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A.9
<br />ln the event of noncompliance or refusalto comply with any applicable law, regulation, executive order,
<br />OMB Circular or policy by the Subrecipient, its coniractors or subrecipients, the Department may rescind,
<br />cancel, or terminate'tne ngreemeni in whole or in part in its sole discretion. The Subrecipient is
<br />responsible for all costs or tiinitity arising from its failure, and that of its contractors and subrecipients, to
<br />comply with applicable laws, regulations, executive orders, OMB Circulars or policies'
<br />CONFLICT OF INTEREST
<br />@theDepartment;nomember,officer,oremployeeoftheSubrecipientorits
<br />designees o1. ,g"nir; no member of the governing body of the jurisdiction in which the project is
<br />undertaken or located; and no other offiiial of the Subrecipient who exercises any functions or
<br />l"p"""iuiiities wiilr respect to the project during his or her tenure, shall have any personal or pecuniary
<br />gain or interest, direct or indirect, in iny contralt, subcontract, or the proceeds thereof, for work to be
<br />[erformed in connection with the project assisted under this Agreement'
<br />The Subrecipient shall incorporate, or cause to incorporate, in all such contracts or subawards, a
<br />provision prohibiting such interest pursuant to this provision'
<br />A:10
<br />As required by Appendix ll to 2 CFR Part 200, all contracts entered into by the Subrecipient under
<br />this Agreement must incl ude the following provisions, as applicable
<br />1)Contracts for more than the simplified acqu isition threshold currently set at $250,000, which
<br />is the inflation adjusted amount determined by the Civilian Agency Acquisition Council and
<br />the Defense Acquisition Regulations Council (Councils) as authorized by 41 U'S.C. 1908,
<br />must address administrative, contractual, or lega I remedies in instances where contractors
<br />violate or breach contract terms, and provide for su ch sanctions and penalties as appropriate
<br />2) All contracts in excess of $10,000 must address termination for cause and for convenience
<br />by the non-federal entity including the manner by which it will be effected and the basis for
<br />settlement.
<br />3) Equal Employment Opportunity. Except as otherwise provided under 41 CFR Part 60, all
<br />contracts itraf meet the'definition of "federally assisted construction contract" in 41 CFR Part
<br />60-1.3 must include the equal opportunity clause provided under 41 CFR 60-1.a(b), in
<br />accordance with Executive brder'11246,';Equal Employment Opportunity' (39 FR 12319,
<br />12935,3 CFR part, 1964-1965 Comp., p.339), as amended by Executive Order 11375'
<br />',Amending Executive Order 11246'Retating to Equat Emptoyment Opportunity," and
<br />implemeniing regulations at 41 CFR part 6b, "Office of Federal Contract Compliance
<br />P rog ra m s, iq u al e m pl oym e nt O p po rt u n ity, D e p a rt m e nt of La b o r."
<br />4) Davis-Bacon Act, as amended (40 U.S.C. 3141-3148). When required by Federal program
<br />legislation, all prime construction contracts in excess of $2,000 awarded by non-federal
<br />entities must include a provision for compliance with the Davis-Bacon Act (40 U.S'C' 3141-
<br />3144, and 3146-3148) as supplemented by Department of Labor regulations (29 CFR Part
<br />S,,,Labor Standards'provisiois Appticable to Contracts Covering Federally Financed and
<br />Asslsfed Construction"). ln accordance with the statute, contractors must be required to pay
<br />wages to laborers and mechanics at a rate not less than the prevailing wages specified in a
<br />wale determination made by the Secretary of Labor. ln-addition, contractors must be
<br />req-uired to pay wages not less than once a week. The non-federal entity must place a copy
<br />of ine current'preftiling wage determination issued by the Department of Labor in each
<br />solicitation. The decisio-n to lward a contract or subcontract must be conditioned upon the
<br />acceptance of the wage determination. The non-federal entity must report all suspected or
<br />reported violations tJtne federal awarding agency- The contracts must also include a
<br />provision for compliance with the Copeland i'Anti-Kickback" Act (40 U.S.C. 3145), as
<br />supplemented by Department of Labor regulations (29 .CFR Part 3, "Contractors and
<br />Subcontractors on puOtic Building or Public Work Financed in Whole or in Part by Loans or
<br />Grants from the United States"). ine n"t provides that each contractor or Subrecipient must
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