The grantee shall include, in addition to provisions to define a sound and complete agreement, the following provisions in all contracts and subgrants:
(a) Contracts shall contain such contractual provisions or conditions which shall allow for administrative, contractual or legal remedies in instances where contractors violate or breach contract terms and provide for such remedial actions as appropriate.
(b) All contracts, amounts for which are in excess of ten thousand dollars ($10,000) shall contain suitable provisions for termination by the grantee including the manner by which it will be effected and the basis for settlement. In addition, such contracts shall describe conditions under which the contract may be terminated for default as well as conditions where the contract may be terminated because of circumstances beyond the control of the contractor.
(c) In all contracts for construction or facility improvement awarded in excess of one hundred thousand dollars ($100,000), grantees shall observe the bonding requirements provided in attachment B to this circular.
(d) All construction contracts awarded by recipients and their contractors or subgrantees having a value of more than ten thousand dollars ($10,000) shall contain a provision requiring compliance with Executive Order No. 11246, entitled Equal Employment Opportunity, as amended by Executive Order No. 11375, and as supplemented in Department of Labor regulations (41 CFR, part 60).
(e) All contracts and subgrants for construction or repair shall include a provision for compliance with the Copeland Anti-Kick Back Act (18 U.S.C. 874) as supplemented in Department of Labor regulations (29 CFR, part 3). This Act provides that each contractor or subgrantee shall be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he is otherwise entitled. The grantee shall report all suspected or reported violations to the grantor agency.
(f) All construction contracts awarded by grantees and subgrantees in excess of two thousand dollars ($2,000) shall include a provision for compliance with the Davis- Bacon Act (40 U.S.C. 276a to a-7) and as supplemented by Department of Labor regulations (29 CFR, part 5). Under this Act contractors shall be required to pay wages to laborers and mechanics at a rate not less than the minimum wages specified in a wage determination made by the Secretary of Labor. In addition, contractors shall be required to pay wages not less often than once a week. The grantee shall place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation and the award of a contract shall be conditioned upon the acceptance of the wage determination. The grantee shall report all suspected or reported violations to the grantor agency.
(g) Where applicable, all contracts awarded by grantees and subgrantees in excess of two thousand dollars ($2,000) for construction contracts and in excess of two thousand five hundred dollars ($2,500) for other contracts which involve the employment of mechanics or laborers shall include a provision for compliance with sections 103 and 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 327-330) as supplemented by Department of Labor regulations (29 CFR, part 5). Under section 103 of the Act, each contractor shall be required to compute the wages of every mechanic and laborer on the basis of a standard workday of eight hours and a standard workweek of forty hours. Work in excess of the standard workday or workweek is permissible provided that the worker is compensated at a rate of not less than one and one half times the basic rate of pay for all hours worked in excess of eight hours in any calendar day or forty hours in the workweek. Section 107 of the Act is applicable to construction work and provides that no laborer or mechanic shall be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous to his health and safety as determined under construction, safety and health standards promulgated by the Secretary of Labor. These requirements do not apply to the purchase of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence.
(h) Contracts or agreements, the principal purpose of which is to create, develop or improve products, processes or methods; or for exploration into fields which directly concern public health, safety or welfare or contracts in the field of science or technology in which there has been little significant experience outside of work funded by federal assistance, shall contain a notice to the effect that matters regarding rights to inventions, and materials generated under the contract or agreement are subject to the regulations issued by the federal grantor agency. The contractor shall be advised as to the source of additional information regarding these matters.
(i) All negotiated contracts, except those of ten thousand dollars ($10,000) or less, awarded by grantees shall include a provision to the effect that the grantee, the federal grantor agency, the Comptroller General of the United States or any of their duly authorized representatives shall have access to any books, documents, papers and records of the contractor which are directly pertinent to a specific grant program for the purpose of making audit, examination, excerpts and transcriptions.
(j) Contracts and subgrants of amounts in excess of one hundred thousand dollars ($100,000) shall contain a provision which requires the recipient to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act of 1970 (42 U.S.C. 1857 et seq.) and the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.) as amended. Violations shall be reported to the grantor agency and the regional office of the Environmental Protection Agency.
(1967 Code §2-70)