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Contract 35654
CITY SECRETARY CONTRACT NO.. Contract No. 582-8-72685 TCEQ FEDERALLY FUNDED GRANT AGREEMENT THIS AGREEMENT is by and between the Texas Commission on Environmental Quality (hereinafter called TCEQ) and the 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 I.I. 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 9-1 ,2007 or date of last contract signature, whichever is later, and shall terminate on full performance which is due on August 31, 2009. 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 US Environmental Agency (hereinafter referred to as the "EPA") fails to appropriate or the and/or to 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 , � FoF� TEX. f N providing and documenting matching funds totaling $101,922.00. The amount mentioned above to be reimbursed by TCEQ, will be divided up for a two 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, 2008 through August 31, 2009. 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. 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 §§ 3 82.03 3 AND 3 82.111-3 82.115. 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 the 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. ARTICLE 6. PERFORMING PARTY'S REPRESENTATIONS In order to induce TCEQ to enter into this Agreement PERFORMING PARTY makes the following Contract Number 582-8-72685 2 representations: 6.1. PERFORMING PARTY has examined and carefully 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 C. Contract Costs Budget 7.5. Other Documents. Contract Number 582-8-72685 3 EXHIBITS A. Exhibit A-1: Funding Application Package B. Exhibit A-2: EPA QA/R-2 (March 2001) C. Exhibit A-3: EPA QA/R-5 (March 2001) D. Exhibit A-4: Quarterly Report Checklist FORMS E. Form B-1: HUB/MWBE Progress Assessment Report F. Form B-2: TCEQ STATE PURCHASE VOUCHER G. Form B-3: TCEQ Invoice H. Form B-4: Financial Status Report (Final) I. Form B-5: Certification Regarding Debarment, Suspension, and Other Responsibility Matters - Lower Tier J. Form B-6 Summary of Subcontracting Opportunities K. Form B-7 Allowable Expenditure Guidelines L. ' Form B-8 Financial Status Report Form (Form B-8) Submitted quarterly with invoices. 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 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 any 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 any attempted transfer without such consent is void. Contract Number 582-8-72685 4 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 therefor. 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 582-8-72685 5 ADDRESSES FOR NOTICE: TCEQ: PERFORMING PARTY: Ed Bridgman, MC-165 T.C. Michael (Printed Name) (Contract Manager) (Printed Name) (Project Manager) Monitoring Operations Division Air Quality Program Texas Commission on Environmental Quality City of Fort Worth P. O. Box 13087 4200 S. Freeway#552 Austin, Texas 78711-3087 Fort Worth, TX 76115-1406 (Address) (Address) IN WITNESS WHEREOF, TCEQ and PERFORMING PARTY have signed three (3) originals of this Agreement. One counterpart will be delivered to PERFORMING PARTY and two counterparts will be delivered to TCEQ. This Agreement will be effective on September 1, 2007, or upon execution by both parties, whichever is later. Texas Commission on Environmental City of Fort Worth Quality Signature: Signature: Printed NMQ ohn Sadlier Printed Name: Title: Deputy Director, Office of Compliance and Enforcement Title: V Date: 7 /� 5 l U Date: / Contract Number 582-8-72685 6 State Contract Number 582-8-72685 APPROVED AS TO FORM & LEGALITY: By Title: Assistant City Attorney ATTEST: q By 'L Printed Name: Marty Hendrix Title: City Secretary r� Date: ul� , M & C: �. `02fb, TEX. 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 or 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. 1.4. 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. 1.6. 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. Assessment - The evaluation process used to measure the performance or effectiveness of a system and its elements, including audit, performance evaluation, management systems review, peer review, inspection, or surveillance. Contract Number 582-8-72685 7 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 Agreement 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 moneys payable by TCEQ to PERFORMING PARTY 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 matching - 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. 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. Contract Number 582-8-72685 I, 011 11 WORTH, TEN. 1.20. 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. 1.21. Equipment - means tangible, nonexpendable, personal property having a useful life of more than one year and an acquisition cost of$5,000 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. "Equipment" definition pertaining to acquisition cost of$5,000 or more per unit as modified to subject state funds to the state definition or minimum cost for capitalized equipment. A state awarding agency will advise a PERFORMING PARTY of the rules for capitalizing equipment purchased from state funds and ultimate disposition thereof. 1.22. 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). 1.23. Final Completion - the Work is completed in the judgment of TCEQ. 1.24. General Conditions - refers to the "General Conditions of the TCEQ Federally Funded Grant Agreement." 1.25. Government- means a State agency or local government. 1.26. 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. 1.27. 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. 1.28. HUB - 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 socially disadvantaged person must completely own, operate and control the Contract Number 582-8-72685 9 business. Economically disadvantaged persons include members of certain groups including Black Americans, Hispanic Americans, American Women, Asian Pacific Americans and Native Americans. 1.29. 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. 1.30. 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. 1.31. 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. 1.32. ISO/IEC- The International Organization for Standardization and the International Electrotechnical Commission. 1.33. Laws and Regulations; 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. 1.34. Liens - liens, charges, security interests or encumbrances upon real property or personal property. 1.35. Local government - means a county, municipality, city, town, township, local public authority (including public and Indian housing agencies under the United States Housing Act of 1937, 42 U.S.C. §1437 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. 1.36. Major Change - any change in the work that meets the requirements of ARTICLE 6, Section 6.2 of the General Conditions of this Agreement 1.37. 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 Contract Number 582-8-72685 10 are obtained. 1.38. MBE/WBE (or MWBE) - Minority Business Enterprise/Women Business Enterprise within The meaning of the provisions relating to small and minority firms and women's business enterprise and labor surplus area firms in applicable federal regulations (40 CFR 31.36(e)). 1.39. 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. 1.40. 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. 1.41. 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 with sign and deliver the Agreement. 1.42. 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. 1.43. 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. 1.44. 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) who 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 conducted to ensure that activities 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 analysis or measures of success are unavailable or undefined, such as in research and development. Contract Number 582-8-72685 11 1.45. 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. 1.46. Performance Evaluation - A type of audit in which 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. 1.47. Prior approval- means documentation evidencing consent prior to incurring specific cost. 1.48. 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. 1.49. 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. 1.50. Project Representative - the Project Representative of the TCEQ and the PERFORMING PARTY are designated in the Supplementary Conditions. 1.51 Quality Assurance — 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 1.52. 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. 1.53. 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 fulfill requirements for quality. 1.54. 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. 1.55. 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), Contract Number 582-8-72685 12 and services and (2)providing the framework for planning, implementing, and assessing work performed by the organization and for carrying out required quality assurance and quality control. 1.56. 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. 1.57. Real property - means land, including land improvements, structures and appurtenances thereto, excluding movable machinery and equipment. 1.58. 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. 1.59. Standards- refers to the Uniform Grant Management Standards. 1.60. State - means the State of Texas. 1.61. 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. 1.62. Subgrant- 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 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." 1.63. 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. 1.64. Supplementary Conditions- synonymous with"Program Conditions,"the part of the Contract Documents which amends or supplements these General Conditions. 1.65. Supplies- means all tangible personal property other than"equipment" as defined in these General Conditions. 1.66. 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. Contract Number 582-8-72685 13 1.67. Suspension - 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. 1.68. 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. 1.69. 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. 1.70. Terms of a grant or subgrant- mean all requirements of the grant or subgrant, whether contained in statutes, regulations, or the Contract Documents. 1.71. 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. 1.72. TCEQ-the Texas Commission on Environmental Quality. 1.73. 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 the Uniform Grant Conditions and Management Act, Tex. Govt. Code Chapter 783. 1.74 Unliquidated obligations- for reports prepared on a cash basis mean the amount of obligations incurred by the PERFORMING PARTY that has not been paid. Reports prepared on an accrued expenditure basis represent the amount of obligations incurred by the PERFORMING PARTY for which an outlay has not been recorded. 1.75. 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. Contract Number 582-8-72685 14 1.76. 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, materials or equipment as required by the Contract Documents. 1.77. Work Plan - the Work Plan submitted by the Applicant as 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. 1.78. 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 to run 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 PARTY 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 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 of TCEQ 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 Contract Number 582-8-72685 15 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 PARTY shall be solely responsible for the means, methods, techniques, sequences and procedures of the Work. PERFORMING PARTY shall be responsible to see 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. 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 11375, and as supplemented in Department of Labor Regulations (41 CFR Part 60). The PERFORMING PARTY assures that no person will, on the grounds of race, 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 Contract Number 582-8-72685 16 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, light, heat, telephone, water, sanitary facilities, temporary facilities and all other facilities and incidentals 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, in the PERFORMING PARTY. 4.11. The PERFORMING PARTY agrees to conduct physical 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 with 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 State of Texas General Services Commission shall be used as a guide for establishing such a system. 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, who holds title, the acquisition date, and 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 Five Thousand Dollars ($5,000) or more, shall be conducted no less frequently than once every two 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 Contract Number 582-8-72685 17 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 of less than $5,000 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 awarding agency upon request. Items of equipment with a current per-unit market value of$5,000 or more may be retained or sold and the awarding 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 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 years of the initiation date of this contract 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 has a right to require the transfer of any equipment having a fair market, per unit value of more than five thousand dollars ($5,000)to the TCEQ or a third party clamed by the TCEQ. 4.21. The PERFORMING PARTY shall not grant or allow to a third party a security interest in any original or replacement equipment purchased or constructed with funds made available to PERFORMING PARTY under this Contract. 4.22. The PERFORMING PARTY agrees that, in the event any funds provided under this Contract are in turn awarded to any subcontractor for the purchase or acquisition of any equipment Contract Number 582-8-72685 i c, . 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 expressly required by the Contract Documents, PERFORMING PARTY may furnish or utilize a substitute means, method, technique, sequence or procedure acceptable to TCEQ. PERFORMING PARTY shall submit sufficient information to allow TCEQ, in TCEQ's sole discretion, to determine that the substitute proposed is equivalent to that expressly called for by the Contract Documents. Concerning Subcontractors, Suppliers and Others 4.25. All contractual expenditures using funds provided under this Agreement shall meet all procurement laws and regulations applicable to the PERFORMING PARTY and subcontractor and the Uniform Grant and Contract Management Act and the Uniform Grant Management Standards. Note that competitive bidding will generally be required for contracts other than interlocal and interagency contracts, which are under TEx. Gov. CODE, Chapter 791 et seq. Note also that the Common Rule of OMB 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 Representative prior to execution of the subagreement. The TCEQ may, within twenty-one (21) days of receipt of the proposed subagreement, provide written notice (fax acceptable) to the PERFORMING PARTY 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 any 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: Contract Number 582-8-72685 19 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 recording 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 maintain detailed records, a quality system consistent with the TCEQ Quality Management Plan or 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 PERFORMING PARTY's, subcontractors' and subgrantees' laboratories must have a quality system consistent with the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC) Guide 25 General requirements for the competence of calibration and testing laboratories, or ISO/IEC Standard 17025 General requirements for the competence of testing and calibration laboratories, or the National Environmental Laboratory Accreditation (NELAC) current version of its constitution, bylaws, and standards. 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 and facilities for such assessments. 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 services 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 of UGMS. Contract Number 582-8-72685 20 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 a procurement are 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 2259 Texas Government Code and Part III Subpart C, Sec._.37, Subsection (b) of UGMS. Historically Underutilized Businesses 4.33. PERFORMING PARTY agrees that qualified Historically Underutilized Businesses (HUBS) and minority business enterprises / women's business enterprises (MBE/WBEs) or (MWBEs) 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. 4.34. PERFORMING PARTY will submit a completed HUB/MWBE PROGRESS ASSESSMENT REPORT (Form B-1) with each reimbursement request submitted. At a minimum this report shall include the name of the HUB/MWBE, a description of the work, services or materials provided, the amount paid to the HUB/MWBE, and the name and telephone number of a contact person within the HUB/MWBE. 4.35. 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: 4.35.1. Place qualified small and minority business enterprises and women's business enterprises (MWBEs) on solicitation lists for subcontractors and vendors; 4.35.2. Assure that at least three (3) HUB/MWBEs are solicited whenever they are potential sources for subcontractor-performed work or vendor-provided goods and/or services; 4.35.3. Each solicitation shall include a copy of the specifications, adequate information about the plans, scope of work, 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; 4.35.4. Records of solicitations for subcontractor and/or vendor services, including the responses received from potential HUB/MWBE subcontractors and vendors, shall be maintained and reported to TCEQ using the forms provided in Form B-6; 4.35.5. Submit explanatory information in cases where bids were not solicited prior to obtaining the services of subcontractors or vendors, or where a HUB/MWBE was low bidder but the subcontract or procurement contract was awarded to a non HUB/MWBE; Contract Number 582-8-72685 21 4.35.6 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; 4.35.7. Establish delivery schedules, where requirements permit, which encourage participation by HUB/MWBEs; 4.35.8. Utilize the Texas Building and Procurement Commission (TBPC) Centralized Master Bidders List (CMBL) and HUB Directory (<http://www.tbpc.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.doe.gov>) when searching for HUB/MWBE subcontractors and/or vendors; and 4.35.9. Require its subcontractors to take the actions listed above in 4.35 of this Article 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 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. 4.37.2. Disclosure of Intellectual Property Produced during the Work. PERFORMING PARTY shall promptly notify TCEQ and EPA of all Intellectual Property which PERFORMING PARTY or PERFORMING PARTY'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 PARTY 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 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 Contract Number 582-8-72685 22 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. 4,37.5. 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. TCEQ shall own all Intellectual Property Rights to such modifications. PERFORMING PARTY 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, Contract Number 582-8-72685 23 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 form 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 4.38. PERFORMING PARTY expressly acknowledges that state funds may not be expended in connection with the purchase of an automated information system unless the system meets certain statutory requirements under section 2157.005 of the Government Code, relating to accessibility by persons with visual impairments. Accordingly, the PERFORMING PARTY represents and warrants to TCEQ that the technology provided to TCEQ for purchase is capable, either by virtue of features included within the technology or because it is readily adaptable by use with other technology, of (1) providing equivalent access for effective use by both visual and nonvisual means; (2) presenting information, including prompts used for interactive communications, in formats intended for nonvisual use; and (3) being integrated into networks for obtaining, retrieving, and disseminating information used by individuals who are not blind or visually impaired. For purposes of this paragraph, the phrase "equivalent access" means a substantially similar ability to communicate with or make use of the technology,,either directly by features incorporated within the technology or by other reasonable means such as assistive devices or services which would constitute reasonable accommodations under the Americans with Disabilities Act or similar state or federal laws. Examples of methods by which equivalent access may be provided include, but are not limited to, keyboard alternatives to mouse commands and other means of navigating graphical displays, and customizable display appearance. 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 Contract Number 582-8-72685 24 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 PARTY 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 PARTY'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 4.45. The provisions of Uniform Grant and Contract Management Act, TEx. Gov. 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 comlection with the work required by this Agreement. Contract Number 582-8-72685 25 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. The PERFORMING PARTY, subcontractors and subgrantees shall maintain a quality system consistent with the TCEQ Quality Management Plan or 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 PERFORMING PARTY's, subcontractors' and subgrantees' laboratories must have a quality system consistent with the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC) Guide 25 General requirements for the competence of calibration and testing laboratories, or ISOAEC Standard 17025 General requirements.for the competence of testing and calibration laboratories, or the National Environmental Laboratory Accreditation (NELAC) current version of its constitution, bylaws, and standards. 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 and facilities for such assessments. 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 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 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. Contract Number 582-8-72685 26 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: 4.53.1. 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 data bases 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 PARTY 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. 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 is, 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 PARTY shall not use funds provided unriP�__r Contract Number 582-8-72685 ;:?';1. hi'� 27 ` . this Agreement to support political activity either directly or indirectly. This preclusion includes fluids 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 PARTY 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 of its 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. 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 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 law, 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, Contract Number 582-8-72685 28 Independent FinancialAudit 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 and 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 of UGMS shall apply to all non- state government entities expending the funds of this grant, whether they are recipients, receiving the fiends 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 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 of receipt 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 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 PARTY, 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. Contract Number 582-8-72685 29 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 Debarment, 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. In accordance with Executive Order 12549 and 40 CFR Part 32,the PERFORMING PARTY shall not subcontract any part of the services under this Contract to an entity that has been debarred. The PERFORMING PARTY shall require each applicable subcontractor, as a condition of its subcontract, to sign a Lower Tier Certification Regarding Debarment, Suspension, and Other Responsibility Matters (Form B-5, as set forth in Appendix B to 40 CFR Part 32 - Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion- Lower Tier Covered Transactions. ARTICLE 5. TCEQ'S RESPONSIBILITIES 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 tennination 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 Contract Number 592-8-72695 30 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 PARTY'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 of receipt 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 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 copy 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. Contract Number 582-8-72685 31 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. 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 and approve or disapprove the request in writing. If such changes requires federal prior approval, TCEQ shall obtain that approval before approving the request. Inclement Weather 6.8. 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 PARTY shall make best attempts to recoup time lost due to inclement weather. The PERFORMING PARTY shall notify the TCEQ in writing (fax 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 this Contract. The TCEQ reserves the right to reject, in good faith, within 30 days of receipt of the notification of the deadline extension, the PERFORMING PARTY'S claim that inclement weather precluded work towards the completion of a deliverable. Waiver 6.9. Unless authorized in accordance with these Contract Documents (relating to Changes), or in writing by the TCEQ, no waiver 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. Contract Number 582-8-72685 32 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 regulations and law. 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. Payments by TCEQ 7.2 PERFORMING PARTY must request payment by submitting one 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-8) 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. Contract Number 582-8-7268533 SE b 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 percent (10%) 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 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 generally select contractors by evaluation and comparison of price, quality of goods or services and past performance. Comparison of Performing Parry's Costs 7.8. In accordance with Section 2259.203 Texas Government Code, the TCEQ is required to perform a comparison of costs reimbursed under this Agreement. PERFORMING PARTY will provide a report to verify that its costs of performance are reasonably comparable to prices generally charged for similar goods or services. Contract Number 582-8-72685 34 Indirect Cost Rate 7.9. The indirect cost rate for this Agreement is that rate determined by either: 1) the Federal Cognizant Agency or; 2) the State Coordinating Agency or; 3) the 10% rate described in UGMS at Part II Attachment E, Paragraph E2d. The rate in effect on the effective date of this Agreement must remain in effect for the entire period of this 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 or more grants are 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 30 days after the end of a quarter, the PERFORMING PARTY shall submit one copy of a properly completed STATE OF TEXAS PURCHASE VOUCHER (Form B-2) (Comptroller of Public Accounts Form 73-170), an itemized invoice provided by the TCEQ (Form B-3), a Financial Status Report (FSR) (Form B-8) 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 Invoice (Form 13- 3) has been revised so that you can include the information that is needed for this contract. The PERFORMING PARTY shall complete a quarterly HUB/MWBE 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: Attn: Mr, Ed Bridgman 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 for services performed as identified above in Section A (Statement of Work) and Section B (Deliverables) and will notify the PERFORMING PARTY 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. Contract Number 582-8-72685 35 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 PARTY 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 HAVE 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 PARTY satisfactorily completes, revises, or corrects such services or reports, whether or not the deliverable is rejected within thirty days. Closeout 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 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. Final Financial Status Report (Form B-4) 7.19.3. Final request for payment. (Including Forms B-1, B-2, B-3, B-8)) 7.19.4. Invention disclosure (if applicable). 7.19.5. State-owned property report (if applicable). Contract Number 582-8-72685 36 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. 7.21. Within 90 days of receipt of the reports set forth above, the TCEQ will make upward or downward adjustments to the allowable costs. The TCEQ agency 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 of later refunds, corrections, or other transactions; 7.21.3. Records retention as required herein; 7.21.4. 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 other 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: 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, Contract Number 582-8-72685 37 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 is executed. PERFORMING PARTY reserves the right to identify claims to be excluded thereby. 7.26. The PERFORMING PARTY 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 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 less 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 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 PARTY shall: Contract Number 582-8-72685 38 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 PARTY 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 PARTY 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 force 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 Majeure 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 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 Contract Number 582-8-72685 39 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 of limitations 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 the front cover or title page: PREPARED IN COOPERATION WITH THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITYAND U.S. ENVIRONMENTAL PROTECTIONAGENCY The preparation of this report was financed through grants from the U.S. Environmental Protection Agency through the Texas Commission on Environmental Quality. Contract Number 582-8-72685 40 ARTICLE 10. INSURANCE, LIABILITY AND INDEMNIFICATION 10.1 To the extent permitted by law, the PERFORMING 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 PERFORMING PARTY and the TCEQ, and its employees and officers against claims arising from the conduct of such activities. 10.2 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 PARTY'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. ARTICLE 11. STANDARDS FOR PERFORMING PARTY'S PERFORMANCE 11.1 In accordance with Chapter 2259 Texas Government Code, the TCEQ is required to monitor PERFORMING PARTY's performance under this contract. Therefore, PERFORMING PARTY agrees that the following are appropriate standards for PERFORMING PARTY's performance during the contract: 11.1.1. Timeliness of Work. Standard: Work is provided on schedule. 11.1.2. Quality of Work. Standard: PERFORMING PARTY's Work conforms to the requirements of the contract and is technically accurate. 11.1.3. Subcontract Activities. Standard: PERFORMING PARTY's subcontract and 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. Contract Number 582-8-72685 41 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 2259 Texas Government Code, TCEQ will monitor and evaluate PERFORMING PARTY'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 30 days of receipt of each of the FY-2008 and FY-2009 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 End-of-Year Assessment 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. 11.3.2. Within 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 2259 Texas Government Code,the following Schedule of 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. 1 1.5.1. Reject substandard performance and request corrections without charge to the TCEQ. 11.5.2. Issue notice of substandard performance or other non-conforming actor omission. Contract Number 582-8-72685 42 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 maybe 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 of contract funds, return of all unexpended funds, and repayment of expended funds. Sanctions for Substandard Performance 11.6. If the TCEQ evaluation finds PERFORMING PARTY'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 PARTY'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.S. 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 thereunder, 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 provisions 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. 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 582-8-72685 43 FEDERAL TERMS AND 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 of TCEQ's federal grants and 40 CFR Parts 30 through 35 are incorporated herein by reference (TCEQ 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 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. 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 for internal use within the TCEQ, shall carry the following notation 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 firom 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 federal 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 §31.20. 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. Contract Number 582-8-72685 44 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. MINORITY BUSINESS ENTERPRISES / WOMEN'S BUSINESS ENTERPRISES (MWBEs) 1. PERFORMING PARTY shall take steps to encourage participation by minority business enterprises and women's business enterprises (MWBES) in the performance of this Contract. 2. If the General Conditions of this Contract do not contain a requirement that PERFORMING PARTY submit information regarding its subcontracts with Historically Underutilized Businesses (HUBS) as defined by Texas law, then PERFORMING PARTY shall comply with the MBE/WBE requirements imposed on TCEQ in the federal grant or grants funding this Contract, and submit information regarding its subcontracts with MBE/WBEs on forms provided by the TCEQ. 3. PERFORMING PARTY agrees that qualified MWBEs 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 MWBE, a description of the work, services or materials provided, the amount paid to the MWBE, and the name and telephone number of a contact person within the MWBE. 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 MWBEs on solicitation lists for subcontractors and vendors; 5.2. Assure that at least three (3) MWBEs 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; Contract Number 582-8-72685 45 5.4. Records of solicitations for subcontractor and/or vendor services, including the responses received from potential MWBE 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 MWBE was low bidder but the subcontract or procurement contract was awarded to a non MWBE; 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 MWBEs; 5.8. Utilize the Texas Building and Procurement (TBPC) Centralized Master Bidders List (CMBL) and Historically Underutilized Business (HUB) Directory (<http://www.tbpc.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 MWBE subcontractors and/or vendors; and 5.9. Require its subcontractors to take the actions listed in 5.1 - 5.8 of this Article in all of its subcontracts that contemplate the letting of lower-tier subcontracts. ARTICLE 9. PROHIBITION USE OF FEDERAL FUNDS FOR LOBBYING AND LITIGATION Contractor agrees that none of the fiends 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. Contract Number 582-8-72685 2 SCION 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, carbon 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; OMB 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 within 30 days of receipt. 2.1. Funding Application Package Within 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-2008 and 2009 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. Contract Number 582-8-72685 47 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 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. 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 PARTY may move funds between budget categories up to a maximum of 10% of the total contract amount. Any changes beyond 10%may be made only with the consent of the TCEQ. 2.2 Requests for Payment On a quarterly basis, the PERFORMING PARTY 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 30 days of request,the TCEQ will provide comments or approve 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 582-8-72685 48 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 shall submit a report to the TCEQ of any unresolved shortages and unprogrammed losses exceeding $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 TCEQ. 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) (Form B-4) 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 activities of the PERFORMING PARTY and its progress in meeting contract requirements. The report will include quality 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 of this Agreement. The Quality Assurance Assessment will be conducted as an on-site evaluation as deemed necessary by the lead TCEQ Quality Assurance Specialist. An End-of-Year Questiomlaire will be used and conducted as follows: 2.7.1 FY2007 End-of-Year Questionnaire (covering 9/1/06 through 8/31/07) and FY2008 End-of-Year Questionnaire (covering 9/1/07 through 8/31/08) If the TCEQ identifies deficiencies in the ambient air monitoring program upon its FY-07 End-of Year Questionnaire or on-site evaluation required by previous agreement, or upon its FY08 Quality Assurance Audit, the PERFORMING PARTY shall,within 90 days after receipt of TCEQ comments or as recommended by the TCEQ, correct any similar deficiencies in the Work performed under this contract Contract Number 582-8-72685 49 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. 2.7.2 FY-2007 Quality Assurance Audit (covering 9/l/06 through 8/31/2007) FY-2008 Quality Assurance Audit (covering 9/l/07 through 8/31/2008) 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 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 will 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 30 days of receipt of each of the FY-2007 and FY-2008 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 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. Contract Number 582-8-72685 50 3. Quality Assurance Plans 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 (Fixed Prices), 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/R5; EPA QA G4; EPA QA/G- 6; EPA QA/G-7; EPA QA/G9. 3.1 Quality Management Plan 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. 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. 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/R5 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. 4. Monitoring Operations Program The PERFORMING PARTY shall provide support of the Texas Ambient Air Monitoring network objectives for FY-2008 and FY2009 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 582-8-72685 51 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 quarterly 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 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 75% 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 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, these data shall be submitted within 45 days after the end of the federal calendar quarter. All air quality data submittals shall be accompanied 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 582-8-72685 52 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 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 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 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 modified NAMS/SLAMS review and evaluation document to the EPA. A copy of the final document will be provided to the Performing Party. Contract Number 582-8-72685 53 4.7.4 On an ongoing basis, TCEQ will notify the PERFORMING PARTY of EPA- approved changes to NAMS/SLAMS network. Contract Number 582-8-72685 54 B. DELIVERABLES The PERFORMING PARTY shall provide the appropriate TCEQ office with the reports required below to provide the information on Tasks listed in the Scope of Work (Statement of Services) 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 days of receipt, 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 30 days of receipt of each of the FY-2007 and FY2008 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 End-of-Year Assessment report, as prescribed under sections 2.7.3 and 2.7.4 in Scope of Work (Statement of Services) of this Agreement. d. Within 30 days of receipt at PERFORMING PARTY's OFFICE a copy of the an ival independent single audit required by OMB 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 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 Scope of Work (Statement of Services) of this Agreement. Contract Number 582-8-72685 55 3. Monitoring Operations Program The requirements of this section shall survive the termination of the Agreement. a. The PERFORMING PARTY shall submit a Quarterly 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(Comptroller of Public Accounts Form 73- 170), the FSR (Form B-8) and an invoice, 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 Scope of Work (Statement of Services) of this Agreement. b. Within 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 Scope of Work (Statement of Services) of this Agreement. c. At least 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 Scope of Work (Statement of Services) of this Agreement. d. With quarterly 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 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 monitoring objectives, as prescribed under section 4.7 in Scope of Work (Statement of Services) of this Agreement. ContractNumber 582-8-72685 56 C. CONTRACT COSTS BUDGET ARTICLE 1. AUTHORIZED EXPENSE BUDGET 1.1. The authorized expenses, acquisitions, or expenditures under this Contract for each fiscal year are as follows: Budget Category Budget3 Personnel/Salary $52,822.00 Fringe Benefits 1 $9,132.00 Travel $2,500.00 Supplies $4,500.00 Equipment 0.00 Contractual 0.00 Other $21,205.00 Other- Third Party In-kind $ 0.00 Total Direct Costs $90,159.00 Authorized Indirect Costs2 $13,308.00 TCEQ Share $ 103,467.00 Grantee Cost Share $50,961.0 TOTAL COSTS $ 154,428.00 1. Fringe benefits shall be reimbursed at actual costs and shall not exceed 18% of total direct personnel/salary costs for the term of the Contract without written approval of the TCEQ Project Representative. 2. The indirect rate currently authorized (for the purpose of calculating amounts to be reimbursed by the TCEQ) shall not exceed 21.48 % of salaries &fringe benefits (distribution base) for the Term of the Contract, subject to the provisions outlined in the Indirect Cost Rate section of this Article. 3. The funds budgeted by category reflect the 100% of the sum of local match and TCEQ/federal amounts, as applicable. The local match rate is 33% and the TCEQ/Federal share represents 67%. 1.2. The PERFORMING PARTY is responsible, throughout the term of this 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 likely 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 of the following options relating to indirect rate, and identify that option clearly in the contract budget. If no option is selected, indirect rate will NOT be reimbursed. Option One: Contract Number 582-8-72685 57 1.3.1. The PERFORMING PARTY shall comply with OMB Circular A-87 and the Uniform Grant Management Standards (UGMS) relating to Indirect Cost Rates. 1.3.2. The PERFORMING PARTY shall maintain all indirect rate records for the Commission's inspection or submit records as per the agency's request. 1.3.3. 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 30 days after receipt of the auditor's report or nine months after the end of the audit period, Option Two (below)will apply. (i) In accordance with OMB 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 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 if no 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) In 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 this 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 of a final indirect rate which is based on an audit of the contract period, performed by a currently 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 result in a reduction in the deliverables set forth in the Scope of Work. If the final indirect rate is higher than the provisional rate, an adjustment may be made in a future year contract. Option Two: 1.3.4. Indirect Cost Rates. The PERFORMING PARTY shall comply with OMB 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. PERFORMING PARTY agrees to an indirect rate of 10% or less 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: 1.3.7. PERFORMING PARTY agrees to direct bill all costs and not require indirect cost for the contract. Contract Number 582-8-72685 58 1.4. When the PERFORMING PARTY applies for final payment, the PERFORMING PARTY will certify on a written form provided by TCEQ that the PERFORMING PARTY has not engaged in the lobbying of the Federal Government or in litigation against the United States unless authorized under existing law. ARTICLE 2. SUBMITTAL 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): ❑ monthly ❑ upon completion of deliverables specified herein(see ). ❑ upon completion of all Work X Other(specify) Quarterly- To be received within 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 PAR form. Contract Number 582-8-72685 59 THE FOLLOWING EXHIBITS AND FORMS ARE SEPARATE ATTACHMENTS A-1 (Funding Application Package) A-2 (EPA QA/R-2) - Requirements for Quality Management Plans A-3 (EPA QAIR-5) - Requirements for Quality Assurance Project Plans B-7 (Form B-7) - Allowable Expenditure Guidelines Contract Number 582-8-72685 60 Exhibit A-4 FY-2008 Section 105 CONTRACT QUARTERLY REPORT Check List for Reimbursement Request Approval QUARTER DATES TO Sections A - C are all part of this Checklist. A. Administrative Regulations A-l. Have you reviewed your procurement systems for compliance with 40 CFR 35 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/MWBE Progress Assessment Reports required in the General Conditions,Article 4.33 (Minority Business Enterprises/Women's Business Enterprises) attached to this reimbursement request? Yes. No. Please explain. A-5. What is the date of your most recent independent audit report (required by OMB A-133). Was this report submitted to the TCEQ Project Representative? Yes. Submitted on No. Please explain. Contract Number 582-8-72685 61 FY-2008 Section 105 CONTRACT QUARTERLY REPORT Check List for Reimbursement Request Approval A-6. Have you provided written response to the FY-2007 End-of-Year Review questionnaire by the deadline of September 30, 2007 or within 30 days after receipt of the questionnaire? Yes. It was submitted on No. Please explain. NA. Due in the 1 st quarter of the contract only. A-7. Within 30 days of receipt of your FY-2007 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/A. We had no deficiencies. N/A. Not due this quarter. A-8. Have the deficiencies been corrected? Yes. No. We are still within the 90-day window. No. There are deficiencies that cannot be corrected within the allotted time-frame. An explanation is attached. N/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, 2008? 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, 2008? Yes. The report was made on No. We have none to report. NA. Due in the 4th quarter of the contract only. Contract Number 582-8-72685 62 FY-2008 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 1,2008? 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 1,2008? _Yes. It was submitted on _No. Please explain. _NA. Not due this quarter. Contract Number 582-8-72685 64 FY-2008 Section 105 CONTRACT QUARTERLY REPORT Check List for Reimbursement Request Approval C. Monitoring Operations Prollram 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 25%of the NAMS/SLAMS/PAMS designated monitors during this reporting period? Yes. The report for this will be submitted within 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 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/A. We have no new SPMs. Contract Number 582-8-72685 65 FY-2008 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/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/A. C-10. Have you submitted a review and evaluation document, including recommendations for network changes,for the NAMS/SLAMS 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 33%) for Monitoring Operations Program activities is less than or equal to the cumulative fixed monthly fee? Yes. No. Contract Number 582-8-72685 66 FY-2008 Section 105 CONTRACT QUARTERLY REPORT Check List for Reimbursement Request Approval Sections A - C are all part of this Checklist. Authorized Signatory of Performing Party Date Printed Name of Signatory Contract Number 582-8-72685 67 . ,: of kg G N, M� FY-2009 Section 105 CONTRACT QUARTERLY REPORT Check List for Reimbursement Request Approval Exhibit A-4 QUARTER DATES TO 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 35 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/MWBE Progress Assessment Reports required in the General Conditions,Article 4.33 (Minority Business Enterprises/Women's Business Enterprises) attached to this reimbursement request? _Yes. No. Please explain. A-5. What is the date of your most recent independent audit report (required by OMB A-133). Was this report submitted to the TCEQ Project Representative? Yes. Submitted on No. Please explain. Contract Number 582-8-72685 68 FY-2009 Section 105 CONTRACT QUARTERLY REPORT Check List for Reimbursement Request Approval A-6. Have you provided written response to the FY-2008 End-of-Year Review questionnaire by the deadline of September 30, 2008 or within 30 days after receipt of the questionnaire? _Yes. It was submitted on No. Please explain. NA. Due in the 1 st quarter of the contract only. A-7. Within 30 days of receipt of your FY-2008 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/A. We had no deficiencies. —N/A. Not due this quarter. A-8. Have the deficiencies been corrected? Yes. —No. We are still within the 90-day window. _No. There are deficiencies that cannot be corrected within the allotted time-frame. An explanation is attached. N/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, 2009? 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, 2009? Yes. The report was made on No. We have none to report. _NA. Due in the 4th quarter of the contract only. Contract Number 582-8-72685 69 FY-2009 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, 2009? Yes. _No. Please explain. _NA. Due in the 4th quarter of the contract only. A-12. Have you submitted your funding application for FY-2009 within 30 days of receipt 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 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 67% of total funding for this program comes from state and federal sources. Please list the breakdown for your FY-2009 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 582-8-72685 70 FY-2009 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, 2009? 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, 2009? Yes. It was submitted on No. Please explain. NA. Not due this quarter. Coirtract Number 582-8-72685 71 FY-2009 Section 105 CONTRACT QUARTERLY REPORT Check List for Reimbursement Request Approval C. Monitorina 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 25% of the NAMS/SLAMS/PAMS designated monitors during this reporting period? Yes. The report for this will be submitted within 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 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/A. We have no new SPMs. Contract Number 582-8-72685 72 FY-2009 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/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/A. C-10. Have you submitted a review and evaluation document, including recommendations for network changes, for the NAMS/SLAMS Network Review by the deadline of May I? 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 33%) for Monitoring Operations Program activities is less than or equal to the cumulative fixed monthly fee? Yes. No. Contract Number 582-8-72685 73 FY-2009 Section 105 CONTRACT QUARTERLY REPORT Check List for Reimbursement Request Approval Sections A - C are all part of this Checklist. Authorized Signatory of Performing Party Date Printed Name of Signatory Contract Number 582-8-72685 74 Form B-1 HUB Progress Assessment Report (PAR) Part A. Identifying Information. 1.TCEQ Contract No.: 2.Your Invoice No.: 3.Work Order No. (if applicable) 4. For work completed between / / and 5. Prime Contractor("You"): 6. Prime Contractor Vendor ID#: 7. Contact: 8. Phone: ( 9. Is the Prime Contractor a Texas certified HUB and performing at least 25% of the total value of the contract? Yes_ No Part B. Invoice and HUB Subcontracting Information. 10. ❑ If you have used no subcontractors this period, check here. Value of this subcontractors Name and Address of Vendor ID participation for this HUB Subcontractor No. Type of HUB Provided": invoicing period ❑ MBE ❑ Services $ ❑WBE ❑ Commodities ❑MBE ❑ Services $ ❑WBE 1 ❑Commodities Total $ If subcontractor's services include both labor and materials, check"services"only. Note:If you need room to list more subcontractors, enter this information on a plain sheet of paper and attach it to this form. 11.Total of invoice: $ 12. Total of invoice from certified HUB subcontractors: $ 13. Percent of HUB expenditures for this invoice: % (line 11+ line 10)xl00 Part C. HUB Subcontracting Information 14.Total amount invoiced to date: $ 15.Total HUB expenditures for contract to date: $ 16. Percent of HUB expenditures for contract to date: % (line 15 _ line14)x100 17. HUB subcontracting goal for this contract: % Part D.Affirmation.The information provided on this form is complete and correct. Your representative must sign here: 18. Signature: 19. Date: Part E. Other Information. For TCEQ use only. (Project manager: Complete this box and sign.) Type of funding: ❑ State ❑ Federal ❑ Both Index: COBJ: Date In: Fund No. Check if prime contractor is one of the following: PCA Code(s) ❑ River Authority ❑ COG ❑ Local govt. ❑ Interlocal Signature: Contract Number 582-8-72685 75 Genera! Information The purpose of this form is to help the Texas Commission on Environmental Quality (TCEQ; "us") to track the value of business we do with Texas-certified "historically underutilized businesses" (HUBs) and federally designated "minority- or woman-owned business enterprises" (MWBEs). In this form,the acronym"HUB"refers to both of these classes of businesses. Do I Have to Complete This Form? If we have awarded you a contract to provide us with professional services, other services, or commodities and your contract contains a subcontracting plan, then you must complete this form each time you submit an invoice or set of invoices to us— even if no subcontracting occurred during the period covered by these invoices. If you are a HUB, you must perform at least 25 percent of the total value of the contract with your own or leased employees as defined by the Internal Revenue Service in order for the agency to receive 100 percent HUB credit for the entire contract. You may subcontract up to 75 percent of the contract with HUBs or non-HUB subcontractors, but you must report to us the value—both dollar amount and percentage—of your contract that was actually performed by you and your subcontractors during each invoicing period. Where Do I Turn This Form In? When you have completed this form, attach it to your invoices and submit it to our project manager for your contract. Where Can I Get More Answers? If you have any other questions, call the project manager named on your contract or our HUB Program Director (512/239- 1273). Definitions These brief definitions may help you complete this form. For terms where a full legal definition may be helpful,we have cited the rule or law that gives that definition.. Commodities—materials, supplies, or equipment. May include consumable articles(for example, office supplies) or durable items (for example, computers,furniture, or equipment). Other services—all services other than construction and professional services, including consulting services (Texas Government Code, Chapter 2254, Subchapter B). Prime contractor(or"prime")—any business, agency, or individual who provides commodities or services to us under a purchase order or other contract. Professional services—services of accountants, architects, engineers, land surveyors, optometrists, and physicians (Texas Government Code, Chapter 2254, Subchapter A). Services—(1)functions performed for us by an outside source—for example, equipment repair, consulting, hazardous waste disposal, or work by short-term temporary employees. (2) similar functions performed for the prime contractor by an outside source. Subcontractor—any business, agency, or individual (other than an employee)who provides commodities or services to the prime contractor, Total contract(item 14)—on this form, total value of your contract with us, including all monetary amendments, if any. Vendor ID No.the 11-digit taxpayer identification number assigned to this subcontractor by Comptroller of Public Accounts. The subcontractor should be able to provide you with this number. Contract Number 582-8-72685 76 Instructions 1.TCEQ Contract No.-Enter the contract number we have assigned to this contract.This number appears on the first page of the contract 2.Your Invoice No.-Enter your invoice number for each invoice you are submitting with this form. 3.Work Order No.-If applicable, enter your work order number for the site,phase,or program. 4. For work completed between-Enter the period of time in which the work covered by these invoices was carried out. 5.Prime Contractor-Enter the name of the contractor to which we awarded this contract. 6. Prime Contractor Vendor ID#-Enter the 13-digit vendor identification number the Comptroller of Public Accounts has assigned the prime contractor. 7. Contact-Enter the name of the person authorized to complete this form for the prime contractor.We will contact this person if we have any questions about the information you have provided on this form. 8. Phone-Enter the phone number at which we can reach the contact person named in Item 7. 9. This percentage is applicable only when the prime contractor is a HUB. 10.HUB Subcontractor Information-First column—Enter the complete name of each HUB subcontractor.Enter information about this HUB subcontractor in the remaining columns of this row. Second column—Enter the 13-digit vendor identification number the Comptroller of Public Accounts has assigned to this HUB subcontractor. Third column—You have three options: • If this subcontractor is a minority-owned business enterprise,check"MBE." • If this subcontractor is a woman-owned business enterprise,check"WBE." • If this subcontractor qualifies as both an MBE and a WBE,check both boxes. Fourth cohrmn—Indicate,by checking the appropriate box,whether the subcontractor provided services or commodities. (If both,check "services"only.) Fifth column—Enter the total of all invoices attached for this HUB subcontractor. 11.Total of invoice-Enter the total of all attached invoices 12.Total of invoice from certified HUB subcontractors-Enter the total amount of all attached invoices from HUBS. 13.Percent of HUB expenditures for this invoice-Use the instructions on the PAR form to calculate the percentage of this invoice that HUB subcontractors have completed. 14.Total amount invoiced to date-Enter the total of all invoices you have submitted to us to date for this contract, including the invoices attached to this PAR form. 15. Total of HUB expenditures on contract to date-Enter the total of all HUB subcontractor invoices for this contract to date. 16.Percent of HUB expenditures for contract to date-Use the instructions on the PAR form to calculate the percentage of this contract that HUB subcontractors have completed to date. 17.HUB Subcontracting goal for this contract-Your HUB goal is stated as a percentage in your contract. Enter your HUB goal here. 18.Signature-The person named in Item 5 must sign here as the representative of the prime contractor. 19.Date-Enter the date you completed this report. Contract Number 582-8-72685 77 4 IN P. ILA, �n y U I, T." I. I 1 Form B-2 TCEQ PURCHASE VOUCHER Page of Agency No. 582 Agency Name Texas Commission on Environmental Quality Current Document No. I. Date TCEQ Received 2. Service Dates 3. Contract/Purchase 4. Requested Payment 5. Payment Due Invoice Order Date Date Date 6. Payee Identification No. 8. Voucher Prepared By: Date: 7. Pay To (Payee Name/Address): 9. Contract Voucher Auditor: Date: 10. FINAL BILLING YES NO (Please circle one) DOCS REF DOC SFX TRANS INDEX MOD AY 11. PCA PCC FX CODE P 231 001 SEQ REQ NO COMP OBJ AGY OBJ 12. AMOUNT RVS RTI NUMBER NO. 13. INVOICE NUMBER DESCRIPTION 14. CONTRACT NO. GRANT NO. PROJECT NO. DOCS REF DOC SIX TRANS INDEX MOD AY 11. PCA PCC FX CODE P 231 001 SEQ REQ NO COMP OBJ AGY OBJ 12. AMOUNT RVS RTI NUMBER NO. 13. INVOICE NUMBER DESCRIPTION 14. CONTRACT NO. GRANT NO. PROJECT NO. 15, DESCRIPTION OF GOODS or SERVICES 16, QUANTITY 17. UNIT PRICE 18. AMOUNT LEGAL DESCRIPTIVE TEXT: I approve this voucher for payment. The above goods or services correspond in every particular with the contract under which they were purchased. The invoice for the goods or services is correct. This payment complies with the General Appropriations Act. 19. DIVISION SIGN 19. Phone(Area code and number) 19. Date APPROVAL HERE BATCH NO BATCH TYPE [ENTERED E ENTERED BY DATE RELEASED BY: 4 RELEASED DATE MAILED OR WARRANT NUMBER DIRECT DEPOSIT TRANSMITTAL NUMBER TRANSMITTED Contract Number 582-8-72685 78 OUZ6 2 Cq w cm § z .Ir w � o ® & .. ■ § Qo 2 k k § ° cc Q k E �_ \ } ir k LL / 2 2 D j w o § \ K > k ■ ! U ` 2 \ § o & B k d ) �! § — am_ § y 2 .. 2 Ll 2o a 2 q @0 % .. ` � ° w■ ■ 0 0 — § 0 z IL ] a B O Cq 4 ° � S / 2 f ■ § k F- c k § 0 o \ ir 0 C ■ � V / { Z E k k w V ) . w § 2 � m § £ § 0 k v 0. ■ ® « x ■ , f � k � _ � � t 0 C ) k _ ® Q 2 © � x § 2 % k k % 'LU OC O k / 2 E 7 0 § / ; % § � k ( % §@ k / 2 � / 0 / ) 0 \ § (t LU\ f r � QwrLL R —iw _ U � @ LU co / k \ U Form B-4 FINANCIAL STATUS REPORT ' State Agency to Which Report is Submitted 2.State Grant or Contract Number Assigned by State Agency 3. Recipient Organization(Name and complete address,including ZIP Code) 4. Employer Identification Number 5.Recipient Account Number or 6.Final Report T. Basis Identifying Number _Yes _ No Cash _Accrual S. Funding/Grant Period To:(Month/Day/Year) 9.Period Covered by this Report To fM03th+1t1y-`L!ari From: From:(Month/Day/Year) (Month/Day/Year) 10. Transactions: I Previously Reported 11 ThFs period Itl Cumuiallve a. Total outlays b. Recipient share of outlays C. State share of outlays d. Total unliquidated obligations e. Recipient share of unliquidated obligations f. State share of unliquidated obligations g. Total State share(Sum of lines c and f) h. Total State funds authorized for this funding period I. Unobligated balance of 11 State funds(Line h minus line g) ? 11.Remarks:Attach any explanations deemed necessary or information required by State sponsoring agency in compliance with governing legislation. 12. Certification: I certify to the best of my knowledge and belief that this report is correct and complete and that all outlays and unliquidated obligations are for the purposes set forth in the grant documents. Printed Name and Title Telephone(Area Code,number,and extension) I i Signature of Authorized Certifying Official Date Report Submitted Contract Number 582-8-72685 80 Form B-5 LOWER TIER EPA EPA Project Control Number 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 principals: (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 proposal been convicted of or had a civil 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 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/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 of Authorized Representative Signature of Authorized Representative Date ❑ I am unable to certify to the above statements. My explanation is attached. EPA Form 5700-49(11-88) Contract Number 582-8-72685 81 Form B-6 Page 1 of 6 SUMMARY OF ALL SUBCONTRACTING OPPORTUNITIES The form reproduced on the following page is the SUMMARY OF SUBCONTRACTING OPPORTUNITIES. An entry must be completed for each subcontracting opportunity. All subcontracting opportunities must be included on the form. Contract Number 582-8-72685 82 Form B-6 page 2 of 6 SUMMARY OF ALL SUBCONTRACTING OPPORTUNITIES Subcontract Number Percentage of work proposed for this Subcontract: Attached Documentation(circle one): Attachment HUB/MWBE Subcontractor Letter(s)of Intent OR Attachment HUB/MWBE Subcontractor Solicitation(s) Description of Subcontract: Subcontract Number: Percentage of work proposed for this Subcontract: Attached Documentation(circle one): Attachment HUB/MWBE Subcontractor Letter(s)of Intent OR Attachment HUB/MWBE Subcontractor Solicitation(s) Description of Subcontract: Subcontract Number: Percentage of work proposed for this Subcontract: Attached Documentation(circle one): Attachment HUB/MWBE Subcontractor Letter(s)of Intent Attachment HUB/MWBE Subcontractor Solicitation(s) Description of Subcontract: (reproduce as necessary) Contract Number 582-8-72685 83 Form B-6 page 3 of 6 HUB/MWBE SUBCONTRACTOR LETTER OF INTENT The form reproduced on the following page is the HUB/MWBE SUBCONTRACTOR LETTER OF INTENT, for use by PERFORMING PARTY and the named HUB/MWBE Subcontractor to demonstrate to the TNRCC the intent to enter into a subcontract if PERFORMING PARTY is awarded a contract and if subcontract negotiations can be concluded between the PERFORMING PARTY and the named HUB/MWBE Subcontractor to the satisfaction of both parties. Documentation of the PERFORMING PARTY's preparations to utilize HUB/MWBEs is required solely for the purpose of demonstrating the good faith effort. Therefore, TNRCC accepts such documentation without regard to any other prospective PERFORMING PARTY's documentation indicating preparations to utilize the same HUB/MWBE(s). For each HUB/MWBE SUBCONTRACTOR LETTER OF INTENT, a copy of the HUB Subcontractor's CURRENT HUB Certification MUST BE ATTACHED. If HUB certification is pending before GSC, then please staple a copy of the letter requesting HUB status certification which has been submitted to GSC (DO NOT INCLUDE THE HUB SUBCONTRACTOR'S APPLICATION FOR CERTIFICATION). All applications for HUB certification must be submitted to and received by GSC prior to the deadline date for the checklist and other required documentation(fourteen (14) days following selection but prior to award of the contract). Contract Number 582-8-72685 84 Form B-6 page 4 of 6 HUB/MWBE SUBCONTRACTOR LETTER OF INTENT Subcontract Number: PERFORMING PARTY Name HUB/MWBE Subcontractor Name: HUB GSC Vendor ID#: Description of services: Time period covered: PERFORMING PARTY: HUB/MWBE Subcontractor: (Authorized Signature) (Authorized Signature) (Title) (Title) Printed Naine and Address: Printed Name and Address: (Phone) (Phone) Contract Number 582-8-72685 85 Form B-6 page 5 of 6 HUB/MWBE SUBCONTRACTOR SOLICITATION The form reproduced on the following page is the HUB/MWBE SUBCONTRACTOR SOLICITATION. The purpose of this form is to demonstrate that a good faith effort was made by giving notice of each subcontracting opportunity to HUB/MWBEs and by dealing fairly with the HUB/MWBEs responding to the notice. One copy should be used for each HUB/MWBE receiving a notice letter or responding to an advertisement. If no HUB/MWBEs responded to a published advertisement, so indicate and insert a copy of the advertisement after the form. 86 Form B-6 page 6 of 6 HUB/MWBE SUBCONTRACTOR SOLICITATION PERFORMING PARTY Subcontract Number: PERFORMING PARTY utilized the following form of notice (circle one): Notice Letter Advertisement If PERFORMING PARTY utilized a published advertisement, did a HUB/MWBE respond (circle one)? Yes No If no, insert the published advertisement after this form and complete paragraph b below. HUB/MWBE Subcontractor receiving notice letter or responding to advertisement: Name: Address: Phone: Owner: a. Insert a copy of the notice letter to this HUB/MWBE after this form. If the subcontracting opportunity was advertised rather than solicited, provide a copy of each advertisement and the name of the firm responding to the advertisement. COPY OF NOTICE LETTER OR ADVERTISEMENTS MUST BE INCLUDED. b. Date notice letter sent or advertisement issued: c. Date HUB/MWBE responded to notice letter/advertisement (Or "No Response" if appropriate): d. Date PERFORMING PARTY furnished HUB/MWBE with information about bonding, insurance, plans, specifications, scope of work, and requirements of the contract: e. HUB/MWBE offered lowest price to complete the subcontract. (circle one) Yes No f. If the HUB/MWBE was the lowest price responsive bidder but not selected by PERFORMING PARTY, provide the reasons for rejection. g. If applicable, date PERFORMING PARTY met with HUB/MWBE to discuss basis of rejection: If certified HUB, enter Texas Building and Procurements Commission Vendor Identification Number: If HUB is not GSC certified, check the box below that best represents the gender and ethnicity of the HUB/MWBE: Black American (❑M ❑F) Asian Pacific American (❑ M ❑ F) Hispanic American (❑M ❑F) American Indian (❑M ❑ F) Other (❑M ❑F) Contract Number 582-8-72685 87 Form B-8 Texas Commission on Environmental Quality FINANCIAL STATUS REPORT STATE AGENCY ORGANIZATION UNIT TO WHICH REPORT IS SUBMITTED: 'GRANT/CONTRACT TITLE: 'PAYEE IDENTIFICATION NUMBER: 4. RECIPIENT ORGANIZATION(NAME AND COMPLETE ADDRESS,INCLUDING ZIP CODE): !TCEQ CONTRACT NUMBER: FINAL REPORT: YES NO ACCOUNTING BASIS: CASH ACCRUAL OTAL PROJECT/GRANT PERIOD: 9. PERIOD COVERED BY THIS REPORT: FROM TO FROM TO 'BUDGET CATEGORIES: Approved Project Cost *TCEQ/Federal Local Match Cumulative Balance** Budget This Report Amount Amount Personnel/Salary (Fringe Benefits Travel Supplies Equipment Contractual Construction (Other Total Direct Costs (Sum a-h) Indirect Costs Total (Sum of i&j) List (Itemize) on the appropriate supplemental form all component expenses comprising the total for each of these categories. Please attach receipts,as required,in accordance with Attachment B of your contract. 'Negative balances in any of the budget categories should be explained in a brief accompanying narrative. CERTIFICATION I certify to the best of my knowledge and belief that this report is correct and complete and that all outlays and unliquidated obligations are for the purposes set forth in the award document. Signature of Authorized Certifying Official Typed or Printed Name and Title Telephone (Area code,number and ext.) Date Submitted Contract Number 582-8-72685 88 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 approval) TOTAL EQUIPMENT EXPENDITURES (must agree with line 10e on Form 269a) CONTRACTUAL EXPENDITURES (during this report period) SUBCONTRACTOR(NAME) FOR COST (THIS PERIOD) TASKS TOTAL CONTRACTUAL EXPENDITURES (must agree with line 1 Of on Form 269a) * LEGIBLE PURCHASE ORDER AND/OR INVOICES MUST BE ATTACHED TO THIS FORM FOR EACH LISTED ITEM OR EXPENDITURE. 89 Contract Number 582-8-72685 ITEMIZATION OF CONSTRUCTION COSTS (CONSTRUCTION COSTS (during this report period) DESCRIPTION PURPOSE 7COST(THIS PERIOD) 17 ASKS IF IE 11 1E F_ I 7F- IE 71 IF -1 IF 11 1E 1[7� IF I IF 11 - I 1E -1 IE IF- E - 1 IF I OTAL CONSTRUCTION EXPENDITURES (must agree with line 10g on Form 269a) $ "LEGIBLE DOCUMENTATION MUST BE ATTACHED FOR ALL LISTED EXPENDITURES. 90 F; ' '`, Contract Number 582-8-72685 i3 �� o ' ITEMIZATION OF SUPPLY AND OTHER COSTS SUPPLIES PURCHASED (during this report period) NUMBER ITEM DESCRIPTION UNIT TOTAL TASKS PURCHASED (Should match description provided for approval) COST COST TOTAL SUPPLY EXPENDITURES (must agree with line 10d on Form 269a) $ OTHER EXPENDITURES (during this report period) NUMBER DESCRIPTION UNIT TOTAL TASKS PURCHASED COST COST ��L THER EXPENDITURES (must agree with line 10h on Form 269a) $ IL "LEGIBLE RECEIPTS OR OTHER SUBSTANTIATING DOCUMENTATION MAY BE ATTACHED FOR EXPENDITURES THAT EQUAL OR EXCEED$500. 91 Contract Number 582-8-72685 ITEMIZATION OF PERSONNEL/SALARY AND TRAVEL COSTS PERSONNEL/SALARY EXPENDITURES (during this report period) EMPLOYEE NAME TITLE/POSITION SALARY(THIS TASKS PERIOD �OTAL PERSON N E LISALARY EXPENDITURES (must agree with line 10a on Form 269a) Is F TRAVEL EXPENDITURES (during this report period) DESCRIPTION REASON COST(THIS PERIOD TASKS TRAVEL EXPENDITURES (must agree with line 10c on $ F69a) TOTAL * SUBSTANTIATING DOCUMENTATION (time sheets,travel receipts, etc.) MAY BE REQUIRED TO BE ATTACHED TO THIS FORM 92 Contract Number 582-8-72685 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. 93 Contract Number 582-8-72685 MIBIT A-1 INSTRUCTIONS FOR THE SF-4' Public reporting burden for this collection of h.--mati:m is estimated to average 45 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(0348-0043),Washington,DC 20503. PLEASE DO NOT RETURN YOUR COMPLETED FORM TO THE OFFICE OF MANAGEMENT AND BUDGET,SEND IT TO THE ADDRESS PROVIDED BY THE SPONSORING AGENCY. This is a standard form used by applicants as a required face sheet for pre-applications and applications submitted for Federal assistance. It will be used by Federal agencies to obtain applicant certification that States which have established a review and comment procedure in response to Executive Order 12372 and have selected the program to be included in their process,have been given an opportunity to review the applicant's submission. Item: En Item: Entry: I. Select Type of Submission. II. Enter a brief descriptive title of the project. If more than one program is involved,you should append an explanation on a separate sheet. If appropriate(e.g.,construction or real property projects), attach a map showing project location. For preapplications,use a separate sheet to provide a sunimary description of this project. 2. Date application submitted to Federal agency(or State if applicable) 12. List only the largest political entities affected(e.g.,State,counties, and licant's control number(ifapplicable) cities). 3. State use only(if applicable). 13. Enter the proposed start date and end date of the project. 4. Enter Date Received by Federal Agency Federal identifier number: If 14. List the applicant's Congressional District and any District(s) this application is a continuation or revision to an existing award, affected by the program or project enter the present Federal Identifier number. If for a new project, leave blank. S. Enter legal name of applicant,name of primary organizational unit 15. Amount requested or to be contributed during the first (including division,if applicable),which will undertake the assistance funding/budget period by each contributor. Value of in kind activity,enter the organization's DUNS number(received from Dun contributions should be included on appropriate lines as applicable. and Bradstreet),enter the complete addre s of the applicant(including If the action will result in a dollar change to an existing award, country),and name,telephone number,e-mail and fax of the person indicate only the amount of the change. For decreases,enclose the to contact on matters related to this application. amounts in parentheses. If both basic and supplemental amounts are included,show breakdown on an attached sheet. For multiple program funding,use totals and show breakdown using same categories as item 15. 6. Enter Employer Identification Number(EIN)as assigned by the 16. Applicants should contact the State Single Point of Contact(SPOC) Internal Revenue Service. for Federal Executive Order 12372 to determine whether the application is subject to the State intergovernmental review process. 7. Select the appropriate letter in 17. This question applies to the applicant organization,not the person the space provided. 1. State Controlled who signs as the authorized representative. Categories of debt A. State Institution of Higher include delinquent audit disallowances,loans and taxes. B. County I.eaming C. Municipal J. Private University D. Township K. Indian Tribe E. Interstate L. Individual F. Intermunicipal M. Profit Organization G. Special District N. Other(Specify) H. Independent School O. Not for Profit District Organization 8. Select the type from the following list: 18. To be signed by the authorized representative of the applicant. A • "New"means a new assistance award. copy of the governing body's authorization for you to sign this • "Continuation"means an extension for an additional application as official representative must be on file in the applicant's funding/budget period for a project with a projected office. (Certain Federal agencies may require that this authorization completion date. be submitted as part of the application.) • "Revision"means any change in the Federal Government's financial obligation or contingent liability from an existing obligation. If a revision enter the appropriate letter: A.Increase Award B.Decrease Award C. Increase Duration D. Decrease Duration 9. Name of Federal agency from which assistance is being requested with this application. 10. Use the Catalog of Federal Domestic Assistance number and title of the program under which assistance is requested. SF-424(Rev.7-97)Back Version 7/03 APPLICATION FOR 2.DATE SUBMITTED Applicant Identifier OPTIONAL FEDERAL ASSISTANCE (Assigned by Applicant) 1.TYPE OF SUBMISSION: 3.DATE RECEIVED BY STATE State Application Identifier Application Pre-application ❑Construction ❑Construction 4.DATE RECEIVED BY FEDERAL AGENCY Federal Identifier ❑Non-Construction ❑Non-Construction (Assigned by EPA 5. APPLICANT INFORMATION Legal Name: Organizational Unit: Department: Organizational DUNS: Division: Address: Name and telephone number of person to be contacted on matters involving this application(give area code) Street: Prefix: First Name: City: Middle Name: County: Last Name: State: Zip Code: Suffix: Country: Email: 6.EMPLOYER IDENTIFICATION NUMBER(EIN): Phone Number(give area code) Fax Number(give area code) 8. TYPE OF APPLICATION: 7. TYPE OF APPLICANT:(See back of form for Application Types) ❑New ❑Continuation ❑Revision If Revision,enter appropriate letter(s)in box(es) (See back of form for description of letters.) Other(specify) Other(specify) 9.NAME OF FEDERAL AGENCY: 10 CATALOG OF FEDERAL DOMESTIC ASSISTANCE NUMBER: 11. DESCRIPTIVE TITLE OF APPLICANT'S PROJECT: ❑-❑❑F] TITLE(Name of Program): 12. AREAS AFFECTED BY PROJECT(Cities,Counties,States,etc): 13. PROPOSED PROJECT 14.CONGRESSIONAL DISTRICTS OF: Start Date: Ending Date: a.Applicant b.Project 15.ESTIMATED FUNDING: 16.IS APPLICATION SUBJECT TO REVIEW BY STATE EXECUTIVE ORDER 12372 PROCESS? a.Federal $ a.Yes 0 THIS PREAPPLICATION/APPLICATION WAS MADE b.Applicant $ AVAILABLE TO THE STATE EXECUTIVE ORDER 12372 PROCESS FOR c.State $ REVIEW ON d.Local $ DATE: e.Other $ b.No ❑ PROGRAM IS NOT COVERED BY E.0.12372 ❑ OR PROGRAM HAS NOT BEEN SELECTED BY STATE FOR REVIEW f.Pro Income $ I7.IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT? g.TOTAL $ ❑Yes If"Yes"attach an explanation. ❑No 18. TO THE BEST OF MY KNOWLEDGE AND BELIEF,ALL DATA IN THIS APPLICATION/PREAPPLICATION ARE TRUE AND CORRECT. THE DOCUMENT HAS BEEN DULY AUTHORIZED BY THE GOVERNING BODY OF THE APPLICANT AND THE APPLICANT WILL COMPLY WITH THE ATTACHED ASSURANCES IF THE ASSISTANCE IS AWARDED. a.Authorized Re 7Ftmt ve Prefix Name Middle Name Last Name Suffix b.Title c.Telephone Number(give area code) d.Signature of Authorized Representative e.Date Signed Previous Edition Usable Standard Form 424(Rev.9-2003) Authorized for Local Reproduction Prescribed by OMB Circular A-102 INSTRUCTIONS FOR THE SF424A 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 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 THE OFFICE OF MANAGEMENT AND BUDGET. SEND IT TO THE ADDRESS PROVIDED BY THE SPONSORING AGENCY. General Instructions For continuing grant program applications,submit these forms before the end of each funding period as required by the grantor This form is designed so that application can be made for funds agency. Enter in Columns(c)and(d)the estimated amounts of from one or more grant programs. In preparing the budget,adhere funds which will remain unobligated at the end of the grant to any existing Federal grantor agency guidelines which prescribe funding period only if the Federal grantor agency instructions how and whether budgeted amounts should be separately shown provide for this. Otherwise,leave these columns blank. Enter in for different functions or activities within the program. For some columns(e)and(f)the amounts of funds needed for the programs,grantor agencies may require budgets to be separately upcoming period. The amount(s)in Column(g)should be the shown by function or activity. For other programs,grantor sum of amounts in Columns(e)and(f). agencies may require a breakdown by function or activity. Sections A, B,C,and D should include budget estimates for the For supplemental grants and changes to existing grants,do not whole project except when applying for assistance which requires use Columns(c)and(d). Enter in Column(e)the amount of the Federal authorization in annual or other funding period increase or decrease of Federal funds and enter in Column(f)the increments. In the latter case,Sections A,B,C,and D should amount of the increase or decrease of non-Federal funds. In provide the budget for the first budget period(usually a year)and Column(g)enter the new total budgeted amount(Federal and Section E should present the need for Federal assistance in the non-Federal)which includes the total previous authorized subsequent budget periods. All applications should contain a budgeted amounts plus or minus,as appropriate,the amounts breakdown by the object class categories shown in Lines a-k of shown in Columns(e)and(f). The amount(s)in Column(g) Section B. should not equal the sum of amounts in Columns(e)and(f). Section A.Budget Summary Lines 14 Columns(a)and(b) Line 5-Show the totals for all columns used. For applications pertaining to a single Federal grant program Section B Budget Categories (Federal Domestic Assistance Catalog number)and not requiring a functional or activity breakdown,enter on Line 1 under Column In the column headings(1)through(4),enter the titles of the (a)the Catalog program title and the Catalog number in Column same programs,functions,and activities shown on Lines 1-4, (b). Column(a),Section A.When additional sheets are prepared for Section A,provide similar column headings on each sheet. For For applications pertaining to a single program requiring budget each program,function or activity,fill in the total requirements amounts by multiple functions or activities,enter the name of each for funds(both Federal and non-Federal)by object class activity or function on each line in Column(a),and enter the categories. Catalog number in Column(b). For applications pertaining to multiple programs where none of the programs require a Line 6a-i-Show the totals of Lines 6a to 6h in each column. breakdown by function or activity,enter the Catalog program title on each line in Column(a)and the respective Catalog number on Line 6j-Show the amount of indirect cost. each line in Column(b). Line 6k-Enter the total of amounts on Lines 6i and 6j. For all For applications pertaining to multiple programs where one or applications for new grants and continuation grants the total more programs require a breakdown by function or activity, amount in column(5),Line 6k,should be the same as the total prepare a separate sheet for each program requiring the amount shown in Section A,Column(g),Line 6. For breakdown. Additional sheets should be used when one form does supplemental grants and changes to grants,the total amount of the not provide adequate space for all breakdown of data required. increase or decrease as shown in Columns(1)-(4),Line 6k should However,when more than one sheet is used,the first page should be the same as the sum of the amounts in Section A,Columns(e) provide the summary totals by programs. and(f)on Line 5. Lines 14,Columns(c)through(g) Line 7-Enter the estimated amount of income,if any,expected to be generated from this project. Do not add or subtract this For new applications,leave Column(c)and(d)blank. For each amount from the total project amount,Show under the program 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). SF424A(Rev.7-97) Page 3 T *STRUCTIONS FOR THE SF424A coi ied) narrative statement the nature and source income. The Line 15-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 Section E. Budget Estimates of Federal Funds Needed for the grant. Balance of the Project Section C.Non-Federal Resources Lines 16-19-Enter in Column(a)the same grant program titles shown in Column(a),Section A. A breakdown by function or Lines 8-11 Enter amounts of non-Federal resources that will activity is not necessary. For new applications and continuation be used on the grant. If in-kind contributions are included, grant applications,enter in the proper columns amounts of provide a brief explanation on a separate sheet. Federal funds which will be needed to complete the program or project over the succeeding funding periods(usually in years). Column(a)- Enter the program titles identical to This section need not be completed for revisions(amendments, Column(a),Section A. A breakdown by function changes,or supplements)to funds for the current year of existing or activity is not necessary. grants. Column(b)-Enter the contributions to be made by If more than four lines are needed to list the program titles, the applicant. submit additional schedules as necessary. Column(c)-Enter the amount of the State's cash Line 20-Enter the total for each of the Columns(b)-(e). When and in-kind contribution if the applicant is not a additional schedules are prepared for this Section, annotate State or State agency. Applicants which are a State accordingly and show the overall totals on this line. or State agencies should leave this column blank. Section F. Other Budget Information Column(d)-Enter the amount of cash and in-kind contributions to be made from all other sources. Line 21-Use this space to explain amounts for individual direct object class cost categories that may appear to be out of the Column(e)-Enter totals of Columns(b),(c),and ordinary or to explain the details as required by the Federal (d). grantor agency. Line 12-Enter the total for each of Columns(b)-(e). The Line 22-Enter the type of indirect rate(provisional, amount in Column(e)should be equal to the amount on Line predetermined,final or fixed)that will be in effect during the 5,Column(f),Section A. funding period,the estimated amount of the base to which the rate is applied,and the total indirect expense. Section D.Forecasted Cash Needs Line 23-Provide any other explanations or comments deemed Line 13-Enter the amount of cash needed by quarter from the necessary. grantor agency during the first year. Line 14-Enter the amount of cash from all other sources needed by quarter during the first year. SF-424A(Rev.7-97)Page 4 N o 0 0 0 0 6 0 6 6 0 0 0 0 0 0 0 0 o a79 d :° ^ ^ U z_ V oT O O C3. yq yq d3 b4id' � n� V V it y a o z z U w C LQ� 5R 5R Q �Ur d? 59 �' 0 •� 5R 5R �-. �y N hN to Z � E F y � ^ G7 w CA ^ 4bO% 4bO% U N uo _W2 tC N y �O o w o b w a e U E U e — o E y E y 02 U CA to o n e o C o 0 o W v� U U c = O O cd ob r ai a o cV M 0. 0 0 0 0 0 0 o a O Cy w° a ` N E-4 Ica w° U Cy .. O M a so "o w -� o Z o Q o z a a W N ..= qad O U u W a a ~ N a Q U (:y N U q 40.) w O w O C $ $ $ O w Q � W E� W as w o Z to O ►» a ., a ^ F ., C7 o� Wz N .—•i CV M V1 .�. Neli N N '- 00 O� •• •• OMB Approval No.0348-0040 .&SURANCES-NON-CONSTRUCTION PROG M Fi 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 ADDRESS PROVIDED BY THE 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 Federal assistance and the basis of handicaps;(d)the Age Discrimination Act of institutional,managerial and financial capability(including 1975,as amended(42 U.S.C.6101-6107),which funds sufficient to pay the non-Federal share of project cost) prohibits discrimination of the basis of age;(e)the Drug to ensure proper planning,management and completion of Abuse Office and Treatment Act of 1972(P.L.92-255), the project described in this application. as amended,relating to nondiscrimination on the basis of drug abuse;(f)the Comprehensive Alcohol Abuse and 2. Will give the awarding agency,the Comptroller General of Alcoholism Prevention,Treatment and Rehabilitation Act the United States and,if appropriate,the State,through any of 1970(P.L.91-616),as amended,relating to authorized representative,access to and the right to examine nondiscrimination on the basis of alcohol abuse or all records,books,papers,or documents related to the award; alcoholism;(g)523 and 527 of the Public Health Service and will establish a proper accounting system in accordance Act of 1912(42 U.S.C.290 dd-3 and 290 ee-3),as with generally accepted accounting standards or agency amended,relating to confidentiality of alcohol and drug directives. abuse patient records;(h)Title VII of the Civil Rights Act of 1968(42 U.S.C.3601 et seq.),as amended,relating to 3. Will establish safeguards to prohibit employees from using nondiscrimination in the sale,rental or financing of their positions for a purpose that constitutes or presents the housing;(i)any other nondiscrimination provisions in appearance of personal or organizational conflict of interest, the specific statute(s)under which application for Federal or personal gain. assistance is being made;and 0)the requirements of any other nondiscrimination statute(s)which may apply to the 4. Will establish safeguards to prohibit employees from using application. their positions for a purpose that constitutes or presents the appearance of personal or organizational conflict of interest, 7. Will comply,or has already complied,with the or personal gain. requirements of Titles II and III of the Uniform Relocation Assistance and Real Property Acquisition 5. Will comply with the Intergovernmental Personnel Act of Policies Act of 1970(P.L.91-646)which provide for fair 1970(42 U.S.C.4728-4763)relating to prescribed standards and equitable treatment of persons displaced or whose for merit systems for programs funded under one of the 19 property is acquired as a result of Federal or federally- statutes or regulations specified in Appendix A of OPM's assisted programs. These requirements apply to all Standards for a Merit System of Personnel Administration(5 interests in real property acquired for project purposes C.F.R.900,Subpart F). regardless of Federal participation in purchases. 6. Will comply with all Federal statutes relating to 8. Will comply,as applicable,with provisions of the Hatch nondiscrimination. These include but are not limited to:(a) Act(5 U.S.C. 1501-1508 and 7324-7328)which limit the Title VI of the Civil Rights Act of 1964(P.L.88-352)which political activities of employees whose principal prohibits discrimination on the basis of race,color or employment activities are funded in whole or in part with national origin;(b)Title IX of the Education Amendments of Federal funds. 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 Previous Edition Usable Standard Form 424B(Rev 7-97) Authorized for Local Reproduction Prescribed by OMB Circular A-102 9. Will comply, as applicable,with the isions of 12. Will comply the Wild and Scenic Rivers Act of 1968(16 the Davis-Bacon Act(40 U.S.C. 276a to:z i6a-7),the U.S.C. 1271 et seq.)Related to protecting components or potential Copeland Act(40 U.S.C.276c and 18 U.S.C. 874),and components of the national wild and scenic rivers system. the Contract Work Hours and Safety Standards Act(40 U.S.C. 327-333),regarding labor standards for 13. Will assist the awarding agency in assuring compliance will federally-assisted construction subagreement. Section 106 of the National Historic Preservation Act of 1966,as amended(16 U.S.C.470),EO 11593(identification and protection 10. Will comply,if applicable,with flood insurance of historic properties),and the Archaeological and Historic purchase requirements of Section 102(a)of the Flood Preservation Act of 1974(16 U.S.C.469a-1 et seq.). Disaster Protection Act of 1973(P.L.93-234)which requires recipients in a special flood hazard area to 14. Will comply with P.L.93-348 regarding the protection of participate in the program and to purchase flood human subjects involved in research,development,and related insurance if the total cost of insurable construction and activities supported by this award of assistance. acquisition is $10,000 or more. 15. Will comply with the Laboratory Animal Welfare Act of 1966 11. Will comply with environmental standards which (P.L. 89-544,as amended,7 U.S.C.2131 et seq.)Pertaining to the may be prescribed pursuant to the following: (a) care,handling,and treatment of warm blooded animals held for institution of environmental quality control measures research,teaching,or other activities supported by this award of under the National Environmental Policy Act of 1969 assistance. (P.L.91-190)and Executive Order(EO) 11514;(b) notification of violating facilities pursuant to EO 16. Will comply with the Lead-Based Paint Poisoning Prevention 11738; (c)protection of wetlands pursuant to EO Act(42 U.S.C.4801 et seq.)Which prohibits the use of lead-based 11990;(d)evaluation of flood hazards in flood plains paint in construction or rehabilitation of residence structures. in accordance with EO 11988;(e)assurance of project consistency with the approved State management 17. Will cause to be performed the required financial and program developed under the Coastal Zone compliance audits in accordance with the Single Audit Act Management Act of 1972(16 U.S.C. 1451 et seq.);(f) Amendments of 1996 and OMB Circular No.A-133,"Audits of conformity of Federal actions to State(Clean Air) States,Local Governments,and Non-Profit Organizations." Implementation Plans under Section 176(c)of the Clean Air Act of 1955,as amended(42 U.S.C.7401 et 18. Will comply with all applicable requirements of all other seq.);(g)protection of underground sources of drinking Federal laws,executive orders,regulations,and policies governing water under the Safe Drinking Water Act of 1974,as this program. amended(P.L.93-523);and,(h)protection of endangered species under the Endangered Species Act of 1973,as amended(P.L.93-205). SIGNATURE OF AUTHORIZED CERTIFYING OFFICIAL TITLE APPLICANT ORGANIZATION DATE SUBMITTED Standard Form 424B(Rev.7-97)Back INSTRUCTIONS FOR THE SF-4: Y 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 OFFICE 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: (1) "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 form. 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 Line 4-Enter estimated basic engineering fees related to the total estimated cost of each of the items listed on lines 1 construction(this includes start-up services and preparation of through 16(as applicable)under"COST CLASSIFICATION." project performance work plan). If this application entails a change to an existing award,enter Line 5-Enter estimated engineering costs,such as surveys,tests, the eligible amounts approved under the previous award for the soil borings,etc. items under"COST CLASSIFICATION." Line 6-Enter estimated engineering inspection costs. 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 Line 7-Enter estimated cots of site preparation and restoration allowable for Federal assistance. Contact the Federal agency which are not included in the basic constriction contract. for assistance in determining the allowability of specific costs. Line 9-Enter estimated cost of the construction contract. If this application entails a change to an existing award,enter the adjustment [+or(-)] to the previously approved costs(from Line 10-Enter estimated cost of office,shop,laboratory,safety column a.)Reflected in this application. equipment,etc.to be used at the facility. If such costs are not included in the construction contact. Column-This is the net of lines 1 through 16 in columns"a." and"b." Line 11 -Enter estimated miscellaneous costs. Line 12-Total of items 1 through 11. Line 1 -Enter estimated amounts needed to cover Line 13-Enter estimated contingency cots. (Consult the Federal administrative expenses. Do not include costs which are agency for the percentage of the estimated construction costs to related to the normal functions of government. Allowable legal use.) costs are generally only those associated with the purchases of land which is allowable for Federal participation and certain Line 14-Enter the total of lines 12 and 13. services in support of construction of the project. Line 15-Enter estimated program income to be earned during Line 2-Enter estimated site and right(s)-of-way acquisition the grant period,e.g.,salvaged materials,etc. costs(this includes purchase,lease,and/or easements). Line 16-Subtract line 15 from line 14. Line 3-Enter estimated costs related to relocation advisory assistance,replacement housing,relocation payments to Line 17-This block is for the computation of the Federal share. displaced persons and businesses,etc. 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 .. N � a O O O O O O O O O O O O O O O O O a Z ° U U U p 0 3 ea O c E p U � H a � a H m ds vi bs V4 ds 604 604 V4 V4 ds ds V4 V4 ds bs 604 U N Q Q Q Q Q Q N V V V V V . V 5 0 0 0 U � H w C ca IX 0 3 0 a a c ee O � `^ c�v Z n, . tm g u° U a ad 0 d ro o y u N w > z � w W Q �h C A d CC 0 U � ci E o A 0 m W Wyy H N Ir V � z Vl P a m H a y y E U H H .3 H 'O 'C 'n •> '� O O Ca d =� ^0 e ocOOW H n c eo Q� y U C •.7 � H C _ C Q� � `n � L� ^ y � Lei • V L. U 3 ° w N y m a a a o w 0 u u3 u a u�. v w H 0 O N vi d vi �d > Z CV el; !f Vj l-: o0 a OMB Approval No.0348-0042 3URANCES•CONSTRUCTION PROL_.AMS 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(0348-0042),Washington,DC 20503. PLEASE DO NOT RETURN YOUR COMPLETED FORM TO THE OFFICE OF MANAGEMENT AND BUDGET. SEND IT TO THE ADDRESS PROVIDED BY THE 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. As the duly authorized representative of the applicant,I certi that the applicant: 1. Has the legal authority to apply for Federal assistance, 8. Will comply with the Intergovernmental Personnel Act and the institutional,managerial and financial capability of 1970(42 U.S.C.4728-4763)relating to prescribed (including funds sufficient to pay the non-Federal share of standards for merit systems for programs funded under project costs)to ensure proper planning,management and one of the 19 statutes or regulations specified in completion of the project described in this application. Appendix A of OPM's Standards for a Merit System of Personnel Administration(5 C.F.R.900,Subpart F). 2. Will give the awarding agency,the Comptroller General of the United States and,if appropriate,the State,through 9. Will comply with the Lead-Based Paint Poisoning any authorized representative,access to and the right to Prevention Act(42 U.S.C.4801 et seq.)which examine all records,books,papers,or documents related prohibits the use of lead-based paint in construction or to the assistance;and will establish a proper accounting rehabilitation of residence structures. system in accordance with generally accepted accounting standards or agency directives. 10. Will comply with all Federal statutes relating to non- discrimination. These include but are not limited to: 3. Will not dispose of,modify the use of,or change the (a)Title VI of the Civil Rights Act of 1964(P.L. 88- terms of the real property title,or other interest in the site 352)which prohibits discrimination on the basis of and facilities without permission and instructions from race,color or national origin;(b)Title IX of the the awarding agency. Will record the Federal interest in Education Amendments of 1972,as amended(20 the title of real property in accordance with awarding U.S.C. 1681-1683,and 1685-1686),which prohibits agency directives and will include a covenant in the title discrimination on the basis of sex;(c)Section 504 of of real property acquired in whole or in part with Federal the Rehabilitation Act of 1973,as amended(29 U.S.C. assistance funds to assure non-discrimination during the 794),which prohibits discrimination on the basis of useful life of the project. handicaps;(d)the Age Discrimination Act of 1975,as amended(42 U.S.C.6101-6107), which prohibits 4. Will comply with the requirements of the assistance discrimination on the basis of age;(e)the Drug Abuse awarding agency with regard to the drafting,review and Office and Treatment Act of 1972(P.L.92-255),as approval of construction plans and specifications. amended,relating to nondiscrimination on the basis of drug abuse;(f)the Comprehensive Alcohol Abuse and 5. Will provide and maintain competent and adequate Alcoholism Prevention,Treatment and Rehabilitation engineering supervision at the construction site to ensure Act of 1970(P.L.91-616),as amended,relating to that the complete work conforms with the approved plans nondiscrimination on the basis of alcohol abuse or and specifications and will furnish progress reports and alcoholism;(g)523 and 527 of the Public Health such other information as may be required by the Service Act of 1912(42 U.S.C.290 dd-3 and 290 ee- assistance awarding agency or State. 3),as amended,relating to confidentiality of alcohol and drug abuse patient records;(h)Title VIII of the 6. Will initiate and complete the work within the applicable Civil Rights Act of 1968(42 U.S.C.3601 et seq.),as time frame after receipt of approval of the awarding amended relating to nondiscrimination in the sale, agency. rental or financing of housing;(i)any other nondiscrimination provisions in the specific statute(s) 7. Will establish safeguards to prohibit employees from under which application for Federal assistance is being using their positions for a purpose that constitutes or made;and 0)the requirements of any other presents the appearance of personal or organizational nondiscrimination statute(s)which may apply to the conflict of interest,or personal gain. application. Standard Form 424D(Rev.7-97) Previous Edition Usable Authorized for Local Reproduction Prescribed by OMB Circular A-102 11. Will comply,or has already coi --d,with the Natio 'environmental Policy Act of 1969(P.L.91- requirements of Titles II and III of the Uniform 190)and Executive Order(EO) 11514;(b) Relocation Assistance and Real Property Acquisition notification of violating facilities pursuant to EO Policies Act of 1970(P.L.91-646)which provide for fair 11738;(c)protection of wetlands pursuant to EO and equitable treatment of persons displaced or whose 11990;(d)evaluation of flood hazards in flood plains property is acquired as a result of Federal and federally- in accordance with EO 11988;(e)assurance of project assisted programs. These requirements apply to all consistency with the approved State management interests in real property acquired for project purposes program developed under the Coastal Zone regardless of Federal participation in purchases. Management Act of 1972(16 U.S.C. 1451 et seq.);(f) conformity of Federal actions to State(Clean Air) 12. Will comply with the provisions of the Hatch Act(5 Implementation Plans under Section 176(c)of the U.S.C. 1501-1508 and 7324-7328)which limit the Clean Air Act of 1955,as amended(42 U.S.C.7401 et political activities of employees whose principal seq.);(g)protection of underground sources of employment activities are funded in whole or in part with drinking water under the Safe Drinking Water Act of Federal funds. 1974,as amended(P.L.93-523);and(h)protection of endangered species under the Endangered Species Act 13. Will comply,as applicable,with the provision of the of 1973,as amended(P.L.93-205). 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 16. Will comply with the Wild and Scenic Rivers Act of the Contract Work Hours and Safety Standards Act(40 1968(16 U.S.C. 1271 et seq.)related to protecting U.S.C. 327-333)regarding labor standards of federally components or potential components of the national assisted construction subagreements. wild and scenic rivers system. 14. Will comply with flood insurance purchase requirements 17. Will assist the awarding agency in assuring of Section 102(a)of the Flood Disaster Protection Act of compliance with Section 106 of the National Historic 1973(P.L.93-234)which requires recipients in a special Preservation Act of 1966,as amended(16 U.S.C. flood hazard area to participate in the program and to 470),EO 11593 (identification and protectionof purchase flood insurance if the total cost of insurable historic properties),and the Archaeological and construction and acquisition is$10,000 or more. Historic Preservation Act of 1974(16 U.S.C.469a-1 et seq.). 15. Will comply with environmental standards which may be prescribed pursuant to the following: (a)institution of 18. Will cause to be performed the required financial and environmental quality control measures under the compliance audits in accordance with the Single Audit Act Amendments of 1996 and OMB Circular No.A- 133,"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. SIGNATURE OF AUTHORIZED CERTIFYING OFFICIAL TITLE APPLICANT ORGANIZATION DATE SUBMITTED SF424D(Rev.7-97)Back INSTRUCTIONS FOR C" IPLETION OF SF-LLL,DISCLOSURE -F 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 filing,pursuant to title 31 U.S.C.section 1352. The filing 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 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 followup 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 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 subawardee of the prime is the 1"tier. Subawards include but 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 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 I (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 10(a). Enter Last Name,and Middle Name(MI). 11. The certifying official shall sign and date the form,print his/her name,title,and telephone number. According to the Paperwork Reduction Act,as amended,no persons are required to respond to a collection of information unless it displays a valid OMB Control Number. The valid OMB control number for this information collection is OMB No.0348-0046. Public reporting burden for this collection of information 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 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 OMB ASCLOSURE OF LOBBYING ACTIV, _ES Complete this form to disclose lobbying activities pursuant to 31 U.S.C. 1352 0348-0046 (See reverse for public burden disclosure.) 1.Type of Federal Action: 2.Status of Federal Action: 3.Report Type: a. contract a. bid/offer/application a. initial filing b. grant b. initial award b. material change c. cooperative agreement c. post-award d. loan e. loan guarantee For Material Change Only: L loan insurance year quarter date of last report 4. Name and Address of Reporting Entity S. If Reporting Entity in No.4 is a Subawardee,Enter Name and Address of Prime: Congressional District,if known: Congressional District,if known: 6. Federal Department/Agency: 7.Federal Program Name/Description: CFDA Number, if applicable: 8. Federal Action Number,if known: 9. Award Amount,if known: 10. a. Name and Address of Lobbying Registrant b. Individuals Performing Services(including address if (if individual,last name,first name,MI): different from No. IOa) (last name,fast name,MI): 11. Information requested through this form is authorized by title 31 Signature: 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 Print Name: 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 Title: 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 Telephone No: Date: failure. Federal Use Only Authorized for Local Reproduction Standard Form LLL(Rev.7-97) Attachment A PROGRAM ELEMENT (TASK) BUDGET Attach to the application a Program Element Budget (budget by task) based on guidance provided by your EPA Project Officer. The attachment may be a typed list or a computer printout. The Program Element Budget (task budget) and the Object Class Budget (personnel, fringe benefits, travel, etc. ) should have the SAM total dollar amount as they are for the same work (just different budget estimates) . Be sure to include indirect costs in the Program Element Budget if you included indirect costs in the Object Class Budget - SF-424A, Section B. Indirect costs should be incorporated into the cost of each task or program element. TEERE IS NO FORK FOR THE PROGRAM ELEMENT BUDGET (BUDGET BY TASK). TYPE ON PLRIN BOND OR USE A COKPUTER PRINTOUT. THE OBJECT CLASS BUDGET FORM (PERSONNEL, FRINGE BENEFITS, TRAVEL, EQUIPIU;NT, INDIRECT COST, ETC. ) IS FOUND ON PAGE 2 OF THE SF-424A. Attachment B LIST OF CONTACT PERSONNEL Project Manager (Contact Person) IF Different From Authorized Official Who Signed Application: Name Phone (Incl. A/C) Title Street Address or P.O. Box City State Zip Code Grantee Fiscal Officers Name Phone (Incl. A/C) Title Street Address or P.O. Box City State Zip Code Fiscal Contact Person _XF Different From Fiscal Officers Name Phone (Incl. A/C) Title Street Address or P.O. Box City State Zip Code Attachment C SAMPLE FORMAT OF STAFFING LIST To Be Included with Application Number of Annual Personnel Work position Title Positions Salary Rate Cost Years CURRENT STAFF Division Director 1 Included In Indirect Costs 0.02 Chief Engineer 1 Included In Indirect Costs 0.25 District Engineer V 4 $ 32,000 $ 64,000 2.0 District Engineer III 3 25, 000 37,500 1.5 Engineering Tech. IV 3 .15,000 30, 000 2.0 Engineering Tech. V 5 18, 000 181000 1.0 Secretary III 1 15, 000 15,000 1.0 Secretary II 2 12, 000 6,000 0.5 VACANCIES District Engineer III 4 25,000 100,000 4.0 Engineer Tech. IV 2 15,000 30,000 2.0 Engineer Supervisor 1 40,000 20.000 0.5 $320y5OO* 15.95 *Should agree with Total Personnel in Section B Budget. Note: This format is a sample and may not fit your staff titles, salaries, etc. Please use your agency's designations and rates. INCLUDE ONLY AGENCY STAFF THAT WILL BE UTILIZED IN WHOLE OR IN PART ON TRIO GRANT PROJECT. AGENCY STAFF THAT WILL NOT WORK ON THIS GRANT PROJECT SHOULD NOT BE INCLUDED IN THE STAFFING LIST SUBMITTED WITH THE GRANT APPLICATION. Time-and-distribution-of-effort records must be kept for audit purposes, by pay period, for those who spend less than 1000 of .their time on the project. Attachments D & E Attachment D: OTHER 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 E: EQUIPMENT Equipment is defined as tangible, nonexpendable, personal property having a useful life of more than one year and an acquisition cost of $5,000 or more per unit for State, .Local Governments and Indian Tribes and $10,000 or more per unit for Universities and Non Profits. ATTACH A LISTING OF ANTICIPATED JIOUIPMENT PURCHASES FOR THIS PROJECT. The equipment list should identify the item, show the estimated cost of the item, and give a BRIEF description of its use on the project. SUPPLras Supplies are defined as "tangible personal property other than EOUIPMBNT. ATTACH A LIST THAT IDENTIFr THE GENERAL NATURE OF THESE ITEMS (DESK, CBAIRS, FAX MACHINE, ETC) . Grantees are encouraged to use U.S. Government excess and supply sources such as GSA auctions, etc. Attachment F Instruction to Applicants EVIDENCE OF COMPLIANCE WITH INTERGOVERNMENTAL REVIEW Executive order 12372, "Intergovernmental Review of Federal Program," established a new intergovernmental review process which provided state an opportunity to develop a flexible state-administered process of intergovernmental consultation with State, regional, areawide, and/or local planning agencies. A state is not required to establish a state process or to select all of EPA's assistance program to be reviewed through the state process. However, the Executive order and EPA's regulation at 40 CFR Part 29 also implemented two other existing Federal statutes requiring intergovernmental consultation with state and local elected officials. WHERE A STATE PROCESS HAS BEEN ESTABLISHED The EPA program for which you are applying may be subject to your State's intergovernmental review process and/or the consultation requirements of Section 204, Demonstration Cities and Metropolitan Development Act, and/or section 401, Intergovernmental Cooperation Act. You must contact your state clearinghouse/single Point of Contact to find out if the program was selected for coverage by the state process and to receive information about your State's review process requirements and procedures. Include with you application to EPA any information received from the State clearinghouse/SPOC. This should include their comments and the state Application Identifier for Block #2 on the S.F. 424. If you do not have the SAI number, be sure to complete Block #16 on the S.F. 424. WHERE A STATE PROCESS EXISTS BUT EXCLUDES A COVERED PROGRAM OR WHERE A STATE PROCESS DOES HOT EXIST Even though the functions of your State Clearinghouse/single Point of Contact may have been terminated or do not cover all program eligible for review through the state process, the EPA program for which you are applying may be subject to the consultation requirements of section 204, "Demonstration Cities and Metropolitan Development Act," and/or section 401, "Intergovernmental Cooperation Act." If so, you must notify areawide metropolitan or regional planning agencies and/or general government units authorized to govern planning for the locale of your project of your intended application. Your application to EPA must be accompanied by the comments and recommendations of these planning entities and by a statement from you that such comments and recommendations have been considered prior to formal submission of the application to EPA. Complete the data sheet below and mail to EPA to establish the start date for the comment period. EPA WILL HOT PROCESS YOUR APPLICATION WITHOUT EVIDENCE OF YOUR COMPLIANCE WIT][ EITHER PROCESS DESCRIBED ADM INDIAN TRIBAL GOVERNMENTS ARE EXEMPT FROM INTERGOVERNMENTAL REVIEW REFER TO THE DATA SHEET FOLLOWING THESE INSTRUCTIONS STATE SINGLE POINTS OF CONTACT Refer to ATTACSMENT F for additional information concerning the intergovernmental review process. ARKANSAS Tracy L. Copeland, Manager State Clearinghouse Office of Intergovernmental Service Department of Finance and Administration 1515 West 7th Street, Room 412 Little Rock, Arkansas 72203 (501) 682-1074 LOUISIANA See attachment F for instructions NEW MEXICO Bob Peters, Single Point of Contact New Mexico State Clearinghouse DFA State Budget Office Bataan Memorial Bldg. , Room 190 Santa Fe, New Mexico 87503 (505) 827-3872 OICLAHO]fA See attachment F for instructions TEXAS Tom Adams Asst. Director for Intergovernmental Relations Office of State Federal Relations 201 East 14th Street; Suite 507 Austin, Texas 78701 (512) 463-1803 Revised 3/14/94 COMPLETE THIS DATA SHEET AND MAIL TO EPA, REGION 6, DALLAS TO ESTABLISH THE START DATE FOR INTERGOVERNMENTAL REVIEW COMMENT PERIOD A. APPLICANT NAME: B. CATALOG OF FEDERAL DOMESTIC ASSISTANCE NUMBER AND TITLE: 66. (NUMBER) (TITLE) 1. Program Subject to State Process: YES NO 2. Application/Preapplication/Notice of Intent Sent To State Process On: (DATE) 3. Program Subject To Section 204: YES NO 4. 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 LATEST INDIRECT COST NEGOTIATION AGREEMENT It is EPA policy that indirect costs must be supported by an approved and current Negotiated Indirect Cost Rate Agreement or Cost Allocation Plan for indirect costs 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 cost 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 Agencies, Cost Principles and Procedures for Establishing Cost Allocation Plans and Indirect Cost Rates for Grants and Contracts with the Federal Government", (HEW, Dec. 2976 OASC-10) . An applicant may budget for indirect costs for a period not covered by the applicant's latest Negotiated Indirect Cost Rate Agreement or Cost Allocation Plan (e.g. no current rate at the beginning of the project period, or the current rate expires prior to the end of the project period) ; however, the indirect costs are budgeted amounts only and may not be charged or requested for reimbursement until such time as the applicant received an approved Negotiated Indirect Cost Agreement (State Agencies) . Local governments are required to prepare and retain a copy of their Cost Allocation Plan at the local government level, unless it submitted the Plan for review and approval by a cognizant Federal Agency, in which case the local government will receive an approved Negotiated Indirect Cost Agreement. Ron-profit institutions will prepare and establish indirect cost rates in accordance with OMB Circular A-122, and educational institutions will prepare and establish indirect cost rates in accordance with OMB A-88. Attach a copy of your LATEST Agreement with your cognizant agency if you plan to claim indirect costs on the project. Please attach a copy to EACH application. Your financial office will have a copy of the latest 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 shown in #22 of Section F. Indirect costs should be incorporated into the Program Element (task) Budget (Attachment A) . INDIRECT COSTS ARE NOT ALLOWABLE COSTS ON TECHNICAL ASSISTANCE GRANTS (TAGS) . i Attachment H CERTIFICATION REGARDING DEBARMENT, SUSPENSION AND OTHER RESPONSIBILITY MATTERS - EPA FORD 5700-49 Each application must include a current EPA Form 5700-49, "Certification Regarding Debarment, Suspension, and Other Responsibility Matters" included in the application kit. This certification is required in accordance with 40 CFR PART 32. Additionally, recipients of EPA assistance awards must 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. ATTACHMENT H A EPA Project Control Number `fir/E PA 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 principals: (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 proposal been cornicted of or had a civil 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 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 (1) b) of this certification;and (d) Have not within a three-year period preceding this application/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 IS 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 ❑ I am unable to certify to the above statements. My explanation is attached. EPA Form 5700-49 (11-88) 'ow----- Instructions Under Executive Order 12549, an individual 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 grant, 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 details, see 40 CFR 32.510, Participants' responsibilities,in the attached regulation. Where To Submit 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 contract. Each prospective subcontractor must submit a completed certification or explanation to the prime contractor for the project How To Obtain Forms: EPA includes the certification form, Instructions,and a copy of its implementing regulation (40 CFR Part 32) in each application kit. Applicants may reproduce these materials as needed and provide them to their prospective 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 & Debarment Division (3902F) U. S. Environmental Protection Agency 401 M. Street, SW Washington, DC 20460 Telephone:202/260-8025 EPA Form 5700-49(11-88) Thursday May 26, 1M Part Vii Environmental Protection Agency 40 CFR Part 32 abann.�t and under EPA Asslslanc., Loan and e.n m Program Federal Register / Vol. 53. No. 102 / Thursday, May 21L 19M / Notices ENVIRONMENTAL PROTECTION Federal Acquisition Regulation(FAR). EPA this authority is vested in the AGENCY 48 CFR Subpart 9.4.it is EPA's policy, Director.Grants Administration for purposes of rational and 01cient Division.as the debarring and 40 CFR Part 32 management. to integrate its suspending official.Accordingly.EPA is (FRL-235") sdnlini3tration of these two adding subparagraph(1)to complementary prugram3. I ___315(a)to reflect this Robert strrrreun'Mill er or David S�T�' One commewer sought 6trifii ration responsibility. Robert Meunier or David Siena.at(202) about v.hether a person could be The proposed common rule contained 475-MM debarred or suspended for violating a certification requirement which Aoorrtow►L stsMmrrAaty en%ironmental laws.An environmental encompassed a range of important sram"THM On May X low.the violation could give rise to a debarment information from which to determine the Office of Management and Budget or suspension action under several of current eligibility or potential (OIL),issued Governmeotwride the causes at 13913M,where there is a responsibility of the prospective guidelines governing debarment and reasonable connection between the participant In the final common Wile, suspension by Executive Bracts• offense committed and future them are separate Certifications.oars for agencies under nonproarsemsat performance under an EPA assistance primary covered traneactiams(eg.. programs.On October X 1111117.many program.For example.a conviction of assistance recipients)and ons for bwrer- agencies joined in proposing a common civil judgment for falsely certifying Her covered traaeaeOms(Ni• rule to implement the guidelines.TU hazardous waste disposal manifests contractiom subcontractors,supphsrs} Fnvironmental Protection Agency(EPA) could result In debarment under The Iowa-tier eartifiritim is an also published':•opasd rvh at that 132.3*sX:s}The msuthooasd abbreviated version of the prima •-der lima.but not as part of the common rule disposal of hazardous wastes.such se eertlfieatlon. (s2 Fit 3trii..:)•Sine than.OMB has through"midnight damping".eoald Became EPA is most vulnerable to amended the guidelines and determined result in debarment under ll 391 (04) waste.fraud or abuse at the lower-tier that all agencies will join the common or(d).Failure to comply with level,EPA Is expanding the certification rule in order to ensure greater environmental requirements: for lownrr`tia participants by requiring uniformity.Comments on EPA's incorporated into a public contract could them to certify to much of the same proposed rule were coneidered in result in debarment under 132.3t15(b). information provided in the artifiathm preparing a final common rule and am The common rule requires a bearing submitted primary rMcipents. addressed in the common preamble. only when then exists a genuine A 13)and EPA is adopting several additions to dispute as to facts material to a subparagraphs(a) (b)and(cl in being the common rule.Under the Common proposed debarment or suspensieo.SPA added to the lower-der eerdfiaation rule.agencies have the option to insert is adding language to It 3s and form. additional agency-specific examples to 41Z permitting is respondent to Ust of&&Jocb In 49 CFR Part 32 the definitions.The definitions of request a hearing regardless of whether "debarring official-and"suspending there are"material acts"is dispute. Administrative practice and official"under the common rule are This reflect EPA's policy and currant procedure.Assistance programs— being amended by adding practice of affording all respondents the environmental protection.Techoinl subparagraphs(g)(3)and(tx3)to same procedural options for the assistance I_-jas to designate the Director. resolution of pertiinnsenptaiisssiues.A request Im M,Tbous. Grants Administration Division as the for till subject two denial ends CHL boweva,Is Agency's debarring and suspending ° Doled:May It tin official.In addition,EPA Is amending 13Z412(b)(i)(iij where pending or Tide 40 of the E.ode of Federal the definition of"Prindpal"at contemplated legal proceedings would 105(p)by adding bid and be prejudiced Regulations Is amended asset forth m proposal estimator and preparers as an provision the common rule maims no below. example• provision for post-determinstton review 1.Part 32 Is revised to reed as set agency-ape 1 (a)(2Riv)and of debarment or suspension decisloos. forth at tbreod of this doamen Sections t_�200(e)(s)of the final common rule EPA is opting to arias its orQeat PART exempt transactions pursuant to addindeterg I t 32 review 2.42%Proce rues DEBA�t3T AM ��08W national or agency-eeoogrized aging I!party to and the whki emergencies or disasters from the eEect suspending a pa�trequest debaerlry/ of a suspension or debarment This decision�te debar a suspend doe to an der a ��� + exemption does not apply to sm transactions under say programs artled error of fact or law.SPA Is also addb* wino out b EPA.Accordingly. II 32 tlo sect 324rvy to ew sif paemit Utos 132.10(a to c1)(A)and!3t2optlImL i) �deciskme by the Mrs d SLiu P0111F. are added to clarify these exemptions. EPA's Office of A'dmhdstmdm opera• In special cases.EPA is authodzsd to written appeal filed within 30 plsodar permit a debarred suspended or days of receipt of the deburiog sir Debent 4 sespmAm voluntarily excluded person to - . ding oMdars determ}mgl,we 3L= >�tytble lsesam participate in a particular covered ' note that several aommeaft to do SLM reg"t"y m1't'rsn. transaction by gran ft an axaption propowd eommoe tale reaommeeded amCs aides.Old 6&uNogwm under I= 15. that m ddmiaistndye review peoersw am Faun baiass b reeMdism EPA is adding subparagraph(d)-to be .132.115 stating that while Part 32 dos MW common role Mike�'last flo6w C—Down s>Z not apply to&reet Federal procurement the"Agency"Is satherfaed b w!!Ie am Cenral. activities,which are governed by the debarment and sospettim sedom At UM Caeres for deb mNL Federal Registtw / Vol. S3. No. 102 / Thursday. May 26, low / Notices 32.310 Procedures. (3)Providing for the listing of (S)Debarring official.An official 3z.311 Irvestigauon and referral. debarred and suspended participanta. authorized to impose debarsreat The 31312 notice of proposed debarment. participants declared inaligible(see debasing official is eitbw.. 3z.313 Opporttuury to contest proposed definition ci"ineligible"in I—.195(ip. (1)The ager47 beet or debarment, anparticipants who have voluntarily (2)An ofIldal fowl 32.314 Debarring official's decision. and � b7 dw' 3:.315 Settlement and voluntary exclusion excluded themselves from participation agency heed. 32.320 Period of debarment. in covered bwaacdons (3)The Dinetor,Grul" 32325 scope of debarment (d)Setting forth the consequences of a AdmInfstration Disdakee,is tEe 3z.33o Reconsideration debarment suspension.determina>bouof eU&adsaddebavdwgaMyl, 32.335 Appeal. ineligibility.or voluntary exclusion:and (b)Gtdiefterrt Wm6gea na1wa Subpart D--stsapenarat (5)Offering such other gmdance as criminal osse.As fidbewtlaa or 32.40a General. necessary for the affective other Bli 1W 'd R 'b 32.405 Causes for suspension implementation and administration of charx"a affessatiiM 32410 Procxdurea, the governmentwide system tRvietz aw arse aQleet s ealsioWML 32.411 Notice of muspensias (c)Although these regulations cover M ANKpRlw--a -a I yes 31412 Opportunity to Contest sospeasian the listing of ineligible participants and par&dpatiou be lbinillt 32.413 suspending owl's dsaiea the effect of such listing.they do not 32.415 Period of w.pentlnd programs ptarsuant to a dNmnioatlon of U420 Scope of evepeaaioa prescribe policies and procedures inel*Lbilfty undo statutory.execative 3t4n Reeonsideratfea governing declarations of ineligibility. order.or regulatory audmu ty.other than 3z430 Appeal 32n06 OafYrltery. Executive Order 1250 and its agency np (a)Adequate evidence.Information exclud entLrtg Agenq era/pseeriraele excluded prrwrant�vis-Bacon 3x.soo GSA sufficient to support the reasonable Act and ib' lemeeting nwkt oms. belief that a particular act or omission u3n EPA taspoe sitrWtim has ocearsed. . the equal yment opportunity acb =310 Partldpaats'respons0 did a and executive orders►or the (b)Af jitio4.Persons are affiliates or and protection acts and Appastifix obi each another it,directly or indirectly. executive orders.A person Is ineligible Reeptiastailift strew-ma o control the other,y C*VWW either one ter,or,.a third Denson hen the power to when the determination at ineligibility pens. Teatwdtr controls of has the prune(to eaatrel pus ispate in mote than one covat Appeesills i-Cietl6asllas wasting both.Indicia of control i cis&but an Debasm t��ti �r not limited to k0srieckiag msaegessaat tramac�ad r+octsisdiggs,Any ciimiad w a COsa'� or ownership.identity of interest among family members.shared fatdlftlp P or m4 civil judicial Aulbaly:Rnasuse Oaten UM 7 USC and equipment.common use of P f to walla the Federal 138 at u u.s.G arse(et err ua.G �� government a a State of lid �- employees,or a business entity vernment or asi-governmental 3oof.e�rest.sue.tiro►at sWseq� m YSC organised following the suspension or so fa a party.7be term includes debarment of a ptaeeas which has the a als fives atAd' same or similar management. p( Nagptroanremeat List rm portion Subpart A--Gatteral ownership,or principal employs"ea of the List of Pl v6st Excluded Jtom 13Z1oo t>titet the suspended.debarred imaligible.or FederralPrroevressetrt er voluntarily excluded person. iy nvrauttmest eownhad (a)Executive Order izH9 protides (c),��,.Any executive maintained and distributed by iiLLee that. to the ex:ent permitted by law, department.mltary department or General gw4{ag AdmWstr A) Executive departments end agencies defense agency or other agency of the containing the camp and other shall participate in a governmentwide executive branch excluding the information about parsons who have system for nonprocurement debarment independent regulatory agencies. bean a)urred,suspended,of and suspension.A person who is (d)Ciril fixo net Thit depodffes of voluntarily excluded under Executive debarred or suspended shall be a civil action by say court of compelrad Order 2250 and these regulations,and excluded from Federal financial and Jurisdiction.whether entered by verdict. those who have beam determined to be nonfinancial assistance and benefits decision.settlement stipulation.or ineligible. under Federal programs and activities. otherwise treating a civil liability for the 0)Notitag.A written communication Debarment or suspension of a wrongful acts complained oh or a final served in person or seat by cwWkd. participant in a program by one agency determination of liability ender the mail.return eecelpt tad.ere ifs shall have governmentwide effect. Program Fraud dvil Remedies Act of equivalent,to the last ad&m of (b)These mrdstiong Implement IM(31 U.S.C.3e121asj. a party.its"tilted counsel.Its agent eection 3 of Executive Order lttittl and (e)Conviction.A Judgment Of for service of proem or any parts m the guidelines promulgated by the Office conviction of a advAnal offense by any officer,director.owns(.or foiot veatpot of Management and Budget wider court of competent jurisdiction.wbethsr of&@ party.Nodes,if mddiveeabr. section a of the&ecod"Order by. entered upon a verdict or a picw shall be considered In bave bean (1)presesibieg the propsms and including a plea of nob tmntendaee. received by the addressee Bus drys activities that are coveted by the (()Debarment An action takers by a after bdag properly sent as the ho governmentwide system: debarring official m accordance With address knows by the egsqv. (2)Prescribing the govemmentwide these regulations to exclude a pnrsoe (m)AQr lk4stsnt:Any penis robs criteria and governmentwide minimum from participating in covead submits a Deposal Lan.enters Raton or due process procedures that each transactiobs.A person so 01,14 d is reasonably essay be expected to onion agency shall use. .'debarred.- into a covered tranactloa.This has also include any pteea- who acts m Federal Register / Vol. 53. No. 102 / Thunday. May 21L 19U / Notices behalf of or is authorized to commit a (u)Suspension. An action taken by a fixed at 10 U.S.C.2304(g)and 41 U.S.C. partiopant in a covered transaction as suspending official in accordance with 253(g)(currently S25.00o)under a an agent or representative of another these regulations that immediately primary covered transaction. participant. excludes a person from participating in (C)Any procurement contract for (n)Person.Any individual. covered transactions for a temporary goods or services between a participant corporation.partnership.association, period.pending completion of an and a person under s covered unit of government or legal entity. investigation and such legal.debarment. transaction.regardless of amount.under however organized.except foreign or Program Fraud Civil Remedies Act which that person will have a critical gevernments or foreign governmental proceedings as may ensue.A person so influence on or substantive control over entities,public international excluded is"suspended." that covered transaction.Such persons organizations,foreign government (v) Voluntary exclusion or voluntarily are: owned(in whole or in part)or controlled excluded.A status of nonparticipation (1)Principal investigators. entities.and entities consisting wholly or limited participation in covered ( I Provider. of federal;-required or partially of foreign governments or transactions assumed by a person audit services foreign.governmental entities pursuant to the terms of a settlement (2)Exceptions.The following (o) of tics e"idsam (w)EPA.Fhvironmenal Phetectlm transactions an not tmvand: Proof by iofocmatim that compared Ap4 (i)Statutory entitlements or with'tbat opposing it leads to the (x}I�<gesrcj hemd Ai■taisUminraf• mandatory awards(bat not subtler conclusion iMt the fact at issue is more FavleenmenW===tendon AW,,Mb. awards thereunder which are not probably true than not themselves mandatory),incFAing (p)Prmc4W.Officer,director.owner. 132-1 to Cover"& depoa.iad fundr faaured by tas Federal partner,key employee,or other parson (a)The"regulations apply to al! Goveeemant within a participant with primary persons who have participated.an (li)Direct awards to foesipa management or supervisory cucrently Participating or may govemmsnfs or public intarnadmai responsibilities;or a person who has a reasonably be expec ga ted to participate in oratsaUOO16 er Uaneactloos with critical influence on or substantive transactions under Federal foreign goveeaments or torah control over a covered transaction. eonprocurement programs For purposes govemm omi antlWs6 pews whether or not employed by the of these regulations such tranaactione lnteraatbaal ogd{=tAL— - participant.Persons who have a critical will be referred to as"covered government owned(in whole or in part) influence on or substantive control over transactions." or controlled entities,entities consisting a covered transaction are: who or 1)Principal investigators. [i)Covered tnvrtsor:tioa For purposes � W�i117'of foreign of these regulations,a covered governments or foreign governmental (211hd and proPad'smtisattoss end transaction is a primary covered entitles: Pn/dmWs- transaction or a lower tier covered (III)Benefits to an hmHjWN i+as a (q)Proposal A solicited or unsolicited transaction.Covered transactions at any Personal entitlement withost regard to bid.application.request.invitation to tier need not involve the transfer of the individual's present responsibility consider or similar communication by or Federal funds (but benefits received in an individual's on behalf of a person seeking to (I)PrLnary covered tr+aosocdwL business capacity are not excepted); participate or to receive a benefit Except as noted in paragraph(axe)of (iv)Federal employment; directly or indirectly,in or under a this section.a primary covered (A)Fear the psrpose of this paragraph, covered transaction transaction is any nooprocurement no transactions under EPA assistance (r)Respondent A person against transaction between an agency and a programs are dammed to be pursuant to whom a debarment or suspension action person.regardless of type,including: agency-recognized emergencies or has been initiated grants.coopamtive agreements. disasters. (s)State.Any of the States of the scholarships,fellowships.contracts of (v)Transactions pursmsit to national United States,the District of Columbia, assistance.loans.loan guaranteft or agency-recognized emergencies or the Commonwealth of Puerto Rico,any subsidies.Insurance,payments for disasters; territory or possession of the United specified use.donation agreements and (vi)Incidental benefits derived from States.or any agency of a Statei any other nonprocurement transactions ordinary governmental operations;and exclusive of institutions of higher between a Federal agency and a person. Nil)Other i weactionre where the education.hospitals,and units of local primary covered transactions also application of these regulations would government.A State instrumentality will include those transactions spedaIIy be prohibited by law. be considered part of the State designated by the U.S.Department of (b)Relationship tq other sectiom government if it has a written Housing and Urban Development in This section describes the types of determination from a State government such agency's regulations governing transactions to which a debarment or that such State considers that debarment and suspension suspension unaer the regulations will instrumentality to be an agency of the (a)Loaner tier covered trvnsocUon.A apply.Subpart B."Effect of Action." State government. lower tier covered transaction is: !-42 9%"Debarment or suspension." (t)Suspending official. An official (A)Any transaction between I a sets forth the consequences of a authorized to impose suspension.The participant and a persow other than a debarment or suspeaskmL hose suspending official is either. procurement contract for goods or consequences would obtain only with ji)The agency head.or services,regardless of type,under a respect to participants and principals in (2)An official designated by the primary covered transactiom the covered transactions and activities agency head. (B)Any procurement contract for drbed in!-2110(4 Sections (3)7U Director.Grunt~ goods or services between a participent Z&"Scope of debarment,"and Adminisbatlen DMOM iatlss add=a person,regardless of'type. _3Z.420,"Scope of suspension."govern authorized sosipmWirtjGMdML expected to equal or exceed the Federal the extent to which a specific procurement small purchase threshold participant or organizational elements of Federal Register ( Vol. 53. No. 102 / Thursday. May 28, 190 / Notices a participant would be automatically (b)Loser tier covered transactions. participate in a particular covered included within a debarment or Except to the extent prohibited by law, transaction upon a written suspension action.and the conditions persons who have been debarred or determination by the agency head or an under which affiliates or persons suspended shall be excluded from authorized designee stating the associated with a participant may also participating as either participants or reason(s)for deviating from the be brought within the scope of the principals in all lower tier covered Presidential policy established by action. transactions(see f 3?110(a)(i)(ii))for Executive Order 12549 and ;3z.mp of (c)Relationship to Federal the period of their debarment or this rule.However,in accordance with procurement activities.Debarment and suspension. the President's stated intention in the suspension of Federal procurement (c)Exceptions. Debarment or Executive Order,exceptions shall be contractors and subcontractors under suspension does not affect a person's granted only infrequently.Exceptions Federal procurement contracts are eligibility for. shall be reported in accordance with covered by the Federal Acquisition (1)Statutory entitlements or j,%-5G5(a). Regulation(FAR),48 CFR Subpart 9.4. mandatory awards(but not subtier (a)The DirectoL Grants f 32.tt! PONCY. awards thereunder which are not Administration Division,is the oflidal (a)In order to protect the public themselves mandatory),including authorized to grant excepBosts. interest,it is the policy of the Federal deposited funds insured by the Federal Government to conduct business only Government: ftr Conunuadon oteerwe0 with responsible persons.Debarment (2)Direct awards to foreign and suspension are discretionary governments or public international (a)Notwithstanding the debarment. actions that.taken in accordance with organizations,or transactions with suspension.determination of Executive Order I2s49 and these foreign governments or foreign ineligibility,or voluntary exclusion,of regulations, are appropriate means to governmental entities,public any person by an agency,agencies and implement this policy. international organizations.foreign Participants may continue covered (b)Debarment and suspension are government owned(in whole or in part) transactions in existence at the time the serious actions which shall be used only or controlled entities,and entities person was debarred.suspended, in the public interest and for the Federal consisting wholly or partially of foreign declared ineligible,or voluntarily Government's protection and not for governments or foreign governmental excluded.A decision as to the type of purposes of punishment.Agencies may entities: termination action,it any.to be taken impose debarment or suspension for the (3)Benefits to an individual as a should be made only after thOrinvo causes and in accordance with the Personal entitlement without regard to review to ensure the propriety of the procedures act forth in these regulations.the individual's present responsibility proposed action. (c)When more than one agency has (but tnea benefits received o`n cap�kal's n�bre�ncies exten participantseoi � an interest in the proposed debarment orbusiness transactions other than no-am ids suspension of a person.consideration arW I4)Federal employment extensions)with any parson wkro ti shall be given to designating one agency (5)Transactions pursuant to national debarred suspended kwgok an, as the lead agency for making the or agency-recognized emergencies or voluntarily excluded,except as plow decision.Agencies are encouraged to disasters: in f 3_y 1L establish methods and procedures for (1)For the purposes of this paragraph, coordinating their debarment or no transactions under EPA assistance f 322M >Fattura to ad a e M suspension actions. programs are deemed agency-recognized ' hA'" (d)While Part 32 does not apply to emergencies or disasters. Bxeeppt as permitted under!1.b -80 direct Federal procurement activities, (8)Incidental benefit derived fiom or; of those eagakatls■a a which are governed by the Federal ordinary governmental operations;and business ppannt a ar�Wlmowltt�yba en Acquisition Regulations(PAR)at 48 CYR (7)Other transactions where the Subpart 9.4.it is EPA's policy to application of these regulations would with a person who is integrate its administration of these two be prohibited by law. euapeaded.or with a wsoe whs Y complementary debarment and f 32.2M ineligible for or voluntarily excluded suspension programs. tObM Pweorns. from that covered transaction,Violation Persons who are ineligible,as defined of this restriction may result in Subpart B—Efhet o1 Action in f.1-2—iosy),are excluded in disallowance of costs.annulment or f? accordance with the applicable termination of award issuance of a stop Oeewnnet o►suspwrslorr` statutory,executive order,or regulatory work order,do (a)Prim covered authority. d ry other remedies.�Apsfs. bwon'or a M' emnaoetiona. A Except to the extent prohibited by law_ f 3L210 yokn*ny exckalm participant may rely upon the Persons who are debarred or suspended certification Ofa Prospective participant shall be excluded from primary txrtye Persons who accept voluntary In a lower tier covered transaction tb transactions as either participant a exclusions under; .ns an it and its Principals are not debarred principals throughout the executive excluded in accordance with the terms suspended,Ineligible.or voluntarily branch of the Federal Government for Of their settlements. EPA ghaM and excluded from the covered transaction the period of their debarment or Participants may.contact the oeq W (see Appendix B),unless it knows that suspension.Accordingly,no action agency to ascertain the extent of the certification is erroneous.An agency shall er.!er into primary covered cy the exclusion. has the burden of proof that such, transactions with such debarred or f 32.tt8 E ov a Participant did knowingly do business suspended persons durirtg such period. f>'A with such a person, xcept a permitted pursuant to permitting a debarred an uereeptloa 1� voluntarily excluded person to er Federal Register / Vol. 53. No. 102 / Thursday. May X 19M / Notices Subpart C—Debarment (3)Failure to pay a single substantial (1)If the respondent desires a hearing. debt.or a number of outstanding debts it shall submit a written request to the 4 32-300 GeneraL (including disallowed costs and debarring The debarring official may debar a overpayments.but not includ period ovAng exceptwithin the a day Y including sums period following receipt of the notice of person for any of the causes in §—U305, owed the Federal Government under the proposed debarment. u"procedures established to Internal Revenue Code)owed to any (b)Additionlprocesi&W as so 4 4 M—A mo through J-2.314.The Federal agency or instrumentality, disputed ma&wW faa s.(1)to sctions existence of a cause for debarment, provided the debt is uncontested by the not based upon a conviction or civil however. does not necessarily require debtor or,if contested.provided that the )udgmest.if the debanmg official Sods that the person be debarred the debtor's legal and administrative that the reepoodwes sabnissioa in seriousness of the person's acts or remedies have been exhausted:or opposition raises a genuine dispute over omissions and any mitigating factors (4)Violation of a material provision of facts material to the proposed shall be considered in making any a voluntary exclusion agreement entered debarment,respandent(s)shall be debarment decision. into under 4 J-2-31S of of any afforded an opportunity to appear with f? Can" settlement of a debarment or suspension a representative,sebnut documentary action. evidence.present witnesses,and Debarment may be imposed in (d)Any other cause of so serious or confront any vritness the agency accordance with the provisions of compelling a nature that it affects the presents. fl 4 32•300 through J-9.314 for. present responsibility of a person. (a)Conviction of or civil judgment for. (2)A traascabed record of eat !2UIO Procedures. additional proceedings shall be made .(i)Commission of fraud or a criminal available at cost to the ndmt,u offense in connection with obtaining. EPA shall process debarment available at co the respondenteres and the attempting to obtain.or performing a actions as informally as practicable, requagreement waive the agency.by mates! public or pnve.z agreement or consistent with the principles of requirement for a transcript.rgime transaction; fundamental fairness,using the (2)Violation of Federal or State procedures in lilt L.311 through f 3L314 Debarrtrto oMidal'e deoteWL antitrust statutes.including those 3Z.324. proscribing price fixing between (a)No odditlonal proceedings competitors.allocation of customers 31311 Investigation andntenwL necessary.In actions based upon a Information cone the existence conviction or civil judgment,or in which between competitor,and bid rigging: �� there is no genuine dispute(3)Commission of embezzlement, o`a cause for debarment from any theta.the deb official shell make al theft.forgery,bribery,falsification or source shell be promptly reported. decision d the basis official all the destruction of records,making false i,restigated and referred.when re nistrativ mad cord. information in the adie statements,receiving stolen property. appropriate,to the debarring official for including any s he n made the making false claims,or obstruction of consideration.After consideration,the respondent.The decision shall be made justice:or barring official may issue a notice of (4)Commission of any other offense proposed debarment. within 45 days-after receipt of any information and argument submitted by indicating a lack of business integrity or business honesty that seriously and 4>Mt2 ttoUoe of proposed debermtartt the respondent.unless the debarring directly affects the present A debannrmt prooseding shall be official extends this period for good responsibility of a person. initiated by notice to the vesp indent cause. (b)Violation of the terms of a public advising (b)Additional pnweedirtgs necessary. agreement or transaction so serious as (a)That debarment is being (1)In actions in which additional to affect the integrity of an agency considered proceedings are necessary to determine program.such as: (b)Of the reasoaa for the proposed disputed material facts.written findings (1)A willful failure to perform in debarment in terms sufficient to put the of tad shall be prepared The debarring accordance with the terms of one or respondent on notice of the eoadrsct or official shall base the decision on the more public agreements or transectims: trsaaacdon(e)upon which It is based; facts as found tqg dwr with any (21 A bistory of failure to petfatm or of Ic)Of the cause(a)relied upon Hadar information and argument submitted by un"bA of me or j 92 X5 for pwpmq debarment: the respondent and any other more public agreements (d)Of the�provisions of I-3A.311 information In the administrative-amrd. or through I J12L.314, and any other (2)MW debar ft amelal say zsfar (3)A willful violation of a statutory or EPA procedures,if applicable. disputed anatarialUM to aaot>>sr regulatory provision or requirement governing debarment decisionmaking o®dal for fssdtnge eiAM L It@ applicable to a public agreement or and debarsiq a�dalmq as}d sew transaction. (e)Of the potential effect of a AndinaL wlnV e:is!reel, slier (c)Any of the following causes: debarment cally dslsmsiairaj them to in (1)A noaprocuretment debarment by arbitrary and capricious or clearly. any Federal agency taken before f 3L313 Opporttrrltlr to owust erroneous. October 1,i9w the effective date of primed d &,--° (3)The debarring official's decision these regulations,or a procurement (a)Submission in gpposidon,within shall be made ifter the eonclusim of the debarment by any Federal agency taken 30 days after receipt of the notice of proceedings with reeped to disputed pursuant to 48 CFR Subpart G* proposed debarment,the respondent facts. (2)Knowingly doing business with a may submit.in person.in writing,or (c)(1)Staedard of prwf-In tto► debarred suspeaded ineligible,or through a representative,information debarment action.the cause for : voluntarily excluded person.in and argument in opposition to the debarment must be established by a conrection with a covered transaction. proposed debarment preponderance of the evidence.When except as permitted in f .215 or the proposed debarment Is based upon a 3 .2ZR conviction or civil)udgmeaL the standard shall be deemed to(save been met Federal Register ( Vol. 53, No. IM / Thursday. May 2t3. ign / Notices (21 Burden of proof. The burden of request shall be in writing and other participants if the conduct proof is on the agency proposing supported by documentation.The occurred for or on behalf of the joint debarment. debarring official may grant such a venture,grant pursuant to a joint (d)Notice of debarring official's request for reasons including,but not application.or similar arrangement may decision. (1)U the debarring official limited to: be imputed to other participants if the decides to Impose debarment.the (1)Newly discovered material conduct occurred for or on behalf of the respondent shall be given prompt notice: evidence; joint venture,grant pursuant to a joint Q)Referring to the notice of proposed (2)Reversal of the conviction or civil application.or similar arrangement or debarment; judgment upon which the debarment with the knowledge.approval,or (ii)Specifying the reasons for was based; acquiescence of these participants. debarment: (3)Bona fide change in ownership or Acceptance of the benefits derived from fill)Stating the period of debarment. management: the conduct shall be evidence of such including effective dates;and (4)Elimination of other causes for knowledge.approval,or acquiescence. (iv)Advising that the debarment is which the debarment was imposed;or effective for covered transactions (5)Other reasons the debarring 132 throughout the executive branch of the official deems appropriate. Any party to the action may petition Federal Government cedes an agency i i2.321 Some of dsbwmw& the debarring official to reconsider a the determination ination referred head authorised designeeo n in makes (a)Scope in gemml (i)Debarment of debarment determination for alleged d t f a person under these regulations errors of fad or law.The petition for 12)if the debarring official decides not constitutes debarment of all its divisions reconsideration must be in writing and to impose debarment the respondent and other organizational elements from filed within 10 calendar days from the shall be given prompt notice of that all covered transactions,unless the date of the party'•receipt of the decision.A decision not to impose debarment decision is limited by its determination. debarment shall be without prejudice to terms to one or more specifically a subsequent imposition of debarment identified individuals.divisions or other f 32'3�S ��� by any other agency. organizational elements or to specific (a)The debarment determiastien types of transactions. under 132.324 shall be final.However. 132.319 setd*nwm errs voluntary (2)The debarment action may include any party to the action may teip"t the e:ckniorL any affiliate of the participant that is Director.Office of Administration(OA (a)When in the best interest of the specifically named and'given notice of Director),to review the findings of the Government EPA may,at any time, the proposed debarment and an debarring official by filing a request settle a debarment or suspension action. opportunity to respond(see 11 a'!Z.311 with the OA Director within 30 calendar (b)If a participant and the agency through 3Z_.314). days of the party's receipt of the - agree to a voluntary exclusion of the (b)imputing conduct For purposes of debarment determinatim or its participant,such voluntary exclusion determining the scope of debarment reconsideration.The request must be in shall be entered on the Nonprocurement conduct may be imputed as follows: writing and set forth the specific reasons list(see Subpart E). (1)Conduct imputed to participant why relief should be granted. (1)The debarring and suspending The fraudulent criminal or other (b)A review under this seafion shall official is the official authorized to settle seriously improper conduct of any be at the discretion of the OA Director. debarment or suspension actions. officer.director.shareholder,partner. If a review is granted.the de employee,or other individual associated official may stay the effective date a f 32-320 tserfod oM dobanw.t with a participant may be imputed to the debarment order pending resolution of (a)Debarment sball be for a period participant when the conduct occurred the appeal,ifs debarment is stayed the commensurate with the seriousness of in connection with the individuals stay shall be automatically lifted if thethe cauees(s).Generally,a debarment performance of duties for or on behalf of OA Director arms the debarmeaL should not exceed three years.Where the participant or with the participant's (c)The review shall be based solely circumstances warrant a longer period knowledge,approval.or acgaieaoenoe upon the record.The OA Director may of debarment may be Imposed If a The participants acceptance of the set aside a determination only if it is suspension precedes a debarment the benefits derived from the conduct shall suspension period shall be considered in be evidence of such knowledge, found to be arbitrary.capricious.and determining the debarment period approval,or acquiesoenc a. abuse of discretion,or based upon a (b)The debarring official may Wand (2)Conduct imputed to individuals clear error of law. an exis * debarment for an add clonal associated in'th participant The (d)The OA Director's subsequent period.it that official determines that an fraudulent criminal.or other seriously determination shall be In writing and extension is necessary to protect the Improper conduct of a participant tact mailed to all parties. public Interest However,a debarment be Imputed to any officer,director. (e)A determination under j)32.,1i4 or may not be extended solely on the basis shareholder,partner.employee.or other a review under this section shall not be of the facts and circumstances upon individual associated with the . subject to a dispute or a bid prutw which the initial debarment action was participant who participated In.knew of. under Parts 30-31 or 33 of fhia based If debarment for an additional or had reason to know of the subchapter• period is determined to be necessary, participant's conduct the procedures of!j)$-.311 through (3)Conduct of ompmtrcipant JIL314 shall be followed to extend the imputed to otharportfcipant5p in a ju7int debarment rentur+e.The fraudulent.a intial.ar (c)The respondent may request the other seriously improper oondnet of one debarring official to reverse the participant in a joint venture,grant debarment decision or ta reduce the pursuant to a joint application,or period or scope.of debarment Such a — similar arrangement may be imputed to Federal Register / Vol. 53. No. 102 / Thursday. May 26. 1988 / Notices Subpart D—Stuspension (c)Describing any such irregularities However,a decision to modify or in terms sufficient to put the respondent terminate the suspension shall be 32.400 General. on notice without disclosing the Federal without prejudice to the subsequent (a)The suspending official may Government's evidence; imposition of suspension by any other suspend a person for any of the causes (d)Of the cause(a)relied upon under agency or debarment by any agency. in 1 �i 405 wingprocedures I �X-405 for imposing suspension: The decision shall be rendered in established through (e)That the suspension is for a accordance with the following A2-413. temporary period pending the provisions: (b)Suspension is a serious action to completion of an investigation or (a)No additional proceedings be imposed only when: ensuing legal.debarment.or program necessary.In actions:based on an (1)There exists adequate evidence of Fraud Civil Remedies Act proceedings. indictment,conviction.or civil judgment: one or more of the causes set out in (f)Of the_provisions of f A?411 in which there is no genuine dispute !122v405.and through I AZ413 and any other over material facts;or in which (2)Immediate action is necessary to EPA procedures,if applicable, additional proceedings to determine protect the public intereat. governing suspension decisionmaking: disputed material facts have been (c)In assessing the adequacy of the and denied on the basis of Department of evidence,the agency should consider (g)Of the effect of the suspension. justice advice.the suspending official bow much information is available,how 112.412 Opportunny to contest shall make a decision on the basis of all credible it is given the circumstances. suspenaiw, the information in the administrative .whether or not important allegations are record.including any submission made corroborated,and what inferences can (a)Submission in opposition.Within 30 days after receipt the notice of m b the respondent-The decision shall be suspension reasonably be drawn as a result.This ade within*S days after receipt of any assessment abould include as .the respondent may submit, information and argument submitted by examination of basic documents such as in person.in writing,or through a the respondent.unless the suspending representative.information and grants.cooperative agreements,loan argument in opposition to the official extends this period for good authorizations.and contracts. cause. suspension. 1 32.405 Cnwes foe suaoart M (1)If the respondent desires a hearing, (b)Additional proceedings necessary. (a)Suspension may be imposed in it shall submit a written request to the (1)In proceedings in which additional accordance with the provisions of suspending official withi the 30day disproceedings are necessary writtenerial facts. determine f f 0,2-400 through,32.413 upon period following receipt of the notice of of act shall uted the prepared The findings adequate evidence: suspension. suspending official shall base the (1)To suspect the commission of an (b)Additional proceedings as to decision on the facts as found.together offense Listed in 13?30t3(ak or disputed materiol focts. (1)If the with any information and argument (2)That a cause for debarment under suspending official finds that the submitted by the respondent and any I Z�305 may exist respondent's submission in opposition other information in the administrative (b)Indictment shall constitute raises a genuine dispute over facts record. adequate evidence for purposes of material to the suspension, (2)The suspending official may refer suspension actions. respondent(s)shall be afforded an matters involving disputed material 4 n4 to Neeadww opportunity to appear with a facts to another official for findings of representative,submit documentary fact The suspending official may reject (a)Invest�jation and munw- evidence,present witnesses.and any such findings,in whole or in part Informed=eoneermtng the eldatenos of confront any witness the agency only after specifically determining them a cause for sustimlon from tine wince presents,unless: to be arbitrary or capricious or clearly shall be promptly reporte investigated. (1)The action is based on an and referred.when appropriate.to the indictment,conviction or civil judgment, erroneous. suspending official for consideration. or (c)Notix of atuwritte u official's After consideration,the suspending (il)A determination is made,on the decision.prompt written notice al the official may issue a notice of basis of Department of Justice advice, :ent to official's decision shall be suspension. that the substantial interests of the sent to the respondent. (b)Decisionmaking prixe=a EPA Federal Government in pending or f=A1i Pei Of NOPWIM&L shall process suspension actions as contemplated legal proceedings based (a)Suspension shall be for a informally as practicable,consistent on the same facts as the suspension temporary period pending the with principles of fundamental fairness. would be prejudiced. completion of an investigation of using the procedures in I JIL 411 (2)A transcribed record of any ensuing legal.debarment.or program through}A2.413. additional proceedings shall be Fraud Civil Remedies Act proceediW f 3Z41 t fbmF-. of auspensih . prepared and made available at cost to unless terminated sooner by the When a respondent is suspended. the respondent,upon request,unless the suspending official or ai provided in notice shall immediately be given: respondent and the agency,by mutual paragraph(b)of this section. (a)That suspension has been agreement,waive the requirement for a (b)If legal or administrative imposed. transcript. proceedings are not initiated within 12 (b)That the suspension is based on an i 2-14t3 Su*wWft o~s d months after the date of the suspension indictment.conviction.or other n notice•the suspension shall be The sus adequate evidence that the respondent suspending official may modify or terminated unless an Assistant Attoraq has committed irregularities seriously terminate the suspension(for example. General or United States Attonw reflecting on the propriety of further see I.12s.320(c)for reasons for requests its extension in wrldt*In Federal Government dealings with the reducing the period or scope of which can it may be extended for as debarment)or may leave it in force. additional six months.In no event may a respondent — Federal Register / Vol. 53. No. 102 ( 'Thursday. May.26. 19M / Notices suspension extend beyond 18 months. Subpart E—Resportslbllttles of GSA, or lower tier participant is required unless such proceedings have been Agency and Partielpan under the terms of the transection. to determine whether such principals or initiated within that period. I320o GSA rsaDarlblltW-s. participants are debarred.suspended. (c)The suspending official shall notify ineligible.or voluntarily excluded. the Department of Justice of an (a)In accordance with the Ott impending termination of a suspension, guidelines.GSA shall compile.maintain.. 132-SIo Partwpanta'nsponslbltttlK ai least 30 days before the 12-month and distribute a list of all persons who (a)Certification by participants in period expires, to give that Department have been debarred suspended.or primary covered tramoetions.Each an opportunity to request an extension. voluntarily excluded by agencies under participant shall submit the certification Executive Order 12549 and these in Appendix A to this Part for it and its 132.420 Soo"of suarpenabn. regulations,and those who have been principals at the time the participant The scope of a suspension is the same determined to be ineligible. submits its proposal in connection with as the scope of a debarment(see (b)At a minimum this list shall a primary covered transaction.except 1 -3 2- 325).except that the procedures indicate: that States need only complete such of 11 3 2-410 through —3-2-- 413 (1)The names and addresses of all certification as to their principals. shall be used in imposing a suspension. debarred.suspended.ineligible,and Participants may decide the method and voluntarily excluded persons.in frequency by which they determine the 132.425 RecaraNwaVOL alphabetical order,with cross. eligibility of their principals.In addition. Any party to the action may petition references when more than one name is each participant may.but is not required the suspending official to reeonsidera involved in a single action: to.check the Nonproeurement List for its suspension determinadon for alleged (2)'The type of action: principals(TeL*).Adverse information errors of fact or law.The petition for (3)The cause for the action: on the certification will not necessariy reconsWeration must be in writing and (4)The scope of the action: result in denial of participation. filed within io calendar bays from the (5)Any termination date for each However,the certification.and any date of the party's receipt of the listing:and additional information pertaining to the suspension determination. (8)The agency and name and certification submitted by the 4 32430 Appeet. telephone number of the agency point of Participant,shall be considered in the (a)The suspension determination contact for the action. administration of eaavend transactions. under f 32.413 shall be final.However, 132.5" EPA (b)Certification buissac ores.(1 in any party to the action may request the ���" lower tiercoxerod traasectloat.(1)Each any patctor.Office of Administration t the (a)The agency shall provide GSA participant AaP require participants in Dirthe findings of the with current information concerning lower tier covered transactions to Director),to review suspending official the filing a is of th debarments,suspension.determinations include the cerlificaftni in Appen&B with the OA Director within 30 calendar of ineligibft and voluntary exclusions to this Part for it and Its principals in days of the patty's receipt of the it has taken.Until February IL 1989,the any proposal submitted In connection suspension determination.or its agency shall also provide GSA and with sari bsaarlet ossacad reconsideration.The request must be In Old with information concerning all transactians. forth the specific reasons transactions in which EPA has (2)A partieipaat duty rely upon the writing and set for why should th granted. granted exceptions under I_.,'rI.2_.2t3 cerd&Ation of a prospective y re parti ''�aat ( a review under this section shall P��g p�atudpati=tYl�ea• in a lower tier covered transaction that be at the discretion of the OA Director suspended or voluntarily excluded it and its principals are not debarred. If a review is granted the OA Director. persons. suspended.ineligible.or voluntarily official may stay the effective date of a (b)Unless an alternative schedule is excluded from the covered transaction suspension order pending date a agreed to by GSA.the agency shall by any Federal agency.unless It knows appeal.it a order per �s stayed the . advise GSA of the information set forth that the certification is erroneous. ate al.If be suspension automatically ayed it the in S )and of the exceptions Participants may decide the method and OA Director a atom the swpetlifted is granted under i 3 2- m within five frequency by which they determue the (c)The review wosli t e basal solely `vot"�g days after taking such actions. eligiblity of their principals.In addition, upon the nevoid.The OA Director may (c)ne agency shall direct inquiries a participant may.but is not replied to. set aside a determination only if it to concerning bated persons to the agency check the Nonprocurement List for its found to be arbitrary.capricious.an that took the actions. principals and for participants(Tel.*j abuse of discretion.or based upon a (d)Agency offidak shall check the (c)Changed circ Manes regmding clear error of law. Nouproearement Lbt before entering certification.A participant shall provide The of Director's subsequent covered transactions to determine immediate written notice to EPA If ( determination shall be in writing and whether a participant in a primary at any time the participant learns that mailed all parties. transaction is debarred'suspended' its certification was erroneous when ma (il determination ender 32.418 or ineligible,or voluntarily excluded(Tel. submitted or has become erroneous by a review under this section shall not be 'a)' reason of drauastaaon: subject to a dispute or a bid protest (a)Agency officials shall check the Participants in artier covered under Parts 30.31.or 33 of this. principals List before approving transactions shall provide the same subcha ter. principals at lower tier participants updated notice to the participant to P where agency approval of the principal which it submitted its proposals. Federal Register / Vol. 53. No. 1Q2 / Thursday. May X 19U / Notices Appendix A—Certification Regarding t1 A participant in a covered transaction Appendix 9—C.er4firatioo Regarding Debarment.Suspension,and Other may rely upon.a certification of a prospective Debarment.Suspension.lnaligibilty and Responsibility Matters—Primary participant in a lower tier covered transaction that it is not debarred. Volua4r/Exclusion—Lower Tier Covered Transactions suspended.ineligible.or voluntarily excluded Covered Transactions Instructions for Certification from the covered to action.unless it know Instructions for Certification I.By signing and submitting this proposal• that the certification is erroneous.A 1.By signing and submitting this proposal. the prospective prima participant my decide the method and primary participant is the prospective lower tier participant is frequency by carrier it determines the providing the certification set out below. providing the certification set out below. 2.The inability of a person to provide the eligibility of its prWcipals.Each participant 2.The certification in this clause is a certification required below will not material representation of(act upon whirr necessarily result in denial of participation is N may.but is not required te.check the onprocumment List(TaL el. rolianee was placed when this transaction this covered transaction.The prospective 9•Nothing contained in the foeegoft shall was entered into.R it is later determined that participant shall submit as explanation of Sc construed to require establishment of a the prospective lower tier participant why it canmot provide the certification set out system of records in order to reader in pod knowingly rendered ad erroneous below.The certification or explanation will faith the certification required by this clause. certification.in addition to other remedies be considered in connection with the The knowledge and information of a available to the Federal Government the department or agency's determination participant is not required to exceed that department or agency with which this whether to enter into this transaction. which is norinaUy possessed by a prudent transaction originated may pursue available However.failure of the prospective primary person in the ordinary course of business remedies.taduding suspension and/or participant to funiiah a certification or an dealings. debarment. explanation shall disqualify such person from io.Except for transactions authorized 3.The prospective lower tier participant Participation in this transaction, under paragraph a of these instructions.if a shall provide immediate written notice to the 3.The certification in this clause is a participant in a covered transaction person to which this proposal is submitted if maten reps ientation of fact upon which knowingly eaten iota a lower tiv covered at any time the prospective lowr r tier reliance was placed when the department or transaction with a person who is suspended participant learns that its certification was agency determined to enter into this debarred ineligible.or voluntarily excluded erroneous when submitted or has become transaction.U it is later determined that the from participation in this transaction.in erroneous by reason of ebayed prospective primary participant knowingly addition to other remedies available to the circ•ja•tances. rendered an erroneous crinfication,in Federal Government the department or 4.The terms`covered transaction." addition io other remedies available to the agency may terminate this transaction for "debarred""suapended.""laeligibk."'lower Federal Government,the department or , cause or default. tier covered transaction."`WWat agency may terminate this transaction for "person:'primary covered trnaseetioo." cause of defaalL Certification Aegardaw Debw wnt. ••princiW"proposal."and'tieluntatdy 4.The prospective primary' participant shall Suspersiaui,and Other Responsibility excluded."as used to this claum bave the privIde immediate written notice to The Matters—Primary Coveted r mtaoetlons meanings art out in the DoUdaos and department or agency to whom this proposal il)The prospective primary particapaar Coverage sections of ruin Implementing ctthe is submitted if at any time the prospective cet ifies to the beat of its knowledge and Executive Order 1Z94ti.You ls Nbmittad for nts primary participant terns&at as bi-lief.that it and its principals: person which��s the"submitted cerdfiratiea was aeoasos when submitted (a)Are not presently debarred suspended mium in or has became encowus by reason of proposed for debarment declared changed circumstances. or voluntarily excluded from cove ed L The prospective lower tier partiapant S.The terms"covered trassacdoa.` transactions by ley Vedetd deprtjo"t or agrees by submitting this proposal that. "debatted'"suspended" a."7owrer should the proposed covered trsasaettoo be tier coveted trensacean.7�l agency: entered into,it shall not knowingly enter into "paanseel o (b)Have not within a Ihree•�tpe led d4 any lower tier covered transaction with a ..person.""primary covered tnasaeriea` preceding thispsapsaattlaa aanoaaiatror person who is debased,suspanded declared "principaL"'prepsel."aned"valentaeTy bad a Quit iaArmaat earieadetpiaat 4bs ineligible.or voluntarily excluded Ir m excluded."as used ie thts4aasa,bawl do for commission of fraud or a criminal offense participation in"coveted transaction, meaaiap art out is the DeBairlfooa sad in cat aeetioa will•alttaioigg,aN opiir;to unless authorized by the department a Coverage sections of the ruin fatpieasend" obtain.or nedotmigg a puhUI ZFsaiml,State 'racy with which this transaction Executive Order 12349.You may contact the of local)transaction of eoofeet tender a originate& department or agency to which this proposal public transaction:vlo4tion of Federal or a The prospective lower tier participant is being submitted for assistance In obtabiing State antitrust statutes or commission of clause a copy of those regulations. embezzlement,theft. further agrees by submitting thin proposal forgery,bribery. that it cart!!include thls asuhe titled a The prospective primary participant falsification or destruction of records,making "Cartincation Regarding Debarment agrees by submitting this proposal that, false statements,or receiriag stolen property.. Suspension.lnaligibility and Voltouary should the proposed covered transaction be (c)Are not presendy laiba d JW or Exclusiao--tower Tier CovWW entered into.it shall not knowingly enter into otherwise criminally or dv'dF&arged by a Transaction.'without modiSndat,in all any tower tier covered transaction with a governmental entity(Federal.State or Iota() lower tier covered tnasacdoen and to all person wba is debarred•suapended declared with commission of any of the offenses solicitations for lower ties coveted ineligibts.or voluntarily excluded floss enumerated In paragraph(1)(b)of this transactions. participation is this covered traaaactioa. certification:and 7.A participant in a covered bin"cdm unless authorized by the department or (d)Have not within a three-year period may rely upon a certification of a prospective agency entering into this transaction. ping thin application/proposal had one participant in a lower tit covered 7.ne prospective primary participant or more public transactions(FederaL State or transaction that it is not dabarted (nrtber agrees by submitting this proposal local)terminated for cause or default. suspended ineligible.or vol uugy excluded that it wiU include the clause titled (2)When the prospective primary ham the covered tranaacdow tsaleas it knows "Certification Regarding Debarment participant is unable to certify to any of.the t.'.at the cc.-tifiution is erroneous.A Suspension.Iaeti�blUry and Voluntary statements in this certification.such participant may decide the method and Exrlusioo-4Awer Tier Covered prospective participant shall attach an frequency by which it determines the .haasectioo,"provided by the iepartaseat er explanation to this proposal eligibility of its principals.Each participant agency entering into tftia arvared transaction. may.but is not required to check the without modincadvit Is aft lowatisr honprocurement Wt(TeL 9) covered transections and is al sotidtatiens for lower tier covered tray soctioas. Federal Register / Vol. S3. No. 102 / Thursday, May 28. 19SS / Notices a Nothing comaiaed in the foregoing shall be construed to require establishment of a system of records in order to tender in good faith the certificatfoo required by this clause. The knowledge and information of a participant is not required to exceed that which is normally pissessed by a prudent person in the ordinary course of business dealings. Y.Except for transaction authorised under paragraph S of these instructions.it a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is suspended debarred ineligible.or voluntarily excluded from participation in this tranwcdoo.in addition to c'_`=remedies available to*e Federal Government.the department or ageary with which this transaction originated may pursue available rem"ea,including suspension and/or debarment. certification Regard.tg OebarmeaL Suspension.Inel4ibiVrvand Voluntary zrxclvsion=Lower Ti !'ri.w Transactions (1)The prospective lower tier participant certifies.by submission of this proposal.that neither it nor its principals is presently debarred suspended,proposed for debarment declared ineligible,or voluntarily excluded from participation in this transaction by any Federal department or Agency. (2)Where the prospective lower tier participant is unable to certlty to any of the statements in this certification,such prospective participant shall attach an explanation to this proposal. (3)The prospective lower-liar participaa, also certifies that it and its principals: (a)Have not within a three-yaw period preceding this proposal been convicted of or had a dvil judgment readered against them roe oommissiaa of fraud or a criminal offense in connection with obtaidng,attempting to obtain,or performia ll a public(Federal.State or local)hnnsection or contrect under a public transaction:violation of Federal or State anti-bwt statutes orcommbslon of embesrlement,theft forgery,bribery. falsificed,on or destruction of records,making false statements,or recelving atokrm property: (b)M not presently Indicted for or otherwise c imboally or clvtlly chanted by a governmental entity(Federsl.State or local) with commission of any of the offenses enumerated in paragraph(3)(a)of this certificstiam:and (c)Have not within a three-year period preceding this proposal bed one or mom public transactions(Federal.State or local) terminated for cause or default.Where the prospective lower-der participant is unable to certify to any of the above.such prospective participant shall attach an explanation to this proposal. Attachment I DRUG FREE WORKPLACE CERTIFICATION Each applicant for EPA funding assistance must complete a current certification that it has a policy of providing a drug-free workplace for employees. The certification must be SIGNED by the head of the agency (the person who has authority to sign applications and commit agency performance) . Grantee's responsibilities are listed -in 40 CPR, Section 32.630. State grantee agencies may file an annual certification; all others must submit a certification pursuant to the language found in the aforementioned regulation. This certification is required from the EPA prime recipient only; the regulation does NOT require EPA grantees to require this certification from their contractors. THERE IS A FORMAT ON THE REVERSE SIDE THAT MAYBE USED FOR THIS CERTIFICATION. APPLICANTS MAY USE THIS FORMAT OR MAY PREPARE THE CERTIFICATION ON THEIR LETTER HEAD OR PLAIN BOND USING THE LANGUAGE FOUND AT 40 CFR, SECTION 32.630. BE SURE TO INCLUDE: (a) NAME OF THE APPLICANT (IF NOT USING LETTER HEAD) (b) TYPED NAME AND TITLE OF THE SIGNING OFFICIAL (c) DATE SIGNED A ant 1 CERTIFICATION RL..,ARDING DRUG-FREE WORKPLACE AEQLTIREMENTS A. The undersigned grant applicant/recipient certifies that it will provide a drug-free workplace by.. (a) publishing a statement rtifying employees that the unlawful manufacture,distributions,dispensing,possession or use of a controlled sub dance Is prohibited In the grantees workplace and specifying the actions that wM be taken against employees for violation of such prohiblioeg (b) Establishing a drug-free awareness program to Inform employees about— (1)The dangers of drug abuse in the workplace; (2)The grantees policy of malnbkft a dr Wfiee workplace; (3)Any available drug counseling,rehabliltatim and employee assistance grog mmg and (4)The penalties that may be Imposed upon employees for drug abuse violatiow occ rft in the woATIeW (c) Making It a tequtteaort that each employse to be enpged In the performance of the grant be given a oapy of the requited by paragraph(a); . (d) Notifying the employee t wa In the statement requited by paragraph W that as a condition for employmer der the grant,the employee will— (1)Abide by the terms of the statement;and CZ)Notify the employer of any criminal drug statute conviction for a violation ooeuring In the workplace to Inter than five days after such conviction; (a) Notifying the agency within ten days after receiving.notice under subparagraph(dKZ)from an employed,or otherwise reedving actual notice of such eonvid M M Taking one of the following astiom,within 30 days of receiving notice under subparagraph(d)i)with respect to any employee who Is so convicted— (1)Taking appropriate personnel action against such an employee,up to and Including ternlnad{ce;or CZ)Requiring such employee to participate satisfactorily In a drug abuse assistance peopun approved for Do& purposes by a Federal,State,or local h altit,law enloraertent or other appropriate ageatcy; (g) Makft a good faith effort to continue to maintain a drug free workplsoe through Iarpl of paragraphs (a),(b),(e),(d),(a),and 0). B. The grantee shall insert In the space provided below the stte(s)for the performance of work done In connection with the specific grant: place of Performance(street address,city,county,state,zip eodek Siptahm of Agav7/OrpnUattest bleed Who Hu AtuhMty to C=mdt Alaicy Pufaemaea Dm Typed Naas k Hers Name of Apncy or Org&Wndoa NOtc:Use of this format is optional. You may use this fonmt or you may put this same information on your lettahad. Attachment J CERTIFICATION REGARDING LOBBYING Each applicant for EPA funding assistance must complete a current SIGNED certification (signed by agency or organization head who signed application and has authority to commit agency or organization performance) regarding lobbying activities and must submit this certification with each application for Federal funds exceeding $100,000. When applicable, the disclosure form must also be submitted. See "Governmentwide Guidance for New Restrictions on Lobbying" dated December 18, 1989. THERE 18 A FORMAT ON THE REVERSE SIDE THAT MAYBE USED FOR THIS CERTIFICATION. APPLICANTS MAY USE THIS FORMAT OR MAY PREPARE THE ' CERTIFICATION USING THEIR LETTERHEAD OR PLAIN BOND USING THE LANGUAGE FOUND IN APPENDIX A OF THE "GOVER11K6NTWIDE GUIDANCE FOR NEW RESTRICTIONS ON LOBBYING." BE SURE TO INCLUDE: (a) NAME OF THE APPLICANT (IF NOT USING LETTER HEAD) (b) TYPED NAME AND TITLE OF THE SIGNING OFFICIAL (c) DATE SIGNED Attachment I CERTIFICATION REGARDING LOBBYING Certification for Contracts,Grants, Loans, and Cooperative ASMments The undersigned certifies, to the best of his or her knowledge and belief,that 1. No Federal appropriated funds have been paid or will 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 Conger,or an employee of a Member of Congress in connection with the awarding of any Federal contract,the making of any Federal grant, the making of any Federal loam, the entwirs into of any cooperative agreement,and the extension,continuation,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 offices or employee of Congress,or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperatve agreement,the undersigned shall complete and submit Standard Form-LLL„"Disdosm Form to Report Lobbying,"in accordance with its instruction. 3. The undersigned shall require that the language of this certification be included in the award documents for all subawards at aD ders (including subcontracts, subgmntk and contracts under grants,loans,and cooperative agreements)and that all subrecipients 9W 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,US.Code..Any person who fails to file the required certification shall be subject to a dvil penalty of not less than$10,000 and not more than$100,000 for each such fall um Hod ef Agenry or 0WxkAtim Drier Typed Now&TO Name and Address of Agency/Organization: Note Use of this format is optional. You may provide this same information on your Jetterheod. Attachment K PROCUREMENT SYSTEM CERTIFICATION EPA Form 5700-48 On the reverse side is a Procurement System Certification, EPA Form 5700-48F (Attachment K) must be attached to the following applications: SUPERFUND NEW COOPERATIVE AGREEIU:NTS: and upon substantial revision of the recipients procurement system. Required by 40 CFR, 35.6550(a) . TECHNICAL ASSISTANCE QRANTS: 40 CFR, 33.110(b) . OTHER GRANT PROJECTS AKARDSD UNDER 40 CFR, PARTS 30 An 33: e.g. awards to Universities or Non-Profit Organizations. Required by 40 CFR, 33.110(b) . LOCAL_GOVERNMENTS A INDIAN TRIBES: completing attachment K is optional - 40 CFR 31.36(g) (3) IF YOU CERTIFY that your system meets EPA requirements, then you must cite, in the space provided on the form, the specific documents or legal instruments which stipulate the procurement requirements for your organization which meet EPA requirements. If requested to do so, you must submit copies of the documents cited. (Do not submit these documents unless specifically requested. ) YOU 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 EPA requirements for the project for which you are requesting funding. Additionally, you must submit to the EPA project officer copies of these procurement documents for EPA approval (i.e. Requests. for Proposal,, Bid Opening Minutes/Notes, Selection Decision Justification, Negotiation Notes, etc. ) ATTACHMENT K UNITED STATES ENVIRONMENTAL PROTECTION AGENCY WASHINGTON,DC 20460 Form Approved v 453 E PA OMB No. expires 10- PROCUREMENT SYSTEM CERTIFICATION Approval expires 1431-67 APPLICANT'S NAME ASSISTANCE APPLICATION NUMBER APPLICANT'S ADDRESS SECTION 1—INSTRUCTIONS The applicant must complete and submit a copy of this form with each application for EPA Assistance. If the applicant has certified its procurement system to EPA within the past 2 years and the system has not been substantially revised, complete Part A in Section 11, then sign and date the form. If the system has not been certified within the past 2 years,complete Part B.then sign and date the form. SECTION 11--CERTIFICATION A.1 affirm that the applicant has within the past 2 years certified to EPA that its procurement MONTH/YEAR system complies with 40 CFR Pan 33 and that the system meets the requirements in 40 CFR Part 33.The date of the applicant's latest certification is: B.Based upon my evaluation of the applicant's procurement system, I, as authorized representative of the applicant:(Check one of the following.] ❑ 1. CERTIFY that the applicant's procurement system will meet all of the requirements of 40 CFR Part 33 before undertaking any procurement action with EPA assistance Please furnish citations to applicable procurement ordinances and regulations 2. DO NOT CERTIFY THE APPLICANT'S PROCUREMENT SYSTEM. The applicant agrees to follow the requirements of 40 CFR Part 33, including the procedures in Appendix A, and allow EPA preaward review of proposed procurement actions that will use EPA assistance. TYPED NAME AND TITLE SIGNATURE DATE EPA Form 5700-48(Rev.6.84)Previous edition is obsolete. Attachment L and Attachment L-1 CERTIFICATION MINORITY BUSINESS ENTERPRISES a WOMEW S BUSINESS ENTERPRISES UTILIZATION GOAL Setting a utilization goal (must be at least 8% of the Federal portion of the extramural funds) and reporting on the progress 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 L or (Attachment L-1 for 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 MBE/WBE utilization are required on Standard Form 334. An annual narrative of your progress in meeting the goal you set (or an explanation of the reason the goal was not realized even though you complied with the six affirmative steps) is also required. There is no form for the narrative portion -- attach the narrative (typed on your letterhead) to the SF-334 for the fourth quarter. If you have questions about 163EIN= goals and reporting requirements, please contact Rota BroKn, Region 6 XBR/HBE Coordinator, at (214) 655-7407. ArrACZU10W 1 CBRTZFIC&rxc 1 CERTIFICATION REGARDING XBS/NM UTILIZATION GOAL GO" FOR FZSC" rx" RZCIPIENTIAPPLICANT XWE: EPA/PROGRAM: GRANT NO. (if known) : PROJECT PERIOD in accordance with the requirements established by Law (Title 42 united States Code Section 4370d) on October 6, 2992, the Agency must obtain a goal for all federal funding for the utilization of Minority Business Enterprises and Womens, Business Enterprises (MBE/NSS), including Historically Black Colleges or Universities (ncus) and small Business Administration designated Rural Areas (SBRAs). The recipient/applicant agency or organization must establish a minimum goal for utilization of Minority Business Enterprises and Womens, Business Enterprises (MBE/WBE), including Historically Black Colleges or universities (HBcus) and small Business Administration designated Rural Areas (SBRAa). YOUR GOAL fmast total at least eiaht vercent of Federal funding awarded for extramural procurement tmonies to be event outside the recipient/avnlicant agency, pManization, or zndian tribe for contracts, services, eguimment, or suzolies)t . The goals must be broken down with a percent for MBE and a percent for WBE. This minimum utilization goal is applicable to all extramural procurement under Federal financial assistance agreements, including grants, cooperative agreements, interagency agreements, loans, and contracts executed with the U.S. Environmental Protection Agency. GRANT AMOUNT REQUESTED: $ TOTAL BUDGETED AMOUNTS REQUESTED FOR SERVICES, EQUIPMENT, SUPPLIES, CONTRACTS OR CONTRACTUAL: $ FAIR SHARE OBJECTIVES (RELATIVE TO FEDERAL PORTION OF EXTRAMURAL PROCUREMENT) : MBE: • S Minority Business Enterprise tieE: • $ Women's Business Enterprise TOTALt ----------5 (THESE TWO MUST TOTAL AT LEAST 8%) OR YOU MAY GOAL A PERCENTAGE FOR HBCUs INSTEAD OF MBE. TOE TWO TOTALS MUST TOTAL AT LEAST Be. HSCU: t $ Historically Black Colleges i universities IN ADDITION TO A GOAL FOR MBE/WBE OR HBCUs WE ASX THAT YOU GOAL FOR SBRAs. The Authority is located in Section 129 of Public Law 100-590 dated November 3, 1998. SBRAs • ; Small Business Rural Areas If "Fair Share■ is not applicable to this award, or CERTAIN COST OBJECTIVES, please explain why: EPA reserves the right to either accept the recipient's proposed fair share, or to negotiate a fair share based upon conditions cited in the award. If you have any questions, please contact Rota Brown, MBN/NBE Coordinator, 31anagement Division (6H—Pa), Phone: (214) 655-7407. Recipient's contact for HBE/WBE issuess Name Title Phone Signature of Certifying Official Date Typed Name and Title of Certifying Official Typed Name of Agency/Organisation/Indian Tribe Mailing Address City State Zip Code Notesr 1. Use of this format I4 oDtlonal. You may use this format oR your XMINU goals may be shown on your letterhead (provided all information requested by thla format Is Included) over the signature of the certifying official who has authority to commit agency, organlaatlon, or Tribal performance. 2. Please include the fiscal year and project period on Page 1 of the cortlflcation. ATTACAMENT L-. CaRTIFICATIOB SRF CSRTTFICATION REGARDING !IDS/WBE UTXZIZATION GOAL GO" FOR PXSC" ZSAR RECIPIENT/APPLICANT NAME: EPA/PROGRAM: GRANT NO. (if known) : PROJECT PERIOD In accordance with the requirements established by Law (Title 42 United states Code section 4370d) on October 6, 1992, the Agency must obtain a goal for all federal funding for the utilization of Minority Business Enterprises and Womens' Business Enterprises (MBE/WBE), including Historically. Black Colleges or universities (HBcus) and Small Business Administration designated Rural Areas (SBRAs). The recipient/applicant agency or organization must establish a minimum goal for utilization of Minority Business Enterprises and Womens• Business Enterprises (MSE/NBE), including Historically Black colleges or universities (HBCVs) and Small Business Administration designated Rural Areas (SBRAs). YOUR GOAL jmust total at least eight percent of Federal funding awarded as_ a Capitalisation Grant for the state Revolving Fund (San for activity covered by 40 CPR 35.3120 (Authorized tvves of assistance). The goals must be broken down with a percent for MBE and a Percent for WBE, totalling not less than et. This minimum utilization goal is applicable to all Federal funds for capitalization Grant Agreements, including grants or cooperative agreements executed with the U.S. Environmental Protection Agency. FEDERAL CAPITALIZATION GRANT AMOUNT: $ Sit MINIMUM AMOUNT $ FAIR SHARE OBJECTIVES (RELATIVE TO FEDERAL PORTION OF CAPITALIZATION GRANT): MBE: s $ Minority Business Enterprise WBE: • $ Komen's Business Enterprise TOTAL: ----------s (THESE TWO MUST TOTAL AT LEAST 8%) OR YOU MAY GOAL A PERCENTAGE FOR HBCUs INSTEAD OF MBE. THE TWO TOTALS MUST TOTAL AT LEAST 8�. HBCO: • $ Historically Black colleges i Universities ------------- IN ADDITION TO A GOAL FOR MBE/WBE OR HBCUs WE ASK THAT YOU GOAL FOR SBRAs. The Authority is located in Section 129 of Public Law 100-590 dated November 3, 1989. SBRAs } $ small Business Rural Areas SPA reserves the right to either accept the recipient's proposed fair share, or to negotiate a fair share based upon conditions cited in the award. If you have any questions, please contact Rota Brown, MDR/waz coordinator, Management Division (6K-PG), Phone: (214) 655-7407. Recipient's contact for MBE/WBE issues: Name Title Phone Signature of Certifying Official Date Typed Nacre and Title of Certifying Official Typed Vase of Agency/Organizatioe/Indian Tribe Matting Address City State Zip Code Notes: 1. Use of this format is optional. rou may use this format OR your JOB/ME goals may be shown on your letterhead (provided all information requested by this format is included) over the signature of the certifying official wbo has authority to commit agency, organization.. or Tribal performance. Z. please include the fiscal year and project period on Page 1 of the certification. CATALOG OF FEDERAL DOMESTIC ASSISTANCE TABLE CFDA CODE NO. ASSISTANCE PROGRAM 66.CAF CLEAN AIR FELLOWSHIP 66.CAT CLEAN AIR TRAINING 66.CWF CLEAN WATER FELLOWSHIP 66.CWT CLEAN WATER TRAINING 66.OWF DRINKING WATER FELLOWSHIP 66.DWT DRINKING WATER TRAINING 66.INT INTERDISCIPLINARY TRAINING 66.MIA MIAP FELLOWSHIP 66,NK5 NMEMS FELLOWSHIP 66.RTX RADON TRAINING 66.SFT SUPERFUND TRAINING 66.SPX SPECIAL PURPOSE 66.SRF SUPERFUND RESEARCH 66.SSD SEE SPECIAL CONDITIONS 66.SSI SURVEYS, STUDIES, INVESTIGATIONS 66.SWF SOLID WASTE FELLOWSHIP 66,5WT SOLID WASTE TRAINING 66.TSD TSCA DEVELOPMENT 66.001 AIR POLLUTION CONTROL PROGRAM SUPPORT [CAA SECT. 105] 66.003 AIR POLLUTION CONTROL - MANPOWER TRAINING 66.032 STATE INDOOR RADON PROGRAM 66.418 CONSTRUCTION GRANTS FOR WASTE WATER TREATMENT WORKS 66.419 WPC STATE Ai INTERSTATE PROGRAM SUPPORT [CWA SECT. 106] 66.432 STATE PUBLIC WATER SYSTEM SUPERVISION [SAFE DRINKING WATER ACT] 66.433 STATE UNDERGROUND WATER SOURCE PROTECTION (UIC) [SDWA] 66.435 WATER POLLUTION CONTROL - LAKE RESTORATION 66.438 CONSTRUCTION MANAGEMENT ASSISTANCE [CWA SECT 205(G) STEP 01 66.454 WATER QUALITY MANAGEMENT PLANNING [CWA SECT. 205(J) STEP 63 66.466 NATIONAL ESTUARY PROGRAM [CWA SECT. 320] 66.468 CAPITALIZATION GRANTS - STATE REVOLVING FUND 66.460 NON-POINT SOURCE IMPLEMENTATION 66.452 WETLANDS PROTECTION - STATE DEVELOPMENT 66.463 NPOES RELATED STATE PROGRAM GRANTS 66,464 NEAR COASTAL WATERS PROGRAM 66.465 WELLHEAD PROTECTION PROGRAM GRANTS 66.500 CONSOLIDATED RESEARCH GRANTS 66.501 AIR POLLUTION CONTROL - RESEARCH 66.502 PESTICIDES CONTROL • RESEARCH 66.504 SOLID WASTE DISPOSAL - RESEARCH 66.506 SAFE DRINKING WATER - RESEARCH i DEMONSTRATION 66.507 TOXIC SUBSTANCE - RESEARCH 66.508 SENIOR ENVIRONMENTAL EMPLOYMENT PROGRAM (S.E.E.) 66.400 CONSOLIDATED GRANTS 66,700 PESTICIDES ENFORCEMENT PROGRAM [FIFRA] 66.701 TOXIC SUBSTANCES COMPLIANCE MONITORING [MCA] 66.702 ASBESTOS HAZARDOUS ABATEMENT (SCHOOLS) ASSISTANCE [TOSCA] 66.706 ASBESTOS ENHANCEMENTS 66.601 HAZARDOUS WASTE MANAGEMENT STATE PROGRAM SUPPORT [RCRA SECT. 3011 AMENDED] 66.802 HAZARDOUS SUBSTANCE RESPONSE TRUST FUND (SUPERFUND) [CERCLA/SARA] 66.804 STATE UNDERGROUND STORAGE TANKS PROGRAM (UST) [RCRA SECT. 9004 AMENDED] 66.805 STATE LEAKING UNDERGROUND STORAGE TANKS (LUST) [CERCLA] 66.806 SUPERFUND TECHNICAL ASSISTANCE GRANTS (TAGS) [CERCLA] CITIZEN'S GROUPS: PRIORITY SITES 66.807 SUPERFUND INNOVATIVE TECHNOLOGY EVALUATION PROGRAM 66.806 SOLID WASTE MANAGEMENT ASSISTANCE 66.809 CORE PROGRAM COOPERATIVE AGREEMENTS 66.900 POLLUTION PREVENTION INCENTIVES - STATES 66.925 STATE/EPA DATA MANAGEMENT 66.950 ENVIRONMENTAL EDUCATION i TRAINING PROD. 66.951 ENVIRONMENTAL.EDUCATION GRANT PROGRAM Table Files February 18, 1994 United State:. Office of Environmental EPA/240/B-01/002 Environmental , section Information March 2001 EXHIBIT A-2 Agency Washington,DC 20460 �' EPA EPA Requirements for Quality Management Plans EPA QA/R-2 f FOREWORD The U.S. Environmental Protection Agency(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, implementing, and assessing these management systems is called quality management and the product of this process is called the Quality System. 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(2811R) 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 Final EPA QA/R-2 i March 2001 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. Final EPA QA/R-2 ii March 2001 TABLE OF CONTENTS Page CHAPTER 1. INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.1 BACKGROUND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.2 QUALITY MANAGEMENT PLANS, THE EPA QUALITY SYSTEM, AND ANSI/ASQC 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 TRAIl41NG . . . . . . . . . . . . . . . . . . . . 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 Final EPA QA/R-2 iii March 2001 1. (This page has been left blank intentionally.) Final EPA QA/R-2 iv March 2001 CHAPTER I INTRODUCTION 1.1 BACKGROUND The U.S. Environmental Protection Agency(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. Furthermore, as EPA is increasingly involved in the use of environmental technology for pollution control and waste clean-up,the use of particular technologies is often specified 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 System (EPA 2000). Non-EPA organizations funded by EPA are required to document their quality system in a Quality Management Plan (or equivalent document)' 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 policies and procedures, criteria for and areas of application, and roles, responsibilities, and authorities. It also describes an organization's policies and procedures for implementing and assessing the effectiveness of the quality system. This document describes the elements of a quality system that must be documented in a Quality Management Plan to comply with EPA requirements. 'An equivalent document may not be called a Quality Management Plan but still would document an organization's quality system and address the required quality management practices described in this document. Final EPA QA/R-2 1 March 2001 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 ass irance (QA) and quality control(QC) activities will be applied during a particular project. EPA requirements for QA Project Plans are defined in EPA Requirements for Quality Assurance Project Plans (QA/R-S) (EPA 2001). 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. Final EPA QA/R-2 2 March 2001 Consensus Standards ANSVASQC E4 ISO 9000 Series v Internal EPA Policies External Policies EPA Order Poll Contracts-48 CFR 46 O EPA Manual 60.1 Assistance Agreements- a 40 CFR 30,31,and 35 EPA Program& Regional Policy Quality System Documentation Q (e.g.,QMP) Ir (L Supporting System Elements Training/Communication Z (e.g.,Procurements, (e.g.,Training Plan, Q0 Computer Hardware/Software) Conferences) N Z a Annual Review Systems and Planning Assessments O (e.g.,QAARWP) (e.g.,QSAs) Systematic Conduct Study/ Data Verification Planning Experiment &Validation (e.g.,DQO Process) H V LU QA Standard Technical Data Quality 0 Project Plan Procedures Assessments Assessment a PLANNING 0 IMPLEMENTATION a ASSESSMENT Defensible Products and Decisions Figure 1. EPA Quality System Components and Tools Final EPA QA/R-2 3 March 2001 1.3 THE GRADED APPROACH AND THE EPA QUALITY SYSTEM Implementation of the EPA Quality System is based on the principle of graded approach. This principle recognizes that a `one size 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#gmp. 1.7 SUPERSESSION This document replaces QAMS-004/80,Interim Guidelines and Specifications for Preparing Quality Assurance Program Plans(EPA 1980) in its entirety. Final EPA QA/R-2 4 March 2001 CHAPTER 2 QUALITY MANAGEMENT PLAN REQUIREMENTS 2.1 POLICY Quality systems supporting environmental programs involving environmental data or technology conducted by EPA organizations or by organizations 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 Quality Management Plan documents the quality management practices which are critical to a quality system. Specific Quality Management Plan content requirements are described in Chapter 3. Each organization should evaluate these requirements for applicability to their quality system. Where a particular element is not relevant, an explanation of why it is not relevant must be provided in the Quality Management Plan. Also, if the Quality Management Plan preparer or EPA organization sponsoring the work determines that additional quality management Final EPA QA/R-2 5 March 2001 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 PREPARATION' 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 by the QA Manager of the organization. However, it is essential that all management levels understand fully the content of the Quality Management Plan and concur with its implementation. 2Specific preparation,submission,review,and approval requirements for EPA organizations are contained in Section 3.2 of EPA Order 5360 Al (EPA 2000)as these represent internal EPA policy. Final EPA QA/R-2 6 March 2001 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 organization 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 affect programs covered by the Quality Management Plan; and • assessment findings requiring corrective actions and response. Final EPA QA/R-2 7 March 2001 All appropriate personnel in the organization performing work covered 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. Final EPA QA/R-2 8 March 2001 CHAPTER 3 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 3.11. 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. Final EPA QA/R-2 9 March 2001 3.2 MANAGEMENT AND ORGANIZATION Purpose—To document the overall policy, scope, applicability, and management responsibilities of the organization's quality system. Specifications—Provide the following: • an approval page for the signatures of the organization'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 discussion of the technical activities or programs that are supported by the quality system including: the specific programs that require quality management controls, 'Organizations funded by EPA do not have to address these EPA-specific elements. Final EPA QA/R-2 10 March 2001 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: - 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 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 documentation), - Data Verification and Validation(data assessments); Final EPA QA/R-2 11 March 2001 • a list of any components of the organization that develop Quality Management Plans (or equivalent document)in support of the organization's Quality System and the review and approval procedures for such documentation; and • a discussion of how roles and responsibilities for the principal components of the Quality System are incorporated into performance 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 effectively 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 management and staff,pertaining to all appropriate procurement documents or extramural agreements, including grants, cooperative agreements, and contracted and subcontracted activities, involving or affecting environmental programs, for: • reviewing and approving procurement documents(and any changes to these documents) to ensure that procurement documents are accurate, complete, and clearly describe: Final EPA QA/R-2 12 March 2001 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 process(es), including the roles, responsibilities, and authorities of management and staff, for: • identifying quality-related documents and records (both printed and electronic) requiring control; Final EPA QA/R-2 13 March 2001 • 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 requirements. 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 requirements and standards; • ensuring that data and information produced from, or collected by, computers meet applicable information resource management requirements and standards; and Final EPA QA/R-2 14 March 2001 • ensuring that applicable EPA requirements for information 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 processes 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 procese which includes: - the identification and involvement of the project manager, sponsoring organization and responsible official,project 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; "EPA has developed a systematic planning process called the Data Quality Objectives(DQO)Process[See the EPA Guidance for the Data Quality Objectives Process(QA/G-4)(EPA 2000)]. While not mandatory,the DQO Process is the recommended planning approach for many EPA data collection activities. Final EPA QA/R-2 15 March 2001 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/R-S) (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,removal of obsolete documentation from work areas, and verification that the changes are made as prescribed. Final EPA QA/R-2 16 March 2001 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. Final EPA QA/R-2 17 March 2001 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. Final EPA QA/R-2 18 March 2001 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 E4-1994, Specifications and Guidelines for Quality Systems for Environmental Data Collection and Environmental Technology 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/R-S), EPA/240B-01/003,Office of Environmental Information. U.S. Environmental Protection Agency, 2000. Guidance for the Data Quality Objectives Process (QA/G-4),EPA/600/R-96/055, Office of Environmental Information. U.S. Environmental Protection Agency, 1980. Interim Guidelines and Specifications for Preparing Quality Assurance Program Plans, QAMS-004/80, Office of Research and Development. Final EPA QA/R-2 19 March 2001 (This page has been left blank intentionally.) Final EPA QA/R-2 20 March 2001 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 control 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 Final EPA QA/R-2 A-1 March 2001 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 performed the work,but are collectively equivalent in technical expertise. A peer review is conducted to ensure that activities 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, calculations, extrapolations, alternate interpretations,methodology, acceptance criteria, and conclusions pertaining to specific work and of the documentation that supports them. Final EPA QA/R-2 A-2 March 2001 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. process -a set of interrelated resources and activities which transforms inputs into outputs. Examples of processes include analysis, design, data collection, operation, fabrication, and calculation. 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 project plan - 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. 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 fulfill 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 responsibilities of management and staff, lines of authority, and required interfaces for those planning, implementing, and assessing all activities conducted. quality system- a structured and documented management system 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 planning, implementing, documenting, and assessing work performed by the organization and for carrying out required QA and QC activities. Final EPA QA/R-2 A-3 March 2001 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 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. 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 management, and reporting aspects of a system. Final EPA QA/R-2 A-4 March 2001 United States Office of Environmental EPq/240/&01/003 Environmental F,—ection Information March 2001 EXHIBIT A-3 Agency Washington, DC 20460 „EPA EPA Requirements for Quality Assurance Project Plans EPA QA/R-5 { r 1 t�- x� �rt FOREWORD The U.S. Environmental 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 needed for environmental decisions and to describe the methods for collecting and assessing those data. The development,review, approval, and implementation of the QA Project Plan is part of EPA's mandatory Quality System. The EPA Quality System requires all organizations to develop 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 organizations 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 Plans (QA/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 System Series documents which describe EPA policies and procedures for planning, implementing, and assessing the effectiveness of a quality system. Questions regarding this document or other EPA Quality System Series documents should be directed to: U.S. EPA Quality Staff(2811 R) Washington, DC 20460 Phone: (202) 564-6830 FAX: (202) 565-2441 e-mail: quality@epa.gov Copies of Quality System Series documents may be obtained from the Quality Staff or by downloading them from the Quality Staff Home Page: www.epa.gov/quality Final EPA QA/R-5 1 March 2001 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. Final EPA QA/R-5 ii March 2001 TABLE OF CONTENTS Page CHAPTER 1. INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.1 BACKGROUND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.2 QA PROJECT PLANS, THE EPA QUALITY SYSTEM,AND ANSI/ASQC 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 3.2.1 A 1 - 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 Training/Certification . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 3.2.9 A9 -Documents and Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 3.3 GROUP B: DATA GENERATION AND ACQUISITION . . . . . . . . . . . . . . . 15 3.3:1 B1- Sampling Process Design (Experimental Design) . . . . . . . . . . . . . . 16 3.3.2 B2 - Sampling Methods . . . . . . . . . . . . . . . . . . . . . . . . .'. . . . . . . . . . . 17 3.3.3 B3 - Sample Handling and Custody . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 3.3.4 B4 -Analytical Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 3.3.5 B5 -Quality Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Final EPA QA/R-5 m March 2001 Page 3.3.6 B6 - Instrument/Equipment Testing, Inspection, and Maintenance . . . . . 18 3.3.7 B7 - 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 B10 -Data Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 3.4 GROUP C: ASSESSMENT AND OVERSIGHT . . . . . . . . . . . . . . . . . . . . . . 20 3.4.1 C 1 - 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 D1 -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.1 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-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 Oversight Elements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 4. Group D: Data Validation and Usability Elements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Final EPA QA/R-5 iv March 2001 CHAPTER 1 INTRODUCTION 1.1 BACKGROUND 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 otherwise) 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 depends 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 Final EPA QA/R-5 1 March 2001 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 Guidance for the Data Quality Objectives Process (QAIG-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 Management Plan, or equivalent Quality Manual, documents how an organization structures its quality system,defines and assigns 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 (QAIR-2) (EPA 2001). The Final EPA QA/R-5 2 March 2001 Consensus Standards ANSUASQC E4 ISO 9000 Series v Internal EPA Policies External Policies J EPA Order 5360.1 Contracts-48 CPR 46 O EPA Manual 5360 Assistance Agreements- A 40 CPR 30,31,and 35 EPA Program& Regional Policy Quality System Q Documentation (e.g.,QMP) O ix I a Supporting System Elements TraininglCommunication Z O (e.g.,Procurements, (e.g.,Training Plan, aP Computer Hardware/Sofhvare) Conferences) N Z a Armual Review Systems O and Panning Assessments (e.g.,QAARWP) (e.g.,QSAs) Systematic Conduct Study/ Data Verification Planning Experiment &Validation (e.g.,DQO Process) F- W CIA per,Standard Technical Data Quality a Project Plan Operating Assessments Assessment Procedures PLANNING IMPLEMENTATION ASSESSMENT Defensible Products and Decisions Figure 1. EPA Quality System Components and Tools Final EPA QA/R-5 3 March 2001 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 equivalent 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 preparing QA Project Plans may be found in a companion document, EPA Guidance for Quality Assurance Project Plans (QA/G-5) (EPA 1998). This guidance discusses the application of the QA Project Plan requirements and provides examples. Other documents that provide guidance on activities critical to successful environmental data operations and complement the QA Project Plan preparation effort include: Final EPA QA/R-5 4 March 2001 • 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/G-6), (EPA 1995) • Guidance for Data Qualht v Assessment:Practical Methods for Data Analysis (QA/G-9), (EPA 2000a) 1.7 SUPERSESSION This document replaces QAMS-005/80,Interim Guidelines and Specifications for Preparing Quality Assurance Project Plans (EPA 1980)in its entirety. Final EPA QA/R-5 5 March 2001 i (This page is intentionally blank.) Final EPA QA/R-5 6 March 2001 CHAPTER 2 QA PROJECT PLAN REQUIREMENTS 2.1 POLICY All work funded by EPA that involves the acquisition of environmental data generated from direct measurement activities,collected from other sources, or compiled from computerized data bases and information systems shall be implemented in accordance with an approved 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 ANSUASQC 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- EPA 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 Project Plan must be composed of standardized,recognizable elements covering the entire project from planning,through implementation, to assessment. Chapter 3 of this document describes specific elements to address for QA Project Plans submitted to EPA. In some cases, it may be necessary to add special requirements to the QA Project Plan. The EPA organization sponsoring the work has the authority to define any special requirements beyond Final EPA QA/R-5 7 March 2001 those listed in this document. If no additional requirements are specified, the QA Project Plan shall address all required elements. Each EPA organization 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 the EPA QA Manager or by the EPA QA Manager alone, are defined by the EPA organization's Quality Management Plan. In some cases, the authority to review and approve QA Project Plans is delegated to another part of the EPA organization covered by the same Quality Management ' This term refers to the EPA official responsible for the project. This individual may also be called Project Officer, Delivery Order Project Officer,Work Assignment Manager,or Principal Investigator. Final EPA QA/R-5 8 March 2001 Plan. In cases where the authority to review and approve QA Project Plans is delegated in writing by EPA to another organization (i.e., a Federal agency or a State under an EPA-approved Quality Management Plan when the environmental data operation itself has been delegated to that organization for implementation),it is possible that the EPA project manager and EPA QA Manager may not be involved in the review and approval steps. 2.6 QA PROJECT PLAN IMPLEMENTATION None of the environmental work addressed by the QA Project 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 of the organization performing the work to assure that no environmental 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 revision 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-year monitoring programs or projects using a generic QA Project Plan, the QA Project Plans shall be reviewed at least annually by the EPA Project Manager(or authorized representative). When revisions are necessary, the QA Project Plan must be revised and resubmitted for review and approval. Final EPA QA/R-5 9 March 2001 (This page is intentionally blank.) Final EPA QA/R-5 10 March 2001 CHAPTER 3 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 requirements 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). Final EPA QA/R-5 11 March 2001 The QA Project Plan shall be composed of standardized,recognizable 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 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. B 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. C 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. D Data Validation and Usability-The elements in this group address the QA activities that occur after the data collection 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 objectives of the project or task. 3.2 GROUP A: PROJECT MANAGEMENT The elements in this group(Table 1) address project management, including project history and objectives,roles and responsibilities of the participants, etc. These elements document Final EPA QA/R-5 12 March 2001 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 A5 Problem Definition/Background A6 Project/Task Description A7 Quality Objectives and Criteria A8 Special Training/Certification A9 :113ocuments 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(Figure 2) on each page following the Title and Approval Sheet when required by the EPA Project Manager and QA Manager. Final EPA QA/R-5 13 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 individual 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 A5-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 schedule for implementation. Provide 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 A5. Final EPA QA/R-5 14 March 2001 3.2.7 A7 -Quality Objectives and Criteria Discuss the quality objectives for the project and the performance criteria to achieve those objectives. EPA requires the use of a systematic planning process to define these quality objectives and performance criteria. 3.2.8 A8-Special Training/Certification Identify and describe any specialized training or certifications needed by personnel in order to successfully complete the project or task. Discuss how such training will be provided 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 appropriate methods for sampling,measurement and analysis, data collection or generation, data handling, and QC activities are employed and documented. The following QA Project Plan elements describe the requirements related to the actual methods or methodology to be used for the: • collection,handling, and analysis of samples; Final EPA QA/R-5 15 March 2001 • data obtained from other sources(e.g., contained in a computer data base from previous sampling activities, compiled from surveys,taken from the literature); 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 B 1 Sampling Process Design(Experimental Design) B2 Sampling Methods B3 Sample Handling and Custody B4 Analytical Methods B5 Quality Control B6 Instrument/Equipment Testing,Inspection, and Maintenance B7 Instrument/Equipment Calibration and Frequency BS Inspection/Acceptance of Supplies and Consumables B9 Non-direct Measurements 1310. 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: • the types and numbers of samples required, • the design of the sampling network, • the sampling locations and frequencies, • sample matrices, • measurement parameters of interest, and • the rationale for the design. Final EPA QA/R-5 16 March 2001 3.3.2 B2- Sampling Methods Describe the procedures for collecting samples and identify the sampling methods and equipment, including any implementation requirements, sample preservation requirements, decontamination procedures, and materials needed for projects involving physical sampling. Where appropriate,identify sampling methods by number, date, and regulatory citation. If a method allows the user to select from various 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 corrective 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 specific performance requirements for the method. Where appropriate, analytical methods may be identified by number, date, and regulatory 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 corrective action shall be determined and documented. Specify the laboratory turnaround time needed, if important to the project schedule. List any method performance standards. If a method allows the user to select from various options, then the method citations should state exactly which options are being selected. For non-standard method applications, such as for unusual sample matrices and situations, appropriate method performance study information is needed to confirm the performance of the Final EPA QA/R-5 17 March 2001 method for the particular matrix. If previous performance studies are not available, they must be developed during the project and included as part of the project results. 3.3.5 B5 - 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 operating guidance and/or design specifications of the systems, will be assured and maintained. 3.3.7 B7-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 Final EPA QA/R-5 18 March 2001 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 recognized 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 B10- 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 satisfied. 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 Service Registry Number Data Standard(EPA Order 2180.1), Data Standards for the Electronic Final EPA QA/R-5 19 March 2001 Transmission of Laboratory Measurement Results (EPA Order 2180.2),the Minimum Set of Data Elements for Ground-Water Quality(EPA Order 7500.1A), 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 E Assessments and Response Actions R orts to Mang ement __J 3.4.1 C1 -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 objectives, 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 Final EPA QAJR-5 20 March 2001 problems and recommended solutions. Identify the preparer and the recipients 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 activities that occur after the data collection phase of the project is completed. Implementation of these elements 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 D1 Data Review, Verification, and Validation D2 Verification and Validation Methods D3 1 Reconciliation with User LeSuirements 3.5.1 D1 -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 and determine possible anomalies or departures from assumptions established in the planning phase of data collection. Describe how reconciliation with user requirements will be documented, issues will be resolved, and how limitations on the use of the data will be reported to decision makers. Final EPA QA/R-5 21 March 2001 (This page is intentionally blank.) Final EPA QA/R-5 22 March 2001 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 E4-1994,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.IA (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 Management Plans (QA/R-2),EPA/2408-01/002, Office of Environmental Information. U.S. Environmental Protection Agency, 2000a. Guidance for Data Quality Assessment: Practical Methods for Data Analysis (QA/G-9), EPA/600/R-96/084, Office of Environmental Information. Final EPA QA/R-5 23 March 2001 U.S. Environmental Protection Agency,2000b. Guidance for the Data Quality Objectives Process (QAIG-4),EPA/600/R-96/055, Office of Environmental Information. U.S. Environmental Protection Agency, 1998. Guidance for Quality Assurance Project Plans (QAIG-S), 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 (QAIG-6), EPA/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. Final EPA QA/R-5 24 March 2001 APPENDIX A CROSSWALKS AMONG QUALITY ASSURANCE DOCUMENTS A.1 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 1990). 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(QAIG-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 QA/R-5 ELEMENTS 1.0 Title Page with Provision for Al Title and Approval Sheet Approval Signatures 2.0 Table of Contents A2 Table of Contents 3.0 Project Description A5 Problem Definition/Background A6 Project/Task Description 4.0 Project Organization and A3 Distribution List Responsibility A4 Project/Task Organization A8 Special Training/Certification A9 Documents and Records 5.0 QA Objectives for Measurement A7 Quality Objectives and Criteria Data(PARCC) 6.0 Sampling Procedures B 1 Sampling Process Design B2 Sampling Methods 7.0 Sample Custody B3 Sample Handling and Custody 8.0 Calibration Procedures and B7 Instrument/Equipment Calibration and Frequency Frequency Final EPA QA/R-5 A-1 March 2001 QAMS-005/80 ELEMENTS QA/R-5 ELEMENTS 9.0 Analytical Procedures B4 Analytical Methods 10.0 Data Reduction, Validation, and D1 Data Review, Verification, and Reporting Validation D2 Verification and Validation Methods B9 Non-direct Measurements B 10 Data Management 11.0 Internal Quality Control Checks B5 Quality Control and Frequency 12.0 Performance and Systems C1 Assessments and Response Actions 13.0 Preventive Maintenance B6 Instrument/Equipment Testing, Inspection, and Maintenance 14.0 Specific Routine Procedures Mea- D3 Reconciliation with User Requirements surement Parameters Involved 15.0 Corrective Action C1 Assessments and Response Actions 16.0 QA Reports to Management C2 Reports to Management Final EPA QA/R-5 A-2 March 2001 O cd ca O Lz. 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Final EPA QA/R-5 A-6 March 2001 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-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. 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, 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. Final EPA QA/R-5 B-1 March 2001 environmental data operations -work performed to obtain,use, or report information pertaining to environmental processes and conditions. environmental processes -manufactured or natural processes that produce discharges to or that impact the ambient environment. 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 control 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 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 goverment)to another organization for the purpose of performing work or furnishing services or items. Financial assistance mechanisms include grants, cooperative 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, organizing, directing,training and controls associated with information. The term encompasses both information itself and related resources such as personnel, equipment, funds and technology. 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. Final EPA QA/R-5 13-2 March 2001 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)systematically 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 requirements established by the customer; operational techniques and activities that are used to fulfill requirements for quality. 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 a quality system in terms of the organizational structure,policy and procedures, functional responsibilities of management and Final EPA QA/R-5 B-3 March 2001 staff, lines of authority, and required interfaces for those planning,implementing,documenting, and assessing all activities conducted. quality system - a structured and documented management system 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 planning, 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 activity. 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-confirmation by examination and provision of objective evidence that specified requirements have been fulfilled. In design and development, verification concerns the process of examining a result of a given activity to determine conformance to the stated requirements for that activity. Final EPA QAlR-5 B-4 March 2001 FORM B-7 ITUXAS NATURAL RESOURCE CONSERVATION COM IISSION ALLOWABLE EXPENDITURE GUIDELINES Preface Background At the Single Audit Managers' Forum(SAME)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 included in Uniform Grant Management Standards(tJGMS)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. When OMB 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. Development 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-87s"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 Resource Conservation Commission Allowable Expenditure Guidelines". The guidelines provide a statewide definition of"reasonable and necessary"as used in OMB 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 "Reasonable 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 finds 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 CON MUSSION ALLOWABLE 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 fiords. ATTACHvt1;'N'T A-General Principles for Determining 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 (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 where 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 organization 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(OMB)encourages Federal agencies to test fee-for-service alternatives as 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. This 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 OMB 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 OMB 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 r y 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 approval. 2. "Award"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 water 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. "Cognizant 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. OMB publishes a listing of cognizant agencies. [See"state single audit coordinating agency"] 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 authorization 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(including 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 fiord. - 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. Basic Guidelines (1)0) definition of"adequately documented' 13."Federally-recognized 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 fimction 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. 210(b)of that circular lists the following characteristics, 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 compared 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 malting 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 be present and judgement should be used in determining whether an entity is a subrecipient or a vendor." 16."Grantee department or agency"means 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. IS. "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 J 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 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,territory 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 of 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 must 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 Federal 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 purpose 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. i. 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=den_t person under the circumstances prevailing at the time the decision was made to incur the cost. The question of reasonableness is I particulaly j=rtant when, govemmental units or components are predominantly state or federally-funded. In determining reasonableness of a given cost. consideration shall be given tm- ! a. Whether the cost is of a type generally recognized as ordinary and necessary for the operation of the governmental unit or the performance of the Federal or state award. b. The restraints or requirements imposed by such.factors as:sound business practices; i 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 7 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 fimd 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,and E. 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 state 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. 8 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 1. 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. General. 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 accounting treatment for that item of cost is consistently applied to all cost objectives. 9 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 centralized services included in central service cost allocation plans as described in Attachment C. 10 H. Required Certifications Each cost allocation plan or indirect cost rate proposal required by Attachments 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 cognizant 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 costs have been certified by the governmental unit using the Certificate of Cost Allocation Plan or Certificate of Indirect Costs asset forth in Attachments C and E. The 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 it 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 historical data or such other data that have been furnished to the cognizant 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. 11 ATTACBNIE14T 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 surplus 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 the 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; 1 (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,and 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 with 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 state 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 2 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 finds. Generally,the percentage derived by dividing Federal or state fiords 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 indirect.cost 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 additional 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. 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 are unallowable 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 governmental 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 followed by the governmental unit 4 (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 genial 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,health,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 are 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. (1) 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 cognizant agency)are allowable in the year fimded. The cognizant 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 reimbursement and the governmental unit's contribution to the pension fund. 5 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 fimd. (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 fimded. The cognizant 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 refimd,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 6 (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 period 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) The Federal Government or the state grantor agency shall receive an equitable share of any amounts ofpreviously 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. (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 least 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 more 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 reached due to termination of employment,lack of forwarding address,death or other documented reason. 8 (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 performed; (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 support 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 if it 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 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 sharing 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 are 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 subrecipien% 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 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 1 Le.), post-retirement health and other benefits reserves(see subsection 1 l.f.)computed using 10 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 polo 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 hand 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 _ equipment,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 of land; (2) Any portion of the cost of buildings and equipment bome 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 15-year useful life depreciation schedule. 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, technological 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 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 years 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 (or improvements)that have a useful life greater that one year and have not been.eapended 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 addressing depreciable lives should be considered. These additional guidelines are intended to further consistency among organizations. -+ If 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 years. 13 -► 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 Proper Includes: 5 Year Property Automobiles,Buses and Trucks,Computers.and Peripheral Equipment,and Property used in research and experimentation 15 Year Property Office Furniture and Fixtures 15 Year Property Office Equipment(other than computers) 10 Year Property Water Transportation Equipment(including boats, barges,tugs,etc.) Useful Life Property Includes: Best Estimate of Useful Non-residential Real Property, Office Buildings,and Life 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. IS.Employee morale,health,and.welfare costs. The costs of health or first-aid clinics and/or infirmaries,recreational facilities, employee counseling services,employee information publications,and any related expenses incurred in accordance with a governmental unit's 14' FoHcv 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, employee performance and health. b. Acceptable recreational facilities are those facilities intended to promote health maintenance.Facilities that require a restricted membership and/or their main objective is to provide social activities among the members,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 and are i directly related to the program's purpose. In that case,the cost must be charged as direct costs. f 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 the purpose for which it is acquired. Ancillary charges,such as taxes,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 accounting 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$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 cognizant agency. . f. When replacing equipment purchased in whole or in part with Federal or state fiords,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 awarding agency, a capitalization fund may be established to fund the acquisition of replacement or improved equipment. i 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 aad 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 are unallowable. 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 26A. (d) Compensation for the use of the property was provided through use allowances in lieu of depreciation. 17 b. Substaritial relocation of Federal or state awards from a facility where the Federal Government or state participated in the financing 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 require negotiation of space charges for Federal or state awards. 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 or 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. 24.General government expenses. a. The general costs of government are unallowable(except as provided in section 43). These include: (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,tn'bal councils,or similar local governmental bodies,such as county supervisors,city-,councils,school boards,etc., whether incurred for purposes of legislation or executive direction; (3) Cost of the judiciary branch of a government;:. (4) Cost of prosecutorial activities unless treated as a direct cost to a specific program when authorized by program regulations.(however,this does not preclude the allowability of other legal activities of the Attorney.General);and (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. b. For federally-recognized Indian tribal governments and Councils of Governments (COGS),the portion of salaries-and expenses directly attributable to managing and operating Federal or state programs by the chief executive and his staff is allowable. 25.Idle facilities and idle capacity. - a. As used in this section the following terms have the,meanings set forth below: (1) "Facilities"means land and buildings or any portion thereof,equipment individually l8 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 facilities that are excess to the governmental units 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 interruptions 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 during the accounting period. A multi-shift basis should be used if it 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.,insurance,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,depending 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. I 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;in 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 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 msurance in connection with the general conduct of activities are allowable subject to the following limitations: (1) Types and extent and cost of coverage are 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-insurance 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 had 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. The 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. P ma I.: . . (2) Earnings or investment income on reserves must 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 Vdate at least biennially for each major risk being insured and taken into account any reinsurance,coinsurance, etc.Reserve levels related to employee-related coverages will normally be limited to the value of claims(a)submitted and adjudicated but not paid,(b)submitted but not adjudicated, and(c)incurred but not submitted. Reserve levels in excess of the amounts based on the above must be identified and justified in the cost allocation plan or indirect cost rate proposal. (4) Accounting records,actuarial studies,and cost allocations.(or billings)must recognize any significant differences due to types of insured risk and losses generated by the various insured activities or agencies of the govesnmental unit. If individual departments or agencies of the governmental unit 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 resulting in an equitable allocation. (5) Whenever funds are transferred from a self-insurance 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. (6) All transactions must comply with state law: E e. Actual claims paid to or on behalf of employees.or former employees for workers' compensation,unemployment compensation, severance pay, and similar employee benefits(e.g.,subsection 1 l.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 administrative expense 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 insurance costs in the year the refund is received. _ r•y g. Indemnification includes securing the governmental_unit against liabilities to third persons and other losses not compensated by ijcmance or otherwise. The Federal Government or state is obligated to indemnify the governmental 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 against the 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 unallowable if the organization is named as the beneficiary. 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 authorized by Federal or state legislation. b. Financing costs(including interest)paid or incurred on or after the effective 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). (1) The financing is provided(from other than tax or user fee sources)by a bona fide third party external to the governmental unit; i (2) The assets are used in support of Federal or state awards; (3) Earnings on debt service reserve funds or'interest earned on borrowed funds pending payment of 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 under arbitrage 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 procedure,through in kind or cash contributions,endorsements,publicity,or similar activity. Personnel travel or other costs of employees or board members for this type of activity is also unallowable; 2. Establishing,administrating,contributing to,or paying the expenses of a political 22 party, campaign,political action comnilttee�or other organization influencing the outcomes of elections; a. Any attempt to influence: f 1. The introduction of federal or state legislation,or 2. The enactment or modification of any pending federal or state legislation through communication with any member/employee or Congress/state legislature,or with any government officisNemployee in connection with a decision to sign or veto enrolled legislation,'by preparing,distributing, or using publicity/propaganda,or by urging members of the general public or any segment thereof to contribute to or to participate in any mass demonstration, march,rally,fundraising drive,lobbying campaign or letter writing or telephone campaign,or 3. Legislative liaison activities,including attendance at legislative sessions or committee hearings, gathering information regarding legislation, coordinating the communication of board members and 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 aii effort to engage in unallowable lobbying. 29.Maintenance,operations, and repairs. Unless prohibited by-law,the cost of utilities, insurance,security,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 renid 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). _ E 30.Materials and supplies. The cost of materials and supplies is allowable. Purchases should be charged at their actual prices after deducting all cash discount Orade discounts,rebates,and allowances received. Withdrawals from general stores or s6d.a o"ms should be charged at cost under any recognized method of pricing, consistenO aPPlied:411coming transportation charges are a proper part of materials and supply costs.z0 f_ G 31.Memberships,subscriptions, and professional activities. a. Costs of the governmental unit's memberships in business,technical,and professional organizations are allowable. However,the following limitations shall be followed to ensure the membership costs are consistent with othii" rgaMritions, are reasonable,and allowable: �`�` 23 1. Recipients must select the lowest level of membership available to obtain the necessary benefits. Benefits of the membeitbip is 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 indirect costs if they benefit all programs. 3. Costs of membership in organizations substantially engaged in lobbying are unallowable. Except as authorized by law no f Lilds 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. 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 organizations substantially engaged in lobbying are unallowable. 32.Motor pools. The costs of a service organization which provides automobiles to user governmental units at a mileage or fixed rate and/or provides vehicle maintenance, inspection,and repair services are allowable. yxn Y-YL- 33.Pre-award costs. Pre-award costs are those incurred prior to thi effective date of the award directly pursuant to the negotiation and in anticipation of the k*wd 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 awarding agency. -The approval shall specify the period allowed for incurring costs and the type of costs allowed. 34.Professional and consultant service costs. -a. Cost ofprofessional and consultant services rendered by persons or organizations 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 15 when reasonable 24 in relation to the services rendered and when not cogent 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 evidence of bona fide services available or rendered are allowable. In determining the allowability of professional service costs,no single factor or any special combination of factors is necessarily determinative. However,the following factors are relevant: 1. The nature and scope of the service rendered in relation to the service required; 2. The qualifications of the individual or concern rendering the service; 3. The necessity of contracting for the service considering the organization's capability in the particular areas; 4. The past pattern of such costs; particularly in the years prior to receiving state awards; 5. Whether the services can be performed more economically by direct employment rather than contracting; and 6. To ensure reasonable costs,the contractual and consultant services must be procured following the state procurement guidelines requirements established in the Uniform Grant Management Standards,Grant Administration Section, Subpart C(36)Procurement. <w _ In addition,the signed contract controls how payments are,made. For example,if _ consultants are budgeted on an hourly rate,documentation of time 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 intent is to cost the final. product,the budget line-item and the consultant agreement-shall be structured to reflect that intent. In addition, costs of retainer fees to the allowable professional service provider must be supported by evidence of bona fide services available or rendered. Costs of hiring non-employee accountants, consultants,and lawyers to dispute funding agency audits,reviews or monitoring reports shall require approval from the funding program or oversight agency. Such costs shall be considered direct costs and are not.allowable as indirect costs.. - .. 25 35. Proposal costs. Costs of preparing proposals.for-P Feder or state awards are allowable. Proposal costs should normally be as indirect costs and should be allocated to all activities of the governmental tmit uh-lizing the cost allocation plan and indirect cost rate proposal. However,proposal costs may be charged directly to Federal or state awards with the prior approval of the Federal-or-stii-awarding agency. 36. Publication and printing costs. Publication costs,-including the costs of printing (including the processes of composition,plate-making,pry wow aad binding,and the end products produced by such processes), distribution,promotion,loaning;and general handling are allowable. 37. 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 stale awarding agency. 38.Reconversion costs. Costs incurred in the restoration o'itihabilitation of the governmental unit's facilities to approximately the same condition exis ft immediately 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. 39.Rental costs. . sre s OW a. Subject to the limitations described in subsections b.tliroiigh`t rof this section,rental costs are allowable to the extent that the rates are reasonablein light of such factors as: rental costs of comparable property, if any;market coaditi s'"m the area;alternatives available; and,the type, life expectancy, condition,and value:of the property leased. Rationale for rental choices must be properly documented.' b. Rental costs under sale and leaseback arrangements are allowable only up to the amount that would be allowed had the governmental unit continuoa;tio;oWh the property. c. Rental costs under less-than-arms-length leases are alloarable only up to the amount that would be allowed had the title to'the property vested in theeianiental unit For.this purpose,less-than-arms-length leases include,but are no�Iimrted to,those where: - (1) One party to the lease is able to control or substanfially'uillu�enie the actions of the other; i�r3:. (2) Both parties are parts of the same governmental (3) The governmental unit creates an authority or similar entrtyo`aequire and lease facilities to the governmental unit and other parties= 4' ' �'� ty 26 k f d. Rental costs under leases which are requd to be mated as capital leases under GAAP are allowable only up to the amount that would be allowed had the governmental unit purchased the property,on the date the lease agreement was executed. This amount would include expenses such as depreciation or use allowance,maintenance,and insurance. -The el provisions of Financial Accounting Standards Board Statement 13 shall be used to detennine whether a lease is a capital lease-:Interest costs related to capital leases are allowable to the extent they meet the criteria in section 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. Any fund returned to guarantee or subrecipient 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..This provision becomes effective for taxes paid during the governmental unit's first fiscal.year that begins on or after January 1, 1998,and applies thereafter. •; : ..,:; ,.:.: b. Gasoline taxes,motor vehicle taxes,and other taxes that 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 identification 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'dev_elopment is allowable. .�Ir AIC a. In reviewing training cost,the following factors should be considered to ensure cost reasonableness and consistency: 1. The training or education costs are consistently kcurred:pursuant to an established training and education program,and; 2. The course or degree pursued,if applicable,is related to the field in which the employee is now working or may reasonably be expected to work. Costs of preparation and maintenance of an instruction program including but not limited to on-the-job, classroom,and apprenticeship.t;sining,designed for. vocational effectiveness of employees,are allowable. :These.costs 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 a 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 pursued is relative to the field in which the employee is now 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 traveling 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 prescribes 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 governmental =ifs policy. (That is,the grantee's policies). In the absence of a written 28 M govemmental unit policy regarding travel costs,the rates and amounts established under subchapter I 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 state 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 Texas Travel Allowance Guide and the federal General Service Administration travel regulations. This same travel provision should be used for board members. In the event 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 urnit'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 . T , d. Air travel by other than commercial carrier. Cost of travel by govemmental 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,-leased,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 falfill 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 less 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 the cost attributable to business and personal use. These logs shall be used to-determine the allowable portion of 30 ___ i the automobile total cost. c. Costs associated with the personal use of organization-furnished automobiles are not allowed. c. Cost associated with the personal use of organization-furnished automobiles are not allowed. d. Relocation Costs 1. The following recruiting costs are allowable: a. Reimbursement for fees and other costs associated with acquiring a new home; ' b. Reimbursement for loss on the sale of a forcer home; c. Reimbursement for continuing mortgage principal and interest payments on a house being sold; and d. Reimbursement for income taxes paid by an employee related to reimbursed relocation costs; tTj4,-,�F '• �[^' :lit^..•.... .. 'r.�• ..:taw" - Y a i.I:''.. _ .nay. Page 1 of 2 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 7/24/2007 - Ord. No. 17669-07-2007 DATE: Tuesday, July 24, 2007 LOG NAME: 52TCEQ SEC105 REFERENCE NO.: **C-22266 SUBJECT: Authorization to Enter Into an Interlocal Agreement with 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 an agreement with the Texas Commission on Environmental Quality (TCEQ) for air pollution control services by the City with a maximum amount of$206,934 for a two- year term of September 1, 2007 through August 31, 2009; 2. Authorize a non-interest bearing inter-fund loan from the Environmental Management Operation Fund to the Grants Fund in the amount of$25,867 for interim financing for this grant pending contract execution; 3. Authorize the use of $101,922 from the General Fund as an in-kind match for the two-year term of September 1, 2007 through August 31, 2009; 4. Adopt the appropriation ordinance increasing estimated receipts and appropriations in the Grants Fund by $308,856 for grant years 2007-2008 through grant years 2008-2009, 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 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 cooperation 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 per year. The City must provide matching funds such that the combined federal and state share of the total funding for the City of Fort Worth Air Pollution Control Program shall not exceed 67 percent. The matching funds must be allocated per maintenance of effort requirements for federal air pollution grants. A portion of the $283,233 Environmental Management Department Air Quality Section General Fund budget proposed for grant years 2007-2008 is budgeted and will be used as the required 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. http://www.cfwnet.org/council_packet/Reports/mc_print.asp 9/19/200' Page 2 of FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that upon approval of the above recommendations, adoption of the attached appropriation ordinance and execution of a grant agreement, 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 inter-fund loan of $25,867 will be returned to the Environmental Management Operating Fund. TO Fund/Account/Centers FROM Fu nd/Accou nt/C enters GR76 220103 000412208000 $25,867.00 R103 136076 0000000 $25,867.00 GR76 451543 052412208000 $206,934.00 GR76 488279 052412208000 $101,922.00 GR76 5 $206,934.00 (VARIOUS) 052412208010 GR76 517040 052412208020 $101,922.00 Submitted for City Manager's Office lb Libby Watson (6183) Originating Department Head: Brian Boerner (6647) Additional Information Contact: Michael Gange (6569) http://www.cfwnet.org/council_packet/Reports/mc_print.asp 9/19/200'