[Federal Register Volume 60, Number 199 (Monday, October 16, 1995)]
[Rules and Regulations]
[Pages 53513-53528]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-25548]



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NATIONAL ARCHIVES AND RECORDS ADMINISTRATION

36 CFR Part 1210

RIN 3095-AA43


Uniform Administrative Requirements for Grants and Agreements 
With Institutions of Higher Education, Hospitals and Other Non-Profit 
Organizations

AGENCY: National Archives and Records Administration.

ACTION: Interim final rule with request for comments.

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SUMMARY: In response to the requirement of the Office of Management and 
Budget (OMB) for agencies to publish regulations incorporating the 
revised OMB Circular A-110, ``Uniform Administrative Requirements for 
Grants and Agreements With Institutions of Higher Education, Hospitals 
and Other Non-Profit Organizations,'' the National Archives and Records 
Administration (NARA) is herewith adopting that circular, with certain 
modifications, in regulations which apply to grants administered by the 
National Historical Publications and Records Commission (NHPRC). The 
regulation will provide standards for obtaining consistency and 
uniformity in the administration of grants and agreements with 
institutions of higher education, hospitals, and other non-profit 
organizations. This regulation will not address requirements related to 
construction programs since the NHPRC does not make construction 
grants.

DATES: This interim rule is effective November 15, 1995.
    Comments must be received by December 15, 1995.

ADDRESSES: Comments should be sent to Director, Policy and Planning 
Division, National Archives and Records Administration (PIRM-POL), 8601 
Adelphi Road, College Park, MD 20740-6001. Comments may be faxed to 
(301) 713-7270.

FOR FURTHER INFORMATION CONTACT: Mary Ann Hadyka or Nancy Allard at 
(301) 713-6730.

SUPPLEMENTARY INFORMATION:

Background

    This interim final rule incorporates and reflects the provisions of 
the Office of Management and Budget (OMB) issuance of revised OMB 
Circular A-110 at 58 FR 62992 in a new 36 CFR part 1210. OMB Circular 
A-110 was originally issued by OMB in 1976 with minor revisions made in 
1987. OMB published a notice in the Federal Register (57 FR 39018) on 
August 27, 1992, requesting comments on proposed revisions to OMB 
Circular A-110. Interested parties were invited to submit comments. OMB 
received over 200 comments from Federal agencies, non-profit 
organizations, professional organizations and others. All comments were 
considered in a final revision of Circular A-110 which was issued for 
governmentwide use in the Federal Register on November 29, 1993. 
Consequently, this rule is published as an interim final rule because 
of the previous request for comment process used in the development of 
the Circular, the large number of comments already received and 
considered by OMB and the Federal agencies, and the limited flexibility 
to revise this rule provided by OMB.

National Historical Publications and Records Commission Grant 
Program

    The purpose of the National Historical Publications and Records 
Commission (NHPRC) is to promote the preservation and use of 
historically significant documents. The Archivist of the United States 
awards grants recommended by the NHPRC. Grants are made for the 
preparation (compiling, editing and publishing) of printed, microforms, 
and electronic publications; to nonprofit presses to help defray 
publication costs of Commission-supported editions; and for activities 
relating to the preservation, arrangement and description of historical 
records. Educational programs sponsored by the NHPRC include an 
institute to provide training in documentary editing and fellowships in 
the fields of documentary editing and archival administration. Since 
NHPRC grants can be awarded to institutions of higher education, 
hospitals, and other non-profit organizations to which the revised OMB 
Circular A-110 applies, NARA is including provisions of the circular, 
with some modifications, as a part in their regulations. The Catalog of 
Federal Domestic Assistance (CFDA) number for this program is 89.003.

Modifications to ``Common Rule'' Provisions of OMB Circular A-110

    In certain sections of the Circular, alternative requirements are 
offered, depending on the Federal awarding agency's requirements. Where 
appropriate, NARA has specified the alternative to be followed. In 
Sec. 1210.25(a), for example, the regulation specifies that the budget 
plan shall include both the Federal and non-Federal share, an NHPRC 
requirement; the Circular provided that the budget plan may include 
either the Federal and non-Federal share, or only the Federal share, 
depending on the agency's requirements. In Sec. 1210.51(b), NARA has 
specified the reporting frequency that is already required in 36 CFR 
1206.78 instead of listing all of the common rule allowed reporting 
frequencies. In Sec. 1210.52(a)(1)(ii), we have specified that the 
report shall be on a cash basis instead of the alternative accrual 
basis.
    Because the NHPRC does not make construction grants, NARA has not 
included in this part Circular A-110 requirements related to 
construction programs. Although we recognize that a ``common rule'' or 
uniform regulation issued by all grant-making agencies facilitates 
compliance, we believe that this benefit is offset by the potential for 
confusion over regulatory provisions that are not applicable to the 
grant program. We specifically invite comments on this point.

Other

    This rule is being issued as an interim final rule under the 
Administrative Procedures Act which permits an agency to issue a final 
rule without a prior notice of proposed rulemaking (NPRM) if the agency 
finds that issuing an NPRM would be impractical, unnecessary, and 
contrary to the public interest. As stated in the background paragraphs 
of the supplementary information section of the preamble, this rule is 
based on the revised OMB Circular A-110, that was developed by an 
interagency task force and received extensive public comment. The 
revised Circular specifies that Federal agencies responsible for 
awarding and administering grants and other agreements to recipients 
described therein shall adopt the language in the Circular unless other 
provisions are required by Federal statute or exceptions or deviations 
are approved by OMB. This publication of an interim final rule solicits 
comments on these specific grounds, that is whether there are any 
reasons to deviate from the language of the OMB Circular that are 
required by Federal statute or of sufficient import to warrant 
soliciting OMB's approval for a change. It should be noted that because 
the interim final rule is required to adopt the provisions of the 
Circular to the maximum extent possible, even word-for-word if possible 
as is done here, a Notice of Proposed Rulemaking would be inappropriate 
and would not allow the public to make comments that could have a 
significant impact on the rule. This would make such an effort 
impractical, unnecessary, and contrary to public interest.
    This rule is a significant regulatory action for purposes of 
Executive Order 

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12866 of September 30, 1993, and has been reviewed by the Office of 
Management and Budget. As required by the Regulatory Flexibility Act, 
it is hereby certified that this rule will not have a significant 
impact on small entities.

List of Subjects in 36 CFR Part 1210

    Accounting, Administrative practice and procedure, Grant programs, 
Grants administration, Insurance, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, NARA is adding Part 1210 
to Subchapter A of Title 36 of the Code of Federal Regulations to read 
as follows:

PART 1210--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND 
AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, AND 
OTHER NON-PROFIT ORGANIZATIONS

Subpart A--General

Sec.
1210.1  Purpose.
1210.2  Definitions.
1210.3  Effect on other issuances.
1210.4  Deviations.
1210.5  Subawards.

Subpart B--Pre-Award Requirements

1210.10  Purpose.
1210.11  Pre-award policies.
1210.12  Forms for applying for Federal assistance.
1210.13  Debarment and suspension.
1210.14  Special award conditions.
1210.15  Metric system of measurement.
1210.16  Resource Conservation and Recovery Act.
1210.17  Certifications and representations.

Subpart C--Post-Award Requirements

Financial and Program Management

1210.20  Purpose of financial and program management.
1210.21  Standards for financial management systems.
1210.22  Payment.
1210.23  Cost sharing or matching.
1210.24  Program income.
1210.25  Revision of budget and program plans.
1210.26  Non-Federal audits.
1210.27  Allowable costs.
1210.28  Period of availability of funds.

Property Standards

1210.30  Purpose of property standards.
1210.31  Insurance coverage.
1210.32  Real property.
1210.33  Federally-owned and exempt property.
1210.34  Equipment.
1210.35  Supplies and other expendable property.
1210.36  Intangible property.
1210.37  Property trust relationship.

Procurement Standards

1210.40  Purpose of procurement standards.
1210.41  Recipient responsibilities.
1210.42  Codes of conduct.
1210.43  Competition.
1210.44  Procurement procedures.
1210.45  Cost and price analysis.
1210.46  Procurement records.
1210.47  Contract administration.
1210.48  Contract provisions.

Reports and Records

1210.50  Purpose of reports and records.
1210.51  Monitoring and reporting program performance.
1210.52  Financial reporting.
1210.53  Retention and access requirements for records.

Termination and Enforcement

1210.60  Purpose of termination and enforcement.
1210.61  Termination.
1210.62  Enforcement.

Subpart D--After-the-Award Requirements

1210.70  Purpose.
1210.71  Closeout procedures.
1210.72  Subsequent adjustments and continuing responsibilities.
1210.73  Collection of amounts due.

Appendix A--Contract Provisions

    Authority: 44 U.S.C. 2104(a); 44 U.S.C. 2501-2506.

Subpart A--General


Sec. 1210.1  Purpose.

    This part establishes uniform administrative requirements for NHPRC 
grants and agreements awarded to institutions of higher education, 
hospitals, and other non-profit organizations. Non-profit organizations 
that implement NHPRC programs for the States are also subject to State 
requirements.


Sec. 1210.2  Definitions.

    (a) Accrued expenditures means the charges incurred by the 
recipient during a given period requiring the provision of funds for:
    (1) Goods and other tangible property received;
    (2) Services performed by employees, contractors, subrecipients, 
and other payees; and,
    (3) Other amounts becoming owed under programs for which no current 
services or performance is required.
    (b) Accrued income means the sum of:
    (1) Earnings during a given period from
    (i) Services performed by the recipient, and
    (ii) Goods and other tangible property delivered to purchasers, and
    (2) Amounts becoming owed to the recipient for which no current 
services or performance is required by the recipient.
    (c) Acquisition cost of equipment means the net invoice price of 
the equipment, including the cost of modifications, attachments, 
accessories, or auxiliary apparatus necessary to make the 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 recipient's regular accounting 
practices.
    (d) Advance means a payment made by Treasury check or other 
appropriate payment mechanism to a recipient upon its request either 
before outlays are made by the recipient or through the use of 
predetermined payment schedules.
    (e) Award means financial assistance that provides support or 
stimulation to accomplish a public purpose. Awards include grants and 
other agreements in the form of money or property in lieu of money, by 
the NHPRC to an eligible recipient. The term does not include: 
technical assistance, which provides services instead of money; other 
assistance in the form of loans, loan guarantees, interest subsidies, 
or insurance; direct payments of any kind to individuals; and, 
contracts which are required to be entered into and administered under 
procurement laws and regulations.
    (f) Cash contributions means the recipient's cash outlay, including 
the outlay of money contributed to the recipient by third parties.
    (g) Closeout means the process by which the NHPRC determines that 
all applicable administrative actions and all required work of the 
award have been completed by the recipient and the NHPRC.
    (h) Contract means a procurement contract under an award or 
subaward, and a procurement subcontract under a recipient's or 
subrecipient's contract.
    (i) Cost sharing or matching means that portion of project or 
program costs not borne by the NHPRC.
    (j) Date of completion means the date on which all work under an 
award is completed or the date on the award document, or any supplement 
or amendment thereto, on which NHPRC sponsorship ends.
    (k) Disallowed costs means those charges to an award that the NHPRC 
determines to be unallowable, in accordance with the applicable Federal 
cost principles or other terms and conditions contained in the award.
    (l) Equipment means tangible nonexpendable personal property 
including exempt property charged directly to the award having a useful 
life of more than one year and an acquisition cost of $5,000 or more 
per 

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unit. However, consistent with recipient policy, lower limits may be 
established.
    (m) Excess property means property under the control of the NHPRC 
that, as determined by the head thereof, is no longer required for its 
needs or the discharge of its responsibilities.
    (n) Exempt property means tangible personal property acquired in 
whole or in part with NHPRC funds, where the NHPRC has statutory 
authority to vest title in the recipient without further obligation to 
the Federal Government. An example of exempt property authority is 
contained in the Federal Grant and Cooperative Agreement Act (31 U.S.C. 
6306), for property acquired under an award to conduct basic or applied 
research by a non-profit institution of higher education or non-profit 
organization whose principal purpose is conducting scientific research.
    (o) Federal awarding agency means the Federal agency that provides 
an award to the recipient.
    (p) Federal funds authorized means the total amount of NHPRC funds 
obligated by the Federal Government for use by the recipient. This 
amount may include any authorized carryover of unobligated funds from 
prior funding periods when permitted by NHPRC regulations or NHPRC 
implementing instructions.
    (q) Federal share of real property, equipment, or supplies means 
that percentage of the property's acquisition costs and any improvement 
expenditures paid with NHPRC funds.
    (r) Funding period means the period of time when NHPRC funding is 
available for obligation by the recipient.
    (s) Intangible property and debt instruments means, but is not 
limited to, trademarks, copyrights, patents and patent applications and 
such property as loans, notes and other debt instruments, lease 
agreements, stock and other instruments of property ownership, whether 
considered tangible or intangible.
    (t) NARA means the National Archives and Records Administration.
    (u) NHPRC means the National Historical Publications and Records 
Commission.
    (v) Obligations means the amounts of orders placed, contracts and 
grants awarded, services received and similar transactions during a 
given period that require payment by the recipient during the same or a 
future period.
    (w) Outlays or expenditures means 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 cash disbursements for 
direct charges for goods and services, the amount of indirect expense 
charged, the value of third party in-kind contributions applied and the 
amount of cash advances and payments made to subrecipients. For reports 
prepared on an accrual basis, outlays are the sum of cash disbursements 
for direct charges for goods and services, the amount of indirect 
expense incurred, the value of in-kind contributions applied, and the 
net increase (or decrease) in the amounts owed by the recipient for 
goods and other property received, for services performed by employees, 
contractors, subrecipients and other payees and other amounts becoming 
owed under programs for which no current services or performance are 
required.
    (x) Personal property means property of any kind except real 
property. It may be tangible, having physical existence, or intangible, 
having no physical existence, such as copyrights, patents, or 
securities.
    (y) Prior approval means written approval by an authorized official 
evidencing prior consent.
    (z) Program income means gross income earned by the recipient that 
is directly generated by a supported activity or earned as a result of 
the award (see exclusions in Sec. 1210.24 (e) and (h)). Program income 
includes, but is not limited to, income from fees for services 
performed, the use or rental of real or personal property acquired 
under federally-funded projects, the sale of commodities or items 
fabricated under an award, license fees and royalties on patents and 
copyrights, and interest on loans made with award funds. Interest 
earned on advances of Federal funds is not program income. Except as 
otherwise provided in NHPRC regulations or the terms and conditions of 
the award, program income does not include the receipt of principal on 
loans, rebates, credits, discounts, etc., or interest earned on any of 
them.
    (aa) Project costs means all allowable costs, as set forth in the 
applicable Federal cost principles, incurred by a recipient and the 
value of the contributions made by third parties in accomplishing the 
objectives of the award during the project period.
    (bb) Project period means the period established in the award 
document during which NHPRC sponsorship begins and ends.
    (cc) Property means, unless otherwise stated, real property, 
equipment, intangible property and debt instruments.
    (dd) Real property means land, including land improvements, 
structures and appurtenances thereto, but excludes movable machinery 
and equipment.
    (ee) Recipient means an organization receiving financial assistance 
directly from the NHPRC to carry out a project or program. The term 
includes public and private institutions of higher education, public 
and private hospitals, and other quasi-public and private non-profit 
organizations such as, but not limited to, community action agencies, 
research institutes, educational associations, and health centers. The 
term may include commercial organizations, foreign or international 
organizations (such as agencies of the United Nations) which are 
recipients, subrecipients, or contractors or subcontractors of 
recipients or subrecipients at the discretion of the NHPRC. The term 
does not include government-owned contractor-operated facilities or 
research centers providing continued support for mission-oriented, 
large-scale programs that are government-owned or controlled, or are 
designated as federally-funded research and development centers.
    (ff) Research and development means all research activities, both 
basic and applied, and all development activities that are supported at 
universities, colleges, and other non-profit institutions. ``Research'' 
is defined as a systematic study directed toward fuller scientific 
knowledge or understanding of the subject studied. ``Development'' is 
the systematic use of knowledge and understanding gained from research 
directed toward the production of useful materials, devices, systems, 
or methods, including design and development of prototypes and 
processes. The term research also includes activities involving the 
training of individuals in research techniques where such activities 
utilize the same facilities as other research and development 
activities and where such activities are not included in the 
instruction function.
    (gg) Small awards means a grant or cooperative agreement not 
exceeding the small purchase threshold fixed at 41 U.S.C. 403(11) 
(currently $25,000).
    (hh) Subaward means an award of financial assistance in the form of 
money, or property in lieu of money, made under an award by a recipient 
to an eligible subrecipient or by a subrecipient to a lower tier 
subrecipient. The term includes financial assistance when provided by 
any legal agreement, even if the agreement is called a contract, but 
does not include procurement of goods and services nor does it include 
any form of assistance which is excluded from the definition of 
``award'' in paragraph (e) of this section. 

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    (ii) Subrecipient means the legal entity to which a subaward is 
made and which is accountable to the recipient for the use of the funds 
provided. The term may include foreign or international organizations 
(such as agencies of the United Nations) at the discretion of the 
NHPRC.
    (jj) Supplies means all personal property excluding equipment, 
intangible property, and debt instruments as defined in this section, 
and inventions of a contractor conceived or first actually reduced to 
practice in the performance of work under a funding agreement 
(``subject inventions''), as defined in 37 CFR Part 401, ``Rights to 
Inventions Made by Nonprofit Organizations and Small Business Firms 
Under Government Grants, Contracts, and Cooperative Agreements.''
    (kk) Suspension means an action by the NHPRC that temporarily 
withdraws Federal sponsorship under an award, pending corrective action 
by the recipient or pending a decision to terminate the award by the 
NHPRC. Suspension of an award is a separate action from suspension 
under NARA regulations implementing E.O. 12549 and E.O. 12689, 
``Debarment and Suspension'' (36 CFR Part 1209).
    (ll) Termination means the cancellation of NHPRC sponsorship, in 
whole or in part, under an agreement at any time prior to the date of 
completion.
    (mm) Third party in-kind contributions means the value of non-cash 
contributions provided by non-Federal third parties. Third party in-
kind contributions may be in the form of real property, equipment, 
supplies and other expendable property, and the value of goods and 
services directly benefiting and specifically identifiable to the 
project or program.
    (nn) Unliquidated obligations, for financial reports prepared on a 
cash basis, means the amount of obligations incurred by the recipient 
that have not been paid. For reports prepared on an accrued expenditure 
basis, they represent the amount of obligations incurred by the 
recipient for which an outlay has not been recorded.
    (oo) Unobligated balance means the portion of the funds authorized 
by the NHPRC that has not been obligated by the recipient and is 
determined by deducting the cumulative obligations from the cumulative 
funds authorized.
    (pp) Unrecovered indirect cost means the difference between the 
amount awarded and the amount which could have been awarded under the 
recipient's approved negotiated indirect cost rate.
    (qq) Working capital advance means a procedure whereby funds are 
advanced to the recipient to cover its estimated disbursement needs for 
a given initial period.


Sec. 1210.3  Effect on other issuances.

    For awards subject to this part, all administrative requirements of 
codified program regulations, program manuals, handbooks and other 
nonregulatory materials which are inconsistent with the requirements of 
this part shall be superseded, except to the extent they are required 
by statute, or authorized in accordance with the deviations provision 
in Sec. 1210.4.


Sec. 1210.4  Deviations.

    The Office of Management and Budget (OMB) may grant exceptions for 
classes of grants or recipients subject to the requirements of this 
part when exceptions are not prohibited by statute. However, in the 
interest of maximum uniformity, exceptions from the requirements of 
this part shall be permitted only in unusual circumstances. The NHPRC 
may apply more restrictive requirements to a class of recipients when 
approved by OMB. The NHPRC may apply less restrictive requirements when 
awarding small awards, except for those requirements which are 
statutory. Exceptions on a case-by-case basis may also be made by the 
NHPRC.


Sec. 1210.5  Subawards.

    Unless sections of this part specifically exclude subrecipients 
from coverage, the provisions of this part shall be applied to 
subrecipients performing work under awards if such subrecipients are 
institutions of higher education, hospitals or other non-profit 
organizations. State and local government subrecipients are subject to 
the provisions of regulations implementing the grants management common 
rule, ``Uniform Administrative Requirements for Grants and Cooperative 
Agreements to State and Local Governments,'' published at 36 CFR part 
1207.

Subpart B--Pre-Award Requirements


Sec. 1210.10  Purpose.

    Sections 1210.11 through 1210.17 prescribes forms and instructions 
and other pre-award matters to be used in applying for NHPRC awards.


Sec. 1210.11  Pre-award policies.

    (a) Use of grants and cooperative agreements, and contracts. In 
each instance, the NHPRC shall decide on the appropriate award 
instrument (i.e., grant, cooperative agreement, or contract). The 
Federal Grant and Cooperative Agreement Act (31 U.S.C. 6301-08) governs 
the use of grants, cooperative agreements and contracts. A grant or 
cooperative agreement shall be used only when the principal purpose of 
a transaction is to accomplish a public purpose of support or 
stimulation authorized by Federal statute. The statutory criterion for 
choosing between grants and cooperative agreements is that for the 
latter, ``substantial involvement is expected between the executive 
agency and the State, local government, or other recipient when 
carrying out the activity contemplated in the agreement.'' Contracts 
shall be used when the principal purpose is acquisition of property or 
services for the direct benefit or use of the Federal Government.
    (b) Public notice and priority setting. The NHPRC shall notify the 
public of its intended funding priorities for discretionary grant 
programs.


Sec. 1210.12  Forms for applying for Federal assistance.

    (a) The NHPRC shall comply with the applicable report clearance 
requirements of 5 CFR Part 1320, ``Controlling Paperwork Burdens on the 
Public,'' with regard to all forms used by the NHPRC in place of or as 
a supplement to the Standard Form 424 (SF-424) series.
    (b) Applicants shall use the SF-424 (Application for Federal 
Assistance) and NA Form 17001 (Budget Form) forms and instructions 
prescribed by the NHPRC Program Guidelines. OMB Control Number 3095-
0004 has been assigned to the Budget Form. OMB Control Number 3095-0013 
has been assigned to the NHPRC Program Guidelines.
    (c) Applicants shall complete the appropriate sections of the SF-
424 (Application for Federal Assistance) indicating whether the 
application was subject to review by the State Single Point of Contact 
(SPOC) under E.O. 12372, ``Intergovernmental Review of Federal 
Programs.'' The name and address of the SPOC for a particular State can 
be obtained from the NHPRC or the Catalog of Federal Domestic 
Assistance. The SPOC shall advise the applicant whether the program for 
which application is made has been selected by that State for review.


Sec. 1210.13  Debarment and suspension.

    The NHPRC and recipients shall comply with the nonprocurement 
debarment and suspension common rule implementing E.O.s 12549 and 
12689, ``Debarment and Suspension'' (36 CFR Part 1209). This common 
rule restricts subawards and contracts with 

[[Page 53518]]
certain parties that are debarred, suspended or otherwise excluded from 
or ineligible for participation in Federal assistance programs or 
activities.


Sec. 1210.14  Special award conditions.

    If an applicant or recipient has a history of poor performance, is 
not financially stable, has a management system that does not meet the 
standards prescribed in this part, has not conformed to the terms and 
conditions of a previous award, or is not otherwise responsible, the 
NHPRC may impose additional requirements as needed, provided that such 
applicant or recipient is notified in writing as to: the nature of the 
additional requirements, the reason why the additional requirements are 
being imposed, the nature of the corrective action needed, the time 
allowed for completing the corrective actions, and the method for 
requesting reconsideration of the additional requirements imposed. Any 
special conditions shall be promptly removed once the conditions that 
prompted them have been corrected.


Sec. 1210.15  Metric system of measurement.

    The Metric Conversion Act, as amended by the Omnibus Trade and 
Competitiveness Act (15 U.S.C. 205) declares that the metric system is 
the preferred measurement system for U.S. trade and commerce. The Act 
requires NARA to establish a date or dates in consultation with the 
Secretary of Commerce, when the metric system of measurement will be 
used in NARA's procurements, grants, and other business-related 
activities. Metric implementation may take longer where the use of the 
system is initially impractical or likely to cause significant 
inefficiencies in the accomplishment of federally-funded activities. 
NARA shall follow the provisions of E.O. 12770, ``Metric Usage in 
Federal Government Programs.''


Sec. 1210.16  Resource Conservation and Recovery Act.

    Under the Resource Conservation and Recovery Act ((RCRA) (Pub. L. 
94-580 codified at 42 U.S.C. 6962), any State agency or agency of a 
political subdivision of a State which is using appropriated Federal 
funds must comply with section 6002. Section 6002 requires that 
preference be given in procurement programs to the purchase of specific 
products containing recycled materials identified in guidelines 
developed by the Environmental Protection Agency (EPA) (40 CFR Parts 
247 through 254). Accordingly, State and local institutions of higher 
education, hospitals, and non-profit organizations that receive direct 
Federal awards or other Federal funds shall give preference in their 
procurement programs funded with Federal funds to the purchase of 
recycled products pursuant to the EPA guidelines.


Sec. 1210.17  Certifications and representations.

    Unless prohibited by statute or codified regulation, the NHPRC is 
authorized to allow recipients to submit certifications and 
representations required by statute, executive order, or regulation on 
an annual basis, if they have an ongoing and continuing relationship 
with the NHPRC. Annual certifications and representations shall be 
signed by responsible officials with the authority to ensure 
recipients' compliance with the pertinent requirements.

Subpart C--Post-Award Requirements

Financial and Program Management


Sec. 1210.20  Purpose of financial and program management.

    Sections 1210.21 through 1210.28 prescribe standards for financial 
management systems, methods for making payments and rules for: 
satisfying cost sharing and matching requirements, accounting for 
program income, budget revision approvals, making audits, determining 
allowability of cost, and establishing fund availability.


Sec. 1210.21  Standards for financial management systems.

    (a) The NHPRC shall require recipients to relate financial data to 
performance data and develop unit cost information whenever practical.
    (b) Recipients' financial management systems shall provide for the 
following.
    (1) Accurate, current and complete disclosure of the financial 
results of each NHPRC-sponsored project or program in accordance with 
the reporting requirements set forth in Sec. 1210.52.
    (2) Records that identify adequately the source and application of 
funds for NHPRC-sponsored activities. These records shall contain 
information pertaining to NHPRC awards, authorizations, obligations, 
unobligated balances, assets, outlays, income and interest.
    (3) Effective control over and accountability for all funds, 
property and other assets. Recipients shall adequately safeguard all 
such assets and assure they are used solely for authorized purposes.
    (4) Comparison of outlays with budget amounts for each award. 
Whenever appropriate, financial information should be related to 
performance and unit cost data.
    (5) Written procedures to minimize the time elapsing between the 
transfer of funds to the recipient from the U.S. Treasury and the 
issuance or redemption of checks, warrants or payments by other means 
for program purposes by the recipient. To the extent that the 
provisions of the Cash Management Improvement Act (CMIA) (Pub. L. 101-
453) govern, payment methods of State agencies, instrumentalities, and 
fiscal agents shall be consistent with CMIA Treasury-State Agreements 
or the CMIA default procedures codified at 31 CFR Part 205, 
``Withdrawal of Cash from the Treasury for Advances under Federal Grant 
and Other Programs.''
    (6) Written procedures for determining the reasonableness, 
allocability and allowability of costs in accordance with the 
provisions of the applicable Federal cost principles and the terms and 
conditions of the award.
    (7) Accounting records including cost accounting records that are 
supported by source documentation.
    (c) Where the Federal Government guarantees or insures the 
repayment of money borrowed by the recipient, the NHPRC, at its 
discretion, may require adequate bonding and insurance if the bonding 
and insurance requirements of the recipient are not deemed adequate to 
protect the interest of the Federal Government.
    (d) The NHPRC may require adequate fidelity bond coverage where the 
recipient lacks sufficient coverage to protect the Federal Government's 
interest.
    (e) Where bonds are required in the situations described in this 
section, the bonds shall be obtained from companies holding 
certificates of authority as acceptable sureties, as prescribed in 31 
CFR Part 223, ``Surety Companies Doing Business with the United 
States.''


Sec. 1210.22  Payment.

    (a) Payment methods shall minimize the time elapsing between the 
transfer of funds from the United States Treasury and the issuance or 
redemption of checks, warrants, or payment by other means by the 
recipients. Payment methods of State agencies or instrumentalities 
shall be consistent with Treasury-State CMIA agreements or default 
procedures codified at 31 CFR Part 205.
    (b) Recipients will be paid in advance, provided they maintain or 
demonstrate the willingness to maintain written procedures that 
minimize the time elapsing between the transfer of funds 

[[Page 53519]]
and disbursement by the recipient, and financial management systems 
that meet the standards for fund control and accountability as 
established in Sec. 1210.21. Cash advances to a recipient organization 
shall be limited to the minimum amounts needed and be timed to be in 
accordance with the actual, immediate cash requirements of the 
recipient organization in carrying out the purpose of the approved 
program or project. The timing and amount of cash advances shall be as 
close as is administratively feasible to the actual disbursements by 
the recipient organization for direct program or project costs and the 
proportionate share of any allowable indirect costs.
    (c) Whenever possible, advances shall be consolidated to cover 
anticipated cash needs for all awards made by the NHPRC to the 
recipient.
    (1) Advance payment mechanisms include, but are not limited to, 
Treasury check and electronic funds transfer.
    (2) Advance payment mechanisms are subject to 31 CFR Part 205.
    (3) Recipients can submit requests for advances and reimbursements 
at least monthly when a predetermined schedule of electronic funds 
transfer is not used.
    (d) Requests for Treasury check advance payment shall be submitted 
on SF-270, ``Request for Advance or Reimbursement,'' or other forms as 
may be authorized by OMB. This form is not to be used when Treasury 
check advance payments are made to the recipient automatically through 
the use of a predetermined payment schedule or if precluded by special 
NHPRC instructions for electronic funds transfer.
    (e) Reimbursement is the preferred method when the requirements in 
paragraph (b) of this section cannot be met.
    (1) When the reimbursement method is used, the NHPRC shall make 
payment within 30 days after receipt of the billing, unless the billing 
is improper.
    (2) Recipients can submit a request for reimbursement at least 
monthly when a predetermined schedule of electronic funds transfer is 
not used.
    (f) If a recipient cannot meet the criteria for advance payments 
and the NHPRC has determined that reimbursement is not feasible because 
the recipient lacks sufficient working capital, the NHPRC may provide 
cash on a working capital advance basis. Under this procedure, the 
NHPRC shall advance cash to the recipient to cover its estimated 
disbursement needs for an initial period generally geared to the 
awardee's disbursing cycle. Thereafter, the NHPRC shall reimburse the 
recipient for its actual cash disbursements. The working capital 
advance method of payment shall not be used for recipients unwilling or 
unable to provide timely advances to their subrecipient to meet the 
subrecipient's actual cash disbursements.
    (g) To the extent available, recipients shall disburse funds 
available from repayments to and interest earned on a revolving fund, 
program income, rebates, refunds, contract settlements, audit 
recoveries and interest earned on such funds before requesting 
additional cash payments.
    (h) Unless otherwise required by statute, the NHPRC shall not 
withhold payments for proper charges made by recipients at any time 
during the project period unless paragraph (h)(1) or (2) of this 
section apply.
    (1) A recipient has failed to comply with the project objectives, 
the terms and conditions of the award, or NHPRC reporting requirements.
    (2) The recipient or subrecipient is delinquent in a debt to the 
United States as defined in OMB Circular A-129, ``Managing Federal 
Credit Programs.'' Under such conditions, the NHPRC may, upon 
reasonable notice, inform the recipient that payments shall not be made 
for obligations incurred after a specified date until the conditions 
are corrected or the indebtedness to the Federal Government is 
liquidated.
    (i) Standards governing the use of banks and other institutions as 
depositories of funds advanced under awards are as follows.
    (1) Except for situations described in paragraph (i)(2) of this 
section, the NHPRC shall not require separate depository accounts for 
funds provided to a recipient or establish any eligibility requirements 
for depositories for funds provided to a recipient. However, recipients 
must be able to account for the receipt, obligation and expenditure of 
funds.
    (2) Advances of NHPRC funds shall be deposited and maintained in 
insured accounts whenever possible.
    (j) Consistent with the national goal of expanding the 
opportunities for women-owned and minority-owned business enterprises, 
recipients shall be encouraged to use women-owned and minority-owned 
banks (a bank which is owned at least 50 percent by women or minority 
group members).
    (k) Recipients shall maintain advances of NHPRC funds in interest 
bearing accounts, unless paragraphs (k)(1), (2) or (3) of this section 
apply.
    (1) The recipient receives less than $120,000 in Federal awards per 
year.
    (2) The best reasonably available interest bearing account would 
not be expected to earn interest in excess of $250 per year on Federal 
cash balances.
    (3) The depository would require an average or minimum balance so 
high that it would not be feasible within the expected Federal and non-
Federal cash resources.
    (l) In keeping with Electronic Funds Transfer rules (31 CFR Part 
206), interest earned should be remitted annually to the Department of 
Health and Human Services (HHS) Payment Management System through an 
electronic medium such as the FEDWIRE Deposit system. Recipients which 
do not have this capability should use a check and mail it to the 
Payment Management System, P.O. Box 6021, Rockville, MD 20852. Interest 
amounts up to $250 per year may be retained by the recipient for 
administrative expense. State universities and hospitals shall comply 
with CMIA, as it pertains to interest. If an entity subject to CMIA 
uses its own funds to pay pre-award costs for discretionary awards 
without prior written approval from the NHPRC, it waives its right to 
recover the interest under CMIA.
    (m) Except as noted elsewhere in this part, only the SF-270, 
Request for Advance or Reimbursement, shall be authorized for the 
recipients in requesting advances and reimbursements. The NHPRC 
requires an original and two copies of this form.


Sec. 1210.23  Cost sharing or matching.

    (a) All contributions, including cash and third party in-kind, 
shall be accepted as part of the recipient's cost sharing or matching 
when such contributions meet all of the following criteria.
    (1) Are verifiable from the recipient's records.
    (2) Are not included as contributions for any other federally-
assisted project or program.
    (3) Are necessary and reasonable for proper and efficient 
accomplishment of project or program objectives.
    (4) Are allowable under the applicable cost principles.
    (5) Are not paid by the Federal Government under another award, 
except where authorized by Federal statute to be used for cost sharing 
or matching.
    (6) Are provided for in the approved budget when required by the 
NHPRC.
    (7) Conform to other provisions of this part, as applicable.
    (b) Unrecovered indirect costs may be included as part of cost 
sharing or matching only with the prior approval of the NHPRC.
    (c) Values for recipient contributions of services and property 
shall be 

[[Page 53520]]
established in accordance with the applicable cost principles. If the 
NHPRC authorizes recipients to donate buildings or land for 
construction/facilities acquisition projects or long-term use, the 
value of the donated property for cost sharing or matching shall be the 
lesser of paragraph (c)(1) or (2) of this section.
    (1) The certified value of the remaining life of the property 
recorded in the recipient's accounting records at the time of donation.
    (2) The current fair market value. However, when there is 
sufficient justification, the NHPRC may approve the use of the current 
fair market value of the donated property, even if it exceeds the 
certified value at the time of donation to the project.
    (d) Volunteer services furnished by professional and technical 
personnel, consultants, and other skilled and unskilled labor may be 
counted as cost sharing or matching if the service is an integral and 
necessary part of an approved project or program. Rates for volunteer 
services shall be consistent with those paid for similar work in the 
recipient's organization. In those instances in which the required 
skills are not found in the recipient organization, rates shall be 
consistent with those paid for similar work in the labor market in 
which the recipient competes for the kind of services involved. In 
either case, paid fringe benefits that are reasonable, allowable, and 
allocable may be included in the valuation.
    (e) When an employer other than the recipient furnishes the 
services of an employee, these services shall be valued at the 
employee's regular rate of pay (plus an amount of fringe benefits that 
are reasonable, allowable, and allocable, but exclusive of overhead 
costs), provided these services are in the same skill for which the 
employee is normally paid.
    (f) Donated supplies may include such items as expendable 
equipment, office supplies, laboratory supplies or workshop and 
classroom supplies. Value assessed to donated supplies included in the 
cost sharing or matching share shall be reasonable and shall not exceed 
the fair market value of the property at the time of the donation.
    (g) The method used for determining cost sharing or matching for 
donated equipment, buildings and land for which title passes to the 
recipient may differ according to the purpose of the award, if 
paragraph (g)(1) or (2) of this section apply.
    (1) If the purpose of the award is to assist the recipient in the 
acquisition of equipment, buildings or land, the total value of the 
donated property may be claimed as cost sharing or matching.
    (2) If the purpose of the award is to support activities that 
require the use of equipment, buildings or land, normally only 
depreciation or use charges for equipment and buildings may be made. 
However, the full value of equipment or other capital assets and fair 
rental charges for land may be allowed, provided that the NHPRC has 
approved the charges.
    (h) The value of donated property shall be determined in accordance 
with the usual accounting policies of the recipient, with the following 
qualifications.
    (1) The value of donated land and buildings shall not exceed its 
fair market value at the time of donation to the recipient as 
established by an independent appraiser (e.g., certified real property 
appraiser or General Services Administration representative) and 
certified by a responsible official of the recipient.
    (2) The value of donated equipment shall not exceed the fair market 
value of equipment of the same age and condition at the time of 
donation.
    (3) The value of donated space shall not exceed the fair rental 
value of comparable space as established by an independent appraisal of 
comparable space and facilities in a privately-owned building in the 
same locality.
    (4) The value of loaned equipment shall not exceed its fair rental 
value.
    (5) The following requirements pertain to the recipient's 
supporting records for in-kind contributions from third parties.
    (i) Volunteer services shall be documented and, to the extent 
feasible, supported by the same methods used by the recipient for its 
own employees.
    (ii) The basis for determining the valuation for personal service, 
material, equipment, buildings and land shall be documented.


Sec. 1210.24   Program income.

    (a) The NHPRC applies the standards set forth in this section in 
requiring recipient organizations to account for program income related 
to projects financed in whole or in part with Federal funds.
    (b) Except as provided in paragraph (h) of this section, program 
income earned during the project period shall be retained by the 
recipient and, in accordance with these regulations or the terms and 
conditions of the award, shall be used in one or more of the ways 
listed in the following.
    (1) Added to funds committed to the project by the NHPRC and 
recipient and used to further eligible project or program objectives.
    (2) Used to finance the non-Federal share of the project or 
program.
    (3) Deducted from the total project or program allowable cost in 
determining the net allowable costs on which the Federal share of costs 
is based.
    (c) When the NHPRC authorizes the disposition of program income as 
described in paragraphs (b)(1) or (b)(2) of this section, program 
income in excess of any limits stipulated shall be used in accordance 
with paragraph (b)(3) of this section.
    (d) In the event that the NHPRC does not specify in its regulations 
or the terms and conditions of the award how program income is to be 
used, paragraph (b)(3) of this section shall apply automatically to all 
projects or programs except research. For awards that support research, 
paragraph (b)(1) of this section shall apply automatically unless the 
NHPRC indicates in the terms and conditions another alternative on the 
award or the recipient is subject to special award conditions, as 
indicated in Sec. 1210.14.
    (e) Unless NHPRC regulations or the terms and conditions of the 
award provide otherwise, recipients shall have no obligation to the 
Federal Government regarding program income earned after the end of the 
project period.
    (f) If authorized by NHPRC regulations or the terms and conditions 
of the award, costs incident to the generation of program income may be 
deducted from gross income to determine program income, provided these 
costs have not been charged to the award.
    (g) Proceeds from the sale of property shall be handled in 
accordance with the requirements of the Property Standards (See 
Secs. 1210.30 through 1210.37).
    (h) Unless NHPRC regulations or the terms and condition of the 
award provide otherwise, recipients shall have no obligation to the 
Federal Government with respect to program income earned from license 
fees and royalties for copyrighted material, patents, patent 
applications, trademarks, and inventions produced under an award. 
However, Patent and Trademark Amendments (35 U.S.C. 18) apply to 
inventions made under an experimental, developmental, or research 
award.


Sec. 1210.25   Revision of budget and program plans.

    (a) The budget plan is the financial expression of the project or 
program as approved during the award process. It may include either the 
Federal and non-Federal share, or only the Federal share, depending 
upon NHPRC requirements. 

[[Page 53521]]
It shall be related to performance for program evaluation purposes 
whenever appropriate.
    (b) Recipients are required to report deviations from budget and 
program plans, and request prior approvals for budget and program plan 
revisions, in accordance with this section.
    (c) Recipients shall request prior approvals from the NHPRC for one 
or more of the following program or budget related reasons.
    (1) Change in the scope or the objective of the project or program 
(even if there is no associated budget revision requiring prior written 
approval).
    (2) Change in a key person specified in the application or award 
document.
    (3) The absence for more than three months, or a 25 percent 
reduction in time devoted to the project, by the approved project 
director or principal investigator.
    (4) The need for additional NHPRC funding.
    (5) The transfer of amounts budgeted for indirect costs to absorb 
increases in direct costs, or vice versa, if approval is required by 
the NHPRC.
    (6) The inclusion, unless waived by the NHPRC, of costs that 
require prior approval in accordance with OMB Circular A-21, ``Cost 
Principles for Institutions of Higher Education,'' OMB Circular A-122, 
``Cost Principles for Non-Profit Organizations,'' or 45 CFR Part 74 
Appendix E, ``Principles for Determining Costs Applicable to Research 
and Development under Grants and Contracts with Hospitals,'' or 48 CFR 
Part 31, ``Contract Cost Principles and Procedures,'' as applicable.
    (7) The transfer of funds allotted for training allowances (direct 
payment to trainees) to other categories of expense.
    (8) Unless described in the application and funded in the approved 
awards, the subaward, transfer or contracting out of any work under an 
award. This provision does not apply to the purchase of supplies, 
material, equipment or general support services.
    (d) No other prior approval requirements for specific items will be 
imposed unless a deviation has been approved by OMB.
    (e) Except for requirements listed in paragraphs (c)(1) and (c)(4) 
of this section, the NHPRC is authorized, at their option, to waive 
cost-related and administrative prior written approvals required by 
this Circular and OMB Circulars A-21 and A-122. Such waivers may 
include authorizing recipients to do any one or more of the following.
    (1) Incur pre-award costs 90 calendar days prior to award or more 
than 90 calendar days with the prior approval of the NHPRC. All pre-
award costs are incurred at the recipient's risk (i.e., the NHPRC is 
under no obligation to reimburse such costs if for any reason the 
recipient does not receive an award or if the award is less than 
anticipated and inadequate to cover such costs).
    (2) Initiate a one-time extension of the expiration date of the 
award of up to 12 months unless one or more of the following conditions 
apply. For one-time extensions, the recipient must notify the NHPRC in 
writing with the supporting reasons and revised expiration date at 
least 10 days before the expiration date specified in the award. This 
one-time extension may not be exercised merely for the purpose of using 
unobligated balances.
    (i) The terms and conditions of award prohibit the extension.
    (ii) The extension requires additional NHPRC funds.
    (iii) The extension involves any change in the approved objectives 
or scope of the project.
    (3) Carry forward unobligated balances to subsequent funding 
periods.
    (4) For awards that support research, unless the NHPRC provides 
otherwise in the award or in NHPRC's regulations, the prior approval 
requirements described in paragraph (e) of this section are 
automatically waived (i.e., recipients need not obtain such prior 
approvals) unless one of the conditions included in paragraph (e)(2) of 
this section applies.
    (f) The NHPRC may, at its option, restrict the transfer of funds 
among direct cost categories or programs, functions and activities for 
awards in which the Federal share of the project exceeds $100,000 and 
the cumulative amount of such transfers exceeds or is expected to 
exceed 10 percent of the total budget as last approved by the NHPRC. 
The NHPRC shall not permit a transfer that would cause any Federal 
appropriation or part thereof to be used for purposes other than those 
consistent with the original intent of the appropriation.
    (g) All other changes to nonconstruction budgets, except for the 
changes described in paragraph (j), do not require prior approval.
    (h) [Reserved]
    (i) No other prior approval requirements for specific items will be 
imposed unless a deviation has been approved by OMB.
    (j) The NHPRC shall require recipients to notify the NHPRC in 
writing promptly whenever the amount of Federal authorized funds is 
expected to exceed the needs of the recipient for the project period by 
more than $5,000 or five percent of the NHPRC award, whichever is 
greater. This notification shall not be required if an application for 
additional funding is submitted for a continuation award.
    (k) When requesting approval for budget revisions, recipients shall 
use the budget forms that were used in the application unless the NHPRC 
indicates a letter of request suffices.
    (l) Within 30 calendar days from the date of receipt of the request 
for budget revisions, the NHPRC shall review the request and notify the 
recipient whether the budget revisions have been approved. If the 
revision is still under consideration at the end of 30 calendar days, 
the NHPRC shall inform the recipient in writing of the date when the 
recipient may expect the decision.


Sec. 1210.26   Non-Federal audits.

    (a) Recipients and subrecipients that are institutions of higher 
education or other non-profit organizations shall be subject to the 
audit requirements contained in OMB Circular A-133, ``Audits of 
Institutions of Higher Education and Other Non-Profit Institutions.''
    (b) State and local governments shall be subject to the audit 
requirements contained in the Single Audit Act (31 U.S.C. 7501-7) and 
the cognizant Federal agency regulations implementing OMB Circular A-
128, ``Audits of State and Local Governments.''
    (c) Hospitals not covered by the audit provisions of OMB Circular 
A-133 shall be subject to the audit requirements of the cognizant 
Federal agency.


Sec. 1210.27   Allowable costs.

    For each kind of recipient, there is a set of Federal principles 
for determining allowable costs. Allowability of costs shall be 
determined in accordance with the cost principles applicable to the 
entity incurring the costs. Thus, allowability of costs incurred by 
State, local or federally-recognized Indian tribal governments is 
determined in accordance with the provisions of OMB Circular A-87, 
``Cost Principles for State and Local Governments.'' The allowability 
of costs incurred by non-profit organizations is determined in 
accordance with the provisions of OMB Circular A-122, ``Cost Principles 
for Non-Profit Organizations.'' The allowability of costs incurred by 
institutions of higher education is determined in accordance with the 
provisions of OMB Circular A-21, ``Cost Principles for Educational 
Institutions.'' The allowability of costs incurred by hospitals is 
determined in accordance with the provisions of Appendix E of 45 

[[Page 53522]]
CFR Part 74, ``Principles for Determining Costs Applicable to Research 
and Development Under Grants and Contracts with Hospitals.'' The 
allowability of costs incurred those non-profit organizations listed in 
Attachment C to Circular A-122 is determined in accordance with the 
provisions of the Federal Acquisition Regulation (FAR) at 48 CFR Part 
31.


Sec. 1210.28   Period of availability of funds.

    Where a funding period is specified, a recipient may charge to the 
grant only allowable costs resulting from obligations incurred during 
the funding period and any pre-award costs authorized by the NHPRC.

Property Standards


Sec. 1210.30   Purpose of property standards.

    Sections 1210.31 through 1210.37 set forth uniform standards 
governing management and disposition of property furnished by the 
Federal Government whose cost was charged to a project supported by an 
NHPRC award. The NHPRC requires recipients to observe these standards 
under awards and shall not impose additional requirements, unless 
specifically required by Federal statute. The recipient may use its own 
property management standards and procedures provided it observes the 
provisions of Secs. 1210.31 through 1210.37.


Sec. 1210.31   Insurance coverage.

    Recipients shall, at a minimum, provide the equivalent insurance 
coverage for real property and equipment acquired with NHPRC funds as 
provided to property owned by the recipient. Federally-owned property 
need not be insured unless required by the terms and conditions of the 
award.


Sec. 1210.32   Real property.

    The NHPRC shall prescribe requirements for recipients concerning 
the use and disposition of real property acquired in whole or in part 
under awards. Unless otherwise provided by statute, such requirements, 
at a minimum, shall contain the following.
    (a) Title to real property shall vest in the recipient subject to 
the condition that the recipient shall use the real property for the 
authorized purpose of the project as long as it is needed and shall not 
encumber the property without approval of the NHPRC.
    (b) The recipient shall obtain written approval by the NHPRC for 
the use of real property in other federally-sponsored projects when the 
recipient determines that the property is no longer needed for the 
purpose of the original project. Use in other projects shall be limited 
to those under federally-sponsored projects (i.e., awards) or programs 
that have purposes consistent with those authorized for support by the 
NHPRC.
    (c) When the real property is no longer needed as provided in 
paragraphs (a) and (b) of this section, the recipient shall request 
disposition instructions from the NHPRC or its successor Federal 
awarding agency. The NHPRC shall observe one or more of the following 
disposition instructions.
    (1) The recipient may be permitted to retain title without further 
obligation to the Federal Government after it compensates the Federal 
Government for that percentage of the current fair market value of the 
property attributable to the Federal participation in the project.
    (2) The recipient may be directed to sell the property under 
guidelines provided by the NHPRC and pay the Federal Government for 
that percentage of the current fair market value of the property 
attributable to the Federal participation in the project (after 
deducting actual and reasonable selling and fix-up expenses, if any, 
from the sales proceeds). When the recipient is authorized or required 
to sell the property, proper sales procedures shall be established that 
provide for competition to the extent practicable and result in the 
highest possible return.
    (3) The recipient may be directed to transfer title to the property 
to the Federal Government or to an eligible third party provided that, 
in such cases, the recipient shall be entitled to compensation for its 
attributable percentage of the current fair market value of the 
property.


Sec. 1210.33  Federally-owned and exempt property.

    (a) Federally-owned property.
    (1) Title to federally-owned property remains vested in the Federal 
Government. Recipients shall submit annually an inventory listing of 
federally-owned property in their custody to the NHPRC. Upon completion 
of the award or when the property is no longer needed, the recipient 
shall report the property to the NHPRC for further Federal agency 
utilization.
    (2) If the NHPRC has no further need for the property, it shall be 
declared excess and reported to the General Services Administration. 
Appropriate instructions shall be issued to the recipient by the NHPRC.
    (b) Exempt property. When statutory authority exists, the NHPRC has 
the option to vest title to property acquired with Federal funds in the 
recipient without further obligation to the Federal Government and 
under conditions the NHPRC considers appropriate. Such property is 
``exempt property.'' Should the NHPRC not establish conditions, title 
to exempt property upon acquisition shall vest in the recipient without 
further obligation to the Federal Government.


Sec. 1210.34  Equipment.

    (a) Title to equipment acquired by a recipient with NHPRC funds 
shall vest in the recipient, subject to conditions of this section.
    (b) The recipient shall not use equipment acquired with NHPRC funds 
to provide services to non-Federal outside organizations for a fee that 
is less than private companies charge for equivalent services, unless 
specifically authorized by Federal statute, for as long as the Federal 
Government retains an interest in the equipment.
    (c) The recipient shall use the equipment in the project or program 
for which it was acquired as long as needed, whether or not the project 
or program continues to be supported by Federal funds and shall not 
encumber the property without approval of the NHPRC. When no longer 
needed for the original project or program, the recipient shall use the 
equipment in connection with its other federally-sponsored activities, 
in the following order of priority:
    (1) Activities sponsored by the NHPRC which funded the original 
project, then
    (2) Activities sponsored by other Federal awarding agencies.
    (d) During the time that equipment is used on the project or 
program for which it was acquired, the recipient shall make it 
available for use on other projects or programs if such other use will 
not interfere with the work on the project or program for which the 
equipment was originally acquired. First preference for such other use 
shall be given to other projects or programs sponsored by the NHPRC 
that financed the equipment; second preference shall be given to 
projects or programs sponsored by other Federal awarding agencies. If 
the equipment is owned by the Federal Government, use on other 
activities not sponsored by the Federal Government shall be permissible 
if authorized by the NHPRC. User charges shall be treated as program 
income.
    (e) When acquiring replacement equipment, the recipient may use the 
equipment to be replaced as trade-in or sell the equipment and use the 
proceeds to offset the costs of the replacement equipment subject to 
the approval of the NHPRC. 

[[Page 53523]]

    (f) The recipient's property management standards for equipment 
acquired with Federal funds and federally-owned equipment shall include 
all of the following.
    (1) Equipment records shall be maintained accurately and shall 
include the following information.
    (i) A description of the equipment.
    (ii) Manufacturer's serial number, model number, Federal stock 
number, national stock number, or other identification number.
    (iii) Source of the equipment, including the award number.
    (iv) Whether title vests in the recipient or the Federal 
Government.
    (v) Acquisition date (or date received, if the equipment was 
furnished by the Federal Government) and cost.
    (vi) Information from which one can calculate the percentage of 
Federal participation in the cost of the equipment (not applicable to 
equipment furnished by the Federal Government).
    (vii) Location and condition of the equipment and the date the 
information was reported.
    (viii) Unit acquisition cost.
    (ix) Ultimate disposition data, including date of disposal and 
sales price or the method used to determine current fair market value 
where a recipient compensates the NHPRC for its share.
    (2) Equipment owned by the Federal Government shall be identified 
to indicate Federal ownership.
    (3) A physical inventory of equipment shall be taken and the 
results reconciled with the equipment records at least once every two 
years. Any differences between quantities determined by the physical 
inspection and those shown in the accounting records shall be 
investigated to determine the causes of the difference. The recipient 
shall, in connection with the inventory, verify the existence, current 
utilization, and continued need for the equipment.
    (4) A control system shall be in effect to insure adequate 
safeguards to prevent loss, damage, or theft of the equipment. Any 
loss, damage, or theft of equipment shall be investigated and fully 
documented; if the equipment was owned by the Federal Government, the 
recipient shall promptly notify the NHPRC.
    (5) Adequate maintenance procedures shall be implemented to keep 
the equipment in good condition.
    (6) Where the recipient is authorized or required to sell the 
equipment, proper sales procedures shall be established which provide 
for competition to the extent practicable and result in the highest 
possible return.
    (g) When the recipient no longer needs the equipment, the equipment 
may be used for other activities in accordance with the following 
standards. For equipment with a current per unit fair market value of 
$5,000 or more, the recipient may retain the equipment for other uses 
provided that compensation is made to the NHPRC or its successor. The 
amount of compensation shall be computed by applying the percentage of 
Federal participation in the cost of the original project or program to 
the current fair market value of the equipment. If the recipient has no 
need for the equipment, the recipient shall request disposition 
instructions from the NHPRC. The NHPRC shall determine whether the 
equipment can be used to meet the NHPRC's requirements. If no 
requirement exists within the NHPRC, the availability of the equipment 
shall be reported to the General Services Administration by the NHPRC 
to determine whether a requirement for the equipment exists in other 
Federal agencies. The NHPRC shall issue instructions to the recipient 
no later than 120 calendar days after the recipient's request and the 
following procedures shall govern.
    (1) If so instructed or if disposition instructions are not issued 
within 120 calendar days after the recipient's request, the recipient 
shall sell the equipment and reimburse the NHPRC an amount computed by 
applying to the sales proceeds the percentage of Federal participation 
in the cost of the original project or program. However, the recipient 
shall be permitted to deduct and retain from the Federal share $500 or 
ten percent of the proceeds, whichever is less, for the recipient's 
selling and handling expenses.
    (2) If the recipient is instructed to ship the equipment elsewhere, 
the recipient shall be reimbursed by the Federal Government by an 
amount which is computed by applying the percentage of the recipient's 
participation in the cost of the original project or program to the 
current fair market value of the equipment, plus any reasonable 
shipping or interim storage costs incurred.
    (3) If the recipient is instructed to otherwise dispose of the 
equipment, the recipient shall be reimbursed by the NHPRC for such 
costs incurred in its disposition.
    (4) The NHPRC reserves the right to transfer the title to the 
Federal Government or to a third party named by the Federal Government 
when such third party is otherwise eligible under existing statutes. 
Such transfer shall be subject to the following standards.
    (i) The equipment shall be appropriately identified in the award or 
otherwise made known to the recipient in writing.
    (ii) The NHPRC shall issue disposition instructions within 120 
calendar days after receipt of a final inventory. The final inventory 
shall list all equipment acquired with grant funds and federally-owned 
equipment. If the NHPRC fails to issue disposition instructions within 
the 120 calendar day period, the recipient shall apply the standards of 
this section, as appropriate.
    (iii) When the NHPRC exercises its right to take title, the 
equipment shall be subject to the provisions for federally-owned 
equipment.


Sec. 1210.35  Supplies and other expendable property.

    (a) Title to supplies and other expendable property shall vest in 
the recipient upon acquisition. If there is a residual inventory of 
unused supplies exceeding $5,000 in total aggregate value upon 
termination or completion of the project or program and the supplies 
are not needed for any other federally-sponsored project or program, 
the recipient shall retain the supplies for use on non-Federal 
sponsored activities or sell them, but shall, in either case, 
compensate the NHPRC for its share. The amount of compensation shall be 
computed in the same manner as for equipment.
    (b) The recipient shall not use supplies acquired with NHPRC funds 
to provide services to non-Federal outside organizations for a fee that 
is less than private companies charge for equivalent services, unless 
specifically authorized by Federal statute as long as the Federal 
Government retains an interest in the supplies.


Sec. 1210.36  Intangible property.

    (a) The recipient may copyright any work that is subject to 
copyright and was developed, or for which ownership was purchased, 
under an award. The NHPRC reserves a royalty-free, nonexclusive and 
irrevocable right to reproduce, publish, or otherwise use the work for 
Federal purposes, and to authorize others to do so.
    (b) Recipients are subject to applicable regulations governing 
patents and inventions, including government-wide regulations issued by 
the Department of Commerce at 37 CFR Part 401, ``Rights to Inventions 
Made by Nonprofit Organizations and Small Business Firms Under 
Government Grants, Contracts and Cooperative Agreements.''
    (c) Unless waived by the NHPRC, the Federal Government has the 
right to: 

[[Page 53524]]

    (1) Obtain, reproduce, publish or otherwise use the data first 
produced under an award; and
    (2) Authorize others to receive, reproduce, publish, or otherwise 
use such data for Federal purposes.
    (d) Title to intangible property and debt instruments acquired 
under an award or subaward vests upon acquisition in the recipient. The 
recipient shall use that property for the originally-authorized 
purpose, and the recipient shall not encumber the property without 
approval of the NHPRC. When no longer needed for the originally 
authorized purpose, disposition of the intangible property shall occur 
in accordance with the provisions of Sec. 1210.34(g).


Sec. 1210.37  Property trust relationship.

    Real property, equipment, intangible property and debt instruments 
that are acquired or improved with NHPRC funds shall be held in trust 
by the recipient as trustee for the beneficiaries of the project or 
program under which the property was acquired or improved. The NHPRC 
may require recipients to record liens or other appropriate notices of 
record to indicate that personal or real property has been acquired or 
improved with Federal funds and that use and disposition conditions 
apply to the property.

Procurement Standards


Sec. 1210.40  Purpose of procurement standards.

    Sections 1210.41 through 1210.48 set forth standards for use by 
recipients in establishing procedures for the procurement of supplies 
and other expendable property, equipment, real property and other 
services with NHPRC funds. These standards are furnished to ensure that 
such materials and services are obtained in an effective manner and in 
compliance with the provisions of applicable Federal statutes and 
executive orders. No additional procurement standards or requirements 
shall be imposed by the NHPRC upon recipients, unless specifically 
required by Federal statute or executive order or approved by OMB.


Sec. 1210.41  Recipient responsibilities.

    The standards contained in this section do not relieve the 
recipient of the contractual responsibilities arising under its 
contract(s). The recipient is the responsible authority, without 
recourse to the NHPRC, regarding the settlement and satisfaction of all 
contractual and administrative issues arising out of procurements 
entered into in support of an award or other agreement. This includes 
disputes, claims, protests of award, source evaluation or other matters 
of a contractual nature. Matters concerning violation of statute are to 
be referred to such Federal, State or local authority as may have 
proper jurisdiction.


Sec. 1210.42  Codes of conduct.

    The recipient shall maintain written standards of conduct governing 
the performance of its employees engaged in the award and 
administration of contracts. No employee, officer, or agent shall 
participate in the selection, award, or administration of a contract 
supported by Federal funds if a real or apparent conflict of interest 
would be involved. Such a conflict would arise when the employee, 
officer, or agent, any member of his or her immediate family, his or 
her partner, or an organization which employs or is about to employ any 
of the parties indicated herein, has a financial or other interest in 
the firm selected for an award. The officers, employees, and agents of 
the recipient shall neither solicit nor accept gratuities, favors, or 
anything of monetary value from contractors, or parties to 
subagreements. However, recipients may set standards for situations in 
which the financial interest is not substantial or the gift is an 
unsolicited item of nominal value. The standards of conduct shall 
provide for disciplinary actions to be applied for violations of such 
standards by officers, employees, or agents of the recipient.


Sec. 1210.43  Competition.

    All procurement transactions shall be conducted in a manner to 
provide, to the maximum extent practical, open and free competition. 
The recipient shall be alert to organizational conflicts of interest as 
well as noncompetitive practices among contractors that may restrict or 
eliminate competition or otherwise restrain trade. In order to ensure 
objective contractor performance and eliminate unfair competitive 
advantage, contractors that develop or draft specifications, 
requirements, statements of work, invitations for bids and/or requests 
for proposals shall be excluded from competing for such procurements. 
Awards shall be made to the bidder or offeror whose bid or offer is 
responsive to the solicitation and is most advantageous to the 
recipient, price, quality and other factors considered. Solicitations 
shall clearly set forth all requirements that the bidder or offeror 
shall fulfill in order for the bid or offer to be evaluated by the 
recipient. Any and all bids or offers may be rejected when it is in the 
recipient's interest to do so.


Sec. 1210.44  Procurement procedures.

    (a) All recipients shall establish written procurement procedures. 
These procedures shall provide for, at a minimum, that paragraphs (a) 
(1), (2) and (3) of this section apply.
    (1) Recipients avoid purchasing unnecessary items.
    (2) Where appropriate, an analysis is made of lease and purchase 
alternatives to determine which would be the most economical and 
practical procurement for the Federal Government.
    (3) Solicitations for goods and services provide for all of the 
following.
    (i) A clear and accurate description of the technical requirements 
for the material, product or service to be procured. In competitive 
procurements, such a description shall not contain features which 
unduly restrict competition.
    (ii) Requirements which the bidder/offeror must fulfill and all 
other factors to be used in evaluating bids or proposals.
    (iii) A description, whenever practicable, of technical 
requirements in terms of functions to be performed or performance 
required, including the range of acceptable characteristics or minimum 
acceptable standards.
    (iv) The specific features of ``brand name or equal'' descriptions 
that bidders are required to meet when such items are included in the 
solicitation.
    (v) The acceptance, to the extent practicable and economically 
feasible, of products and services dimensioned in the metric system of 
measurement.
    (vi) Preference, to the extent practicable and economically 
feasible, for products and services that conserve natural resources and 
protect the environment and are energy efficient.
    (b) Positive efforts shall be made by recipients to utilize small 
businesses, minority-owned firms, and women's business enterprises, 
whenever possible. Recipients of Federal awards shall take all of the 
following steps to further this goal.
    (1) Ensure that small businesses, minority-owned firms, and women's 
business enterprises are used to the fullest extent practicable.
    (2) Make information on forthcoming opportunities available and 
arrange time frames for purchases and contracts to encourage and 
facilitate participation by small businesses, minority-owned firms, and 
women's business enterprises.
    (3) Consider in the contract process whether firms competing for 
larger contracts intend to subcontract with small businesses, minority-
owned firms, and women's business enterprises.
    (4) Encourage contracting with consortiums of small businesses, 

[[Page 53525]]
    minority-owned firms and women's business enterprises when a contract 
is too large for one of these firms to handle individually.
    (5) Use the services and assistance, as appropriate, of such 
organizations as the Small Business Administration and the Department 
of Commerce's Minority Business Development Agency in the solicitation 
and utilization of small businesses, minority-owned firms and women's 
business enterprises.
    (c) The type of procuring instruments used (e.g., fixed price 
contracts, cost reimbursable contracts, purchase orders, and incentive 
contracts) shall be determined by the recipient but shall be 
appropriate for the particular procurement and for promoting the best 
interest of the program or project involved. The ``cost-plus-a-
percentage-of-cost'' or ``percentage of construction cost'' methods of 
contracting shall not be used.
    (d) Contracts shall be made only with responsible contractors who 
possess the potential ability to perform successfully under the terms 
and conditions of the proposed procurement. Consideration shall be 
given to such matters as contractor integrity, record of past 
performance, financial and technical resources or accessibility to 
other necessary resources. In certain circumstances, contracts with 
certain parties are restricted by NARA implementation of E.O.s 12549 
and 12689, ``Debarment and Suspension'' (36 CFR Part 1209).
    (e) Recipients shall, on request, make available for the NHPRC, 
pre-award review and procurement documents, such as request for 
proposals or invitations for bids, independent cost estimates, etc., 
when any of the following conditions apply.
    (1) A recipient's procurement procedures or operation fails to 
comply with the procurement standards in the NHPRC's implementation of 
this part.
    (2) The procurement is expected to exceed the small purchase 
threshold fixed at 41 U.S.C. 403 (11) (currently $25,000) and is to be 
awarded without competition or only one bid or offer is received in 
response to a solicitation.
    (3) The procurement, which is expected to exceed the small purchase 
threshold, specifies a ``brand name'' product.
    (4) The proposed award over the small purchase threshold is to be 
awarded to other than the apparent low bidder under a sealed bid 
procurement.
    (5) A proposed contract modification changes the scope of a 
contract or increases the contract amount by more than the amount of 
the small purchase threshold.


Sec. 1210.45  Cost and price analysis.

    Some form of cost or price analysis shall be made and documented in 
the procurement files in connection with every procurement action. 
Price analysis may be accomplished in various ways, including the 
comparison of price quotations submitted, market prices and similar 
indicia, together with discounts. Cost analysis is the review and 
evaluation of each element of cost to determine reasonableness, 
allocability and allowability.


Sec. 1210.46  Procurement records.

    Procurement records and files for purchases in excess of the small 
purchase threshold shall include the following at a minimum:
    (a) Basis for contractor selection,
    (b) Justification for lack of competition when competitive bids or 
offers are not obtained, and
    (c) Basis for award cost or price.


Sec. 1210.47  Contract administration.

     A system for contract administration shall be maintained to ensure 
contractor conformance with the terms, conditions and specifications of 
the contract and to ensure adequate and timely follow up of all 
purchases. Recipients shall evaluate contractor performance and 
document, as appropriate, whether contractors have met the terms, 
conditions and specifications of the contract.


Sec. 1210.48  Contract provisions.

    The recipient shall include, in addition to provisions to define a 
sound and complete agreement, the following provisions in all 
contracts. The following provisions shall also be applied to 
subcontracts.
    (a) Contracts in excess of the small purchase threshold shall 
contain contractual provisions or conditions that allow for 
administrative, contractual, or legal remedies in instances in which a 
contractor violates or breaches the contract terms, and provide for 
such remedial actions as may be appropriate.
    (b) All contracts in excess of the small purchase threshold shall 
contain suitable provisions for termination by the recipient, including 
the manner by which termination shall be effected and the basis for 
settlement. In addition, 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) All negotiated contracts (except those for less than the small 
purchase threshold) awarded by recipients shall include a provision to 
the effect that the recipient, the NHPRC, 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 program for the 
purpose of making audits, examinations, excerpts and transcriptions.
    (d) All contracts, including small purchases, awarded by recipients 
and their contractors shall contain the procurement provisions of 
Appendix A to this Part, as applicable.

Reports and Records


Sec. 1210.50  Purpose of reports and records.

    Sections 1210.51 through 1210.53 set forth the procedures for 
monitoring and reporting on the recipient's financial and program 
performance and the necessary standard reporting forms. They also set 
forth record retention requirements.


Sec. 1210.51  Monitoring and reporting program performance.

    (a) Recipients are responsible for managing and monitoring each 
project, program, subaward, function or activity supported by the 
award. Recipients shall monitor subawards to ensure subrecipients have 
met the audit requirements as delineated in Sec. 1210.26.
    (b) Except as provided in paragraph (f) of this section, interim 
performance reports shall be submitted every six months and shall be 
due 30 days after the reporting period; final reports shall be due 90 
calendar days after the end of the grant period.
    (c) If inappropriate, a final performance report shall not be 
required after completion of the project.
    (d) When required, performance reports shall generally contain, for 
each award, brief information on each of the following.
    (1) A comparison of actual accomplishments with the goals and 
objectives established for the period, the findings of the 
investigator, or both. Whenever appropriate and the output of programs 
or projects can be readily quantified, such quantitative data should be 
related to cost data for computation of unit costs.
    (2) Reasons why established goals were not met, if appropriate.
    (3) Other pertinent information including, when appropriate, 
analysis and explanation of cost overruns or high unit costs.
    (e) Recipients shall not be required to submit more than the 
original and two copies of performance reports.
    (f) Recipients shall immediately notify the NHPRC of developments 
that have a significant impact on the award-

[[Page 53526]]
supported activities. Also, notification shall be given in the case of 
problems, delays, or adverse conditions which materially impair the 
ability to meet the objectives of the award. This notification shall 
include a statement of the action taken or contemplated, and any 
assistance needed to resolve the situation.
    (g) The NHPRC may make site visits, as needed.
    (h) The NHPRC shall comply with clearance requirements of 5 CFR 
Part 1320 when requesting performance data from recipients.


Sec. 1210.52  Financial reporting.

    (a) The following forms or such other forms as may be approved by 
OMB are authorized for obtaining financial information from recipients.
    (1) SF-269 or SF-269A, Financial Status Report.
    (i) The NHPRC requires recipients to use the SF-269 or SF-269A to 
report the status of funds for all nonconstruction projects or 
programs. The NHPRC may, however, have the option of not requiring the 
SF-269 or SF-269A when the SF-270, Request for Advance or 
Reimbursement, or SF-272, Report of Federal Cash Transactions, is 
determined to provide adequate information to meet its needs, except 
that a final SF-269 or SF-269A shall be required at the completion of 
the project when the SF-270 is used only for advances.
    (ii) The report may be on a cash or accrual basis.
    (iii) The NHPRC shall determine the frequency of the Financial 
Status Report for each project or program, considering the size and 
complexity of the particular project or program. However, the report 
shall not be required more frequently than quarterly or less frequently 
than annually. A final report shall be required at the completion of 
the agreement.
    (iv) The NHPRC shall require recipients to submit the SF-269 or SF-
269A (an original and no more than two copies) no later than 30 days 
after the end of each specified reporting period for quarterly and 
semi-annual reports, and 90 calendar days for annual and final reports. 
Extensions of reporting due dates may be approved by NHPRC upon request 
of the recipient.
    (2) SF-272, Report of Federal Cash Transactions.
    (i) When funds are advanced to recipients the NHPRC shall require 
each recipient to submit the SF-272 and, when necessary, its 
continuation sheet, SF-272a. The NHPRC shall use this report to monitor 
cash advanced to recipients and to obtain disbursement information for 
each agreement with the recipients.
    (ii) The NHPRC may require forecasts of Federal cash requirements 
in the ``Remarks'' section of the report.
    (iii) When practical and deemed necessary, the NHPRC may require 
recipients to report in the ``Remarks'' section the amount of cash 
advances received in excess of three days. Recipients shall provide 
short narrative explanations of actions taken to reduce the excess 
balances.
    (iv) Recipients shall be required to submit not more than the 
original and two copies of the SF-272 15 calendar days following the 
end of each quarter. The NHPRC may require a monthly report from those 
recipients receiving advances totaling $1 million or more per year.
    (v) The NHPRC may waive the requirement for submission of the SF-
272 for any one of the following reasons:
    (A) When monthly advances do not exceed $25,000 per recipient, 
provided that such advances are monitored through other forms contained 
in this section;
    (B) If, in the NHPRC's opinion, the recipient's accounting controls 
are adequate to minimize excessive Federal advances; or,
    (C) When the electronic payment mechanisms provide adequate data.
    (b) When the NHPRC needs additional information or more frequent 
reports, the following shall be observed.
    (1) When additional information is needed to comply with 
legislative requirements, the NHPRC shall issue instructions to require 
recipients to submit such information under the ``Remarks'' section of 
the reports.
    (2) When the NHPRC determines that a recipient's accounting system 
does not meet the standards in Sec. 1210.21, additional pertinent 
information to further monitor awards may be obtained upon written 
notice to the recipient until such time as the system is brought up to 
standard. The NHPRC, in obtaining this information, shall comply with 
report clearance requirements of 5 CFR Part 1320.
    (3) The NHPRC is encouraged to shade out any line item on any 
report if not necessary.
    (4) The NHPRC may accept the identical information from the 
recipients in machine readable format or computer printouts or 
electronic outputs in lieu of prescribed formats.
    (5) The NHPRC may provide computer or electronic outputs to 
recipients when such expedites or contributes to the accuracy of 
reporting.


Sec. 1210.53  Retention and access requirements for records.

    (a) This section sets forth requirements for record retention and 
access to records for awards to recipients. The NHPRC will not impose 
any other record retention or access requirements upon recipients.
    (b) Financial records, supporting documents, statistical records, 
and all other records pertinent to an award shall be retained for a 
period of three years from the date of submission of the final 
expenditure report or, for awards that are renewed quarterly or 
annually, from the date of the submission of the quarterly or annual 
financial report, as authorized by the NHPRC. The only exceptions are 
the following.
    (1) If any litigation, claim, or audit is started before the 
expiration of the 3-year period, the records shall be retained until 
all litigation, claims or audit findings involving the records have 
been resolved and final action taken.
    (2) Records for real property and equipment acquired with NHPRC 
funds shall be retained for 3 years after final disposition.
    (3) When records are transferred to or maintained by the NHPRC, the 
3-year retention requirement is not applicable to the recipient.
    (4) Indirect cost rate proposals, cost allocations plans, etc. as 
specified in paragraph (g) of this section.
    (c) Copies of original records may be substituted for the original 
records if authorized by the NHPRC.
    (d) The NHPRC shall request transfer of certain records to its 
custody from recipients when it determines that the records possess 
long term retention value. However, in order to avoid duplicate 
recordkeeping, the NHPRC may make arrangements for recipients to retain 
any records that are continuously needed for joint use.
    (e) The NHPRC, the Inspector General, Comptroller General of the 
United States, or any of their duly authorized representatives, have 
the right of timely and unrestricted access to any books, documents, 
papers, or other records of recipients that are pertinent to the 
awards, in order to make audits, examinations, excerpts, transcripts 
and copies of such documents. This right also includes timely and 
reasonable access to a recipient's personnel for the purpose of 
interview and discussion related to such documents. The rights of 
access in this paragraph are not limited to the required retention 
period, but shall last as long as records are retained.
    (f) Unless required by statute, the NHPRC will place no 
restrictions on recipients that limit public access to the 

[[Page 53527]]
records of recipients that are pertinent to an award, except when the 
NHPRC can demonstrate that such records shall be kept confidential and 
would have been exempted from disclosure pursuant to the Freedom of 
Information Act (5 U.S.C. 552) if the records had belonged to the 
NHPRC.
    (g) Indirect cost rate proposals, cost allocations plans, etc. 
Paragraphs (g)(1) and (g)(2) of this section apply to the following 
types of documents, and their supporting records: indirect cost rate 
computations or proposals, cost allocation plans, and any similar 
accounting computations of the rate at which a particular group of 
costs is chargeable (such as computer usage chargeback rates or 
composite fringe benefit rates).
    (1) If submitted for negotiation. If the recipient submits to the 
cognizant Federal agency or the subrecipient submits to the recipient 
the proposal, plan, or other computation to form the basis for 
negotiation of the rate, then the 3-year retention period for its 
supporting records starts on the date of such submission.
    (2) If not submitted for negotiation. If the recipient is not 
required to submit to the NHPRC or the subrecipient is not required to 
submit to the recipient the proposal, plan, or other computation for 
negotiation purposes, then the 3-year retention period for the 
proposal, plan, or other computation and its supporting records starts 
at the end of the fiscal year (or other accounting period) covered by 
the proposal, plan, or other computation.

Termination and Enforcement


Sec. 1210.60  Purpose of termination and enforcement.

    Sections 1210.61 and 1210.62 set forth uniform suspension, 
termination and enforcement procedures.


Sec. 1210.61  Termination.

    (a) Awards may be terminated in whole or in part only if paragraphs 
(1), (2) or (3) of this section apply.
    (1) By the NHPRC, if a recipient materially fails to comply with 
the terms and conditions of an award.
    (2) By the NHPRC with the consent of the recipient, in which case 
the two parties shall agree upon the termination conditions, including 
the effective date and, in the case of partial termination, the portion 
to be terminated.
    (3) By the recipient upon sending to the NHPRC written notification 
setting forth the reasons for such termination, the effective date, 
and, in the case of partial termination, the portion to be terminated. 
However, if the NHPRC determines in the case of partial termination 
that the reduced or modified portion of the grant will not accomplish 
the purposes for which the grant was made, it may terminate the grant 
in its entirety under either paragraphs (a)(1) or (2) of this section.
    (b) If costs are allowed under an award, the responsibilities of 
the recipient referred to in Sec. 1210.71(a), including those for 
property management as applicable, shall be considered in the 
termination of the award, and provision shall be made for continuing 
responsibilities of the recipient after termination, as appropriate.


Sec. 1210.62  Enforcement.

    (a) Remedies for noncompliance. If a recipient materially fails to 
comply with the terms and conditions of an award, whether stated in a 
Federal statute, regulation, assurance, application, or notice of 
award, the NHPRC may, in addition to imposing any of the special 
conditions outlined in Sec. 1210.14, take one or more of the following 
actions, as appropriate in the circumstances.
    (1) Temporarily withhold cash payments pending correction of the 
deficiency by the recipient or more severe enforcement action by the 
NHPRC.
    (2) Disallow (that is, deny both use of funds and any applicable 
matching credit for) all or part of the cost of the activity or action 
not in compliance.
    (3) Wholly or partly suspend or terminate the current award.
    (4) Withhold further awards for the project or program.
    (5) Take other remedies that may be legally available.
    (b) Hearings and appeals. In taking an enforcement action, the 
NHPRC shall provide the recipient an opportunity for hearing, appeal, 
or other administrative proceeding to which the recipient is entitled 
under any statute or regulation applicable to the action involved.
    (c) Effects of suspension and termination. Costs of a recipient 
resulting from obligations incurred by the recipient during a 
suspension or after termination of an award are not allowable unless 
the NHPRC expressly authorizes them in the notice of suspension or 
termination or subsequently. Other recipient costs during suspension or 
after termination which are necessary and not reasonably avoidable are 
allowable if paragraphs (c)(1) and (2) of this section apply.
    (1) The costs result from obligations which were properly incurred 
by the recipient before the effective date of suspension or 
termination, are not in anticipation of it, and in the case of a 
termination, are noncancellable.
    (2) The costs would be allowable if the award were not suspended or 
expired normally at the end of the funding period in which the 
termination takes effect.
    (d) Relationship to debarment and suspension. The enforcement 
remedies identified in this section, including suspension and 
termination, do not preclude a recipient from being subject to 
debarment and suspension under E.O.s 12549 and 12689 and NARA 
implementing regulations (see Sec. 1210.13).

Subpart D--After-the-Award Requirements


Sec. 1210.70  Purpose.

    Sections 1210.71 through 1210.73 contain closeout procedures and 
other procedures for subsequent disallowances and adjustments.


Sec. 1210.71  Closeout procedures.

    (a) Recipients shall submit, within 90 calendar days after the date 
of completion of the award, all financial, performance, and other 
reports as required by the terms and conditions of the award. The NHPRC 
may approve extensions when requested by the recipient.
    (b) Unless the NHPRC authorizes an extension, a recipient shall 
liquidate all obligations incurred under the award not later than 90 
calendar days after the funding period or the date of completion as 
specified in the terms and conditions of the award or in agency 
implementing instructions.
    (c) The NHPRC shall make prompt payments to a recipient for 
allowable reimbursable costs under the award being closed out.
    (d) The recipient shall promptly refund any balances of unobligated 
cash that the NHPRC has advanced or paid and that is not authorized to 
be retained by the recipient for use in other projects. OMB Circular A-
129 governs unreturned amounts that become delinquent debts.
    (e) When authorized by the terms and conditions of the award, the 
NHPRC shall make a settlement for any upward or downward adjustments to 
the Federal share of costs after closeout reports are received.
    (f) The recipient shall account for any real and personal property 
acquired with Federal funds or received from the Federal Government in 
accordance with Secs. 1210.31 through 1210.37.
    (g) In the event a final audit has not been performed prior to the 
closeout of an award, the NHPRC shall retain the right to recover an 
appropriate amount after fully considering the 

[[Page 53528]]
recommendations on disallowed costs resulting from the final audit.


Sec. 1210.72  Subsequent adjustments and continuing responsibilities.

    (a) The closeout of an award does not affect any of the following.
    (1) The right of the NHPRC to disallow costs and recover funds on 
the basis of a later audit or other review.
    (2) The obligation of the recipient to return any funds due as a 
result of later refunds, corrections, or other transactions.
    (3) Audit requirements in Sec. 1210.26.
    (4) Property management requirements in Secs. 1210.31 through 
1210.37.
    (5) Records retention as required in Sec. 1210.53.
    (b) After closeout of an award, a relationship created under an 
award may be modified or ended in whole or in part with the consent of 
the NHPRC and the recipient, provided the responsibilities of the 
recipient referred to in Sec. 1210.73(a), including those for property 
management as applicable, are considered and provisions made for 
continuing responsibilities of the recipient, as appropriate.


Sec. 1210.73  Collection of amounts due.

    (a) Any funds paid to a recipient in excess of the amount to which 
the recipient is finally determined to be entitled under the terms and 
conditions of the award constitute a debt to the Federal Government. If 
not paid within a reasonable period after the demand for payment, the 
NHPRC may reduce the debt by:
    (1) Making an administrative offset against other requests for 
reimbursements;
    (2) Withholding advance payments otherwise due to the recipient; or
    (3) Taking other action permitted by statute.
    (b) Except as otherwise provided by law, the NHPRC shall charge 
interest on an overdue debt in accordance with 4 CFR Chapter II, 
``Federal Claims Collection Standards.''

Appendix A to Part 1210--Contract Provisions

    All contracts, awarded by a recipient including small purchases, 
shall contain the following provisions as applicable:
    1. Equal Employment Opportunity--All contracts shall contain a 
provision requiring compliance with E.O. 11246, ``Equal Employment 
Opportunity,'' as amended by E.O. 11375, ``Amending Executive Order 
11246 Relating to Equal Employment Opportunity,'' and as 
supplemented by regulations at 41 CFR part 60, ``Office of Federal 
Contract Compliance Programs, Equal Employment Opportunity, 
Department of Labor.''
    2. Copeland ``Anti-Kickback'' Act (18 U.S.C. 874 and 40 U.S.C. 
276c)--All contracts and subgrants in excess of $2,000 for 
construction or repair awarded by recipients and subrecipients shall 
include a provision for compliance with the Copeland ``Anti-
Kickback'' Act (18 U.S.C. 874), as supplemented by Department of 
Labor regulations (29 CFR part 3, ``Contractors and Subcontractors 
on Public Building or Public Work Financed in Whole or in Part by 
Loans or Grants from the United States''). The Act provides that 
each contractor or subrecipient 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 recipient shall report all 
suspected or reported violations to the Federal awarding agency.
    3. Davis-Bacon Act, as amended (40 U.S.C. 276a to a-7)--When 
required by Federal program legislation, all construction contracts 
awarded by the recipients and subrecipients of more than $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, ``Labor Standards Provisions Applicable 
to Contracts Governing Federally Financed and Assisted 
Construction''). 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 than once a week. The recipient 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 recipient shall report all suspected or reported violations to 
the Federal awarding agency.
    4. Contract Work Hours and Safety Standards Act (40 U.S.C. 327-
333)--Where applicable, all contracts awarded by recipients in 
excess of $2,000 for construction contracts and in excess of $2,500 
for other contracts that involve the employment of mechanics or 
laborers shall include a provision for compliance with Sections 102 
and 107 of the Contract Work Hours and Safety Standards Act (40 
U.S.C. 327-333), as supplemented by Department of Labor regulations 
(29 CFR part 5). Under Section 102 of the Act, each contractor shall 
be required to compute the wages of every mechanic and laborer on 
the basis of a standard work week of 40 hours. Work in excess of the 
standard work week is permissible provided that the worker is 
compensated at a rate of not less than 1\1/2\ times the basic rate 
of pay for all hours worked in excess of 40 hours in the work week. 
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. These requirements do not apply to the 
purchases of supplies or materials or articles ordinarily available 
on the open market, or contracts for transportation or transmission 
of intelligence.
    5. Rights to Inventions Made Under a Contract or Agreement--
Contracts or agreements for the performance of experimental, 
developmental, or research work shall provide for the rights of the 
Federal Government and the recipient in any resulting invention in 
accordance with 37 CFR part 401, ``Rights to Inventions Made by 
Nonprofit Organizations and Small Business Firms Under Government 
Grants, Contracts and Cooperative Agreements,'' and any implementing 
regulations issued by the awarding agency.
    6. Clean Air Act (42 U.S.C. 7401 et seq.) and the Federal Water 
Pollution Control Act (33 U.S.C. 1251 et seq.), as amended--
Contracts and subgrants of amounts in excess of $100,000 shall 
contain a provision that requires the recipient to agree to comply 
with all applicable standards, orders or regulations issued pursuant 
to the Clean Air Act (42 U.S.C. 7401 et seq.) and the Federal Water 
Pollution Control Act as amended (33 U.S.C. 1251 et seq.). 
Violations shall be reported to the Federal awarding agency and the 
Regional Office of the Environmental Protection Agency (EPA).
    7. Byrd Anti-Lobbying Amendment (31 U.S.C. 1352)--Contractors 
who apply or bid for an award of $100,000 or more shall file the 
required certification. Each tier certifies to the tier above that 
it will not and has not used Federal appropriated funds to pay any 
person or organization for influencing or attempting to influence an 
officer or employee of any agency, a member of Congress, officer or 
employee of Congress, or an employee of a member of Congress in 
connection with obtaining any Federal contract, grant or any other 
award covered by 31 U.S.C. 1352. Each tier shall also disclose any 
lobbying with non-Federal funds that takes place in connection with 
obtaining any Federal award. Such disclosures are forwarded from 
tier to tier up to the recipient.
    8. Debarment and Suspension (E.O. 12549 and E.O. 12689)--No 
contract shall be made to parties listed on the General Services 
Administration's List of Parties Excluded from Federal Procurement 
or Nonprocurement Programs in accordance with E.O. 12549 and E.O. 
12689, ``Debarment and Suspension.'' This list contains the names of 
parties debarred, suspended, or otherwise excluded by agencies, and 
contractors declared ineligible under statutory or regulatory 
authority other than E.O. 12549. Contractors with awards that exceed 
the small purchase threshold shall provide the required 
certification regarding its exclusion status and that of its 
principal employees.

    Dated: August 31, 1995.
John W. Carlin,
Archivist of the United States.
[FR Doc. 95-25548 Filed 10-13-95; 8:45 am]
BILLING CODE 7515-01-P