its DBE Subcontractors
with instructions that each DBE may complete the form and submit it directly to the appropriate EPA DBE Coordinator , Deborah Bradford , EPA
Region 6 , Small and Disadvantaged Business Coordinator. EPA Form 6100-2 gives a DBE Subcontractor the opportunity to describe the work
the DBE Subcontractor received from the prime contractor, how much the DBE Subcontractor was paid and any other concerns the DBE
Subcontractor might have , for example reasons why the DBE Subcontractor believes it was terminated by the PERFORMING PARTY .
10. The PERFORMING PARTY must have its DBE Subcontractors complete EPA Form 6100-3 , DBE Program Subcontractor Performance Form .
The Performing Party must include all completed forms as part of the Performing Party's proposal* package .
11. The PERFORMING PARTY must complete and submit EPA Form 6100-4 , DBE Program Subcontractor Utilization Form , as part of its proposal*
package .
ARTICLE 9 . PROHIBITION USE OF FEDERAL FUNDS FOR LOBBYING AND LITIGATION
Contractor agrees that none of the funds paid under this Contract will be used to engage in the lobbying of the Federal Government or in litigation
against the United States unless authorized under existing law . When Contractor applies for final payment , Contractor will certify on a written form
provided by the TCEQ that Contractor has complied with this provision .
* Proposal in this context refers to a response to a solicitation for goods or services being paid for , at least in part , with EPA grant funds submitted to
TCEQ , a TCEQ grantee , or lower tier recipient. Proposal in this context does not refer to an EPA grant application package TCEQ submits to EPA ,
nor to a grant application submitted to TCEQ , a TCEQ grantee , or lower tier recipient requesting financial assistance that is at least partially funded
with an EPA grant. After TCEQ , a TCEQ grantee , or lower tier recipient receives the grant and attempts to procure goods and services with the grant
funds , the responses submitted to such solicitations must include EPA Forms 6100-3 and 6100-4 .
Contract Number 582-10-86411
PAGE 84 OF 99
EPA
United States Environmental Protection Agency
Washington , DC 20460
Certification Regarding
Debarment , Suspension , and Other Responsibility Matters
EPA Project Control Number
The Prospect ive participant certifies to the best of its knowledge and belief that it and its principals :
(a) Are not presently debarred , suspended , proposed for debarment, declared inel igible , or voluntarily excluded from covered transactions by any Federal
department or agency ;
B-€
(b) Have not within a three-year period preceding this Offer been convicted of or had a civil judgment rendered against them for commission of fraud or a
cr iminal offense in connection with obtaining , attempting to obtain , or perform ing a publ ic (Federal , State , o r local ) transaction or contract under a public
transaction ; violation of Federal or State antitrust statutes or commission of embezzlement , theft , forgery , bribery , falsification or destruction of records ,
making false statements , or receiving stolen property ;
(c) Are not presently indicted for or otherwise criminally or civilly charged by a government entity (Federal , State , or local ) with commiss ion of any of the
offenses enumerated in paragraph (b) of this certification ; and
(d) Have not within a three-yea r period preceding this application/Offer had one or more public transactions (Federal , State , or local ) terminated for cause or
default.
I understand that a false statement on this certification may be grounds for rejection of this Offer or Termination of the award . In add ition , under 18 USC Sec . 1001 ,
a false statement may result in a fine of up to $10 ,000 or imprisonment for up to 5 years , or both .
Typed Name & Title of Authorized Representative
Signature of Authorized Representative Date
D I am unable to certify to the above statements . My explanation is attached .
EPA Form 5700-49 (11 -88)
Contract Number 582-10-86411
PAGE 85 OF 99
LOWER TIER
EPA Project Control Number
EPA
United States Environmental Protection Agency
Washington , DC 20460
Certification Regarding
Debarment , Suspension , and Other Responsibility Matters
The Prospective participant certifies to the best of its knowledge and belief that it and its principa ls :
(a ) Are not presently debarred , suspended , proposed for debarment , declared ineligible , or voluntarily excluded from covered transactions by any Federal
department or agency ;
(b) Have not within a three-year period preceding this Offer been convicted of or had a civil judgment rendered against them for commission of fraud or a
criminal offense in connection with obtaining , attempting to obtain , or performing a public (Federal , State , or local ) transaction or contract under a public
transaction ; violation of Federal or State antitrust statutes or commission of embezzlement, theft , forgery , bribery , falsification or destruction of records ,
making false statements , or receiving stolen property ;
(c ) Are not presently indicted for or otherwise criminally or civilly charged by a government entity (Federal , State , or local) with commission of any of the
offenses enumerated in paragraph (b ) of this certification ; and
(d) Have not within a three-year period preceding this application/Offer had one or more public transactions (Federal , State , or local ) terminated for cause or
default.
I understand that a false statement on this certification may be grounds for rejection of this Offer or Termination of the award . In addition , under 18 USC Sec . 1001 ,
a false statement may result in a fine of up to $10 ,000 or imprisonment for up to 5 years , or both .
Typed Name & Title of Authorized Representative
Signature of Authorized Representative Date
D I am unable to certify to the above statements . My explanation is attached .
EPA Form 5700-49 (11.SS)
Contract Number 582-10-86411
PAGE 86 OF 99
CERTIFICATION REGARDING LOBBY ING
Certification for Contracts , Grants , Loan , and Cooperative Agreements
The undersigned certifies , to the best of his or her knowledge and belief, that:
B-7
(1) No federal appropriated funds have been paid or w ill be paid , by or on behalf of the undersigned , to any person for influencing or attempting to influence an
officer or employee of any agency, a Member of Congress , an officer or employee of Congress , or an employee of a Member of Congress in connection with
awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan , the entering into of any cooperative agreement , and the
extens ion , cont inuation , renewal , amendment , or modification of any Federal contract , grant , loan , or cooperative agreement.
(2 ) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee
of any agency , a Member of Congress , an officer or employee of Congress , or any employee of a Member of Congress in connection with this Federal contract ,
grant, loan , or cooperative agreement , the undersigned shall complete and submit Standard Form-LLL , "Disclosure Form to Report Lobbying ," in accordance
with its instructions .
(3 ) The unders igned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including Subcontracts ,
Subgrants , and contracts under grants , loans , and cooperative agreements) and that all subrecipients shall certify and disclose accordingly.
This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into . Submission of this certification is a
prerequisite for making or entering into this transaction imposed by section 1352 , title 31 , U .S. Code . Any person who fails to file the required certification shall be subject
to the civil penalty of not less than $10 ,000 and not more than $100 ,000 for each such failure .
Statement for Loan Guarantees and Loan Insurance
The undersigned states , to the best of his or her knowledge and belief, that:
If any funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency , a Member of Congress , an officer
or employee of Congress , or an employee of a Member of Congress in connection with this commitment providing for the United States to insure or guarantee a loan , the
undersigned shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying ," in accordance with its instructions.
Submission of this statement is a prerequisite for making or entering into this transaction imposed by section 1352 , title 31 , U .S . Code . Any person who fails to file the
required statement shall be subject to a civil penalty of not less than $10 ,000 and not more than $100 ,000 for each such failure .
ORGANIZATION NAME AWARD NUMBER
NAME AND TITLE OF AUTHORIZED REPRESENTATIVE
SIGNATURE DATE
Please check appropriate box below:
[ ] Disclosure Form attached
[ ] Disclosure Form Forthcoming
[ ] Disclosure Form Not Applicable
Contract Number 582-10-86411
PAGE 87 OF 99
Page 1 of 3
DISCLOSURE OF LOBBYING ACTIVITIES
Comp lete th is fo rm to disclose lobbying activi ties pursuan t to 3 1 USC 1352
1. Type of Federal Act ion : [ l 2 . Status of Federa l Action : [ l 3. Repo rt Type : [ l ... a . contract a. bid/offer/application a . initial fi ling
b. gra nt b . initial award b . material change
c . cooperative agreement c. post-award
... d . loa n For Material change only :
e . loa n gu arantee year Quarter
f. lo an insurance date of last report
... 4. Name and Address of Report Ent ity 5 . If Reporting Ent ity in No. 4 is Subawa rdee , enter name and
[ J prime [ l subawardee address of Prime :
J tier , if known : Congressiona l District . if known
C ongressional District , if kn own :
J 6 . Fede ra l Departmen t/Agency : 7 . Federal Program name/Description :
CFDA Number, if applicable :
8 . Federal Action Number, if kn own : 9 . Awa rd Amount if known : ... $
..i 10 . a . Name and addre ss of Lobbying Entity (if individua l, last name , b . Individuals Performing Services (i ncluding address if different from
first name , Ml ): (attach Co nt inuation Sheet(s) No . 10a) (last name , first name , Ml ): SF --LLL-A if necessary)
~ 11 . Amo unt of Payme nt (check all t hat apply): 13 . Type of Payment (check all that ap p ly):
$ [ J actu a l [ l planned [ l a . retainer
..I [ l b. o ne-time fee
[ l c . comm ission
12 . Am o unt of payment (check all th at apply): [ l d . contingent fee
... [ l e . deferred
[ l a . cash [ l f . other , s pecify :
[ l b . in -kind ; specify nature
J
value
..,
14 . Brief description of services performed or to be performed and date (s) of service , including officer(s). employee(s). or Member(s) .. co ntacted for Paymen t indica ted in Item 11 :
(attach Cont inuation sheet(s) SF-LLL-A if necessary)
15 . Co ntinuation sheet(s) SF-LLL-A att ached : [ l Yes [ l No
Con t ra ct Number 582-1 0-86411
PAG E 88 O F 99
16 . Information requested through this form is authorized by Title 31
U .S .C .• Section 1352 . This disclosure of lobbying act ivities is a material
Signature
representation of fact upon which reliance was placed by the tier above Print Name
when this transaction was made or entered into . This d isclosure is
w required pursuant to 31 U .S .C . 1352 . This information will be reported to Title
the Congress semi-annually and will be available for public inspection .
Any person who fails to file the required disclosure shall be subject to a Telephone No .
civil penalty of not less than $10.000 and not more than $100.000 for each
such failure . Date
.J Standard Form-LL
Contract Number 582-10-86411
PAGE 89 OF 99
DISCLOSURE OF LOBBYING
CONTINUATION SHEET
Reporting Entity : ______________________ Page __ of ___ _
Authorized for Local Reproduction Standard Form -LLL-A
Contract Number 582-10-86411
PAGE 90 OF 99
Page 2 of 3
J
Page 3 of 3
INSTRUCTIONS FOR COMPLETION OF SF-LL DISCLOSURE OF LOBBYING ACTIVITIES
This disclosure form shall be completed by the reporting entity , whether subawardee or prime Federal recipient , at the initiation or receipt of a covered Federal action , or a
material change to a previous fil ing , pursuant to Title 31 U.S .C. Section 1352 . The filing of a form is requ ired for each payment or agreement to make payment to any
lobbying entity for influencing or attempting to influence an officer or employee of any agency, a Member of Congress , an officer or employee of Congress , or an employee
of a Member of Congress in connection with a covered Federal action . Use the SF-LLL-A Continuation Sheet for additional information if the space on the form is
inadequate . Complete all items that apply for both the initial filing and material change report . Refer to the implementing guidance published by the Office of
Management and Budget for additional information .
1. Identify the type of covered Federal action for which lobbying activity is and /or has been secured to influence the outcome of a covered Federal action.
2 . Identify the status of the covered Federal action .
3 . Identify the appropriate classification of this report . If this is a follow-up report caused by a material change to the information previously reported , enter the year
and quarter in which the change occurred . Enter the date of the last previously submitted report by this reporting entity fo r this covered Federal action .
4 . Enter the full name , address , city , state and zip code of the reporting entity . Include Congressional District if known . Check the appropriate classification of the
reporting entity that designates if it is , or expects to be , a prime or subaward recipient. Identify the tier of the subawardee , e .g ., the first subawardee of the prime
is the first tier . Subawards include bu t are not limited to Subcontracts , Subgrants , and contract awards under grants ..
5. If the organization filing the report in Item 4 checks "Subawardee ", then enter the full name , address , city , state and zip code of the prime Federal recipient.
Include Congressional District , if known .
6 . Enter the name of the Federal Agency making the award or loan commitment. Include at least one organizational level below agency name , if known . For
example , Department of Transportation , United States Coast Guard .
7 . Enter the Federal program name or description for the covered Federa l action (Item 1 ). If known , enter the full Catalog of Federa l Domestic Assistance (CFDA)
number for grants , cooperative agreements , loans , and loan commitments .
8 . Enter the most appropriate Federal identifying number available for the Federal action identified in Item 1 (e .g., Request for Offer (RFP ) number, invitation for Bid
(IFS ) number, grant announcement number, the contract , grant , or loan award number, the application/Offer control number assigned by the Federal agency)
Include prefixes , e .g ., RFP-DE-90-00 1."
9 . For a covered Federal action where there has been an award or loan commitment by the Federal agency , enter the Federal amount of the award/loan
commitment for the prime entity identified in Item 4 or 5.
10. (a) Enter the full name , address , city , state and zip code for the lobbying entity engaged by the reporting entity identified in Item 4 to influence the covered
Federal action .
(b ) Enter the full names of the individual (s) performing services , and include full address if different from 1 O(a). Enter Last Name , First Name , and Middle
Init ial (Ml ).
11 . Enter the amount of compensation paid or reasonably expected to be paid by the reporting entity (Item 4) to the lobbying entity (Item 1 O). Indicate whether the
payment has been made (actual ) or will be made (planned). Check all boxes that apply . If this is a material change report , enter the cumulative amount of
payment made or planned to be made .
12 . Check the appropriate box(es ). Check all boxes that apply . If payment is made through an in-kind contribution , specify the nature and value of the in-kind
payment .
13. Check the appropriate box(es). Check all boxes that apply. If other , specify nature .
14 . Provide a specific and detailed description of the services that the lobbyist has performed , or will be expected to perform , and the date (s) of any services
rendered . Include all preparatory and related activity , not just time spent in actual contact with Federal officials . Identify the Federal official (s) or employee (s)
contacted or the officer(s), employee (s), or Member(s) of Congress that were contacted .
15 . Check whether or not a SF-LLL-A Continuation Sheet (s) is attached.
16 . The certifying official shall sign and date the form , print his/her name , title , and telephone number.
Public reporting burden for this collect ion of information is estimated to average 30 minutes per response , including time for reviewing instruction , searching existing
data sources , gathering and maintaining the data needed , and completing and reviewing the collection of information . Send comments regarding the burden
estimate or any other aspect of this collection of information , including suggestions for reducing this burden to the Office of Management and Budget Paperwork
Reduction Project (0348-0046), Washington , D.C . 29503 .
Contract Number 582-10-86411
PAGE 91 OF 99
PURPOSE AND APPLICABILITY OF THE COST OR PRICE SUMMARY
(COST OR PRICE SUMMARY IS ATTACHED BELOW)
8-8
The purpose of this form is to provide a simple form for the display of cost and price data. 40 CFR 33 .290 requires the
recipient to perform cost or price analysis for every procurement action , including subagreement modifications . This form is
not required by EPA, but may be used at the recipient's option. If the recipient currently uses a cost and price analysis form
which accomplishes the same objectives as this form , the recipient may use its own form .
INSTRUCTIONS
If this form is used , CAREFULLY READ AND FOLLOW ALL
INSTRUCTIONS. Many items are not self-explanatory . Attach
additional sheets if necessary.
Use only the applicable portion of this form:
Part I is applicable to all subagreements .
Part II is applicable to all subagreements requiring a cost analysis
pursuant to EPA procurement regulations .
Part Ill is applicable to all subagreements where review is based on
price comparison (i.e ., price analysis).
Part IV certification will be executed as required by the instructions for
each block .
PART I -GENERAL
Item 1 -Enter the name of the recipient as shown on the assistance
agreement.
Item 2 -Enter the assistance identification number shown on the
assistance agreement (or assigned to the project, if no assistance
agreement has yet been executed).
Item 3 -Enter the name of the contractor or Subcontractor with whom
the subagreement is proposed to be executed.
Item 4 -Enter the date of the contractor's or Subcontractor's Offer to the
recipient.
Item 5 -Enter the full mailing address of the contractor or
Subcontractor.
Item 6 -Give a brief description of the work to be performed under the
proposed subagreement.
Part II -COST SUMMARY
This portion of the form is to be completed by the contractor (or his/her
Subcontractor) with whom a subagreement is a formally advertised ,
-competitively bid , fixed price subagreement.
Nothing in the following discussion should be interpreted as
recommending the inclusion as direct costs any items normally treated
as overhead costs in the firm's accounting or estimating system . 40
CFR Part 30 identifies general cost principles applicable to
subagreements under EPA assistance. Pursuant to that Part , all
subagreements awarded to profit-making organizations are subject to
cost principles of 48 CFR 31.2. Architect engineer and construction
contracts are also subject to 48 CFR 31 .105.
Item 7 -Direct Labor
Direct labor costs normally include salaries at a regular time rate.
Overtime premiums should be identified separately on an attachment.
lncurrence of unanticipated overtime costs requires the approval of the
recipient at the time of incurrence . If significant overtime is known to be
needed at the time of completion of the cost review form , the reasons
therefore , labor categories , rates and hours should be identified on the
attachment. Also included is the cost of partners' or principals' time
when they are directly engaged in services to be rendered under the
Contract Number 582-10-86411
subagreement. In case the full time of any employee is not to be
devoted to work to be performed under the subagreement , only the cost
of actual time to be applied should be included. The compensation of a
partner or principal shall be included as direct cost only for the time that
she/he is expected to be engaged directly in the performance of work
under the subagreement and only if it is the firm 's normal practice to
charge such time directly to all jobs . The rate of compensation of a
partner or principal shall be commensurate with the cost of employing
another qualified person to do such work , but the salary portion shall
not exceed the actual salary rate of the individual concerned.
Distribution of profits shall not be included in the rate of compensation .
Enter in block 7 the categories of professional or technical personnel
necessary to perform each major element of work under the
subagreement scope of services . Estimate hours worked for each
category and extend them by the wage rates to be paid during the
actual performance of the work. Current rates , adjusted for projected
increases , if any should be useful for the actual categories of labor
contemplated. All projected increases should be supported by recent
experience or established personnel policy . Enter in the far right column
the total estimated direct labor cost.
Supporting records to be maintained by the contractor and which must
be submitted or made available to the recipient or EPA upon request
include :
a . The method of estimating proposed hours worked.
b. The computation techniques used in arriving at proposed labor rates .
c. The specific documents , books or other records used as factual
source material to develop proposed hours worked and labor rates .
d. Detailed rate computations which were used in computing the
information submitted on the form .
If in block 14a , the contractor has checked "No ," a brief narrative
description of the methods used in arriving at items a though d above
shall be included on an attached sheet.Item 8-Indirect Costs
Indirect cost may consist of one or more pools of expenses which are
grouped on the basis of the benefits accruing to the cost objectives
represented by the distribution base or bases to which they are
allocated . Since accounting practices vary, the use of particular
groupings is not required . Neither is the use of any particular allocation
base mandatory . However, it is mandatory that the method used results
in an equitable allocation of indirect costs objectives which they
support .
Normally , the firm's accounting system and estimating practices will
determine the method used to allocate overhead costs . The firm's
established practices , if in accord with generally accepted accounting
principles and PROVIDED THEY PRODUCE EQUITABLE RESULTS IN
THE CIRCUMSTANCES , will generally be accepted. Proposed
overhead rates should represent the firm's best estimate of the rates to
be experienced during the subagreement period . They should be
based upon recent experience and be adjusted for known factors which
PAGE 92 OF 99
will influence experienced trends .
Common overhead groupings are overhead on direct labor and general
and administrative expenses . The first groupings usually include
employment taxes , fringe benefits , holidays , vacation idle time,
bonuses, applicable and direct labor , etc. The second generally
includes the remaining costs , which , because of their incurrence for
common or joint objectives , are not readily subject to treatment as
direct costs . It is expected , however, that Offer groupings will
correspond with the firm's normal method for accumulating indirect
costs. (Under some accounting systems , the first grouping would be
included instead under item 7 .) No special categorization is required ,
provided the results are realistic and equitable.
Direct salaries are the normal distribution base for overhead cost but in
some circumstances other bases produce more equitable results. As in
the case of overhead cost groupings, the method to be used will
depend upon the firm's normal practices and the equity of the results
produced in the circumstances.
In the case of multibranch firms , joint ventures , or affiliates, it is
expected that overhead costs applicable to specific location(s) where
work is to be based on cost data from the most recent fiscal periods
updated to reflect changes in volume of business or operations .
Enter in block 8 the indirect cost pools normally used by the firm for
allocation of indirect costs. Enter indirect cost rate for each pool and
extend each one by the rate base to which it applies to arrive at the
estimated indirect costs to be incurred during the actual performance of
the work . If the indirect labor total from block 7 is not used as the rate
base for any of the indirect cost pools , the rate base used must be
explained on an attached sheet.
A brief narrative statement outlining the firm's policies and practices for
accumulating indirect costs . Enter the indirect cost rate costs and the
method used to compute the proposed rate or rates shall accompany
the form . Include comment on the firm's policies regarding the pricing
and costing of principals' time . Thenormal accounting treatment of
principals' salaries , the annual amounts , and the hourly charge rate , if
used , should be discussed.
Enter in the far right column the total estimated indirect costs.
Supporting records to be maintained by the contractor and which must
be submitted or made available to the recipient or EPA upon request
include:
a. Detailed cost data showing overhead accounts , allocation bases,
and rate computations for the preceding fiscal period . If more than six
-months of the current fiscal period have elapsed, cost data for this
period should be included as one of the three period(s).
b . Company budgets , budgetary cost data and overhead rates
computations for future period(s).
Item 9 -Other Direct Costs
The following items are illustrative of costs normally included in this
category of costs :
a. Travel cost, including transportation, lodging, subsistence, and
incidental expenses· incurred by personnel or consultants while in travel
status in connection with the performance of services required by the
contract. The cost principles generally require the use of less than first
class air accommodations and also limit the cost of private aircraft.
b. Equipment, Materials, and Supplies
(1) Long distance telephone calls, telegraph and cable
expenses to be incurred in connection with the performance of services
Contract Number 582-10-86411
required in connection the subagreement.
(2) Reproduction costs , including blueprints, black and white
prints, ozalid prints, photographs, photostats, negatives; and express
charges .
(3) Commercial printing, binding, artwork, and models .
(4) Special equipment.
c. Subcontractors
d. Other Direct costs , if any, not included above.
Enter in blocks 9a-d all other direct costs proposed. Travel costs
entered must be supported by an attachment which identifies the
number of staff trips proposed and the estimated cost per staff trip for
both local and long distance transportation . The number of days and
the rate per day must be provided to support the per diem shown. Each
Subcontract and consultant agreement must be identified separately in
block 9c.
Enter in the far right column on line 9e the total of all other direct costs
(9a-d).
Supporting data to be maintained by the contractor and which must be
submitted or made available to the recipient or EPA upon request
include :
a . basis for other direct costs proposed.
b. factual sources of costs , rates , etc., used in computing
proposed amount of each cost element.
Item 10 -Total Estimated Cost
Enter the total of all direct labor , indirect costs and other direct costs
from items 7, 8 , and 9.
Item 11 -Profit
A fair and reasonable provision for profit cannot be made by simply
applying a certain predetermined percentage to the total estimated
cost. Rather, profit will be estimated as a dollar amount after
considering:
a. degree of risk.
b. nature of the work to be performed.
c. extent of firm's investment.
d. Subcontracting of work, and
e. Other criteria.
The federal Acquisitions Regulation cost principles applicable to
subagreements with profit-making organizations (40 CFR 31.2 and
31.105) disallow certain types of costs which are sometimes incurred
by firms in the normal conduct of their business. Examples of costs
which are not allowable under these costs principles include , but are
not limited to , entertainment, interest on borrowed capital, and bad
debits . Because the Government considers "profit" to be the excess of
price over allowable costs, such computation can indicate a higher
profit estimate than the firm 's experienced profit as it customarily
computes it.
The contractor may separately disclose to the recipient its customary
computation.
Enter the dollar amount of profit in block 11.
Item 12 -Total Price
Enter the total of items 10 and 11.
Part Ill -PRICE SUMMARY
This portion of the form is for use by a recipient when pricecomparison ,
i.e. price analysis , is used for subagreement review . It may also be
PAGE 93 OF 99
used by a contractor when price comparison is used as a basis for
award of a Subcontract.
Item 13 -Competitor's Catalog Listings , In-House Estimates , Price
Quotes
Enter sources of all competitive bids or quotes received , or catalogs
used and their prices , or in-house estimates made , if appropriate , for
comparison . Attach additional sheets if necessary , particularly for
purchases of several different items .
Enter in the far right column the proposed price for the subagreement.
Part IV -Certifications
Item 14 -Contractor -FOR USE BY CONTRACTOR OR
SUBCONTRACTOR ONLY .
Complete this block only if Part II has been completed .
Enter the specific cost principles with which the costs summary of Part
II conforms . Cost principles applicable to subagreements with various
types or organizations are identified in 40 CFR Part 30.4010 . Cost
principles applicable to subagreements with profit-making organizations
are those at 48 CFR 31 .2 and , for architect-engineer or construction
contracts 48 CFR 31 105
n ,,
I
c . (1) Describe the Offer, quotation , request for price adjustment , or
other submission involved , giving appropriate identifying numbe r (e .g.,
RFPNo . __ ).
(2 ) Enter the date when the price negotiations were concluded and
the contract price was agreed to. The responsibility of the
subagreement is not limited by the personal knowledge of the
contractor's negotiator if the time of agreement , showing that the
negotiated price is not based on complete , current , and accurate data .
(3) Enter the date of signature . This date should be as close as
practicable to the date when the price negotiations were concluded and
the subagreement price was agreed to (not to exceed 30 days).
Item 15 -Recipient Reviewer -FOR USE BY RECIPIENT ONLY .
If required by applicable assistance regulations , the recipient must
subm it the signed form for EPA review prior to executive of the
subagreement.
Item 16 -EPA Reviewer -FOR USE BY EPA ONLY .
Form approved
0MB No . 2030-001 1
I
COST OR PRICE SUMMAR Y Approval expires 10-31-86
EPA (see accompanying instructions before completing this form )
PART I -GENERAL I
1. RECIPIENT 2 . ASSISTANCE IDENTIFICATION NO .
3 . NAME CONTRACTOR OR SUBCONTRACTOR 4 . DATE OF PROPOSAL
5 . ADDRESS OF CONTRACTOR OR SUBCONTRACTOR (Include ZIP Code) 6 . TYPE OF SERVICE TO BE FURNISHED
TELEPHONE NUMBER (lnclude Area Code )
PART 11-COST SUMMARY I
7. DIRE CT LABOR (s pecify labor categories) EST IM ATED HOURLY ES TI MATED
HOURS RAT E COST T OTALS
$ I $ I
DI R ECT LABOR T OTAL: $ I
EST IMATE D
8. INDI R ECT COS T S (Specify indirect cost pool) RATE x BAS E = COST
I
$ $
INDIR ECT COST S TOTAL: $ I
9. OTHER DI R ECT COSTS
Contract Number 582-10-86411
PAGE 94 OF 99
ESTIMATED
a. TRAVE L COS T
(1) TRANSPORTAT ION $
(2 ) PE R DIEM $
TRAVEL SUBTOT AL: $
ES TIMATED
b. EQUIPMENT , MATERI ALS, SUPPLIE S (Specify categories ) QTY COS T COS T
$ I $
EQUIPMENT SUBTOTAL :
ESTI MATED
c. SUBCO NT RA CT S COST
$
SUB CO NTRACTS SUBTOTAL: $
ESTIMATED
d. OTH ER (S pecify categories ) COST
$ I
OTHER SUBTOTAL: $ I
e. OTHER D IRE CT CO STS TOTAL : $ I
10.T OTAL EST IMATED COST $ I
11 . PRO FIT $ I
12. T OTAL PRI CE $ I
PART Ill -PRICE SUMMARY I
I
PRO P OSED I
PRIC E
I
I
I
1
I
$ I
PART IV -CERTIFICATIONS I
14 CO NTRACT OROR I
14a. HAS A FEDERAL AG EN CY OR FEDERAL LY CERT IFIED STATE OR LOCAL AGEN CY PERFORMED AN Y R EVIE W OF YO UR ACCO UNTS OR I
RECORD S IN CONNE CT ION W ITH ANY OT HER FEDERAL AS SISTANCE AGREEMENT OR CO NTRACT W ITH IN THE PAS T 12 MONTHS ? i
I I NO (If "Yes" give name , address , and telephone number of re viewing office)
I
___J
Cont ract Number 582-10-86409
PAGE 95 OF 99
I NO (If "Yes" give name, address , and telephone number of re viewing office) i
,_
,-
•-
f--
~
f--I
I
14b. THIS SUMMARY CONFORMS WITH THE FOLLOWING COST PR INCIPLES
I
•-
f--
I
~
I-
~
~
I-
I
14c. I This proposal is submitted for use in connection with and in response to : I
I-
This is to certify to the best of my knowledge and belief that the cost and pricing data summarized herein are (2) DAT E
complete , current , and accurate as of"
I further certify that a financial management capability exists to fully accurately account for the financial transactions under this project. I further certify that I understand that the subagreement price ma y
be subject to downward renegotiation and/or recoupment where the above cost and pricing data have been determined , as a result of audit, not to have been complete , current , and accurate as of the date
above .
(3) TITLE OF SIGNATURE OF REV IEWER DAT E OF EXECUTION
PROPOSER
-
-
15.1 RECIP IENT
REVIEWER
I I certify that I have reviewed the cosUprice summary set forth herein and the proposed cosUprice appear acceptable for subagreement award .
T ITLE OF SIGNATURE OF REVIEWER DAT E OF EXECUTION
PROPOS ER
,_
,-
16. EPA
REVIEWER
T ITLE OF SIGNATURE OF REVI EWER DATE OF EXECUTION
PROPOSER -
,_
,_
Contract Num ber 582-10-86409
PAGE 96 OF 99
Environmental
Pro t ec tion Agency
TCEQ Form B-9
0MB Contro l No : 2090-0030
Approved : 05 /01/2008
Approval Expires : 01/31 /2011
Disadvantaged Business Enterprise Program
DBE S b t t P rf . f F u con rac or a 1c1pa 10n orm
NAME OF SUBCONTRACTOR' PROJECT NAME
ADDRESS CONTRACT NO.
TELEPHONE NO. EMAi L ADDRESS
PRIME CONTRACTOR NAME
Please use the space below to report any concerns regarding the above EPA-funded project (~. reason for
termination by prime contractor , late payment , etc .).
AMOUNT
CONTRACT ITEM O F WORK OR DESCRIPTION OF SERVICES RECEIVED FROM SUBCONTRACTOR
ITEMNO. THE PRIME CONTRACTOR WAS PAID BY PRIME
CONTRACTOR
Subcontractor Signature Title/Date
'Subcontractor is d efin ed as a company, firm, jomt venture, or individual wh o enters mto an agreement with a contractor to
provide services pursuant to an EPA award of financial assistance.
EPA FORM 6 100 -2 (DBE S ubcontractor Participation Form)
Contract Number 582-10-86409
PAGE 97 OF 99
Env ironmental
Protec tion Agency
NAME OF SUBCONTRACTOR1
ADDRESS
TELEPHONE NO.
PRIME CONTRACTOR NAME
TCEQ Form B-10
0MB Contro l No : 2090-0030
Approved: 05 /01/2008
Approval Expires : 01 /31/2011
Disadvantaged Business Enterprise Program DBE
Subcontractor Participation Form
PROJECT NAME
BID/PROPOSAL NO.
E-MAIL ADDRESS
CONTRACT ITEM OF WORK OR DESCRIPTION OF SERVICES BID TO PRICE OF WORK SUBMITTED
ITEM N O . PRIME
Currently certified as an MBE or WBE under EPA's DBE Program? Yes
Signature of Prime Contracto r
Date Print Name
Signature of Subcontractor Date
Print Name Title
'Subcontractor is defined a company, firm , jo int venture , or individual who enters in to an agreement
With a co ntractor to provide serv ices p urs uant to an EP A award of fi nancial assistance .
EPA FORM 6 100 -3 (DBE Subcontractor Performance Form)
Contract Number 582-10-86409
PAGE 98 OF 99
TO PRIME CON TRACTOR
No
Title
Environmental
Protection Agency
TCEQ Form B-11
0MB Control No : 2090-0030
Approved : 05/01/2008
Approval Expires : 01/31/2011
Disadvantaged Business Enterprise Program
DBE Subcontractor Performance Form
BID/PROPOSAL NO. PROJECT NAME
NAME OF PRIME BIDDER/PROPOSER E-MAIL ADDRESS
ADDRESS
TELEPHONE NO. FAX NO.
The following subcontractors1 will be used on this project:
COMPANY NAME, ADDRESS, PHONE TYPE OF WORK TO BE ESTIMATE CURRENTLY
NUMBER, AND E-MAIL ADDRESS PERFORMED DDOLLAR CERTIFIED
AMOUNT ASANMBE
OR WBE?
I certify under penalty of perjury that the forgoing statements are true and correct. In the event of a
replacement of a subcontractor, I will adhere to the replacement requirements set forth in 40 CFR Part 33
Section 33 .302(c).
Signature of Prime Contractor Date
Print Name Title
's ub contractor is defi ned as a com pa ny, fi rm ,join t ve nture, or ind iv idu al who ente rs into a n agree ment w ith a co ntractor to prov id e services pursuant to an EPA
award of fi nanc ia l ass istance .
EPA FORM 6 100 -4 (DB E Su bco nt ractor Uti li zatio n Fo rm )
Contract Number 58 2-10-86409 Page 99 of99
EXHIBIT A-1
INSTRUCTIONS FOR THE SF-4'
Public reporting burden for this coUection of ia •• ~,matiJO is estimated to averqe 45 minutes per response. incn1ding time for reviewing instructions, searching
eltisting daia sources, pdlering and maintaining the dala needed, and co~leting and reviewing the coUection of infonnatioo. Send comments regarding the
bwden estimate or any ocher aspect of this coUection of information, including sugestions for reducing this burden. to the Office of Management and Budget.
Paperwork Reduction Project (0348-0043), Washington. DC 20503 .
PLEASE DO NOT RE11JllN YOUR COMPLETED FORM TO THE om CE or MANAGEMENT AND BUDGET, SEND IT TO THE ADDRESS
PROVIDED BY TIIE SPONSORING AGENCY.
This is a standard form used by applicants as a required face sheet for pre-applications and applications submitted for Federal assisiance. It will be used by Federal
agencies to obtain applicant cer1ification that Stales which haw: established a n:view and conunent procedure in response to Executive Order 12372 and have
selected the prognun to be included in their process , have been given an opportUnity to review the applicant's submission.
Item : Entry: Item : Entrv:
I. Select Type of Submission. 11. Enla' a brief descriptive title of the project . If more than one
program is involved, you should append an explanation on a separate
sheet. If appropriale (e.g., construction or n:al property projects).
anac:h a map showing project location. For preapplications. use a
seoantc sheet to provide a summarv descril!Cion of this oroiect.
2. Date application submitted to Federal agency (or State if applicable) 12. List only the largest political entities affected (e.g .• Slate, counties,
and amlicanl's control number (if anolicable) cities).
3 . State u,e only (if annlicable). 13 . Enla' the .............t swt date 111d end date of the nmiect.
4 . Enm 0. Received by Federal Agency Federal idrntifier number: If 14. Us! the applicant's Congrasional District and any District(s)
this application is a continualion or revision to an existing award. affected by the program or project
enm the pn:smt Pedc:nl Identifier number. If for a new project.
leave blank.
5. Enla' lepl name of applicant. name of prilllll)' orpniz.ational unit 15 . Amount n:,questlcd or to be coatributlcd during the first
(including division, if applicable), which wiU undel1ake the assistance funding/budget period by each contributor. Value of in kind
activity, en1er the orpnization's DUNS number (received from Dun contributions should be included on appropriate lines as applicable.
and Bradstn:et), enter the complete address of the applicant (including If the action will result in a dollar change to an existing award ,
countJy), and name, tdcphonc number. e-mail and fu of the person indicale only the amount of the c:bangc. For dcaQses, enclose the
to contact on IIIIIU:n rdatcd to this application . amounts in parentheses. If both buic and supplemental amounts are
included, show breakdown on an attached sheet. For multiple
~ fundin&, me totals and show breakdown using same
asitan 15.
6. Enm Employer Identification Nwnber (EIN) u usigncd by the 16. Applicants should conlllet the Stue Single Point of Contact (SPOC)
Internal Revenue Service. for Federal Executive Order 12372 to deamine whether lhe
annlication is aubied to the State inr..nnvenunentaJ review ~-
7 . Select the appropriate letter in 17 . This quearion applies to lhe applicant orpnization, not the person
the apace provided. L State Controlled who sip u the authorized repreaentatiw:. Cate,ories of debt
A. Slate Institution of Higher include delinquent audit disallowances. loans and taxes.
B . County Leamin&
C. Municipal J. Privaae Uniwnity
D. Township K. Indian Tribe
E. lnlmtalie L Individual
F. lnlamanicipal M. Profit Orpaizalion
G . Special District N. Oda (Specify)
H. lndependmt School 0 . Not for Profit
District -OIi
8 . Select the type from the followin& lilt: 18. To be signcd by the authorized rq,reaentative of the applicant. A
• "New" meu11 a new Ulistance award . copy of the govaning body's authori:ration for you to sign this
• "OJntinuatjon" means an extallion for an addilional application u official repamtative must be on file in the applicant• s
fundinpldpt period for a poject with a projected office. (Cerrain Federal agmcia may require Chat this authorization
compleoon due. be submitted u put of the application.)
• "Revision" mcus any change in the Federal
Government's financial obliption or continpnt liability
from an existins obligation. If a n:vision enaa-the
appropriate 1eal:r:
A. lncreue A ward B. Decreue Award
C. 1ncn:ue Duration D . Decreue Duratioa
9. Name of Federal apncy from which auistance II being rcqueslcd
with this IIIIDlication.
JO. Use lhe Calalog of Federal Domestic Assistance number and title of
the Drol!nlll under which Ulutance is
SF-424 (Rev. 7 -97) Back
Version 7/03
APPLICATION FOR 2. DA 1E SUBMITTED Applicant Identifier OPTIONAL
FEDERAL ASSISTANCE (Assimed by Applicant)
I . TYPE OF SUBMISSION : 3. DA'IB RECEIVED BY STATE State Application Identifier
Application Pre-application
D Construction D Construction 4. DATE RECEIVED BY FEDERAL AGENCY Federal Identifier
D Non-Consttuc:1ion D Non-COllllr\lction (Assimed by EPA
5 . APPLICANT INR>RMA TION
Legal Name : Onranizational Unit :
Deputment:
Organizational DUNS : Division :
Address : Nunc and telephone number of person to be conllletcd on mallers involving this
anolication (Rive area code)
Street: Prefix : FiBtName:
City: Middle Name :
County: LutNunc:
State: 17.ip Code: Suffix :
Co1mtry: Email:
6. EMPLOYER IDENTIFICATION NUMBER (EIN): Phone Number (give ua code) Fax Number (give area code)
nn-1 II II II II II II I
8. TYPE OF APPLICATION : 7 . TYPE OF APPLICANT : (See baclt offonn for Application Types)
0New D Continuation D Revisioo
If Revision, enter appropria1e letta(s) in box(es)
(See back of form for desaipcion of letters.)
D D Other (specify)
OtJu ( specify) 9. NAME OF FEDERAL AGENCY :
10 CATALOG OF FEDERAL DOMESTIC ASSISTANCE NUMBER: 11. DESCRIPTIVE 1TTLE OF APPLICANT'S PROJECT:
DD-ODD
TITLE (Name of Program):
12. AREAS AFFECTED BY PROJF.CT (Cities, Counties, Staaa, etc):
13. PROPOSED PROJECT 14. CONGRESSIONAL DISTRICTS OF:
Swt~: I P.ndin& Du:: L Applicant b. Project
15. ESTIMATED FUNDING : 16. IS APPLICATION SUBJP.CT TO REVIEW BY STATE EXECUTIVE
ORDER 12372 PROCESS?
a.Federal s L Ya D nm PREAPPLICA TION/APPUCA TION w AS MADE
b. Amlicant s AV AD.AB~ TO THE ST A TE EXECUTIVE ORDER 12372 PROCESS FOR
c.Staae s REVIEWON
d .Local s DATE:
e .Other s b .No 0 PROGRAM IS NOT COVERED BY E. 0 . 12372
0 OR PROGRAM HAS NOT BEEN SEI..ECTEDBY STATE FOR
REVIEW
f. Prooam Income s 17. IS THE APPLICANT DELINQUENT ON ANY FEDER.AL DEBT?
,:. TOTAL s 0 Ya If "Ya" atta:h an explanation. 0No
18 . TO THE BEST OF MY KNOWLEDGE AND BELIEF, AU. DATA IN nus APPLICA TION/PREAPPUCA TION ARE TRUE AND CORRECT. 111E
DOCUMENT HAS BEEN DULY AUllfORIZED BY THE GOVERNING BODY OF THE APPLICANT AND THE APPLICANT WILL COMPLY WITH TifE
A TT ACHED ASSURANCES IF THE ASSISTANCE IS AWARDED.
L Aulborizicd Reon:senlltive
Prefix Pint Name
LutName
b. Tide
d . Sipiamre of Authorurd Reprelc:nlative
.. Previous Edinon Usable
Authorixd for Local Reproduc:tion
Middle Name
Suffix
c . Telephone Number (Jive area code)
e. DIRSiped
Srandard Form 424 (Rev . 9-2003)
Pracribed by OM1I Circular A-I 02
INSTRUCTIONS FOR THE SF-424A
Public reporting burden for this collection of information is estimated to average 180 minutes per response, including time for rev iewing
i.qgructions, searching existing data sources , gathering, and maintaining the data needed, and completing and reviewing the collection of
information . Send comment regarding the burden estimate or any other aspect of this collection of information , including suggestions for
reducing this burden, to the Office of Management and Budget, Paperwork Reduction Project (0348-0044 ), Washington , DC 20503 .
PLEASE DO NOT RETURN YOUR COMPLETED FORM TO TIIE OFFICE OF MANAGEMENT AND BUDGET. SEND IT
TO THE ADDRESS PROVIDED BY TIIE SPONSORING AGENCY.
General lnstructiom
This form is designed so that application can be made for funds
from one or more grant programs . In preparing the budget, adhere
to any existing Federal grantor agency guidelines which prescribe
how and whether budgeted amounts should be separately shown
for different functions or activities within the program. For some
programs, granter agenc ies may require budgets to be separately
shown by function or activity . For other programs, grantor
agencies may require a breakdown by function or activity.
Sections A, B, C, and D should include budget estimates for the
whole project except when applying for assistance which requires
Federal authorization in annual or other funding period
increments . In the latter case, Sections A, B, C, and D should
provide the budget for the first budget period (usually a year) and
Section E should present the need for Federal assistance in the ~ subsequent budget periods. All applications should contain a
breakdown by the object class categories shown in Lines a-k of
J Section B.
Section A. Budget Summary Lines 1-4 Columns (a) and (b)
J For applications pertaining to a single Federal grant program
(Federal Domestic Assistance Catalog number) and not requiring a
functional or activity breakdown, enter on Line 1 under Column
(a) the Catalog program title and the Catalog number in Column
u (b).
For applications pertaining to a single program requiring budget
..I amounts by multiple functions or activities, enter the name of each
activity or function on each line in Column (a), and enter the
Catalog number in Column (b). For applications pertaining to
I multiple programs where none of the programs require a
~ breakdown by function or activity, enter the Catalog program title
on each line in Column (a) and the respective _Catalog number on
each line in Column (b). ...
For applications pertaining to multiple programs where one or
more programs require a breakdown by function or activity,
prepare a separate sheet for each program requiring the
I-breakdown . Additional sheets should be used when one form does
not provide adequate space for all breakdown of data required .
However, when more than one sheet is used, the first page should
._ provide the summary totals by programs .
Lines 1-4, Columm (c) through (&)
w..i For new applications, leave Column (c) and (d) blanlc . For each
1 line entry in Columns (a) and (b), enter in Columns (e), (f), and (g)
the appropriate amounts of funds needed to support the project for
the first funding period (usually a year).
For continuing grant program applications , submit these forms
before the end of each funding period as required by the granter
agency. Enter in Columns (c) and (d) the estimated amounts of
funds which will remain unobligated at the end of the grant
funding period only if the Federal granter agency instructions
provide for this . Otherwise, leave these columns blank. Enter in
columns (e) and (t) the amounts of funds needed for the
upcoming period . The amount(s) in Column (g) should be the
sum of amounts in Columns (e) and (t).
For supplemental grants and changes to existing grants, do not
use Columns (c) and (d). Enter in Column (e) the amount of the
increase or decrease of Federal funds and enter in Column (f) the
amount of the increase or decrease of non-Federal funds . In
Column (g) enter the new total budgeted amount (Federal and
non-Federal) which includes the total previous authorized
budgeted amounts plus or minus, as appropriate, the amounts
shown in Columns (e) and (f). The amount(s) in Column (g)
should not equal the sum of amounts in Columns (e) and (t).
Une 5 -Show the totals for all columns used.
Section B Budget Categories
In the column headings ( 1) through ( 4 ), enter the titles of the
same programs, functions, and activities shown on Lines 1-4,
Column (a), Section A. When additional sheets are prepared for
Section A. provide similar column headings on each sheet. For
each program, function or activity, fill in the total requirements
for funds (both Federal and non-Federal) by object class
categories.
Line 6a-i -Show the totals of Lines 6a to 6h in each column.
Line 6J -Show the amount of indirect cost.
Line 6k-Enter the total of amounts on Lines 6i and 6j . For all
applications for new grants and continuation grants the total
amount in column (5), Line 6k, should be the same as the total
amoun t shown in Section A, Column (g ), Line 6. For
supplemental grants and changes to grants , the total amount of the
increase or decrease as shown in Columns (1)-(4), Line 6k should
be the same as the sum of the amounts in Section A , Columns ( e)
and (f) on Line 5.
Uae 7 -Enter the estimated amount of income, if any, expected
to be generated from this project. Do not add or subtract this
amount from the total project amount, Show under the program
SF-424A (Rev . 7-97) Page 3
" ·~TRUCTIONS FOR TIIE SF-424A (c01 _1ed_._) ___________ __,
J "_n_arr-au-·-ve-sta_te_m_e-nt_th_e-na_t_ur_e_an_d_s_o_urc_e ,,. income. The line IS -Enter the totals of amounts on Lines 13 and 14.
estimated amount of program income may be considered by
the Federal grantor agency in determining the total amount of J the grant.
Section C. Non-Federal Resources
._ Lines 8-11 Enter amounts of non-Federal resources that will
be used on the grant. If in-kind contributions are included,
provide a brief explanation on a separate sheet. ..
..
...
...
..
...
Column (a) -Enter the program titles identical to
Column (a), Section A. A breakdown by function
or activity is not necessary.
Column (b)-Enter the contributions to be made by
the applicant.
Column (c) -Enter the amount of the State's cash
and in-kind contribution if the applicant is not a
State or State agency. Applicants which are a State
or State agencies should leave this column blank .
Column (d) -Enter the amount of cash and in-kind
contributions to be made from all other sources .
Column (e)-Enter totals of Columns (b), (c}, and
(d).
line 12 -Enter the total for each of Columns (b)-(e). The
amount in Column (e) !hould be equal to the amount on Line
._ S, Column (t), Section A.
Section D. Forecasted Cub Needs
'-line 13 -Enter the amount of cash needed by quarter from the
grantor agency during the first year.
i.. line 14 -Enter the amount of cash from all other sources
needed by quarter dming the first year.
Section E. Budget Estimates of Federal Funds Needed for
Balance of the Project
lines 16-19 -Enter in Column (a) the same grant program titles
shown in Column (a), Section A. A breakdown by function or
activity is not necessary. For new applications and continuation
grant applications, enter in the proper columns amounts of
Federal funds which will be needed to complete the program or
project over the succeeding funding periods (usually in years) .
This section need not be completed for revisions (amendments,
changes, or supplements) to funds for the current year of existing
grants .
If more than four lines are needed to list the program titles,
submit additional schedules as necessary.
Line 20 -Enter the total for each of the Columns (b)-(e). When
additional schedules are prepared for this Section, annotate
accordingly and show the overall totals on this line.
Section F. Other Budget Information
Une 21-Use this space to explain amounts for individual direct
object class cost categories that may appear to be out of the
ordinary or to explain the details as required by the Federal
grantor agency .
Line 22 -Enter the type of indirect rate (provisional,
predetermined, final or fixed) that will be in effect during the
funding period, the estimated amount of the base to which the
rate is applied, and the total indirect expense.
Une 23 -Provide any other explanations or comments deemed
necessary.
SF-424A (Rev. 7-97) Page 4
BUDGET INFORMATION N C t ti Pr -on-ons rue on ograms
SECTION A· BUDGET SUMMARY
Grant Program Catalog of Federal Estimated Unobligated Funds
Function Domestic Assistance
or Activity Number Federal Non-Federal Federal
(a) (b) (c) (d) (e)
I. $ s $
2.
3 .
4.
;J . Totals $ 0 .00 $ 0.00 $ 0.00
SECTION B -BUDGET CATEGORIES
6 . Object Class Categories GRANT PROGRAM, FUNCTION OR ACTIVITY
(I) (2) (3)
a . Personnel
b. Fringe Benefits
c . Travel
d. Equipment
e . Supplies
f. Contractual
g. Construction
h . Other
i. Total Direct Charges (sum of 6a-6h) 0 .00 0.00 0.00
j . Indirect Charges
k. TOTALS(sumof6iand6j) $ 0.00 $ 0.00 $ 0.00
7 . Program Income $ $ $
Authorized ror Local Reproduction
Previous Edition Usable
0MB Approval No . 0348-0044
New or Revised Budget
Non-Federal
(f)
$
$
(4)
$
s
Total
(g)
$ 0.00
0 .00
0.00
0 .00
0.00 $ 0 .00
Total
(S)
0.00
0 .00
0 .00
0.00
0 .00
0 .00
0.00
0.00
0 .00 0.00
0.00
0.00 $ 0.00
$ 0.00
Standard Form 424A (Rev . 7-97)
Prescribed by 0MB Circular A-102
SECTION C -NON-FEDERAL RESOURCES
(a) Grant Program (b) Applicant (c) State (d) Other Sources (e)TOTALS
8 . $ 0.00
9 . $ 0.00
10. $ 0 .00
11. $ 0.00
12 . Total (SUM OF LINES 8-11) $ 0 .00
SECTION D -FORECASTED CASH NEEDS
13 . Federal Total for 1• Year 1• Quarter 21111 Quarter 3n1 Quarter 4111 Quarter
$ 0.00 $ $ $ $
14 . Non-Federal 0.00
15. TOTAL (sum of lines 13 and 14) $ 0.00 $ 0.00 $ 0.00 $ 0 .00 $ 0.00
SECTION E -BUDGET ESTIMATES OF FEDERAL FUNDS NEEDED FOR BALANCE OF fflE PROJECT
(a) Grant Program FUTURE FUNDING PERIODS (years)
(b) First (c) Second (d) Third (e) Fourth
16. $ $ $ $
17.
18.
20. TOT AL (sum of lines 16-19) $ 0 .00 $ 0.00 $ 0 .00 $ 0.00
SECTION F • OTHER BUDGET INFORMATION
21. Direct Charges: I 22. Indirect Charges:
23. Remarks :
Authorized for Local Reproduction
Standard Form 424A (Rev. 7-97) Page 2
0MB Approval No . 0 348-0040 -----------------.&,,URAN~· NON-CONSTRUCTION PROG._,.M i_"l ______________ __,
Public reporting burden for this collection of information is estimated to average 15 minutes per response, including time for reviewing
instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of
information . Send comments regarding the burden estimate or any other aspect of this collection of information, including suggestions for
reducing this burden , to the Office of Management and Budget, Paperwork Reduction Project (0348-0040), Washington, DC 20503 .
PLEASE DO NOT RETURN YOUR COMPLETED FORM TO THE OFFICE OF MANAGEMENT AND BUDGET.
SEND IT TO THE ADDRF.SS PROVIDED BY 11IE SPONSORING AGENCY.
NOTE: Certain of these assurances may not be applicable to your project or program. If you have questions, please contact the
awarding agency. Further, certain Federal awarding agencies may require applicants to certify to additional assurances .
If such is the case, you will be notified.
As the duly authorized representative of the applicant, I certify that the applicant:
1. Has the legal authority to apply for Fcdcral assistance and the
institutional, managerial and financial capability (including
funds sufficient to pay the non-Federal share of project cost)
to ensure proper planning, JIW1agemcnt and completion of
the project described in this application.
2. Will give the awarding agency, the Comptroller General of
the United States and , if appropriate, the State, through any
authoriud representative, access to and the right to examine
all records, books, papers, or documents related to the award;
and will establish a proper accounting system in accordance
with generally accepted accounting standards or agency
directives.
3. Will establish safeguards to prohibit employees from using
their positions for a purpose that constitutes or presents the
appearance of personal or organizational conflict of interest,
or personal gain.
4. Will establish safeguards to prohibit employees from using
their positions for a purpose that constitutes or presents the
appearance of personal or organizational conflict of interest,
or personal pin.
5 . Will comply with the Intergovernmental Personnel Act of
1970 (42 U.S.C . 4728-4763) relating to prescribed standards
for merit systems for programs funded under one of the 19
statures or regulations specified in Appendix A of OPM' s
Standards for a Merit System of Personnel Administration (5
C.F.R. 900, Subpart F).
6. Will comply with all Federal statutes relating to
nondiscrimination . These include but arc not limited to: (a)
1itle VI of the Civil Rights Act of 1964 (P.L 88-352) which
prohibits discrimination on the basis of race, color or
national origin ; (b) Title IX of the Education Amendments of
1972, IS amended (20 U .S .C. 1681 -1683 , and 1685-1686),
which prohibits discrimination on the basis of sex ; (c)
Section 504 of the Rehabilitation Act of 1973, as amended
(29 U.S.C . 794), which prohibits discrimination on the
Previous Edition Usable
basis of handicaps ; (d) the Age Discrimination Act of
1975, as amended (42 U.S.C. 6101-6107), which
prohibits discrimination of the basis of age ; (e) the Drug
Abuse Office and Treatment Act of 1972 (P .L. 92-255),
as amended, relating to nondiscrimination on the basis of
drug abuse; (f) the Comprcheosivc Alcohol Abuse and
Alcoholism Prevention, Treatment and Rehabilitation Act
of 1970 (P.L . 91-616), as amended, relating to
nondiscrimination on the basis of alcohol abuse or
alcoholism; (g) 523 and 527 of the Public Health Service
Act of 1912 (42 U.S.C. 290 dd-3 and 290 ec -3), as
amended, relating to confidentiality of alcohol and drug
abuse patient records; (h) Title VII of the Civil Rights Act
of 1968 (42 U.S.C. 3601 et seq.), as amended, relating to
nondiscrimination in the sale, rental or financing of
housing; (i) any other nondiscrimination provisions in
the specific statute(s) under which application for Federal
assistance is being made; and (j) the requirements of any
other nondiscrimination statutc(s) which may ai,ply to the
application.
7. Will comply, or bas already complied, with the
requirements ofTitles II and m of the Uniform
Relocation Assistance and Real Property Acquisition
Policies Act of 1970 (P.L 91-646) which provide for fair
and equitable treatment of penons displaced or whose
property is acquired as a result of Federal or federally-
assisted programs. 1bese rcquucments apply to all
interests in real property acquired for project purposes
regardless of Federal participation in purchases.
8. Will comply, as applicable, with provisions of the Hatch
Act (5 U.S.C. 1501-1508 and 7324-7328) which limit the
political activities of employees whose principal
employment activities arc funded in whole or in part with
Federal funds .
Aatborized for Local Reproduction
Standard Form 424B (Rev 7-97)
Prescribed by 0MB Circular A-I 02
1 9 . Will comply, as applicable, with the isions of
-the Davis-Bacon Act (40 U .S.C. 276a to ~t6a-7), the
Copeland Act (40 U.S.C. 276c and 18 U .S.C. 874), and
the Contract W orlc Hours and Safety Standards Act ( 40
... U.S.C. 327-333), regarding labor standards for
federally-assisted construction subagrcement.
10 . Will comply, if applicable, with flood insurance
I.I purchase requirements of Section 102(a) of the Flood
Disaster Protection Act of 1973 (P.L. 93-234) which
requires recipients in a special flood hazard area to
._ participate in the program and to purchase flood
insurance if the total cost of insurable construction and
acquisition is $10,000 or more.
"-11 . Will comply with environmental standards which
may be prescribed pursuant to the following: (a)
L institution of environmental quality controJ measures
under the National Environmental Policy Act of 1969
(P.L. 91-190) and Executive Order (EO) 11514; (b)
notification of violating facilities pursuant to EO
11738; ( c) protection of wetlands pursuant to EO
..., 11990; ( d) evaluation of flood hazards in flood plains
in accordance with EO 11988; ( e) assurance of project
consistency with the approved State management
a.. program developed under the Coastal Zone
Management Act of 1972 (16 U.S.C. 1451 et seq.); (f)
conformity of Federal actions to State (Clean Air)
~ Implementation Plans under Section 176(c) of the
Clean Air Act of 1955, as amended (42 U.S.C. 7401 et
seq.); (g) protection of underground sources of drinking
L. water under the Safe Drinking Water Act of 1974, &S
amended (P.L. 93-523); and, (h) protection of
endangered species under the Endangered Species Act
of 1973, as amended (P.L. 93-205).
1
SIGNATURE OF AUTIIORIZED CERTIFYING OFFICIAL
1 APPLICANT ORGANIZATION
1
'
12. Will comply • the Wild and Scenic Rivers Act of 1968 (16
U.S.C. 1271 et seq.) Related to protecting components or potential
components of the national wild and scenic rivers system .
13. Will assist the awarding agency in assuring compliance will
Section 106 of the National Historic Preservation Act of 1966, as
amended (16 U.S.C. 470), EO 11593 (identification and protection
of historic properties), and the Archaeological and Historic
Preservation Act of 1974 (16 U.S.C. 469a-l et seq .).
14 . Will comply with P.L. 93-348 regarding the protection of
human subjects involved in research, development, and related
activities supported by this award of assistance.
15. Will comply with the Laboratory Animal Welfare Act of 1966
(P.L. 89-544, as amended, 7 U.S .C . 2131 et seq.) Pertaining to the
care, handling, and treatment of warm blooded animals held for
research, teaching, or other activities supported by this award of
assistance.
16. Will comply with the Lead-Based Paint Poisoning Prevention
Act (42 U.S.C. 4801 et seq.) Which prohibits the use of lead-based
paint in construction or rehabilitation of residence structures .
17. Will cause to be performed the required financial and
compliance audits in accordance with the Single Audit Act
Amendments of 1996 and 0MB Circular No. A-133, "Audits of
States, Local Governments, and Non-Profit Organizations."
18. Will comply with all applicable requirements of all other
Federal laws, executive orders, regulations, and policies governing
this program.
TifLE
DA TE SUBMITI'ED
Standard Fonn 424B (Rev . 7-97) Back
INSTRUCTIONS FOR THE SF-4:
Public reporting burden for this collection of information is estimated to average 180 minutes per response, including time for reviewing
instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of
information. Send comments regarding the burden estimate or any other aspect of this collection of information, including suggestions for
reducing this burden, to the Office of Management and Budget, Paperwork Reduction Project (0348-0041), Washington, DC 20503 .
PLEASE DO NOT RETURN YOUR COMPLETED FORM TO THE OfflCE OF MANAGEMENT AND BUDGET.
SEND IT TO THE ADDRESS PROVIDED BY THE SPONSORING AGENCY.
This sheet is to be used for the following types of applications: (I) "New" (means a new [previously unfunded] assistance award); (2)
"Continuation" (means funding in a succeeding budget period which stemmed from a prior agreement to fund); and (3) "Revised" (means any
changes in the Federal Government's financial obligations or contingent liability from an existing obligation). If there is no change in the
award amount, there is no need to complete this fonn. Certain Federal agencies may require only an explanatory letter to effect minor (no
cost) changes. If you have questions, please contact the Federal agency.
Column a . -If this is an application for a "New" project, enter
the total estimated cost of each of the items listed on lines I
through 16 (as applicable) under ''COST CLASSIFICATION."
If this application entails a change to an existing award, enter
the eligible amounts approved under the previous award for the
items under ''COST CLASSIFICATION."
_. Column b -If this is an application for a "New" project, enter
that portion of the cost of each item in Column a. which is not
J allowable for Federal assistance. Contact the Federal agency
for assistance in determining the allowability of specific costs.
If this application entails a change to an existing award, enter
the adjustment[+ or(-)] to tht previously approved costs (from
W column a) Reflected in this application.
J Column -This is the net of lines I through 16 in columns "a."
and "b."
• Line I -Enter estimated amounts needed to cover
administrative expenses. Do not include costs which arc
related to the normal functions of government. Allowable legal
11o,,1 costs arc generally only those associated with the purchases of
land which is allowable for Federal participation and certain
services in support of construction of the project.
'-Line 2 -Enter estimated site and right(s)-of-way acquisition
costs (this includes purchase, lease, and/or easements).
._ Linc 3 -Enter estimated costs related to relocation advisory
assistance, replacement housing, relocation payments to
displaced persons and businesses, etc. ..
Line 4 -Enter estimated basic engineering fees related to
construction (this includes start-up services and preparation of
project performance work plan).
Line 5 -Enter estimated engineering costs, such as surveys, tests,
soil borings, etc.
Line 6 -Enter estimated engineering inspection costs.
Line 7 -Enter estimated cots of site preparation and restoration
which are not included in the basic construction contract.
Line 9 -Enter estimated cost of the construction contract.
Linc IO -Enter estimated cost of office, shop, laboratory, safety
equipment, etc. to be used at the facility. If such costs arc not
included in the construction contact.
Line 11 -Enter estimated miscellaneous costs.
Linc 12 -Total of items I through 11.
Line 13 -Enter estimated contingency cots. (Consult the Federal
agency for the percentage of the estimated construction costs to
use.)
Line 14 -Enter the total of lines 12 and 13.
Linc 15 -Enter estimated program income to be earned during
the grant period, e.g., salvaged materials, etc.
Linc 16 -Subtract line 15 from line 14 .
Linc 17 -This block is for the computation of the Federal share.
Multiply the total allowable project costs from line 16, column
"c." by the Federal percentage share (this may be up to 100
percent: consult Federal agency for Federal percentage share) and
enter the product on line 17.
SF-424C (Rev . 7-97) Back
0MB Approval No . 0348-0041
BUDGET INFORMATION -Construction Programs
NOIB: Cenain Federal assistance programs require additional computations to arrive at the Federal share of project costs eligible for panicipation. If such is the case, you will be notified .
COST CLASSIFICATION
I. Administrative and legal expenses $
2. Land, structures, rights -of-way, appraisals, etc . $
3. Relocation expenses and payment $
4 . Architectural and engineering fees $
5. Other architectural and engineering fees $
, Project inspection fees $
7 . Site work $
8. Demolition and removal $
9. Construction $
10 . Equipment s
11. Miscellaneous $
12 . SUBTOTAL(sumoflincs 1-11) $
13 . Contingencies $
14. SUBTOTAL $
15 . Project (program) income $
16. TOTAL PROJECT COSTS (subtract #IS from #14) $
17 . Federal assistance requested, calculate as follows:
(Consult Federal agency for Federal percentage share.)
Enter the resulting Federal share .
.. Previous &iltlon Usable
a. Total Cost b. Costs Not Allowable for
Panicipation
.00 $
.00 $
.00 $
.00 $
.00 $
.00 $
.00 $
.00 $
.00 s
.00 $
.00 $
0.00 $
.00 $
0 .00 $
.00 $
0.00 $
FEDERAL FUNDING
Enter eligible costs from line 16c Multiply X Cl,
Authorized for Local Reproduction
.00 $
.00 $
.00 $
.00 $
.00 $
.00 $
.00 $
.00 $
.00 s
.00 $
.00 $
0 .00 $
.00 $
0 .00 $
.00 $
0 .00 $
$
c . Total Allowable Costs
(Columns a-b)
0.00
0.00
0 .00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0 .00
0 .00
0 .00
0 .00
0 .00
0 .00
Standard Fonn 424C (Rev. 7-97)
Prescribed by 0MB Circular A-102
0MB Approval No . 0348-0042
.iURANCES • CONSTRUCTION PROL .AMS
Public reporting burden for this collection of information is estimated lo average 15 minutes per response, including time for reviewing
instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of
information . Send comments regarding the burden estimate or any other aspect of this collection of information, including suggestions for
reducing this burden, to the Office of Management and Budget, Paperwork Reduction Project (0348-0042), Washington, DC 20503 .
PLEASE DO NOT RETIJRN YOUR COMPLETED FORM TO mE OFFICE OF MANAGEMENT AND BUDGET.
SEND IT TO THE ADDRESS PROVIDED BY fflE SPONSORING AGENCY.
NOTE: Certain of these assurances may not be applicable to your project or program. If you have questions, please contact the Awarding
Agency. Further, certain Federal assistance awarding agencies may require applicants to certify to additional assurances . If such is the case,
you will be notified.
I.
2 .
3.
7.
As the dul authorized re resentative of the a
Has the legal authority to apply for Federal assistance,
and the institutional, managerial and financial capability
(including funds sufficient to pay the non-Federal share of
project costs) to ensure proper planning, management and
completion of the project described in this application.
Will give the awarding agency, the Comptroller General
of the United States and, if appropriate, the State, through
any authorized representative, access to and the right to
examine all records, books, papers, or documents related
to the assistance; and will establish a proper accounting
system in accordance with generally accepted accounting
standards or agency directives.
Will not dispose of, modify the use of, or change the
terms of the real property title, or other interest in the site
and faciiities without permission a:-id instructions from
the awarding agency. Will record the Federal interest in
the title of real property in accordance with awarding
agency directives and will include a covenant in the title
of real property acquired in whole or in part with Federal
assistance funds to assure non-discrimination during the
useful life of the project
Will comply with the requirements of the assistance
awarding agency with regard to the drafting, review and
approval of construction plans and specifications.
Will provide and maintain competent and adequate
engineering supervision at the construction site to ensure
that the complete work conforms with the approved plans
and specifications and will furnish progress reports and
such other information as may be required by the
assistance awarding agency or State.
Will initiate and complete the work within the applicable
time frame after receipt of approval of the awarding
agency.
Will establish safeguards to prohibit employees from
using their positions for a purpose that constitutes or
presents the appearance of personal or organizational
conflict of interest, or personal gain.
8.
9.
10.
licant:
Will comply with the Intergovernmental Personnel Act
of 1970 (42 U.S .C . 4728-4763) relating to prescribed
standards for merit systems for programs funded under
one of the 19 statutes or regulations specified in
Appendix A of OPM's Standards for a Merit System of
Personnel Administration (5 C.F.R. 900, Subpart F).
Will comply with the Lead-Based Paint Poisoning
Prevention Act (42 U.S.C. 4801 et seq.) which
prohibits the use of lead-based paint in construction or
rehabilitation of residence structures.
Will comply with all Federal statutes relating to non-
discrimination. These include but arc not limited to:
(a) Title VI of the Civil Rights Act of 1964 (P.L. 88-
352) which prohi~its discrimination on the basis of
race, color or nabonal origin; (b) Title IX of the
Education Amendments of 1972, as amended (20
U.S .C. 1681-1683, and 1685-1686), which prohibits
discrimination on the basis of sex; (c) Section 504 of
the Rehabilitation Act of 1973, as amended (29 U.S.C.
794 ), which prohibits discrimination on the basis of
handicaps; (d) the Age Discrimination Act of 1975, as
amended (42 U .S .C. 6101-6107), which prohibits
discrimination on the basis of age; (e) the Drug Abuse
Office and Treatment Act of 1972 (P.L. 92-255), as
amended, relating to nondiscrimination on the basis of
drug abuse; (f) the Comprehensive Alcohol Abuse and
Alcoholism Prevention, Treatment and Rehabilitation
Act of 1970 (P.L . 91-616), as amended, relating to
nondiscrimination on the basis of alcohol abuse or
alcoholism; (g) 523 and 527 of the Public Health
Service Act of 1912 (42 U .S .C . 290 dd-3 and 290 ee-
3), as amended, relating to confidentiality of alcohol
and drug abuse patient records ; (h) Title VIII of the
Civil Rights Act of 1968 (42 U .S.C. 3601 et seq .), as
amended relating to nondiscrimination in the sale ,
rental or financing of housing; (i) any other
nondiscrimination provisions in the specific statute(s)
under which application for Federal assistance is being
made; and (j) the requirements of any other
nondiscrimination statute(s) which may apply to the
application.
vious F.dition Usable Authorized for Local Reproduction
Standard Form 4240 (Rev. 7 -97)
Prescribed by 0MB Circular A -102
._
i..
11.
12.
13.
14 .
15.
WilJ comply, or has already co1 ~. with the
requirements of Titles II and III of the Uniform
Relocation Assistance and Real Property Acquisition
Policies Act of 1970 (P.L. 91-646) which provide for fair
and equitable treatment of persons displaced or whose
property is acquired as a result of Federal and federally-
assisted programs. These requirements apply to all
inte~sts in real property acquired for project purposes
regardless of Federal participation in purchases.
Will comply with the provisions of the Hatch Act (5
U .S.C. 1501-1508 and 7324-7328) which limit the
political activities of employees whose principal
employment activities are funded in whole or in part with
Federal funds .
Will comply, as applicable, with the provision of the
Davis-Bacon Act (40 U.S.C. 276a to 276a-7), the
Copeland Act (40 U.S.C. 276c and 18 U.S.C.874), and
the Contract Work Hours and Safety Standards Act (40
U.S.C. 327-333) regarding labor standards of federally
assisted construction subagreements.
Will comply with flood insmance purchase requirements
of Section 102(a) of the Flood Disaster Protection Act of
1973 (P.L. 93-234) which requires recipients in a special
flood hazard area to participate in the program and to
purchase flood insurance if the total cost of insurable
construction and acquisition is $10,000 or more.
Will comply with environmental standards which may be
prescribed p:JISuant to the following: (a) institution of
environmental quality control measures under the
SIGNATURE OF AUTHORIZED CERTIFYING OFFICIAL
APPLICANT ORGANIZATION
16.
17.
18 .
Natio 1nvironmental Policy Act of 1969 (P.L . 91-
190) anel Executive Order (EO) 11514; (b )
notification of violating facilities pursuant to EO
11738; (c) protection of wetlands pursuant to EO
11990; ( d) evaluation of flood hazards in flood plains
in accordance with EO 11988; (e) assurance of project
consistency with the approved State management
program developed under the Coastal Zone
Management Act of 1972 (16 U.S .C. 1451 et seq.); (0
conformity of Federal actions to State (Clean Air)
Implementation Plans under Section 176(c) of the
Clean Air Act of 1955, as amended (42 U .S.C . 7401 ct
seq .); (g) protection of underground sources of
drinking water under the Safe Drinking Water Act of
1974, as amended (P.L. 93-523); and (h) protection of
endangered species under the Endangered Species Act
of 1973, as amended (P.L . 93-205).
Will comply with the Wild and Scenic Rivers Act of
1968 (16 U.S.C. 1271 et seq.) related to protecting
components or potential components of the national
wild and scenic rivers system.
Will assist the awarding agency in assuring
compliance with Section 106 of the National Historic
Preservation Act of 1966, as amended (16 U.S.C.
470), EO 11593 (identification and protectionof
historic properties), and the Archaeological and
Historic Preservation Act of 1974 (16 U .S .C. 469a-l
ct seq.).
Will cause to be performed the required financial aJ ,d
compliance audits in accordance with the Single Audit
Act Amendments of 1996 and 0MB Circular No. A-
l 33, "Audits of States, Local Governments, and Non-
Profit Organizations."
19. Will comply with all applicable requirements of all
other Federal laws, executive orders, regulations, and
policies governing this program.
1111..E
DATE SUBMITI'ED
SF-424D (Rev. 7-97) Back
INSTRUCTIONS FOR C' u>LETION OF SF-LLL, DISCLOSURf' "F LOBBYING ACTIVITIES
This disclosure fonn shall be completed by the reporting entity, whether subawardee or prime Federal recipient, at the initiation or receipt of a
covered Federal action, or a material change to a previous filing, pursuant to title 31 U.S.C. section 1352. The fil i ng of a form is required for
each payment or agreement to make payment to any lobbying entity for influencing or attempting to influence an officer or employee of any
agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with a covered
Federal action. Complete all items that apply for both the initial filing and material change report. Refer to the implementing guidance
published by the Office of Management and Budget for additional infonnation.
I . Identify the type of covered Federal action for which lobbying activity is and/or has been secured to influence the outcome of a
covered Federal action.
2. Identify the status of the covered Federal action.
3 . Identify the appropriate classification of this report. If this is a followup report caused by a material change to the infonnation
previously reported, enter the year and quarter in which the change occurred. Enter the date of the last previously submitted report
by this reporting entity for this covered Federal action.
4 . Enter the full name, address, city, State and zip code of the reporting entity. Include Congressional District, if known . Check the
appropriate classification of the reporting entity that designates if it is, or expects to be, a prime or subaward recipient. Identify the
tier of the subawardee, e .g., the first subawardce of the prime is the 1 • tier. Subawards include but arc not limited to subcontracts,
subgrants and contract awards under grants.
5. If the organization filing the report in item 4 checks "Subawardcc," then enter the full name, address, city, State and zip code of
the prime Federal recipient. Include Congressional District, if known.
6. Enter the name of the Federal agency making the award or loan commitment,. Include at least one organizational level below
agency name, if known. For example, Department of Transportation, United States Coast Guard.
7. Enter the Federal program name or description for the covered Federal action (item 1 ). If known, enter the full Catalog of Federal
Domestic Assistance (CFDA) number for grants, cooperative agreements, loans, and loan commitments.
8 . Enter the most appropriate Federal identifying number available for the Federal action identified in item 1 (e.g ., Request for
Proposal (RFP) number; Invitation for Bid (IFB) number; gant announcement number; the contract, grant, or loan award number;
the application/proposal control number assigned by the Federal agency). Include prefixes, e.g., "RFP-DE-90-001."
9. For a covered Federal action where there has been an award or loan commitment by the Federal agency, enter the Federal
amount of the award/loan commitment for the prime entity identified in item 4 or 5.
10. (a) Enter the full name, address, city State and zip code of the lobbying registrant under the Lobbying Disclosure Act of
1995 engaged by the reporting entity identified in item 4 to influence the covered Federal action.
(b) Enter the full names of the individual(s) performing services, and include full address if different from lO(a). Enter
Last Name, and Middle Name (Ml).
11 . The certifying official shall sign and date the form, print his/her name, title, and telephone number .
..J Accordi ng to the Paperwork Reduction Act, as amended, no persons arc required to respond to a collection of information unless it
displays a valid 0MB Control Number. The valid 0MB control number for this information collection is 0MB No . 0348-0046. Public
reporting burden for this collection of infonnation is estimated to average 10 minute per response, including time for reviewing
instructions, searching existing data sources, gathering and· maintaining the data needed, and completing and reviewing the collection of
.J information. Send comments regarding the burden estimate or any other aspect of this collection of information, including suggestions for
reducing this burden, to the Office of Management and Budget, Paperwork Reduction Project (0348-0046), Washington, DC 20503.
Approved by 0MB
,fSCLOSURE OF LOBBYING ACTIV... .ES
Complete this form to disclose lobbying activities pursuant to 31 U .S.C. 1352
(See reverse for public burden disclosure .)
0348-0046
1. Type of Federal Action: 2. Status of Federal ActiQn: 3. Report Type:
D a. contract D a. bid/offer/application D a. initial filing
b. grant b. initial award b. material change
c. cooperative agreement c . post-award
d . loan
e. loan guarantee
f. loan insurance
4. Name and Address of Reporting Entity
Congressional District, if known:
6. Federal Department/Agency:
8. Federal Action Number, if lcnoM'n:
, I 10. L Name and Addras of Lobbying Registrant
U (if individual, last name, first name, Ml):
J
._ 11 . Information requested through this form is authorized by title 31
U.S.C . section 1352. This disclosure of lobbying activities is a material
representation of fact upon which reliance was placed by the tier above
when this transaction was made of entered into. This disclosure is required
._ pursuant to 31 U .S .C . 1352. This information will be reported to the
Congress semi -annually and will be available for public inspection. Any
person who fails to file the required disclosure shall be subject to a civil
penalty of not less that $10,000 and not more than $100,000 for each such
a.. failure.
Federal Use Only:
-
For Material Change Only:
year quarter ___ _
date of last report ____ _
5. H Reporting Entity in No. 4 is a Subawardee, Enter Name
and Address of Prime:
Congressional District, if known :
7. Federal Program Name/Description:
CFDA Number, if applicable:---------
9. Award Amount. if known:
s
b. Individuals Performing Services (including address if
different from No. 10a)
(last name, first name, Ml):
Signature:
Print Name :
Title:
Telephone No: Date :
Authorized for Local Reproduction
Standard Form UL (Rev. 7-97)
Attachment A
PROGRAM ELEMl:ft (~ASK) BUDGE':?
Attach to the application a Program Element Budget ( budget by llU)
baaed on guidance provided by your BPA Project Officer. The
attachment may be a typed li•:t or a computer printout. The Program
Bleaent Budget (taak budget) and the Object Cla•• Budget
(personnel, fringe benefits, travel, etc.) should have the .&11111
total dollar amount a• they are for the same work (just different
budget estimates) • Be sure to include indirect coat• in the
Program Blement Budget if you in~luded indirect coats in the Object
Claaa Budget -SP-424A, Section B. Indirect costa should be
incorporated into the coat of each taak or program element.
'l!BBRB I8 ao PORK POR 'rD PROGRAM BJ.IQIJPl2 BUDGB!f (BUDGft ar ':rASJt).
nPB OIi PLIU8 BOJID OR UBI A CCJNPftBll PRillmm.
'l'BB OBJBC'l' CLASS BUDGB'l' FORM (PBRSOMNBL, FRINGB BBNBPI'l'S, TRAVEL,
BQUIPMBBT, INDIRBC'l' COST, B'l'C.) IS POUND OH PAGE 2 OP' TBB 8P-t26A.
Attachment B
LIS'r or COHAC'r PERSOIDIEL
Project Manager (Contact Peraon) ll Different Froa Authorized
Official Who Signed Applications
Name Phone (Incl. A/C)
Title
Street Address or P.O. Box
City State Zip Code
Grant•• riacal Officers
Name Phone (Incl. A/C)
Title
Street Address or P.O. Box
City State lip Code
riacal Contact Peraon .ll Differen~ Proa Fi•cal Officers
Bame Phone (Incl. A/C)
Title
Street Addres• or P.O. Box
City State lip Code
Attachment C
SAMPLE FO~ OF S~AFFIRG LIST
To Be Included with Application
Number of Annual Personnel
Position Title Positions salary Rate Coat
CURRENT STAFF
Division Director 1 Included In Indirect Costs
Chief Engineer 1 Included In Indirect Costa
District Engineer V 4 $ 32,000 $ 64,000
District Engineer III 3 25,000 37,500
Engineering Tech. IV 3 -15,000 30,000
Engineering Tech. V 5 18,000 18,000
Secretary III 1 15,000 15,000
Secretary II 2 12,000 6,000
VACANCIES
District Engineer III 4 25,000 100,000
Engineer T18Ch. IV 2 15,000 30,000
Engineer Supervisor l ,o,ooo zg1ogg
$320,500*
*Should agree with Total Personnel in Section B Budget.
Work
Yeare
0.02
0.25
2.0
1.5
2.0
1.0
1.0
0.5
4.0
2.0
21:I
15.95
Notes 'l'bia format is a sample and may not fit your staff
title•, salaries, etc. Please use your agency'•
deaignationa and rates. IRCLODB ONLY AGBRCY STA!'!'
TBA'l' WILL BB UTILIIBD m 11BOLI OR IR P.ART OH DIS
GRAM' PROJBC'l'. AGBHCY ST.Aff 'l'BA!' WILL am WORlt OIi
TBIS GRAN'l' PROJBCT SHOULD BC1.r BB IBCLUDBD IR TBB
S'l'APPING LIST SUBIU'l"l'BD WITS TBB GRUT APPLICATION.
Time-and-diatrihution-of-eftort record• :must be kept for audit
purposes, by pay period, for those who spend le•• than 1001 of
.their time on the project.
Attachments P & B
AttacbNat Dz
If the amount budgeted for •other• in Section B amounts to $1,000
or more, attach a sheet listing the composition of •other• and the
estimated cost of each of the major items.
Attachment B:
Equipment i• defined as tangible, nonexpendable, personal property
having a useful life of more than one year and an acquisition co•t
of $5,000 or more per unit for State, .Local Government• and Indian
Tribe• and $1,000 or more per unit for Univeraitiea and Ron ·
Profit•.
A'l'TACB A LISTING OP AN'l'ICIPATBD BOUIPMBHT PURCBASBS POR TBIS
PROJECT.
The equipment list should identify the item, show the estimated
coat of the item, and give a BRIBP de•crip~ion of it• uae on the
project.
8UPPLIB8
Suppli•• are defined •• •tangible personal property other than
BOQIPMJQJ'l.
A'l"l'ACB A LIST HAT IDBN'l'IPr TIIB GBBBJU\L RA'l'ORB OP TBBSB ITBHS
(DBSK, CHAIRS, PAX HACBIRB, BTC).
Grantee• are encouraged to use u.s. Government exca•• and aupply
sources such as GSA auction•, etc~
In•truction to Applicant•
EV:IDENCE OF COHPL:IAHCE WI'l'B INTERGOVERNHEIITAL uvn:w
Attachment,:
Executive order 12372, •:intergovernmental Review of Federal Program,• e•tabli•h•d
a new intergovernmental review proce•• which provided state an opportunity to
develop a flexible atate-admini•tered proce•• of intergovernmental conaultation
with state, regional, areawide, and/or local planning agenciea. A ata~ i• D~
require4 to e•bbli•la a •tat• proce•• or to aelec:t all of BPA. • • a••iataDce
progr-to be re.-i...S tb.roagla U.. atate proc•••• Bowever, the Executive order
and EPA•• regulation at 40 CFll Part 29 alao impl-nted tvo other exiating
Federal •tatute• requiring intergovernmental con•ultation with state and local
elected official•.
WBZRB A STATE PJlOCBS8 BAS BEEN l!STABL:ISBZD
The EPA program for which you are applying may be aubject to your state'•
intergovernmental review proc••• ud/or the conaultation ·requirement• of section
204, oemon•tration Citie• and Metropolitan Develo~nt Act, and/or Section 401,
Intergovernmental cooperation Act. Tou auat contact your state
clearinghou•e/single Point of contact to find out if the program wa• Hlected for
coverage by th• state proceH and to receive infonaation about your state'•
review proc••• requirement• and procedure•. Include with you application to EPA
any information received frOII the State Clearinghouae/SPOC. Thi• ahould include
their cODDent• and the state Application Identifier for Block 12 on the s.P. 424.
If you do not have the SAI number, be aure to complete Block tu on the s.P. 424.
mu A STATE PROCESS EXISTS IIU'1' aCLUDa A COVERED PROGRAM OR
WBEJlE A STATE PROCESS DOU IIO!l' EXIST
Bven though the function• of your state clearingbou••/&ingle Point of contact may
have been t.end.nated or do not ccwer all prop'-eligible for reYi-through t.lae
•tat• proceH, the EPA program for which you are applying may be aubject to the
con•ultation requirement• of Section 204, •oemon•tration citie• and Metropolitan
Development Act,• and/or Section 401, •Intergovermnental cooperation Act.• If
•o, you mu•t notify areawide metropolitan or regional planning agenci•• and/or
general government unit• authorized to govern planning for the locale of your
project of your intended application. Your application to EPA au•t be
accompanied by the coaDenta and recommendation• of th••• planning entitiea and
by a •tatement from you that •uch comment• and reconnendation• have been
con•~dered prior to formal •ubmi••ion of the application to EPA. Complete the
data aheet below and mail to EPA to ••tabliab th• •tart date for the c0111Dent
period.
SPA WILL IIO'Z PROCBSII tOUJl APPLICI.TIOII WITBOft BVIDIIIICS OP tOUJl C0NPLIA11C3 WZTII
SITBD PROCBIS DUCRIBD AIIOVS
IIIDUII TRIBAL GOVBJUOiD'l'I Alli BDNr.r FIUlll IR'l'BRGOVBIUOCBlffAL rma
...... 'l'O ns DAD sun FOLLOWI•G TBBIS I•ITRUC'.rIOlla
sun 8IIIGLB POill'.!8 OP COll'DCT
Refer to AT'.rACIDIBlff P for additional inforaation concerning the
intergovernaental reviaw proc•••·
3/14/94
ARIWl8A8
Tracy L. Copeland, Manager
State Clearinghouse
Office of Intergovernmental Service
Department of Finance and Adminiatration
1515 We•t 7th Street, Rooa 412
Little Rock, Arkansas 72203
(501) 682-1074
LOUI8IUA
See attachaent P for instructions
IIB1f MQICO ·
Bob Patera, Single Point of Contact
Hew Mexico State Clearingbouae
DFA State Budget Office
Bataan Meaorial Bldg., Room 190
Santa Fe, New Mexico 87503
(505) 827-3872
OKLABONA
See attachment P for instructions
,nu
Tom Adams Ass:t. Director for Intergovernmental
Relation•
Office of State Federal Relations
201 Baat 14th Street; Suite 507
Austin, Texaa 78701
(512) 463-1803
Revised
;
COMPLETE TBIS DATA SHEET AND MAIL TO EPA, REGION 6, DALLAS TO
ESTABLISH TBB START DATE FOR INTERGOVERNMENTAL REVIEW COMMENT
PERIOD
A. APPLICANT HAMB: __________________ _
B. CATALOG OF FEDERAL DOMESTIC ASSISTANCE NUMBER AND TITLE:
66. ________________________ _
1.
2.
3.
4.
(NUMBER) (TITLE)
Program Subject to State Process:
YES NO
Application/Preapplication/Notice of Intent Sent To
State Process On: --------------(DATE)
Program Subject To Section 204:
YES NO
Application/Preapplication/Notice of Intent Sent To
Appropriate Planning Agencies On: _______ _
(DATE)
More than one planning agency and dates may be inserted below.
Attachment G
LAHST IRDIRBC'! COST DGOTIATIOB AGRBEMERT
It ia EPA policy that indirect costs must be supported by an
approved and current Negotiated Indirect Cost Rate Agreement or
Coat Allocation Plan for indirect coats to be eligible for
reimbursement under assistance awards. Indirect costs are those
costs which are incurred for a common or joint purpose benefiting
more than one coat objective, and not directly assignable to a
local governments are generally prepared and established in
accordance with the policies and procedures contained in the •Guide
for State and Local Government Agenciea, Cost Principles and
Procedure a for Establishing Cost Allocation Plans and Indirect Cost
Rates for Grants and Contracts with the Federal Government•, (BBW,
Dec. 1976 OASC-10). An applicant may budget for indirect costs for
a period not covered by the applicant'• lateat Negotiated Indirect
Coat Rate Agreement or Cost Allocation Plan (e.g. no current rate
at the beginning of the project period, or the current rate expire•
prior to the end of the project period)J however, the indirect
cost• are budgeted amount11 only and may not be charged or requested
for re~ursement until such time as the applicant received an
approved Negotiated Indirect Coat Agreement ( State Agencies) •
Local government• are required to prepare and retain a copy of
their Coat Allocation Plan at the local government level, unless it
submitted the Plan for review and approval by a cognizant Federal
Agency, in which caae the local government will receive an approved
Negotiated Indirect Cost Agreement. Jlon-profit inatitutiona will
prepare an4 eatabliah indirect co•t rat•• in accordance with ONB
Circalar A-122, and educational institution• will prepare and
eatabliah in4irect coat rat•• in accordance with ONB A-88.
Attach a copy of your LATEST Agreement with your cognizant agency
if you plan to claim indirect coats on the project. Please attach
a copy to BACH application. Your financial off ice will have a copy
of t~e lateat Agreement. The dollar amount of the indirect cost
should be shown in the Section B budget. The dollar base amount ·
and the percent rate should be abown in 122 of Section P. Indirect
coats should be incorporated into the Program Element (task) Budget
(Attachment A).
INDIRECT COSTS ARB NOT ALLOWABLE COSTS ON 'l'BCBNICAL ASSISTANCB
GRANTS ( 'l'AG• ) •
Attachment B
CBRTIPICATIOR RBGARDING D!BARIIEIIT, 8U8PD8IO• A111D OTDR
RBSPORSIBILITY 111.'!TBRS -BPA FORM 5700-•t
Bach application must include a current BPA Form 5700-49,
"Certification Regarding Debarment, Suapenaion, and other
Responsibility Mattera" included in the application .kit. Thia
certification ia required in accordance with 40 CFR PART 32.
Additionally, recipient• of BPA assistance awards muat require this
certification from each of their contractors (if they award any
contracts under the project) and must file these certifications in
the project file with other project information and documentation.
&EPA
United States Envtronmental PrOlec:tlon ,O.rw:y
Wuhingtlan, DC 20480
ATTACHMENT H
EPA Project Control Number
·Certification Regarding
Debarment, Suspension, and Other Responsibility Matters
The prospective participant certifies to the best of Its knowledge and belief that It and Its principals:
(a) Are not presently debarred, suspended, proposed for debarment. declared lnellglble, or voluntarty
excluded from covered transactions by any Federal department or agency;
(b) Have not within a three year period preceding this proposal been convicted of or had a ctvl Judgement
rendered against them for commission of fraud or a criminal offense In connection with obtaining.
attempting to obtain, or performing a public (Federal, State, or local) transaction or contract under a
public transaction; violation of Federal or State antlrusl statutes or commission of embazzlement.
theft, forgery, bribery, falslflcatlon or destruction of records. making false statements. or receiving
stolen property;
(c) Are not presently Indicted for or otherwise crlmlnaDy or ctvlly charged by a govemment entity (Federal,
State, or local) with commission of any of the offenses enumerated In paragraph (1)(b) of this
certification; and
(cf) Have not within a three-year period preceding this appllcatlon/proposal had one or more public
transactions (Federal, State, or local) terminated for cause or default.
I understand that a false statement on this certification may be grounds for rejection of this proposal or
termination of the award. In addition, under 18 USC Sec. 1001, a false statement may result In a fine of up
to $10,000 or Imprisonment for up to 5 years, or both.
Typed Name & Title c,f AuthOrlzed RepreMntatiYe
Signature of Authorized Aep,11entati¥e
D I am unable to certify to the above statements. My explanation Is attached .
£PA Form 57()()-.41 (11-11)
Instructions
Under Executive Order 12549, an lndtvlduaJ or organization debarred or excluded from
participation in Federal assistance or benefit programs may not receive any assistance award
under a Federal program. or a subagreement thereunder for $25,000 or more.
Accordingly, each prospective recipient of an EPA grart, loan, or cooperative agreement and any
contract or subagreement participant thereunder must complete the attached certification or
provide an explanation why they cannot. For further detals, see ~ CFR 32.510, Participants'
responslbllties, In the attached regulation.
Where To Subml
The prospective EPA grant, loan, or cooperative agreement recipient must return the signed
certification or explanation with Its application to the appropriate EPA Headquarters or Regional
office, as required In the application Instructions.
A prospective prime contractor must submit a completed certification or explanation to the
Individual or organization awarding the ccnract.
Each prospective subcontractor must submit a completed certification or explanation to the prime
contractor for the project. ·
How To Obtain Forms:
EPA Includes the certfflcatlon form, Instructions, and a copy of Its lmplementlng reguatlon (40 CFR
Part 32) In •ch appllcatlon kit. Appllcanta may reproduce these materials as needed and prcMde
them to their prospactlYe prime contractor, who, In tum, may reproduce and provide them to
prospective subcontractors.
Additional copies/assistance may be requested from:
. OFFICE OF GRANTS & DEBARMENT
Suspension & Debannent Division (3902F)
U.S. Environnental Protection Agency
401 M. Street, SW
Washington, DC 20460
Telephone:202/260-8025
EPA Form 570CMI (11-11)
T1Mnday
May 21, 1911
Part VII
Environmental ·
Protection Agency
40 CFR Part 32
Debarment and Suapenalon Under EPA
Aulatance, Loan and Benent Programa
Fedenl a...-/ Vol. 53. No. 1oz / Tbunday. Mar a 1• / Noticn
£NVIRONIIENTAL PROTECTION Fedi!ral Acqwaitioo Regulalilffl (PAllJ.
AGENCY 48 CFR Subpart 9.4. it ii EPA"a policJ.
for purpoHt of rational ar.d l'l.ident
40 CFR Part 3Z mo1na~ment. lo inlepate ita
(f'Rl.4UO-IJ 11J.n1ini1tr•lion of these twn
complementuy pruar1m1.
POii flUIITNlll ...,.....TIGII COlll'ACT: One commer.!er sousfil cl .. rifi::alion
Robert Melllliu or David Sima. •I (2DZ) about whetbe~ a pP.rtcn contd bt
4~ debl.rftd or 1u1pended fo! wiolatt111
· • ADDmONAL..,. ew,n...., en,1ronmental lawa. An enviroamtal
N111.-..11CMC OD May a 1•. IN violation COl&IJ ,;ve riM tu a clebanalat
OfBct of M.uqelMDt ud Badaet or 1u1peuioa actiOD uncwr .....i fll
(0MB). LNlled CaflrmDmtwlda the c.allN9 at I U.:U. where .._. II a
pideliDN acminaJn1 clebumeDt md reuoubla cauecticm berweea ...
1upemioa by lxeaatiff audl . offlDN committed ud fatln
qadH UDdar DODptW at perfol'IDUCI uader u EPA uauluae
prapw. OD October a 1•. au, J1rop'UL FOi' aawple, a coamclka of
qenci• joiwl ID prapodatl a COllll90D dwtl Jndrent far falNIJ cartifJlal
nala to lmplm-t die ........... n. buardau wuta ..,_.. ..._..
F.DriroDmental ~tadka ~ (IPA) coald f'll9lllt ID clebummt_..
alao publf11Mid •: • ~ nle at daat I 3z.JDll(aX3). n. -•llladwl
time, bat DOI u put of.. m nle diapoMI of buudau wuln. ....
(SZntllftl..i).SIDcet-.OMBllu ~'Wdnipt ..... •,cadl
......W dae pldeHnee wl det.-.lMcl rcRlt ID dabarmnt lllllder I 31.1111 (alt)
that aD qeac:laa wdl Jain 6ia CPD-or (d). Pl.ihn ID complJ wldl
rule ID order to.....,..._._ aYiroameDtal reqairemala :
uaifanulJ. Comnwnta cm IPA'• Incorporated Into a public caatracl mul
propoeed rule were caa.W. 11C1 ID reealt ill debanuat under I IUlll(b).
preputna a llnal ~ Nie ud.,. Tbe camw rule l'lq1&iret a_.,..
addrewid ID the caa-pnrs-Ne oalJ ..... tben sJdata n ..--
!PA la acloptlDa aeversl acldlll ... to diaplata u ID facta aatarlal la•
Iba coau1iaD na1s. UDdnr tbs c mme prapoaed dsbumat ar .......... IPA
rule, qaciea Ila" die aplla lo 1D1nrt la nddbla ....... to 11 .m.ud
additlaaal naeDCJ-.,.cdlc: u&mpl• to -•U. permktbll n rnpoaclat lo
lbe daftaltloaa. n. dsftllltlam., nqueet a ...,.. N9Udlna of .....
... bantaa ofBc:lal"' ud • ...,. ..... lbsre arc ... lerial r.cta· .. ca...-
olllclar uder din ...., Nie an 1111.t rnllecla f.PA'1 policy ud ......a
NUii smndad by 1ddlaa pnc:tlcl fll d'ordiDa all rn,a ODMIIII ..
aubparsaraplil (IJ(I) ud (t)P) lo -:~~.:.. ~ .:___
1-t• to dett.pata din Dlnc:tar. nao --·--Crute Admbliltrnlioa Dlvlaloa. u din for beariaa upa ....,_..aa. ..,..._, le ='• debsrriq and, ... ,....... ~tdl aublecl ta dm.sJ adsr
of& ID additloa. !PA la amndf• I 3UU(bXlJ(il). wbarw re-11• •
die dellallioa of "PrlDdpal"' at c.a11templntad ..... proceediap would
l-1Gl(p) by addlaa bid wl be~ CIOIBIIIOll rule .......
propoul •tlmatan aad pnpuww u u proYillOD for poa1•1enntn...,_ IWYl9w
qency-apedk example. f debsnwat laD dac:111 0 Sec:tiaal _110(1XZXI•) wl O • aupeum
---~c)(S) of lM lbaal C011UDm nda ~~:..re:-~= e--
u.empt truaactlom punuat lo nddms 11 UDJ and SUZI. ....
utlcmsl or qeDCJ-fflXllll/t-t permit • pert, to rwqae,t 6ia ......_, ••eraanclN OI' cliautat from 1M elrect a~ ollldal ID IMI d+r.
of S IUlpeuiOG OI' debanwat. Tllia deciJima to debar• -.pead ... ID D
uemptlcm dou D011pplJ ID mw ol fact or law. IPA le .... .....
lrsDUc:tlolll under aay prapam1 curiecl 11 az.m ad II.GI. .W.. ....
out by IPA. Accotdiallr, dlaonllaau7 rmew., ...,._. _.
I u.n0(1)(ZXl•J(A) ul I 3Ullll(c)(S)(i) na; rlw claddom t., t11e.. *' ~
on ndded to clarlfr .._. ~ IPA'• Olllas al~.._~ e
In apeciaJ cnw. IPA II aallladwt ID Wlftlal .,...i 11W wtdda • ml f
,_.,, a clabnmd. uap 1rr:'ed • daya of Nalllpt ., ... dabantil •
voluntardJ udaud penae ID mapend•• ailldal'a ......_.._ We
partldpall tn a partlc:ular covaed • _.. daat .....i. a ., • ..
trauac:ticm by arutlaa .. uc,ptloa p1opoaed.. a• .... Ni , . ~.
under I IU1I. tut• ide!ntatntlve......, pa r
EPA la •cldilla aubpsrqn~ (d).to be puvf M
IU.tl11ta11D1dlattndePutSZcloea 1lae mNlnalalN ........
·aot apply to direct Pedlral p1oc:.a 1• mt tbia -~le........,... .. _.
actM ..... wlaicb aN ,.,,__. bJ din debannml aad • •t I • 1 -Al
EPA thia authority la veatad in the
Director. Cranla Adminiatretion
Divi1io11. U the debamna and
1uapendi111 official Accordiasly. EPA it
addin1 •abparap-aph (1) to
I _---31S(a) to reftect llua
rnponubWty. ·
The propoaed COIDIDOD Nie contained
a certlftcatioa requinmat wWcb
acompuaed a rup of impartaat
Information from wbk:b to cletamine Ille
c:urffllt ebalbWIJ • poteDllal .
rnpaaaibUity of the ;,.pac11w
pa,tidpant. In the llnal C -nle, .... are..,.,. .. cartlBca .... -rar
primuJ c:ovand lreDMrtlmr (q..
aaaialance ndpiataJ and -far Iowa-
lier conred In,......_ (e..,.
CODtndlln. subrmlnctan. ~ n. knNr-tiar aatdlcatla .. -
abbrnlaled YerllaD fll 1M prlaa ·.U.
certllcallaJL a.:a-lPAll _t ...._.ble lo
wuta. had •abue at tlle~tlar
leY9l. IPA II expanctina daa cartiftcatlall
far loww-ller pu11dpsnla bJ.,......
tbna to certify to mudl ol Ille ....
IDformatloll proYkled ID Iba cartiftcatlm ===u;=-..,.......,a} (b)ud(c}mwbelaa
added ID lhe ...... tlrlr omlllcatlcm ....
Ua1., , .. , •. eta•·• en ... •
Adalalntlaha ..... ...
........ Aallllum ............
...........tel protactioa. T• ........ .........
1.-M.fln--.
A .. kia*alw.
0.1111: ... , 11.. 1IOL
nt1e e o1 .. Coda Df ,ec1an1
lleaulntlODI .. ameaded a, ... fOltla
befow.
1.P1Ut1Zal'ffiad.1DINII••
forth al lbr...S fll .... WE t
· PAIIT a---«WEIIIF?RTWm
DDA& 77TffMD• IPEI.IDNOIQII-
PROCUIIEIIENI) .......,. ..... .. == ILUI r.,u ...
11.111 ....
..... ••tlfAlllla
.... Dt rt••,aalla
II.Ill I--· ......
II.Ill Yip;» I 5
II.Ill a C SS --g # :>•., ..............
1&111 ....... ft IH 55
...... C41 2
.... c..al. .... c... .. •al s
Federal lepa&er / Vol. SJ. No. 102 / Thunday. May 28. 1911 / Nolicn
32 .310 Proced11rn
32.311 lnve1bfauoa and ref--1.
32.312 l\ic,lice of propoNd debanHDI.
lUU 0ppor1111UI) to COftlHI propoHd
dr baffllffll.
32 314 Debamna official'1 deciaion.
3:.315 Settlement and vohanau, eacl111ion
~.3l0 Pfflod of debuaaDL
32.lll Scope ..........
3UJO lllec:D11aidention.
32.335 A.ppeal
~I>= II s I air
JUGD CeMral. n.a ea .... for napaaaio&
3U10 ...... ...
JUU Noticlt ol aup
U.41Z OppartattJ to aaatnt ...,.lllicm.
32.413 S&sm ......... ,....._
32.41S ,._..,, S dm n.ao ..,_.,, •s ,, ..
JUZI lb 1#-tlaa.
~-A,fml. ...... u CIC
A..-, ...... ,
= .. w_
l2JGD CIA a 41 sMMn
U.1111 IPA a ; 4411w.
U.SII ,_,..,.... I p All ...
~A--CWC ••Zs ..
D1... Ct I I _.a..,
• o cn.,nc s r: ~c.-., ,.. 1
A I• a--.C:aC 1 • .. n°f rtl n •-4.-_. 5 VG
V.....,. I 7 kzafta...._..
,.. 1
Aa6a.,. .. Iha Ola UNI 1 U.S.C.
"' 111-..: 11 u.a.c. -ii-..:• u.ac.
ta11 a1-..: • u.a.c. un ii-..: a 11.s.c. man.an.-.-•-..
(3) Providi.na for the liatiq or
debarnd and 1u1peoded participanta.
participant. dec:land inelip,le (w
definitiaa ol "iaeliaible" ill 1--lllli(il).
ind panidpanta wlm lla,re ftllmtarily
excluded tbemaelvn from partidpation
in covered b'allNCtieM
(4) Settina fur1ls die camequmc:111 of a
debarment. 1u1pauioa. delermlnaliaa al
ineliaibility, or vol1111tary txehaaioll; and
(5) OfferiDI auda olMr pidara H
nac:euary ror the afftcti••
implementatioa aad admialatralicm of
the aovemmeatwide qatea.
(c) Altboqb tbe11 rqulaliou covar
the l.iatina of inalicibl• participmra aad
the effect or 1uc.b li11ina, they do not
p~1cribe pollciea ud proceduna
aovemina d1clar11ioD1 of lnelialbWty.
iu.1• Def' ......
(a) Adequo» •ridua. lnforaatioG
1uffi.c:ieat to lilpport Iba nuoaabla
belief thet a pa,ticd1ar act ar orniuicm
h11 OCCIIINIIL
(b) Alfili• ,._ are afflllataa ol
eacb another if. dinclly or iadinctlJ,
either one c:oatrola or bu the powar to
control the other. or. • third pancm
(I) Debam,. r,ffit:ial. All otllaa1
aulhonRcl ta tm,-. debaraeat. nit
debanin, official ia eitbar:
(l)Theaanc,-.1.•
(2) All .nldal ......... l,J ...
•aencya..L
(a) n. Dtnctar, en.a.
Admlaratra ........... ..
audlnrt•edc'nlr ... .......
(II) /ndit:faat ........ .
c::rimial ~ Aa W W ... lr
otherlllillallF Id C -c:lluam,. _, 7 :, ....... t. sivm .. _._ __ , I 7 7
fll.it ,vNaa I f1I._
pu! ·s,._la...... C • Ft
prCJll'IU pwAUll lo•_......... ol
inel.a,&IJ uadlr ltabllal7, ...a1w
order. or replatar, lllllmdlJ, .-Im
Executin Order 12519 u4 ?la=
implementlna rc1 b-~
exd_.,. ,.,_...,1111 wit lacaa
Act and lta impl••ti• nplatiau.
the equal amplo,-t appoamll.J ldllJ
and U8Cllliva ordan. • Ille
enviroamental protectioD adl ud
executive arden. A penoa ~
wbera tba .s.tnmlDatioll of IDIL__IJ
dac:ta 1uclt ,._., allpbillJ II
cbo~~~~o1' Iha E~: r ~ partidpata •..., tbu w ••••
YI. CODvw --tn•actla&
not limited ts •· It lne1 -• al UJ ,._., 'J!IOCN'f" 1 AIJJ atalaal
or owne:::e lclaallty of 11118:wtl pro, rJ&li.-, awll Jmllcllal . amoaa I 7 .-ba:1. aband fadlllla p1 a _..,.111 _.... die p....a
and equipment. mamoa w al eov .... t ar a Ila• tlllaaal
employee,. or a buaiDMI mlitr 1Cffl11111D81ll or~
orsanized followiDI daa 1111p1naioa • autbodlJ 7a a putr. n. .... ...._
debument of a pencm wbicb bu die appala fna RCII pta ia ',X.
aa111e or aimllar man.....-t. ~ (k) ~ U... portica
owuenbip. ar priDdpa) emploJNI • of daa Li•t of~~ froa
the 1uspeoded. debund. lullalbla, ar Fatal JIIJoaaj;,rara••
I D.111 ,...._._ voluntarilr ucludad penoa. NonplfJOIIWIMII,,,.,... m;:z:• :l
(a, Executi,re Order 12511 pro,-idei (c) ...,_nq. Al17 uec:utiYa maiDtaiMd ud diatrtbalad bJ
that.' to the u:ent peratilted bf law. department. milita17 depa'11Dntar Ceaeral S.W.. Admllllatrali9 (CSA)
E:ucutive department, and apnciea derenae apnc:J or otber 8lfflC1 of die COl't•lalDa ... umae aad Ollaar
1hall participate in • pemmntwide exlClllin bruu:11. ••c:hadinl .. IAformadaa about,..... wllo uw
ay1tem ror nonpl'OClll'9iMllt debarment independent nplatorJ qand-. bND clebarncL ••pen fed.•
and aupeuia& A penon wllo 11 (d) Ciril judptMC. 1" ..,...._ ti wobmtutlJ adudld udar Eaadlw
debarred ar 111Spe11ded lhall be a civil actlOD br 111J coat of . C lad ()rd., 12541 ud dleaa ,.a.-._.
excluded from Federal ftundal and furt.dictln. whedl• ntarad bJ ....._ tbON wt. 1ia .. baall ......... ID be
nonr1nudal a11il1Um ud banelir. declalon. Httlemeat. 1tipulalloll. • lDellalblL
under Federal prGl"UII a..-1 ectiYiU... otherwi.N cnalinl I c:lvll liabilltr r. die (l)Nolioa. A wrta.. c 1 btloe
Debarment or 1uapeuloa of• wron,fu1 aCII camplalDld ot • a llnal NrYed bl ,.._ • NDt bJ Clll6'
participant In a Prosra• bJ ..,. •lfflCJ deterainatloa of 1iaJallltr mdar t111 maJI. rabrm racalpt ........... • 111
1hall ha•e aavemmentwida effect. Prosnm Praad Qftl 1•111• ltd ol eqlllvalat. ID die lut ..... :M •-.I
(b) TbeM ,.Ialiom implmHat 1• (n U.S.C. MDI-UI, a party, lta ldanldlad coanNL hi..-
aec:tioa 3 of Executive Order 1Z541 tnd (e) Connctioa A....._, ti for Nnfca f1I pna11. •-, .......
th• pidellnea promulptad br tbt Office CGDvictlml ol a ........ .._ bJ-, offlcn, dlrec:lar, owmr. • 111111 ,., •• or Mana....-• and Budatt mdar court of competent )llrtadlctloa. .i... ol tba part.J. Nollaa. If . « ••• th
1ectloo I of Iha lucatift OtMr br-en tend upon a vwdlcl • a plla. ,ball be«' d! .... llnw .._
(t) Praacrillml the....,... and tndudinl a plea of DOlo c=-taDdln. received bJ ... • !l 11 lwa.,.
actiYiliN dial.,. C"DVar..S bJ.. (f) ~banneat. All ac:tloa tum 'r a .,.. ...... SI' S •"1 ad ID .. Saiil
toftl'IIIHlltwlda .,..._ debatrq ollldal • aaad.aacla.,. addreN..,.. ltr Iba....,.
[2) Pra1c:riWal tba 10ftr11111Dtwida thtn replatlou to ududa a,... (m) ~ Mf ,._ •
criteria ud p•emmntwide minim-from partldpe-7a..,..... 1ul,ajta • ,r.+Gi!81 flll', _... • •
due proceu procedllNI that uda tramactlou. A,._'° 1:cdudad II raa10UW,.., be tt4«IIJ 11 ....
.. enc, 1ball •• "deba,n.t.• into a oonnd lnnerMa 1'11 .._
· alto LDdud.ae aa, .,..._ ... acll •
federal Rep.at• / Vol. S3. No. 102 / Thunday. May 21. 1• / Notices
!Jeh3lf or or i1 authorized to commit•
partiarant iD • covered tnnnctioa u
an agent or representative or another
partJc.ipanL
(n) /'enotL /uJy individual
corporalioa. partDenbiJ. uaocialioa. wut or ,ovemaw1t or l•al ulitJ.
however orsaniud. ••cept farwjp
acvernmenta or fonip pvemmental
eatiliea. publk IDtaDatiaall oraumationa. Ionian aovernmat
owaad (iD wbole • iD part)• aiatrolled
eatitlea. ad 1Dlitiel caaaiatilll wboUy
or partialy of fanip avvmnll or
foreiall,..•--el=lilil&
(o) ,,,.,,,.,......,,, "'1/w m.«r fl
Proof bJ IDfanaaliaa diet. coapand
with·tbat oppoaina iL luda to Ille
concluaiaa J,bat the fact al ia,-ia more
(u) Suspens1;,n. An aclion taken by a
1uspendin1 official in accordance with
theae re,wation1 that immediately
ucludn • penon from participatir,a in
covered tranqction1 for a temporary
period . pendiq completion or u
inveatiaation and 1uch leaal debarmenL
or Protram Fraud Civil Reanediea Act
procudina1 u may euue. A peraon ao
excluded ia "1uapended."
(v) Voluntary uc/uion or voluntarily
e,cc/ud«J. A 1tatua of nonparticipatioa
or limited participation iD covered
tranaac:tiOU Illumed bJ a .....
punuut to the tetma of a NttlemaL
(w) PA. P.Dwb .r ft 7 r:#n
A..-r~
(x}A,aq"-l 4 S 7 5 ~ ... .,. ...................... ,,.,.,..
probably Ina than AOL
(p) Principal. Oflicer. cll,ec1or. owner. I n.111 eo, .....
partner. by employea. or other penaa (•) 1heN replatiou apply to all
wilhia • partidpaal with primary penom wllo ban putic:ipaled. an
manqemeat or auperviaory CUIIWlltlJ partldpalbls or may
re1pon1ibWtiu: or a per90D wba baa • rea...W, be expectad ID putldpate In
critical inftuence on or 1ubetanli" truaactlona IIDder Federal
control over a covered tranaactian. nonproc:anmeal ,,.._. For parpoeee
whether or not employed br Ille or lbeN nplallou auc::ta lnDNctloaa
partidpanl Penon1 who hen • c:ntical will be ,.rernd to u "covered
inftueace oa or aubttuatin CGDtral over tramac:tiolll."
a covered tnuaclioa are: (1) Corer«l lranaldio& For pu,poMI
(1) Prilldpal iDveaU,1ton. of thae replatioaa, a cowencl
(Zllid aad ......-1..,....... _. tramactloa la a primary COYered
J• » tranaactlon or a lower tier coftNCl
(qJ PrapoMiJ. A aoUcitecl or uuolidted trauactiOIL Covered trauact1ou at any
bid. application. requnt. lnvUatloa lo ... · tier Died not IDvoln die lreul.er ol
con11der or 11milar commu.nlcaliaa bJ or Federal fUllda.
on behalf of a penoa aeekiQa ID (l) Prunary coNted IIWOCtio&
participall or lo receive a bead&. Except •• aotecl iD puqraplt (aXZ) of
direc:dy or IDdirec:dJ, iD or IIDdllr a thi8 IICtloa. a prilwJ cowered
covered truaactiOD. · trauactloa la aa, DOllpl'OCUffatal
(rJ R~1pond~nt. A peraon qainlt lranlactlon betwen u qeacy ud •
whom a debarment or 1u1pe111iOD action penoa. reprdleu el type. IDcladlns: ·
baa been initiated. · Fe.Dia. cooperatlYI ...........
(1) State. Any of the Sta tea of tu acholanbipl. fallowulp&. canltac:ta of
United Statn. the Di1bict of Columbia. u1ilt&Dcl. loau. lou ...,....._
the Commonwealth or Puerto Rico. anJ nbelclla. IDaanDm. paymala r..
territory or po11u1ion of Iba United apec:llled UN. donalloll qreemnta ud
Sta tea. or any a,enc:y of• Stata.· uy Giber DCmpfOCUl'ZE nt lranMCtlou
exclu1ive of lnatitutiODI of hiper betwem a Federal a,-c:J aacl • penoe.
education. boapital1. and unitl of local PrimuJ cov....S lrULNcliom abo
1ovemmenl A Slate inltrumatalltJ will lnchaclt lboM ~ apedaDJ
be considered part of the Stala deelpted bJ tbe U.S. Deparbual of
,ovemment lf it h•• a writtn Hollllnt ud Urba Denlopmat la
delennination from a State aovemment auc:ll qeac:y'a replatlou IOYffllml
that aucb Stile conaidera that debarmmt ud ...,...i-.
lmtrumentalitJ to be an •sency of the (U) Lower ti• conted lraMOClion. A
State ROffffllHllL lower tltr co.-.red tnuactlGD 18:
(tJ Su1,»ndi Ill ol/icia/. An official (A) AAy tnuac:lioD betwND a
authorized to impo11 1u1pen1ion. n, partldpual ud a penoa otber than a
1u1pendina oflldal 11 either: procurement caalract for pod, ar
{t) The apac:y bead. or Mrvlcn. nprdl111 of t,p9. ad,er •
(Z) An official deatsnated br tu primary conred lrULNctlca
a1enq bead. (BJ Any proc:uremeat caatnct for
(I) 'l1le Dlnctar, Cnllll 1ooda or aemc:a betwem • par1tciput
A•tnl .. la lltl I ..... arich peraoa. re,udl ... ol'tne.
audliorts.lii • J II J .-...L expected to equal or exceed the Federal
procurement 1mall purch.aH thrnbold
fi.xed at 10 U.S.C. Zl04(a) and 41 U.S.C.
Z53(aJ (currently 125.000) under 1
primary covered tranuction.
(CJ Any procurement contract for
(IOO(i1 or 1erYice1 betWNa • participant
an~ a penon uncicr e toYered
tranaaction. reaudln1 of a1DOUDI. under
wbich that penoa will bave a attical
inlluence on or aubetantive CDDbol over
that covered tranaaction. Suda penom
are:
(I) Principa) iavatiptan.
( ·1 PrOYidan of fedanl'.•-nquind
audit......,
(ZJ &mp,; ... TIie fDllowtltl
trwacdou an DOI a..and:
(l) 81.abat-, mtld-•11 ar
mandatory aw.,_ (bllt Dal aabtlar
awarda ~ r'w wWda aN DDt
th ..... 1v ........ ~,. ........
depm.i.d,.....,....... .,, .......
Cow.....a:
Pl)Dlnct ....... .....
~-pulic ...... .....
o,....au7'aaa.mtnuac#mewl•
fora11D1111•• ... .......
~ ..... ....
lnlamatloul...., ....... .....
IOYWflUDalll owaad (ID wWa or la put)
or controlled atltln. ntltiee CDDeialbla
wbollJ or putiallJ al r_....
IOftllUDDla a, fanfp ...........
entltlac ·
(W) Benetlll to an luclsift I m a
penonal ealldemeat wtdaoll l'lpl'd lo
the lndJYlduaJ"a pl'INllf fllp IHllibillty
(but badte nmJvad ID aa 7Ddlvtdual'a
bulnetl capadty.,. not ampted):
(iw) Pedenl emplo,-t
(AJP.daapa;wofdala ...........
no truaadloaa mdar BPA a11t•11C1e
prosnme an daan ad ID be pw at ID
qeacy ......................
diauten.
(V) 'Traauctlolil ,........ lo national
or~ •IMfll!IICIN •
dlautera:
(ri) lnddmtal benefltl derl..ct from
ordiaarJ IO"flUMDtal op,rallolle: ud
(vii) Olbar lnDNc:llolll ......
applicatlcm of.._ nplaSloal would
be probjbltad .., ....
(b) a.JollonMJp " olMr Ndlota nm 11Ct1oD detc:ribat a. .,,_ o1
tranaactlou to whlda • clebarmat ar
llllpeuioll unciet tbe repl•Slou will
applJ. Sl&bput I. 'UICI of ActloD."
I -42 a '"Debanaat ar _,_.1oa. •
Nia fartll tbe comeq,aaDCN fl a
debumlDt or tuepaelaa 1'w
CODNqlleDCII would abtala aaJr witla
reapect lo partldpute ud priadpala la
the covered tnuactloae and adl¥ttlat dftaibed iD I .....32.UCl(a). Sectioat -!!...R.!~zs.., "'Scape of deNl'IDID"" and ...12.uo. "Scope of 1u,patloli. • fOYffll
the extent to wlaJda a apecdc ·
participant or or,lllllsalfoaal elemenla al
Federal Repater / Vol. ~. No . lOZ / ThW"lday . May 2a. 1911 / Notic:n
1 partmpant would be automatically
included within• debarment or
suspens ion action. and the cond itions
under which affiliates or penons
associated with a participant D"lay also
be bro111ht Wlthin the scope or the
action.
(c) Re/ouonship to Fed~ra/
procu~m~nl acti vitie1. Debarment and
su1pen1ion of Federal procurement
contractors and 1ubcontracton under
Federal procurement contracll are
covered by the Federal Acqui1ition
ResuJation (FAR). ta CFR Subpar1 U .
lb) Loser tier covend lronsact ioM.
Except lo the extent prohibited by law.
per,ons who have been deban-ed or
1uspended 1hall be excluded from
participalina as e ithe r pamcipanta or
princ ipal, Ul all lower tier covered
tranaaclions (see 13...L.llO(a){l)(ii)) for
the period or their debument or
1u1pen1ion.
(c) Exceptions. Debarment or
1u1pen1ion does not affect a person's
eligibility for:
(1) Statutory uitillementa or
mandatory award, (but not subtier ·
f u. 111 ...-cy. award, thenunder which ere not
(a) In order to prorect tbe public themaelvea mandatory). includin,
U1tere1t. ii i1 the policy of tbe Federal depo1iled funds inlured by the Federal
Government to conduct bueine11 only Government:
with re1pon1ible pel"IORI. Debarment (2) Direct award, to foreip
and 1u1pen1ion an di1cretionary 1ovemment1 or public intemational
actiona that. taken In ac:cordaac:e with 0111n.ization1. or transaction, with
Executive Ordff tZMI and th... foreip aovemmenta or foreip
resu}ation1. are appropriate meu, to 1ovemmental entitie1. public
impln.ent thi1 policy. intemationel 0111n.izalion1. foreip
(b) Debarment and auapeuion are 1ovemment owned (in whole or in part)
1erioua action• wbicb ,ball be 111ed only or co.n~lled entitiet, ind entitin
ill the public intere1t ud for the Federal cons11bn, wholly or partially of foreip
Government'• protection and not for 1ove~en11 or foreip aovemmental
purpou1 of pwu1hmenL Apnciea may enlitin:
impoM debarment or 1111peuion for the (3) Benefit, to an lndMdaal aa a
caUM1 ud iD accorduc:e witb tbe penonal entitlement without nsard to
procedlll'H Nt fortb iD tbae replationa. the indMduara praent reapomlbllitJ'
(c) When more than one qenc:J bu (but beneftll received ID u lndMchaal'1
an intere,t in tbe proposed debarment or bUlinna capadty an not excepted~
1u1penaion of a penon. conaideration (4) Federal employment
aball be liven to dealpalinl one 11eney (5) Tranaactiom pumwat to utlonal
aa the lead qenc:, for maldna tbe or aaency-rec:opized emerpaci• ar
deci1ion. Apndn are encouraaed 10 di1Hten:
partic ipate in I particular covered
transaction upon a written
detennination by the a,ency bead or 1111
•uthonzed desilllN itattna th
reason(•) for devi•lina from the
Pre1idential policy ntabU1hed by
~ecutive Order lZNl and I la ., of
th.a nale . However, ln ec:cordanol witb
the President', slated intention In tbe
Executive Order, exceptioaa aball be
. ,ranted only lnfrequendy. !xcepti-
1hall be reported in ac:cordaace witla
1.1.Lsm(a).
(a) Tbe Director. Grull
Adminiatratioa Dlvilioa.11 the a!&ciaJ
authorized to pat axcaplioaa.
I ant ConllnuallOn o1...,...
tnnaec••& •
(a) NotwitbltandiQs tbe debumeDt.
1uepen1ion. determinatioa of
ineliaibility, or voluntary exdaaloa of
any peraon by an aaency, a,etldu and
participant, maJ continue cowaad
tranaactiana in exiatence at tile llme Ille
person waa debUTtd, aupmdad,
decland ineliaible. or YoluntaldJ
excluded. A decition u to tile typa of
termination ecllon. if any, lo be.._
abould be made oaly altar dwcc4k
review lo en,ure ~ propriety of Ille
propoaed actloa.
(b) Afencin and partldpull MIIII
not nnew or extend CDWll'8II · .
tramac:tiona (other than DOOllt._
extenaion,) witb any,.,... • II
debarred, IUlpllldecl. ~ •
YOlunlartly exchadacl. umpt • pauof I f
inl~I.
eatabliab metboda and procedure• for (i) For the purpoMI of dlil panpap'h.
coordinatina their debarment or no tranuctlunl under IPA alliatance I~ Palin 11...,. II
1u1penaion actiona. prosrama an deemed qeac:y-ncoplzed ,....111•••
(d) Wblle Put 3Z don not apply to emerpncin or diu,..._ Bx.cnt u permitted_...,~·
direct Fed....t procuNIDfllt activitiea. (8) lncidenlal beoeftt9 dertved from or I U m of daaaa I I kM a
which are aoverned by tbe Federal ordinary aovemmenlal openitioaa: and pvudput ....U not bowlltlJ •
Acqui1ition Replatiom (PAil) al ca arR (7) Otber tranaactlon, wben tbe bualneN udlr 1 ...... • de
Subput u. It ii BPA'a polJc:J lo applicaUon of theae rquladon, would witb a,._ wlao II ........ •
intepata itl aclmlni.tbatlaa of theH two be prohJblted by law. 1u,peaded. • wt* a,... ... II
com~..,.,_. ud I lUOI In 1 . ineliaible for or YohmlariJJ excluded
IUlpeDIIOD DfOll'Ul8-I •••• ,--. . ftom tbat COYeNd lnnaactioa. Violalioa
a.. ........ , .... _
(a) Primary cov.rwJ traMoctiou.
Except lo the extent prob!bftad by law
pel"IODI who are debarred or au,pended
thall be excluded from prlmalJ COYered
tranHcttou H either partk:lputa or
prindpala duovpout the euaatm
branda of the Federal CoYfflUNDt for
tbe period of tbeir debarment •
1u1penalon. Accordfnsly, no qency
1haU ec!er into primary covered
traruactiou witb such debarnd or
IUlpended perlODI durfnf IUQ period, •3cej' ~· permitted punuant to I s.
. f~ who art ineliathle, aa dellned of tbi1 rw1tric:tioa may f'Nlllt ill
111 cord 105(1). an exdaded ID di111lowance of co1ta, umu1-t or
ac ance wttb lhe applicable termiDatioll of award. iaauaace of a ,1o
1tatutory, execuUn ordff, or replatory wen ord•. debatmma.L.car ..,~iui P
authority. other nmedJas. u _app,ajillli. A oa. or
I JU1t v......, n:ct 17 putic:iput may rtly upoa Ille
n.. certiftcaliaa ol a proapectiya ::=1.c:•
nnona wbo a~v~tarr In a low tier coftNCI trwn
exd111lon1 ander I uw ii and 111 priDdpal, Mc:doa I
exduded ID accordanc:a wttb Ille lama aupnded, lneliaible an not debarnd.
of their Mttlementa. FJ'A tlbalL ud excluded from tlM co~~
parlidpanll may, contact die art,IDal (IN Appudix I). ualeaa It bowl tbat
~L~on ,~CJ ta a1eertaba die ateat of the cartiJlcaticm ii lffllDIOIII. AD ·-
..,.. exc,-1-. liH tbe burdea of proof daat nda --
1 SUfl lllllfll ... ,,:, t • p-:dput did mowta,IJ do b ........
EPA may srut an a.c:aptla wt •• a ,.,_,
pnmJtttn, e debaff'ed. auapended, •
voluntarily ~xduded penoa ID
Federal Repater / Vol. ~. No. 102 / Thunday. May 21. 1911 / Noticn
Subpar1 C-o.tJarment
I lZ-300 Genera
The debarrins official may debar 1
penon for any of the causes in §..32.305.
ua"'I procedures e1tebli1bed 111
I I ~310 throu,b ~.314 . The
existence of a cauee for debarment.
however. doee not nece111&1iJy require
that the perHD be debaznd; the
aeriou.anes, of the penon ·, act, ar
orni11ion1 aad any mitiaa tin, factors
1h11l be coiuidered in makina any
debarment deci1ion.
IUW C....lorde..,,,_,L
Debarment may be impo1ed in
accordance with the provi1ion1 of
II .J 2 .300 throu1h ..t.A.314 for:
(a) Conviction of or civil fudameat for:
.(1) Commi11ion of fraud or a criminal
offerue in coMcction witb obtaining.
allemptin, to obtain. or performifts a
public or prin t~ a,reement or
tran11ction;
(Z) Violation of Federal or State
antitruat 1tatute1. includin, those
protaibina price fixins between
competiton. alJocation of cuatomera
between competiton. and bid rigina:
(3) Commisalon of embenlement.
theft. fo'1trJ, bribery, falatficatioa or
deatnaction of rwcordt. malt.ins falH
1tatemeeta. receiviJal a&olu property,
makiq falH c:laima, or obatrw:tioa of
juatice; or
(4) Commiaaloa af any otlaer offenae
indicatina a lade of buaineN iDtepity or
buaiDeu bouety that Nriollll1 and
directly aff ecta IJae preaaal
rea~ihility of a peNCIIL
(b) Violation of I.be tenu of a public
qrNIUDl CII' trannctiOD 10 NriOUI aa
lo affect the iatqrlty of u a,enq
Pl'Oll'UL 1uc:h u:
(1) A willful failun lo perform iD
accorduct with tha ... fll om •
more public qreemma1a ar lNIIMdiam:
(ZJ A WaiGr7 fll fuluN lo pedorw ar ol
UIINtiaf&dary pafarmuca of me ar
more public qrNmeota or tramactiona;
or
(3) A willfw ~;oJation of a 1tatutory or
resuutory provilion or requiranent
1ppljcable to a publ ic qrNmmt or
tranaaclic&
(c) Any of the followinl cauaea:
(1) A noaprocuremeat deb&naent b1
any Federal qeacy tabn before
October I . lNI. tha effective data of
these repl1tiona. ar a pl'OCUl9llleftl
debennent by any Federal qenq l.&Jteo
pW'luaDt ID .. CFR Subpart M;
(ZJ Knowq!J doiq buainua with 1
debarred. a111peoded. ineu,d,le. ar
voluntarily excluded penoa. iD
conrection with a covered trauact.ion. •;;t' .. permitted in I ~ 215 or
I .mt
(31 FaJure to pay a •inale aubetantiaJ
debt. or • number or ou11tandina debt,
(inclumn, diaallowed 00111 and
ov'!rpayment1. but nol includina 1um1
owed the Federal Covenunent under the
Internal Revenue Code) owed to 1ay
Federal aaeacy or imtnameatality.
provided the debt i1 11ncontntad by tbe
debtor or. if contealed. provided that the
debtof I lepl and admini1trative
remediea have been exh1u1ted: or
(41 Violation of a material pl'Ovi1ion of
a voluntary excluaion asreement entered
into under I U. .315 or of any
aettlement or a debarment or 1u1pension
action.
(d i Any other cauae of ao 1eriou1 nr
compellins a nature that It affect, thP
preaent reaponaibility of I pereon.
IJU11 ~
EPA 1haU procee1 debarment
a~tiona H Wonnally u pnicticable.
con111tent with the principlea of
fundamental faime11. uaina the
p!'OC.~dure1 in 11 ~ .311 thl'ouab
. ..I&.314.
I az.,n 1m .. aaat1on and ,.,wn&.
lnformation concefflina tbe exiatence
o! a aUN for debanaeat &am aay
source aball be promptly reported.
i..; ,eatipted. and rdenwd. wbea
ar,propriate. ID the Jebaniaf offidaJ for
conaldentioa. Alter conaidenUoa. the
debarrina ofllcial may i11ue a aotice of
propoaed debumeaL
f JZ.Jff ........... DSHIII 1 tmnent.
A debameat p,oneedl'II maD ba
lniti1l.ld bJ aoti.ca lo dae l'MpODCMDl
aclvilills
(•)That debumat la beiDt
comldtred:
(b) Of .......... for ... p,opoaed
~ebarmaat in tanu au!llaaa to put Iba
re1pcadaat • utlce of Iba coadud or
tr,.uac:tiaa(aJ upan wbiQ ii ii baaect
(c) Of daa callN{aJ ral1ad upaa 1111.dar
I~ .a lot ,rnpoei"I debanMat
(d) Of tb~ proviaiou of I .ll.311
tnrouah I ~ .314. and any other
OA "9'oc:edurea. ii applicable.
1overnin1 debanaeat deci•lo~
and
!e) or the potential effect or a
debanneaL ·
t u.,q Oppo,1antJ ..........
IWl#Hld 1111 .....
(a) Submiaion ill opposition. Witb.in
30 day, aftet receipt of tbe notice of
rropoatd debarmaat. the reapondeid
may 1ubm.lt. In penon. ID wrftina, or
throuah a Np,ueatative. iaformation
and &J'IUll*lt iD oppoaiboa lo I.be
propo1ed dabanaenl
. (1) U tbe rapondent dnire11 bearinl,
it •hall aublllit I Written requeat to the
de~•rrina ollicial within the »day
penod foUowinl receipt of the notice of
propoaed debarment.
(b) Additional~ a., IO
dispu&ed IIIOa.no/ J,,t:u. (1) la ec:liaM
not ba..a upoa a OIIIIViclioD • dvil
ludameat. ii 1M debanq c4c:ial ada
tut the reapcedeal'1 •bmi.Mioa ill
oppoaltion raiae1 a pnwne diapute owr
facta malertal lo Ille propoaed
debarment. re1~dent(1) 1hi1U be
afforded aa ~tr ID appear wida
• repreaenta.ti9' llltaait docum•IU'J
evidnca. preeut wuu ... 1. ud
confrom aaJ wi .... a die aaenc:r
preNnll.
(Z) A tramc:libed rwmrd of UJ
additional pronaedlnp aball be .. eta
available at coat ID the napoadmL upon
reque1t. unleN tbe re1pond1ot aad tbe
apnCJ. by mllblal qrwemnL waive tbe
reqllirwmaat far a tramc:ripL
I 31.JM Ddla ,t.• ofllclWt d9cll!I• ..
(a) No additional Ptvt:ftdini•
n~uary. la ICtiou baaed upon I
conviction or civil tuclpNmt. or iD wbich
there ia no 1enuine dJ1put1 over mat.rial
fact,, die debantna offldaJ 1haU make a
deci1ion on the baal1 of aD the
infonnatioa in the acbaial,tntin record.
includina any ftbllliaioa made bJ the
reepondeat. 1be dedaiaa aD be made
within a da,a·aft• NOlllpt of...,
iafonnatioa and U'IUJbftd •bautted by
the re1ponclftt. llmftl the debanlaa
official extl'Dda dlia period for ,ood
CIUM,
(b) AdditiOAOI ~ 11«.uary.
(1) iD actiona ID wbicb acldltioaal
proceediap are DeeaMAIJ lo determine
di1puled malarial facta. written ftndlnp
of fact abaD be prepand. n. debaniaf
ofBdaJ lbaJI ba• lla.t daclaloa oa die
facta u fomd. •Iba 'Wida u,
iDformatlaD ud ...-1 nbmlttad by
the reapondat _. -, odllr
lnform.adan in die a+-!el11nt1Ya rwconl
(~ n. dabmfM ·-.::.--diapalall ma...r t:.m lo
olBcW far,, ..... ., ... 1'a
debunae ama.1.., .... ., ... =: .............. ....
---,dt .......... ...
arbitnrJ a.ad caprtdoaa or cleut,.
til'W
(SJ TIie deburtal ot!ldal't .tedalaa
abaJI bl made after Ille caaduloD of die
proceediDp with N-,.ct to dilpated
facta.
(c) (t) Slandortl of proof. ID -
debarmaal ac:tloa. die cautt for
debaraal mut be •tabllallad bt' a
prepoaderucl of die ..tdncl. WbeN
the propoeed debarment It bated llpGD a
convtctlan or dv11 tudlmat. dNt
1tudard 1ball bl deemad lo .. VI hem
meL
Federal Rep1ler / Vol. 53. No. lOZ / llnanday. May 21. 1• / Nolic:n (2) Burdt!n of proof The burden or proof i1 on die 11ency propo1tna debarment ( d) Nati~ of deborri111 officio/', d«i1ion. (1) Uthe debarrin, official decidea to lmpoae debannenL the reapondenl aball be liven prompt notice: (i) Rererrlna to the notice of propoeed debarment (ii) Specifytni the reHona for debarment (iii) Staq the period of debarment. includiaa effective da tea; ud (iv) Aclviaa.a, that the debumnt la effective for covered truuctiou thtoupout the executive bnncb of tba Federal CovtnuDtDl uale11 an apnc:y head or an authorised duiptt make1 the determination rerernd to ill 1.!Lzts. (2) II th• deburins offldal decidt1 not lo impoN debumenL the re,pondeDt 1h1U be Sina prompt notice of that decialoa. A deciaion not lo lmpoae debument 1b1U be without prejudice lo 1 1ubaequen1 impoaition of debannent by any olher 11ency. I iu11 lt....-...nt anc1 volunlarJ HauaolL (a) Wben in the beat inter.at of the Government. EPA may, 11 any time, aeltle I debument or 1u1peuion actioa.. (bJ lf a partidpul and the 1pncy a,ree to a vohantary e:xduaion of the participant. aucb voluntary e:xduaioa ,hall bt entered on the Nonproc:uremenl 1.ial (aee Subpart EJ. (1) The debanina and 1a1penclin1 official 11 tbe o!licial autbori&ed to aettle debarment or auapen1ion actiont. f 3U20 '-tod of d1blrment.. (a) Debarment 1baU be for a period commen,urate with the 1erlou1ne11 of the c:auaea(1). Gener.Uy. a debarment abould not a:xCNCI three yell'I, When circwllltaDcu warrant. • loa,er period of debarmnt may bt lmpoaecl. II a 1uapemlon precedea a debarment. die 1111peuion period 1ball bt conaidend In d1terminlua tbe debarment period. (b) The debcrriaa offtdaJ may extend an exi•tina debanDeat far an addftfonal period. ii dlat ofl!del detmlllnn dlat an exteuloa la D1CN1UJ to protect Iba pubUc baterul Howffer. • debummt may not bl extended 1olely on tb9 but, of the r,cta and c:ircumltanc:n upoa wbicb the initial debarment action w11 baaed. U debarment for an additional period la determined to be ntcnaary, the procedUNt of It .ll:...311 ~ H.n, ,ball be followed to extend Iba debarmeaL requHt ahaU be in writinc and aupported by documentation. 11M debamn, official may p-ant auch a requeat for re11ona includinl, but not limited to: (1) Newly diacovered material evidence: (Z) Rtvenal of the conviction or civil judpaant upoa wluch the debarment wa, bued: (3) Bou Ilda dwap ill ownenlup or manapmeat (4) Elim.blatioa of other caUN for whicb the deberment wa1 impoNd: or (5) Other realODa the debantaa official deem appropriala. tu.Jal 1oo,eet,1ll111N& (•) Seo,-ill ,.,,.,o1. (1) I>ebumat of a penoa under tbne replatlaal conatitutH debarmmt of all Ila dMalona and other 011umatiooal elelMDII from other participant, if tbt conduct occ:uned for or on behalf of the joint venture. ,rant punuaal lo a JolDI application. or aimilu arnapmellt may bt imputed lo other partidputt If Iba conduct oc:c:uned for or oa behalf of tile joi.Dt Yentun, ll'Ut panaut to I jomt application. or atmllar arrupmemt or with the lmowledp. approwal. or acqufncence of tb ... putk:lpatt. Ac:aptanc:a of the benellta clerlwcl from the conduct aball be evldenca of aada luaowledp, appronl. or ac:quieaceDce. I IZ..330 Rn a tll ... _ Any party lo the adioa .., petition the debarrina official to recm1lder • debarment detentaiaatioa b aJleaad em,a of fact or law. 'n. petftim far reconalderation muat be ID writiaa and flied wifbla 10 calendar daya frota tbe date of the party'• receipt of tba determinatioa. all covered trauactiom. UDleN tbe debarment dtci,ioa la limited by lta term.a to one or mon 1pec:ilka11J Identified iDdiYiduala. dMaioaa or other I n.ms A,lpeal. orsanizational elementa or to aped8c: (a) Tbe debarment determlatiea type• or tranaactioal. wider I SU14 ,ball be BDaL Hownar. (2) The debarment action ma1 lndude any party to the ectioD may Nq9Nt tbe any 1fl'Wat1 of tbe partidpaat tbat la Director, Otllm of Adalalatratka (OA 1pecillcally named ud 'pVID DOticl of Dinctor). to nriew Iba ftndt .. of llie the propoHd debarment aad ID debantna offldal by IWaa a Nq11Nt oppo, ';, ra1poad (IN ti ll .. Stt with Iba 0A Direc:lor witbm ID wendu throu,b •). day, of tbe party'• receipt ol lbe · (b) /znputuw t:anduct. For purpoMI of debumaat determlDalla. or Ila determiD.lna the ICOpe of debanDIDt. recomldentioa. The requeet mlllt be ia conduct may be Impaled u foDowa: writinl and Mt forth tbe apecUlc: l'NIGDa (1) Conduct ilnpulM/ lo parficipartt. why nllef abcMald be puled. The fraudulent. atmlnal or otblr (b) A review under tlda MClloa aball aerioualy Improper conduct of aaJ be at the dilCl'ltion of tbe OA Diractar. officer. director. abanbolder, partNr, lf a review la panted. the debantna employee, or other IDdivfdual allOdatecl official may alay the effectlft date of a with • putk:fpant may be Imputed to tbe debarment ardar pendlJII rnolalklll of participant when the conduct oc:cunad the appeal II a debummt II ata,ed. tbe In COMtction with the ind!Yldual'1 ,a.y ahaU be automatically lifted If dae performance of duti .. for or OD behalf of OA Dlrec:tor af11rma the debaraat. the partidpant. or with .Iba putldpurs (c) 11at ravfew abaD be buecl aolelr knowledp. approval. or acq,derm. upon the record. n.. OA DINc:tar may e-c=• :=.:.--...... aet 11lcle a detarmlmtfGa maJy If It la nt found to be ubitruy, caprtdoua. ud be mdenca of auda ~ abUN of cliac:ntfon. or beatd apcm a appronJ. or 1cqulttct11CL d f la (Z) Condln:I impolMI lo indh1duoJ6 eu error o w. ouocialMJ wftJ, partic/pollt. n. (d) 1'11e OA Dinctor'1 ~ fraudulent. c:rtmilLIL or other......, detenmaatlon abaU be la wlftlal -Improper CODdact of a putldpat -, m1Ued to aD partla be impaled to UlJ otlcm, cllr..clllr~ (e) A detarmlattloa IIDder I SUH• 1barebolder, pu1ner, -,ao,.. • ott. • review mder 11111 aectlaa aball .c be lnclividual 11aodated wttla Ilia . nbject to • dlapate or• bid ...,.... participant wbo putldpated la. bew of. under Puu 30. n or 33 of tldl Cit bad NIIOD to how of·tlle aubcbapter. partidpant'1 c:oacluc:t. (c) Tbt rnpoadnt may requeat tbe deburint ollldal to nvtne 1111 debarment dedalon or to. reduce tbe period or acope .of debarmnl Suda a (3) Conduct of OM portk/ptall lrnput.d lo othu pa.rticipan• Ill • joitd ,..ntur,, The hudulat. aialDal. • other Nrioualy Improper coadact o1-partldput ID a Joint ftllhln. put p1111uut to • Joiat appUcallcl& • -atmJJar lffUltmtnt may be lmputad lo
Federal Repter / Vol. 53 . No . 102 / Thunday. May 26. 19M / Noticn
( c) Dt1cribina any such in-esulanties
in tl!rml 1ufficieat to put the re1pondent
i n . .oo o.n.a&. on notice w i thout diaclo1in1 the Federal
(1) The 1u1pend.inl offldal may Government's evidence:
1u1pend a pel'90D for uay of the cauae1 (d) Of the cause(•) relied upon under
in I ~405 ua~~-I .3l...405 for impoeina 1u1pen1ion:
11tabli1bed la H 410 tbroup (e) That the 1u1pen1ioa it for 1
.a1.2..413. temporary period pendiq the
(b) Supeaaioa i.l a aerioUI ac:tfoa to completion of en inve1ttaation or
be impoNd oaly wlaea: ensw.na le1al. debarment. or flrosram
(1) There 1xi1t1 adequate mde11ee of Fraud Civil Remediea Act proceedinis;
oae or more of the cauaea NI out iD 10 Of th~viaions of I ~411 I i,lLa, and throuth I 413 and any other
(2) Immediate action la DIICHMIJ to EPA proceduna. if applicable.
protect the public inweaL 1ovem1n1 1u1pen1ion deci1ionmaltin,:
(c) la a11e111Da the adequacy of thi and
evidence. the qeacy abowd c:ouidcr (1) Of the effect of the 1u1pen1ion.
bow mucb inlormalioa i• avallabla, bow t H.'11 Opportunity to CIOftlNI
credible ii l1 pven tba circlllllltucN. ... '1 1 ,..... ..
whether or not important all11atiou are (a) Submi••ion in oppo6ition. Within
corroborated. and wbat blfenDCN cu 30 day, after receipt of the notice of
l'HtoDably be draWD U a NIWL 11111 1u1pen1ion. the re1pondeat may 1ubmit.
11111~meat 1bould iadude aa in person. in writina, or tbrouah a
exammatioa of ~ulc documeatl ,udi a• representative. information and
,raata.. ~perativ1 .... menta. loaa arsument in oppoaition to the
authonzationa. and coatracta. auipenaion.
I 22 • .os c-tor• r I rw•• (1) If the reapondent dnlrea a hearina,
(a) Su,penaloa may be tmpoaed ID It shall aubmit a written requnt to the
accordance with tbt l':,Yiaiaa8 of autpendina offldal within tbe 30-day
11 JIL40D tbroup 413 apaa period followtnc niceipt of the DOtk:e of
adequate mdeDcr. au,s,enaian.
(1) To aupect th, commllllon of u (bJ Aat!itionol pl'OCHdi111• a, to
olfeDN U.tecl ID I 32. d(a): or disput«J maten·a1 foct.. (l) If the
(Z) 1'1sat a came for d1bumeat UDdar 1u1pendina official findl that the
I .,~ 305 may exllL re1pondent'1 aubmi11lon in oppo1ition
(b) ladic:tmnt abaD coutltuta rai1n • 1enuine di1pute over (acta
1dequat1 ntdenca for pu,poen of material to the auapeuion.
1uapeD1iOD ac:tkml. re1poadent(1) 1baU be .afforded an
opportunity to appear witb a
repreaentatiYe, 1u bmit documenwy
evidence. preaent wttnnMa. ud
confront any wttnea1 the qenc:,
preHDII. unltU:
tn.c,o ,.. .....
(a) lnn1fi6otlon and~
IDformath:m CODCll'DIDI die alllaDOI of
a caaae far IUIDIDlloa fram aY 1aUC11
1hall be promptly reporte.i. lnv11U,ated.
and rafemd. when appropriate. to the
1u1pendina official for conaidera~oa.
After conaideration. the 1u1pendina
official may iuue a DOtice of
Ju1penaioa.
(b) D«i,ionmokin, pro,:rtn. EPA
. 1hall proc:e11 1u1penaion acttoaa aa
informally•• practicable, comiatent
with principln of fwldaintntal falmeea.
u1in1 the procedures in I .!2:..411
throqb I 3L411 ·
f2~C11 Noloeof• IJI .....
When a mpoadent II •uaP!nded.
notice ,hall immediatelJ be 11ven:
(a) That 1u1peoaioa baa been
imposed:
(b) That the ,uapenaion ii baaed on an
indictment. conviction. or other
adequate evidence that lb• respondent
h11 coaunitted iffelularitln NriOUllJ
renectina on the propriety of fl&r1her
Federal Government dealinl• with the
retpondent:
(I) 1be action la baaed oa ua
indictment. conviction or dvd judpent.
or
(U) A determination ii made. OD the
ba1i1 of Department of Jutic:e advice.
that the 1ubatantial inten111 of the
Federal Covemment In pendina or
coatempla ted lqal proc:eedinp baNd
on the Mme facte aa the SU1penaion
would be prejudiced.
(2) A tramc:ribed NCOrd of any
additional proceedinp aball be
prepared and made anilable at COIi to
the reapondeat. upon reqant. UDlna the
reapondent and the qeac:y, by mutual
1,reement. waive the requlremeat for a
tranac:ripl
fll..41a • IPI ........... iau111111.
n, 1uapendina offldal may modify or
terminate the aupeuioa (for example.
HI I .1..321D(c) for reuau r..
redudJII the period or ecope ol
~barment) or may lean it iD f~
However.• deci1ion to modify or
lenninate the 1u1pen1ion ,hall be
without prejudice to the 1ub11quent
imposition of 1u1pen1ion by any other
1gency or debannent by any apncy.
The deci1ion shall be rendered in
accordance with the followina
provi1ion1:
(a ) No additional proceedi1'6'
necessary. In actions: baaed on ua
indictment. conviction. or civil Judpaent
in which there i1 no pnuine dilpute
over material facts; or in whic:b
additional proceedina• to determine
disputed material facts have been
denied on the ba1i1 of Department of
Justice advice. the 1u1pendina o fficial
,hall make a deci1ion on the baaia of all
the information in the adminiatrative
record. includina any 1ubmi1aion made
by the respondent 1be decision shall be
made within .S days after receipt of any
information and arpment 1ubmitted by
the re·apondent. unlea1 the 1uapendina
official extends this period for ,ood
cauae .
(b) Additional procttdi1111 n~s,ary.
(1) In actiona in which additional
proceedinp are nec:e11ary to determine
di1putad material facta. written ftndina•
of fact shall be prepared. Tbe
1uapendina c fficial ,hall base the
deci1ion on tbe facts H found. toaether
with any information and upment
submitted by the re1pondeat and any
other information in the administrative
record.
(Z) ne aupendina offldal mar refer
matten involvinl disputed .. terial
fact, to anotber official for bdlnp of
fact. The au1peodint ollldal may nject
any 1ucb ftndinp. iD whole or iD part.
only after 1pecificaUy determlni.al them
to be orbitruy or capricioua or dearly
erroneou1,
(c) Notice of 1u1,-ttt/bw officio/°•
dtJCilion. Prompt wrfttell DOliCI of the
1uapeadinl olld&I'• dec:ialoa shall be
Hftt to the reapondeDL
13Utl .......... t .....
(a) SupenaiOD tba1I be for a
temponry period pead1q lbe
completion of u iDvaliplloa or
euulna leaaL debannent. or Pratraa
Fraud Clvd Remedia Act procee4t•
Wilna termimted aooaar by 11M
aupendlna ollc:lal or u· provided ID
puqrapb (b) of this NCtloL
(b) Ulepl or adminillrathw
procaed1Dja are not laltialld wtdaiD 12
moatb.a after Iba data of the ,uapeula
nollca. the 1uapemloa ahall be
terminated UDleaa u A.Niatut Attonwr
C.naral or UDlted Stataa AttarDIF
nquNta Ill utealloD ID wrllllll, 111
whlda cue It maJ be 1Jdarchd far •
aclditiaul ab _.111a.111 DO aVIDl ~ a
Federal Resaattr / Vol. 53. No. 102 / Thunday. May 28. 1988 / Noticn auspension extend beyond l8 month1. unleH auch proceedini• have been irutialed within that period. fc) The ,u,pendina official shall notify the Department of Justice of an impending tennination of a suspension. al leul 30 day• before the 12-month period expirea. to live that Dep.,-tment an opportunity to request an extemion. f 32.'20 Scope of II Ip I flllloll. The 1cope of a 1uspen1ion ia tbe ,ame 11 the ,cope of a debarment {aee I ~3ZS). except that the procedure, of II ~410 throu,h -i1Lcu shall be used in impo•ina a auapenaion. I U.425 Recoi I II •a. Arty party to the action ma:, petitiori the 1u1pendins official to recoaaider .t 1u1penaion determin.don for allepd em>r1 of fact or law. The petition for reconai~eratioa muat be la writina ud filed within 10 calendudaya from the date of the party'• NCeipt of the 1uspen1ion determination. I 32.430 A,lpaal. (a) The nspension dete,rmiDation under I ~2.413 aball be final. Howner. any party to thl! actioa may requeat tbe Director. Office of Admlni1tralioa (OA Director). to review the &ndiap or die 1u1penclina official by lilina a requeat with the OA Director willia 30 c:.landar day, of the puty'a nc:.eipt of the 1u1pemion determiDatiaa. or ill reconaideration. 'l1le nquat mut be bl writin, and aet forth the 1pecific naaons why relief 1boald be sranted. (b) A review under thla aecti• ahall be at the diac:retioa of the OA Director. If a review ii puled. the aupeDdiq official may 1ta1 the effec:tiw data of a 1u1pension order peadin, reeohatioa of appeal. U • 1uapenalon :a atayed. tbe . 1t1y ,hall be automatically lifted if the OA Director affinN the au,pemiaa. (c) The review 1ltaD be bued tole11 upon tbe record. n.. OA DINctor may aet aaide a determmatioll oaJy if Jt la found to be arbitru)', capridoaa. u abuM of diaaetioa. or baaed apoa a clear error of law. (d) The OA Dlrector'1 aubteqaat determination ,ball be in writi.na ud mailed to .0 partiee. (e) A determination under I SZ.413 or a review under thi1 aec:tlon abaD JIOt be 1ubject to a diapute or a bid protea under Partl 30. 31, or 33 of tlm 1ubchapter. · Subpart E-RNPOl\llbll!Un of GSA. Agency and Partk:tpanta I 32.500 GSA responalblllle& (a) In accordance with the 0MB guidelines. GSA shall compile. maintain. and distribute a liat of all peraon, who have been debarred. 1u1pended. or voluntarily excluded by apncies under Executive Order 12549 and theae regulationa. and thoae wbo have been determined to be ineliajblL (b) At a minimum. lhi1 lilt 1ball indicate: (t) The name, and addreaaea of all debarred. au1pended, ineliaible. and voluntarily excluded peraona. in alphabetical order. with c:roaa-reference1 when more than one name ia involved in a 1inl)e actioa; (2) The type of action; (3) The cause for the action: (4) The ,cope of the actioa: (5) Any termination date for each liltina: and (8) 'The 11ency and name I.Dd telephone number or the qency point or contact for the action. tn.• DA ,, .. a IYlw. (a) 'lbe qency aball provide CSA with current information concermn, debumenta. 1u1penaicm. determina Uou of inelisiblli!y, &Dd volu.ntary exclu1ion1 it baa taken. Until February ti. 19119. the apncy aball a)ao pnrvide CSA and 0MB with information c:oncfflW11 all tranaactiona In which EPA baa ,ranted uceptlom ander I a ..Z ns pmniftina partidpation -~a. au1pended. or nhmtari!y excluded peraona. (b) UnJe11 an aJtematfYe 1chedule i1 a,reed to bf CSA. the-11ency lhaU adYiae CSA of die Information aet forth in I 3 2. 9DO(b) and of the nc:eptiona Fanted wuler I 3 2. Z't5 within ftw · wortdnt da)'I after ~ 1uc:h actiona. (c) n, qeDCJ aball direct lnqulrin conce~ bated peraona to the apncy tha I took t1ae ac:tloll. (d) A.-,,::, offlc:iala allaU claec:k tbe Noapl'UClilt mt Ult before enterma covered lrulac:tioaa to detarmme whether I puticipat ID a primuJ tranaaction ii debaned. 1111pe11ded. ioeliaible. or Yohmtarily excluded (Tel •). (e} ~ o!k:iala aball checlc the Nonproc:aremeat U.t befoN appl"OYinl priDdpal1 or lower lier putidputl where qenq· approval of the principal or lower tfer p1rticipant i1 reqwired ta:1der the term, of the tranaaction. to determine whether auch principaJa or p&rt.Jc:ipantJ II'! debarTed. 1uapended. i:1eligible. or voluntarily excluded. I u.s,o ,ar11e1pen1a·~ (aJ Certification by participant:s in primary coveff!d l/'anloctiona. Each participant 1haU 1uhmit the certification in Appendix A to thi1 Part for It and its principal• at the time the putic:ipant aubmita ita propoaal in connection with a primary covered tranaactiaa. except · that Stata need only complete aacb · certification•• to tbeir principals. Participanta may dacide tbe method and frequency by wbicb they determine the eli,ibility of their priDcipala. In addition. each participant may. bat ii not nquirecl to, check the Nonprocunment U.t for Im principal• (Tel •). AdYerN ialormatiao on the c:ertificatioa will not~ re1ult in denial of participation. However. tbe certification. Uld any addjtioa.al illformatioa Pertaiaiac to the certification 1ubmttted by the participant. 1ball N colllidencl bl the 1dm.ia.i1tntioa of cewerad ll'HHCtioa&. (b) C•rlifiawior, by partidpanb in lower liu ca•red l1mlMM:tloa. (l) Each partidpant aaD NqUlre partidputa ID lower tier covered tmnuctiom to include tbe certlftcdan ia Appem11i B to thJ1 Put for ft and n. priDcipaJa ID any propoaa.l aubmltted ID c:ouec:tioa with..-..... tilr ... 11 tranaactiaaa. (2) A putidpalll may raly upcm tbe certi!callaa of• proQedlve PVticiPul in a lower tier coverecl tn.nuctioa tlaat it and ill prlac:ipala an aot debairnd. suspended. iDeu,lti1e. or YOlaat.uiJJ excluded fn,111 the covered trauac:tlaa by any Federal qency. ua1eu 1l bowa that the certificatloa la enoaaoa. Participanll may decide tbe metbod and frequency by whJcb they. detenaite .tbe ~ilf blity of their Jldncipala. ID adHllloa. a participant may, but ii aot NQllind ID. check the Nonprocwwmnt Uat far ill prindpala and for participanll rre1. •J. (c) ChtffllH cin:ulnatancn ~ ctN'tificatiotL A puticipat uaJf proride immediate writtell notice ID !PA II at any time the participant leuaa that ita certificatioa wu anm.aou wha 1ubmitted or bu become emmeoua ~ reaaon of dwlaed clm11111temw· Participanta ID lower tier emend tranaactiona alaall proYide 11M .... updated notice lo tha partic:iput ID which U aubmitted Ill propoula.
Federal Repaler / Vol. SJ, No. 102 / Thunday. May 28. 19U / Notic:n Appendix A-C.rtific;ation Resardia1 Debanneat. Su1pen1ion. uad Ol.laer Re1pon1ibility Mane~ Covered Tranaactioo, Instructions _for C,r1~fico1ion 1. By 1ipiaa and 1vbmi1ti.QI thi1 propoaal. the pro1pective primary participant ii proYidilla die certificalion HI oat below. Z. The inability of I penon ta pnmde tlle cenificalion nqlliftd bea-will -I neceuarily re,1&11 iD denial of pvticipetioa ill 1h11 coverwd tnn11ction. Tlle praepec:tiw P1rticip1nt a!a1ll 1ublllit u explanation of why ii cannot proViek the certil'icabclll kt out below. The certillcat.ian or explanalioo will be considered In connection witb die dep1nment or a,enc:y·, de1mninalion whether to enter into thi1 trauec:tion. However. failure or die proepecci•• Pri.alol"J' participant to fl&miah I certificatioa or u 111piu1tioD •hall diaqualify nda penon hm ponicipeboa in llau tranNction. 1 TIie cen,ftcalion 1111h11 dauae i1 • · m111n !"IP' •n&at.ioa of fact upoo wbich relt1nce w11 placed wbeo the deportment or -,ency detennined to mter into due tnDHction. U II II later dttenained lhot I.he proapectiTe pr;m.ry puUciput bowinllJ rende~d u aTlllleou mnalicatiaa. ia addition ID olllar NmNiea 1..U.We ID a. Fedcnl CcwenllDlllt. Ille depucmant or , alfflcy may term.ioale thiJ lrUMCbotl for CHH of det.aJt. 4. TIie pro1pective primary portidpant ahall prmde imllledi111 wrttllm notice ID 1he department or qeDCJ to "'hoe tlua pra,poaal i1 •bminad If 11 1111 tia Illa pawpwtin Primarr puticip-'-*81 .. cel"dftc.atia wa1 .-woa ..._ •aklad or b.u became am:aaou Ii,,.._ ol ch1npd drc:umallnca. s. ne tenu ·covend lrlalcllOQ,. hdebanwd. • ·napencW. •'"1lwflalllle.• "10Wff tier IIOffl'ld .,_,ce.,• ~· •peraon. • •primary COYered DUN .... • ·pn:1~-............. __ ....., exdadld, • u ued ia tllildaaa. Ila• .. m---. N« GIii ia ta De&Ww ... Coven,e HCtion, of Ille rui.u ~ Executive Order 12541. You .. y cootld Ille dep11'1111anl or 11ency ID whidi du1 propoMI i• beilla subm.ltted for uli1tuce ID obtalnlna a copJ of dlOH repl1tioaa. . I. nt proapecti" primary putidpeat a,..... by 1ubaittina du• propoNl that. 1hould tbe prapo11d CDYll'ld lnneac::ti9" be et1tered iDID. it 1ball not bowiaalY •• IDto any lower tis CV¥1Nd n11edie wta • penoa wbe ia debund. nap r r'ecl ct.daNd i.ntlip&L or wlllD&arily udaded t-putidpatian iD tu coYW9d ll'IIINCtiaa. unleu 1ullloriztd by 1M clepar1mnl • IIUCJ eftlll'UII iDIO tldl lnDNdicn 1. ne pro1p1et1ve pdallJ ,.,.._, LA pllrUClp&DI in I COHl'M t:IVIHCIKID may ttly upon.• ceniflcation or I pro1p,ct1n parut1pao1 in • lower tier covered tnnaaction that ii ui not dtbund. 1u1pendtd. mellafble. or vo!vntarily e:u::ludtd fnllll th• C09'ered tnmlacton. llnle11 It linowt th.I the car1ific:otion .. lftOMWI. A participant _, '9cide di, method ancl freqveoc, by _... la detamnft tae eli,ibillty of ila priDc:ipalL f.lch ponicip-a IDIY, but ii DOI ~ II. CMC& die Sonprocwemut Ult (Tel •). t. Not!liQa coo tuned in tat fONFinl ea&.11 )e CC1D1tnaed lo require 11t1blieheenl of 1 . l)"lle& or m:ordl iD order lo reader la Foci faith &he certification rwqllirld bJ tJlia daae. Tht knowledp and infanauion of a . ;,anicip1nt ii not nqund to nc:Nd tliat which i1 normally poaNINd by I pradent ptnon in the ordinary COW'H of blllineM dealmp. 10. Except for tran11etioru authori&ed Wider par1araph e of lht• iMtrvcli-. if• parlicip1nt in a covend tr1n11ctioD k.nowinlJJ aaten iDIO I i-liar mnnd tra:u.ction widt a penon ._ l• ww5110M ii. det:arnd. ineqible. or wol1111tarily amlld.ed from p1nicipouoo in lhil cnnw:tioa la 1ddibon to other remedill 1vailable ID Iba Fedtral Covemmeat. 1M depa,tmall or •aellCJ m1J tenninlle dw tnnaoction for CIUM or derauJt. C~nifi..:IIIMIII~~ S11.•per..$i011. o,u/ Otber /lapoMibilit¥ Mati.n-Prilnor7 Co•tnd nan.ocwn, ill 11w pro•pec:&ive prwary puti,c:iput ce, ~lies to the but of ill bowlliqa acl bl'!lief. diat it aad iM priacipalr. (1) An not prneady debarred. ... ~ p:vpoHd for debUIIHIII\. 6tcluwd~ or YOhlntutly u~ hm ~ !d tran11ctioaa lly-, 1INlrll .te•uwt ar ,eeoc,: ibJ Haff not wttWa 1 ~....-precedina tbia 1-+, ~.._ _.1114 • bed I aililja--llt ff f nf apiat ... ror colllllliuiOD of had or I crimiDa.l otraN in mneect'oa wi~alt.._. ,,..,.... II oblliD. or nedocml•• pulakD'.a..&. SIIIM or local) lr&uacboa or ci5lhct lllldar • public lranuctioa: wtalatioa of Peclanl or State 1111H1ut •taftlt• or commiuion ol embn:llemna. theft. r..a-r. llribal7 • faltificalioll or dallllcllaa of l'ICOfda. lllUiJII falw 111tllNllta. or 1wwwl, .. ltolft property. (cl An DOI P'WMII~ .....,., or odterwiM crimiDallJ Of cnUl'jclwp,d by I ,ovmuunlal ealitJ (P"""'1, S1al8 or local} wi,. c:ooamiaaloa of uy of lbe olreuee enumena.d la puqrapl (1J(b) of &Ilia certikalion: ud (d) fflff DOI wttlaiD I~~ pf"eCIIClins IWe 1ppUc:olioft/ bad one or IIIOft public lrulNctiou (FedenL State or loc;al) terminated for c:o .. or defaalL fwthff .... by 111bmitt1oa dlil propoN,I that it will iDdvda lbe c1aaa ldad -Certiftc:atioa llqlldiq Dlbaraat. Supemioll. 1De1iaibWtJ ad Volmtar7 Eaduaioo-lower n. C.... TNaaac:Uo& • ,..,.-ided Ir, .. .,.,__. er (ZJ Wun die proepec1tYt pruDa1J pal'ticipanl ii unable IO cmti1J to u7 of.the 1i.tt1111111a ia dlia mtti<ioa. auca pro1pecllv1 partidpaat 1baU an,c.b u expl1natioD to thi• JN'OPOMl -,ency tDtariQa iD&o ......... ..,,edlo& witboal IDO'tiftc::ac1Ga. .... laws .. covawd trallactioaa 11111 a al aaldtlltlam ror loww lier covlNd tram 41 ..,_ Appendix a-c..t1:lftc..atiOD Reprdia1 Debol'IDeaL Suapemioll, IDelisibilty and Volunt&r; Eaduaioo-Lower Taer Covered Tramactiou lnstrtJt:tions for Ctrtificolion \. 11y 1ipirla and wbmittina 1m1 propcnal. tht pro1pective lower tier panicipual ii proYidina the certilic.atioD aet out below. Z. The certi!cotia in dai9 daue la • IHltrial HpCNrrlOtiaa of fact upoa wlaic:II reliance wu pllC'III! wt.ea 1h11 tranMction w11 entend IDlo. II' ii ii later determined &hat the pro1pective lower tiiu puticiponl knowinaly rrodered Iii errone«Na c.ertiftcatioo. in additioD lo otbar nmedin 1w1ilabl1 to the Federal CoYenunnt. die dep111men1 or apncy wi,. wlaicb thil tr111uction on,iD1ted may punue a•ailable remtd1t1. inclvdina 1111peuioa 111/d/or debannnL 3. The proepeclive lower t;er portidpent 1h11l pnrride· inunediate written notice to the ptnon to wbich lhil propoaal l1 Abmilled i( al any tune the pro1pecth1 low,~ lier pan1cipant le1m1 tllat its cenific:abon w11 Cff'Ofteoul wbeD Hbainad or Ml beame enoDIOUI by nuae of clwited Ql'CWIIIIIIIC:e&, 4. Tila tenlll •c:ottnd lrWDMc:tiCICL. • -d,barnd. .. ·,upaclacl.· "laelipble. • "'lower tier mYend truNctioa.• "putic:ipaa&. • ·penoa. .. "'primuJ CIOYVld lrUMclicla.. -priDcipal. • •pao11 a 1al • wl ......_tarilr ududed. • u u.d Ill dlil de-. liaYW die meuiap Nt out ill tba Dellalllou ud Coverqe aectiODI of l'IIM lmpl1a1Gtillll EaecutJwe Order UMI. Yoa .. , aialaet die penoa 1e wbidl dlil p,opoaal II nlalttad roe llliltaace iD obtlinilll I capJ ol ... npl1tiou. I. n. proapectin a.-r liar partk:lpul qrNI by 1ubaifliDI lllil pl"DpOlal Illa&. 1houJd die propoaed connd lre1lMClioa be enttr.d into. it ahall DOI bowiDIIJ eDler ialO any lower tier covencl truNc:lia wllla • ~w':.":ri~==~ participetioll iD dlil CDftlN IIUMctt,g unJcM 111tborizad bJ Illa~ Of qeDCy wida wbiQ dlll trwnee:dr oripnaa.l. I. T1le proapedlw loww lier~ furtber 1p'H1 by 1uhainin1 dlil rUPFlal lh1t lt wW IDc:hade 11111 c1a ....... -c.rdcation ......... 0..• • · SvapeuioL lnelillbllllJ .... v.......,. Eacl~Tllrc....d Tru.aadioll.• wtdint eodtlcwllO&. la all lower lier conred tnuadloaa _. la al aolicitotionl for 1o-liar ...... trallNCtionL . 7. A portlcip&DI In I CI0¥9fN lrmlftdl• 11117 my upon a certi!catioa ol a prupectin putidput ill a 1o .. lier CI0¥9fed trUIMClioa tbal il ii -........ 1u1pended. inelillble. or .......,., ududed from the conred lrUIMdioa. aleM it knoW9 t!:11 the c:e:tilication ii cnoa.-a. A p1rticip1DI tnlf decide &he meth.~ ud frcq11enc1 by which it clctenniDel die tlipbility or iu pMc.ipela. f.lm puticip&llt m17. but LI DOI mil&ired lo. Qd die Nonprocvrement Li.If (Tel •~
Federal Repler / Vol. 53. No . 102 / Thunday. May 28. 1988 / Noticn
a. Nolhlna coatamed ill the fOf'WIOUll tball
bt corutnaed to reqwn n11bli1bmeat of a
ayatem of record, la order to react.r la aood
fa ith th1 c:ertUicadoa nquired by tbia deuH.
1\e kaowledae and inlormatioa of 1
putldput it aot nqllilwd to exceed that
wkidl ia aonaally PJ9Ntaed by I prudaat
pa,oa la the ordilluy CO\ll'M of buaia-
dealinp.
t. Except for lr&naacliom ~uthoriad IIDder
,.,..,,.p11 5 of tbeN illltructio111. II a
putidput la a C:Hlred truuctiDD
linowtDalr eaten into • 1o .. lier Cllftl"ld
lrUIUc:tloa with I perMCI wllo ii I~
dtbuNd. ID•Uaible. or YOl11DtarilJ 1ac:hadad
haa pu11dpatiCIII iD dli1 tnuac:lio& ill
additlcm IO at~: ftllDediH Hallable ID ll!e
Federal Conrameat. tilt .,.._..t or .,.IICJ with wbk* tllia lrUINctioe onputed
.. , punue naU.ble nmedift. inc:ludiJlt
1upeuioa ud/• debarmaL
C«fifkotion tc.,o,d .w DebatwwnL
Sw,#Mion. IMl;,ib,'I;~ tllld_ Vo/111111U7
bclu.ion--1,,o_, T, r,,N,"'f'tl
Tl'OIIIOCfionl
(1J 111• proapecth,e lower tier perticiput
certifta. bf 111bmi11iaa ol thi, propoeal. tbat
uitber It aor ill principal, ia preNady
.. bund. ,u,pncled. propoeed far
.. barmnl. cledlllCI laeliaible, or ,ohmtariJy
ncluded ... putlcipelioa ill dlil
l'UNclioa by uy Federal c1e...,..._, • ....,.
(2) Where the proapectin 1o .. 11ar
,utldput ii mable IO certify lo UIJ of 1M
........... 1a 11w c:arli!catiaa. nm ·
,coepeclin putidpent ..U anad u
explana tioa to tlail p,opoaal.
(3) n. proapective iow•-tiar participa111
allo cerlilet lllat II ud ill priDdpa)a:
f 1) Heft DOI wldaia a tlirw.Jaar period
a,ncediq du, prapoeaJ baa cmaYict.ed o/ or
..... dril ~ ...... NDderad qaJmt lli-
ror 00fflml11icm of had OI a auidaaJ oft'aw
In c:aa:aedloll with obtaJmna, •ttam,llnt ..
ebt.1111. ar perfonalllc I public (Fedaal. State
or local) lnDNc:tlaa or a111tract ...., a
,-bile lra.alac:tiaa: Ylolatioa of Pedaal or
llata anli-lnall ,ta .. a. ar coemleefoa of
•ba:zlemalt. lbeft. ,...,,. tara.r,.
falalflcatioa or detlnlcdoe of NCOrtll. maJdnt
falae 1tateaata, or NaeffUII I ..... piopat),
fb) An DOI pnNDdJ IDcllc:lad .. or
~ atmlDallJ or cMJb CMIIIICI bf•
pYtl'IIIMlllal talilf (FtdenL St1t1 or local)
wUh memialion of anr of die off111N1
eaaaaentad in parapapb (JXa) of dall
artlllc:aliall: and
(c) Hewe not within I thrff.11ar period
pncedina du, propoul bad CIDI or ...
public 1ran1act1o111 [Federal Slate• locaJJ
lenlinated far c:e11N or d1f1alL WIien lhe
,,_pectin lower-lier partldpant la uaable ID
certify to UJ of tilt ebon. luda prolpactiYe
pa,tidpant 1h1D attach an t~nelioe lo thla
propoaal
Attachment I DRUG P'RBB lfOUPLACB CBUIFI~IOII Each applicant for EPA funding assistance must complete a current certification that it ha• a policy of providing a drug-free workplace for employees. The certification aust be SIGHED by the bead of the agency (the per•on who ha• authority to •ign applications and commit agency performance) • Grantee•• respon•ibilitie• are listed ·in 40 CFR, Section 32.630. State grantee agencies may file an annual certification; all other• 11111st •ubmit a certification purauant to the language found in the aforementioned regulation. Thi• certification i• required from the BPA prime recipient only; the regulation doe• mrt require BPA grantee• to require this certification froa their contractors. ~ 18 A PORN&'! o• RB RBVBRSI 8IDB ~ NADB U8BD POR TBIS CBRTIFICATIOR. APPLICAIITS MAY USB HIS PO~ OR NAY PRBPARB 'DB CDTIPICATIOR OR DBIR LBftBR IIBAD OR PLllR BOIID U8IIIG ~ LAIIGUAGB POUIID U 60 CP'R, SBC'fIO• 32.630. BB SUJtB 'fO I•CLUDB1 (a) JIAIIB OP HB APPLICAll'l (IP ROT USIIIG LBftBR DAD) (b) ffPBD IIAJIB UD Tift.I OP DB SIGIII•G OPPICIAL (c) DAD SIGIIBD
~ ~ i ~-!r ;;• "a-! ~ Iii' ! -3 .. [ > . l -< II ! 9 J I I i >-iii' I ~ l J 1 f. I I f i I l !t l i f i ! • .r i l f t [ I l r ' [ f f r pl ~ l.i. € S I g E ~ E ! l Q i ! ~1 !·1 l I? }'1 '? 1· }l}f · B; ! g I 1' :1111 !J' ~l !i1 It t r1i! f ffl l; i ?; rfl 8 tj. 1-f j &5' "f· la 2.;. • rf l i ~ !: l 8 J fJ 11 I f I 11 I f ] l ~ ·1 I I • l f. C j ~ f [111 i i I R.lf j t I J 1 }! f -1.:-1 ! 2 ~ f B' _f f I! !!. ~ 8'-i r ! i f iij i 11 ! ! j l[t1 f 1,,, ii i ii' J !~ II. B , t 1 • p i ); tf ,a • I f f t t " I [ j I l I. ] .:. :3, 0 1 J f !u i r J t i r' if ~ ) t 1 .. 1 f 1 1 :1 J i] f f I J l • f r ... J r _
Attachment J
CBRTIPICATI08 RBGARDIBG LOBBYI•G
Bach applicant for BPA funding aaaiatance muat complete a current
SIGNED certification (aigned by agency or organization head who
aigned application and baa authority to commit agency or
organization performance) regarding lobbying activities and must
submit this certification with~ application for Federal funds
exceeding $100,000. When applicable, the disclosure form must also
be submitted. See "Governmentwide Guidance for Rew Restrictions on
Lobbying" dated December 18, 1989.
·~ I8 A PORD'r OIi !'BB RBVBRSB 8IDB ~ DDS USD POR BIS
CBR'rIPICA'rIOII. APPLICA11T8 NAY U8B HI~ PORIIU OR NAY PRBPAU irn ·
CBRTIPICATIOR USIIIG 'rBBIR LBftBRIIDD > OR PLAIB BOBD USIBG 'rD
LAJIGUAGB POURD I• APPDDIX A OP TD "GOV'BIUINBll'!lfIDB GUIDJUICB POR
IIB1f RBSTRICTIOBS OB LOBBYIIIG." BB SUD TO IBCLUDB1
(a) BAME OP 'rBB APPLICA112 (IP ROT USIBG LBT'l'BR BEAD)
(b) TYPBD lfANB ARD TITLB OP HB 8IGJIIBG OPPICIAL
(c) DA'rB SIGDD
. Attachment I
CERTIFICATION REGARDING LOBBYING
Certification for Contracts, Grants. Loans. and Cooperative Agreements
The undersigned certifies, ID the best of his or her bowledge and belief, that
1. No Federal appropriated funds haye been paid or wW be paid. by or on behalf ol lhe
undenlped, ID any penon for lnfluendng or attempting ID Influence an offlcer or
employee of any agency, a Member of Congrell, an officer or employee of Coltgrell. or
an employee of a Member of Congress In connection with the awarding of an7 Federal
contract, the making of any Federal grant, the making of any Federal Joan, lhe enllrtlW
Into of any a,operatlve agreenaent, and the extension. continua~ imewaJ, amendment,
or modlftcatlon of any Federal contract, ~ Joan, or mopaallw agreement. ·
2. u any funds other than Federal appropriated fundl have been paid or wm be pal ID IJflf
palOD for Influencing or at1anpt1111 to lnftuence an officer or employee of any apnq,
a Member of Congreu, an olflar or employee cl Congraa, or an employee of a Member
of Cor.gi• In coMeCtion with this Federal contract, grant. loan, .or cooperallft
ageement, the undersigned shall complete and submit Standard Form-LU., "Dlldalare
Form ID Report Lobbying,• In acmrdance with 111 lnstructlolll.
3. The undenlgned lhaD require that the language of this certification be Included In the
awud documents for aD tubawarda at aD tlen (lndudJng IUbcontracll, ~bpanta, and
contracts under gnnll, loan,, and cooperative agnements> lftd that all aubreclplenta lhaD
certify and dl9dose acc:ordmgly.
This certification Is a material representation of fact upon which reUance wu placed when thll truNdkm
wu made or entered lnlo. Submlsllon of thla certification II a perequlllte lar maJdllg or enlerb,g lnlo
thll traNadkm lmpoted by section 1352. title 31, US. Code. . Ally person who faDa ID 8le the reqalrlld
c:ertlfkatlon lhaD be IUbject ID a dYII penalty of not 1e9s than $10,000 and not more than $100,000 lor-=ll
such failure.
Name and Address of Agerv:y /Organization:
Note: Ust of this fo,,Mt is optional. You rn.y prwitle this same infomuition on your ldtahaul.
PROC~ SYSTEM CERTIFICATION
EPA Fora 5700-68
Attachment JC
On the reverse side is a Procur ... nt Sy•t•• Cert;ification,
BPA Fora 5700-tS, (Attachment IC) must be attached to the following
applications:
SUPERP'URD REif COOPBRATIVB AQRBENEH'lS: and upon substantial
revision of the recipients procurement system. Required by
tO CFR, 35.6550(a).
TBCBRICAL A88ISTUCB GRARTS: to CFR, 33.llO(b).
a.ma GRJUff PROJBc:rs AWARDED URDBR ,o CFR, PARTS 30 ARD 33:
e.g. awards to Universities or Ron-Profit Organizations.
Required by ,o CFJt, 33.llO(b).
LOCAL GOVERIOIBlffS 5 IMDIU TRIBES: completing attachment JC ia
optional -to CFR 31.36(g)(3)
IP YOU CERTIFY that your system meets EPA requirements, then you
must cite, in the apace provided on the form, the specific
documents or legal instruments which stipulate the procurement
requirements for your organization which meet EPA requirements. ll
requested to do so, you must submit copies of the documents cited.
(Do not submit these documents unless specifically requested.)
YOO MAY NON-CERTIFY. This means that you do not certify that your
procurement system meets EPA requirements, but that for each
procurement of $25,000 or more under the grant project, you will
follow BPA requirement• for the project for which you are
requesting fundil:lg. Additionally, you must subm.i t to the EPA
project officer copies of these procurement documents for BPA
approval (i.e. Requests for Proposal, -Bid Opening Minutes/Rotes,
Selection Decision Justification, Negotiation Notes, etc.)
ATTACHMENT K
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, DC 20460 Form App,owed
&EPA PROCUREMENT SYSTEM CERTIFICATION OMI No . 2000-0453
App,-1 eapirea 10-31-17
APPLICANT'S NAME ASSISTANCE APPLICATION NUMBER
APPL.ICANT0 S ADDRESS
SECTION I -INSTRUCTIONS .
The applicant must complete and submit a copy of this form with each application for EPA Assistance. If the
applicant has cenified its procurement system to EPA within the past 2 years and the system has not been
substantially revised, complete Pan A in Section II, then sign and date the form. If the system has not been
cenified within the past 2 years, complete Pan 8, then sign and date the form.
•ECTION 11-CERTIFICATION
A. I llffirm that the applicant has within the past 2 years cenified to EPA that its procure·ment MONTH/YEAR
system complies with 40 CFR Pan 33 and that the system meets the requirements in 40
CFR Part ~~-The date of the annlicant's latest cenificatinn i•:
e. Based upon my evaluation of the applicant's procurement system, I, as authorized representative of the
applicant: (Check one of the following:)
LI 1. CERTIFY that the applicant's procurement system will meet all of the requirements of 40 CFR Pan 33
before undenaking any procurement action with EPA assistance .
Please furnish citations to applicable procurement ordinances and regulations
.
u2. DO NUT CERTIFY THE APPLICANrs PROCUREMENT SYSTEM. The applicant agrees to
follow the requirements of 40 CFR Part 33, including the procedures in Appendix A. and
allow EPA oreaward review of crooiised nrocurement actions that will use EPA assistance.
TYPED NAME AND TITLE SIGNATURE DATE
.. EPA Form 5700-48 (Rev. 5 -84) Previous ed111on is obsolete.
CBRTIFI~IOB
Attachment Land
Attachment L-1
XIRORITY BU8IRZ88 BIITBRPRISB8 6 WOMBll'S BUSIRZSS ~BRPRISES
tr.rILIIATIOB GOAL
Setting a utilization goal (must be at least 81 of the Federal
portion of the extramural funds) and reporting on the progreaa
toward meeting that goal is required by Public Law 102-389 (Title
42 United States Code Section 4370d).
To establish your goal, you may use the format "Attachment Lor
( Attachment L-1 f o_r State Revolving Fund ( SRF) • or you may use your
letterhead as long as you provide all the information requested in
the format. An award cannot be made until a goal has been set.
After the award of Federal funds for assistance with your project,.
quarterly reports of MBB/WBB utilization are required on Standard
Form 334. An annual narrative of your progreas in meeting the goal
you set (or an explanation of the reason the goal was not realized
even though you complied with ~he six affirmative steps) ia also
required. There is no form for the narrative portion --attach the
narrative (typed on your letterhead) to the SP-334 for the fourth
quarter.
%~ Y011 baTe queai:iOIUI aboat:
reqairaaallt:a, pl•-COD~
Coorclinat:or, at: (21C) 655-7'°7.
Aft'.ACBNllMr . CKR2".I'FICA2'.I'Olr CBR'rIYICA!'ION REGARDING IIBB/'JIBB lnILID!'IOB GOAL Gall .POii ,ZS(2Z. !'UR ---IUCIPigN'l'/APPLlCAN'l' IWat EPA/PROGIUJf.r ____________________________________ ~ GRAH'1' HO. (if known): PROJECT PERIOD __________ _ In accordance with the requirement• ••tahliahed by Lav ('fitl• n United Stat•• code section C370d) on october ,, 1tt2, the Agency muat obtain a goal for all federal funding for the utilization of Kinority Bu.in••• BDterpri••• and women•' Buain••• SDterpri••• .(MBB/11BB), including Biatorically Black COll•g•• or Univeraiti•• (BBCUa) and small Ba•in••• Adminiatration deaignated JlUral Ar••• (SBRAa). 'l'h• recipient/applicant agency or organization muat ••tabliab a minimum goal for utilization of Minority BuaineH Bnterpri•e• and Women•• Bu•in••• Bnterpri••• (HBZ/WBB), including Biatorically Black coll•p• or univeraitie• (DCUa) and small Buain••• .Adainiatrat.ion deaignated Jtural Areu (SUAB). '!'C>Ua GOAL (nat tobl at: leapt eiqbt ptrcept of Pecltra,l fun4ipq .,,..r4.s for eztrumral procurwpt (-,pi•• to be apegt oqt•U• t;b• reqipiegt/applioaDt •9•P9J • orqapisatio11, or lpdiaa tribe for contrac;\p, ••n-icep s equ1,-.p1; s or ppppU.ea)J. Th• goal• muat be broken down with a percent form and a percent for m. Thi• minimum utilisation 9oal i• applicable to all extramural procurement under Pedera1 financial aaaiatance agreementa, including grant•, cooperative agreement•, interageDC7 agreement•, loan•, and contract, eacuted with the u.s. BDvironmental Protection·Agenoy. GRAHT AMOUR'1' JtBQUB8'1'ZD I $ T0'1'AL 8UDGE'l'BI) AKOURTS RBQOESnD 1"0Jl SERVICES, BQOIPHElft', 8VPPL%B8, COll'l'RAC'1'8 OR COlft'JtACflJALI '---------!'AIR SBARB OBJEC'l'IVZS (RZL&.'1'IVB TO llPIRAL POR'l'IOR OJ' J:X'l'RAHU1tAI, PROCURBMBR'l') I 1181:1 ----· ·--------NiDority Buain••• BDterpri•• ... ----· ·--------wcmen•• BUain••• Bnterpriae '1'0'.l'ALI ------• crnn TWO IIUST TOTAL AT LDS'f ••> oa rou HAT GOAI. A PDCBJl':MD POa. BBCUa DIS'l'BAD OP DB. 'l'BB !'WO '1'0'.l'ALS KUS'1' TO'l'AL A'l' LEAS'l' IIBCUI Vniveraiti•• ••• ----· ·--------Biatorically Black college• 6 -------------·----· -------------------------------------------IR Al>DI'l'IOB TO A GOAL POil IIBB/WBB oa DCU• .. ASK TBM' '!'OU GOAL !'Oil SBRU. Tb• Authority i• located iD section 121 of PUblio Lav 100-sto dated wovember 3, 1t11. sau.a • • small audneH Jtural Areu If "Fair share• i• not applicable to tbi• award, or CBR'l'AIN COST QBJIC'fIVBS, pl•••• expld.D lf'hya
SPA r•••rv•• the right to either accept Ue recipient•• propoaed fair abare, or to negotiate
a fair abare baaecl 11poa CODclitioa• cit.eel ia t.b• awar4. If you baYe mar qaHtion•, pl••••
coat.act. aet.a Brown, IIIIB/111111: CoorlliDat.or, Jlalaag-•t DiTiaioa (611-PG), Pbone1 (21') 655-7t07.
Recipient•• contact for MBZ/WBZ iaaueas
Tttle
Stpat•re of CerttfY111t Offlcta l
Tned ..... IN Tttle of C.rttfyh9 Offtctal
Tned ,.... of As,NcyJOrpntzattoa/1 ... tn TrtM
Natl t111 Address
Ctty State Ztp Code
J. VII et tb,t• (0Q11t 11 opt1opal. rou uy u•• tlJJ.• .format cm your
IIIU/'lfBll gtMl• uy be •hown oa your letterhead (provJ.ded Ill 1n.tonut.Lon
reque•ted by tbu .tonaat 1• 11,cludedJ over th• •J.gmature ot th• oert1.tyJ.zJg
o.t.tJ.c1&l vbo bu autbor1ty to COIIIIJ.t agency, organJ.•at1on, or 2'r1bal
per.toraaaoe.
J. .Pleu• ualude tbe .t1•cal year and project perJ.od on .Page J o.t tb•
cert1.t1oat10ll.
A'J!'l'AClllS1n' L-C&Jd'.lrZCA'ZZOII SRP CBR'.rIPICA'.rION RBGARDING IIBB/'11JB rrI'ILIU'l'ION GOAL GICIIUi .ft>Jt fflJCAL m.R ---UCIPUNT{APPLICAN7' NAJa: 'J:PA/PROG!UtJCs ____________________________________ ~ GRAN'l' RO. (if known) I PROJEC'l' PEJU:OD -----------:tn accordance vitb the requirement• ••tabliabed by Law (Title t2 united stat•• Code BectlOI t370d) on october ,, 1912, the Agency auat obtain a goal for all federal funding for th1I utilization of Klnority Bu•in••• Bnterpri••• and wcmena• Bu•in••• Bnterpri••• (IIBB/IIBS), including lliatorioally Black College• or univeraiti•• (BBCU•) and aaal.l auaina•• Adainiatration deaignated aural Ar••• (SBRA.a). 'l'h• recipient/applicant agency or organization mu1t eatabli•h a ainbm11 goal for utilisation of Minority auain••• znterpri•e• and Women•• Bu1ine11 Bnterpri••• (HBB/WBB), inoludi.Dg aiatorically Black College• or univeraiti•• (JIBCO•) and small Buaine•• Adein1wtratloa deaignated Jtaral Ar••• (SIRM). Yomt GOAL Jpat total at leaat elalat; percept of l'fflra1 fgp4ipq awar4e4 •• • capitalisatiop arapt for tbe atat• Mvolvlpa FY4 <IV> for aqtiyU;y cm•rd bY tP qa Js,,120 {Apthoris,t kP!• of •••i•tapoe), Tb• goal• au1t be broken down with a PH'.9fRt for MIi and a arcept for DI, totalling not l••• than e1. Thi• mSntnma utilisation goal 1• applicable to all Federal funde for cap1ta1isation araat Agreement•, inoludJ.ng grant• or cooperatift agre ... nt• executed with the u.s. Bnviromnanta1 Protection &genoy. l'BDEltAL CA.PITALISATIOII GltAll'1' AIIOUHT• '----------•• IIDIIHWI .IKOUft '--------l'llll SIIAU OBJECTIVBS (ltZLA'l'IVZ '1'0 ftJ>IW, PORTIOII 01' C&P:t'l'AL:IZATIOII Glt&lff) I KBB& DBI 'l'OTALI DC'UI univeraitJ.ea ----· ·------------· ·--------Minority auaine•• Bnterpri•• wcman•• auain••• BDterpri•• -----I ('l'IIUB TWO ND8'1' TO'f&r. &T LB.AST 81) OR YOU NI.T GOAL A PDCERTAGZ POil BBCtJ1 INS'l'D.D 01' HBB. TD TlfO 'l'O'l'ALS KOST '1'0'1'.AL U LEA.ST .,. ----· ·--------Biatoric::ally Black Collegea 5 ----------------------------------------------------------------------------Ill ADDITIO• '1'0 & GOAL POR IIBB/WBB OJl BBCUa WI: UK TnT TOO GOAL FOil SBltU. The Authority J.a located 1D Section 129 of PUhlic Lav 100-590 dated Rovember J, ltll • SBU. ____ , '--------... 11 Buain••• aural Ar•aa ;
DA r•••n•• t.he rigbt. t.o either accept tb• recipient'• propo•ed fair ahare, or to negotiate
a fair ahare ba•e4 UpOD COD4it.iORa citecl in~• a .. rd. Xf JOU ba•• any queationa, pl••••
contact a.ta BrawD, m/n& Coordinator, Nuaag-Dt Di•i•ion (Ill-PG), Phones (21•) &55-7,07.
Jt.ecipient•• contact for MBZ/WBZ iaau•••
..... Title
s1, .. t1re of Certtfy119 Offtctal Dete
Typed .... ..a Tttl• of certtfrt .. Offtctal
Typed .... of ApacrJOr,Utzattoa/ladtu Trtl•
Natltnt Address
Cttr
lfote•,
Stete Ztp Code
J • V•• · ot tbS• topat 1• opt.1onal. J"ou aay u•• thJ.• .tormat OR your
,aa/'11J1l goal• aay be •bown OlJ your letterhead (provJ.d.,J Ml J.Ji.tonaat.toa
requ••ted by tlu• .toZJMf: 1• J.JlcludedJ over the •.tgnature o.t th• certJ..ty.tag
o.t.tJ.oJ.al wbo b .. autborJ.ty to coaa.1t agecy, orgaa.1.•at.1012, or 2'r.1b&l
per.toraaziae.
a. ~leue .tlJclude the .tJ.•oal year and project perJ.od on Page J o.t tbe
certJ..tJ.oatJ.OJJ.
CFDA COO[ NO.
66.CAF
66.CAT
16.CVF
66.CIIT
16.IIIIF
16.DIIT
16.JNT
16.NIA
16.1115
16.ITil
11.sn
16.St'X
16.saF
16.SSD
16.SSJ
16.SVF
16.SVT
16. TSO
16.001
16.003
16.0JZ
16.411
16.411
66.432
66.433
16.435
11.438
16.454
16.454
16.451
16.4'0
16.4'1
16.40
16.464
16.4'5
16.500
16.501
16.502
16.504
16.506
16.507
16.IC8
·66 • .»
16.700
16.701
16.702
ll.70I
16.IOl
11.IOZ
16.804
11.IOS .....
11.807
16.IOI
16.IOt
16.too
11.ns
II.HO
11.tll
T•ble Ft In
CATALOG Of FEDERAL DOHESTIC ASSISTANCE TABLE
ASSISTANCE PROGRAM
CLEAN All F[LlJJWSHIP
CLEAN All TaAINIIIIG
CLEAN WATER FELLOWSHIP
CLEAN WATER TIAINIIC
Dl1NICIIG WATO FELLOIISHIP
DllNICIIIIG WATO TIAINIIC
INTERDISCIPLINARY TRAINIIIIG
NIAi' FELLOWSHIP
NEIS FtWMHIP
ltADOII TRAINI•
SUP[lFIIID TMINIIC
SPECIAL PURPOSE
SUP[l.FUND RESWOI
SEE SPECIAL CONDITICIIS
suavm, STIIIIES, INVESTIGATIONS
SOLID IIAST[ FELLOWSHIP
SOLID IIAST[ TRAINIJI&
TSCA DEVELOPMENT
All POLLUTICII CONTIDL PROGRAM SUPPORT [CAA SECT. 105]
All POlLUTICII CONTIDL • MNPOWER TIAINilli
STATE INDOOR RADON PRCGIWI
CONSTIIOCTION UNITS FOR NAST[ WATElt TREATMENT WDltlCS
IIPC STATE I INTOSTATE PROGIWt SUPPOlT [OM SECT. 106]
STAT[ l'UILIC WATER SYSTDt SUPERVISION [SAFE DRINKING WATER ACT]
STAT[ IN)[RGDII) WATEl SOURCE PIIOTECTICII (Ult) [SOWA)
WATER POlWTION CONTIIOl • W£ RESlOIATION
CONSTRUCTION NMMDOT ASSISTANCE [CM SECT 205(&) sm O]
WATER QUAl.ln IWIMEMEJIT Pl.ANNIN& [OM SECT. ZOS(J) STEP I]
NATIONAL £S1UARY ~ [OIA SECT . 320]
CAPITALIZATION &RANTS • STATE R£VOL.VIIIG FINI
NON-POINT SOIIIC[ I .. LDUTATION
V£TLANDS PIOTECTJCII • STATE DEYELOPMPIT
NPD£S 1£LATED STAT[ PIIOGIAH liRAIITS
NW CQ,\STAL WATERS PRDGIWI
lfELLHEAD PIIOTECTJCII PIIOGIAH liRAIITS
CONSOLIDATED WEAICH &RANTS
AIR POLLUTION CCll1IDL • ltESEARCH
PESTICIDES CXIITIIDL • lt[SEARCH
SOLID NAST[ DISPOSAL • RESEAICH
SAFE DRINKING WATER • RESEARCH l DEMOIISTIATION
TOXIC SU8STNIC[ -USWOI
SENIOR ENVIIDMENTAL DtPL0YM£NT PROGRAM (S.[.[.)
CONSOLIDATED lltMTS
PESTICIDES DIFORCENENT PROGRAM [FIFM)
TOXIC SUISTNICES CCll'LJANCE tlJNITOltJIC [ToSCAJ
ASBESTOS HAU.RDOUS AIATDUT (SCHOOLS) ASSISTANC( [TOSCAJ
ASBESTOS EJIWICDIEIITS .
HAVJtDClJS NAST[ IWCA&EMENT STATE PIIJGIAN SUPPORT [RCRA SECT. 3011 AN£11)£D]
HAZAIIDOUS SUBSTANCE RESPONSE TRUST F11D (SUPERNG) [CERCLA/SARA]
STATE lll>EIIGIIDIJID STORAGE TMXS PROGRAM (UST) [RCRA SEC1. 9004 AMDID~)
STATE l.£AJCIIC UNDERSRCUND STOMA[ TANKS (LUST) [CEJICLA]
SU,£Rfl11) TECIIUCAL ASSISTANCE UNITS (TAGs) [CERCLA) CITIZEN'S GROUPS: PRIORin SITES
SU,£Rfl11) INNOVATJY[ TEON>LOGY EVALUATION PIIOGMN .
SOLID WAST[ MANAG£NENT ASSISTANCE
CORE PROGRAM COO,[MTIY[ AGREEMENTS
POLWTJON PREVENTICII IIICDfTJY[S -STATES
STATE/EPA DATA MMIAGEMDIT
ENYIRONNOOAL EDUCATION I TRAINING ll'RDG.
ENYIRCMIENTAL. EDUCATION GRANT PIICGRAN
. Febnau-y 11, 1tt4
United State ,_
Environmental Protect ion
Agency
Office of Environmental
Information
Wast r/ngton , DC 20460
EPN240/B-O 1/002
March 2001 EXHIBIT A-2
&EPA EPA Requirements for
Quality Management Plans
EPA QA/R-2
FOREWORD
The U.S. Env ironmental Protection A genc y (EPA) has developed the Quality
Management Plan as a means of documenting how an organization will plan, implement , and
assess the effectiveness of its quality assurance and quality control operations applied to
environmental programs. The process of planning , impl ementing , and assessing these
management systems is called quality managem ent and the product of this process is called the
Quality Sy stem. The Quality Management Plan is part of the mandatory Agency-wide Quality
System that requires all organizations performing work for EPA to develop and operate
management processes and structures for assuring that data or information collected are of the
needed and expected quality for their desired use .
This document provides the development and content requirements for Quality
Management Plans for organizations that conduct environmental data operations for EPA through
contracts, assistance agreements, and interagency agreements ; however, it may be used by EPA as
well. It contains the same requirements as Chapter 3 of the EPA Order 5360 Al (2000), EPA
Quality Manual for Environmental Programs, for EPA organizations.
This document is one of the U.S. Environmental Protection Agency Quality System Series
documents. These documents describe the EPA policies and procedures for planning,
implementing, and assessing the effectiveness of the Quality System. Questions regarding this
document or other Quality System Series documents should be directed to the Quality Staff:
U.S. EPA
Quality Staff (281 lR)
Washington, DC 20460
Phone: (202) 564-6830
FAX: (202) 565-2441
e-mail: quality@ epa.gov
Copies of EPA Quality System Series documents may be obtained from the Quality Staff directly
or by downloading them from its Home Page:
www .epa.gov/quality
EPA Q A/R-2
Fi na l
Ma rch 20 0 1
ACKNOWLEDGMENTS
This document reflects the collaborative efforts of many quality management professionals
who participate in the challenge for continual improvement in quality systems supporting
environmental programs. These individuals , representing the EPA, other Federal agencies , State
and local governments, and private industry, reflect a diverse and broad range of needs and
experiences in environmental data collection programs. Their contributions and the
comprehensive reviews during the development of this document are greatly appreciated.
EPA QA/R-2 11
Fina l
Ma rch 200 1
TABLE OF CONTENTS
CHAPTER 1. INTRODUCTION ............................................. 1
1.1 BACKGROUND ................................................ 1
1.2 QUALITY MANAGEMENT PLANS , THE EPA QUALITY SYSTEM, AND
ANSVASQC E4-1994 ............................................ 2
1.3 THE GRADED APPROACH AND THE EPA QUALITY SYSTEM ........ 4
1.4 INTENDED AUDIENCE ......................................... 4
1.5 PERIOD OF APPLICABILITY ..................................... 4
1.6 ADDITIONAL RESOURCES ...................................... 4
1.7 SUPERSESSION ................................................ 4
CHAPTER 2. QUALITY MANAGEMENT PLAN REQUIREMENTS ............... 5
2 .1 POLICY ....................................................... 5
2.2 PURPOSE ..................................................... 5
2.3 APPLICABILITY ............................................... 5
2.4 GENERAL CONTENT AND DETAIL REQUIREMENTS ................ 5
2.4.1 General Content ........................................... 5
2 .4.2 Level of Detail ............................................ 6
2.5 QUALITY MANAGEMENT PLAN PREPARATION .................... 6
2.6 QUALITY MANAGEMENT PLAN SUBMISSION AND APPROVAL ...... 7
2. 7 QUALITY MANAGEMENT PLAN REVISIONS ....................... 7
CHAPTER 3. QUALITY MANAGEMENT PLAN ELEMENTS .................... 9
3.1 CONTENT REQUIREMENTS ..................................... 9
3.2 MANAGEMENT AND ORGANIZATION ........................... 10
3.3 QUALITY SYSTEM COMPONENTS .............................. 11
3.4 PERSONNEL QUALIFICATION AND TRAINING .................... 12
3.5 PROCUREMENT OF ITEMS AND SERVICES ....................... 12
3.6 DOCUMENTS AND RECORDS ................................... 13
3.7 COMPUTER HARDWARE AND SOFTWARE ....................... 14
3.8 PLANNING ................................................... 15
3.9 IMPLEMENTATION OF WORK PROCESSES ....................... 16
3 .10 ASSESSMENT AND RESPONSE ................................. 17
3.11 QUALITY IMPROVEMENT ..................................... 18
REFERENCES ........................................................... 19
APPENDIX A. TERMS AND DEFINITIONS ................................. A-1
EP A QA/R-2 ill
Final
March 200 1
(This page has been left blank intentionally.)
EPA QNR-2 IV
Fi nal
March 200 1
1.1 BACKGROUND
CHAPTER 1
INTRODUCTION
The U .S. Env ironmental Protection Agenc y (E PA) annually spends sev eral hundred
m illion dollars in the coll ection of environmental d ata for sc ientific research and regulatory
decision making . In addition , non-EPA organi zations may spend as much as an order of
magnitude more each year to respond to Agency requirements. Furthermore, as EPA is
increasingl y in volved in the use of environmental technology for pollution control and waste
clean-up , the use of particular technologies is often spec ified in permits and regulations. If
decision makers are to have the necessary confidence in the quality of environmental data used to
support their decisions or that environmental technology successfully performed its intended role,
there must be a structured process for quality in place .
A structured system that describes the policies and procedures for ensuring that work
processes, products, or services satisfy stated expectations or specifications is called a quality
system. All organizations conducting environmental programs funded by EPA are required to
establish and implement a quality system. EPA organizations are required to document their
quality system in a Quality Management Plan through EPA Order 5360 .1 A2 , Policy and
Program Requirements for the Mandatory Agency -wide Quality Sy stem (EPA 2000). Non-EPA
organizations funded by EPA are required to document their quality sys~em in a Quality
Management Plan (or equivalent document)1 through :
• 48 CFR 46, for contractors ;
• 40 CFR 30, 31 , and 35 for assistance agreement recipients; and
• other mechanisms , such as consent agreements in enforcement actions .
A Quality Management Plan documents how an organization structures its quality system
and describes its quality pol icies and procedures , criteria for and areas of application, and roles,
responsib ilities , and authorities. It also describes an organization 's policies and procedures for
implementing and assessing the effecti v eness of the quality sy stem . This document describes the
elements of a quality system that must be documented in a Quality Management Plan to comply
wi th EPA requ ire m e nts .
1 An equi val ent doc ument ma y not b e called a Quali ty Management Plan but still would document an
organization 's qua li ty syste m and addre ss th e req uired qu a li ty managem ent pract ices desc rib ed in thi s doc um ent.
EPA QA/R-2
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This requirements document presents specifications and instructions for the information
that must be contained in a Quality Management Plan for organizations conducting environmental
programs funded by EPA. The document also discusses the procedures for review , approval,
implementation, and revision of Quality Management Plans . Users of this document should
assume that all of the elements described herein are required in a Quality Management Plan unless
otherwise directed by EPA.
1.2 QUALITY MANAGEMENT PLANS, THE EPA QUALITY SYSTEM,
AND ANSI/ ASQC E4-1994
EPA Order 5360.1 A2 and the applicable Federal regulations (defined above) establish a
mandatory Quality System that applies to all EPA organizations and organizations that are funded
by EPA. Components of this system are illustrated in Figure 1. Organizations must ensure that
data collected for the characterization of environmental processes and conditions are of the
appropriate type and quality for their intended use and that environmental technologies are
designed, constructed, and operated according to defined expectations . Quality system
documentation ( e.g., the Quality Management Plan) is a key component of the EPA Quality
System as shown in Figure 1.
EPA policy is based on the national consensus standard, ANSI/ ASQC E4-1994,
Specifications and Guidelines for Environmental Data Collection and Environmental
Technology Programs . The ANSI/ASQC E4-1994 standard describes the necessary management
and technical elements for developing and implementing a quality system . This standard
recommends using a tiered approach to a quality system. The standard recommends first
documenting each organization-wide quality system in a Quality Management Plan or Quality
Manual (to address requirements of Part A: Management Systems of the standard) and then
documenting the applicability of the quality system to technical activity-specific efforts in a
Quality Assurance Project Plan (QA Project Plan) or similar document (to address the
requirements of Part B : Collection and Evaluation of Environmental Data of the standard).
EPA has adopted this tiered approach for its mandatory Agency-wide Quality System. This
document addresses Part A requirements of the standard .
The Quality Management Plan may be viewed as the 'umbrella' document under which
individual projects are conducted. The Quality Management Plan is then supported by project-
specific QA Project Plans . A QA Project Plan is the 'blueprint' by which individual projects
involving environmental data are implemented and assessed and how specific quality assurance
(QA) and quality control (QC) activities will be applied durin g a particular proj ect. EPA
require ments for Q A Proj ec t Pl an s are defined in EPA R equirem e nts fo r Qu a li ty Assuran ce
Project Pla ns (QA IR -5) (E PA 20 0 1). In some cases , a QA Project Plan and a Quality
Management Plan ma y be combined into a single document that contains both organi zational and
project-specific elements . The QA Manager for the EPA organization sponsoring the work has
the authority to determine when a single document is applicable and will define the content
requirements of such a document.
EP A QA/R-2 2
F in a l
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(e .g ., QAAR\NP)
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PLANNING IMPLEMENTATION ASSESSMENT
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Figure 1. E P A Quality System Components and Tools
EPA QA/R-2 3
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1.3 THE GRADED APPROACH AND THE EPA QUALITY SYSTEM
Implementation of the EPA Quality System is based on the principle of grade d approach .
This principle recogni zes that a 'one si ze fits all ' approach to quality requirements will not work
in an organization as diverse as EPA so managerial controls are applied according to the scope of
the program and/or the intended use of the outputs from a process . For example , the quality
expectations of a fundamental research program are different from that of a regulatory compliance
program because the purpose or intended use of the data is different. Applying a graded approach
means that quality systems for different organizations and programs will vary according to the
specific objectives and needs of the organization. The specific application of the graded approach
principle to Quality Management Plans is described in Section 2 .4.2 .
1.4 INTENDED AUDIENCE
This document specifies the requirements for developing a Quality Management Plan for
organizations that conduct environmental data operations funded by EPA through contracts,
financial assistance agreements, and interagency agreements. EPA organizations may also use this
document to develop their Quality Management Plans since this document is clearer and more
user-friendly than the equivalent requirements defined in Section 3.3 of EPA Order 5360 Al
(EPA 2000), The EPA Quality Manual for Environmental Programs (an internal policy
document). However, the preparation, submission, review, and approval requirements for EPA
organizations are still contained in Section 3.2 of EPA Order 5360 Al as these represent internal
EPA policy.
1.5 PERIOD OF APPLICABILITY
This document shall be valid for a period of up to five years from the official date of
publication. After five years, it shall either be reissued without change, revised, or withdrawn
from the EPA Quality System.
1.6 ADDITIONAL RESOURCES
EPA has issued a checklist for reviewing Quality Management Plans that can be used to
verify if the requirements defined in this document are satisfied. This checklist is available on the
Quality Staff website , www .epa.gov /quality/tools-org.html#qmp .
1.7 SUPERSESSION
This do c um ent replace s QAMS -0 04/80, Int e rim Guidelin es an d Specifica tio ns fo r
Prep a ring Quali ty A ss uran ce Program Plan s (EPA 1980) in its entirety .
EPA Q A/R-2 4
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CHAPTER2
QUALITY MANAGEMENT PLAN REQUIREMENTS
2.1 POLICY
Quality systems supporting environmental programs in volving environmental data or
technology conducted by EPA organizations or by organi zations funded by EPA shall be covered
by an Agency-approved Quality Management Plan.
2.2 PURPOSE
A Quality Management Plan is a management tool that documents an organization 's
quality system for planning, implementing, documenting, and assessing the effectiveness of
activities supporting environmental data operations and other environmental programs. The
Quality Management Plan is used to demonstrate conformance to Part A requirements of
ANSI/ASQC E4-1994.
2.3 APPLICABILITY
These requirements apply to all organizations conducting environmental programs funded
by EPA that acquire, generate , compile, or use environmental data and technology . These
requirements apply to all work performed through contracts, cooperative agreements, interagency
agreements , State-EPA agreements , State, local , and Tribal Financial Assistants/Grants (including
Performance Partnership Grants and Agreements), Research Grants , and in response to statutory
or regulatory requirements and consent agreements . These requirements shall be negotiated into
interagency agreements, including sub-agreements, and, in some cases, included in enforcement
consent agreements and orders . Where specific Federal regulations require the application of QA
and QC activities ( see Section 1.1 ), Quality Management Plans shall be prepared, reviewed , and
approved in accordance with the specifications contained in this document unless explicitly
superseded by regulation.
2.4 GENERAL CONTENT AND DETAIL REQUIREMENTS
2.4.1 General Content
The Qu al ity Manage ment Pl an do c um ent s th e qu a li ty man age ment practi ces whi ch ar e
cri tical to a qu a lity system . Sp eci fic Qu ali ty M anagem ent Plan co nt ent requ irem e nt s are descri bed
in Ch a pter 3. Each organi zation should evaluate th ese requireme nts fo r applic abili ty to th eir
quali ty sy st em . Wh ere a particular element is not re lev ant , an ex planation o f w hy it is not re lev ant
must be provided in the Quality Management Plan. Al so , if the Quality Management Plan
preparer or EPA organi zation sponsoring th e work determines that additional quality management
EPA Q NR-2 5
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Marc h 200 1
elements are useful or necessary for an adequate quality system , these elements should be
discussed in the Quality Management Plan.
2.4.2 Level of Detail
The Quality Management Plan should describe a Quality System that is designed to
support the objectives of the organization. The level of effort expended to develop a Quality
Management Plan should be based on the scope of the program. For example, large grants to a
State government may require a comprehensive quality system and Quality Management Plan,
whereas smaller grants for programs with relatively less significant impacts may require less
substantial documentation.
The Quality Management Plan must be sufficiently inclusive, explicit, and readable to
enable both management and staff to understand the priority which management places on QA
and QC activities, the established quality policies and procedures, and their respective quality-
related roles and responsibilities. The Quality Management Plan must be written so that an
assessment of the suitability and effectiveness of the organization's quality system can be
accomplished. Such assessments will enable management to determine if the quality system meets
the needs of the organization. The Quality Management Plan should be focused on the processes
and procedures used to plan, implement, and assess the programs to which it is applied, and must
include definitions of appropriate authorities and responsibilities for managers and staff.
2.5 QUALITY MANAGEMENT PLAN PREPARATION2
An organization's senior manager is responsible for assuring the preparation of a Quality
Management Plan to cover all environmental programs supported or undertaken by the
organization. Senior management, i.e ., the executives and managers who are responsible and
accountable for mission accomplishment and overall operations of the organization, is responsible
for ensuring that the Quality Management Plan is prepared and that the quality system
documented in the Quality Management Plan satisfies all EPA policy requirements and meets all
statutory, contractual, and assistance agreement requirements for EPA work.
While senior management is responsible for the preparation of the Quality Management
Plan , the actual preparation may be assigned to the organization 's staff so long as it is assured that
all managers support the effort; for example, the preparation of the Quality Management Plan may
be directed b y the QA Manager of the organization. However , it is essential that all management
le ve ls understand fully the content of the Quality Management Plan and concur with its
implementation.
2Specific preparation , submis sion, review , and approval requirements for EPA organizations are contained in
Sec ti on 3 .2 of EPA Order 5360 A I (EP A 2000) as th ese represent internal EPA policy .
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2.6 QUALITY MANAGEMENT PLAN SUBMISSION AND APPROVAL
The Quality Management Plan must be approved and signed by the senior management of
the organization. This will certify that the organi zation has conducted an internal review of the
Quality Management Plan and that management has concurred with its contents .
When a Quality Management Plan is required either by statute , contractual requirement , or
assistance agreement condition, the Quality Management Plan must be submitted for review and
approval to the EPA official responsible for the work. The EPA official may include the
contracting officer 's representative (such as the project officer, work assignment manager, or
delivery order project office), the award official , and the EPA QA Manager. For example, the
review and approval of a State Quality Management Plan that has been submitted as part of a
request for an assistance agreement may be performed by the QA Manager of the office awarding
the assistance agreement.
EPA approval of a Quality Management Plan will be valid for no more than five years for
State, local , and Tribal governments or the length of the extramural agreement for all other
extramural agreement holders. The period for which a Quality Management Plan is valid is
defined in the Quality Management Plan of the EPA organization sponsoring the work.
2. 7 QUALITY MANAGEMENT PLAN REVISIONS
Each organization shall review its Quality Management Plan at least annually to reconfirm
the suitability and effectiveness of the approved quality management practices. The process of
developing, annually reviewing, and revising (as needed) the Quality Management Plan provides
an opportunity for management and staff to clarify roles and responsibilities, address problem
areas, and institutionalize improvements. Having an accurate Quality Management Plan at all
times is an essential element in every quality system , thus changes in QA policy and procedures
shall be documented in the Quality Management Plan in a timely fashion.
In general, a copy of any Quality Management Plan revision(s) made during the year
should be submitted to EPA as a report when such changes occur. However, if significant
changes have been made to the quality system that affect the performance of work for the
Agency, it may be necessary to re-submit the entire Quality Management Plan to EPA for re-
approval. Conditions requiring the revision of an approved Quality Management Plan include:
• expiration of the five-year life span of the Quality Management Plan;
• major changes in mission and responsibilities , such as changes in the delegation
status of a program ;
• re-organization of existing functions that affec t programs covered by the Quality
Management Plan; and
• assessment findings requiring corrective actions and response .
EPA QA/R-2 7
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All appropriate personnel in the organi z ation performing work cove red by the scope of the
Quality Management Plan shall be notified of changes to the quality system and the Quality
Management Plan to keep them informed of the current requirements. This practice should also
include active sub-contractors for relevant work.
EP A Q A/R-2 8
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CHAPTER3
QUALITY MANAGEMENT PLAN ELEMENTS
3.1 CONTENT REQUIREMENTS
The Quality Management Plan documents management practices, including QA and QC
activities, used to ensure that the results of technical work are of the type and quality needed for
their intended use. Accordingly, the Quality Management Plan documents:
• the mission and quality policy of the organization;
• the specific roles, authorities , and responsibilities of management and staff with
respect to QA and QC activities;
• the means by which effective communications with personnel actually performing
the work are assured;
• the processes used to plan, implement, and assess the work performed;
• the process by which measures of effectiveness for QA and QC activities will be
established and how frequently effectiveness will be measured; and
• the continual improvement based on lessons learned from previous experience.
The Quality Management Plan reflects the organization's commitment to quality management
principles and practices, tailored, when appropriate, by senior management to meet the
organization's needs.
The elements to be addressed in a Quality Management Plan include: management and
organization; quality system description; personnel qualifications and training; procurement of
items and services; documentation and records; computer hardware and software; planning;
implementation of work processes; assessment and response; and quality improvement. Specific
requirements for each of these elements are described below in Sections 3 .2 through 3 .1 l. Items
specific to Quality Management Plans developed by EPA organizations under EPA Order 5360.1
A2 (EPA 2000) are noted by "EPA Quality Management Plans." Organizations funded by EPA
do not have to address these EPA-specific items .
It is preferable , but not necessary , that the Quality Management Plan address the
specifications in the same order as presented below to ensure uniformity and a consistent and
complete review. If an existing, approved Quality Management Plan adequately addresses each of
these topics, it should not be rewritten simply to conform to the outline provided here.
EPA QNR-2 9
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3.2 MANAGEMENT AND ORGANIZATION
Purpose -To docum ent the ov erall policy, scope , applicability, and management responsibilities
of the organization 's qu a lity system .
Specifications -Pro vid e the following :
• an approv al page for th e signatures of the organi zation 's management and QA
manager. The approval page may be part of a title page or a separate sheet
following the title page. If EPA approval of the Quality Management Plan is
required , the approval page shall include a section for the signature of the EPA
official (see Section 2.6). For EPA Quality Management Plans3, the approval page
shall contain the signatures of the organization's senior manager, senior line
management (as appropriate), the QA Manager, the Director of the Quality Staff,
and the Assistant Administrator of the Office of Environmental Information ;
• a statement of the organization 's policy on quality assurance , including :
the importance of QA and QC activities to the organization and why,
the general objectives and goals of the quality system, and
the policy for resource allocation for the quality system (EPA Quality
Management Plans must discuss personnel, intramural and extramural
funding, and travel resources);
• an organization chart that identifies all of the components of the organization and ,
in particular, the organizational position and lines of reporting for the QA Manager
(or similar position such as a Quality Manager) and any QA staff;
• a discussion of the authorities of the QA Manager and any other QA staff that also:
documents the organizational independence of the QA Manager from
groups generating, compiling, and evaluating environmental data, and
indicates how the organization will ensure that QA personnel will have
access to the appropriate levels of management in order to plan , assess , and
improve the organization 's quality system ;
• a d isc ussio n o f th e tec hnical ac ti viti es or pro grams that ar e supp o rt ed by th e
qu a lity system inc luding:
th e specifi c programs that requ ire quality m an age ment controls ,
30 rga n izat io ns fund ed by EP A do no t have to addre ss th ese E P A-sp ecific e lements .
E PA Q N R -2 10
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where oversight of delegated , contracted , or other extramural programs is
needed to assure data quality , and
where and how internal coordination of QA and QC activities among the
group's organizational units needs to occur;
• a discussion of how management will assure that applicable elements of the quality
system are understood and implemented in all environmental programs; and
• a discussion of the organization's process for resolving disputes regarding quality
system requirements, QA and QC procedures, assessments, or corrective actions
(requirement for EPA Quality Management Plans only).
3.3 QUALITY SYSTEM COMPONENTS
Purpose -To document how an organization manages its quality system and defines the primary
responsibilities for managing and implementing each component of the system.
Specifications -Provide the following:
• a description of the organization's quality system that includes the principal
components of the system and the roles and implementation responsibilities of
management and staff with regards to these components. These components
include, but are not limited to: 0
quality system documentation
annual reviews and planning
management assessments
training
systematic planning of projects
project-specific quality documentation
project and data assessments;
• a list of the tools for implementing each component of the quality system. These
EP A Q A/R-2
tools include, but are not limited to :
Quality Management Plans (quality system documentation),
Quality Systems Audits (management assessments),
Training Plans (training),
QA Project Plan (project-specific quality do cumentation),
Data Verification and Validation (data assessments);
11
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March 200 1
• a list of an y components of th e organi zation th at develop Quali ty Man age me nt
Plans (or equi val ent docum e nt ) in support of th e organi z ation 's Quality Sy st em
and th e re v iew and appro v al proc edures for such documentation ; and
• a discussion of ho w rol es and responsibiliti es for th e principal compone nt s of th e
Quality System are incorporated into performanc e standards (requirement for EPA
Quality Management Plans only).
3.4 PERSONNEL QUALIFICATION AND TRAINING
Purpose -To document the procedures for assuring that all personnel performing work for an
organization have the necessary skills to effecti v ely accomplish their work.
Specifications -Provide the following:
• a statement of the policy regarding training for management and staff;
• a description of the process( es), including the roles , responsibilities, and authorities
of management and staff, for :
identifying, ensuring, and documenting that personnel have and maintain
the appropriate knowledge, skill , and statutory, regulatory, professional or
other certifications, accreditations , licenses , or other formal qualification
necessary, and
identifying the need for retraining based on changing requirements .
3.5 PROCUREMENT OF ITEMS AND SERVICES
Purpose -To document the procedures for purchased items and services that directly affect the
quality of environmental programs.
Specifications -
Describe or reference the process( es), including the roles , responsibilities , and authorities
of man age m ent and staff, p ert aini n g to all appropriate proc urem ent docume nts or extramural
agree men ts, including grants, coo perative agr eements, and contracted a nd sub co ntracted
ac tivities , involving or affec tin g en vironmenta l programs , for :
• r eviewin g and approv in g proc urem ent doc um ent s (and an y chan ge s to the se
documents) to ensure that procurement docum ents are accurate , compl ete , and
clearly describe :
EPA QA/R-2 12
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the item or service needed,
the associated technical and quality requirements,
the quality system elements for which the supplier is responsible, and
how the supplier's conformance to the customer's requirements will be
verified;
• review and approval of all applicable responses to solicitations to ensure that these
documents :
satisfy all technical and quality requirements , and
provide evidence of the supplier's capability to satisfy EPA quality system
requirements as defined in the extramural agreement or applicable Federal
Regulation (requirement for EPA Quality Management Plans only);
• ensuring that procured items and services are of acceptable quality, including the
review of objective evidence of quality for applicable items and services furnished
by suppliers and subcontractors, source selection, source inspections, supplier
audits, and examination of deliverables;
• review and approval procedures for mandatory quality-related documentation
(e.g., Quality Management Plans or QA Project Plans) from suppliers (requirement
for EPA Quality Management Plans only);
• policies and criteria for delegations of EPA authority to review and approve
mandatory quality-related documentation ( e .g., Quality Management Plans or QA
Project Plans) from suppliers consistent with Chapter 2.2 of EPA Order 5360 Al
(requirement for EPA Quality Management Plans only); and
• ensuring that EPA quality-related contracting policies, as defined by the Federal
Acquisition Regulations, Office of Federal Procurement Policy, and the EPA
Contracts Management Manual [EPA Order 1900 (EPA 1998)], are satisfied
(requirement for EPA Quality Management Plans only).
3.6 DOCUMENTS AND RECORDS
Purpose -To document appropriate controls for quality-related documents and records
determined to be important to the mission of the organization .
Specifications -Describe or reference the proc ess (e s), including the roles , responsibilities , and
a uthorities of management and staff, for :
• identifying quality-related documents and records (both printed and electronic)
requiring control;
E PA Q NR-2 13
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• preparing, reviewing for conformance to technical and quality system
requirements , approving, issuing , using , authenticating, and revising documents
and records;
• ensuring that records and documents accurately reflect completed work;
• maintaining documents and records including transmittal , distribution , retention
(including retention times), access, preservation (including protection from
damage, loss , and deterioration), traceability, retrieval, removal of obsolete
documentation, and disposition;
• ensuring compliance with all applicable statutory , regulatory, and EPA
requirements for documents and records [EPA Quality Management Plans shall
ensure compliance with EPA Order 2160 (EPA 1984) and EPA Directive 2100,
Chapter 10 (EPA 1998)]; and
• establishing and implementing appropriate chain of custody and confidentiality
procedures for evidentiary records.
3.7 COMPUTER HARDWARE AND SOFTWARE
Purpose -To document how the organization will ensure that computer hardware and software
satisfies the organization 's requ1rements.
Specifications -Describe or reference the process(es), including the roles, responsibilities, and
authorities of management and staff, for:
• developing, installing, testing (including verification and validation), using,
maintaining, controlling, and documenting computer hardware and software used
in environmental programs to ensure it meets technical and quality requirements
and directives from management [EPA Quality Management Plan specifications
must be consistent with EPA Directive 2100 (EPA 1998)];
• assessing and documenting the impact of changes to user requirements and/or the
hardware and software on performance ;
• evaluating purchased hardware and software to ensure it meets user requirements
and complies with applicable contractual requirem ents and standards;
• ensuring that data and information produced from , or collected by , computers
EPA QNR-2
meet applicable information resource management requirements and standards; and
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• ensuring that applicable EPA requirements for inform ation resources management
are addressed [EPA Directive 2100 (EPA 1998)] including security and privacy
requirements (requirement for EPA Quality Management Plans only).
Computer software covered by this requirement includes , but is not limited to , design, data
handling, data analysis, modeling of environmental process es and conditions , operations, or
process control of environmental technology system (including automated data acquisition and
laboratory instrumentation), data bases containing environmental data.
3.8 PLANNING
Purpose -To document how individual data operations will be planned within the organization to
ensure that data or information collected are of the needed and expected quality for their desired
use.
Specifications -Describe or reference the process(es), including the roles , responsibilities, and
authorities of management and staff, for :
• planning environmental data operations using a systematic planning process4 which
includes:
the identification and involvement of the project manager, sponsoring
organization and responsible official, rroject personnel, stakeholders,
scientific experts, etc . (e.g., all customers and suppliers);
a description of the project goal, objectives, and questions and issues to be
addressed;
the identification of project schedule, resources (including budget),
milestones, and any applicable requirements ( e.g., regulatory and
contractual requirements);
the identification of the type and quantity of data needed and how the data
will be used to support the project's objectives;
the specification of performance criteria for measuring quality ;
4EP A has developed a systematic planning process called the Data Quality Objectives (DQO) Process [See the
EPA Guidance for the Data Quality Objectives Process (QA IG-4) (EPA 2000)]. While not mandatory, the DQO
Proce ss is the recommended planning approach for man y EPA data collection activi ti es .
EPA QA/R-2 15
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the specification of needed QA and QC activities to assess the quality
performance criteria (e.g., QC samples for both the field and laboratory,
audits, technical assessments, performance evaluations, etc.);
a description of how , when, and where the data will be obtained (including
existing data) and identification of any constraints on data collection; and
a description of how the acquired data will be analyzed (either in the field
or the laboratory), evaluated (i .e., QA review , verification, validation), and .
assessed against its intended use and the quality performance criteria;
• developing, reviewing, approving, implementing, and revising a QA Project Plan or
equivalent planning document [see EPA Requirements for Quality Assurance
Project Plans (QA IR-5) (EPA 2001)]; and
• evaluating and qualifying data collected for other purposes or from other sources,
including the application of any statistical methods, for a new use.
3.9 IMPLEMENTATION OF WORK PROCESSES
Purpose -To document how work processes will be implemented within the organization to
ensure that data or information collected are of the needed and expected quality for their desired
use.
Specifications -Describe or reference the process(es), including the roles, responsibilities, and
authorities of management and staff for:
• ensuring that work is performed according to approved planning and technical
documents;
• identification of operations needing procedures ( e.g., standardized, special, or
critical operations), preparation (including form, content, and applicability),
review, approval, revision, and withdrawal of these procedures; and policy for use;
and
• controlling and documenting the release, change, and use of planned procedures,
including any necessary approvals, specific times and points for implementing
changes , remov al of obsolete documentation from work areas , and verification that
the changes are made as prescribed .
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3.10 ASSESSMENT AND RESPONSE
Purpose -To document how the organization will determine the suitability and effectiveness of
the implemented quality system and the quality performance of the environmental programs to
which the quality system applies.
Specifications -Describe or reference the process(es), including the roles, responsibilities, and
authorities of management and staff, pertaining to both management and technical assessments
for:
• assessing the adequacy of the quality system at least annually;
• planning, implementing, and documenting assessments and reporting assessment
results to management including how to select an assessment tool, the expected
frequency of their application to environmental programs, and the roles and
responsibilities of assessors;
• determining the level of competence, experience, and training necessary to ensure
that personnel conducting assessments are technically knowledgeable, have no real
or perceived conflict of interest, and have no direct involvement or responsibility
for the work being assessed;
• ensuring that personnel conducting assessments have sufficient authority, access to
programs , managers, documents, and records, and organizational freedom to:
identify both quality problems and noteworthy practices,
propose recommendations for resolving quality problems, and
independently confirm implementation and effectiveness of solutions;
• management's review and response to findings;
• identifying how and when corrective actions are to be taken in response to the
findings of the assessment , ensuring corrective actions are made promptly,
confirming the implementation and effectiveness of any corrective action, and
documenting (including the identification of root causes, the determination of
whether the problem is unique or has more generic implications , and
recommendation of procedures to prevent recurrence) such actions ; and
• addressing any disputes encountered as a result of assessments .
Available assessment tools include quality systems audits, management systems reviews, peer
reviews, technical reviews, performance evaluations, data quality assessments , readiness reviews ,
technical systems audits , and surveillance.
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3.11 QUALITY IMPROVEMENT
Purpose -To document how the organization will improve the organization's quality system .
Specifications -Identify who (organizationally) is responsible for identifying, planning,
implementing, and evaluating the effectiveness of quality improvement activities and describe the
process to ensure continuous quality improvement, including the roles and responsibilities of
management and staff, for:
• ensuring that conditions adverse to quality are :
prevented ,
identified promptly including a determination of the nature and extent of
the problem,
corrected as soon as practical , including implementing appropriate
corrective actions and actions to prevent reoccurrence,
documenting all corrective actions , and
tracking such actions to closure;
• encouraging staff at all levels to establish communications between customers and
suppliers, identify process improvement opportunities, and identify and offer
solutions to problems.
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REFERENCES
40 CFR 30, Code of Federal Regulations , "Grants and Agreements With Institutions of Higher
Education, Hospitals , and Other Non-Profit Organi z ations."
40 CFR 31 , Code of Federal Regulations, "Uniform Administrative Requirements for Grants and
Cooperative Agreement to State and Local Governments ."
40 CFR 35 , Code of Federal Regulations , "State and Local Assistance ."
48 CFR 46, Code of Federal Regulations, "Federal Acquisition Regulations ."
ANSU ASQC E4-1994, Specifications and Guidelin es for Quality Sy stems for Environm ental
Data Collection and Environmental Technolo gy Programs , American National Standard,
January 1995.
EPA Directive 2100 (1999), Information Resources Management Policy Manual, U.S .
Environmental Protection Agency, Washington, DC.
EPA Order 1900 (February 1998), Contracts Management Manual, U.S. Environmental
Protection Agency, Washington, DC.
EPA Order 2160 (July 1984), Records Management Manual , U.S. Environmental Protection
Agency, Washington, DC.
EPA Order 5360 Al (May 2000), EPA Quality Manual for Environmental Programs , U.S .
Environmental Protection Agency, Washington , DC .
EPA Order 5360.1 A2 (May 2000), Policy and Program Requirements for the Mandatory
Quality Assurance Program, U.S . Environmental Protection Agency, Washington, DC .
U .S . Environmental Protection Agency, 2001. EPA Requirements for Quality Assurance Project
Plans (QA IR -5), EPA/240/8-01/003 , Office of En v ironmental Information.
U.S . Environmental Protection Agency, 2000. Guidance for th e Data Quality Objectives Process
(QA I G-4), EP A/600/R-96/055 , Office of En v ironm ental Information.
U .S . Env ironmenta l Protect io n Agency, 1980 . Int erim Guidelines and Sp ec ifications fo r
Preparing Quality Assura nce Progra m Pla ns, Q AMS-004 /80, O ffi ce of R es earch and
D eve lopm ent.
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APPENDIX A
TERMS AND DEFINITIONS
assessment -the evaluation process used to measure the performance or effectiveness of a system
and its elements. As used here , assessment is an all-inclusive term used to denote any of the
following: audit , performance evaluation , management systems review , peer review , inspection, or
surveillance.
audit ( quality) -a systematic and independent examination to determine whether quality
activities and related results comply with planned arrangements and whether these arrangements
are implemented effectively and are suitable to achieve objectives.
data quality assessment -a statistical and scientific evaluation of the data set to determine the
validity and performance of the data collection design and statistical test , and to determine the
adequacy of the data set for its intended use.
design -specifications, drawings, design criteria, and performance requirements. Also the result
of deliberate planning, analysis, mathematical manipulations, and design processes .
environmental conditions -the description of a physical medium (e.g., air, water, soil , sediment)
or biological system expressed in terms of its physical, chemical, radiological, or biological
characteristics.
environmental data -any measurements or information that describe environmental processes,
location, or conditions; ecological or health effects and consequences; or the performance of
environmental technology. For EPA, environmental data include information collected directly
from measurements, produced from models, and compiled from other sources such as data bases
or the literature.
environmental data operations -work performed to obtain, use, or report information
pertaining to environmental processes and conditions.
environmental programs -work or activities involving the environment, including but not
limited to : characterization of environmental processes and conditions; environmental monitoring ;
environmental research and development ; the design, construction, and operation of
environmental technologies ; and laboratory operations on environmental samples .
environmental technology -an all-inclusive term used to describe pollution contro l devices and
systems , waste treatment processes and storage facilities, and site remediation technologies and
their components that may be utilized to remove pollutants or contaminants from or prevent them
from entering the environment. Examples include wet scrubbers (air), soil washing (soil),
granulated activated carbon unit (water), and filtration (air, water). Usually , this term will apply
EPA QA/R-2 A-1
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to hardware-based systems ; however, it will also apply to methods or techniques used for
pollution prevention , pollutant reduction, or containment of contamination to prevent further
movement of the contaminants, such as capping, solidification or vitrification, and biological
treatment.
graded approach -the process of basing the level of application of managerial controls applied
to an item or work according to the intended use of the results and the degree of confidence
needed in the quality of the results.
independent assessment -an assessment performed by a qualified individual , group , or
organization that is not a part of the organization directly performing and accountable for the
work being assessed.
inspection -examination or measurement of an item or activity to verify conformance to specific
requirements.
management -those individuals directly responsible and accountable for planning, implementing,
and assessing work.
management system -a structured, non-technical system describing the policies, objectives,
principles, organizational authority, responsibilities, accountability, and implementation plan of an
organization for conducting work and producing items and services .
management systems review -the qualitative assessment of a data collection operation and/or
organization(s) to establish whether the prevailing quality management structure, policies,
practices, and procedures are adequate for ensuring that the type and quality of data needed are
obtained.
objective evidence -any documented statement of fact, other information or record, either
quantitative or qualitative, pertaining to the quality of an item or activity, based on observations,
measurements, or tests which can be verified.
organization -a company, corporation, firm , enterprise, or institution, or part thereof, whether
incorporated or not, public or private, that has its own functions and administration .
peer review -a documented critical review of work by qualified individuals (or organizations)
who are independent of those who perform ed the work , but are coll ecti vel y equi v alent in technical
e xpertise. A peer re v iew is conducted to ensure that acti v iti es are tec hnicall y adequate ,
competently performed , properly documented , and satisfy established technical and quality
requirements. The peer review is an in-depth assessment of the assumptions, calculations,
extrapolations , alternate interpretations , methodology, acceptance criteria, and conclusions
pertaining to specific work and of the documentation that supports them .
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performance evaluation -a type of audit in which the quantitati ve d ata generated in a
measurement system are obtained independ ently and compared w ith routinel y obtained data to
evaluate the proficiency of an anal yst or laboratory.
process -a set of interrelated resource s and acti vities which transforms inputs into outputs.
Examples of processes include anal y sis , design , data collection , op eration , fabrication , and
calculation.
quality -the totality of features and characteristics o f a product or service that bear on its ability
to meet the stated or implied needs and expectations of the user.
quality assurance (QA) -an integrated system of management activities involv ing planning ,
implementation , documentation, assessment , reporting , and quality improvement to ensure that a
process, item , or service is of the type and quality needed and expected by the client.
quality assurance project plan -a formal document describing in comprehensi ve detail the
necessary QA, QC, and other technical acti vities that must be implemented to ensure that the
results of the work performed will satisfy the stated performance criteria.
quality control (QC) -the overall system of technical activities that measures the attributes and
performance of a process , item, or service against defined standards to verify that they meet the
stated requirements established by the customer; operational techniques and activities that are
used to fulfi ll requirements for quality.
quality improvement -a management program for improving the quality of operations . Such
management programs generally entail a formal mechanism for encouraging worker
recommendations with timely management evaluation and feedback or implementation.
quality management -that aspect of the overall management system of the organization that
determines and implements the quality policy. Quality management includes strategic planning,
allocation of resources , and other systematic activities ( e.g., planning, implementation,
documentation, and assessment) pertaining to the quality system.
quality management plan -a document that describes the quality system in terms of the
organizational structure , functional responsib ilities o f m anagement and staff, lines of authority,
and required interfaces for those planning, impl ementing , and assessing all activities conducted .
quality system -a stru ctured and do cumented managemen t system descri b in g th e policies,
obj ec tive s, principl es, org ani zation al aut hori ty, res ponsi bil ities, ac countabili ty, and impl em entation
plan o f an organi zation for ensurin g quality in its w ork proc esses , products (it ems ), and se rvi ces.
The quality system provides the fram ew ork for planning, implementing, documenting , and
assessing work performed by the organi zation and for carrying out required QA and QC acti vities .
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readiness review -a systematic , documented review of the readiness for the start-up or continued
use of a facility , process, or activity . Readiness reviews are typicall y conducted before proceeding
beyond project milestones and prior to initiation of a major phase of work .
record -a completed document that prov ides objective evidence of an item or process . Records
may include photographs, drawings, magnetic tape , and other data recording media.
self-assessment -assessments of work conducted by individuals, groups, or organizations directly
responsible for overseeing and/or performing the work.
specification -a document stating requirements and which refers to or includes drawings or other
relevant documents. Specifications should indicate the means and the criteria for determining
conformance.
standard operating procedure (SOP) -a written document that details the method for an
operation, analysis, or action with thoroughly prescribed techniques and steps, and that is
officially approved as the method for performing certain routine or repetitive tasks .
supplier -any individual or organization furnishing items or services or performing work
according to a procurement document or financial assistance agreement. This is an all-inclusive
term used in place of any of the following : vendor, seller, contractor, subcontractor, fabricator, or
consultant.
surveillance (quality) -continual or frequent monitoring and verification of the status of an
entity and the analysis of records to ensure that specified requirements are being fulfilled .
technical review -a documented critical review of work that has been performed within the state
of the art. The review is accomplished by one or more qualified reviewers who are independent
of those who performed the work, but are collectively equivalent in technical expertise to those
who performed the original work. The review is an in-depth analysis and evaluation of
documents, activities, material , data, or items that require technical verification or validation for
applicability, correctness, adequacy, completeness, and assurance that established requirements
are satisfied.
technical systems audit -a thorough, systematic, on-site, qualitative audit of facilities ,
equipment, personnel , training , procedures, record keeping , data validation, data managem ent ,
and reporting aspects of a system .
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United States
Environmental Protection
Agency
Office of Environmental
Information
Washington , DC 20460
EP N2 40/B-O 1/003
March 2001 EXHIBIT A-3
&EPA EPA Requirements for Quality
Assurance Project Plans
EPA QA/R-5
FOREWORD
The U .S. Environm ental Protection Agency (EPA) has developed the Quality Assurance
Project Plan (QA Project Plan) as a tool for project managers and planners to document the type
and quality of data n eeded for en vironmental decisions arid to describe the methods for collecting
and assessin g those data . The de velopment, review , appro val , and implementation of the QA
Project Plan is part ofEPA 's mandatory Quality System. The EPA Quality System requires all
organi zations to de velop and operate management structures and processes to ensure that data
used in Agency decisions are of the type and quality needed for their intended use . The QA
Project Plan is an integral part of the fundamental principles and practices that form the
foundation of the EPA Quality System .
This document provides the QA Project Plan requirements for organi zations that conduct
environmental data operations on behalf of EPA through contracts , financial assistance
agreements , and interagency agreements ; however, it may be used by EPA as well. It contains the
same requirements as Chapter 5 of EPA Order 5360 Al (EPA 2000), The EPA Quality Manual
for Environmental Programs , which has been developed for internal use by EPA organizations.
A companion document, EPA Guidance for Quality Assurance Project Plan s (QA I G-5) (EPA
1998) provides suggestions for both EPA and non-EPA organizations on preparing, reviewing,
and implementing QA Project Plans that satisfy the requirements defined in this document.
This document is one of the EPA Quality Sy stem Series documents which d~scribe EPA
policies and procedures for plannin~, implementing, and assessing the effectiveness of a quality
system. Questions regarding this document or other EPA Quality Sy stem Series documents
should be directed to:
U.S . EPA
Quality Staff (281 IR)
Washington, DC 20460
Phone: (202) 564-6830
FAX: (202) 565-2441
e-mail: quality @ epa.gov
Copies of Quali ty Sy st em Ser ies documents may be obtained from the Quali ty Staff or by
downloadin g them from th e Quality Staff Home Page:
www .epa.g ov/qu a li ty
EP A QA/R-5
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ACKNOWLEDGMENTS
This document reflects the collaborative e fforts of many quality management professionals
who participate in the challenge for continual improvement in quality sy stems supporting
en v ironmental programs . These indi viduals , representing the EPA , other Federal agencies , State
and local go vernments, and pri vate industry, reflect a diverse and broad range of needs and
experiences in environmental data collection programs. Their contributions and the
comprehensive reviews during the development of this document are greatly appreciated.
EP A Q A/R-5 11
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TABLE OF CONTENTS
CHAPTER 1. INTRODUCTION ............................................. 1
1.1 BACKGROUND ................................................ 1
1.2 QA PROJECT PLANS , THE EPA QUALITY SYSTEM , AND
ANSI/ ASQC E4-l 994 ............................................ 2
1.3 THE GRADED APPROACH AND THE EPA QUALITY SYSTEM ........ 4
1.4 INTENDED AUDIENCE ......................................... 4
1.5 PERIOD OF APPLICABILITY ..................................... 4
1.6 ADDITIONAL RESOURCES ...................................... 4
1.7 SUPERSESSION ................................................ 5
CHAPTER 2. QA PROJECT PLAN REQUIREMENTS .......................... 7
2 .1 POLICY ....................................................... 7
2 .2 PURPOSE ..................................................... 7
2.3 APPLICABILITY ............................................... 7
2.4 GENERAL CONTENT AND DETAIL REQUIREMENTS ................ 7
2.4.1 General Content ........................................... 7
2.4.2 Level of Detail ............................................ 8
2.5 QA PROJECT PLAN PREPARATION AND APPROVAL ................ 8
2.6 QA PROJECT PLAN IMPLEMENTATION ........................... 9
2. 7 QA PROJECT PLAN REVISION ................................... 9
CHAPTER 3. QA PROJECT PLAN ELEMENTS ............................... 11
3 .1 CONTENT REQUIREMENTS .................................... 11
3.2 GROUP A: PROJECT MANAGEMENT ............................ 12
3.2.l Al -Title and Approval Sheet ................................ 13
3.2.2 A2 -Table of Contents ..................................... 13
3 .2.3 A3 -Distribution List ...................................... 14
3.2.4 A4 -Project/Task Organization ............................... 14
3.2.5 A5 -Problem Definition/Background .......................... 14
3.2.6 A6 -Project/Task Description ................................ 14
3.2.7 A7 -Quality Objectives and Criteria ........................... 15
3 . 2 . 8 A8 -Special Trainin g/Certification . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
3 .2 .9 A9 -Documents and Records ................................ 15
3 .3 GROUP B : DATA GENERATION AND ACQUISITION ............... 15
EPA QNR-5
3 .3 .1 Bl-Sampling Proc ess Design (Ex peri mental Design) .............. 16
3 .3 .2 82 -Sampling Methods ......................... · ........... 17
3 .3 .3 B3 -Sample Handling and Custody ............................ 17
3 .3.4 84 -Analytical Methods .................................... 17
3 .3 .5 B5 -Quality Control ....................................... 18
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3.3.6 86 -Instrument/Equipment Testing, Inspection, and Maintenance ..... 18
3.3.7 87 -Instrument/Equipment Calibration and Frequency ............. 18
3.3 .8 B8 -Inspection/ Acceptance of Supplies and Consumables ........... 19
3 .3.9 B9 -Non-direct Measurements ............................... 19
3 .3 .10 BIO-Data Management .................................... 19
3.4 GROUP C: ASSESSMENT AND OVERSIGHT ...................... 20
3.4.1 Cl -Assessments and Response Actions ........................ 20
3.4.2 C2 -Reports to Management ................................ 20
3 .5 GROUP D: DATA VALIDATION AND USABILITY .................. 21
3.5.1 Dl -Data Review, Verification, and Validation ................... 21
3.5.2 D2 -Verification and Validation Methods ....................... 21
3.5.3 D3 -Reconciliation with User Requirements ..................... 21
· REFERENCES ........................................................... 23
APPENDIX A. CROSSWALKS AMONG QUALITY ASSURANCE DOCUMENTS . A-1
A.I BACKGROUND .............................................. A-1
A.2 CROSSWALK BETWEEN EPA QA/R-5 AND QAMS-005/80 ........... A-1
A.3 CROSSWALK BETWEEN THE DQO PROCESS
AND THE QA PROJECT PLAN .................................. A-3
APPENDIX B. TERMS AND DEFINITIONS ................................. 8-1
FIGURES
Page
1. EPA Quality System Components and Tools ..................................... 3
2. Example Document Control Format .......................................... 14
TABLES
Page
1. Group A : Project Management Elements ...................................... 13
2. Group B: Data Generation and Acquisition Elements ............................. 16
3. Group C: Assessment and Ove rsight Elements .................................. 20
4 . Group D : Data Validation and Usabi lity Ele ments ................................ 21
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1.1 BACKGROUND
CHAPTER 1
INTRODUCTION
Environmental programs conducted by or funded by the U.S. Environmental Protection
Agency (EPA) involve many diverse activities that address complex environmental issues. The
EPA annually spends several hundred million dollars in the collection of environmental data for
scientific research and regulatory decision making. In addition, non-EPA organizations may
spend as much as an order of magnitude more each year to respond to Agency requirements. If
decision makers (EPA and otheiwise) are to have confidence in the quality of environmental data
used to support their decisions, there must be a structured process for quality in place.
A structured system that describes the policies and procedures for ensuring that work
processes, products, or services satisfy stated expectations or specifications is called a quality
system. All organizations conducting environmental programs funded by EPA are required to
establish and implement a quality system. EPA also requires that all environmental data used in
decision making be supported by an approved Quality Assurance Project Plan (QA Project Plan).
This requirement is defined in EPA Order 5360.1 A2 (EPA 2000), Policy and Program
Requirements for the Mandatory Agency-wide Quality System, for EPA organizations. Non-EPA
organizations funded by EPA are required to develop a QA Project Plan through:
• 48 CFR 46, for contractors;
• 40 CFR 30, 31, and 35 for assistance agreement recipients; and
• other mechanisms, such as consent agreements in enforcement actions.
The QA Project Plan integrates all technical and quality aspects of a project, including
planning, implementation, and assessment. The purpose of the QA Project Plan is to document
planning results for environmental data operations and to provide a project-specific "blueprint"
for obtaining the type and quality of environmental data needed for a specific decision or use . The
QA Project Plan documents how quality assurance (QA) and quality control (QC) are applied to
an environmental data operation to assure that the results obtained are of the type and quality
needed and expected.
The ultimate success of an environmental program or project dep ends on the quality of the
environmental data collected and used in decision-making , and this may depend significantly on
the adequacy of the QA Project Plan and its effective implementation . Stakeholders (i.e., the data
users , data producers , decision makers, etc.) shall be involved in the planning process for a
program or project to ensure that their needs are defined adequately and addressed. While time
spent on such planning may seem unproductive and costly , the penalty for ineffective planning
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includes greater cost and lost time. Therefore , EPA requires that a systematic planning process be
used to plan all environmental data operations. To support this requirement , EPA has developed
a process called the Data Quality Objectives (DQO) Process . The DQO Process is the Agency's
preferred planning process and is described in the Guidanc e for the Data Quality Objectives
Pro cess (QA /G-4) (EPA 2000b ). The QA Project Plan documents the outputs from systematic
planning.
This requirements document presents specifications and instructions for the information
that must be contained in a QA Project Plan for environmental data operations funded by EPA.
The document also discusses the procedures for review, approval, implementation, and revision of
QA Project Plans. Users of this document should assume that all of the elements described herein
are required in a QA Project Plan unless otherwise directed by EPA.
1.2 QA PROJECT PLANS, THE EPA QUALITY SYSTEM, AND ANSI/ASQC
E4-1994
EPA Order 5360.1 A2 and the applicable Federal regulations ( defined above) establish a
mandatory Quality System that applies to all EPA organizations and organizations funded by
EPA. Components of the EPA Quality System are illustrated in Figure 1. Organizations must
ensure that data collected for the characterization of environmental processes and conditions are
of the appropriate type and quality for their intended use and that environmental technologies are
designed, constructed, and operated according to defined expectations. The QA Project Plan is a
key project-level component of the EPA Quality System.
EPA policy is based on the national consensus standard, ANSI/ ASQC E4-1994,.
Specifications and Guidelines for Environmental Data Collection and Environmental
Technology Programs. The ANSI/ASQC E4-1994 standard describes the necessary management
and technical elements for developing and implementing a quality system. This standard
recommends using a tiered approach to a quality system . This standard recommends first
documenting each organization-wide quality system in a Quality Management Plan or Quality
Manual (to address requirements of Part A: Management Systems of the standard) and then
documenting the applicability of the quality system to technical activity-specific efforts in a QA
Project Plan or similar document (to address the requirements of Part B : Collection and
Evaluation of Environmental Data of the standard). EPA has adopted this tiered approach for its
mandatory Agency-wide Quality System. This document addresses Part B requirements of the
standard.
A Quality Manage ment Plan, or equ iv alent Quality Manual , do cuments ho w an
organi zation structures its quality system, defines and assign s QA and QC responsibilities, and
describes the processes and procedures used to plan , implement, and assess the effectiveness of
the quality system. The Quality Management Plan may be viewed as the "umbrella" document
under which individual projects are conducted . EPA requirements for Quality Management Plans
are defined in EPA Requirements for Quality Management Plans (QA IR-2) (EPA 2001). The
EPA QN R-5 2
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March 2001
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Defensible Products and Decisions
Figure 1. EPA Quality System Components and Tools
EPA Q NR-5 3
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.,,
Quality Management Plan is then supported by project-specific QA Project Plans. In some cases,
a QA Project Plan and a Quality Management Plan may be combined into a single document that
contains both organizational and project-specific elements. The QA Manager for the EPA
organization sponsoring the work has the authority to determine when a single document is
applicable and will define the content requirements of such a document.
1.3 THE GRADED APPROACH AND THE EPA QUALITY SYSTEM
Recognizing that a "one size fits all" approach to quality requirements will not work in
organizations as diverse as EPA, implementation of the EPA Quality System is based on the
principle of graded approach. Applying a graded approach means that quality systems for
different organizations and programs will vary according to the specific objectives and needs of
the organization. For example, the quality expectations of a fundamental research program are
different from that of a regulatory compliance program because the purpose or intended use of the
data is different. The specific application of the graded approach principle to QA Project Plans is
described in Section 2.4.2 .
1.4 INTENDED AUDIENCE
This document specifies the requirements for developing QA Project Plans for
organizations that conduct environmental data operations funded by EPA through contracts,
financial assistance agreements, and interagency agreements. EPA organizations may also use this
document to develop QA Project Plans since this document is clearer and more user-friendly than
the eqmvalent requirements defined in Section 5.3 of EPA Order 5360 Al (EPA 2000), The EPA
Quality Manual for Environmental Programs (an internal policy document). However, the
preparation, submission, review , and approval requirements for EPA organizations are still
contained in Section 5.2 of EPA Order 5360 Al as these represent internal EPA policy.
1.5 PERIOD OF APPLICABILITY
This document shall be valid for a period of up to five years from the official date of
publication. After five years, it shall either be reissued without change, revised, or withdrawn
from the EPA Quality System .
1.6 ADDITIONAL RESOURCES
Guidance on preparin g QA Project Plans may be found in a companion document , EPA
Guida nce fo r Qua lity Ass urance Project Plans (QAI G-5) (E P A 199 8). This guidance di scuss es
the application of th e QA Project Plan requirements and pro v ides ex amples . Other document s
that pro vide guidance on activities critical to successful en vironmental data operations and
complement the QA Project Plan preparation effort include :
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• Guidance for the Data Quality Objectives Process (QA !G-4), (EPA 2000b)
• Guidance for the Preparation of Standard Operating Procedures for Quality-
Related Documents (QA IG-6), (EPA 1995)
• Guidance for Data Quality Assessment: Practical Methods for Data Analy sis
(QA I G-9), (EPA 2000a)
1.7 SUPERSESSION
This docwnent replaces QAMS-005/80, Interim Guidelines and Specifications for
Preparing Quality Assurance Project Plans (EPA 1980) in its entirety.
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E PA Q A/R-5 6
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CHAPTER2
QA PROJECT PLAN REQUIREMENTS
2.1 POLICY
All work funded by EPA that invol v es the acquisition of environmental data generated
from direct measurement activities , collected from oth er sources , or compiled from computeri zed
data bases and information systems shall be implemented in accordance with an appro ved QA
Project Plan . The QA Project Plan will be developed using a systematic planning process based
on the graded approach. No work covered by this requirement shall be implemented without an
approved QA Project Plan available prior to the start of the work except under circumstances
requiring immediate action to protect human health and the environment or operations conducted
under police powers .
2.2 PURPOSE
The QA Project Plan documents the planning, implementation, and assessment procedures
of, and how specific QA and QC activities will be applied during a particular project. The QA
Project Plan demonstrates conformance to Part B requirements of ANSI/ ASQC E4-1994.
2.3 APPLICABILITY
These requirements apply to all environmental programs funded by EPA that acquire,
generate, or compile environmental data including work performed through contracts , work
assignments, delivery orders, task orders, cooperative agreements, interagency agreements, State-
EP A agreements, State, local and Tribal Financial Assistance/Grants , Research Grants , and in
response to statutory or regulatory requirements and consent agreements. These requirements are
negotiated into interagency agreements, including sub-agreements, and, in some cases , are
included in enforcement settlement and consent agreements and orders . Where specific Federal
regulations require the application of QA and QC activities (see Section 1.1 ), QA Project Plans
shall be prepared , reviewed, and approved in accordance with the specifications contained in this
document unless explicitly superseded by the regulation .
2.4 GENERAL CONTENT AND DETAIL REQUIREMENTS
2.4.1 General Content
The QA Proj ect Pl an must be co mp ose d of stand ard ized , rec ogni z abl e e lem ents co verin g
th e entire proj ect from planning, throu gh impl em ent ati on , to asse ss ment. Chapter 3 o f this
docum ent describes specific elements to address for QA Project Plans submitted to EPA. In some
cases , it ma y be necessary to add special requirements to the QA Project Plan. The EPA
organi za ti on sponsorin g th e work has the a uthori ty to d e fin e any sp eci al requirements beyond
E P A QA/R-5 7
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those listed in this document. If no additional requirements are specified , the QA Project Plan
shall address all required elements. Each EPA organi zation defines their organizational-specific
requirements for QA Project Plan documentation in their Quality Management Plan. All
applicable elements defined by the EPA organization sponsoring the work must be addressed .
While most QA Project Plans will describe project-or task-specific activities , there may be
occasions when a generic QA Project Plan may be more appropriate. A generic QA Project Plan
addresses the general , common activities of a program that are to be conducted at multiple
locations or over a long period of time; for example, it may be useful for a large monitoring
program that uses the same methodology at different locations. A generic QA Project Plan
describes, in a single document, the information that is not site or time-specific but applies
throughout the program. Application-specific information is then added to the approved QA
Project Plan as that information becomes known or completely defined . A generic QA Project
Plan shall be reviewed periodically to ensure that its content continues to be valid and applicable
to the program over time.
2.4.2 Level of Detail
The level of detail of the QA Project Plan should be based on a graded approach so that
the level of detail in each QA Project Plan will vary according to the nature of the work being
performed and the intended use of the data. As a result, an acceptable QA Project Plan for some
environmental data operations may require a qualitative discussion of the experimental process
and its objectives while others may require extensive documentation to adequately describe a
complex environmental program.
2.5 QA PROJECT PLAN PREPARATION AND APPROVAL
The QA Project Plan may be prepared by an EPA organization, a contractor, an assistance
agreement holder, or another Federal agency under an interagency agreement. Except where
specifically delegated in the Quality Management Plan of the EPA organization sponsoring the
work, all QA Project Plans prepared by non-EPA organizations must be approved by EPA before
implementation.
The QA Project Plan shall be reviewed and approved by an authorized EPA reviewer to
ensure that the QA Project Plan contains the appropriate content and level of detail. The
authorized reviewer, for example the EPA project manager' with the assistance and approval of
th e EPA QA Manager or by the EPA QA Manager alone, are d e fined by the EPA organi zation 's
Qua lit y M an age m ent Plan . In some case s , the authority to review and appro ve QA Proj ec t Plans
is de le gated to another p art of the EPA organi z ation covered by the same Quality M anage ment
1 This term refers to the EPA official responsible for the project. This indi v idual may also be call ed Project Officer,
De livery Order Project Officer, Work A ssignment Manager, or Principal In vestigator.
EPA QNR-5 8
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March 2001
Plan . In cases w here th e authorit y to re v iew and appro ve QA Proj ec t Plans is dele gated in writin g
by EPA to another organi zation (i .e ., a Federal agency or a State und er an EPA-appro ved Quality
Management Plan when the env ironmental data operation it self has been delegated to that
organization for implementation), it is possible that the EP A project manager and EPA QA
Manager may not be invol ved in the re view and approval steps .
2.6 QA PROJECT PLAN IMPLEMENTATION
None of the environmental work addressed by the QA Proj ect Plan shall be started until
the QA Project Plan has been approved and distributed to project personnel except in situations
requiring immediate action to protect human health and the environment or operations conducted
under police powers. Subject to these exceptions , it is the responsibility o f the organization
performing the work to assure that no en v ironmental data are generated or acquired before the
QA Project Plan is approved and received by the appropriate project personnel. However, EPA
may grant conditional approval to a QA Project Plan to permit some work to begin while non-
critical deficiencies in the QA Project Plan are being resolved.
The organization performing the work shall ensure that the QA Project Plan is
implemented as approved and that all personnel involved in the work have direct access to a
current version of the QA Project Plan and all other necessary planning , implementation , and
assessment documents . These personnel should understand the requirements prior to the start of
data generation activities.
2. 7 QA PROJECT PLAN REVISION
Although the approved QA Project Plan must be implemented as prescribed; it is not
inflexible . Because of the complex and diverse nature of environmental data operations, changes
to original plans are often needed. When such changes occur, the approving official shall
determine if the change significantly impacts the technical and quality objectives of the project.
When a substantive change is warranted, the originator of the QA Project Plan shall modify the
QA Project Plan to document the change and submit the revision for approval by the same
authorities that performed the original review. Only after the re vision has been received and
approved (at least verbally with written follow-up) by project personnel, shall the change be
implemented.
For programs or projects of long duration , such as multi-ye ar monitoring programs or
projects usin g a ge neric QA Proj ec t Plan, th e QA Proj ec t Pl an s shall be reviewed at least annuall y
by th e EP A Project M anag er (or auth orized representat ive). Wh en revis io ns are necessary , th e
Q A Project Pl an mu st be revis ed and resubm itt ed for review an d appro va l.
EPA QNR-5 9
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CHAPTER3
QA PROJECT PLAN ELEMENTS
3.1 CONTENT REQUIREMENTS
The QA Project Plan is a formal document describing in comprehensive detail the
necessary QA, QC, and other technical activities that must be implemented to ensure that the
results of the work performed will satisfy the stated performance criteria. The QA Project Plan
must provide sufficient detail to demonstrate that:
• the project technical and quality objectives are identified and agreed upon;
• the intended measurements , data generation, or data acquisition methods are
appropriate for achieving project objectives;
• assessment procedures are sufficient for confirming that data of the type and
quality needed and expected are obtained; and
• any limitations on the use of the data can be identified and documented.
Most environmental data operations require the coordinated efforts of many individuals, including
managers, engineers, scientists, statisticians, and others . The QA Project. Plan must integrate the
contributions and requirc;ments of everyone involved into a clear, concise statement of what is to
be accomplished, how it will be done, and by whom. It must provide understandable instructions
to those who must implement the QA Project Plan, such as the field sampling team, the analytical
laboratory, modelers, and the data reviewers. In all aspects of the QA Project Plan, the use of
national consensus standards and practices are encouraged.
In order to be effective, the QA Project Plan must specify the level or degree of QA and
QC activities needed for the particular environmental data operations. Because this will vary
according to the purpose and type of work being done, EPA believes that the graded approach
should be used in planning the work. This means that the QA and QC activities applied to a
project will be commensurate with:
• the purpose of the environmental data operation ( e .g., enforcement, research and
development , rulemaking),
• the type of work to be done (e .g ., pollutant monitoring , site characterization, risk
characterization, bench level proof of concept experiments), and
• the intended use of the results ( e .g., compliance determination , selection of
remedial technology , development of environmental regulation).
EPA QNR-5 11
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March 200 1
The QA Project Plan shall be composed of standardized , recogni z able elements covering
the entire project from planning , through implementation , to assessment. These elements are
presented in that order and have been arranged for convenience into four general groups . The
four groups of elements and their intent are summarized as follows :
A
B
C
D
Project Management -The elements in this group address the basic area of project
management, including the project history and objectives, roles and responsibilities
of the participants, etc. These elements ensure that the project has a defined goal,
that the participants understand the goal and the approach to be used, and that the
planning outputs have been documented .
Data Generation and Acquisition -The elements in this group address all aspects
of project design and implementation. Implementation of these elements ensure
that appropriate methods for sampling, measurement and analysis, data collection
or generation , data handling, and QC activities are employed and are properly
documented.
Assessment and Oversight -The elements in this group address the activities for
assessing the effectiveness of the implementation of the project and associated QA
and QC activities. The purpose of assessment is to ensure that the QA Project
Plan is implemented as prescribed.
Data Validation and Usability -The elements in this group address the QA
activities that occur after the data colle.::tion or generation phase of the project is
completed. Implementation of these elements ensures that the data conform to the
specified criteria, thus achieving the project objectives.
All applicable elements, including the content and level of detail under each element,
defined by the EPA organization sponsoring the work must be addressed in the QA Project Plan.
If an element is not applicable, state this in the QA Project Plan. Documentation, such as an
approved Work Plan, Standard Operating Procedures, etc., may be referenced in response to a
particular required QA Project Plan element to reduce the size of the QA Project Plan. Current
versions of all referenced documents must be attached to the QA Project Plan itself or be placed
on file with the appropriate EPA office and available for routine referencing when needed. The
QA Project Plan shall also address related QA planning documentation (e .g ., Quality Management
Plans) from suppliers of services critical to the technical and quality objecti v es of the project or
task .
3.2 GROUP A: PROJECT MANAGEMENT
The elements in this group (Table 1) address proj ect management, including project
history and objectives , roles and responsibilities of the participants, etc . These elements document
E P A Q NR-5 12
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that the project has a defined goal, that the participants understand the goal and the approach to
be used, and that the planning outputs have been documented.
Table 1. Group A: Project Management Elements
Al Title and Approval Sheet
A2 Table of Contents
A3 Distribution List
A4 Project/Task Organization
AS Problem Definition/Background
A6 Project/Task Description
A7 Quality Objectives and Criteria
A8 Special Training/Certification
A9 Documents and Records
3.2.1 Al -Title and Approval Sheet
On the Title and Approval Sheet, include the title of the plan, the name of the
organization(s) implementing the project, the effective date of the plan, and the names, titles,
signatures, and approval dates of appropriate approving officials. Approving officials may
include:
Organization's Project Manager
Organization's QA Manager
EPA Project Manager
EPA QA Manager
Others, as needed ( e.g., field operations manager, laboratory managers,
State and other Federal agency officials)
3.2.2 A2 -Table of Contents
Provide a table of contents for the document, including sections , figures, tables,
references, and appendices. Apply a document control format (Fig ure 2) on eac h page following
the Title and Approval Sheet when required by the EPA Project Manager and QA Manager.
EPA QNR-5 13
Final
March 2001
Section No . ---
Revision No.
Date ------
Page_of_
Figure 2. Example Document Control Format
3.2.3 A3 -Distribution List
List the individuals and their organizations who need copies of the approved QA Project
Plan and any subsequent revisions, including all persons responsible for implementation ( e .g.,
project managers), the QA managers, and representatives of all groups involved. Paper copies
need not be provided to individuals if equivalent electronic information systems can be used.
3.2.4 A4 -Project/Task Organization
Identify the individuals or organizations participating in the project and discuss their
specific roles and responsibilities. Include the principal data users , the decision makers, the
project QA manager, and all persons responsible for implementation. The project quality
assurance manager must be independent of the unit generating the data. (This does not include
being independent of senior officials, such as corporate managers or agency administrators, who
are nominally, but not functionally, involved in data generation, data use, or decision making.)
Identify the individu ll responsible for maintaining the official, approved QA Project Plan.
Provide a concise organization chart showing the relationships and the lines of
communication among all project participants. Include other data users who are outside of the
organization generating the data, but for whom the data are nevertheless intended. The
organization chart must also identify any subcontractor relationships relevant to environmental
data operations, including laboratories providing analytical services.
3.2.5 AS -Problem Definition/Background
State the specific problem to be solved, decision to be made , or outcome to be achieved .
Include sufficient background information to provide a historical, scientific , and regulatory
perspective for this particular project.
3.2.6 A6 -Project/Task Description
Provide a summary of all work to be performed , products to be produced , and the
sc hedule for implementation. Pro vi de maps or tables that show or state the geographic locations
of field tasks . This discussion need not be lengthy or overly detailed , but should give an overall
picture of how the project will resolve the problem or question described in AS .
EPAQNR-5 14
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March 2001
3.2. 7 A 7 -Quality Objectives and Criteria
Discuss the qu ality objecti ve s for the project and the perform ance criteria to achie ve those
objecti ves . EPA requires th e us e of a systematic planning process to define these quality
objecti ves and performance crit eria .
3.2.8 AS -Special Training/Certification
Identify and describe any speciali zed training or certifications needed by personnel in order
to successfull y complete the project or task. Discuss how such training will be pro vided and how
the necessary skills will be assured and documented.
3.2.9 A9 -Documents and Records
Describe the process and responsibilities for ensuring the appropriate project personnel
have the most current approved version of the QA Project Plan , including version control,
updates, distribution, and disposition.
Itemize the information and records which must be included in the data report package
and specify the reporting format for hard copy and any electronic forms . Records can include raw
data, data from other sources such as data bases or literature, field logs, sample preparation and
analysis logs, instrument printouts, model input and output files , and results of calibration and QC
checks .
Identify any other records and documents applicable to the project that will be produced,
such as audit reports , interim progress reports, and final reports . Specify the level of detail of the
field sampling, laboratory analysis, literature or data base data collection, or modeling documents
or records needed to provide a complete description of any difficulties, encountered.
Specify or reference all applicable requirements for the final disposition of records and
documents, including location and length of retention period.
3.3 GROUP B: DATA GENERATION AND ACQUISITION
The elements in this group (Table 2) address all aspects of data generation and acquisition
to ensure that appropriat e methods for sampling, measurem ent and anal ys is , data coll ection or
ge nerati on , d ata han dl in g, and QC ac tiv iti es ar e emplo ye d an d do cum ent ed . The foll owin g Q A
Project P lan elements d escri b e the re q uirements re lated to th e ac tu al meth od s or m etho do logy to
b e used for th e:
• collection , handling, and analysis of samples ;
EP A QA/R-5 15
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March 200 1
• data obtained from other sources (e.g., conta ined in a computer data base from
prev ious sampling activities , compiled from surveys , tak en from the lit erature); and
• the management (i .e., compiling , handling) of the data.
The methods described in these elements should have been summarized earlier in element A6 . The
purpose here is to provide detailed information on the methods. If the designated methods are
well documented and are readily available to all project participants , citations are adequate;
otherwise, detailed copies of the methods and/or SOPs must accompany the QA Project Plan
either in the text or as attachments.
Table 2. Group B: Data Generation and
Acquisition Elements
Bl Sampling Process Design (Experimental Design)
B2 Sampling Methods
B3 Sample Handling and Custody
B4 Analytical Methods
BS Quality Control
B6 Instrument/Equipment Testing, Inspection, and Maintenance
B7 Instrument/Equipment Calibration and Frequency
B8 Inspection/Acceptance of Supplies and Consumables
B9 Non-direct Measurements
BIO Data Management
3.3.1 Bl-Sampling Process Design (Experimental Design)
Describe the experimental data generation or data collection design for the project,
including as appropriate:
• th e types and numbers of sampl es requ ired ,
• th e d es i gn of th e san1plin g n e twork ,
• the sampling locations and frequencies ,
• sample matrices ,
• measurement parameters of interest , and
• the rationale for the design .
EP A Q A/R-5 16
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3.3.2 B2 -Sampling Methods
Describe the procedures for collecting samples and identify th e sampling methods and
equipment, including an y impl ementation requirements, sample preservation re quirements ,
decontamination procedures , and materials needed for projects invol v ing phy sical sampling.
Where appropriate, identify sampling methods by number, date , and regulatory citation . If a
method allows the user to select from v arious options , then the method citations should state
exactly which options are being selected. Describe specific performance requirements for the
method . For each sampling method, identify any support facilities needed. The discussion should
also address what to do when a failure in the sampling or measurement system occurs, who is
responsible for corrective action , and how the effectiveness of the correctiv e action shall be
determined and documented .
Describe the process for the preparation and decontamination of sampling equipment ,
including the disposal of decontamination by-products ; the selection and preparation of sample
containers , sample volumes , and preservation methods; and maximum holding times to sample
extraction and/or analysis .
3.3.3 B3 -Sample Handling and Custody
Describe the requirements for sample handling and custody in the field , laboratory, and
transport, taking into account the nature of the samples, the maximum allowable sample holding
times before extraction or analysis , and available shipping options and schedules for projects
involving physical sampling. Sample handling includes packaging, shipment from the site, and
storage at the laboratory. Examples of sample labels, custody forms, and sample custody logs
should be included.
3.3.4 B4 -Analytical Methods
Identify the analytical methods and equipment required, including sub-sampling or
extraction methods, laboratory decontamination procedures and materials (such as in the case of
hazardous or radioactive samples), waste disposal requirements (if any), and any spec ific
performance requirements for the method . Where appropriate, analytical methods may be
identified by number, date , and re gulatory citation. Address what to do when a failure in the
analytical system occurs , who is responsible for corrective action , and how the effectiveness of the
correcti ve action shall b e determined and do c umented . Sp eci fy the laboratory turnaround tim e
need ed , i f important to th e proj ect sc h edul e .
L ist an y m ethod p er formance stand ards. If a metho d allows th e u ser to se lec t from
vari ous options , th en th e m e th od c it ati o ns should state exac tl y w hich options are bein g se lec ted .
For non-standard m ethod applications, such as for unusual sample matrices and situations ,
appropriate method performance study information is needed to confirm the performance of the
EPA QA/R-5 17
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method for the particular matrix . If prev ious performance studies are not available, they must be
developed during the project and included as part of the project results.
3.3.5 85 -Quality Control
Identify QC activities needed for each sampling, analysis , or measurement technique. For
each required QC activity, list the associated method or procedure, acceptance criteria, and
corrective action. Because standard methods are often vague or incomplete in specifying QC
requirements , simply relying on the cited method to provide this information is usually insufficient.
QC activities for the field and the laboratory include, but are not limited to , the use of blanks ,
duplicates, matrix spikes, laboratory control samples , surrogates, or second column confirmation.
State the frequency of analysis for each type of QC activity , and the spike compounds sources and
levels. State or reference the required control limits for each QC activity and corrective action
required when control limits are exceeded and how the effectiveness of the corrective action shall
be determined and documented.
Describe or reference the procedures to be used to calculate applicable statistics ( e.g.,
precision and bias). Copies of the formulas are acceptable as long as the accompanying narrative
or explanation specifies clearly how the calculations will address potentially difficult situations
such as missing data values, "less than" or "greater than" values, and other common data
qualifiers.
3.3.6 B6 -Instrument/Equipment Testing, Inspection, and Maintenance
Describe how inspections and acceptance testing of instruments, equipment, and their
components affecting quality will be performed and documented to assure their intended use as
specified. Identify and discuss the procedure by which final acceptance will be performed by
independent personnel ( e.g., personnel other than those performing the work) and/or by the EPA
project manager. Describe how deficiencies are to be resolved, when re-inspection will be
performed, and how the effectiveness of the corrective action shall be determined and
documented.
Describe or reference how periodic preventive and corrective maintenance of
measurement or test equipment or other systems and their components affecting quality shall be
performed to ensure availability and satisfactory performance of the systems. Identify the
equipment and/or systems requiring periodic maintenance. Discuss how the availability of critical
spare parts , identified in the operatin g guidanc e an d/or desi gn specifi cations of the sy st e ms , w ill
b e as sured and m a int ain ed .
3.3. 7 87 -Instrument/Equipment Calibration and Frequency
Identify all tools, gauges, instruments, and other sampling, measuring, and test equipment
used for data generation or collection activities affecting quality that must be controlled and , at
EP A QN R-5 18
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Ma rc h 200 1
specified periods, calibrated to maintain performance within specified limits. Describe or
reference how calibration will be conducted using certified equipment and/or standards with
known valid relationships to nationally recogni zed performance standards. If no such nationally
recognized standards exist, document the basis for the calibration. Identify the certified
equipment and/or standards used for calibration. Indicate how records of calibration shall be
maintained and be traceable to the instrument.
3.3.8 B8 -Inspection/ Acceptance of Supplies and Consumables
Describe how and by whom supplies and consumables ( e .g ., standard materials and
solutions, sample bottles, calibration gases, reagents, hoses, deionized water, potable water,
electronic data storage media) shall be inspected and accepted for use in the project. State
acceptance criteria for such supplies and consumables.
3.3.9 B9 -Non-direct Measurements
Identify any types of data needed for project implementation or decision making that are
obtained from non-measurement sources such as computer data bases, programs, literature files,
and historical data bases . Describe the intended use of the data. Define the acceptance criteria
for the use of such data in the project and specify any limitations on the use of the data.
3.3.10 Bl O -Data Management
Describe the project data management process, tracing the path of the data from their
generation to their final use or storage (e.g., the field, the office, the laboratory). Describe or
reference the standard record-keeping procedures, document control system, and the approach
used for data storage and retrieval on electronic media. Discuss the control mechanism for
detecting and correcting errors and for preventing loss of data during data reduction, data
reporting, and data entry to forms, reports, and databases. Provide examples of any forms or
checklists to be used.
Identify and describe all data handling equipment and procedures to process, compile, and
analyze the data. This includes procedures for addressing data generated as part of the project as
well as data from other sources. Include any required computer hardware and software and
address any specific performance requirements for the hardware/software configuration used.
Describe the procedures that will be followed to demonstrate acceptability of the
hardware /software configuration required . Describe the process for assuring that applicable
information resource management requirements are satisfi ed .
Describe the process for assuring that applicable Agency information resource
management requirements (EPA Directive 2100) are satisfied (EPA QA Project Plans only). If
other Agency data management requirements are applicable , such as the Chemical Abstract
Serv ice Registry Number Data Standard (EPA Order 2180 .1 ), Data Standards for the Electronic
EPA QNR-5 19
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March 2 001
Transmission of Laboratory Measurement Results (EPA Order 2180 .2 ), the Minimum Set of Data
Elements for Ground-Water Quality (EPA Order 7500.lA), or new data standards as they are
issued by EPA, discuss how these requirements are addressed .
3.4 GROUP C: ASSESSMENT AND OVERSIGHT
The elements in this group (Table 3) address the activities for assessing the effectiveness
of project implementation and associated QA and QC activities. The purpose of assessment is to
ensure that the QA Project Plan is implemented as prescribed .
Table 3. Group C: Assessment and
Oversight Elements
Cl Assessments and Response Actions
C2 Reports to Management
3.4.l Cl -Assessments and Response Actions
Describe each assessment to be used in the project including the frequency and type.
Assessments include, but are not limited to, surveillance, management systems reviews, readiness
reviews , technical systems audits, performance evaluations, audits of data quality, and data quality
assessments. Discuss the information expected and the success criteria (i .e., goals , performance
objecti'1:es, acceptance criteria specifications, etc.) for each assessment proposed. List the
approximate schedule of assessment activities . For any planned self-assessments (utilizing
personnel from within the project groups), identify potential participants and their exact
relationship within the project organization. For independent assessments, identify the
organization and person(s) that shall perform the assessments if this information is available.
Describe how and to whom the results of each assessment shall be reported.
Define the scope of authority of the assessors , including stop work orders, and when
assessors are authorized to act.
Discuss how response actions to assessment findings , including corrective actions for
deficiencies and other non-conforming conditions, are to be addressed and by whom . Include
details on how the corrective actions will be verified and documented .
3.4.2 C2 -Reports to Management
Identify the frequency and distribution of reports issued to inform management (EPA or
otherwise) of the project status ; for examples, reports on the results of performance evaluations
and system audits; results of periodic data quality assessments ; and significant quality assurance
EPA QA/R-5 20
Final
Marc h 20 01
probl ems and recommended solutions. Identi fy the preparer and the reci pients of the reports , and
any specific actions recipients are expected to take as a result of the reports.
3.5 GROUP D: DATA VALIDATION AND USABILITY
The elements in this group (Table 4) address the QA acti vitie s that occur after the data
collection phase of the project is completed . Implementation of th ese elem ents determines
whether or not the data conform to the specified criteria, thus satisfying the project objectives .
Table 4. Group D: Data Validation
and Usability Elements
DI Data Re v iew , Verification, and Validation
D2 Verification and Validation Methods ·
D3 Reconciliation with User Requirements
3.5.1 Dl -Data Review, Verification, and Validation
State the criteria used to review and validate --that is, accept, reject , or qualify --data, in
an objective and consistent manner.
3.5.2 D2 -Verification and Validation Methods
Describe the process to be used for verifying and validating data, including the chain-of-
custody for data throughout the life of the project or task . Discuss how issues shall be resolved
and the authorities for resolving such issues. Describe how the results are conveyed to data users.
Precisely define and interpret how validation issues differ from verification issues for this project.
Provide examples of any forms or checklists to be used. Identify any project-specific calculations
required.
3.5.3 D3 -Reconciliation with User Requirements
Describe how the results obtained from the project or task will be reconciled with the
requirements defined by the data user or decision maker. Outline the proposed methods to
analyze the data an d d etermine possible anomalies or departures from assumptions established in
the planning phase of data collectio n . D escribe ho w reconci li ation with user requirements wi ll be
documented , issues wi ll be resolved , and how limitations on the use of the data wi ll be reported to
d ecision makers.
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EP A Q A/R-5 22
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REFERENCES
40 CFR 30, Code of Federal Regulations, "Grants and Agreements With Institutions of Higher
Education, Hospitals, and Other Non-Profit Organizations."
40 CFR 31, Code of Federal Regulations, "Uniform Administrative Requirements for Grants and
Cooperative Agreement to State and Local Governments ."
40 CFR 35, Code of Federal Regulations , "State and Local Assistance."
48 CFR 46, Code of Federal Regulations, "Federal Acquisition Regulations."
ANSI/ ASQC E4-l 994 , Specifications and Guidelines for Quality Systems for Environmental
Data Collection and Environmental Technology Programs, American National Standard,
January 1995.
EPA Directive 2100 (1998), Information Resources Management Policy Manual, U.S.
Environmental Protection Agency, Washington, DC.
EPA Order 2180.1 (June 1987), Chemical Abstract Service Registry Number Data Standard,
U.S. Environmental Protection Agency, Washington, DC.
EPA Order 2180.2 (December 1988), Data Standards for the Electronic Transmission of
Laboratory Measurement Results, U.S. Environmental Protection Agency, Washington,
DC.
EPA Order 5360 Al (May 2000). EPA Quality Manual for Environmental Programs , U .S.
Environmental Protection Agency, Washington, DC.
EPA Order 5360.1 A2 (May 2000), Policy and Program Requirements for the Mandatory
Agency-wide Quality System, U.S . Environmental Protection Agency, Washington, DC.
EPA Order 7500.lA (October 1992), Minimum Set of Data Elements for Ground-Water Quality,
U.S. Environmental Protection Agency, Washington, DC.
U.S. Environmental Protection Agency, 2001. EPA Requirements for Quality Managem ent
Plans (QA IR-2), EPA/240/B-01 /002 , Office of Environmental Information.
U.S . En v ironmental Protection Agency, 2000a. Guidan ce for Data Quality Ass ess ment :
Practical Methods for Data Analy sis (QA IG-9), EP A/600/R-96/084 , Office of
Environmental Information .
EPA QNR-5 23
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Marc h 2001
U.S. Environmental Protection Agency, 2000b. Guidance for the Data Quality Objectives
Process (QA IG-4), EP A/600/R-96/055 , Office of Environmental Information.
U.S. Environmental Protection Agency, 1998. Guidance for Quality Assurance Project Plans
(QA I G-5), EPA/600/R-98 /018 , Office of Research and Development.
U.S . Environmental Protection Agency, 1995. Guidance for the Preparation of Standard
Operating Procedures (SOPs) for Quality-Related Documents (QA IG-6), EP A/600/R-
96 /027, Office of Research and Development.
U.S. Environmental Protection Agency, 1980. Interim Guidelines and Specifications for
Preparing Quality Assurance Project Plans, QAMS-005 /80, Office of Research and
Development.
24
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March 200 1
APPENDIX A
CROSSWALKS AMONG QUALITY ASSURANCE DOCUMENTS
A.I BACKGROUND
This appendix contains crosswalks between this document and other QA planning
documents . The first crosswalk compares this requirements document with its predecessor
document, QAMS 005/80, Interim Guidelines and Specifications for Preparing Quality
Assurance Project Plans (EPA 1980). The second crosswalk compares the elements of the QA
Project Plan defined in this document with the steps defined in Guidance for the Data Quality
Objectives Process (QA !G-4) (EPA 2000b), the Agency's preferred systematic planning process
for environmental decision making . This crosswalk is provided to assist the reader in determining
how the outputs from the DQO Process can be integrated into a QA Project Plan.
A.2 CROSSWALK BETWEEN EPA QA/R-5 AND QAMS-005/80
QAMS-005/80 ELEMENTS
1.0 Title Page with Provision for
Approval Signatures
2.0 Table of Contents
3.0 Project Description
4 .0 Project Organization and
Responsibility
5.0 QA Objectives for Measurement
Data (P ARCC)
6.0 Sampling Procedures
7.0 Sample Custody
8.0 Calibration Procedures and
Frequency
EPA QA/R-5
Al
A2
AS
A6
A3
A4
A8
A9
A7
Bl
B2
B3
B7
A-1
QA/R-5 ELEMENTS
Title and Approval Sheet
Table of Contents
Problem Definition/Background
Project/Task Description
Distribution List
Project/Task Organization
Special Training/Certification
Documents and Records
Quality Objectives and Criteria
Sampling Process Design
Sampling Methods
Sample Handling and Custody
Instrument/Equipment Calibration and
Frequency
Final
March 2001
QAMS-005/80 ELEMENTS
9 .0 Analytical Procedures
10 .0 Data Reduction , Validation, and
Reporting
11.0 Internal Quality Control Checks
and Frequency
12 .0 Performance and Systems
13 .0 Preventive Maintenance
14 .0 Specific Routine Procedures Mea-
surement Parameters Involved
15.0 Corrective Action
16 .0 QA Reports to Management
EP A QA/R-5
B4
Dl
D2
B9
BIO
B5
Cl
B6
D3
Cl
C2
A-2
QA/R-5 ELEMENTS
Analytical Methods
Data Re v iew , Verification, and
Validation
Verification and Validation Methods
Non-direct Measurements
Data Man age ment
Quality Control
Assessments and Response Actions
Instrument/Equipment Testing,
Inspection, and Maintenance
Reconciliation with User Requirements
Assessments and Response Actions
Reports to Management
Final
Ma rch 200 1
A.3 CROSSWALK BETWEEN THE DQO PROCESS AND THE QA PROJECT PLAN
Elements
A l Title and A pp rova l S heet
A2 T able of C ontents
A 3 Distribution L ist
A4 Project/T ask
Organi z ation
AS Problem D e finit io n/
B ackground
A6 Project/Task D esc ription
A7 Quality Obj ectives an d
C riteria
A8 Speci a l T ra ini ng/
Certific a tion
A9 Documents and R ec ords
EP A QA/R-5
Requirements
PROJECT MANAGEMENT
Title and appro va l sheet. NIA
Document control format. NIA
Distribution list for the QA Project Plan Step 1:
revisions and final guidance.
Identify individuals or organizations Step 1:
participating in the project and discuss their
roles, responsibilities and organization.
1) State the specific problem to be solved or Step 1:
the decision to be made. Step 2:
2) Identify the decision maker and the principal
customer for the results.
1) Hypothesis test, 2) expected measurements, Step 1:
3) ARARs or other appropriate standards, 4) Step 2:
assessment tools (technical audits), 5) work Step 3:
schedule and required reports . Step 6 :
Decision( s ), population parameter of interest, Step 4:
action level, summary statistics and acceptable Step 5 :
limits on decision errors . Also, scope of the Step 6 :
project (domain or geographical locale).
Identify special training that personnel will NIA
need.
Itemize the information and records that must Step 3:
be included in a data report package, including Step 7:
report format and requirements for storage,
etc .
A-3
DQO Overlap
State th e Problem
State the Problem
State the Problem
Identify the Decision
State the Problem
Identify the Decision
Identify the Inputs to the Decision
Specify Limits on Decision Erro rs
Define the Boundaries
Develop a Decision Rule
Specify Limits on Decision Errors
Identify the Inputs to the Decision
Optimize the Design for Obtaining Data
Fina l
March 2001
Elements
Bl S ampling Process D esign
(E xperiment al D es ign)
B2 Sampling Meth ods
B 3 Sample H an dl ing an d
C ustod y
B4 Ana lytical M eth od s
B5 Quality C ontro l
B 6 Instrumen t/Equ ipment
T e sting, Inspection, and
M aintenanc e
B7 Instrument/E q u ip me nt
Calibration and
F requenc y
B 8 Inspectio n/ Acceptance of
Supplies and
C onsumabl es
EP A QNR -5
Requirements DQO Overlap
DAT A GENERATION AND ACQIBSITION
Outline the experimental design, including
sampling design and rationale, sampling
frequencies , matrices, and measurement
parameter of interest.
Sample collection method and approach.
Describe the provisions for sample labeling,
shipment, chain-of-custody forms, procedures
for transferring and maintaining custody of
samples.
Identify analytical method(s) and equipment
for the study, including method performance
requirements .
Describe quality control procedures that
should be associated with each sampling and
measurement technique . List required checks
and corrective action procedures.
Discuss how inspection and acceptance testing ,
including the use of QC samples, must be
performed to ensure their intended use as
specified by the design.
Identify tools , gauges and instruments , and
other sampling or measurement devices that
need calibration. Describe how the ca libration
should be done.
Define how and by whom the sampling
supplies and other consumables will be
accepted for use in the project.
A-4
Step 5 : D evelop a Decision Rule
Step 7: Optimize the Design for Obtaining Data
Step 7 : Optimi ze th e Design for Obta ining Data
N I A
Step 3 : Identify the Inputs to the Decision
Step 7 : Optimize the Design for Obtaining Data
Step 3 : Id entify the Inputs to the Decision
Step 3 : Identify the Inputs to the Decision
Step 3 : Identify the Inputs to the Decision
N I A
Fin a l
Ma rch 20 01
Elements
B9 Non-direct
Measurements
Bl O Data Management
Cl Assessments and
Response Actions
C2 Reports to Management
01 Data Review ,
Verification, and
Validation
D2 Verification and
Validation Methods
03 Reconciliation With User
Requirements
EPA QA/R-5
Requirements DQO Overlap
Define the criteria for the use of non-Step 1: State the Problem
measurement data, such as data that come Step 7: Optimize the Design for Obtaining Data
from databases or literature.
Outline the data management scheme including Step 3: Identify the Inputs to the Decision
the path and storage of the data and the data Step 7: Optimize the Design for Obtaining Data
record-keeping system. Identify all data
handling equipment and procedures that will be
used to process, compile, and analyze the data.
ASSESSMENT AND OVERSIGHT
Describe the assessment activities needed for Step 7: Optimize the Design for Obtaining Data
this project.
Identify the frequency, content, and NIA
distribution of reports issued to keep
management informed.
DATA VALIDATION AND USABILITY
State the criteria used to accept or reject the
data based on quality .
Describe the process to be used for verifying
and validating data, including the chain-of-
custody for data throughout the lifetime of the
project.
Describe how results will be evaluated to
determine if performance criteria have been
satisfied.
A-5
Step 7: Optimize the Design for Obtaining Data
Step 3: Identify the Inputs to the Decision
Step 7: Optimize the Design for Obtaining Data
Final
March 2001
(This page is intentionally blank.)
E PA QA/R-5 A-6
Fina l
March 200 1
APPENDIX B
TERMS AND DEFINITIONS
assessment -the evaluation process used to measure the performance or effectiveness of a system
and its elements . As used here , assessment is an all-inclusi ve term used to denote any of the
following: audit , p erformance evaluation , management systems re view , peer review , inspection , or
surveillance .
audit (quality) -a systematic and independent examination to determine whether quality
activities and related results comply with planned arrangements and whether these arrangements
are implemented effectively and are suitable to achieve objectives.
calibration -comparison of a measurement standard, instrument, or item with a standard or
instrument of higher accuracy to detect and quantify inaccuracies and to report or eliminate those
inaccuracies by adjustments.
chain-of-custody -an unbroken trail of accountability that ensures the physical security of
samples , data, and records .
contractor -any organization or individual that contracts to furnish services or items or perform
work; a supplier in a contractual situation.
data quality assessment -a statistical and scientific evaluation of the data set to determine the
validity and performance of the data collection design and statistical test, and to determine the
adequacy of the data set for its intended use .
data usability -the process of ensuring or determining whether the quality of the data produced
meets the intended use of the data.
design -specifications, drawings, design criteria , and performance requirements. Also the result
of deliberate planning, analysis, mathematical manipulations , and design processes .
environmental conditions -the description of a physical medium ( e .g., air, water, soil, sediment)
or biological system expressed in terms of its physical, chemical , radiological , or biological
characteristics .
environmental data -any measurements or information that describe environmental processes ,
lo cation, or conditio ns ; eco lo gical or health effects and conseq uences; or the performance of
environmental technology. For EPA, enviro nmental d ata include information collected directl y
from measurements , produced from models , and compiled from other sources such as data bases
or the literature .
EPA QA/R-5 B-1
Final
March 200 1
environmental data operations -work perform ed to obt ain , us e, or re port information
pertainin g to en vironm ental processes and conditions.
en v ironmental processes -manu fa ctured or n atural process es that produc e discharg es to or th at
impact th e ambient en v ironment.
environmental programs -work or activ ities in vol v ing th e env ironment, including but not
limited to : characteri zation of environmental processes and conditions ; env ironmental monitoring;
env ironmental research and de v elopment; the design , construction , and operation of
en v ironmental technologies; and laboratory operations on en v ironmental samples.
environmental technology -an all-inclusive t erm used to describe pollution control dev ices and
sy stems , waste treatment processes and storage facilities , and site remediation technologies and
their components that may be utilized to remove pollutants or contaminants from or prevent them
from entering the env ironment. Examples include wet scrubbers (air), soil washing (soil),
granulated activated carbon unit (water), and filtration (air, water). Usually , this term will apply
to hardware-based systems ; however, it will also apply to methods or techniques used for
pollution prevention, pollutant reduction, or containment of contamination to prevent further
movement of the contaminants , such as capping, solidification or vitrification, and biological
treatment.
financial assistance -the process by which funds are provided by one organization (usually
government) to another organiz ation for the purpose of performing work or furnishing services or
items. Financial assistance mechanisms include grants, cooperativ e agreements, performance
partnership agreements , and government interagency agreements.
graded approach -the process of basing the level of application of managerial controls applied
to an item or work according to the intended use of the results and the degree of confidence
needed in the quality of the results .
independent assessment -an assessment performed by a qualified individual , group , or
organization that is not a part of the organization directly performing and accountable for the
work being assessed.
information resources management -the planning, budgeting, organi z ing , directing, training
and control s as soci ated wi th information . The te rm encomp asses both information itself and
re late d reso ur ces s uch as p erso nn e l, equipme nt , fu n ds an d tec hn o logy .
inspection -an activ ity such as m eas uring, examinin g, tes tin g, o r gaugi ng one or more
c h arac teri sti cs of an entity and comparing the results w ith spec ifi ed requirements in order to
establish whether conformance is achiev ed for each characteristic .
EPA QNR-5 B -2
Fina l
Marc h 200 1
management system - a structured, non -technical system describing the policies , objectives,
principles , organizational authority, responsibilities, accountability, and implementation plan of an
organization for conducting work and producing items and services.
method -a body of procedures and techniques for performing an activity ( e.g., sampling,
modeling , chemical analysis , quantification) sys tematically presented in the order in which they are
to be executed.
participant -when used in the context of environmental programs, an organization, group, or
individual that takes part in the planning and design process and provides special knowledge or
skills to enable the planning and design process to meet its objective .
performance evaluation -a type of audit in which the quantitative data generated in a
measurement system are obtained independently and compared with routinely obtained data to
evaluate the proficiency of an analyst or laboratory.
quality -the totality of features and characteristics of a product or service that bear on its ability
to meet the stated or implied needs and expectations of the user.
quality assurance (QA) -an integrated system of management activities involving planning,
implementation, documentation, assessment, reporting, and quality improvement to ensure that a
process, item, or service is of the type and quality needed and expected by the client.
quality assurance manager -the individual designated as the principal manager within the
organization having management oversight and responsibilities for planning, documenting,
coordinating, and assessing the effectiveness of the quality system for the organization.
quality assurance project plan - a document describing in comprehensive detail the necessary
QA, QC , and other technical activities that must be implemented to ensure that the results of the
work performed will satisfy the stated performance criteria.
quality control (QC) -the overall system of technical activities that measures the attributes and
performance of a process , item , or service against defined standards to verify that they meet the
stated require ments established by the customer; operational techniques and activities that are
used to fulfill requirements for quality.
quality management -that as pect of the overall management system of the organization that
determines and implements the quality policy . Quality management includes strategic planning,
allocation of resources, and other systematic activities ( e .g., planning, implementation ,
documentation, and assessment) pertaining to the quality system .
quality management plan - a document that describes a quality system in terms of the
organi zatio nal structure, policy and procedures , functional responsibilities of mana ge ment and
EPA QA/R-5 B -3
Fina l
March 200 1
staff, lines of authority , and required interfaces for those planrung, implementing , documenting ,
and assessing all activities conducted .
quality system -a structured and documented management sy stem describing the policies ,
objectives, principles, organizational authority , responsibilities , accountability , and implementation
plan of an organization for ensuring quality in its work processes, products (items), and services.
The quality system provides the framework for planrung , implementing , documenting , and
assessing work performed by the organization and for carrying out required QA and QC activities .
readiness review -a systematic , documented review of the readiness for the start-up or continued
use of a facility , process , or acti vity . Readiness reviews are typically conducted before proceeding
beyond project milestones and prior to initiation of a major phase of work .
record -a completed document that provides objective evidence of an item or process . Records
may include photographs, drawings, magnetic tape, and other data recording media .
specification -a document stating requirements and which refers to or includes drawings or other
relevant documents. Specifications should indicate the means and the criteria for determining
conformance.
supplier -any individual or organization furnishing items or services or performing work
according to a procurement document or financial assistance agreement. This is an all-inclusive
term used in place of any of the following: vendor, seller, contractor, subcontractor, fabricator, or
consultant.
surveillance (quality) -continual or frequent monitoring and verification of the status of an
entity and the analysis of records to ensure that specified requirements are being fulfilled .
technical systems audit (TSA) -a thorough, systematic, on-site, qualitative audit of facilities,
equipment, personnel, training , procedures, record keeping, data validation, data management,
and reporting aspects of a system.
validation -confirmation by examination and provision of objective evidence that the particular
requirements for a specific intended use are fulfilled. In design and development , validation
concerns the process of examining a product or result to determine conformance to user needs .
verification -confirmat ion by ex amin ation and pro vision of obj ec tive evi denc e th at spe cifie d
requ irement s have be en fulfill ed . In des ign and d eve lopm ent, verificatio n co ncerns th e pro cess of
exam inin g a re s ult o f a given ac ti vity to d etermine con fo rm ance to the stated requirem ent s for th at
ac ti vity .
EP A Q NR-5 8-4
Fi na l
Marc h 200 1
Background
TEXAS NATURAL RESOURCE CONSERVATION COMMISSION
ALLOW ABLE EXPENDITURE GUIDELINES . .
Preface
FORM B-12
At the Single Audit Managers' Forum (SAMF) committee meeting in October 1997, the SAMF agreed that a
committee should be formed to address concerns with standard cost principles for expenditure of taxpayer funds
inch1ded in Uniform Grant Management Standards (UGMS) and Office of Management and Budget Circular
A~87 (OMB-87) terms. Specifically, the concerns related to the ability of state agencies to provide clear and
consistent guidance to those who receive funding under state contracts and to hold funded entities accountable.
Where 0MB A-87 and UGMS require "reasonable and necessary'' costs, application by funding entities has
been inconsistent
To address this issue and consistent indirect cost plan review, two committees were formed comprising the
following state agencies: Texas Natural Resource Conservation Commission, Texas Workforce Commission,
Texas Council on Alcohol and Drug Abuse, Texas Department of Transportation, the Governor's Office, the
State Auditor's Office, Texas Department of Aging, the Texas State Comptroller of Public Accounts, Texas
Department of Mental Health and. Mental Retardation, and the Texas Department of Housing and Community
Affairs. .
.Oevelopment of Procedures and Guidelines
These state agencies have developed both a process for interagency review and approval of indirect cost plans as
well as definitions of A-87's "reasonable and necessary" in an indirect cost environment However, to further
consistency and accountability, funding agencies should encourage all recipients to use these guidelines to the
greatest extent possible for direct cost purpose, as well.
These definitions are detailed in the following ''Texas Natural Reso~ce Conservation Commission Allowable
Expenditure Guidelines". The guidelines provide a statewide definition of"reasonable and necessary" as used
in 0MB A-87 and as applied to state funds through the Uniform Grants Management Standards. They are
intended to improve state-funded contract compliance by applying clearly defined "reasonable and necessary"
criteria consistently among state agencies.
Guidelines for Cost Expenditures
"R~onable and necessary'' use of public funds is fairly well established by state expenditure guidelines. That
is to say, that taxpayers have, over time, influenced the standards for use of taxpayer funds that are adhered to
by state agencies and by the payment rules established by the Texas State Comptroller of Public Accounts.
Therefore, entities who receive taxpayer funds through state agencies should also adhere to similar expenditure
standards.
TEXAS NATURAL RESOURCE CONSERVATION COMMISSION
ALLOW ABLE EXPENDITURE GUIDELINES
These guidelines do not preempt any local government expenditure guidelines, for example, that ate fairly
consistent with state expenditure guidelines. However the goal of this effort is to define as clearly as possible,
expectations for the expenditure of state funds. Nor do these guidelines make federal circulars or regulations
related to cost allowability more restrictive.
Applicability
These guidelines should be used for state funds, federal pass-through funds and the expenditures of contractors
funded by either state or federal pass-through funds.
A TI ACHMENT A -General Principles for Determhtlng Allowable Costs
. A. Purpose and Scope
1. Objectives. This attachment establishes principles for determining the allowable .costs
incurred by State, local, and federally-recognized Indian tribal governments 1
(governmental units) under grants, contracts, [these principles apply to cost
reimbursement as well as other type of payment agreements, "cost reimbursement" has
been stricken only to avoid a possible ·interpretation limiting the types of contracts
covered.] and other agreements with the federal and state government (collectively
referred to in this Circular as "Federal awards''). The principles are for the purpose of
cost determination and are not intended to identify the circumstances or dictate the extent
of Federal or governmental unit participation in the financing of a particular program or
project. The principles are designed to provide that Federal and state awards bear their
fair share of cost recognized under these principles except when~ restricted or prohibited
by law. Provision for profit or other increment above cost is outside the scope of this
Circular.
2. Policy guides.
a. The application of these principles is based on the fundamental premises that:
(1) Governmental units are responsible for the efficient and effective administration
of Federal and state awards through the application of sound management
practices. .
(2) Governmental units assume responsibility for administering Federal and state
funds in a manner consistent with underlying agreements, program objectives, and
the terms and conditions of the Federal and state award ..
(3) Each governmental unit, in recognition of its own unique combination of staff,
facilities, and experience, will have the primary responsibility for employing
whatever form of org~tion and management techniques may be necessary to
assure proper and efficient administration of Federal and state awards.
b. Federal agencies should work with States or localities which wish to test alternative
mechanisms for paying costs for administering Federal programs. The Office of
Management and Budget (0MB) encourages Federal agencies to test fee-for-service
alternatives ~ a replacement for current cost-reimbursement payment methods in
response to the National Performance Review's (NPR) recommendation. The NPR
recommended the fee-for-service approach to reduce the burden associated with
1
maintaining systems for charging administrative costs to Federal programs and ·
preparing and approving cost allocation plans. 1bis approach should also increase
incentives for administrative efficiencies and improve outcomes. ·
3 . Application.
a These principles will be applied by all Federal and state agencies in determining costs
incurred by governmental units under Federal and state awards (including subawards)
except those with (1) Publicly-financed educational institutions subject to 0MB
Circular A-21, "Cost Principles for Educational Institutions," and (2) programs
administered by publicly-owned hospitals and other providers of medical care that are
subject to requirements promulgated by the sponsoring Federal agencies. However,
this Circular does apply to all central service and department/agency costs that are
allocated or billed to those educational institutions, hospitals, and other providers of
medical care or services by other State and local government departments and
agencies.
b. All subawards are subject to those Federal cost principles applicable to the particular
organization concerned. Thus, if a subaward is to a governmental unit ( other than a
college, university, or hospital), this Circular shall apply; if a subaward is to a
commercial organization, the cost principles applicable to commercial organizations
shall apply; if a subaward is to a college or university, Circular A-21 shall apply; if a
subaward is to a hospital, the cost principles used by the Federal awarding agency for
awards to hospitals shall apply, subject to the provisions of subsection A.3 .a. of this
Attachment; if a subaward is to some other non-profit organization, Circular A-122,
"Cost Principles for Non-Profit Organizations," shall apply.
c. These principles shall be used as a guide in the pricing of fixed price arrangements
where costs are used in determining the appropriate price.
d. Where a Federal or state contract awarded to a governmental unit incorporates a Cost
Accounting Standards (CAS) clause, the requirements of that clause shall apply. In
such cases, the governmental unit and the cognizant Federal agency or state grantor
agency shall establish an appropriate advance agreement on how the governmental
unit will comply with applicable CAS requirements when estimating, accumulating
and reporting costs under CAS-covered contracts . The agreement shall indicate that
0MB Circular A -87 requirements will be applied to other Federal or state awards. In
all cases, only one set of records needs to be maintained by the governmental unit
· B. Definitions.
1. "Approval or authorization of the awarding or cognizant Federal agency" means
documentation evidencing consent prior to incurring a specific-cost. If such costs are
2
I
specifically identified in a Federal award document, approval of the document constitutes
approval of the costs. If the costs are covered by a State/local-wide cost allocation plan
or an indirect cost proposal, approval of the plan constitutes apP.JOval.
2. "A ward" means grants, contracts, [these principles apply to cost reimbursement as well as
other types of payment agreements; "cost reimbursement" has been stricken to avoid a
possible interpretation limiting the type of contracts covered.] and other agreements"'
between a State, local and Indian tribal government and the Federal or state government
3. "Awarding agency" means (a) with respect to a grant, cooperative agreement, or contract,
[these principles apply to cost reimbursement as well as other types of payment
agreements; "cost reimbursement" has been stricken to avoid a possible interpretation ·
limiting the type of contracts covered.], the Federal or state agency, and (b) with respect
to a subaward, the party that awarded the subaward.
4. "Central service cost allocation plan" means the documentation identifying,
accumulating, and allocating or developing billing rates based on the allowable costs of
services provided by a governmental unit on a centralized basis to its departments and
agencies. The costs of these services may be allocated or billed to users .
•
5. "Claim" means a written demand or written assertion by the governmental unit or grantor
seeking, as a mat!I' of right, the payment of money in a sum certain, the adjustment or
interpretation of award terms, or other relief arising under or relating to the award. A
voucher, invoice or other routine request for payment that is not a dispute when submitted
is not a claim. Appeals, such as those· filed by a governmental unit in response to ·
questioned audit costs, are not considered claims until a final management decision is
made by the Federal or state awarding agency.
6. "Cogni:rant agency" means the Federal agency responsible for reviewing, negotiating,
and approving cost allocation plans or indirect cost proposals developed under this
Circular on behalf of all Federal agencies. 0MB publishes a listing of cogni:rant _
agencies. [See "state single audit coordinating agency'1
7. "Common Rule" means the "Uniform Administrative Requirements for Grants and
Cooperative Agreements to State and Local Governments; Final Rule" originally issued
at 53 FR 8034-8103 (March 11, 1988). Other common rules will be referred to by their
specific titles. Some federal agencies have guidelines that deviate from the common rule,
either by statutory requirement or by special authoriz.ation :from the Office of
Management and Budget. In addition, some state agencies may have variances required
by statute that apply to nonprofits and others.
8. "Contract" means a mutually binding legal relationship obligating the seller to furnish the
supplies or services (mcluding construction) and the buyer to pay for them. It includes all •
3
types of commitments that obligate the government to an expenditure of appropriated
funds and that, except as otherwise authorized, are in writing. In addition to bilateral
instruments, contracts include (but are not limited to): awards and notices of awards; job
orders or task orders issued under basic ordering agreements; letter contracts; orders, such
as purchase orders, under which the contract becomes effective by written acceptance or
performance; and, bilateral contract modifications. Procurement contracts do not include
grants and cooperative agreements covered by 31 U.S.C. 6301 et seq. or by the Uniform
Grant Management Standards.
9. "Cost" means an amount as determined .on a cash, accrual, or other basis acceptable to the
Federal or state awarding cognizant agency. It does not include transfers to a general or
similar fund .
10. "Cost allocation plan" means central service cost allocation plan, public assistance cost
allocation plan, and indirect cost rate proposal. Each of these terms are further defined in
this section.
11. "Cost objective" means a function, organizational subdivision, contract, grant, or other
activity for which cost data are needed and for which costs are incurred.
12. "Documentation" means records that verify grant expenditure amounts and their
appropriateness to grant funds. (See C. Bask Guidelines (l)G) definition of"adequately
documented'')
13. "Federally-recogniud Indian tribal government'' means the governing body or a
governmental agency of any Indian tribe, band, nation, or other organized group or
community (including any native village as defined in Section 3 of the Alaska Native
Claims Settlement Act, 85 Stat. 688) certified by the Secretary of the Interior as eligible
for the special programs and services provided through the Bureau of Indian Affairs.
14. "Governmental unit" means the entire State, local, political subdivision, or federally-
recognized Indian tribal government, including any component thereof. Components of
governmental units may function independently of the governmental unit in accordance
with the term of the award. [Section 783.003(3) of the Texas Government Code
specifically excludes school districts and other special purpose districts from UGMS.
However, some state agencies have extended UGMS by rule to certain categories of
recipients which are not specifically excluded by the statute.]
15. "Grant" means an award of financial assistance, including cooperative agreements, in the
form of money, property in lieu of money, or other financial assistance paid or furnished
by the state or federal government to carry out a program in accordance with rules,
regulations. and guidance provided by the grantor agency. The term does not include
technical assistance which provide services instead of money, or assistance in the form of
4
revenue sharing, loans, loan guarantees, interest subsidies, insurance, or other direct
appropriations. Also, the term does not include assistance, such as a fellowship or other
lump sum award, for which the grantee is not required to account. See the State Single
Audit Circular, sec. _210(b), (c) and (d) for guidance in differentiating between grants
and procurement. Sec. _21 O(b) of that circular lists the following characteristi~,
which may be present in whole or part, of a grantee organization:
The receiving organization:
(1) Determines who is eligible to receive what state or federal financial assistance;
(2) Has its performance measured against whether the objectives of the state or
federal program are met;
(3) Has responsibility for programmatic decision making;
(4) Has responsibility for adherence to applicable state or federal program compliance
requirements; and
(5) Uses the state or federal funds to carry out a program of the organization as
com~ared to providing goods or services for a program of the pass-through entity.
Section _2.10( d) points out that "There may be unusual circumstances or exceptions to
the listed characteristics. In making the determination of whether a subrecipient or
vendor relationship exists, the substance of the relationship is more important than the
form of the agreement. It is not expected that all of the characteristics will 1'e present and
judgement should be used in determining whether an entity is a subrecipient or a vendor."
16. "Grantee department or agency'' m~ the component of a State, local, or federally-
recognized Indian tribal government which is responsible for the performance or
administration of all or some part of a Federal or state award. The grantee is the entire
legal entity even if only a particular component of the entity is designated in the grant
award document.
17. "Indirect cost rate proposal" means the documentation prepared ·by a governmental unit
or component thereof to substantiate its request for the establishment of an indirect cost
rate as described in Attachment E of the Circular.
18. "Local government" means a county, municipality, city, town, township, local public
authority, school district, special district, intrastate district, council of governments
(whether or not ·incorporated as a non-profit corporation under State law), any other
regional or interstate government entity, or any agency or instrumentality of a local
government. [Section 783 .003(3) of the Texas Government Code specifically excludes
school districts and other special purpose districts from UGMS.]
19. "Public assistance cost allocation plan"'' means a narrative description of the procedures
that will be used in identifying, measuring and allocating all administrative costs to all of
s
the programs administered or supervised by State public assistance agencies as described
in Attachment D of this Circular.
20. "State" means any of the several States of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, any ·tcrritory or possession of the United States, or'any
agency or instrumentality of a State exclusive of local governments.
21. "State single audit coordinating agency" means the state agency designated by the
governor's office to coordinate single audits -0f state subrecipients required by the
Uniform Grant Management Standards and the State of Texas Single Audit Circular. ·
Generally, the state agency which provides the most funding is designated as the
coordinating agency. The state single audit coordinating agency is responsible for .
assuring satisfactory and timely audit coverage, providing technical assistance and
liaison, conducting desk reviews of audit reports, notifying other affected agencies of
irregularities, advising a subrecipient if its audit does not meet single audit requirements,
coordinating additional audits and following up on audit findings applicable to its own,
but not other affected agencies', programs. A state single audit coordinating agency may,
but is not required to, review and approve an assigned grantee's indirect cost plan. A
detailed listing of the state single audit coordinating agency's responsibilities appears at
sec. _400, State of Texas Single Audit Circular.
22. "Subcontractor" means a purveyor of goods or services engaged by a primary contractor
to provide goods, services,. or both through a procurement relationship generally available
to any purchaser for a stated price. Although such goods or services may contribute to
carrying out some portion of a scope of services for which grant funds are expended, they
constitute procurement, and are not subject to the requirements set forth in these
Standards for grantees and subgrantees (see State of Texas Single Audit Circular, sec.
_.210 (c) and (d).
C. Basic Guidelines
1. Factors affecting allowability of costs. To be allowable under Federal or state awards,
costs must meet the following general criteria: ·
a Be necessary and reasonable for proper and efficient performance and administration
of Federal or state awards. A necessary cost is an· expenditure that mu.st be ·
incurred by the grantee or recipient in order to achieve its stated objective.
b. Be allocable to Federal or state awards under the provisions of this Circular.
c. Be authorized or not prohibited under State or local laws or regulations.
d. Conform to any limitations or exclusions set forth in these principles~ Federal or state
6
laws, terms and conditions of the F cderal or state award, or other governing .
regulations as to types or amounts of cost items.
e. Be consistent with policies, regulations, and procedures that apply uniformly to both
Federal or state awards and other activities of the governmental unit
f. Be accorded consistent treatment A cost may not be assigned to a Federal or state
award as a direct cost if any other cost incurred for the same pmpose in like
circumstances has been allocated to the Federal or state award as an indirect cost.
g. Except as otherwise provided for in this Circular, be determined in accordance with
generally accepted accounting principles . ·
h. Not be included as a cost or used to meet cost sharing or matching requirements of
any other Federal or state award in either the current or a prior period, except as
specifically provided by Federal or state law or regulation.
1. Be the net of all applicable credits.
J. Be adequately documented. Documentation required may include, but is not limited
to, travel records, time sheets, invoices, contracts, mileage records, billing records,
telephone bills and other documentation that verifies the expenditure amount and
appropriateness to the grant.
2. Reasonable costs. A cost is reasonable if, in its nature and amount, it does not exceed
that which would be incurred by a prudent person under the circwnstances prevailina at
the time the decision was made to incur the cost. The question of reasonableness is
particularly important when aovemmental units or components are predominantly state or
federally-funded. In detenninina reasonableness ofa iivcn cost consideration shall be
,dven to:
a. Whether the cost is of a type generally recognized as ordinary and necessary for the
operation of the governmental unit or the perfo~ance of the Federal or state award.
b. The restraints or requirements imposed by such factors as : sound business practices;
arms length bargaining; Federal, State and other laws and regulations; and, terms and
conditions of the Federal or state award.
c. Market prices for comparable goods or services .
d. Whether the individuals concerned acted with prudence in the circumstances
considering their responsibilities to the governmental unit, its employees, the public
at large, and the state or Federal Government.
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e. Significant deviations from the established practices of the governmental unit which
may unjustifiably increase the Federal or state award's cost.
3. Allocable costs.
a. A cost is allocable to a particular cost objective if the goods or services involved. are
chargeable or assignable to such cost objective in accordance with relative benefits
received.
b. All activities which benefit from the governmental unit's indirect cost, including
unallowable activities and services donated to the governmental unit by third parties,
will receive an appropriate allocation of indirect costs. [For example, the fair market
value of volunteer services contributed to a project need to be included in the ·
allocation. Unallowable costs have to be included to ensure that the grantor agency
does not pay a disproportionate share of project costs by having such costs ''backed
out" prior to allocating costs among funding sources.]
c. Any cost allocable to a particular Federal or state award or cost objective under the
principles provided for in this Circular may not be charged to other Federal or state
awards to overcome fund deficiencies, to avoid restrictions imposed by law or terms
of the Federal or state awards, or for other reasons. However; this prohibition would
not preclude governmental units from shifting costs that are allowable under two or
more awards in accordance with existing program agreements .
d. Where an accumulation of indirect costs will ultimately result in charges to a Federal
or state award, a cost allocation plan will be required as described in Attachments C,
D,andE.
4. Applicable credits.
a. Applicable credits refer to those receipts or reduction of expenditure-type transactions
that offset or reduce expense items allocable to Federal or state awards as direct or
indirect costs. Examples of such transactions are: purchase discounts, rebates or
allowances, recoveries· or indemnities on losses, insurance refunds or rebates, and
adjustments of overpayments or erroneous charges. To the extent that such credits
accruing to or received by the governmental unit relate to allowable costs, they shall
be credited to the Federal or stat~ award either as a cost reduction or cash refund, as
appropriate.
b. In some instances, the amounts received from the state or Federal Government to
finance activities or service operations of the governmental unit should be treated as
applicable credits.
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Specifically, the concept of netting such credit items (including any amounts used to
meet cost sharing or matching requirements) should be recognized in determining the
rates or amounts to be charged to Federal or state awards. (See Attachment B, item
15, ''Depreciation and use allowances," for areas of potential application in the matter
of Federal or state financing of activities.)
D . Composition of Cost
I . Total cost. The total cost of Federal and state awards is comprised of the allowable direct
cost of the program, plus its allocable portion of allowable indirect costs, less applicable
credits.
2. Classification of costs. There is no universal rule for classifying certain costs as either
direct or-indirect under every accounting system. A cost may be direct with respect to
some specific service or function, but indirect with respect to the Federal or state award
or other final cost objective. Therefore, it is essential that each item of cost be treated
consistently in like circumstances either as a direct or an indirect cost. Guidelines for
determining direct and indirect costs charged to Federal or state awards are provided in
the sections that follow.
E. Direct Costs
1. Genetal. Direct costs are those that can be identified specifically with a particular final
cost objective.
2. Application. Typical direct costs chargeable to Federal or state awards are:
a. Compensation of employees for the time devoted and identified specifically to the
performance of those awards .
. b. Cost of materials acquired, consumed, or expended specifically for the purpose of
those awards.
c. Equipment and other approval capital expenditures.
d . Travel expenses incurred specifically to carry out the award.
3 . Minor items. Any direct cost of a minor amount may be treated as an indirect cost for
reasons of practicality where such ac~ounting treatment for that item of cost is
consistently appli~ to all cost objectives.
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F. Indirect Costs
1. General. Indirect costs are those: (a) incurred for a common or joint purpose benefiting
more than one cost objective, and (b) not readily assignable to the cost objectives
specifically benefited, without effort disproportionate to the results achieved. The term
"indirect costs," as used herein, applies to costs of this type originating in the grantee
department, as well as those incurred by other departments in supplying goods, services,
and facilities. To facilitate equitable distribution of indirect expenses to the cost
objectives served, it may be necessary to establish a number of pools of indirect costs
within an entity or in other agencies providing services to an entity. Indirect cost pools
should be distributed to benefited cost objectives on bases that will produce an equitable
result in consideration of relative benefits derived.
2. Cost allocation plans and indirect cost proposals. Requirements for development and
submission of cost allocation plans and indirect cost rate proposals are contained in
Attachments C, D, and E.
3. Limitation on indirect or administrative costs ..
a. · In addition to restrictions contained in this Circular, there may be laws that further
limit the amount of administrative or indirect cost allowed.
b. Amounts not recoverable as indirect costs or administrative costs under one Federal
or state award may not be shifted to another Federal or state award, unless specifically
authorized by Federal or state legislation or regulation.
G. Interagency Services
The cost of services provided by one agency to another within the governmental unit may
include allowable direct costs of the service plus a pro rate share of indirect costs. A standard
indirect cost allowance equal to ten percent of the direct salary and wage cost of providing
the service (excluding overtime, shift premiums, and fringe benefits) may be used in lieu of
determining the actual indirect costs of the service. These services do not include centraliz.ed
services included in central service cost allocation plans as described in Attachment C.
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H. Required Certifications
Each cost allocation plan or indirect cost rate proposal required by Attachmen~ C and E must
comply with the following:
1. No proposal to establish a cost allocation plan or an indirect cost rate, whether •
submitted to a Federal cogniunt agency, state single audit coordinating agency or
other agency designated by the governor's office or maintained on file by the
governmental unit, shall be acceptable unless such co~ have been certified by the
governmental unit using the Certificate of Cost Allocation Plan or Certificate of .
Indirect Costs as set forth in Attachments C and E. Toe certificate must be signed on
behalf of the governmental unit by an individual at a level no lower than chief
financial officer of the governmental unit that submits the proposal or component
covered by the proposal.
2. No cost allocation plan or indirect cost rate shall be approved by the Federal
Government, state single audit coordinating agency or other agency designated by the
governor's office, unless the plan or rate proposal has been certified. Where ~t is
necessary to establish a cost allocation plan or an indirect cost rate and the grantee has
not submitted a certified proposal for establishing such a plan or rate in accordance
with the requirements, the Federal Government, state single audit coordinating agency
or other agency designated by the governor's office may either disallow all indirect
costs or unilaterally establish such a plan or rate. Such a plan or rate may be based
upon audited hi~orical data or such other data that have been furnished to the
cogn.iz.ant Federal. agency, state single audit coordinating agency or other agency
designated by the governor's office and for which it can be demonstrated that all
unallowable costs have been excluded. When a cost allocation plan or indirect cost
rate is unilaterally established by the Federal Government, state single audit
coordinating agency or other agency designated by the governor's office because of
failure of the grantee to submit a certified proposal, the plan or rate established will be
.set to ensure that potentially unallowable costs will not be reimbursed.
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A TI ACHMENT B -Selected Items of Cost
Sections 1 through 44 provide principles to be applied in establishing the allowability or
unallowability of certain items of cost. These principles apply whether a cost is treated as direct
· or indirect. A cost is allowable for Federal or state reimbursement only to the extent of benefits
received by Federal or state awards and its conformance with the general policies and principles
stated in Attachment A, of the Uniform Grant Management Standards, Cost Principles Section.
Failure to mention a particular item of cost in these sections is not intended to imply that it is
either allowable or unallowable; rather, determination of allowability in each case should be
based on the treatment or standards provided for similar or related items of cost.
1. Accounting. The cost of establishing and maintaining accounting and other information
systems is allowable.
2. Advertising and public relations costs.
a. The term "advertising costs" means the costs of advertising media and corollary
administrative . costs. Advertising media include magazines, newspapers, radio and
television programs, direct mail, exhibits, and the like.
b. The term "public relations" includes community relations and means those activities
dedicated to maintaining the image of the governmental unit or maintaining or promoting
understanding and favorable relations with the community or public at large or any
segment of the public.
c. Advertising costs are allowable only when incurred for the recruitment of personnel, the
procurement of goods and services, the disposal of swplus materials, and any other
specific purposes directly related to the purpose(s) of the program receiving grant
assistance necessary to meet the requirements of the Federal or state award. Advertising
costs associated with the disposal of surplus materials are not allowable where all
disposal costs are reimbursed based on a standard rate as specified in tlie grants
management common rule.
Advertising required by programs may be allowable as direct costs, depending on
the program contractual agreement, availability of funds or laws.
d . Public relations costs are allowable when:
(1) Specifically required by the Federal or state award and then only as direct cost;
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(2) Incurred to communicate with the public and press pertaining to specific activities or
accomplishments that result from performance .of the Federal or state award and then
only as a direct cost; or
(3) Necessary to conduct general liaison with news media and government public· ·
relations officers, to the extent that such activities are limited to communication and
liaison necessary to keep the public informed on matters of public concern, such as
notices of Federal or state contract/grant awards, financial matters, etc.
e. Unallowable advertising and public relations costs include the following:
( 1) All advertising and public relations costs other than as specified in subsections c. and
d.;
(2) Except as otherwise permitted by these cost principles, costs of conventions,
meetings, or other events related to other activities of the governmental unit
including:
. .
(a) Costs of displays, demonstrations, and exhibits;
(b) Costs of meeting rooms, hospitality suites, and other specials facilities used in
conjunction with shows and other special events; and
(c) Salaries and wages of employees engaged in setting up and displaying exhibits,
making demonstrations, and providing briefings;
(3) Costs of promotional items and memorabilia, including models, gifts, arid souvenirs;
and
( 4) Costs of advertising and public relations designed solely to promote the governmental
unit.
(5) Costs of publicizing or directing attention to any individual official or employee of
any agency of the state government (Article IX, Sec. 6, General Appropriations Act
1995).
(6) Costs associated wi~ influencing the outcome of any election, or the passage or ·
defeat of any legislative measure.
3. Advisory councils. Costs incurred by advisory councils or committees are allowable as a
direct cost where authorized by the Federal or stat~ awarding agency or as indirect cost where
allocable to Federal or state awards. Article 6252-33, VTCS, contains detailed provisions ·
relating to state agency advisory committees. State agencies should review these provisions
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as well as check appropriations act riders and general provisions to ensure they meet the
statutory requirements and that expenditures for advisory committees are authorized prior to
making such expenditures ..
· . 4. Alcoholic beverages. Costs of alcoholic beverages are unallowable. Travel expense must
not include any alcoholic beverage costs. ·•
5. Audit services. The costs of audits are allowable provided that the audits were performed in
accordance with the Single Audit Act, as implemented by Circular A-133, "Audits of State
and Local Governments" and the State of Texas Single Audit Circular for state funds.
Generally, the percentage derived by dividing Federal or state funds expended by total funds
expended by the recipient or subrecipient (including program matching funds) during the
fiscal year. The percentage may be exceeded only if appropriate documentation
demonstrates higher actual costs.
Other audit costs are allowable if specifically approved by the awarding or cognizant agency .
as a direct cost to an award or included as an indirectcost in a cost allocation plan or rate.
As with any professional services, procurement of audit services must comply with state
procurement procedures.
6. Automatic electronic data processing~ The cost of data processing services is allowable (but
see section 20, equipment and other capital expenditures, for arlditional guidelines).
7. Bad debts. Any losses (whether actual or estimated) arising from uncollectible accounts
and other claims, and related costs (such as collection and legal costs), are unallowable
unless provided for in Federal or state program award regulations.
8. Bonding costs. Costs of bonding employees and officials are allowable to the extent that
such bonding is in accordance with sound business practice and the .rates and premiums
are comparable to similar organization in similar circumstances.
9. Budgeting. Costs incurred for the development, preparation, presentation, and execution of
budgets are allowable.
10. Communications. Costs of telephone, mail, messenger, and similar communication services
are allowable. Allocation of communication costs must be based on actual costs or
benefit received, properly documented, and consistently applied.
11. Compensation for personnel services.
a General. Compensation for personnel services includes all remuneration, paid currently
or accrued, for services rendered during the period of performance under Federal or state
awards, including but not necessarily limited to wages, salaries, and fringe benefits. The
3
costs of such compensation are allowable to the extent that they satisfy the specific
requirements of the Circular, and that the total compensation for individual employees:
( 1) Is reasonable for the services rendered and conforms to the established policy of the
governmental unit consistently applied to both Federal and non-Federal activities;
(2) Follows ·an appointment made in accordance with a governmental unit's laws and
rules and meets merit system or other requirements required by Federal or state law,
where applicable; and
(3) Is determined and supported as provided in subsection h.
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b. Reasonableness. Compensation for employees engaged in work on Federal or state
awards will be considered reasonable to the extent that it is consistent with that paid for
similar work in other activities or the governmental unit. In cases where the kinds of
employees required for Federal or state awards are not found in the other activities of the
governmental unit, compensation will be considered reasonable to the extent that it is
comparable to that paid for similar work in the labor market in which the employing
government competes for the kind of employees involved. Compensation surveys
providing data representative of the labor market involved will be an acceptable basis for
evaluating reasonableness.
c. Unallowable costs. Costs which arc unailowable under other sections. of these principles
shall not be allowable under this section solely on the basis that they constitute personnel
compensation.
d. Fringe benefits.
(1) Fringe benefits are allowances and services provided by employers to their employees
as compensation in addition to regular salaries and wages. Fringe benefits include,
but are not limited to, the costs of leave, employee insurance, pensions, and
unemployment benefit plans. Except as provided elsewhere in these principles, the
costs of fringe benefits are allowable to the extent that the benefits are reasonable and
are required by law, governmental unit-employee agreement, or an established policy
-of the gove~ental unit.
(2) The cost of fringe benefits in the form of regular compensation paid to employees
during periods of authorized absences from the job, such as for annual leave, sick
leave, holidays, court leave, military leave, and other similar benefits, are allowable
if: (a) they are provided under established written leave policies; (b) the costs are
equitably allocated to all related activities, including Federal or state awards; and, (c)
the accounting basis ( cash or accrual) selected for costing each type of leave is
consistently follo~ed by the governmental unit.
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(3) When a governmental unit uses the cash basis of accounting, the cost of leave is
recognized in the period that the leave is taken and paid for. Payments for unused
leave when an employee retires or terminates employment are allowable in the year of
payment provided they are allocated as a genei:al administrative expense to all
activities of the governmental unit or component.
( 4) The accrual basis may be used only for those types of leave for which a liability as
defined by Generally Accepted Accounting Principles (GAAP) exists when the leave
is earned. When a governmental unit uses the accrual basis of accounting, in ·
accordance with GAAP, allowable leave costs are the lesser of the amount accrued or
funded. ·
(5) The cost of fringe benefits in the form of employer contributions or expenses for
social security; employee life, ~cal~ unemployment, and worker's compensation
insurance ( except as indicated in-section 26, Insurance and indemnification); pension
plan costs (see subsection e.); and other similar benefits are allowable, provided such
benefits are granted under established written policies. Such benefits, whether treated
as indirect costs or as direct costs, shall be allocated to Federal or state awards and all
other activities in a manner consistent with the pattern of benefits attributable to the
individuals or group(s) of employees whose salaries and wages are chargeable to such
Federal or state awards and other activities.
e . Pension plan costs. Pension plan costs arc allowable for bona fide plans established
under state or federal law. Pension plan. costs may be computed using a pay-as~you-go
method or an acceptable actuarial cost method in accordance with established written
policies of the governmental unit. Such policies must meet the test of reasonableness
as compared with those of like entities and fall within Internal Revenue Service
approved guidelines.
(I) For pension plans financed on a pay-as-you-go method, allowable costs will be
limited to those representing actual payments to retirees or their beneficiaries.
(2) Pension costs calculated using an actuarial cost-based method recognized by GAAP
are allowable for a given fiscal year if they are funded for that year within six months
after the end of that year. Costs funded after the six month period (or a later period
agreed to by the cogni:nmt agency) are allowable in the year funded.
The cognizant agency, state single audit coordinating agency or other agency
designated by the governor'$ office may agree to an extension of the six month period
if an appropriate adjustment is made to compensate for the timing of the charges to
the Federal Government or state government and related Federal or state
reimbursement and the governmental unit's contribution to the pension fund.
s
Adjustments may be made by cash refund or 'other equitable procedures to
compensate the Federal Government or state government for the time value of Federal
or state reimbursements in excess of contributions to the pension fund.
(3) Amounts funded by the governmental unit in excess of the actuarially determined
amount for a fiscal year may be used as the governmental unit's contribution in future
periods.
( 4) When a governmental unit converts to an acceptable actuarial cost method, as defined
by GAAP, and funds pension costs in accordance with this method, the unfunded
liability at the time of conversion shall be allowable if amortized _over a period of
years in accordance with GAAP.
(5) The Federal Government and state grantor agencies shall receive an equitable share of
any previously allowed pension costs (including earnings thereon) which revert or
inure to the governmental unit in the form of a refund, withdrawal, or other credit.
f. Post-retirement health benefits. Post-retirement health benefits (PRHB) refers to costs of
health insurance or health services not included in a pension plan covered by subsection
e. for retirees and their spouses, dependents, and survivors. PRHB costs may be
computed using a pay-as-you-go method to an acceptable actuarial cost method in
accordance with established written policies of the governmental unit
(1) For PRHB financed on a pay-as-you-go method, allowable costs will be limited to
those representing actual payments to retirees or their beneficiaries.
(2) PRHB costs calculated using an actuarial cost method recognized by GAAP are
allowable if they are funded for that year within six months after the end of that year.
Costs funded after the six month period (or a later period agreed to by the cognizant
agency) are allowable in the year funded. The cogni:rant agency, state single audit
coordinating agency or other agency designated by the governor's office may agree to
an extension of the six month period if an appropriate adjustment is made to
compensate for the timing of the charges to the Federal Government or state
government and related Federal or state reimbursements and the governmental unit's
contributions to the PRHB fund. Adjustments may be made by cash refund, reduction
in current year's PRHB costs, or other equitable procedures to compensate the
Federal Government for the time value of Federal reimbursements in excess of
contributions to the PRHB fund.
(3) Amounts funded in excess of the actuarially determined amount for a fiscal year may
be used as the government's contribution in a future period.
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( 4) When a governmental unit converts to an acceptable actuarial cost method and funds
PRHB costs in accordance with this method, the initial unfunded liability attributable
to prior years shall be allowable if amortized over a period of years in accordance
with GAAP, and, if no such GAAP peri_od exists, over a period negotiated with the
cognizant agency.
(5) To be allowable in the current year, the PRHB costs must be paid either to:
(a) An insurer or other benefit provider as current year costs or premiums, or
(b) An insurer or trustee to maintain a trust fund or reserve for the sole purpose of
providing post-retirement benefits to retirees and other beneficiaries.
· (6) Toe Federal Government or the state grantor agency shall receive an equitable share
of any amounts of previously allowed post-retirement benefit costs (including
earnings thereon) which revert or inure to the governmental unit in the form of a
refund, withdrawal, or other credit
g. Severance pay.
(1) Payments in addition to regular salaries and wages made to workers whose
employment is being terminated are allowable to the extent that, in each case, they are
required by (a) law, (b) employer-employee agreement, or (c) written policy
established prior to the separation.
(2) Severance payments (but not accruals) associated with normal turnover are allowable.
Such payments shall be allocated to all activities of the governmental unit as an
indirect cost.
(3) Abnormal or mass severance pay will be considered on a case-by-case basis and is ·
allowable only if approved by the cognizant Federal agency or state grantor agency.
h . Support of salaries and wages. These standards regarding time distribution are in
addition to the standards for payroll documentation. ·
(1) Charges to Federal or state awards for salaries and wages, whether treated as direct or
indirect costs, will be based on payrolls documented in accordance with generally
accepted practice of the governmental unit and approved by a responsible official(s)
of the governmental unit.
· (2) No further documentation is required for the salaries and wages of employees who
work in a single indirect cost activity.
7
(3) Where employees are expected to work solely on a single Federal or state award or
cost objective, charges for their salaries and wages will be supported by periodic
certifications that the employees worked solely on that program for the period
covered by the certification. These certifications will be prepared at 1~ semi-
annually and will be signed by the employee or supervisory official having first hand
knowledge of the work performed by the employee.
(4) Where employees work on multiple activities or cost objectives, a distribution of their
salaries or wages will be supported by personnel activity reports or equivalent
documentation which meets the standards in subsection (5) unless a statistical
sampling system (see subsection (6)) or other substitute system has been approved by
the cognizant Federal agency or state awarding agency. Such documentary support
will be required where employees work on:
(a) More than one Federal or state award,
(b) A Federal award and a non-Federal award, including a state award,
( c) An indirect cost activity and a direct cost activity,
( d) Two or mor~ indirect activities which are allocated using different allocation
bases, or
( e) An unallowable activity and a direct or indirect cost activity.
(5) Personnel activity reports or equivalent documentation must meet the following
standards:
(a) They must reflect an after-the-fact distribution of the actual activity of each
employee,
(b) They must account for the total activity for which each employee is compensated,
( c) They must be prepared at least monthly and must coincide with one or more pay
periods, and '
( d) They must be signed by the employee and the supervisory official having first
hand knowledge of the work performed by the employee. The employee's
signature is not required in the event the employee cannot be rea~hed due to
termination of employment, lack of forwarding address, death or other
documented reason.
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( e) Budget estimates or other distribution percentages determined before the services
are performed do not qualify as support for charges to Federal or state awards but
may be used for interim accounting purposes, provided that:
(i) The governmental unit's system for establishing the estimates produces
reasonable approximations of the activity actually pcrf ormed; .
(ii) At least quarterly, comparisons of actual costs to budgeted distributions based
on the monthly activity reports are made. Costs charged to Federal or state
awards to reflect adjustments made as a result of the activity performed may
be recorded annually if the quarterly comparisons show the differences
between budgeted and actual costs are less than ten percent; and
(iii)The budget estimates or other distribution percentages are revised at least
quarterly, if necessary, to reflect changed circumstances.
(6) Substitute systems for allocating salaries and wages to Federal or state awards may be
used in place of activity reports. These systems are subject to approval if required by
the cognizant agency, state single audit coordinating agency or other agency
designated by the governor's office. Such systems may include, but are not limited
to, random moment sampling, case counts, _or other quantifiable measures of
employee effort.
(a) Substitute systems which use sampling methods (primarily for Aid to Families
with Dependent Children (AFDC), Medicaid, and other public assistance
programs) must meet acceptable statistical sampling standards including:
(i) The sampling universe must include all of the employees whose salaries and
wages are to be allocated based on sample results except as provided in
subsection ( c );
(ii) The entire· time period involved must be covered by the sample; and
(iii)The results must be statistically valid and applied to the period being sampled.
(b) Allocating charges for the sampled employees' supervisors, clerical and suppo~
staffs, based on the results of the sampled employees, will be acceptable.
( c) Less than full compliance with the statistical sampling standards noted in
subsection (a) may be accepted by the cognizant agency or state single audit
coordinating agency or other agency designated by the governor's office ifit
concludes that the amounts to be allocated to Federal awards will be minimal, or
if it concludes that the system proposed by the governmental unit will result in
9
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lower costs to Federal or state awards than a system which complies with the
standards.
(7) Salaries and wages of employees used in meeting cost shari1:}g or matching
requirements of Federal or state awards must be supported in the same manner as
those claimed as allowable costs under Federal or state awards.
i. Donated services.
(1) Donated or volunteer services may be furnished to a governmental unit by
professional and technical personnel, consultants, and other skilled and unskilled
labor. The value of these services is not reimbursable either as a ·direct or indirect
cost. However, the value of donated services may be used to meet cost sharing or
matching requirements in accordance with the provisions of the Common Rule. The
value placed on donated services must be ·documented to the satisfaction of the
awarding agency prior to being accepted as match or for other financial purposes, and
must be reasonable.
Donated services shall be considered reasonable to the extent they arc consistent with
the value placed on similar work or in other activities of the grantee or subrecipient
In cases where the kinds of services required to carry out a state award are not found
in the other activities of the grantee or subrecipient, compensation will be considered
reasonable to the extent that it is comparable to that paid for similar wcrk in the labor
market in which the employing grantee or subrecipient competes for the kind of
services involved. Surveys providing data representative of the services involved will
be an acceptable basis for evaluating reasonableness.
(2) The value of donated services utilized in the performance of a direct cost activity
shall, when material in amount, be considered in the determination of the
governmental unit's indirect costs .or rate(s) and, accordingly, shall be allocated a
proportionate share of applicable indirect costs.
(3) To the extent feasible, donated services will be supported by the same methods used
by the governmental unit to support the allocability of regular personnel services.
12. Construction. No construction is allowed without the prior written approval of the awarding
agency.
13. Contingencies. Contributions to a contingency reserve or any similar provision made for
events the occurrence of which cannot be foretold with certainty as to time, intensity, or with
an assurance if their happening, are unallowable. The term "contingency reserve" excludes
self-insurance reserves (see subsection 26.c.), pension plan reserves (see subsection 11.e.),
post-retirement health and other benefits reserves (see subsection 11.f.) computed using
10
I
acceptable actuarial cost methods, and such other funds as may be required or permitted in
writing by the awarding agency.
14. Contributions and donations. Contributions and donations, including .cash, property, and
services, by governmental units to others, regardless of the recipient, are unallowable.
15 . Defense and prosecution of criminal and civil proceedings, and claims.
a. The following costs are unallowable for contracts covered by 10 U.S.C. 2324(k),
"Allowable costs under defense contracts."
(1) Costs incurred in defense of any civil or criminal fraud proceeding or similar
proceeding (including filing of false certification brought by the United States where
the contractor is found liable or has pleaded nolo contendere to a charge of fraud or
similar proceeding including filing of a false certification).
(2) Costs .incurred by a contractor in connection with any criminal, civil or administrative
proceedings commenced by the United States or a State to the extent provided in 10
u.s.c. 2324(k).
b . Legal expenses required in the administration of Federal or state programs are allowable.
Legal expenses for prosecution of claims against the Federal Government are
unallowable.
16 . Depreciation and use allowances.
a. Depreciation and use allowances are means of allocating the cost of fixed assets to
periods benefiting from asset use. Compensation for the use of fixed assets on band may
be made through depreciation or use allowances. A combination of the two methods may
not be used in connection with a single class of fixed assets ( e .g., buildings, office
~quipment, computer equipment, etc.) except as provided in subsection g. Except for
enterprise funds and internal service funds that are included as part of a State/local cost
allocation plan, classes of assets shall be determined on the same basis used for the
government-wide financial statements.
b . The computation of depreciation or use allowances shall be based on the acquisition cost
of the assets involved. Where actual cost records have not been maintained, a reasonable
estimate of the original acquisition cost may be used. The value of an asset donated to
the governmental unit by an unrelated third party shall be its fair market value at the time
of donation. Governmental or quasi-governmental organizations located within the same .
State shall not be considered unrelated third parties for this purpose.
11 .
c. The computation of depreciation or use allowances will exclude:
(1) The cost ofland;
(2) Any portion of the cost of buildings and equipment borne by or donated by the.
Federal Government or state irrespective of where title was originally vested or where
it presently resides; and
(3) Any portion of the ·cost of buildings and equipment contributed by or for the
governmental unit, or a related donor organization, in satisfaction of a matching
requirement.
d . Where the use allowance method is followed, the use allowance for buildings and
improvements (including land improvements, such as paved parking areas, fences, and
sidewalks) will be computed at an annual rate not exceeding two percent of acquisition
costs. The use allowance for equipment will be computed at an annual rate not exceeding
six and two-thirds percent (6 and 2/3) of acquisition cost. When the use allowance
method is used for buildings, the entire building must be treated as a single asset; the
building's components (e.g., plumbing system, heating and air condition, etc.) cannot be
segregated from the building's shell, The two percent limitation, however, need not be
applied to 'equipment which is merely attached or fastened to the building but not
permanently fixed to it and which is used as furnishings or decorations or for specialized
purposes ( e.g., dentist chairs and dental treatment units, counters, laboratory benches
bolted to the floor, dishwashers, modular furniture, carpeting~ etc.). Such equipment will
be considered as not being permanently fixed to the building if it can be removed without
the destruction of, or need for costly or extensive alterations or repairs, to the building or ·
the equipment. Equipment that meets these criteria will be subject to the 6 and 2/3
percent equipment use allowance limitations. This is equivalent to a IS-year useful life
depreciation ~chedule.
e. Where the depreciation method is followed, the period of useful service (useful life)
established in each case for usable capital assets must take into consideration such factors
as type of construction, nature of the equipment used, historical usage patterns,
· technologi cal developments, and the renewal and replacement policies of the
governmental unit followed for the individual items or classes of assets involved. In the
absence of clear evidence indicating that the expected consumption of the asset will be
significantly greater in the early portions than in the later portions of its useful life~ the
straight line method of depreciation shall be used. Depreciation methods once used shall
not be changed unless approved by the Federal cognizant or awarding agency, state single
audit coordinating agency or other agency designated by the governor's office for indirect
· cost plans or state awarding agency for bilateral financial assistance relationships. When
the depreciation method is introduced for application to an asset previously subject to a
use allowance, the annual depreciation charge thereon may not exceed the amount that
12
I
would have resulted had the depreciation method been in effect from the date of
acquisition of the asset. The combination of use allowances and depreciation applicable
to the asset shall not exceed the total acquisition cost of the asset or fair market value at
time of donation.
f. When the depreciation method is used for buildings, a building's shell may be segregated
from the major component of the building (e.g., plumbing system, heating, and air
conditioning system, etc.) and each major component depreciated over its estimated
useful life, or the entire building (i.e., the shell and all components) may be treated as a
single asset and depreciated over a single use life. Adequate depreciation records
indicating the amount of depreciation taken each period must also be maintained.
In the case of the buildings, the basis shall be the acquisition cost plus the cost of any
capital improvements. Capital improvements to the building in yean subsequent to
the building's original purchase year shall be capitalized and depreciated
separately.
The basis, or value for depreciation purposes, shall be the acquisition cost of the
equipment. The acquisition cost of the equipment shall not include interest or any
other charges that do not impact the cost of the asset. Shipping, installation, setup
fees and other costs necessary to get an asset "up and running" may be added to the
basis of the asset for allowable depreciation purposes. Capital improvements are
material renovations (o'r improvements) that have a useful life greater that one year
and have not been expended or charged to a grant. Capital improvements for assets
other than buildings, shall be capitalized and depreciated separately.
The depreciable life of these capital improvements shall be that of the remaining life
of the building or the actual life of the improvement, whichever is greater.
It shall be the responsibility of the recipient to verify the cost, depreciable basis, and
year of purchase, identification number, and to maintain documentation of the same
for monitoring and/or audit verification.
1. Depreciable lives for indirect cost pool purposes .
In addition to the requirements established by the Uniform Grant Management
Standards stated above, the following guidelines· atldressing depreciable lives
should be consid~red. These additional guidelines are intended to further
consistency among organizations.
-. H only one class of assets ( other than real property) is recorded on the
financial statements, then the useful life of the assets will be actual average
life, but not less than 15 yean.
13
I
-+ If the assets are classified as separate classes on the financial statement, then
the useful lives shall be established as actual lives of the assets, but not less
than the useful lives indicated on the table below.
Useful Life
5 Year Property
15 Year Property
15 Year Property
10 Year Property
Useful Life
Best Estimate of Useful
Life
Property Includes;
Automobiles, Buses and Trucks, Computers. and
Peripheral Equipment, and Property used in
research and experimentation
Office Furniture and Fixtures
Office Equipment (other than computers)
Water Transportation Equipment (including boats,
barges, tugs, etc.)
Property Includes;
Non-residential Real Property, Office Buildings, and
Schools
g .. A reasonable use allowance may be negotiated for any assets that are considered to be fully
depreciated, after taking into consideration the amount of depreciation previously charged to
the government, the estimated useful life remaining at the time of negotiation, .the effect of
any increased maintenance charges, decreased efficiency due to age, and any other factors
pertinent to the utilization of the asset for the purpose contemplated.
h. Charges for use allowances or depreciation must be supported by adequate property records.
Physical inventories must be taken at least once every two years (a statistical sampling
approach is acceptable) to ensure that assets exist, and are in use. Governmental units will
manage equipment in accordance with State laws and procedures. When the depreciation
. method is followed, depreciation records indicating the amount of depreciation taken each
period must also be maintained.
17. Disbursing service. The cost of disbursing funds by the treasurer or other designated officer
is allowable.
18. Employee morale, health, and welfare costs. The costs of health or first-aid clini~ and/or
infirmarie~, recreational facilities, employee counseling services, employee information
publications, and any related e?q>Cnses incurred in accordance with a Kovemmental unit's
14
I
policy are allowable. Income generated from any of these activities will be offset against
expenses.
a. This costs must be incurred in accordance with the governmental unit's policy and
provide the above benefits to all employees. In addition, the objective of this type of
costs is to improve working conditions, employer-employee relations~ employee
moral, emp.oyee performance and health. .
b. Acceptable recreational facilities are those facilities intended to promote health
maintenance. Facilities that require a restricted membenhip and/or their main
objective is to provide social activities among the memben, such as social clubs,
country clubs, are not allowable costs.
c. Incidental costs incurred in acceptable recreational facilities such as: beverages,
food, clothing, or late charges are not allowed.
d. Cost is equitably apportioned to all activities of the organization. Income generated
from any of these activities will be offset against the cost.
19. Entertainment. Costs of entertainment, including amusement, diversion, social activities, and
banquets, and any costs directly associated with such costs (such as tickets to shows or
sports events, meals, lodging, rentals,·transportation, and gratuities) are unallowable, unless
such costs are incurred for components of a program approved by the grantor agency a.ad are
directly related to the program's purpose. In that case, the cost must be charged as direct
costs.
Cost of food, beverage, or food service provided in the subrecipients office is
unallowable.
20. Equipment and other capital expenditures:
a. "As used in this .section the following terms have the meanings as set forth below:
(1) "Capital expenditure" means the cost of the asset including the cost to put it in
place. Capital expenditure for equipment means the net invoice price of the
equipment, including.the cost of any modifications, attachments, accessories, or
auxiliary apparatus necessary to make it usable for t;he purpose for which it is
acquired.
Ancillary charges, such as wees, duty, protective in transit insurance, freight, and
installation may be included in, or excluded from, capital expenditure cost in
accordance with the governmental unit's regular accoW1ting practices.
15
(2) "Equipment" means an article of nonexpendable, tangible personal property having a
useful life of more than one year and an acquisition cost which equals the lesser of(a)
the capitalization level established by the governmental unit for financial statement
purposes, or (b) $1,000.
(3) "Other capital assets" mean buildings, land, and improvements to buildings or land
that materially increases their value or useful life.
b .. Capital expenditures which are not charged directly to a Federal or state award may be
recovered through use allowances or depreciation in buildings, capital improvements, and
equipment (see section 16). See also section 38 for allowability of rental costs for
buildings and equipment.
c. Capital expenditures for equipment, including replacement equipment, other capital
assets, and improvements which materially increase the value or useful life of equipment
or other capital assets are allowable as a direct cost when approved by the awarding
agency.
Federal and state awarding agencies are authorized at their option to waive or delegate this
approval requirement
d. Items of equipment with an acquisition cost of less than S 1,000 ( or subsequent threshold
established by state law) are considered to be supplies and are allowable as direct costs of
Federal pass-through or state awards without specific awarding agency approval.
e. The unamortized portion of any equipment written off as a result of a change in
capitalization levels may be recovered by (1) continuing to claim the otherwise allowable
use allowances or depreciation charges on the equipment or by (2) amortizing the amount
to be written off over a period of years negotiated with the cognivmt agency.
f. When replacing equipment purchased in whole or in part with Federal or state funds, the
· governmental unit may use the equipment to be replaced as a trade-in or sell the property
and use the proceeds to offset the cost of the replacement property. In addition, subject to
the ·prior written approval of the state aw~ding agency, a capitafuation fund may be
established to fund the acquisition of replacement or improved equipment
Recipients must adhere to the state procurement requirements established in the
Uniform Grant Management Standards, Grant Administration Section, Subpart C (36)
Procurement, during the acquisition process to ensure reasonable cost.
21. Fines and penalties. Fines, penalties, damages, and other settlements resulting from
violations (or alleged violations) of, or failure of the governmental unit to comply with,
Federal, State, local, or Indian tribal laws and regulations are unallowable except when
16
incurred as ·a result of compliance with specific provisions of the Federal or state award or
written instructions by the awarding agency authorizing in advance such payments.
22. Fund raising and investment management costs.
a Costs of organized fund raising, including financial campaigns, solicitation of gifts and
bequests, and similar expenses incurred to raise capital or obtain contributions are
unallowable, regardless .of the purpose for which the funds will be used.
b. Costs of investment counsel and staff and similar expenses incurred to enhance income
from investments arc unallowablc. However, such costs associated with investments
covering pension, self-insurance, or other funds which include Federal or state
participation allowed by this Circular are allowable.
c. Fund raising and investment activities shall be allocated an appropriate share of indirect
costs under the conditions described in subsection C.3.b. of Attachment A.
23. Gains and losses on disposition of depreciable property and other capital assets and
substantial relocation of Federal or state programs.
a (1) Gains and losses on the sale, retirement, or other disposition of depreciable property
shall be included in the year in which they occur. as credits or charges to the asset cost
grouping(s) in which the property was included. The amount of the gain or loss to be
included as a credit or charge to the appropriate asset cost grouping(s) shall be the
difference between the amount realized on the property and the undepreciated basis of the
property.
(2) Gains and losses on the disposition of depreciable property shall not be recognized as
a separate credit or charge under the following conditions:
(a) The gain or loss is processed through a depreciation account and is reflected in the
depreciation allowable under sections 16 and 20.
(b) The property is given in exchange· as part of the purchase price of a similar item
and the gain or loss is taken into account in determining the depreciation cost
basis of the new item.
( c) A loss results from the failure to maintain permissible insurance, except .as
otherwise provided in subsection 26.d.
( d) Compensation for the use of the property was provided through use allowances in
lieu of depreciation.
17
b. Substantial relocation of Federal or state awards from a facility where the Federal
Government or state participated in the ~cing to another facility prior to the expiration
of the useful life of the financed facility requires Federal or state agency approval. The
extent of the relocation, the amount of the Federal or state participation in the :financing,
and the depreciation charged to date may~ ~egotiation of space charges for Federal
or state awards. ·
'i _';.~-,; i _!( ::--· .
C. Gains or losses of any nature arising from the.sale.or exchange of property other than the
property covered in subsection a, e.g., land ~ included in the fair market value used in
any adjustment resulting from a relocation of Federal or state awards covered in
subsection b. shall be excluded in computing federal or state award costs.
r ,,..,, ..... ~· '. ~--.; •·'
24. General government expenses. :.'··:.;.: .. · ;::. ·:-.t . ·.
a The general costs of government are unallow.able (except as provided in section 43).
These include: "T . • • .r.-'.'-~r .:~:· .
(1) Salaries and expenses of the Office of the Governor of a State or the chief executive
of a political subdivision or the chief executives of federally-recognized Indian tribal
governments;
-. " -. --
(2) Salaries and other expenses of State legislatures, tribal councils, or simi.1.ar local
governmental bodies, su~h as county su~ city .councils, school boards, etc.,
whether incurred for pwposes of legislatio_n 9r_.executive direction;
--. -. -, .. ~. .
,• -.~ ....... :.·.' . · ..
(3) Cost of the judiciary branch of a government;_.._. :_.t :·.
( 4) Cost of prosecutorial activities unless treated as a direct cost to a specific program
when authorized by program regulations -(howcv~~ this does not preclude the
allowability of other legal activities of the A~ey.General); and
_ · ._ ':'""·: ... ,.: ri t!.:.;. -.~ .... ----~-.:. ..
(5) Other general types of government services normally provided to the general public,
such as fire and .police, unless provided for as a direct cost in program regulations.
. . . .. -.' . ~::~~::..,~g ?j'\.;_.:..;·· .". '.; ., .
b . For federally-recognized Indian tribal goyemm~ ~ Councils of Governments
(COGs), the portion of salaries and expenses ~Y-~butable to managing and
operating Federal or state programs by the chi~(~~ve and his staff is allowabie.
25. Idle facilities and idle capacity.
a As used in this section the following terms have th~.}D.~gs ~t forth below:
(1) "Facilities" means land and buildings or any portion thereof, equipment individually
18
I
or collectively, or any other tangible capital asset wherever located, and whether
owned or leased by the governmental unit. .
(2) "Idle facilities" means completely unused &cilities that are excess to the
governmental unit's current needs.
(3) "Idle capacity" means the unused capacity of partially used facilities. It is the
difference between (a) that which a facility could achieve under 100 percent operating
time on a one-shift basis less operating intenuptions resulting from time lost for
repairs, setups, unsatisfactory materials, and other normal delays and (b) the extent to
which the facility was actually used to meet demands dming the accounting period.
A multi-shift basis should be used ifit can be shown that this amount of usage would
normally be expected for the type of facility involved.
( 4) "Cost of idle facilities or idle capacity" means costs such as maintenance, repair,
housing, rent and other related costs, e.g., insmance, interest, and depreciation or use
allowances.
b. The costs of idle facilities are unallowable except to the extent that:
(1) They are necessary to meet fluctuations in workload; or
(2) Although not necessary to meet fluctuations in workload, they were necessary when
acquired and are now idle because of changes in program requirements, efforts to
achieve more economical operations, reorganization, termination, or other causes
which could not have reasonably been foreseen. Under the exception stated in this
subsection, costs of idle facilities are allowable for a reasonable period of time,
ordinarily not to exceed one year, de.pendin~ on the initiative taken to use, lease, or
dispose of such facilities. If the recipient anticipates incurring costs of idle
facilities for more than six months, the recipient must include this cost in the
indirect cost plan showing an explanation of the actions taken to minimize or
eliminate the idle facility costs.
c. The costs of idle capacity are normal costs of doing business and are a factor in the
normal fluctuations of usage or indirect cost rates from period to period. Such costs are
allowable, provided that the capacity is reasonably anticipated to be necessary or was
originally reasonable and is not subject to reduction or elimination by use on other
Federal or state awards, subletting, renting, or sale;iri. accordance with sound business,
economic, or security practices.
Widespread idle capacity throughout an entire facility or among a group of assets having
substantially the same function may be considered idle facilities.
19
I
26. Insurance and indemnification.
a Costs of insurance required or approved and maintained, pursuant to the Federal or state
award, are allowable.
. .
b. Costs of other insurance in connection with the general conduct of activities are allowable
subject to the following limitations:
(1) Types and extent and cost of coverage arc in accordance with the governmental unit's
policy and sound business practice.
(2) Costs of insurance or of contributions to any reserve covering the risk of loss of, or
damage to, Federal Government or state property are unallowable except to the extent
that the awarding agency has specifically required or approved such costs.
c. Actual losses which could have been covered by permissible insurance (through a self-
insurance program or otherwise) are unallowable, unless expressly provided for in the
Federal or state award or as described below. However, the Federal Government will
participate in actual losses of a self insurance fund that are in excess of reserves.
Costs incurred because of losses not covered under nominal deductible insurance
coverage provided in keeping with sound management practice, and minor losses not
covered by insurance, such as spoilage, breakage, and disappearance of small hand tools,
which occur in the ordinary course of operations, are allowable. However, if such losses
result in an aggregate loss of $1,000 or more within a twelve month period, the grantee or
subrecipient may be required to reimburse the grantor agency.
d. Contributions to a reserve for certain self-jnsurance programs including workers
compensation, unemployment compensation, and severance pay are allowable subject to
the following provisions: . ::-: :; ,, . .-: . · .
(1) The type of coverage and the extent of coverage and the rates and premiums would
have been allowed bad insurance (including reinsurance) been purchased to cover the
risks. However, provision for known or reasonably estimated self-insured liabilities,
which do not become payable for more than one year after the provision is made,
shall not exceed the discounted present value of the liability. '.fhe rate used for
discounting the liability must be determined by _giving consideration to such factors as
the governmental unit's settlement rate for those liabilities and its investment rate of
return. ----:i ~ r:-.1.~~ ~-: -!_j. ::_ 1.t:J · .. :
(2) Earnings or investment income on reserves inust be credited to those reserves.
(3) Contributions to reserves must be based on sound actuarial principles using historical
experience and reasonable assumptions.
20
Reserve levels must be analyzed and updated at least biennially for each major risk
being insured and taken into account any remsurance, coinsurance, etc. Reserve
lev~ls related to _employee-related coyerag~ ~wiJ) normallY ~ limited to th~ v~ue of
claims ~a) submitted and adjudicated l?ut n~ pi~ (b) submitted but not adJudicated,
and ( c) mcurred but not submitted. Reserve levels in excess of the amounts based on
the above must be identified and justifi~ fu the cost allocation plan or indirect cost
rate proposal. . : : ;,~..:;:::" -;.:.:
_·:·~·:;;f::r(.:·: ~
(4) Accounting records, actuarial studies, and cost allocations. (or billings) must recognize
any significant differences due to .types of~ risk an~ losses generated by the
various insured activities or agencies of. the goyc:mmental unit. If individual
departments or agencies of the governmcntal .~t experience significantly different
levels of claims for a particular risk, those differences are to be recognized by the use
of separate allocations or other techniques ~ting in an equitable allocation.
(5) Whenever funds are transferred from '~ seif~~ce reserve to other accounts (e.g.
general fund), refunds shall be made to the Federal Government or state for its share
of funds transferred, including earned or imputed interest from the date of transfer.
. . •'1 ;-.:_:::-!'"" _-; :·
(6) All transactions must comply with state law.:,::·~'..~. ::·.·
e. Actual claims paid to or o n behalf of employees or. former employees for workers'
compensation, unemployment compensation, severance pay, and similar employee
benefits ( e.g., subsection 11.f. for post retirement health benefits), are allowable in the
year of payment provided (1) the governmental unit follows a consistent costing policy
and (2) they are allocated as a general administratiye ~ to all activities of the
governmental unit. The state awarding agency may require that copies of claims paid be
submitted for review prior to allowing recovery of costs.
f . Insurance refunds shall be credited against insuranc_e costs in the year the refund is
received. . ·-7 __ ,.,.,::,~
g. Indemnification includes securing the governmental_ ~t against liabilities to third
persons and other losses not compensated by ~cc or otherwise. The Federal
Government or state is obligated to indemnify the goyemmental unit only to the extent
expressly provided for in the Federal or state award, except as provided in subsection d .
h. Costs of commercial insurance that protects ag~ th~ costs of the contractor for
correction of the contractor's own defects in materials or workmanship are unallowable.
i. Costs of insurance on the lives of trustees, officers, or other employees holding
positions of similar responsibility are unallowabl~ if the .o_rganization is named as
the beneficiary. · . -. t-·. •
.. : ·.• ·.:. ~· :· .
21
27. Interest. . . ·~· .•. . .
a. Costs incurred for interest on borrowed capital or the use of a · governmental unit's own
funds, however represented, are unallowable except as specifically provided in subsection
b. or authomed by Federal or state legislation.
...... ~ -
···-.;J .
b. Financing costs (including interest) paid or incurred on or after the e~ective date of the
Circular associated with the otherwise allowable·costs of building acquisition,
construction, or fabrication, reconstruction or remodeling completed on or after October
1, 1980 is allowable, subject to the conditions in (1 }{ 4). Financing costs (including
interest) paid or incurred on or after the effective' date of this Circular associated with
otherwise allowable costs of equipment is allowable; subject to the conditions in (1)-(4) .
... , . -t ; .-.
(1) The financing is provided (from other than tax or user fee sources) by a bona fide
third party external to the governmental unit;
(2) The assets are used in support of Federal or ·state awards;
. : !'~ ;J • ; ·. J: . .
(3) Earnings on debt service reserve funds or interest earned on borrowed funds pending
payment (?f the construction or acquisition costs are 'used to offset the current period's
cost or the capitalized interest, as appropriate. Earnings subject to being reported to
the Federal Internal Revue Service W1der arbitragr, requirements are excludable.
(4) Governmental units will negotiate the amount of allowable interest whenever cash
payments (interest, depreciation, use allowances~ and contributions) exceed the
governmental unit's cash payments and other contributions attributable to that portion
of real property used for Federal or state awards.
28. Lobbying. The cost of certain influencing activities associated with obtaining grants,
contracts, cooperative agreements, or loans is an unallowable cost.-Lobbying with respect to
certain grants;contracts, cooperative agreements~ and loans shall be governed by the common
rule, "New Restrictions on Lobbying" published at 55 FR 6736 (February 26, 1990),
including definitions, and the Office of Management and Budget "Government-wide
Guidance for New Restrictions on Lobbying" and notices published at 54 FR 52306
(December 20, 1989), 55 FR 24540 (June 15, 1990), and 57 FR 1772 (January 15, 1992),
respectively . ~ _,:: .:.:_ ·~::-.
. . . : ·=:. :· :<· .· ·,.
a. Costs paid from grant funds associated with the following activities are unallowable:
1. Attempts to influence the outcomes of any federal, state, or local election,
referendum, legislation, initiative, or similar proc~ure, through in kind or cash ·
contributions, endorsements, publicity, or similar a~tivity. Personnel travel or other
costs of employees or board members for this type-~f activity is also unallowable;
-~ ·~·~:::, .. :-:-~.-...-. .. -.:::_: ""_:
2. Establishing, administrating, contributing to, or paying the expenses of a political
22
,
party, campaign, political action commtttee, or other organization influencing the
outcomes of elections; · · .
a. Any attempt to influence:
1. The introduction of federal or state legislation, or
2. The enactment or modification of any pending federal or state legislation
through cominunication with any member/employee or Congress/state
legislature, or with any government offldaJ/employee in connection with a
decision to sign or veto enrolled legislation; by preparing, distributing, or
using publicity/propaganda, or by urgln1 members of the general public or
any segment thereof to contribute to or to participate in any mass
demonstration, march, rally, fundralslng "drive, lobbying campaign or letter
writing or telephone campaign, or
3. Legislative liaison activities, includin& attendance at legislative sessions or
committee hearings, gathering information regarding legislation,
coordinating the communication of board members a~d other organization
members with a member/employee of the Congress/state legislature, and
analyzing the effects of legislation, when such activities are carried on in
support of or in knowing preparation for an effort to engage in unallowable
lobbying.
29. Maintenance, operations, and repairs. Unless prohibited by law, the cost of utilities,
insurance, secwity, janitorial services, elevator service, upkeep of grounds, necessary .
maintenance, normal repairs and alterations, and the like are allowable to the extent that they:
(1) keep property (including Federal property, unless otherwise provided for) in an efficient
operating condition, (2) do not add to the permanent value ·of property or appreciably prolong
its intended life, and (3) are not otherwise included in rcnial or other charges for space. Costs
which add to the permanent value of property or appreciably prolong its intended life shall be
treated as capital expenditures (see sections 16 and 20). ···>{,:,_:: ·.
·. • -,;·,_. ,i,;.: 4t.....,.. ~•·'.. • : .... ""-! ·U.-, ........... ~-· ,:-·.
30. Materials and supplies. The cost of materials and supplies.is allowable. Purchases should be
charged at their actual prices after deducting all cash ~~~trade discounts, rebates, and
allowances received. Withdrawals from general stores or ·stockrooms should be charged at
cost under any recognized method of pricing, consistently appli_C<[~Incoming transportation
charges are a proper part of materials and supply costs. 1 !211h i.:~ ol .:-• .
31. Memberships, subscriptions, and professional activities. , . : · .:.'. ·. · ·, · ·
•, :.• ...
a. Costs of the governmental unit's memberships in busin~-tecbnical, and professional
organizations are allowable. However, the following limitatiou ihall be followed to
ensure the membership costs are consistent with otlie(organizations, are
reasonable, and allowable: · · :.·.1hj ~1 ~ ~tb.:. : 2· · ·
\_.: -·. . . ... : . ~: ·:.
23
-· .....
1. Recipients must select the ~owest level of membenhip available to obtain the
. ,. :., .. ~; -t .... -... ' .
necessary benefits •• Ben~fits of the mem~hJp as it relates to all or specific
programs· must be identified and documented.
2. Additional charges, such as special assessments and initiatives, must be direct
billed if program specific or included in ind.ired costs if they benefit all
programs.
3. Costs of membership in organizations substantially engaged in lobbying are
unallowable. Except as authorized by law no funds shall be expended in ·
payment of membership dues to an organization on behalf of-the recipient or an
employee of an recipient if the organization pays all or part of the salary of a
person required to register under Chapter 305, Government Code.
,·r; T ··> .1~ ..
b. Costs of the governmental unit's subscriptions to business, professional and technical
periodicals are allowable. -· -·,. (~ . .! :\·~-·::--· .
c. Costs of meetings and conferences where the primary purpose is the dissemination of
technical information, including meals, transportation; rental of meeting facilities, and
other incidental costs are allowable. These costs must meet the general tests of
allowability and the applicable travel cost regulations. .
d. Costs of membership in civic and community, social organizations are allowable as a
direct cost with the approval of the Federal or state awarding agency.
e. Costs of membership in organiz.ations substantially engaged in lobbying are unallowable.
32. Motor pools. The costs of a service organiz.ation which provides automobiles to user
governmental units at a mileage or fixed rate and/or provides vehicle maintenance,
inspection, and repair services are allowable. · ::.1~n~ 3U_ ; · · ·
33. Pre-award costs. Pre-award costs are those incurred prior to the effective date of the award
directly pursuant to the negotiation and in anticipation of the award where such costs are
necessary to comply with the propped delivery schedule or period of performance. Such
costs are allowable only to the extent that they would have been allowable if incurred after
the date of the award and only with written approval of the awataing agency. The approval
shall specify the period allowed for incurring costs and the type of costs allowed.
-.-;_ .. ~ .. ~4 ].: ..
34. Professional and consultant service costs.
·a Cost of professional and consultant services rendered by persons or organintions that are
members of a particular profession or possess a special skill, whether or not officers or
employees of the governmental unit, are allowable, subject to section lS when reasonable
24
in rclatfon to the services rendered and when not contingent upon recovery of the costs
from the Federal Government. State agencies should see Chapter 2254, Texas .
Government Code, for detailed provisions related to-selection of consultants and
professional services. · : . ·-~ ~: ~ _ . .
., ... -...... :·.
b. Retainer fees supported by evide~ce of bona ·fi~ ~~ a~able or rendered arc .
allowable. . . . .. '.. . . . ~-~
In determining the allowability of profession~ .~~~ · ~sts, no single factor or any
special combination of facton is necessarily dete~tive. However, the following
facton are relevant:
,· . . .... . . . . ~-.
1. The nature and scope of the service rende~-~-relation to the service required;
2. The qualifications of the individual or concem rendering the service;
... ·-.
3. The necessity of contracting for the service.co~id~ring the organization's ·
capability in the particular areas; . . .. r~ :·.,. ·. ,-:
. ·.: ~ ~'.! :·· ~ .
4. The past pattern of such costs; particularly in the y~n prior to receiving state
awards; .. ,..::·
S. Whether the services can be performed more economically by direct
employment rather than contracting; and
-:_ :::~:;~.:~-:.
6. To ensure reasonable costs, the contractual and c~~~tant services must be
procured following the state procurement guide~es. r:~quirements established in
the Uniform Grant Management Standards, G.rant ~.d~tration Section,
Subpart C (36) Procurement. :t.:. :(::.::;~~-.;
In addition, the signed contract controls how paymen~ ~~}n~de. For example, if
consultants are budgeted on an hourly rate, documen~!io~ of ,one and effort shall
include that rate structure. To simply describe the· services or products delivered at
the end of the contract period is not sufficient. If the ~1~_n! .!S t~ _cost the final .
product, the budget line-item and the consultant ap:ee~~~t ~~~~-be structured to
reflect that intent. In addition, costs of retainer fees to the allol'.fable professional
urvice provider must be supported by evidence of bona fide services available or
rendered. · . · .. ,_· . .-ir.f1 •.:·~"."J':.:
Costs of hiring non-employee accountants, consultants, and lawyen to dispute
funding agency audits, reviews or monitoring reports shall require approval from
the funding program or ovenight agency. Such costs shall be considered direct
costs and are not allowable as indirect costs.. --·. · ··, _;-::, ··:.
25
35. Proposal costs. Costs of preparing proposals for ·potential Federal or state awards are
allowable. Proposal costs should nonnauy be treated · indircet costs and should be _
allocated to all activities of the governmental unit utiJ~ the cost allocation plan and .
indirect cost ra~e propo5:31. However, proposal c:osts inay be charged directly to Federal or
state awards with the pnor approval of the Federal orstate ·awatding agency.
-.. ', .. .. . ..... .... ... . ~ . . ' --.. , ..
36. Publication and printing costs. Publication costs, including the costs of printing (including
the processes of composition, plate-making, press work. and binding, and the end products
produced by such processes), distribution, promotion, rnai]itig,: and general handling are
allowable. :••,~t::it. 1~"-:' · ·
3 7. Rearrangements and alterations. Costs incurred for ordinary and normal rearrangement and
alteration of facilities are allowable.
Special arrangements and alterations costs incurred specifically for a Federal or state award
are allowable with the prior approval of the Federal or state ·awmding agency .
.;:,; :-'W"Jr.r;;!l :; ( .
38. Reconversion costs. Costs incurred in the restoration-orrebibilitation of the governmental
unit's facilities to approximately the same condition existilig mediately prior to
commencement of Federal or state awards, less costs related to normal wear and tear, are
allowable subject to prior approval of the awarding agency~/; .. ~.
· . " that 1.re-,.r..; ,~ : •
-··' :::. :r,\;,··...,:, __ ;_. 39. Rental costs. •;r. ~"(! SllOW .. · ..
. . . . ~: 'J· . . :~:\\'lt-.;
a. Subject to the limitations described in subsections b. througlfcf.:ofthis section, rental .
costs are allowable to the extent that the rates are ~l~"in light of such factors as:
rental costs of comparable property, if any; market conditioosin·the area; alternatives
available; and, the type, life expectanc:y, condition, and ~~€f§f.the property leased.
Rationale for rental choices must be properly do~-·f' ·'.~ .
b. Rental costs under sale and leaseback arrangements are allo'.wable only up to the amount
that would be allowea had the governmental unit con--tb~~\VD the property.
):t· ·r:·
c. Rental costs under less-than-arms-length leases are ~~~~!..up to the ~ount ~t
would be allowed had the title to the property vest~ m tb.'f. .. ~~~ental unit. For this
purpose, less-than-arms-length leases include, but are n.~~J, those where: -
(I) One party to the lease is able to control or substantiall •. the actions of the
other · ;:. · · · 9±:k-· , . . Jf~,f';_~t{.
(2) Both parties are parts of the same governmental~~.~~.'·.··· .
(3) The governmental unit creates an authority or similar~entity)b~acquire and lease
facilities to the governmental unit and other parties:~~bJ:~§1.)ty _ :.~.:_ :. . .
. <-::,£.ii-:~_:Sf~t! ,;:!· ·, ..
26
d. Rental costs under leases which are rcq~ to be treated as capital leases under GAAP
are allowable only up to the amount that ~~d ~ allowed bad the governmental unit
~urchascd the property on the ~te _the 1~ ~ent was _executed. Thi~ amount would
· mclude expenses such as depreciation or use allo~ maintenance, and msurance. · The
provisions of Financial Accounting Standanh ~ statement 13 shall be used to .
determine whether a lease is a capital lease ... hrterest ~sts related to capital leases arc
allowable to the extent they meet the cntena:.in ~on 27.
40. Security deposits. Outlays for security deposits (e.g., rent, utilities, equipment rental) when
required to carry out an authorized program are allowable. These outlays will be shown as
"assets" until returned to the grantee. kly fund returned to guarantee or subrccipient shall be
treated as program income in the year recovered.
41. Taxes ..
a. Taxes that a government unit is legally required to pay are allowable, except for self-
assessed taxes that disproportionately affect Federal programs or changes in tax policies
that disproportionately affect Federal programs .. lbis provision becomes effective for
taxes paid during the governmental unit's first fiscal _yeartbat begins on or after January
1, 1998, and applies thereafter. ,~; ·,·:~i t;~i·:· ·. ·
b . Gasoline taxes, motor vehicle taxes, and other taxes ~t are in effect user fees for
benefits provided to the state or Federal Government are allowable.
c . This provision does not restrict the authority of Federal agencies to ,identify taxes where
Federal participation is inappropriate. Where the ldentification of the amount of
unallowable taxes would require an inordinate amount of effort, the cognizant agency
may accept a reasonable approximation thereof.
42. Training. The costs of training provided for employee ·~~lo~ent is allowable.
· :· ··lQl!!Li.2;._(t . , .
a. In reviewing training cost, the following factors should}:,.e considered to ensure cost
reasonableness and consistency: _ : .~·~ ~i ·i ~<:::·.·:. .
1. The training or education costs are consistently _incur:red ,pursuant to an
established training and education program, and; '1:,-· z-.d r · : , .. :· ..
:·. :: ! :b.:.,.~r.,.·.~ ... r ~~ f
2. The course or degree pursued, if applicable, is re~t~ to .the field in which the
employee is now working or may reasonably be exp~~~-~o.work. ··.
Costs of preparation and maintenance of an instruction program including but not
limited to on-the-job, classroom, and apprenticeship training, designed for
vocational effectiveness of employees, are allowable •. These ~osts _may include
training materials, text books, salaries or wages of trainees. -They may also include
training materials, salaries of the director of the training and staff when the
27
training program is conducted by the organization; or tuition and fees when the
training is an institution not operated by the organization.
Costs of part-time education at an undergraduate or postgraduate college level,
including that provided at the organization's own facilities, are allowable only when
the course or degree punned is relative to the field in which the employee is n·ow
working or may reasonably be expected to work. These costa are limited to the
following: ·
1. Training materials;
2. Textbooks;
3. Fees ·charged by the educational institution such as college, junior college, or
universities;
4. Tuition charged by the educational institution, or in lieu of tuition, instructors'
salaries and the related share of indirect costs of the educational institution to
the extent that the sum thereof is not in excess of the tuition which would have
been paid to the participating educational institution; and
5. Salaries and related costs of instructors who are employees of the organization;
6. When obtaining training other than from an educational institution, recipients
shall use state procurement rules stated in the Uniform Grant Management
Standards, Grant Administration Section, Subpart C (36) Procurement.
43. Travel costs.
a.· General. Travel costs are allowable for expenses for transportation, lodging, subsistence,
and related items incurred by employees travelini on official business. Funds expended
for travel should be used judiciously, and only for the public purpose targeted by
the grant or contract. Such costs may be charged on an actual cost basis, on a per diem
mileage basis in lieu of actual costs incurred, or on a combination of the two, provided
the method used is applied to an entire trip, and results in charges consistent with those
normally allowed in like circumstances in non-federally-_and non-state-sponsored
activities unless state law prescn"bes otherwise. Notwithstanding the provisions of
section 24, travel costs of officials covered by that section, when specifically related to
Federal or state awards, are allowable with the prior approval of a grantor agency.
b. Lodging and subsistence. Costs incurred by employees and officers for travel, including
costs of lodging, other subsistence, and incidental expenses, shall be considered
reasonable and allowable only to the extent such costs do not exceed charges normally
allowed by the governmental unit in its regular operations as a result of the e;overnmental
unit's policy. (That is, the grantee's policies) •. In the absence of a written
28
governmental unit policy regarding travel costs, the rates and amounts established under
subchapter 1 of Chapter 57 of Title 5, United States Code ''Travel and Subsistence
Expenses; Mileage Allowances," or by the Administrator of General Services, or the
· President ( or his designee) pursuant to any provisions of such subchapter or as otherwise
directed by state law shall be used as guidance for travel under Federal and $le awards
(41 U.S.C. 420, "Travel Expenses of Government Contractors").
The governmental unit travel policy shall observe restriction similar to the State of
Texas Travel Allowance Guide.
State travel regulations set limitations on reimbursements that should be followed
when reimbursement is made from state grant or contract funds;
a. Lodging and meals within the State of Texas. Reimbursement is to be based on
actual expenses but may not exceed the State of Texas Travel Allowance Guide.
b. Lodging and meal when traveling outside of the State of Texas. Reimbursement
is to be based on actual expenses but may not exceed the maximum established
in the federal General Services Administration travel regulations.
c. Mileage rates are also established by the State of Tens Travel Allowance Guide
and the federal General Service Administration travel regulations.
This same travel provision should be used for board members.
. .
In the evebt the director or the recipient agency determines on a case-by-case basis
that unique circumstances cause lodging or meal expenses to exceed the state or
federal maximums, the director may authorize an employee to be reimbursed an
amount above the stated limit, but not to exceed actual, documented costs.
c. Commercial air travel. Airfare costs in excess of the customary standard ( coach or
equivalent) airfare, are unallowable except when such accommodations would: require_
circuitous routing, require travel during unreasonable hours, excessively prolong travel,
greatly increase the duration of the flight, result in increased cost that would offset .
transportation savings, or offer accommodations not reasonably adequate for the medical
needs of the traveler. Where a governmental unit can reasonably demonstrate to the
awarding agency either the nonavailability of customary standard airfare or Federal or
state government contract airfare for individual trips or, on an overall basis, that it is the
governmental unit's practice to make routine use of such airfare, specific determinations
of nonavailability will generally not be questioned by the Federal Government or state
awarding agency, unless a pattern of avoidance is detected. However, in order for airfare
costs in excess of the customary standard commercial airfare to be allowable, e.g., use of
first-class airfare, the governmental unit must justify and document on a case-by-case
basis the applicable condition(s) set forth above. · ·
29
d. Air travel by other than commercial carrier. Cost of travel by governmental unit-owned,
leased, or chartered aircraft, as used in this section, includes the cost of lease, charter,
operation (including personnel costs), maintenance, depreciation, interest, insurance, and .
other related costs. Costs of travel via governmental unit-owned, -leas~ or -chartered
aircraft are unallowable to the extent they exceed the cost of allowable commercial air
travel, as provided for in subsection c. ·
e. Board Member Activities and Travel Cost.
Board member activities and travel costs are allowable charges to the indirect cost
pool if the travel costs are incurred in compliance with the regulation above.
In addition to the travel costs regulation, the following criteria should be applied in
determining if the cost is reasonable and necessary:
1. The activity or event provides specific benefits, and is necessary for the efficient
. administration of the programs. The necessary criteria will consider whether
the activity is required for the board member to fulfill his or her responsibilities.
This must be documented on the supporting documentation, and;
2. The cost of attending the activity or event is reasonable.
44. Under recovery of costs under Federal or state agreements. Any excess costs over the
Federal or state contribution under one award agreement are unallowable under other award
agreements.
45. Other Unallowable Costs
a. Goods and services for personal use and housing and living expenses of a recipient's
officers are unallowable.
b. Organization-furnished automobiles
1. Costs associated with the business use of organization-furnished automobiles are ·
allowable costs if the recipients comply with the following requirements:
a. The cost of the automobile is reasonable. A reasonably priced automobile
will be considered one that costs Jess that the Internal Revenue Service
definition of luxury vehicles.· In the determination of reasonableness, the
General Service Commission rules regarding purchase or lease of
automobiles should also be considered.
b. Business use is properly documented by mileage logs. Mileage log .
documentation shall show the portion of~e cost attributable to business and
personal use. These logs shall be used to _detei:mme the allowable portion of
. ·. -. ~-. ·: ~-.: -~ .
; .. ··:. _:_:_
._ ~ . -. ·:: _,: ~-
30 , .::·_:, .:
the automobile total cost.
c. Costs associated with the personal use of organiza~on-furnished automobiles
are not allowed.
c. Cost associated with the personal use of organization-funaished automobiles are not
allowed.
d. Relocation Costs
1. The following recruiting costs are allowable:
a. Reimbunement for fees a~d other costs associated with acquiring a new
home;
b. Reimbursement for loss on the sale of a fomer home;
c. Reimbunement for continuing mortgage principal and interest payments on
a house being sold; and
d. Reimbunement for income taxes paid by an employee related to reimbursed
relocation costs;
: ~.,J. -
.. ::..:::··;·:.;: . ·_ -~~~,1;.;;: .
• , :.;>'":,.
''~t"·· . . ;<.;;~~~{:: ..