[Federal Register Volume 74, Number 77 (Thursday, April 23, 2009)]
[Rules and Regulations]
[Pages 18449-18463]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-9073]



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  Federal Register / Vol. 74, No. 77 / Thursday, April 23, 2009 / Rules 
and Regulations  

[[Page 18449]]



OFFICE OF MANAGEMENT AND BUDGET

2 CFR Part 176


Requirements for Implementing Sections 1512, 1605, and 1606 of 
the American Recovery and Reinvestment Act of 2009 for Financial 
Assistance Awards

AGENCY: Office of Federal Financial Management, Office of Management 
and Budget (OMB).

ACTION: Interim final guidance.

-----------------------------------------------------------------------

SUMMARY: The Office of Federal Financial Management (OFFM) is 
establishing Governmentwide guidance and standard award terms for 
agencies to include in financial assistance awards (namely, grants, 
cooperative agreements, and loans) as part of their implementation of 
sections 1512, and 1605, and 1606 of the American Recovery and 
Reinvestment Act of 2009 (Pub. L. 111-5). This guidance does not cover 
all award terms that may be needed on financial assistance awards 
funded directly or assisted by the Federal Government under the 
Recovery Act. The focus of this guidance is on implementing Recovery 
Act provisions that may require greater clarification in order to 
foster consistent application across the Federal Government. Under the 
interim final guidance, agencies would use the standard award terms in 
their financial assistance awards to require recipients and 
subrecipients (first-tier that are not individuals) to maintain current 
registrations in the Central Contractor Registration (CCR) database; to 
require recipients to report quarterly on project or activity status, 
subgrant and subcontract information; to notify recipients of the 
domestic sourcing (``Buy American'') requirements that apply to certain 
iron, steel and manufactured goods; to notify recipients of the wage 
rate requirements that apply to certain projects; and to ensure proper 
accounting and reporting of Recovery Act expenditures in single audits.

DATES: This document is effective April 23, 2009. To be considered in 
preparation of the final guidance, comments on the interim final 
guidance must be received by no later than June 22, 2009.

ADDRESSES: Due to potential delays in OMB's receipt and processing of 
mail sent through the U.S. Postal Service, we encourage respondents to 
submit comments electronically to ensure timely receipt. We cannot 
guarantee that comments mailed will be received before the comment 
closing date.
    Comments may be sent to via http://www.regulations.gov--a Federal 
E-Government Web site that allows the public to find, review, and 
submit comments on documents that agencies have published in the 
Federal Register and that are open for comment. Simply type ``Recovery 
Act Guidance'' (in quotes) in the Comment or Submission search box, 
click Go, and follow the instructions for submitting comments. Comments 
received by the date specified above will be included as part of the 
official record.
    Electronic mail comments may also be submitted to: Marguerite 
Pridgen at [email protected]. Please include ``Recovery Act 
Guidance'' in the subject line and the full body of your comments in 
the text of the electronic message and not as an attachment. Please 
include your name, title, organization, postal address, telephone 
number, and e-mail address in the text of the message. Comments may 
also be submitted via facsimile to (202) 395-3952.
    Comments may be mailed to Marguerite Pridgen, Office of Federal 
Financial Management, Office of Management and Budget, Room 6025, New 
Executive Office Building, Washington, DC 20503.
    All responses will be summarized and included in the request for 
OMB approval.

FOR FURTHER INFORMATION CONTACT: Marguerite Pridgen, Office of Federal 
Financial Management, Office of Management and Budget, telephone (202) 
395-7844 (direct) or (202) 395-3993 (main office) and e-mail: 
[email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    A. Section 1512(c) of the American Recovery and Reinvestment Act of 
2009 (Pub. L. 111-5, hereafter referred to as ``the Recovery Act'' or 
``the Act'') requires, as a condition of receipt of funds, quarterly 
reporting on the use of funds. The data elements proposed for reporting 
the information described in section 1512(c) were published in the 
Federal Register on April 1, 2009 [74 FR 14824]. An entity that 
receives assistance funding under the Recovery Act must report 
information including, but not limited to,
    i. The total amount of recovery funds received from that agency;
    ii. The amount of recovery funds received that were expended or 
obligated to projects or activities; and
    iii. A detailed list of all projects or activities for which 
recovery funds were expended or obligated, including--
    1. The name of the project or activity;
    2. A description of the project or activity;
    3. An evaluation of the completion status of the project or 
activity;
    4. An estimate of the number of jobs created and the number of jobs 
retained by the project or activity; and
    5. For infrastructure investments made by State and local 
governments, the purpose, total cost, and rationale of the agency for 
funding the infrastructure investment with funds made available under 
this Act, and name of the person to contact at the agency if there are 
concerns with the infrastructure investment.
    iv. Detailed information on any subcontracts or subgrants awarded 
by the recipient to include the data elements required to comply with 
the Federal Funding Accountability and Transparency Act of 2006, as 
amended (Pub. L. 109-282, hereafter referred to as ``the Transparency 
Act''), allowing aggregate reporting on awards below $25,000 or to 
individuals, as prescribed by the Director of the Office of Management 
and Budget. The Transparency Act identifies specific data elements that 
the Web site (USAspending.gov) must include for each Federal award and 
authorizes OMB to specify additional elements for other relevant 
information. A 2008 amendment to the Transparency Act called the 
``Government Funding Transparency Act of 2008'' (Pub. L. 110-252) added 
a requirement to collect

[[Page 18450]]

compensation information on certain chief executive officers (CEOs) of 
the recipient and subrecipient entity. An entity that receives 
assistance funding under the Recovery Act must report information 
required under the Transparency Act including, but not limited to,
    1. The name of the entity receiving the award;
    2. The amount of the award;
    3. The transaction type;
    4. The funding agency;
    5. The Catalog of Federal Domestic Assistance number;
    6. The program source;
    7. The location of the entity receiving the award, including four 
data elements for the city, State, Congressional district, and country;
    8. The location of the primary place of performance under the 
award, including four data elements for the city, State, Congressional 
district, and country;
    9. A unique identifier of the entity receiving the award;
    10. A unique identifier of the parent entity of the recipient, 
should the recipient be owned by another entity; and
    11. The names and total compensation of the five most highly 
compensated officers of the company if it received (1) 80% or more of 
its annual gross revenues in Federal awards; and (2) $25M or more in 
annual gross revenue from Federal awards.
    B. Section 1512(h) of the Recovery Act requires recipients of 
Recovery Act funds, including those receiving funds directly from the 
Federal Government, to register in the Central Contractor Registration 
(CCR) database at http://www.ccr.gov. Because recipients must report 
information on their first-tier contracts and awards, 2 CFR part 176 
would establish a requirement for subrecipient registration in the CCR 
as a way to help ensure consistent reporting of data about each entity 
and thereby make the data more useful to the public. Without the 
requirement, multiple recipients doing business with the same entity 
may use different variations of the entity's name, address, or parent 
organization when they each report on their awards to the entity. It 
should be noted that in order to register in CCR, a valid Data 
Universal Numbering System (DUNS) Number is required.
    C. Section 1605 of the Recovery Act requires that projects, funded 
by the Recovery Act, for the construction, alteration, maintenance, or 
repair of a public building or public work use American iron, steel, 
and manufactured goods in the project unless one of the specified 
exemptions applies. The Act provides that this requirement be applied 
in a manner consistent with U.S. obligations under international 
agreements. Definitions of ``manufactured good,'' ``public building and 
public work,'' and other terms as they pertain to the Buy American 
guidance in 2 CFR part 176 are found in Sec.  176.140 and Sec.  
176.160.
    D. Section 1606 of the Recovery Act requires the payment of Davis-
Bacon Act (40 U.S.C. 31) wage rates to ``laborers and mechanics 
employed by contractors and subcontractors on projects funded directly 
by or assisted in whole or in part by and through the Federal 
Government'' pursuant to the Recovery Act.
    E. To maximize the transparency and accountability of funds 
authorized under the Recovery Act as required by Congress and in 
accordance with 2 CFR 215.21, ``Uniform Administrative Requirements for 
Grants and Agreements With Institutions of Higher Education, Hospitals, 
and other Non-Profit Organizations'' and OMB Circular A-102 Common 
Rules provisions, recipients agree to maintain records that identify 
adequately the source and application of Recovery Act funds. Guidance 
and an award term are provided in part 176 to help ensure that 
recipients understand their responsibilities with respect to tracking, 
accounting and reporting transactions during the award and in preparing 
audit documentation and reports in accordance with OMB Circular A-133, 
if applicable.

II. Next Steps

    We will consider all comments received on the interim final version 
of the OMB guidance as we develop the final guidance. Federal agencies 
that award grants, cooperative agreements, and other financial 
assistance awards will immediately implement this interim final 
guidance through the appropriate award terms. The award terms on awards 
made while this interim final version of this guidance is in effect do 
not need to be modified to reflect any modified award terms in the 
final guidance unless specifically required in the final guidance.

List of Subjects in 2 CFR Part 176

    Assistance awards, Authorized agency action official, Award 
officials, Buy American, Classified, Davis-Bacon Act, Grants, 
Cooperative agreements, Loans, Recovery Act, Wage rate.

Danny Werfel,
Deputy Controller.

0
For the reasons set forth above, the Office of Management and Budget 
amends 2 CFR chapter I by adding part 176 to read as follows:

PART 176--AWARD TERMS FOR ASSISTANCE AGREEMENTS THAT INCLUDE FUNDS 
UNDER THE AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009, PUBLIC 
LAW 111-5

Sec.
176.10 Purpose of this part.
176.20 Agency responsibilities (general).
176.30 Definitions.
Subpart A--Reporting and Registration Requirements under Section 1512 
of the American Recovery and Reinvestment Act of 2009
176.40 Procedure.
176.50 Award term--Reporting and registration requirements under 
section 1512 of the Recovery Act.
Subpart B--Buy American Requirement Under Section 1605 of the American 
Recovery and Reinvestment Act of 2009
176.60 Statutory requirement.
176.70 Policy.
176.80 Exceptions.
176.90 Non-application to acquisitions covered under international 
agreements.
176.100 Timely determination concerning the inapplicability of 
section 1605 of the Recovery Act.
176.110 Evaluating proposals of foreign iron, steel, and/or 
manufactured goods.
176.120 Determinations on late requests.
176.130 Noncompliance.
176.140 Award term--Required Use of American Iron, Steel, and 
Manufactured Goods--Section 1605 of the American Recovery and 
Reinvestment Act of 2009.
176.150 Notice of Required Use of American Iron, Steel, and 
Manufactured Goods--Section 1605 of the American Recovery and 
Reinvestment Act of 2009.
176.160 Award term--Required Use of American Iron, Steel, and 
Manufactured Goods (covered under International Agreements)--Section 
1605 of the American Recovery and Reinvestment Act of 2009.
176.170 Notice of Required Use of American Iron, Steel, and 
Manufactured Goods (covered under International Agreements)--Section 
1605 of the American Recovery and Reinvestment Act of 2009.

Appendix to Subpart B of Part 176--U.S. States, Other Sub-Federal 
Entities, and Other Entities Subject to U.S. Obligations Under 
International Agreements

Subpart C--Wage Rate Requirements Under Section 1606 of the American 
Recovery and Reinvestment Act of 2009
176.180 Procedure.

[[Page 18451]]

176.190 Award term--Wage Rate Requirements under Section 1606 of the 
American Recovery and Reinvestment Act of 2009.
Subpart D--Single Audit Information for Recipients of Recovery Act 
Funds
176.200 Procedure.
176.210 Award term--Recovery Act Transactions listed in Schedule of 
Expenditures of Federal Awards and Recipient Responsibilities for 
Informing Subrecipients.

    Authority: American Recovery and Reinvestment Act of 2009, 
Public Law 111-5; Federal Funding Accountability and Transparency 
Act of 2006, (Pub. L. 109-282), as amended.


Sec.  176.10   Purpose of this part.

    This part establishes Federal Governmentwide award terms for 
financial assistance awards, namely, grants, cooperative agreements, 
and loans, to implement the cross-cutting requirements of the American 
Recovery and Reinvestment Act of 2009, Public Law 111-5 (Recovery Act). 
These requirements are cross-cutting in that they apply to more than 
one agency's awards.


Sec.  176.20   Agency responsibilities (general).

    (a) In any assistance award funded in whole or in part by the 
Recovery Act, the award official shall indicate that the award is being 
made under the Recovery Act, and indicate what projects and/or 
activities are being funded under the Recovery Act. This requirement 
applies whenever Recovery Act funds are used, regardless of the 
assistance type.
    (b) To maximize transparency of Recovery Act funds required for 
reporting by the assistance recipient, the award official shall 
consider structuring assistance awards to allow for separately tracking 
Recovery Act funds.
    (c) Award officials shall ensure that recipients comply with the 
Recovery Act requirements of Subpart A. If the recipient fails to 
comply with the reporting requirements or other award terms, the award 
official or other authorized agency action official shall take the 
appropriate enforcement or termination action in accordance with 2 CFR 
215.62 or the agency's implementation of the OMB Circular A-102 grants 
management common rule. OMB Circular A-102 is available at http://www.whitehouse.gov/omb/circulars/a102/a102.html.
    (d) The award official shall make the recipient's failure to comply 
with the reporting requirements a part of the recipient's performance 
record.


Sec.  176.30   Definitions.

    As used in this part--
    Award means any grant, cooperative agreement or loan made with 
Recovery Act funds. Award official means a person with the authority to 
enter into, administer, and/or terminate financial assistance awards 
and make related determinations and findings.
    Classified or ``classified information'' means any knowledge that 
can be communicated or any documentary material, regardless of its 
physical form or characteristics, that--
    (1)(i) Is owned by, is produced by or for, or is under the control 
of the United States Government; or
    (ii) Has been classified by the Department of Energy as privately 
generated restricted data following the procedures in 10 CFR 1045.21; 
and
    (2) Must be protected against unauthorized disclosure according to 
Executive Order 12958, Classified National Security Information, April 
17, 1995, or classified in accordance with the Atomic Energy Act of 
1954.
    Recipient means any entity other than an individual that receives 
Recovery Act funds in the form of a grant, cooperative agreement or 
loan directly from the Federal Government.
    Recovery funds or Recovery Act funds are funds made available 
through the appropriations of the American Recovery and Reinvestment 
Act of 2009, Public Law 111-5.
    Subaward means--
    (1) A legal instrument to provide support for the performance of 
any portion of the substantive project or program for which the 
recipient received this award and that the recipient awards to an 
eligible subrecipient;
    (2) The term does not include the recipient's procurement of 
property and services needed to carry out the project or program (for 
further explanation, see Sec. ----.210 of the attachment to OMB 
Circular A-133, ``Audits of States, Local Governments, and Non-Profit 
Organizations''). OMB Circular A-133 is available at http://www.whitehouse.gov/omb/circulars/a133/a133.html.
    (3) A subaward may be provided through any legal agreement, 
including an agreement that the recipient or a subrecipient considers a 
contract.
    Subcontract means a legal instrument used by a recipient for 
procurement of property and services needed to carry out the project or 
program.
    Subrecipient or Subawardee means a non-Federal entity that expends 
Federal awards received from a pass-through entity to carry out a 
Federal program, but does not include an individual that is a 
beneficiary of such a program. A subrecipient may also be a recipient 
of other Federal awards directly from a Federal awarding agency. 
Guidance on distinguishing between a subrecipient and a vendor is 
provided in Sec. ----.210 of OMB Circular A-133.

Subpart A--Reporting and Registration Requirements Under Section 
1512 of the American Recovery and Reinvestment Act of 2009


Sec.  176.40   Procedure.

    The award official shall insert the standard award term in this 
Subpart in all awards funded in whole or in part with Recovery Act 
funds, except for those that are classified, awarded to individuals, or 
awarded under mandatory and entitlement programs, except as 
specifically required by OMB, or expressly exempted from the reporting 
requirement in the Recovery Act.


Sec.  176.50   Award term--Reporting and registration requirements 
under section 1512 of the Recovery Act.

    Agencies are responsible for ensuring that their recipients report 
information required under the Recovery Act in a timely manner. The 
following award term shall be used by agencies to implement the 
recipient reporting and registration requirements in section 1512:
    (a) This award requires the recipient to complete projects or 
activities which are funded under the American Recovery and 
Reinvestment Act of 2009 (Recovery Act) and to report on use of 
Recovery Act funds provided through this award. Information from these 
reports will be made available to the public.
    (b) The reports are due no later than ten calendar days after each 
calendar quarter in which the recipient receives the assistance award 
funded in whole or in part by the Recovery Act.
    (c) Recipients and their first-tier recipients must maintain 
current registrations in the Central Contractor Registration (http://www.ccr.gov) at all times during which they have active federal awards 
funded with Recovery Act funds. A Dun and Bradstreet Data Universal 
Numbering System (DUNS) Number (http://www.dnb.com) is one of the 
requirements for registration in the Central Contractor Registration.
    (d) The recipient shall report the information described in section 
1512(c) of the Recovery Act using the reporting instructions and data 
elements that will be provided online at http://www.FederalReporting.gov and ensure that any information that is pre-
filled is corrected or updated as needed.

[[Page 18452]]

Subpart B--Buy American Requirement Under Section 1605 of the 
American Recovery and Reinvestment Act of 2009


Sec.  176.60  Statutory requirement.

    Section 1605 of the Recovery Act prohibits use of recovery funds 
for a project for the construction, alteration, maintenance, or repair 
of a public building or public work unless all of the iron, steel, and 
manufactured goods used in the project are produced in the United 
States. The law requires that this prohibition be applied in a manner 
consistent with U.S. obligations under international agreements, and it 
provides for waiver under three circumstances:
    (a) Iron, steel, or relevant manufactured goods are not produced in 
the United States in sufficient and reasonably available quantities and 
of a satisfactory quality;
    (b) Inclusion of iron, steel, or manufactured goods produced in the 
United States will increase the cost of the overall project by more 
than 25 percent; or
    (c) Applying the domestic preference would be inconsistent with the 
public interest.


Sec.  176.70   Policy.

    Except as provided in Sec.  176.80 or Sec.  176.90--
    (a) None of the funds appropriated or otherwise made available by 
the Recovery Act may be used for a project for the construction, 
alteration, maintenance, or repair of a public building or public work 
(see definitions at Sec. Sec.  176.140 and 176.160) unless--
    (1) The public building or public work is located in the United 
States; and
    (2) All of the iron, steel, and manufactured goods used in the 
project are produced or manufactured in the United States.
    (i) Production in the United States of the iron or steel used in 
the project requires that all manufacturing processes must take place 
in the United States, except metallurgical processes involving 
refinement of steel additives. These requirements do not apply to iron 
or steel used as components or subcomponents of manufactured goods used 
in the project.
    (ii) There is no requirement with regard to the origin of 
components or subcomponents in manufactured goods used in the project, 
as long as the manufacturing occurs in the United States.
    (b) Paragraph (a) of this section shall not apply where the 
Recovery Act requires the application of alternative Buy American 
requirements for iron, steel, and manufactured goods.


Sec.  176.80   Exceptions.

    (a) When one of the following exceptions applies in a case or 
category of cases, the award official may allow the recipient to use 
foreign iron, steel and/or manufactured goods in the project without 
regard to the restrictions of section 1605 of the Recovery Act:
    (1) Nonavailability. The head of the Federal department or agency 
may determine that the iron, steel or relevant manufactured good is not 
produced or manufactured in the United States in sufficient and 
reasonably available commercial quantities of a satisfactory quality. 
The determinations of nonavailability of the articles listed at 48 CFR 
25.104(a) and the procedures at 48 CFR 25.103(b)(1) also apply if any 
of those articles are manufactured goods needed in the project.
    (2) Unreasonable cost. The head of the Federal department or agency 
may determine that the cost of domestic iron, steel, or relevant 
manufactured goods will increase the cost of the overall project by 
more than 25 percent in accordance with Sec.  176.110.
    (3) Inconsistent with public interest. The head of the Federal 
department or agency may determine that application of the restrictions 
of section 1605 of the Recovery Act would be inconsistent with the 
public interest.
    (b) When a determination is made for any of the reasons stated in 
this section that certain foreign iron, steel, and/or manufactured 
goods may be used--
    (1) The award official shall list the excepted materials in the 
award; and
    (2) The head of the Federal department or agency shall publish a 
notice in the Federal Register within two weeks after the determination 
is made, unless the item has already been determined to be domestically 
nonavailable. A list of items that are not domestically available is at 
48 CFR 25.104(a). The Federal Register notice or information from the 
notice may be posted by OMB to Recovery.gov. The notice shall include--
    (i) The title ``Buy American Exception under the American Recovery 
and Reinvestment Act of 2009'';
    (ii) The dollar value and brief description of the project; and
    (iii) A detailed written justification as to why the restriction is 
being waived.


Sec.  176.90  Non-application to acquisitions covered under 
international agreements.

    Acquisitions covered by international agreements. Section 1605(d) 
of the Recovery Act provides that the Buy American requirement in 
section 1605 shall be applied in a manner consistent with U.S. 
obligations under international agreements.
    (a) The Buy American requirement set out in Sec.  176.70 shall not 
be applied where the iron, steel, or manufactured goods used in the 
project are from a Party to an international agreement, listed in 
paragraph (b)(2) of this section, and the recipient is required under 
an international agreement, described in the appendix to this subpart, 
to treat the goods and services of that Party the same as domestic 
goods and services. This obligation shall only apply to projects with 
an estimated value of $7,443,000 or more and projects that are not 
specifically excluded from the application of those agreements.
    (b) The international agreements that obligate recipients that are 
covered under an international agreement to treat the goods and 
services of a Party the same as domestic goods and services and the 
respective Parties to the agreements are:
    (1) The World Trade Organization Government Procurement Agreement 
(Aruba, Austria, Belgium, Bulgaria, Canada, Cyprus, Czech Republic, 
Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, 
Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, 
Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, 
Poland, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, 
Sweden, Switzerland, and United Kingdom);
    (2) The following Free Trade Agreements:
    (i) Dominican Republic-Central America-United States Free Trade 
Agreement (Costa Rica, Dominican Republic, El Salvador, Guatemala, 
Honduras, Nicaragua);
    (ii) North American Free Trade Agreement (NAFTA) (Canada and 
Mexico);
    (iii) United States-Australia Free Trade Agreement;
    (iv) United States-Bahrain Free Trade Agreement;
    (v) United States-Chile Free Trade Agreement;
    (vi) United States-Israel Free Trade Agreement;
    (vii) United States-Morocco Free Trade Agreement;
    (viii) United States-Oman Free Trade Agreement;
    (ix) United States-Peru Trade Promotion Agreement; and
    (x) United States-Singapore Free Trade Agreement.
    (3) United States-European Communities Exchange of Letters (May 15, 
1995): Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark,

[[Page 18453]]

Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, 
Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, 
Romania, Slovak Republic, Slovenia, Spain, Sweden, and United Kingdom.


Sec.  176.100  Timely determination concerning the inapplicability of 
section 1605 of the Recovery Act.

    (a) The head of the Federal department or agency involved may make 
a determination regarding inapplicability of section 1605 to a 
particular case or to a category of cases.
    (b) Before Recovery Act funds are awarded by the Federal agency or 
obligated by the recipient for a project for the construction, 
alteration, maintenance, or repair of a public building or public work, 
an applicant or recipient may request from the award official a 
determination concerning the inapplicability of section 1605 of the 
Recovery Act for specifically identified items.
    (c) The time for submitting the request and the information and 
supporting data that must be included in the request are to be 
specified in the agency's and recipient's request for applications and/
or proposals, and as appropriate, in other written communications. The 
content of those communications should be consistent with the notice in 
Sec.  176.150 or Sec.  176.170, whichever applies.
    (d) The award official must evaluate all requests based on the 
information provided and may supplement this information with other 
readily available information.
    (e) In making a determination based on the increased cost to the 
project of using domestic iron, steel, and/or manufactured goods, the 
award official must compare the total estimated cost of the project 
using foreign iron, steel and/or relevant manufactured goods to the 
estimated cost if all domestic iron, steel, and/or relevant 
manufactured goods were used. If use of domestic iron, steel, and/or 
relevant manufactured goods would increase the cost of the overall 
project by more than 25 percent, then the award official shall 
determine that the cost of the domestic iron, steel, and/or relevant 
manufactured goods is unreasonable.


Sec.  176.110  Evaluating proposals of foreign iron, steel, and/or 
manufactured goods.

    (a) If the award official receives a request for an exception based 
on the cost of certain domestic iron, steel, and/or manufactured goods 
being unreasonable, in accordance with Sec.  176.80, then the award 
official shall apply evaluation factors to the proposal to use such 
foreign iron, steel, and/or manufactured goods as follows:
    (1) Use an evaluation factor of 25 percent, applied to the total 
estimated cost of the project, if the foreign iron, steel, and/or 
manufactured goods are to be used in the project based on an exception 
for unreasonable cost requested by the applicant.
    (2) Total evaluated cost = project cost estimate + (.25 x project 
cost estimate, if paragraph (a)(1) of this section applies).
    (b) Applicants or recipients also may submit alternate proposals 
based on use of equivalent domestic iron, steel, and/or manufactured 
goods to avoid possible denial of Recovery Act funding for the proposal 
if the Federal Government determines that an exception permitting use 
of the foreign item(s) does not apply.
    (c) If the award official makes an award to an applicant that 
proposed foreign iron, steel, and/or manufactured goods not listed in 
the applicable notice in the request for applications or proposals, 
then the award official must add the excepted materials to the list in 
the award term.


Sec.  176.120  Determinations on late requests.

    (a) If a recipient requests a determination regarding the 
inapplicability of section 1605 of the Recovery Act after obligating 
Recovery Act funds for a project for construction, alteration, 
maintenance, or repair (late request), the recipient must explain why 
it could not request the determination before making the obligation or 
why the need for such determination otherwise was not reasonably 
foreseeable. If the award official concludes that the recipient should 
have made the request before making the obligation, the award official 
may deny the request.
    (b) The award official must base evaluation of any late request for 
a determination regarding the inapplicability of section 1605 of the 
Recovery Act on information required by Sec.  176.150(c) and (d) or 
Sec.  176.170(c) and (d) and/or other readily available information.
    (c) If a determination, under Sec.  176.80 is made after Recovery 
Act funds were obligated for a project for construction, alteration, 
maintenance, or repair that an exception to section 1605 of the 
Recovery Act applies, the award official must amend the award to allow 
use of the foreign iron, steel, and/or relevant manufactured goods. 
When the basis of the exception is nonavailability or public interest, 
the amended award shall reflect adjustment of the award amount, 
redistribution of budgeted funds, and/or other appropriate actions 
taken to cover costs associated with acquiring or using the foreign 
iron, steel, and/or manufactured goods. When the basis for the 
exception is the unreasonable cost of domestic iron, steel, and/or 
manufactured goods the award official shall adjust the award amount or 
the budget, as appropriate, by at least the differential established in 
Sec.  176.110(a).


Sec.  176.130  Noncompliance.

    The award official must--
    (a) Review allegations of violations of section 1605 of the 
Recovery Act;
    (b) Unless fraud is suspected, notify the recipient of the apparent 
unauthorized use of foreign iron, steel, and/or manufactured goods and 
request a reply, to include proposed corrective action; and
    (c) If the review reveals that a recipient or subrecipient has used 
foreign iron, steel, and/or manufactured goods without authorization, 
take appropriate action, including one or more of the following:
    (1) Process a determination concerning the inapplicability of 
section 1605 of the Recovery Act in accordance with Sec.  176.120.
    (2) Consider requiring the removal and replacement of the 
unauthorized foreign iron, steel, and/or manufactured goods.
    (3) If removal and replacement of foreign iron, steel, and/or 
manufactured goods used in a public building or a public work would be 
impracticable, cause undue delay, or otherwise be detrimental to the 
interests of the Federal Government, the award official may determine 
in writing that the foreign iron, steel, and/or manufactured goods need 
not be removed and replaced. A determination to retain foreign iron, 
steel, and/or manufactured goods does not constitute a determination 
that an exception to section 1605 of the Recovery Act applies, and this 
should be stated in the determination. Further, a determination to 
retain foreign iron, steel, and/or manufactured goods does not affect 
the Federal Government's right to reduce the amount of the award by the 
cost of the steel, iron, or manufactured goods that are used in the 
project or to take enforcement or termination action in accordance with 
the agency's grants management regulations.
    (4) If the noncompliance is sufficiently serious, consider 
exercising appropriate remedies, such as withholding cash payments 
pending correction of the deficiency, suspending or terminating the 
award, and withholding further awards for the project. Also consider 
preparing and

[[Page 18454]]

forwarding a report to the agency suspending or debarring official in 
accordance with the agency's debarment rule implementing 2 CFR part 
180. If the noncompliance appears to be fraudulent, refer the matter to 
other appropriate agency officials, such as the officer responsible for 
criminal investigation.


Sec.  176.140  Award term--Required Use of American Iron, Steel, and 
Manufactured Goods--Section 1605 of the American Recovery and 
Reinvestment Act of 2009.

    When awarding Recovery Act funds for construction, alteration, 
maintenance, or repair of a public building or public work that does 
not involve iron, steel, and/or manufactured goods covered under 
international agreements, the agency shall use the award term described 
in the following paragraphs:
    (a) Definitions. As used in this award term and condition--
    (1) Manufactured good means a good brought to the construction site 
for incorporation into the building or work that has been--
    (i) Processed into a specific form and shape; or
    (ii) Combined with other raw material to create a material that has 
different properties than the properties of the individual raw 
materials.
    (2) Public building and public work means a public building of, and 
a public work of, a governmental entity (the United States; the 
District of Columbia; commonwealths, territories, and minor outlying 
islands of the United States; State and local governments; and multi-
State, regional, or interstate entities which have governmental 
functions). These buildings and works may include, without limitation, 
bridges, dams, plants, highways, parkways, streets, subways, tunnels, 
sewers, mains, power lines, pumping stations, heavy generators, 
railways, airports, terminals, docks, piers, wharves, ways, 
lighthouses, buoys, jetties, breakwaters, levees, and canals, and the 
construction, alteration, maintenance, or repair of such buildings and 
works.
    (3) Steel means an alloy that includes at least 50 percent iron, 
between .02 and 2 percent carbon, and may include other elements.
    (b) Domestic preference. (1) This award term and condition 
implements Section 1605 of the American Recovery and Reinvestment Act 
of 2009 (Recovery Act) (Pub. L. 111-5), by requiring that all iron, 
steel, and manufactured goods used in the project are produced in the 
United States except as provided in paragraph (b)(3) and (b)(4) of this 
section and condition.
    (2) This requirement does not apply to the material listed by the 
Federal Government as follows:
-----------------------------------------------------------------------

    [Award official to list applicable excepted materials or indicate 
``none'']
    (3) The award official may add other iron, steel, and/or 
manufactured goods to the list in paragraph (b)(2) of this section and 
condition if the Federal Government determines that--
    (i) The cost of the domestic iron, steel, and/or manufactured goods 
would be unreasonable. The cost of domestic iron, steel, or 
manufactured goods used in the project is unreasonable when the 
cumulative cost of such material will increase the cost of the overall 
project by more than 25 percent;
    (ii) The iron, steel, and/or manufactured good is not produced, or 
manufactured in the United States in sufficient and reasonably 
available quantities and of a satisfactory quality; or
    (iii) The application of the restriction of section 1605 of the 
Recovery Act would be inconsistent with the public interest.
    (c) Request for determination of inapplicability of Section 1605 of 
the Recovery Act. (1)(i) Any recipient request to use foreign iron, 
steel, and/or manufactured goods in accordance with paragraph (b)(3) of 
this section shall include adequate information for Federal Government 
evaluation of the request, including--
    (A) A description of the foreign and domestic iron, steel, and/or 
manufactured goods;
    (B) Unit of measure;
    (C) Quantity;
    (D) Cost;
    (E) Time of delivery or availability;
    (F) Location of the project;
    (G) Name and address of the proposed supplier; and
    (H) A detailed justification of the reason for use of foreign iron, 
steel, and/or manufactured goods cited in accordance with paragraph 
(b)(3) of this section.
    (ii) A request based on unreasonable cost shall include a 
reasonable survey of the market and a completed cost comparison table 
in the format in paragraph (d) of this section.
    (iii) The cost of iron, steel, and/or manufactured goods material 
shall include all delivery costs to the construction site and any 
applicable duty.
    (iv) Any recipient request for a determination submitted after 
Recovery Act funds have been obligated for a project for construction, 
alteration, maintenance, or repair shall explain why the recipient 
could not reasonably foresee the need for such determination and could 
not have requested the determination before the funds were obligated. 
If the recipient does not submit a satisfactory explanation, the award 
official need not make a determination.
    (2) If the Federal Government determines after funds have been 
obligated for a project for construction, alteration, maintenance, or 
repair that an exception to section 1605 of the Recovery Act applies, 
the award official will amend the award to allow use of the foreign 
iron, steel, and/or relevant manufactured goods. When the basis for the 
exception is nonavailability or public interest, the amended award 
shall reflect adjustment of the award amount, redistribution of 
budgeted funds, and/or other actions taken to cover costs associated 
with acquiring or using the foreign iron, steel, and/or relevant 
manufactured goods. When the basis for the exception is the 
unreasonable cost of the domestic iron, steel, or manufactured goods, 
the award official shall adjust the award amount or redistribute 
budgeted funds by at least the differential established in 2 CFR 
176.110(a).
    (3) Unless the Federal Government determines that an exception to 
section 1605 of the Recovery Act applies, use of foreign iron, steel, 
and/or manufactured goods is noncompliant with section 1605 of the 
American Recovery and Reinvestment Act.
    (d) Data. To permit evaluation of requests under paragraph (b) of 
this section based on unreasonable cost, the Recipient shall include 
the following information and any applicable supporting data based on 
the survey of suppliers:

[[Page 18455]]



               Foreign and Domestic Items Cost Comparison
------------------------------------------------------------------------
                                   Unit of                      Cost
          Description              measure      Quantity     (dollars)*
------------------------------------------------------------------------
Item 1:
    Foreign steel, iron, or     ------------  ------------  ------------
     manufactured good........        -----         -----         -----
    Domestic steel, iron, or    ------------  ------------  ------------
     manufactured good........        -----         -----         -----
Item 2:
    Foreign steel, iron, or     ------------  ------------  ------------
     manufactured good........        -----         -----         -----
    Domestic steel, iron, or    ------------  ------------  ------------
     manufactured good........        -----         -----         -----
------------------------------------------------------------------------
[List name, address, telephone number, email address, and contact for
  suppliers surveyed. Attach copy of response; if oral, attach summary.]
[Include other applicable supporting information.]
[*Include all delivery costs to the construction site.]

Sec.  176.150  Notice of Required Use of American Iron, Steel, and 
Manufactured Goods--Section 1605 of the American Recovery and 
Reinvestment Act of 2009.

    When requesting applications or proposals for Recovery Act programs 
or activities that may involve construction, alteration, maintenance, 
or repair of a public building or public work, and do not involve iron, 
steel, and/or manufactured goods covered under international 
agreements, the agency shall use the notice described in the following 
paragraphs in their solicitations:
    (a) Definitions. Manufactured good, public building and public 
work, and steel, as used in this notice, are defined in the 2 CFR 
176.140.
    (b) Requests for determinations of inapplicability. A prospective 
applicant requesting a determination regarding the inapplicability of 
section 1605 of the American Recovery and Reinvestment Act of 2009 
(Pub. L. 111-5) (Recovery Act) should submit the request to the award 
official in time to allow a determination before submission of 
applications or proposals. The prospective applicant shall include the 
information and applicable supporting data required by paragraphs at 2 
CFR 176.140(c) and (d) in the request. If an applicant has not 
requested a determination regarding the inapplicability of 1605 of the 
Recovery Act before submitting its application or proposal, or has not 
received a response to a previous request, the applicant shall include 
the information and supporting data in the application or proposal.
    (c) Evaluation of project proposals. If the Federal Government 
determines that an exception based on unreasonable cost of domestic 
iron, steel, and/or manufactured goods applies, the Federal Government 
will evaluate a project requesting exception to the requirements of 
section 1605 of the Recovery Act by adding to the estimated total cost 
of the project 25 percent of the project cost, if foreign iron, steel, 
or manufactured goods are used in the project based on unreasonable 
cost of comparable manufactured domestic iron, steel, and/or 
manufactured goods.
    (d) Alternate project proposals. (1) When a project proposal 
includes foreign iron, steel, and/or manufactured goods not listed by 
the Federal Government at 2 CFR 176.140(b)(2), the applicant also may 
submit an alternate proposal based on use of equivalent domestic iron, 
steel, and/or manufactured goods.
    (2) If an alternate proposal is submitted, the applicant shall 
submit a separate cost comparison table prepared in accordance with 2 
CFR 176.140(c) and (d) for the proposal that is based on the use of any 
foreign iron, steel, and/or manufactured goods for which the Federal 
Government has not yet determined an exception applies.
    (3) If the Federal Government determines that a particular 
exception requested in accordance with 2 CFR 176.140(b) does not apply, 
the Federal Government will evaluate only those proposals based on use 
of the equivalent domestic iron, steel, and/or manufactured goods, and 
the applicant shall be required to furnish such domestic items.


Sec.  176.160  Award term--Required Use of American Iron, Steel, and 
Manufactured Goods (covered under International Agreements)--Section 
1605 of the American Recovery and Reinvestment Act of 2009.

    When awarding Recovery Act funds for construction, alteration, 
maintenance, or repair of a public building or public work that 
involves iron, steel, and/or manufactured goods materials covered under 
international agreements, the agency shall use the award term described 
in the following paragraphs:
    (a) Definitions. As used in this award term and condition--
    Designated country--(1) A World Trade Organization Government 
Procurement Agreement country (Aruba, Austria, Belgium, Bulgaria, 
Canada, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, 
Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, 
Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, 
Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, 
Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, and 
United Kingdom;
    (2) A Free Trade Agreement (FTA) country (Australia, Bahrain, 
Canada, Chile, Costa Rica, Dominican Republic, El Salvador, Guatemala, 
Honduras, Israel, Mexico, Morocco, Nicaragua, Oman, Peru, or 
Singapore); or
    (3) A United States-European Communities Exchange of Letters (May 
15, 1995) country: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, 
Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, 
Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, 
Portugal, Romania, Slovak Republic, Slovenia, Spain, Sweden, and United 
Kingdom.
    Designated country iron, steel, and/or manufactured goods--(1) Is 
wholly the growth, product, or manufacture of a designated country; or
    (2) In the case of a manufactured good that consist in whole or in 
part of materials from another country, has been substantially 
transformed in a designated country into a new and different 
manufactured good distinct from the materials from which it was 
transformed.
    Domestic iron, steel, and/or manufactured good--(1) Is wholly the 
growth, product, or manufacture of the United States; or
    (2) In the case of a manufactured good that consists in whole or in 
part of materials from another country, has been substantially 
transformed in the United States into a new and different manufactured 
good distinct from the materials from which it was transformed. There 
is no requirement with regard to the origin of components or 
subcomponents in manufactured goods or products, as long as the 
manufacture of the goods occurs in the United States.
    Foreign iron, steel, and/or manufactured good means iron, steel

[[Page 18456]]

and/or manufactured good that is not domestic or designated country 
iron, steel, and/or manufactured good.
    Manufactured good means a good brought to the construction site for 
incorporation into the building or work that has been--
    (1) Processed into a specific form and shape; or
    (2) Combined with other raw material to create a material that has 
different properties than the properties of the individual raw 
materials.
    Public building and public work means a public building of, and a 
public work of, a governmental entity (the United States; the District 
of Columbia; commonwealths, territories, and minor outlying islands of 
the United States; State and local governments; and multi-State, 
regional, or interstate entities which have governmental functions). 
These buildings and works may include, without limitation, bridges, 
dams, plants, highways, parkways, streets, subways, tunnels, sewers, 
mains, power lines, pumping stations, heavy generators, railways, 
airports, terminals, docks, piers, wharves, ways, lighthouses, buoys, 
jetties, breakwaters, levees, and canals, and the construction, 
alteration, maintenance, or repair of such buildings and works.
    Steel means an alloy that includes at least 50 percent iron, 
between .02 and 2 percent carbon, and may include other elements.
    (b) Iron, steel, and manufactured goods. (1) The award term and 
condition described in this section implements--
    (i) Section 1605(a) of the American Recovery and Reinvestment Act 
of 2009 (Pub. L. 111-5) (Recovery Act), by requiring that all iron, 
steel, and manufactured goods used in the project are produced in the 
United States; and
    (ii) Section 1605(d), which requires application of the Buy 
American requirement in a manner consistent with U.S. obligations under 
international agreements. The restrictions of section 1605 of the 
Recovery Act do not apply to designated country iron, steel, and/or 
manufactured goods. The Buy American requirement in section 1605 shall 
not be applied where the iron, steel or manufactured goods used in the 
project are from a Party to an international agreement that obligates 
the recipient to treat the goods and services of that Party the same as 
domestic goods and services. This obligation shall only apply to 
projects with an estimated value of $7,443,000 or more.
    (2) The recipient shall use only domestic or designated country 
iron, steel, and manufactured goods in performing the work funded in 
whole or part with this award, except as provided in paragraphs (b)(3) 
and (b)(4) of this section.
    (3) The requirement in paragraph (b)(2) of this section does not 
apply to the iron, steel, and manufactured goods listed by the Federal 
Government as follows:
-----------------------------------------------------------------------

    [Award official to list applicable excepted materials or indicate 
``none'']

    (4) The award official may add other iron, steel, and manufactured 
goods to the list in paragraph (b)(3) of this section if the Federal 
Government determines that--
    (i) The cost of domestic iron, steel, and/or manufactured goods 
would be unreasonable. The cost of domestic iron, steel, and/or 
manufactured goods used in the project is unreasonable when the 
cumulative cost of such material will increase the overall cost of the 
project by more than 25 percent;
    (ii) The iron, steel, and/or manufactured good is not produced, or 
manufactured in the United States in sufficient and reasonably 
available commercial quantities of a satisfactory quality; or
    (iii) The application of the restriction of section 1605 of the 
Recovery Act would be inconsistent with the public interest.
    (c) Request for determination of inapplicability of section 1605 of 
the Recovery Act or the Buy American Act. (1)(i) Any recipient request 
to use foreign iron, steel, and/or manufactured goods in accordance 
with paragraph (b)(4) of this section shall include adequate 
information for Federal Government evaluation of the request, 
including--
    (A) A description of the foreign and domestic iron, steel, and/or 
manufactured goods;
    (B) Unit of measure;
    (C) Quantity;
    (D) Cost;
    (E) Time of delivery or availability;
    (F) Location of the project;
    (G) Name and address of the proposed supplier; and
    (H) A detailed justification of the reason for use of foreign iron, 
steel, and/or manufactured goods cited in accordance with paragraph 
(b)(4) of this section.
    (ii) A request based on unreasonable cost shall include a 
reasonable survey of the market and a completed cost comparison table 
in the format in paragraph (d) of this section.
    (iii) The cost of iron, steel, or manufactured goods shall include 
all delivery costs to the construction site and any applicable duty.
    (iv) Any recipient request for a determination submitted after 
Recovery Act funds have been obligated for a project for construction, 
alteration, maintenance, or repair shall explain why the recipient 
could not reasonably foresee the need for such determination and could 
not have requested the determination before the funds were obligated. 
If the recipient does not submit a satisfactory explanation, the award 
official need not make a determination.
    (2) If the Federal Government determines after funds have been 
obligated for a project for construction, alteration, maintenance, or 
repair that an exception to section 1605 of the Recovery Act applies, 
the award official will amend the award to allow use of the foreign 
iron, steel, and/or relevant manufactured goods. When the basis for the 
exception is nonavailability or public interest, the amended award 
shall reflect adjustment of the award amount, redistribution of 
budgeted funds, and/or other appropriate actions taken to cover costs 
associated with acquiring or using the foreign iron, steel, and/or 
relevant manufactured goods.. When the basis for the exception is the 
unreasonable cost of the domestic iron, steel, or manufactured goods, 
the award official shall adjust the award amount or redistribute 
budgeted funds, as appropriate, by at least the differential 
established in 2 CFR 176.110(a).
    (3) Unless the Federal Government determines that an exception to 
section 1605 of the Recovery Act applies, use of foreign iron, steel, 
and/or manufactured goods other than designated country iron, steel, 
and/or manufactured goods is noncompliant with the applicable Act.
    (d) Data. To permit evaluation of requests under paragraph (b) of 
this section based on unreasonable cost, the applicant shall include 
the following information and any applicable supporting data based on 
the survey of suppliers:

[[Page 18457]]



               Foreign and Domestic Items Cost Comparison
------------------------------------------------------------------------
                                   Unit of                      Cost
          Description              measure      Quantity     (dollars)*
------------------------------------------------------------------------
Item 1:
    Foreign steel, iron, or     ------------  ------------  ------------
     manufactured good........        -----         -----         -----
    Domestic steel, iron, or    ------------  ------------  ------------
     manufactured good........        -----         -----         -----
Item 2:
    Foreign steel, iron, or     ------------  ------------  ------------
     manufactured good........        -----         -----         -----
    Domestic steel, iron, or    ------------  ------------  ------------
     manufactured good........        -----         -----         -----
------------------------------------------------------------------------
[List name, address, telephone number, email address, and contact for
  suppliers surveyed. Attach copy of response; if oral, attach summary.]
[Include other applicable supporting information.]
[*Include all delivery costs to the construction site.]

Sec.  176.170  Notice of Required Use of American Iron, Steel, and 
Manufactured Goods (covered under International Agreements)--Section 
1605 of the American Recovery and Reinvestment Act of 2009.

    When requesting applications or proposals for Recovery Act programs 
or activities that may involve construction, alteration, maintenance, 
or repair of a public building or public work, and involve iron, steel, 
and/or manufactured goods covered under international agreements, the 
agency shall use the notice described in the following paragraphs in 
the solicitation:
    (a) Definitions. Designated country iron, steel, and/or 
manufactured goods, foreign iron, steel, and/or manufactured good, 
manufactured good, public building and public work, and steel, as used 
in this provision, are defined in 2 CFR 176.160(a).
    (b) Requests for determinations of inapplicability. A prospective 
applicant requesting a determination regarding the inapplicability of 
section 1605 of the American Recovery and Reinvestment Act of 2009 
(Pub. L. 111-5) (Recovery Act) should submit the request to the award 
official in time to allow a determination before submission of 
applications or proposals. The prospective applicant shall include the 
information and applicable supporting data required by 2 CFR 176.160 
(c) and (d) in the request. If an applicant has not requested a 
determination regarding the inapplicability of section 1605 of the 
Recovery Act before submitting its application or proposal, or has not 
received a response to a previous request, the applicant shall include 
the information and supporting data in the application or proposal.
    (c) Evaluation of project proposals. If the Federal Government 
determines that an exception based on unreasonable cost of domestic 
iron, steel, and/or manufactured goods applies, the Federal Government 
will evaluate a project requesting exception to the requirements of 
section 1605 of the Recovery Act by adding to the estimated total cost 
of the project 25 percent of the project cost if foreign iron, steel, 
or manufactured goods are used based on unreasonable cost of comparable 
domestic iron, steel, or manufactured goods.
    (d) Alternate project proposals. (1) When a project proposal 
includes foreign iron, steel, and/or manufactured goods, other than 
designated country iron, steel, and/or manufactured goods, that are not 
listed by the Federal Government in this Buy American notice in the 
request for applications or proposals, the applicant may submit an 
alternate proposal based on use of equivalent domestic or designated 
country iron, steel, and/or manufactured goods.
    (2) If an alternate proposal is submitted, the applicant shall 
submit a separate cost comparison table prepared in accordance with 
paragraphs 2 CFR 176.160(c) and (d) for the proposal that is based on 
the use of any foreign iron, steel, and/or manufactured goods for which 
the Federal Government has not yet determined an exception applies.
    (3) If the Federal Government determines that a particular 
exception requested in accordance with 2 CFR 176.160(b) does not apply, 
the Federal Government will evaluate only those proposals based on use 
of the equivalent domestic or designated country iron, steel, and/or 
manufactured goods, and the applicant shall be required to furnish such 
domestic or designated country items.

Appendix to Subpart B of Part 176--U.S. States, Other Sub-Federal 
Entities, and Other Entities Subject to U.S. Obligations Under 
International Agreements

----------------------------------------------------------------------------------------------------------------
                                                                                          Relevant international
                States                     Entities covered            Exclusions               agreements
----------------------------------------------------------------------------------------------------------------
Arizona..............................  Executive branch         .......................  --WTO GPA (except
                                        agencies.                                         Canada).
                                                                                         --U.S.-Chile FTA.
                                                                                         --U.S.-Singapore FTA.
Arkansas.............................  Executive branch         construction services..  --WTO GPA (except
                                        agencies, including                               Canada).
                                        universities but                                 --DR-CAFTA.
                                        excluding the Office                             --U.S.-Australia FTA.
                                        of Fish and Game.                                --U.S.-Chile FTA.
                                                                                         --U.S.-Morocco FTA.
                                                                                         --US.-Peru TPA.
                                                                                         --U.S.-Singapore FTA.
California...........................  Executive branch         .......................  --WTO GPA (except
                                        agencies.                                         Canada).
                                                                                         --U.S.-Australia FTA.
                                                                                         --U.S.-Chile FTA.
                                                                                         --U.S.-Singapore FTA.
Colorado.............................  Executive branch         .......................  --WTO GPA (except
                                        agencies.                                         Canada).
                                                                                         --DR-CAFTA.
                                                                                         --U.S.-Australia FTA.
                                                                                         --U.S.-Chile FTA.
                                                                                         --U.S.-Morocco FTA.
                                                                                         --U.S.-Peru TPA.

[[Page 18458]]

 
                                                                                         --U.S.-Singapore FTA.
Connecticut..........................  --Department of          .......................  --WTO GPA (except
                                        Administrative                                    Canada).
                                        Services.                                        --DR-CAFTA.
                                                                                         --U.S.-Australia FTA.
                                                                                         --U.S.-Chile FTA.
                                                                                         --U.S.-Morocco FTA.
                                                                                         --U.S.-Singapore FTA.
                                       --Department of
                                        Transportation.
                                       --Department of Public
                                        Works.
                                       --Constituent Units of
                                        Higher Education.
Delaware.............................  --Administrative         construction-grade       --WTO GPA (except
                                        Services (Central        steel (including         Canada).
                                        Procurement Agency).     requirements on         --DR-CAFTA (except
                                                                 subcontracts); motor     Honduras).
                                                                 vehicles; coal.         --U.S.-Australia FTA.
                                                                                         --U.S.-Chile FTA.
                                                                                         --U.S.-Morocco FTA.
                                                                                         --U.S.-Singapore FTA.
                                       --State Universities.
                                       --State Colleges.
Florida..............................  Executive branch         construction-grade       --WTO GPA (except
                                        agencies.                steel (including         Canada).
                                                                 requirements on         --DR-CAFTA.
                                                                 subcontracts); motor    --U.S.-Australia FTA.
                                                                 vehicles; coal.         --U.S.-Chile FTA.
                                                                                         --U.S.-Morocco FTA.
                                                                                         --U.S.-Peru TPA.
                                                                                         --U.S.-Singapore FTA.
Georgia..............................  --Department of          beef; compost; mulch...  --U.S.-Australia FTA.
                                        Administrative
                                        Services
                                       --Georgia Technology
                                        Authority..
Hawaii...............................  Department of            software developed in    --WTO GPA (except
                                        Accounting and General   the state;               Canada).
                                        Services.                construction.           --DR-CAFTA (except
                                                                                          Honduras).
                                                                                         --U.S.-Australia FTA.
                                                                                         --U.S.-Chile FTA.
                                                                                         --U.S.-Morocco FTA.
                                                                                         --U.S.-Singapore FTA.
Idaho................................  Central Procurement      .......................  --WTO GPA (except
                                        Agency (including all                             Canada).
                                        colleges and                                     --DR-CAFTA (except
                                        universities subject                              Honduras).
                                        to central purchasing                            --U.S.-Australia FTA.
                                        oversight).                                      --U.S.-Chile FTA.
                                                                                         --U.S.-Morocco FTA.
                                                                                         --U.S.-Singapore FTA.
Illinois.............................  --Department of Central  construction-grade       --WTO GPA (except
                                        Management Services.     steel (including         Canada).
                                                                 requirements on         --U.S.-Australia FTA.
                                                                 subcontracts); motor    --U.S.-Chile FTA.
                                                                 vehicles; coal.         --U.S.-Peru TPA.
                                                                                         --U.S.-Singapore FTA.
                                                                                         --U.S.-EC Exchange of
                                                                                          Letters (applies to EC
                                                                                          Member States for
                                                                                          procurement not
                                                                                          covered by WTO GPA and
                                                                                          only where the state
                                                                                          considers out-of-state
                                                                                          suppliers).
Iowa.................................  --Department of General  construction-grade       --WTO GPA (except
                                        Services                 steel (including         Canada).
                                       --Department of           requirements on         --U.S.-Chile FTA.
                                        Transportation..         subcontracts); motor    --U.S.-Singapore FTA.
                                       --Board of Regents'       vehicles; coal.
                                        Institutions
                                        (universities).
Kansas...............................  Executive branch         construction services;   --WTO GPA (except
                                        agencies.                automobiles; aircraft.   Canada).
                                                                                         --U.S.-Australia FTA.
                                                                                         --U.S.-Chile FTA.
                                                                                         --U.S.-Morocco FTA.
                                                                                         --U.S.-Singapore FTA.
Kentucky.............................  Division of Purchases,   construction projects..  --WTO GPA (except
                                        Finance and                                       Canada).
                                        Administration Cabinet.                          --DR-CAFTA.
                                                                                         --U.S.-Australia FTA.
                                                                                         --U.S.-Chile FTA.
                                                                                         --U.S.-Morocco FTA.
                                                                                         --U.S.-Singapore FTA.
Louisiana............................  Executive branch         .......................  --WTO GPA (except
                                        agencies.                                         Canada).
                                                                                         --DR-CAFTA.
                                                                                         --U.S.-Australia FTA.
                                                                                         --U.S.-Chile FTA.
                                                                                         --U.S.-Morocco FTA.
                                                                                         --U.S.-Singapore FTA.

[[Page 18459]]

 
Maine................................  --Department of          construction-grade       --WTO GPA (except
                                        Administrative and       steel (including         Canada).
                                        Financial Services.      requirements on         --U.S.-Australia FTA.
                                       --Bureau of General       subcontracts); motor    --U.S.-Chile FTA.
                                        Services (covering       vehicles; coal.         --U.S.-Singapore FTA.
                                        state government
                                        agencies and school
                                        construction).
                                       --Department of
                                        Transportation.
Maryland.............................  --Office of the          construction-grade       --WTO GPA (except
                                        Treasury.                steel (including         Canada).
                                       --Department of the       requirements on         --DR-CAFTA.
                                        Environment..            subcontracts); motor    --U.S.-Australia FTA.
                                       --Department of General   vehicles; coal.         --U.S.-Chile FTA.
                                        Services.                                        --U.S.-Morocco FTA.
                                       --Department of Housing                           --U.S.-Singapore FTA.
                                        and Community
                                        Development.
                                       --Department of Human
                                        Resources.
                                       --Department of
                                        Licensing and
                                        Regulation.
                                       --Department of Natural
                                        Resources.
                                       --Department of Public
                                        Safety and
                                        Correctional Services.
                                       --Department of
                                        Personnel..
                                       --Department of
                                        Transportation..
Massachusetts........................  --Executive Office for   .......................  --WTO GPA (except
                                        Administration and                                Canada).
                                        Finance.                                         --U.S.-Chile FTA.
                                       --Executive Office of                             --U.S.-Singapore FTA.
                                        Communities and
                                        Development.
                                       --Executive Office of
                                        Consumer Affairs.
                                       --Executive Office of
                                        Economic Affairs.
                                       --Executive Office of
                                        Education.
                                       --Executive Office of
                                        Elder Affairs.
                                       --Executive Office of
                                        Environmental Affairs.
                                       --Executive Office of
                                        Health and Human
                                        Service.
                                       --Executive Office of
                                        Labor.
                                       --Executive Office of
                                        Public Safety.
                                       --Executive Office of
                                        Transportation and
                                        Construction.
Michigan.............................  Department of            construction-grade       --WTO GPA (except
                                        Management and Budget.   steel (including         Canada).
                                                                 requirements on         --U.S.-Australia FTA.
                                                                 subcontracts); motor    --U.S.-Chile FTA.
                                                                 vehicles; coal.         --U.S.-Singapore FTA.
Minnesota............................  Executive branch         .......................  --WTO GPA (except
                                        agencies.                                         Canada).
                                                                                         --U.S.-Chile FTA.
                                                                                         --U.S.-Singapore FTA.
Mississippi..........................  Department of Finance    services...............  --WTO GPA (except
                                        and Administration.                               Canada).
                                                                                         --DR-CAFTA.
                                                                                         --U.S.-Australia FTA.
                                                                                         --U.S.-Chile FTA.
                                                                                         --U.S.-Morocco FTA.
                                                                                         --U.S.-Peru TPA.
                                                                                         --U.S.-Singapore FTA.
Missouri.............................  --Office of              .......................  --WTO GPA (except
                                        Administration.                                   Canada).
                                       --Division of                                     --U.S.-Chile FTA.
                                        Purchasing and                                   --U.S.-Singapore FTA.
                                        Materials Management.
Montana..............................  Executive branch         goods..................  --WTO GPA (except
                                        agencies.                                         Canada).
                                                                                         --U.S.-Chile FTA.
                                                                                         --U.S.-Singapore FTA.
Nebraska.............................  Central Procurement      .......................  --WTO GPA (except
                                        Agency.                                           Canada).
                                                                                         --DR-CAFTA.
                                                                                         --U.S.-Australia FTA.
                                                                                         --U.S.-Chile FTA.
                                                                                         --U.S.-Morocco FTA.
                                                                                         --U.S.-Singapore FTA.
New Hampshire........................  Central Procurement      construction-grade       --WTO GPA (except
                                        Agency.                  steel (including         Canada).
                                                                 requirements on         --DR-CAFTA.
                                                                 subcontracts), motor    --U.S.-Australia FTA.
                                                                 vehicles; coal.         --U.S.-Chile FTA.
                                                                                         --U.S.-Morocco FTA.
                                                                                         --U.S.-Singapore FTA.

[[Page 18460]]

 
New York.............................  --State agencies.......
                                       --State university       construction-grade       --WTO GPA (except
                                        system.                  steel (including         Canada).
                                       --Public authorities      requirements on         --DR-CAFTA.
                                        and public benefit       subcontracts); motor    --U.S.-Australia FTA.
                                        corporations, with the   vehicles; coal;         --U.S.-Chile FTA.
                                        exception of those       transit cars, buses     --U.S.-Morocco FTA.
                                        entities with multi-     and related equipment.  --U.S.-Peru TPA.
                                        state mandates.                                  --U.S.-Singapore FTA.
North Dakota.........................  .......................  .......................  --U.S.-EC Exchange of
                                                                                          Letters (applies to EC
                                                                                          Member States and only
                                                                                          where the state
                                                                                          considers out-of-state
                                                                                          suppliers).
Oklahoma.............................  Department of Central    construction services;   --WTO GPA (except
                                        Services and all state   construction-grade       Canada).
                                        agencies and             steel (including        --U.S.-Australia FTA.
                                        departments subject to   requirements on         --U.S.-Chile FTA.
                                        the Oklahoma Central     subcontracts); motor    --U.S.-Peru TPA.
                                        Purchasing Act.          vehicles; coal.         --U.S.-Singapore FTA.
Oregon...............................  Department of            .......................  --WTO GPA (except
                                        Administrative                                    Canada).
                                        Services.                                        --DR-CAFTA (except
                                                                                          Honduras).
                                                                                         --U.S.-Australia FTA.
                                                                                         --U.S.-Chile FTA.
                                                                                         --U.S.-Morocco FTA.
                                                                                         --U.S.-Singapore FTA.
Pennsylvania.........................  Executive branch         construction-grade       --WTO GPA (except
                                        agencies, including:     steel (including         Canada).
                                       --Governor's Office....   requirements on         --U.S.-Australia FTA.
                                       --Department of the       subcontracts); motor    --U.S.-Chile FTA.
                                        Auditor General.         vehicles; coal.         --U.S.-Singapore FTA.
                                       --Treasury Department.
                                       --Department of
                                        Agriculture.
                                       --Department of
                                        Banking.
                                       --Pennsylvania
                                        Securities Commission.
                                       --Department of Health.
                                       --Department of
                                        Transportation.
                                       --Insurance Department.
                                       --Department of Aging.
                                       --Department of
                                        Correction.
                                       --Department of Labor
                                        and Industry.
                                       --Department of
                                        Military Affairs.
                                       --Office of Attorney
                                        General.
                                       --Department of General
                                        Services.
                                       --Department of
                                        Education.
                                       --Public Utility
                                        Commission.
                                       --Department of
                                        Revenue.
                                       --Department of State.
                                       --Pennsylvania State
                                        Police.
                                       --Department of Public
                                        Welfare.
                                       --Fish Commission.
                                       --Game Commission.
                                       --Department of
                                        Commerce.
                                       --Board of Probation
                                        and Parole.
                                       --Liquor Control Board.
                                       --Milk Marketing Board.
                                       --Lieutenant Governor's
                                        Office.
                                       --Department of
                                        Community Affairs.
                                       --Pennsylvania
                                        Historical and Museum
                                        Commission.
                                       --Pennsylvania
                                        Emergency Management
                                        Agency.
                                       --State Civil Service
                                        Commission.
                                       --Pennsylvania Public
                                        Television Network.
                                       --Department of
                                        Environmental
                                        Resources.
                                       --State Tax
                                        Equalization Board.
                                       --Department of Public
                                        Welfare.
                                       --State Employees'
                                        Retirement System.
                                       --Pennsylvania
                                        Municipal Retirement
                                        Board.

[[Page 18461]]

 
                                       --Public School
                                        Employees' Retirement
                                        System.
                                       --Pennsylvania Crime
                                        Commission.
                                       --Executive Offices.
Rhode Island.........................  Executive branch         boats, automobiles,      --WTO GPA (except
                                        agencies.                buses and related        Canada).
                                                                 equipment.              --DR-CAFTA (except
                                                                                          Honduras).
                                                                                         --U.S.-Australia FTA.
                                                                                         --U.S.-Chile FTA.
                                                                                         --U.S.-Morocco FTA.
                                                                                         --U.S.-Singapore FTA.
South Dakota.........................  Central Procuring        beef...................  --WTO GPA (except
                                        Agency (including                                 Canada).
                                        universities and penal                           --DR-CAFTA.
                                        institutions).                                   --U.S.-Australia FTA.
                                                                                         --U.S.-Chile FTA.
                                                                                         --U.S.-Morocco FTA.
                                                                                         --U.S.-Singapore FTA.
Tennessee............................  Executive branch         Services; construction.  --WTO GPA (except
                                        agencies.                                         Canada).
                                                                                         --U.S.-Australia FTA.
                                                                                         --U.S.-Chile FTA.
                                                                                         --U.S.-Singapore FTA.
Texas................................  Texas Building and       .......................  --WTO GPA (except
                                        Procurement Commission.                           Canada).
                                                                                         --DR-CAFTA.
                                                                                         --U.S.-Australia FTA.
                                                                                         --U.S.-Chile FTA.
                                                                                         --U.S.-Morocco FTA.
                                                                                         --U.S.-Peru TPA.
                                                                                         --U.S.-Singapore FTA.
Utah.................................  Executive branch         .......................  --WTO GPA (except
                                        agencies.                                         Canada).
                                                                                         --DR-CAFTA (except
                                                                                          Honduras).
                                                                                         --U.S.-Australia FTA.
                                                                                         --U.S.-Chile FTA.
                                                                                         --U.S.-Morocco FTA.
                                                                                         --U.S.-Peru TPA.
                                                                                         --U.S.-Singapore FTA.
Vermont..............................  Executive branch         .......................  --WTO GPA (except
                                        agencies.                                         Canada).
                                                                                         --DR-CAFTA.
                                                                                         --U.S.-Australia FTA.
                                                                                         --U.S.-Chile FTA.
                                                                                         --U.S.-Morocco FTA.
                                                                                         --U.S.-Singapore FTA.
Washington...........................  Executive branch         fuel; paper products;    --WTO GPA (except
                                        agencies, including:     boats; ships; and        Canada).
                                       --General                 vessels.                --DR-CAFTA.
                                        Administration..                                 --U.S.-Australia FTA.
                                       --Department of                                   --U.S.-Chile FTA.
                                        Transportation..                                 --U.S.-Morocco FTA.
                                       --State Universities...                           --U.S.-Singapore FTA.
West Virginia........................  .......................  .......................  --U.S.-EC Exchange of
                                                                                          Letters (applies to EC
                                                                                          Member States and only
                                                                                          where the state
                                                                                          considers out-of-state
                                                                                          suppliers).
Wisconsin............................  Executive branch         .......................  --WTO GPA (except
                                        agencies, including:                              Canada).
                                       --Department of                                   --U.S.-Chile FTA.
                                        Administration..                                 --U.S.-Singapore FTA.
                                       --State Correctional
                                        Institutions.
                                       --Department of
                                        Development.
                                       --Educational
                                        Communications Board.
                                       --Department of
                                        Employment Relations.
                                       --State Historical
                                        Society.
                                       --Department of Health
                                        and Social Services.
                                       --Insurance
                                        Commissioner.
                                       --Department of
                                        Justice.
                                       --Lottery Board.
                                       --Department of Natural
                                        Resources.
                                       --Administration for
                                        Public Instruction.

[[Page 18462]]

 
                                       --Racing Board.
                                       --Department of
                                        Revenue.
                                       --State Fair Park
                                        Board.
                                       --Department of
                                        Transportation.
                                       --State University
                                        System.
Wyoming..............................  --Procurement Services   construction-grade       --WTO GPA (except
                                        Division                 steel (including         Canada).
                                       --Wyoming Department of   requirements on         --DR-CAFTA.
                                        Transportation.          subcontracts); motor    --U.S.-Australia FTA.
                                       --University of Wyoming   vehicles; coal.         --U.S.-Chile FTA.
                                                                                         --U.S.-Morocco FTA.
                                                                                         --U.S.-Singapore FTA.
----------------------------------------------------------------------------------------------------------------
      Other sub-federal entities           Entities covered            Exclusions        Relevant international
                                                                                          agreements
----------------------------------------------------------------------------------------------------------------
Puerto Rico..........................  --Department of State..  construction services..  --DR-CAFTA.
                                                                                         --U.S.-Peru TPA.
                                       --Department of
                                        Justice.
                                       --Department of the
                                        Treasury.
                                       --Department of
                                        Economic Development
                                        and Commerce.
                                       --Department of Labor
                                        and Human Resources.
                                       --Department of Natural
                                        and Environmental
                                        Resources.
                                       --Department of
                                        Consumer Affairs.
                                       --Department of Sports
                                        and Recreation.
Port Authority of New York and New     .......................  restrictions attached    --WTO GPA (except
 Jersey.                                                         to Federal funds for     Canada).
                                                                 airport projects;       --U.S.-Chile FTA.
                                                                 maintenance, repair     --U.S.-Singapore FTA.
                                                                 and operating
                                                                 materials and supplies.
Port of Baltimore....................  .......................  restrictions attached    --WTO GPA (except
                                                                 to Federal funds for     Canada).
                                                                 airport projects.       --U.S.-Chile FTA.
                                                                                         --U.S.-Singapore FTA.
New York Power Authority.............  .......................  restrictions attached    --WTO GPA (except
                                                                 to Federal funds for     Canada).
                                                                 airport projects;       --U.S.-Chile FTA.
                                                                 conditions specified    --U.S.-Singapore FTA.
                                                                 for the State of New
                                                                 York.
Massachusetts Port Authority.........  .......................  .......................  U.S.-EC Exchange of
                                                                                          Letters (applies to EC
                                                                                          Member States and only
                                                                                          where the Port
                                                                                          Authority considers
                                                                                          out-of-state
                                                                                          suppliers).
Boston, Chicago, Dallas, Detroit,      .......................  .......................  U.S.-EC Exchange of
 Indianapolis, Nashville, and San                                                         Letters (only applies
 Antonio.                                                                                 to EC Member States
                                                                                          and where the city
                                                                                          considers out-of-city
                                                                                          suppliers).
----------------------------------------------------------------------------------------------------------------
            Other entities                 Entities covered            Exclusions         Relevant international
                                                                                                agreements
----------------------------------------------------------------------------------------------------------------
Rural Utilities Service (waiver of     .......................  .......................  --WTO GPA.
 Buy American restriction on                                                             --DR-CAFTA.
 financing for all power generation                                                      --NAFTA.
 projects).                                                                              --U.S.-Australia FTA.
                                                                                         --U.S.-Bahrain FTA.
                                                                                         --U.S.-Chile FTA.
                                                                                         --U.S.-Morocco FTA.
                                                                                         --U.S.-Oman FTA.
                                                                                         --U.S.-Peru TPA.
                                                                                         --U.S.-Singapore FTA.
Rural Utilities Service (waiver of     .......................  .......................  --NAFTA.
 Buy American restriction on                                                             --U.S.-Israel FTA.
 financing for telecommunications
 projects).
----------------------------------------------------------------------------------------------------------------

    General Exceptions: The following restrictions and exceptions 
are excluded from U.S. obligations under international agreements:
    1. The restrictions attached to Federal funds to states for mass 
transit and highway projects.
    2. Dredging.
    The World Trade Organization Government Procurement Agreement 
(WTO GPA) Parties: Aruba, Austria, Canada, Belgium, Bulgaria, 
Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, 
Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, 
Korea (Republic of), Latvia, Liechtenstein, Lithuania,

[[Page 18463]]

Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, 
Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, 
and United Kingdom.
    The Free Trade Agreements and the respective Parties to the 
agreements are:
    (1) Dominican Republic-Central America-United States Free Trade 
Agreement (DR-CAFTA): Costa Rica, Dominican Republic, El Salvador, 
Guatemala, Honduras, and Nicaragua;
    (2) North American Free Trade Agreement (NAFTA): Canada and 
Mexico;
    (3) United States-Australia Free Trade Agreement (U.S.-Australia 
FTA);
    (4) United States-Bahrain Free Trade Agreement (U.S.-Bahrain 
FTA);
    (5) United States-Chile Free Trade Agreement (U.S.-Chile FTA);
    (6) United States-Israel Free Trade Agreement (U.S.-Israel FTA);
    (7) United States-Morocco Free Trade Agreement (U.S.-Morocco 
FTA);
    (8) United States-Oman Free Trade Agreement (U.S.-Oman FTA);
    (9) United States-Peru Trade Promotion Agreement (U.S.-Peru 
TPA); and
    (10) United States-Singapore Free Trade Agreement (U.S.-
Singapore FTA).
    United States-European Communities Exchange of Letters (May 30, 
1995) (U.S.-EC Exchange of Letters) applies to EC Member States: 
Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, 
Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, 
Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, 
Romania, Slovak Republic, Slovenia, Spain, Sweden, and United 
Kingdom.

Subpart C--Wage Rate Requirements Under Section 1606 of the 
American Recovery and Reinvestment Act of 2009


Sec.  176.180  Procedure.

    The award official shall insert the standard award term in this 
Subpart in all awards funded in whole or in part with Recovery Act 
funds.


Sec.  176.190  Award term--Wage Rate Requirements under Section 1606 of 
the Recovery Act.

    When issuing announcements or requesting applications for Recovery 
Act programs or activities that may involve construction, alteration, 
maintenance, or repair the agency shall use the award term described in 
the following paragraphs:
    (a) Section 1606 of the Recovery Act requires that all laborers and 
mechanics employed by contractors and subcontractors on projects funded 
directly by or assisted in whole or in part by and through the Federal 
Government pursuant to the Recovery Act shall be paid wages at rates 
not less than those prevailing on projects of a character similar in 
the locality as determined by the Secretary of Labor in accordance with 
subchapter IV of chapter 31 of title 40, United States Code.
    Pursuant to Reorganization Plan No. 14 and the Copeland Act, 40 
U.S.C. 3145, the Department of Labor has issued regulations at 29 CFR 
parts 1, 3, and 5 to implement the Davis-Bacon and related Acts. 
Regulations in 29 CFR 5.5 instruct agencies concerning application of 
the standard Davis-Bacon contract clauses set forth in that section. 
Federal agencies providing grants, cooperative agreements, and loans 
under the Recovery Act shall ensure that the standard Davis-Bacon 
contract clauses found in 29 CFR 5.5(a) are incorporated in any 
resultant covered contracts that are in excess of $2,000 for 
construction, alteration or repair (including painting and decorating).
    (b) For additional guidance on the wage rate requirements of 
section 1606, contact your awarding agency. Recipients of grants, 
cooperative agreements and loans should direct their initial inquiries 
concerning the application of Davis-Bacon requirements to a particular 
federally assisted project to the Federal agency funding the project. 
The Secretary of Labor retains final coverage authority under 
Reorganization Plan Number 14.

Subpart D--Single Audit Information for Recipients of Recovery Act 
Funds


Sec.  176.200  Procedure.

    The award official shall insert the standard award term in this 
Subpart in all awards funded in whole or in part with Recovery Act 
funds.


Sec.  176.210  Award term--Recovery Act Transactions listed in Schedule 
of Expenditures of Federal Awards and Recipient Responsibilities for 
Informing Subrecipients.

    The award term described in this section shall be used by agencies 
to clarify recipient responsibilities regarding tracking and 
documenting Recovery Act expenditures:
    (a) To maximize the transparency and accountability of funds 
authorized under the American Recovery and Reinvestment Act of 2009 
(Pub. L. 111-5) (Recovery Act) as required by Congress and in 
accordance with 2 CFR 215.21 ``Uniform Administrative Requirements for 
Grants and Agreements'' and OMB Circular A-102 Common Rules provisions, 
recipients agree to maintain records that identify adequately the 
source and application of Recovery Act funds. OMB Circular A-102 is 
available at http://www.whitehouse.gov/omb/circulars/a102/a102.html.
    (b) For recipients covered by the Single Audit Act Amendments of 
1996 and OMB Circular A-133, ``Audits of States, Local Governments, and 
Non-Profit Organizations,'' recipients agree to separately identify the 
expenditures for Federal awards under the Recovery Act on the Schedule 
of Expenditures of Federal Awards (SEFA) and the Data Collection Form 
(SF-SAC) required by OMB Circular A-133. OMB Circular A-133 is 
available at http://www.whitehouse.gov/omb/circulars/a133/a133.html. 
This shall be accomplished by identifying expenditures for Federal 
awards made under the Recovery Act separately on the SEFA, and as 
separate rows under Item 9 of Part III on the SF-SAC by CFDA number, 
and inclusion of the prefix ``ARRA-'' in identifying the name of the 
Federal program on the SEFA and as the first characters in Item 9d of 
Part III on the SF-SAC.
    (c) Recipients agree to separately identify to each subrecipient, 
and document at the time of subaward and at the time of disbursement of 
funds, the Federal award number, CFDA number, and amount of Recovery 
Act funds. When a recipient awards Recovery Act funds for an existing 
program, the information furnished to subrecipients shall distinguish 
the subawards of incremental Recovery Act funds from regular subawards 
under the existing program.
    (d) Recipients agree to require their subrecipients to include on 
their SEFA information to specifically identify Recovery Act funding 
similar to the requirements for the recipient SEFA described above. 
This information is needed to allow the recipient to properly monitor 
subrecipient expenditure of ARRA funds as well as oversight by the 
Federal awarding agencies, Offices of Inspector General and the 
Government Accountability Office.

[FR Doc. E9-9073 Filed 4-22-09; 8:45 am]
BILLING CODE P