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ln the event of noncompliance or refusalto comply with any applicable law, regulation, executive ordel,
<br />OMB Circular or policy by the Subrecipient, its contractors or subrecipients, the Department may rescind,
<br />cancel, or terminate the Agreement in whole or in part in its sole discretion. The Subrecipient is
<br />responsible for all costs or liability arising from its failure, and that of its contractors and subrecipients, to
<br />comply with applicable laws, regulations, executive orders, OMB Clrculars or policies.
<br />A,e coNFLlcT oF INTEREST
<br />No otficer or employee of the Department; no member, officer, or employee of the Subrecipient or its
<br />designees or agents; no member of the governing body of the jurisdiction in which the project is
<br />undertaken or located; and no other official of the Subrecipient who exercises any functions or
<br />responsibilities with respect to the project during his or her tenure, shall have any personal or pecuniary
<br />gain or interest, direct or indirect, in. any contract, subcontract, or the proceeds thereof, for work to be
<br />performed ln connectlon wlth the proJect asslsted under thrs 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.1o CONTRAiTING & PROGUREMENIt The Subrecipient shall use a competitive procurement process in the procurement and award of
<br />any contracts with contractors or subcontractors that are entered into under the original
<br />agreement award. The procurement process followed shall be in accordance with 2 CFR Part
<br />200.31 B, General procurement standards, through 200.327 , Contract provisions.
<br />As required by Appendix ll to 2 CFR Part 200, all contracts entered into by the Subrecipient under
<br />this Agreement must include the following provisions, as applicable:
<br />1) Contracts for more than the simplified acquisition threshold, which is the inflation adjusted
<br />amount determined by the Civilian Agency Acquisition Council and the Defense Acquisition
<br />Regulations Council (Councils) as authorized by 41 U.S.C, 1908, must address
<br />administrative, contractual, or legal remedies in instances where contractors violate or
<br />breach contract terms, and provide for such 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 othenruise provided under 41 CFR Part 60, all
<br />contracts that 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 60-1.4(b), in
<br />accordance with Executive Order 11246, "Equal Employment Opportunitf' (30 FR 12319,
<br />12935,3 CFR Part, 1964-1965 Comp., p. 339), as amended by Executive Order 11375,
<br />"Amending Executive Order 11246 Relating to Equal Employment Opportunity," and
<br />implementing regulations at 41 GFR part 60, "Office of Federal Contract Compliance
<br />Programs, Equal Employment Opportunity, Department of Labor'"
<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 />5, "Labor Standards Provisions Appticable to Contracts Covering Federally Financed and
<br />Assl'sfed 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 />wage determination made by the Secretary of Labor, ln addition, contractors must be
<br />required to pay wages not less than once a week. The non-federal entity must place a copy
<br />of the current prevailing wage determination issued by the Department of Labor in each
<br />solicitation. The decision to award 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 to the federal awarding agency, The contracts must also include a
<br />provision for compliance with the Copeland 'Anti-Kickback" Act (40 U.S.C. 3145), as
<br />supplemented by Department of Labor reguiations (29 CFR Part 3, "Contractors and
<br />Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or
<br />Grants from the United States"), The Act provides that each contractor or Subrecipient must
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