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Home My WebLink AboutAgreement K2871- AGREEMENT FACE SHEET Agreement Number: K2871 lnteragency Grant Agreement between Washington State Department of Agriculture and Kittitas County for the Specialty Crop Block Grant Program 1. Grantee Kittitas County 205 West 5th Ave, Ste 105 Ellensburg WA 98926 2. Grantee Represent_ative 3. WSDA Representative Cory Wright Derek Sandison Chairman, Board County Commissioners Washington State Dept. of Agriculture Kittitas County PO Box 42560 205 West 5th Ave, Ste 105 1111 Washington Street SE Ellensburg WA 98926 Olympia WA 98504 509-962-7508 360-902-1800 - 4. Grant Amount 5. Grant Start Date 6. Grant End Date $150,000.00 9/30/2019 9/29/2022 7. Federal Agency: 8. CFDA# 9. FAIN# 10. Fiscal Year: USDA 10.170 AM190100XXXXG014 2019 11. Tax ID# 12.SWV# 13. DUNS# 916001349 SWV00104 75-00 01-020-2547 14. Grant Purpose Pursuant to the goals of the federal SCBGP, WSDA and Grantee have entered into this Agreement to fund Grantee's project to enhance the co mpetit iveness of Washi ngton, spe cial t y cro ps .. WSDA and Grantee agree to the following terms set forth in this AGREEMENT FACE SHEET, the WSDA TERMS AND CONDITIONS, ATTACHMENT A: The Project Plan; ATTACHMENT B: Reporting Requirements, ATTACHMENT C: Applicable Federal Laws and Regulations, ATTACHMENT D: Federal Funding Accountability and Transparency Act Compliance, ATTACHMENT E: Procurement Standards, and ATTACHMENT F: the USDA TERMS AND CONDITIONS. The foregoing documents and any matter the documents incorporate by reference is the complete Agreement and governs the rights and obligations of both parties . This Agreement is executed on the date below. FOR KITTITAS COUNTY FOR WASHINGTON STATE DEPARTMENT OF ~~ AGRICULTURE //),~ L /A~1 \ ~( :,( ) Cory Wright, Board County Commissioners Chairman foe andison, Director T :){) I~ / ,:> / /p I / J (t}__f_y/-() /b-t Jr J J l l Date Date APPROVED AS TO FORM ONLY Janis Snoey Date Assistant Attorney General I TERMS AND CONDITIONS Washington State Department of Agriculture and Kittitas County SPECIALTY CROP BLOCK GRANT PROGRAM 1. DEFINITIONS The following definitions apply throughout this Agreement. "Agreement" means this SCBGP Agreement between WSDA and Grantee. "CFR" means Code of Federal Regulations. "Project" means the project described in Section 5. "Grant Amount" means the total amount of funding under this Agreement, as set forth on the Agreement Face Sheet. "Grantee" means the entity identified as the Grantee on the Agreement Face Sheet, who is a Party to the Agreement, and Subrecipient under SCBGP Grant issued to WSDA. "Grantee" includes all employees and agents of the Grantee. "SCBGP" means the Specialty Crop Block Grant Program, the federal funding program administered by USDA. "SCBGP Grant" means the SCBGP grant issued by USDA to WSDA and identified by the FAIN# on the Agreement Face Page. "WSDA" means the Washington State Department of Agriculture, who is a Party to the Agreement. "USDA" means the United States Department of Agriculture. 2. GRANT MANAGEMENT The Agreement managers for each of the parties shall be responsible for and shall be the contact person for all communications and billings regarding the performance of this Agreement. Each party will notify the other of any change in administrators. The Agreement Manager for Grantee is: The Agreement Manager for WSDA is: Judy Pless Tricia Bertsch Budget/Finance Manager Grant Specialist Kittitas County Washington State Dept of Agriculture 205 West 5th Ave, Ste 105 Po Box 42560 Ellenburg WA 98926 Olympia WA 98504 509-962-7502 360-902-2177 Judy.pless@co.kittitas.wa.us pbertsch@agr.wa.gov 3. AUTHORITY AND PURPOSE Acting under the authority of RCW 43.23.030, WSDA has secured a SCBGP Grant from WSDA and has awarded the Grantee funding under this Agreement to undertake a project to enhance the competitiveness of a Washington specialty crop. Grantee must perform in accordance with this Agreement's terms and conditions and all applicable federal, state and local laws and ordinances, which by this reference are incorporated into this Agreement as though set forth fully herein. 4. FUNDING WSDA shall pay an amount not to exceed the awarded Grant Amount for the eligible costs necessary for or incidental to the performance of work as set forth for the Project. 5. PROJECT Grantee must use the funding awarded by WSDA under this Agreement solely for the project set forth in Attachment A. 6. PERIOD OF PERFORMANCE The work under this Agreement starts with the Grant Start Date shown on the Agreement Face Sheet and ends with the Grant End Date shown on the Agreement Face Sheet, unless extended or terminated sooner as Kittitas County K2871 Page 2 Specialty Crop Block Grant Program provided herein. Grantee may request an extension of the Grant End Date, which WSDA may grant or deny in its sole discretion pursuant to the agency's obligations under the SCBGP Grant. 7. ALLOWABLE AND DISALLOWED COSTS A. WSDA will make payments on a reimbursement basis only. WSDA will reimburse Grantee for eligible project expenditures up to the Grant Amount. B. Only costs incurred between (1) the Grant Start Date and (2) Grant End Date, as shown in the Agreement Face Sheet, are eligible for reimbursement under this Agreement. C. Costs and expenses are allowable in accordance with Subpart E of 2 CFR Part 200 (2 CFR 200.400 et seq.) unless otherwise unallowable under the laws and regulations governing WSDA. D. Reimbursement for travel expenditures must comply with state policies published in Chapter 10 ofthe State Administrative & Accounting Manual (SAAM) at https://www.ofm .wa ,gov/sites/cfefaulUflleslpubllclleqacy/pollcy/10 .htm . Mileage reimbursement and per diem rates must not exceed the rates published in SAAM Ch. 10, Sec. 90, which may be periodically updated. Airfare costs in excess of the customary standard commercial airfare (coach or equivalent), Federal Government contract airfare, or the lowest commercial airfare is disallowed. E. Charges for salaries and wages must comply with 2 CFR 200.430, accurately reflect the work performed, and be based on payrolls documented in accordance with generally accepted practices. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, reasonable, and properly allocated. F. Indirect costs, including administrative overhead, are disallowed. This includes costs incurred for common or joint objectives that cannot be identified specifically with a particular project, program, or organizational activity. Indirect costs include, but are not limited to, the following: 1. Information technology services 2. Rent 3. Utilities and internet service 4. Telephone service (mobile and land-line) 5. General office supplies 6. Insurance 7. Maintenance (car, buildings, etc.) 8. The salaries of administrative and clerical staff. Direct charging ofthese costs may be allowed where all of the following conditions are met: a. Administrative or clerical services are integral to a project or activity. b. Individuals involved can be specifically identified with the project or activity. c. Such costs are explicitly included in the budget or have the prior written approval of WSDA and USDA. d. The costs are not also recovered as indirect costs. G. The Grantee is responsible for any audit exceptions or disallowed costs incurred by its own organization or that of its subcontractors. 8. BILLING AND PAYMENT PROCEDURES A. Grantee must register in the Statewide Payee System before submitting a request for reimbursement. Grantee may register on line at http://des.wa .gov/services/Co_nfractlngPurchasing/BuslnessNendorPay/PagesJdefau lt.aspx. B. Requests for reimbursement must be on a WSDA SCBGP Invoice Voucher template (Voucher) and in compliance with the printed Voucher instructions OR Contractor may use its own invoice template. The Voucher must include applicable budget categories consistent with the budget narrative in Attachment A. If Grantee uses its own invoice template, the invoice must reference the WSDA Agreement Number shown on the Agreement Face Sheet in addition to applicable budget categories consistent with the budget narrative in Attachment A. C. The Voucher must be supported by appropriate receipts, paid invoices, or other financial records such as: payroll records, wage and benefit reports, travel logs, contractor invoices, airline ticket receipts, etc. Detail Kittitas County K2871 Page 3 Specialty Crop Block Grant Program and documentation must be sufficient for WSDA to confirm that the expense is allowable, budgeted, and accurately calculated. D. A Voucher requesting reimbursement for salaries must be supported by a Time and Effort worksheet. The Grantee must certify that the information provided in the Time and Effort worksheet is correct and that it is based on after-the-fact evidence of work-performed and both the grant and non-grant time totals no more than 100% in accordance with 0MB Uniform Guidance 2 CFR Part 200. E. Grantee must submit a signed and completed Voucher with supporting documentation to specialtycrop@agr.wa .gov. F. The Voucher must be certified by an official of the Grantee with authority to bind the Grantee. G. Grantee must submit Vouchers on a periodic basis of at least quarterly, but not more frequently than monthly. Grantee must submit a final Voucher no later than 30 days after Grant End Date. H. WSDA will process Vouchers for payment after approval. WSDA may reject and return deficient Vouchers in whole or in part and withhold payment pending correction by the Grantee. WSDA also may disallow all or part of the cost of an activity or action not in compliance or partially suspend or terminate the Agreement. I. WSDA will pay for approved and completed work by warrant or account transfer within 30 days of receipt of a Voucher that is not deficient. 9. PROGRAM INCOME A. Program Income is gross income earned by Grantee from activity supported by this Agreement during the Period of Performance. Program Income includes, but is not limited to, income from fees for services performed; the sale of commodities or items fabricated under an award (this includes items sold at cost if the cost of producing the item was funded in whole or partially with grant funds); registration fees for conferences, workshops, etc. Royalties or equivalent income earned from patents, inventions, trademarks, and copyrighted works is not subject to this section. B. Grantee must use Program Income accrued during the period of performance to the Project to further the purpose of this Agreement. C. Grantee must report Program Income on Request for Reimbursements in the period for which it was earned . 10. PROCUREMENT A. In procurement of property and services under this Agreement, Grantee must comply with 2 CFR §200.322 Procurement of recovered materials and ensure that every purchase order or other contract includes any clauses required by section §200.326 Contract provisions. B. All procurement transactions will be conducted in a manner to provide, to the extent practical, open and free competition . Grantee must make positive efforts assure that small, minority-owned, and women- owned businesses are used when possible. C. Grantee is prohibited from awarding any contract at any tier to a party that is debarred or suspended or is otherwise excluded from or ineligible for participation in Federal Assistance programs under Executive Order 12549, "Debarment and Suspension" from receiving federal funds . Grantee MUST affirm contractor's debarment or suspension status by reviewing the Federal Excluded Parties List System at https:1/sam .gov/SAM/ before awarding any contract. D. Grantee must submit to the WSDA Agreement Manager a copy of all subcontracts in which the subcontractor receives federal funds pursuant to the Agreement within 30 days of subcontract execution date. E. Failure to comply with procurement requirements under 2 CFR § 200 may result in recapture offunds. 11. SPECIAL PURPOSE EQUIPMENT When acquiring spec ial purpose equipment, Grantee must comply with 2 CFR 200 .313 including, but not limited to: A. Title to special purpose equipment purchased with grant funds vests with Grantee; B. Grantee must maintain property records including a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the Kittitas County K2871 Page 4 Specialty Crop Block Grant Program acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. C. Items of equipment with a current per unit fair market value of $5,000 or less may be retained, sold or otherwise disposed of with no further obligation to the Federal awarding agency, the Grantee must submit a written request to WSDA for disposition instructions; D. Grantees are encouraged to use funds to purchase only American-made equipment. 12. REPORTING REQUIREMENTS Grantee must submit the reports specified in Attachment B to specialtycr'op@agr.wa .gov by the due date identified in Attachment B. The Annual and Final report templates are available at http://www.agr.wa .qovlqrants . The WSDA Agreement Manager will furnish quarterly report template upon request. In addition to the required information specified in Attachment B, all quarterly reports must include a status report on Work Plan specified in Attachment A: Work Plan and Budget for the reporting period, including tasks completed, tasks delayed, the plan to address delays, future project plans, and any other adjustments needed to the Work Plan. 13. DELIVERY OF GRANT PRODUCTS Grantee must deliver to WSDA, at no charge, copies of all reports, articles, books or other documents that arise as a result of the Project. 14. AUDIT A. Grantee must submit a copy of any audits that are performed for their organization, association, agency, etc., if the audit occurs within the period of performance for this agreement. B. Grantee must obtain single or program-specific audit must be conducted in accordance with 2 CFR 200.501 if Grantee expends $750,000 or more in Federal awards during its fiscal year. A single or program-specific audit must be conducted in accordance with 2 CFR 200.501 . 15. SITE VISIT EVALUATIONS A. Grantee must provide right of access to its facilities and any books, documents, papers, or other project- related records to WSDA for the purpose of evaluating performance and compliance. B. To the extent possible, all site visits will be scheduled on mutually acceptable dates. C. WSDA will provide a written site visit evaluation no later than 30 days following the site visit. If WSDA identifies concerns during or after the site visit and requests additional documentation, Grantee must provide such documents within 30 days of receipt of the site evaluation. 16. COMPLIANCE ENFORCEMENT ACTIONS A. WSDA may take action for Grantee's failure to comply with the Agreement terms and conditions, including invoicing and reporting requirements, in accordance with all applicable statues, regulations, and policies. The type of the enforcement action may depend on the severity and duration of the non-compliance. B. WSDA will provide Grantee notice and an opportunity to correct the non-compliance before taking an enforcement action; repeated or continued non-compliance is ground for termination for cause. C. WSDA's enforcement action include, but are not limited to: 1. Disallowance of costs for all or part of the cost of the activity or action not in compliance, or for non- compliant invoicing or reporting. 2. Withholding of payments. 3. Imposition of additional conditions in accordance with 2 CFR 200.207 and 200.338. 4. Suspension or termination of the Agreement in accordance with 2 CFR 200.338-200.342 and Section 23 of this Agreement. 5. Recapture offunds under Section 16 of this Agreement. 17. RECAPTURE FUNDS Kittitas County K2871 Page 5 Specialty Crop Block Grant Program A. If Grantee fails to perform its obligations under this Agreement in compliance with state laws, federal laws, and/or the provisions of this Agreement, WSDA reserves the right to recapture all or any portion of funds disbursed under the Agreement. B. When it is discovered that Grantee has received reimbursement for a disallowed expenditure or if WSDA determines that Grantee's records are insufficient to support a conclusion that the expenditure is allowable, WSDA may allow Grantee to repay the amount within 30 days of notification or deduct the amount from a subsequent Request for Reimbursement. 18. AMENDMENT AND CHANGES REQUIRING PRIOR APPROVAL A. The Parties may amend the Agreement by prior mutual consent. No amendments are binding unless in writing and approved by WSDA staff. Some amendments may require prior approval by USDA. B. Amendments include, but not limited to, changes to: the scope or objectives of the Project; contractors or venders; key personnel, including the time that key personnel devote to the Project; budget; special purpose equipment; out-of-country travel; one-time no-cost extension; green house rental; conference registration fees; etc. C. Grantee's request to modify the budget to add allowable costs must be supported by the following documentation in the same format as the budget narrative in Attachment A: 1. A description of and justification for the proposed new costs including an explanation of how the additional cost furthers the objectives of the project. 2. If applicable, a comparison between the current budget and the proposed budget as well as an updated budget narrative of the affected cost categories. D. Key personnel include the Grantee project coordinator as well as other key project contributors. A change occurs when key personnel disengages from the Project for a period of more than 3 months, reduces the time devoted to managing the project by 25% or more or severs his or her connection to the activities in the Agreement. Grantee's request to modify key personnel provisions must be supported by the following documentation: 1. The name of the individual(s) being replaced and the new individual name and contact information. 2. The qualifications (CV or resume) of the new individual(s). 3. The capacity in which the new individual will serve. 4. Written notification from the new individual signifying his/her willingness to serve on the project. 5. The effective date. 6. Changes to the project narrative, budget, or timeline caused by the change in key personnel. E. Regardless of whether there is an associated budget revision, any change to the scope or objective of the project is an amendment to the Agreement. Grantee's request to modify the scope or objective must be in the same format/template used to present this information in Attachment A with the changes identified. The request must include: 1. A description ofthe change include what activities the new work replaces. 2. A revised narrative for the relevant portion of the approved project. 3. The proposed dates of implementation {MM/YYYY-MM/YYYY). 4. An explanation of how the change in scope or objective will affect the project narrative, outcome measures, budget, or time line. 19. RECORD MAINTENANCE A. Grantee shall maintain books, records, documents and other evidence relating to this Agreement and performance ofthe services described herein, including but not limited to accounting procedures and practices that sufficiently and properly reflect all direct costs of any nature expended in the performance of this Agreement. At no additional cost, these records, including materials generated under the agreement, shall be subject at all reasonable times to inspection, review, or audit by personnel duly authorized by the Agency, the Office of the State Auditor, and federal officials so authorized by law, rule, regulation, or contract. The Grantee shall be responsible for any audit exceptions or disallowed costs incurred by the Grantee or any of its Subcontractors. Kittitas County K2871 Page 6 Specialty Crop Block Grant Program B. The Grantee will retain all books, records, documents, and other materials relevant to this Agreement for six years following the date of final payment. If additional litigation, claim or audit is started before the expiration of the six (6) year period, the records shall be retained until all litigation, claims, or audit findings involving the records have been resolved. 20. PUBLICITY AND ACKNOWLEDGEMENT Grantee shall acknowledge WSDA's support through the Specialty Crop Block Grant Program whenever a project funded by this Agreement, in whole or in part, is publicized in any news media. Brochures and other types of promotional materials shall include the WSDA Specialty Crop Block Grant Program logo or a statement recognizing the funding source. (Example of funding source statement: "This project was funded by/or in part by WSDA's Specialty Crop Block Grant Program"). The program logo can be found on the program's webpage at ~.ag_r. wa .gov/grants/scbgp. 21. RIGHTS IN DATA Unless otherwise provided, Grantee owns data that originates under this Agreement. Data includes, but not be limited to, reports, documents, pamphlets, advertisements, books, magazines, surveys, studies, computer programs, films, tapes and/or sound reproductions. Ownership includes the right to copyright, patent, register, and the ability to transfer these rights. Under 2 CFR 200.448, USDA reserves a royalty-free, non-exclusive, and irrevocable license to reproduce, publish or otherwise use, and authorize others to use, for Federal Government purposes: the copyright in any work developed under this Agreement; and any rights of copyright to which the Grantee purchases ownership with these funds. WSDA reserves the same rights in data as is reserved by USDA. 22. INDEPENDENT CAPACITY OF GRANTEE The employees or agents of each party continue to be employees or agents of that party and shall not be considered for any purpose to be employees or agents of the other party. 23. ASSIGNMENT The work to be provided under this Agreement, and any claim arising thereunder, is not assignable or delegable by either party in whole or in part, without the express prior written consent of the other party, which consent shall not be unreasonably withheld. 24. TERMINATION OR SUSPENSION PRIOR TO GRANT END DATE A. For Convenience: Either party may terminate this Agreement upon 30 days prior written notice to the other party. If this Agreement is so terminated, the parties shall be liable only for performance rendered or costs incurred in accordance with the terms of the Agreement prior to the effective date of termination. B. For Cause: If either party determines that the other has failed to comply with the conditions of this Agreement in a timely manner, the aggrieved party will give the other party written notice of the need to take corrective action. If the failure to comply is not cured within 20 calendar days, the aggrieved party may terminate or suspend the Agreement by notice to the other party. The parties may agree to resolve the matter pursuant to the procedures in Section 24, Disputes. C. For Loss of Funding or Government Shutdown: If funding from any source is withdrawn, reduced, or limited in any way after the effective date of this Agreement and prior to normal completion, WSDA may terminate or suspend the Agreement without advance notice. In lieu of termination or suspension, the parties may amend the Agreement to reflect the new funding limitations and conditions. If temporary federal or state government shutdowns occur for any reason, WSDA may suspend this Agreement or delay payments due under it without advance notice. 25. DISPUTES Except as otherwise provided in this Agreement, when a dispute arises between the parties that cannot be resolved through discussion and negotiation, either party may initiate dispute resolution as follows: The parties will select a dispute resolution team consisting of a representative appointed by the WSDA, a representative Kittitas County K2871 Page 7 Specialty Crop Block Grant Program appointed by the Grantee, and a third party mutually agreed upon by both parties. Each side will present their position to the dispute resolution team, which shall attempt to resolve the dispute by majority vote. This dispute resolution process must preceed any action in a judicial or quasi-judicial setting, unless both parties agree to waive dispute resolution. 26. WAIVER A failure by either party to insist on strict performance by the other party of any provision in this Agreement shall not constitutes a waiver ofthe other party's obligations. Waiver of any right must be in writing and signed by an authorized representative of the party waiving the right. 27. SEVERABILITY The provisions of this Agreement are intended to be severable. If any term or provision is illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the validity of the remainder of the Agreement. 28. SURVIVAL The terms, conditions, and warranties in this Agreement that by their sense and context are intended to survive the completion of performance, cancellation or termination of this Agreement shall so survive. Such provisions include but are not limited to the following sections of this Agreement: Recapture, Records Maintenance, Copyright Provisions, Indemnification, Disputes, and Governance. 29. GOVERNANCE This Agreement is entered into pursuant to and under the authority granted by the laws of the state of Washington and any applicable federal laws. In addition to any requirements, limitations or restrictions contained in Section 101 of the Specialty Crops Competiveness Act of 2004 (7 USC 1621 note), Section 10109 of the Food, Conservation, and Energy Act of 2008, Public Law 110-246 (the 2008 Farm Bill), and the Agricultural Act of 2014 (P.L. 113-79), the federal funding provided under this Grant is subject to the terms and conditions in the SCBGP Grant. The provisions of this Agreement and its Attachments shall be construed to conform to those laws and the SCBGP Grant. In the event of a lawsuit involving this Agreement, venue shall be proper only in Thurston County, Washington. 30. RIGHTS AND REMEDIES NOT EXCLUSIVE The rights and remedies of the parties provided in this contract are not exclusive and are in addition to any other rights and remedies available at law or in equity. 31. ORDER OF PRECEDENCE In the event of an inconsistency in this Agreement, the inconsistency shall be resolved by giving precedence in the following order: A. Applicable federal and state of Washington statutes and regulations, including but not limited to those listed in Attachment C and D B. The SCBGP Grant C. The Agreement Face Sheet D. Terms and Conditions E. Attachment A 32. ENTIRE AGREEMENT This Agreement contains all the terms and conditions agreed upon by the parties. No other understandings, oral or otherwise, regarding the subject matter of this Agreement shall be deemed to exist or to bind any of the parties hereto. Kittitas County K2871 Page 8 Specialty Crop Block Grant Program ATTACHMENT A PROJECT PLAN WSDA Agreement No. K2871 As submitted by the Washington State Department of Agriculture and approved by the United States Department of Agriculture under FY19 Specialty Crop Block Grant Program: Project Iitle Kittitas County Duration of Project Start Date: 9/30/2019 Project Partner nnd tiumwary End Date: 9/29/2022 Kittitas County has a new and currently rapidly expanding specialty crop production area. The north facing slopes on the southern hills of the Kittitas Valley is an ideal location for growing apples like Honeycrisp, Cosmic Crisp and other large growing multi-colored apples in the Honeycrisp family. The climate in this new production area that is rapidly expanding has summertime temperatures that are seven to ten degrees cooler than other production areas and it grows a high quality apple with reduced size and increased quality and storability. This project will help to promote and encourage the introduction of these new varieties into an area that is naturally suited for growing them. The area has the perfect climate for growing these types of apples but is a high risk area for the due to the risk posed by nearby apple maggot populations. There are documented apple maggot populations to the north and west of the location where the expansion is occurring. This program will help the county have control methods in place that will help keep the area in the vicinity of these orchards an apple maggot pest free area. This specialty crop block grant will provide a pathway forward for the county to manage the pest in such a way that the pest risk is significantly reduced for the specialty crop producers and processors in our county. The program will help manage the risk of apple maggot as the area continues to develop. Project Purpose The purpose is to suppress and eradicate the apple maggot in pest free areas in Kittitas County. Apple maggot is a quarantined pest under Washington State law and suppression and preventing spread of this pest into commercial production areas is vital to Washington's $2 billion apple industry. There has been a major increase in specialty crop production (apples) in Kittitas County. The north facing slopes on the southern hills of the Kittitas Valley is an ideal location for growing apples like Honeycrisp, Cosmic Crisp and other large growing multi-colored apples in the Honeycrisp family. The climate in this new production area has summertime temperatures that are seven to ten degrees cooler than other production areas and it grows a high quality apple with reduced size and increased quality and storability. This project will help to promote and encourage the introduction of these new varieties into an area that is naturally suited for growing them. The area has the perfect climate for growing these types of apples but it is a high risk area for growers because the county is not yet set up to deal with the risk posed by existing apple maggot populations nearby. There are documented apple maggot populations to the north and west of the location where the expansion is occurring, and Interstate 90 runs through the county and provides additional risk pathways for this pest. Apple maggot is considered intolerable within the commercial fruit industry for quite a few reasons. An infestation of apple maggot in a crop would require destruction. There are no known treatments for infected fruit. Also, if apple maggot infected fruit was detected at an international port, it could lead to anything from the loss of that shipment, to a prohibition on Washington fruit to that country. The impacts could be so significant that Washington State established an apple maggot quarantine program in 1983. Continued surveillance and treatment of found apple maggot infestations is vital to protecting Washington's status as a producer of high-value, pest free tree fruit. This program will help the county have control methods in place that will help keep the area in the vicinity of these orchards an apple maggot pest free area. This specialty crop block grant will provide a pathway forward for the county to manage the pest in such a way that the pest risk is significantly reduced for the specialty crop producers and processors in the county. The program will help manage the risk of apple maggot as the area continues to develop, and also continue to protect Washington's reputation for high-valued fruit. Objectives K2871 Grant Agreement WSDA Agreement No. K2871 Objective 1: This project will prevent the spread of apple maggot populations in Kittitas County, Washington. -Prnjcct Qeueficiarjcs Estimate the number of project beneficiaries: 150 Does this project directly benefit socially disadvantaged farmers? No Does this project directly benefit beginning farmers? No Statement of Enhancing Specialty Crops By checking the box below, I confirm that this project enhances the competitiveness of specialty crops in accordance with and defined by 7 U.S.C. 1621. Further information regarding the definition of a specialty crop can be found at www.ams,usda.gov/serviees/g1'ants/sc bgp . I confirm the above Cou t;ouat;oo or rrn;cct lg formati on This project is not a continuation of another project. Oth er Suppmt from Fed eral or Stat·e Ptogram s There are no state or federal grant funds other than SCBGP being requested to fund this work. Ex ternol rrn;ec t Support The stakeholders who support this project are Washington State Tree Fruit Association (more than 2000 members), Kittitas County Farm Bureau (growers on over 100,000 acres) and Kittitas Reclamation District (irrigation district supporting 40,000 acres of irrigated cropland). All of these organizations are dedicated to preventing the spread of apple maggot into newly planted and existing commercial orchard systems. Preventing this spread increases the resiliency of Washington apple exports and could open emerging markets with newly planted specialty apples. W orl<nhi ~ Project Activity 2020 survey design and survey 1 !activities 2 Quarterly reports to WSDA 3 preventionlco.ntrol activities on -~pp le m aggot 4 Annual Reports to WSDA 5 final Project Report to WSDA Expected Measurable Outcome<s) Outcome 5, Indicator #1 !Responsible Timeline Party K ittitas 10/2019-09/2020, 10/2020- Cou nty 9/2021, 10/202 1 -9/2022 Kittitas County Every 3 months beginning 12/2019 Kittitas County ~/2020-9/2020, 6/2021-9/2021, KJ/2022-9/2022 Kittitas County Nove mb r 2020 and each subseq uent proje ct year Kittitas County 11/15/2022 Number of new or improved innovation models (biological, economic, business, management, etc.), technologies, networks, products, processes, etc. developed for specialty crop entities including producers, processors, distributors, etc . 1 --- Data Collccuou to Report on ou tcomes and Jndjcators Kittitas County will track the location and frequency of surveillance activities, as well as the number of site visits and K2871 Grant Agreement WSDA Agreement No. K2871 treatments completed by the contractor on a monthly and annual basis. R, ,~,,t N .... ,.Hf i'1D, Category Funds Requested Match (if applicable) Personnel $ $1,500 Fringe Benefits $ $400 ~ontractual $150,000 $15,000 Total $150,000 $16,900 l .i~, Name of Organization Hourly Rate/Flat Funds Requested Rate B&F Services $95 .00 flat rate $150,000 per treatment site Cootructual ,l11sfificatio11 The Contractor will investigate complaints in accordance with the Rules and Regulations of the Kittitas County Horticultural Pest and Disease Board and arrange for and oversee spraying when spraying is being performed with authorization from the County. Monitor property subject to complaint until inspector determines that the site is no longer a nuisance or threat or it so instructed by the County. The Contractor will also be licensed by the Washington State Department of Agriculture as a commercial pesticide applicator and shall cause said license will remain in effect throughout the term of this Agreement. The Contractor will be available at all times within the term of this Agreement to apply pesticides at the direction of the County or its authorized representative within 72 hours of notification. The Contractor will provide all equipment, labor, and materials (including pesticides) necessary to fulfill this Agreement. The Contractor will apply only materials specified by the County subject to regulations of the USDA and the WSDA. MaWl The matching funds in personnel and benefits will be administrative tasks associated with the program, including the grant administration, processing of payments and year-end reporting requirements by current County employees. The $15,000 ($5,000 per year) match for Contracted services will be from Kittitas County's local funds. K2871 Grant Agreement ATTACHMENT B REPORTING REQUIREMENTS Pl e11 s e ubrnit 11II reports to specialtycrop@aer.wn .gov Include the following sections to detail progress to date: Work Plan status for the reporting period, including tasks completed, tasks delayed, plans to address delays, future project plans, and any other adjustments needed to the Work Plan . Please refer to Attachment A: Work Plan and Budget sections when completing your quarterly report. The quarterly periods and due dates are as follows: Report Period: October 1-December 31 Due Date: January 31 Report Period: January 1 -March 31 Due Date: April 30 Report Period: April 1 -June 30 Due Date: July 31 *Report Period: July 1 -September 30 Due Date: October 31 *Optional: may be included in the annual/final report ANNUAL PERFORMANCE REPORTS Include the following sections to detail progress to date: Annual reports Due November 15 . Project Information Activities Performed Estimate the Total Percentage(%) of Work Completed on the Project ______ .. ---····-··-··-·····-·······Enter Percent% List your accomplishments or activities for this period of performance, and indicate how these accomplishments assist in the u/fillment .ofyo_ur JJ l'()ject's obiectivef~}. idMt{fyi1tq the specific objective{ s) {,-om the Accepted Proj ect Proposal. # Accomplishment/ Activity Relevance to Objective 1 2 3 4 Challenges and Developments Provide any challenges to the completion of your project or any positive developments outside of the project's original intent that you experienced during this reporting period. If those challenges or developments resulted or will result in corrective actions and/or clwwes-to the i,roiect, include those in the svace below. # ChallenRe or Development Corrective Action or Project ChanRe 1 2 3 4 Please list the Outcomes and Indicators you selected in your accepted project proposal, and identify the quantifiable results, along with an update on their progress. It is understood that the results may not yet be final at the tim e that this report is I d I I id (1 h d su ,mitce · : 1owe ver, n ease ,p,-ov e an ur1 ate on t e pro_qre.fs to ate. # Outcome/Indicator Quantifiable Results 1 2 Prov ide any additional information that has not already been covered by Accomplishments, Challenges, and/or Outcomes sections. This section is not required. Upcoming Activities Describe activities you plan to complete during the next reporting period. Activity Anticipated Completion Project Expenditures to Date Cost Category Amount Approved in Budget Actual Federal Expenditures (Federal Funds ONLY) Personnel Frin2:e Benefits Travel Equipment I Supplies Contractual Other Direct Costs Sub-Total - Indirect Costs Total Federal Costs Discussion of expenditures For 1st Annual Reports if this amount is less than 30 percent and for 2nd Annual Reports if this amount is less than 60 percent, include a statement explaining how the grant funds will be expended and project activities completed as planned by the end date on the grant agreement. Program lncome[ifaoolicable) Source/Nature Amount Approved in Budget Actual Amount Earned (i.e., reltistration fees) Total Program Income Earned Use of Program Income Describe how the ea med ro ram income was used to urther the ob ·e ctives o this ro ·ect. FINAL PERFORMANCE REPORT Grantees are required to submit a final performance report at the end of the project. The final performance report must follow the content requirements in Attachment B. Report Period: Entire project period 45 days after the Agreement expiration date or project completion date, whichever comes first. Include the following sections: Project Information Project Background Provide enough information for the reader to understand the importance or context of the project. This section may draw from the background and justification contained in the approved project proposal. Activities Performed Address the below sections as they relate to the entire project's period of performance. Provide the approved project's objectives. I ~ I Obje<Hve v~:mr::. *If no is selected for any of the listed objectives, you must expand upon this in the challenges and lessons learned sections. List your accomplishments for the project's period of performance, including the impact they had on the project's beneficiaries, and indicate how these ·accomp//shments assist in the [ti.l[il/ment ofyour project~: obfective(s), ou tcame{s).' and/or lndicator(s . # Accomplishment or Impact Relevance to Objective, Outcome, and/or Indicator 1 2 3 Challenges and Developments Provide any challenges to the completion of your project or any positive developments outside of the project's original intent that you experienced during this project. Also, provide the corrective actions you took to address these issues. If you did not attain an auaroved objectives, o.utcomefr), and/or i11ditatol'{s}, provide an exp lanation in the Corrective Actions column. # Challenge or Development Corrective Action or Project Change 1 2 3 4 Lessons Learned Provide recommendations or advice that others may use to improve their performance in implementing similar projects. Describe your plans for continuing the project (sustainability; capacity building) and/or disseminating the project results. Beneficiaries Number of project beneficiaries : ............................................................... Enter Number of Project Beneficiaries Outcome(s) and lndictator(s)/Sub-lndicator(s) Provide the results of the project outcome(s) and indicator(s) as approved in your application and project proposal. The results of the out,come(s) and indicator(s) will be used to evaluate the performance of the Program on a national level. State the Outcome Measure(s) that were approved for your project. Provide the indicator approved for your project and the related quantifiable result. If you have multiple outcomes and/or indicators, repeat this for each outcome/indicator ( add more rows as needed). # Outcome and Indicator Quantifiable Results 1 2 3 Explain what data was collected, how it was collected, the evaluat,on methods used, and how the data was analyzed to derive the quantifiable indicator. Federal Project Expenditures Cost Category Amount Approved in Budget Actual Federal Expenditures (Federal Funds ONLY) Personnel Fringe Benefits Travel Equipment Suoolies Cost Category Amount Approved in Budget Actual Federal Expenditures (Federal Funds ONL Yl Contractual Other Direct Costs Sub-Total Indirect Costs Total Federal Costs Program Income (if applicable) Source/Nature Amount Approved in Budget Actual Amount Earned (I.e., rel!istration fees) 1. 2. 3 . Total Pro1rram Income Earned Use of Program Income Describe how the earned ro ram income was used to rther the ob ·ectives o this ro ·ect Additional Information Provide additional information available (i.e., publications, websites, photographs) that is not applicable to any of the prior sections. ATTACHMENT C APPLICABLE FEDERAL LAWS AND REGULATIONS Awards issued under this announcement are subject to the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards of2 CFR part 200 as implemented by the USDA under 2 CFR part 400 and the most recent SCBGP General Award Terms and Conditions. An application funded with the release of Federal funds through a grant award does not constitute, or imply, compliance with Federal regulations. Grant recipients and subrecipients are responsible for ensuring that their activities comply with all applicable Federal regulations. I agree to comply with the following Federal statutes and regulations as applicable to my award. These include but are not limited to the ones listed below. The full text of Code Federal Regulations references can be found at: eCF R-Code of Federal Regul a tions . Federal statutes and regulations found on the SF-424B "Assurances -Non-Construction Programs." 2 CTR§ 25 -System for Award Management and Universal Identifier Requirements 2 CER § 170 -Reporting Subaward and Executive Compensation Information 2 CFR § 175 -Award Term for Trafficking in Persons 2 CFR §§ 180 and 417 -0MB Guidelines to Agencies on Government-Wide Debarment and Suspension (Nonprocurement) and USDA Nonprocurement Debarment and Suspension 2 CFR § 182 -Governmentwide Requirements for Drug-Free Workplace (Financial Assistance) 2 Cf R § 200 -Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards 2 CFR § 400 -Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards 2 CFR § 41 S -General Program Administrative Regulations 2 CFR § .416 -General Program Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments 2 CFR § 418 -New Restrictions on Lobbying 2 CFR § 421 -Requirements for Drug-Free Workplace (Financial Assistance) 2 CFR '§ 422 -Research Institutions Conducting USDA-Funded Extramural Research; Research Misconduct 7 CFR § J , subpart A ~ Official Records (Freedom of Information Act) 7 CFR § l(b) -National Environmental Policy Act 7 CFR § 3-DebtManagement (0MB Circular No. A-129) 7 CFR § 15, subpart A -Nondiscrimination in Federally-Assisted Programs of the Department of Agriculture- Effectuation of Title VI of the Civil Rights Act of 1964 7 CFR § 331 and 9CFR § 121 -USDA implementation of the Agricultural Bioterrorism Protection Act of 2002 37 CPR § ·40 I -Rights to Inventions made by Nonprofit Organizations and Small Business Firms under Government Grants, Contracts, and Cooperative Agreements 41 CFR §§ 30 1-10.131 to 30 l -10.143 -Use of United States Flag Air Carriers, which implements the Fly America Act (49 U.S.C. 40118). For more information see htlp:/lwww.gsa.gov/porta1/conrenUI03J9l. 48 CFR subpart 31.2 -Contracts with Commercial Organizations 8 U.S.C. ·& 1324a -Unlawful employment of aliens 29 U.S.C. § 794 -Nondiscrimination under Federal grants and programs 41 U .. C. ·§ 22 -Interest of Member of Congress 41 U.S.C. § 4712 -Pilot program for enhancement of contractor protection from reprisal for disclosure of certain information 44 U.S.C. § 3541 et seq. (P .L. 107-347)-Federal Information System Security Management Act o/2002 (FISMA) BO 13166, Improving Access to Services for Persons with Limited English Proficiency, take reasonable steps to ensure that LEP22 persons have meaningful access to programs in accordance with LE P lmplernencation Strategy for AMS Rederally-Assisted Programs. Motor Vehicle Safety-Highway Safety Act of 1966, as amended (23 U .. C.§§ 402 & 403); Government Organization and Employees Act, as amended (5 U .. C. § 7902 (c)); Occupational Safety and Health Act of 1970, as amended (29 U. .C. § 668); Federal Property and Administrative Services Act of 1949, as amended (40 U. . .. § J.O 1, el seq.); Increasing Seat Belt Use in the United States (EO 13043); Federal Leadership on Reducing Text Messaging While Driving (EO 13513) Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2012, P.L. No. 112-55, Division A, Sections 738 and 739 regarding corporate felony convictions and corporate Federal tax delinquencies ATTACHMENT D FEDERAL FUNDING ACCOUNTABILITY AND TRANSPARENCY ACT COMPLIANCE Background: The Washington State Department of Agriculture (WSDA) is required by the Federal Funding Accountability and Transparency Act (FF AT A) to report executive compensation information for certain grant awards under the Specialty Crop Block Grant Program (SCBGP). FFATA Requirement: WSDA is required to report the names and total compensation of the five (5) most highly compensated officers of your organization only if all three of the following criteria were met in your organization's previous fiscal year: 1. Your organization received 80 percent or more of its annual gross revenues from Federal awards*; AND 2. Your organization received $25,000,000 or more in annual gross revenues from Federal awards; AND 3. The public does not have access to this information about compensation through periodic reports filed under section 13(a) or 15(d) of the Securities and Exchange Act of 1934 or section 6104 of the Internal Revenue Code of 1986. Please check the appropriate box: [Kittitas County] D meets [] does 110I meet all three of the criteria listed above. [Kittitas County] agrees that if it meets all three of the criteria listed above, it will provide the names and total compensation of its five (5) most highly compensated officers to WSDA. This information will be visible to the public on w·ww .usaspe ndi ng.go *Federal awards include grants/subgrants and procurement contracts/subcontracts. Page 17 of 22 1<2871 Grant Agreement ATTACHMENT E PROCUREMENT STANDARDS I agree to follow my documented procurement procedures when contracting with a Contractor/Consultant and agree that the procedures must reflect applicable State and local laws and regulations, and must conform to applicable Federal law and the standards in 2 CFRW0.317-326 and Appendix !Ito 2 CFR Part 200. §200.317 Procurements by states. When procuring property and services under a Federal award, a state must follow the same policies and procedures it uses for procurements from its non-Federal funds. The state will comply with §200.322 Procurement ofrecovered materials and ensure that every purchase order or other contract includes any clauses required by section §200.326 Contract provisions. All other non-Federal entities, including subrecipients of a state, will follow §§200.318 General procurement standards through 200.326 Contract provisions. §200.318 General procurement standards. (a) The non-Federal entity must use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations, provided that the procurements conform to applicable Federal law and the standards identified in this part. (b) Non-Federal entities must maintain oversight to ensure that contractors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders. (c)(l) The non-Federal entity must maintain written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. No employee, officer, or agent may participate in the selection, award, or administration of a contract supported by a Federal award ifhe or she has a real or apparent conflict of interest. Such a conflict of interest would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract. The officers, employees, and agents of the non-Federal entity may neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or parties to subcontracts. However, non-Federal entities may set standards for situations in which the financial interest is not substantial or the gift is an unsolicited item of nominal value. The standards of conduct must provide for disciplinary actions to be applied for violations of such standards by officers, employees, or agents of the non-Federal entity. (2) If the non-Federal entity has a parent, affiliate, or subsidiary organization that is not a state, local government, or Indian tribe, the non-Federal entity must also maintain written standards of conduct covering organizational conflicts of interest. Organizational conflicts of interest means that because ofrelationships with a parent company, affiliate, or subsidiary organization, the non-Federal entity is unable or appears to be unable to be impartial in conducting a procurement action involving a related organization. (d) The non-Federal entity's procedures must avoid acquisition of unnecessary or duplicative items. Consideration should be given to consolidating or breaking out procurements to obtain a more economical purchase. Where appropriate, an analysis will be made of lease versus purchase alternatives, and any other appropriate analysis to determine the most economical approach. (e) To foster greater economy and efficiency, and in accordance with efforts to promote cost-effective use of shared services across the Federal Government, the non-Federal entity is encouraged to enter into state and local intergovernmental agreements or inter-entity agreements where appropriate for procurement or use of common or shared goods and services. (f) The non-Federal entity is encouraged to use Federal excess and surplus property in lieu of purchasing new equipment and property whenever such use is feasible and reduces project costs. (g) The non-Federal entity is encouraged to use value engineering clauses in contracts for construction projects of sufficient size to offer reasonable opportunities for cost reductions. Value engineering is a systematic and creative analysis of each contract item or task to ensure that its essential function is provided at the overall lower cost. (h) The non-Federal entity must award contracts only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources. See also §200.213 Suspension and debarment. Page 18 of 22 K2871 Grant Agreement (i) The non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. G)(l) The non-Federal entity may use a time and materials type contract only after a determination that no other contract is suitable and if the contract includes a ceiling price that the contractor exceeds at its own risk. Time and materials type contract means a contract whose cost to a non-Federal entity is the sum of: (i) The actual cost of materials; and (ii) Direct labor hours charged at fixed hourly rates that reflect wages, general and administrative expenses, and profit. (2) Since this formula generates an open-ended contract price, a time-and~materials contract provides no positive profit incentive to the contractor for cost control or labor efficiency. Therefore, each contract must set a ceiling price that the contractor exceeds at its own risk. Further, the non-Federal entity awarding such a contract must assert a high degree of oversight in order to obtain reasonable assurance that the contractor is using efficient methods and effective cost controls. (k) The non-Federal entity alone must be responsible, in accordance with good administrative practice and sound business judgment, for the settlement of all contractual and administrative issues arising out of procurements. These issues include, but are not limited to, source evaluation, protests, disputes, and claims. These standards do not relieve the non-Federal entity of any contractual responsibilities under its contracts. The Federal awarding agency will not substitute its judgment for that of the non- Federal entity unless the matter is primarily a Federal concern. Violations oflaw will be referred to the local, state, or Federal authority having proper jurisdiction. [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75885, Dec. 19, 2014; 80 FR 43309, July 22, 2015] §200.319 Competition. (a) All procurement transactions must be conducted in a manner providing full and open competition consistent with the standards of this section. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, or invitations for bids or requests for proposals must be excluded from competing for such procurements. Some of the situations considered to be restrictive of competition include but are not limited to: (1) Placing unreasonable requirements on firms in order for them to qualify to do business; (2) Requiring unnecessary experience and excessive bonding; (3) Noncompetitive pricing practices between firms or between affiliated companies; (4) Noncompetitive contracts to consultants that are on retainer contracts; ( 5) Organizational conflicts of interest; (6) Specifying only a "brand name" product instead of allowing "an equal" product to be offered and describing the performance or other relevant requirements of the procurement; and (7) Any arbitrary action in the procurement process. (b) The non-Federal entity must conduct procurements in a manner that prohibits the use of statutorily or administratively imposed state, local, or tribal geographical preferences in the evaluation of bids or proposals, except in those cases where applicable Federal statutes expressly mandate or encourage geographic preference. Nothing in this section preempts state licensing laws. When contracting for architectural and engineering (A/E) services, geographic location may be a selection criterion provided its application leaves an appropriate number of qualified firms, given the nature and size of the project, to compete for the contract. (c) The non-Federal entity must have written procedures for procurement transactions. These procedures must ensure that all solicitations: (1) Incorporate a clear and accurate description of the technical requirements for the material, product, or service to be procured. Such description must not, in competitive procurements, contain features which unduly restrict competition. The description may include a statement of the qualitative nature of the material, product or service to be procured and, when necessary, must set forth those minimum essential characteristics and standards to which it must conform if it is to satisfy its intended use. Detailed product specifications should be avoided if at all possible. When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a "brand name or equivalent" description may be used as a means to define the performance or other salient requirements of procurement. The specific features of the named brand which must be met by offers must be clearly stated; and (2) Identify all requirements which the offerors must fulfill and all other factors to be used in evaluating bids or proposals. (d) The non-Federal entity must ensure that all prequalified lists of persons, firms, or products which are used in acquiring goods and services are current and include enough qualified sources to ensure maximum open and free competition. Also, the non-Federal entity must not preclude potential bidders from qualifying during the solicitation period. [78 FR 78608, Dec. 26, 2013 , as amended at 79 FR 75885, Dec. 19, 2014) §200.320 Methods of procurement to be followed. Page 19 of 22 K2871 Grant Agreement The non-Federal entity must use one of the following methods of procurement. (a) Procurement by micro-purchases. Procurement by micro-purchase is the acquisition of supplies or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold (§200.67 Micro-purchase). To the extent practicable, the non-Federal entity must distribute micro-purchases equitably among qualified suppliers. Micro-purchases may be awarded without soliciting competitive quotations if the non-Federal entity considers the price to be reasonable. (b) Procurement by small purchase procedures. Small purchase procedures are those relatively simple and informal procurement methods for securing services, supplies, or other property that do not cost more than the Simplified Acquisition Threshold. If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources. (c) Procurement by sealed bids (formal advertising). Bids are publicly solicited and a firm fixed price contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming with all the material terms and conditions of the invitation for bids, is the lowest in price. The sealed bid method is the preferred method for procuring construction, if the conditions in paragraph ( c )(I) of this section apply. (I) In order for sealed bidding to be feasible, the following conditions should be present: (i) A complete, adequate, and realistic specification or purchase description is available; (ii) Two or more responsible bidders are willing and able to compete effectively for the business; and (iii) The procurement lends itself to a firm fixed price contract and the selection of the successful bidder can be made principally on the basis of price. (2) If sealed bids are used, the following requirements apply: (i) Bids must be solicited from an adequate number of known suppliers, providing them sufficient response time prior to the date set for opening the bids, for local, and tribal governments, the invitation for bids must be publicly advertised; (ii) The invitation for bids, which will include any specifications and pertinent attachments, must define the items or services in order for the bidder to properly respond; (iii) All bids will be opened at the time and place prescribed in the invitation for bids, and for local and tribal governments, the bids must be opened publicly; (iv) A firm fixed price contract award will be made in writing to the lowest responsive and responsible bidder. Where specified in bidding documents, factors such as discounts, transportation cost, and life cycle costs must be considered in determining which bid is lowest. Payment discounts will only be used to determine the low bid when prior experience indicates that such discounts are usually taken advantage of; and (v) Any or all bids may be rejected ifthere is a sound documented reason. ( d) Procurement by competitive proposals. The technique of competitive proposals is normally conducted with more than one source submitting an offer, and either a fixed price or cost-reimbursement type contract is awarded. It is generally used when conditions are not appropriate for the use of sealed bids. If this method is used, the following requirements apply: (I) Requests for proposals must be publicized and identify all evaluation factors and their relative importance. Any response to publicized requests for proposals must be considered to the maximum extent practical; (2) Proposals must be solicited from an adequate number of qualified sources; (3) The non-Federal entity must have a written method for conducting technical evaluations of the proposals received and for selecting recipients; ( 4) Contracts must be awarded to the responsible firm whose proposal is most advantageous to the program, with price and other factors considered; and (5) The non-Federal entity may use competitive proposal procedures for qualifications-based procurement of architectural/engineering (A/E) professional services whereby competitors' qualifications are evaluated and the most qualified competitor is selected, subject to negotiation of fair and reasonable compensation. The method, where price is not used as a selection factor, can only be used in procurement of A/E professional services. It cannot be used to purchase other types of services though A/E firms are a potential source to perform the proposed effort. ( e) [Reserved] (f) Procurement by noncompetitive proposals. Procurement by noncompetitive proposals is procurement through solicitation of a proposal from only one source and may be used only when one or more of the following circumstances apply: (I) The item is available only from a single source; (2) The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation; (3) The Federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to a written request from the non-Federal entity; or ( 4) After solicitation of a number of sources, competition is determined inadequate. [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75885, Dec. 19, 2014; 80 FR 54409, Sept. 10, 2015] §200.321 Contracting with small and minority businesses, women's business enterprises, and labor surplus area firms. Page 20 of 22 K2871 Grant Agreement (a) The non-Federal entity must take all necessary affirmative steps to assure that minority businesses, women's business enterprises, and labor surplus area firms are used when possible. (b) Affirmative steps must include: (1) Placing qualified small and minority businesses and women's business enterprises on solicitation lists; (2) Assuring that small and minority businesses, and women's business enterprises are solicited whenever they are potential sources; (3) Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses, and women's business enterprises; (4) Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority businesses, and women's business enterprises; (5) Using the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and (6) Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in paragraphs (1) through (5) of this section. §200.322 Procurement of recovered materials. A non-Federal entity that is a state agency or agency of a political subdivision of a state and its contractors must comply with section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR part 247 that contain the highest percentage ofrecovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement ofrecovered materials identified in the EPA guidelines. [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75885, Dec. 19, 2014] §200.323 Contract cost and price. (a) The non-Federal entity must perform a cost or price analysis in connection with every procurement action in excess of the Simplified Acquisition Threshold including contract modifications. The method and degree of analysis is dependent on the facts surrounding the particular procurement situation, but as a starting point, the non-Federal entity must make independent estimates before receiving bids or proposals. (b) The non-Federal entity must negotiate profit as a separate element of the price for each contract in which there is no price competition and in all cases where cost analysis is performed. To establish a fair and reasonable profit, consideration must be given to the complexity of the work to be performed, the risk borne by the contractor, the contractor's investment, the amount of subcontracting, the quality of its record of past performance, and industry profit rates in the surrounding geographical area for similar work. ( c) Costs or prices based on estimated costs for contracts under the Federal award are allowable only to the extent that costs incurred or cost estimates included in negotiated prices would be allowable for the non-Federal entity under Subpart E- Cost Principles of this part. The non-Federal entity may reference its own cost principles that comply with the Federal cost principles. ( d) The cost plus a percentage of cost and percentage of construction cost methods of contracting must not be used. §200.324 Federal awarding agency or pass-through entity review. (a) The non-Federal entity must make available, upon request of the Federal awarding agency or pass-through entity, technical specifications on proposed procurements where the Federal awarding agency or pass-through entity believes such review is needed to ensure that the item or service specified is the one being proposed for acquisition. This review generally will take place prior to the time the specification is incorporated into a solicitation document. However, if the non-Federal entity desires to have the review accomplished after a solicitation has been developed, the Federal awarding agency or pass-through entity may still review the specifications, with such review usually limited to the technical aspects of the proposed purchase. (b) The non-Federal entity must make available upon request, for the Federal awarding agency or pass-through entity pre- procurement review, procurement documents, such as requests for proposals or invitations for bids, or independent cost estimates, when: Page 21 of 22 K2871 Grant Agreement (I) The non-Federal entity's procurement procedures or operation fails to comply with the procurement standards in this part; (2) The procurement is expected to exceed the Simplified Acquisition Threshold and is to be awarded without competition or only one bid or offer is received in response to a solicitation; (3) The procurement, which is expected to exceed the Simplified Acquisition Threshold, specifies a "brand name" product; (4) The proposed contract is more than the Simplified Acquisition Threshold and is to be awarded to other than the apparent low bidder under a sealed bid procurement; or (5) A proposed contract modification changes the scope of a contract or increases the contract amount by more than the Simplified Acquisition Threshold. (c) The non-Federal entity is exempt from the pre-procurement review in paragraph (b) of this section if the Federal awarding agency or pass-through entity determines that its procurement systems comply with the standards of this part. (1) The non-Federal entity may request that its procurement system be reviewed by the Federal awarding agency or pass- through entity to determine whether its system meets these standards in order for its system to be certified. Generally, these reviews must occur where there is continuous high-dollar funding, and third party contracts are awarded on a regular basis; (2) The non-Federal entity may self-certify its procurement system. Such self-certification must not limit the Federal awarding agency's right to survey the system. Under a self-certification procedure, the Federal awarding agency may rely on written assurances from the non-Federal entity that it is complying with these standards. The non-Federal entity must cite specific policies, procedures, regulations, or standards as being in compliance with these requirements and have its system available for review. §200.325 Bonding requirements. For construction or facility improvement contracts or subcontracts exceeding the Simplified Acquisition Threshold, the Federal awarding agency or pass-through entity may accept the bonding policy and requirements of the non-Federal entity provided that the Federal awarding agency or pass-through entity has made a determination that the Federal interest is adequately protected. If such a determination has not been made, the minimum requirements must be as follows: (a) A bid guarantee from each bidder equivalent to five percent of the bid price. The "bid guarantee" must consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that the bidder will, upon acceptance of the bid, execute such contractual documents as may be required within the time specified. (b) A performance bond on the part of the contractor for 100 percent of the contract price. A "performance bond" is one executed in connection with a contract to secure fulfillment of all the contractor's obligations under such contract. ( c) A payment bond on the part of the contractor for 100 percent of the contract price. A "payment bond" is one executed in connection with a contract to assure payment as required by law of all persons supplying labor and material in the execution of the work provided for in the contract. §200.326 Contract provisions. The non-Federal entity's contracts must contain the applicable provisions described in Appendix II to Part 200---Contract Provisions for non-Federal Entity Contracts Under Federal Awards. Page 22 of 22 K2871 Grant Agreement ATTACHMENT F USDA TERMS AND CONDITIONS USDA Agricultural Marketing Service Agric ltural Ma keting Service (AMS) G ants Division General Terms and Co ditio s Effective Date: August 2019 TABLE OF CONTENTS 1.0 OVERVIEW OF GENERAL TERMS AND CONDITIONS ......................................................................................................................... 3 1.1 Common Terms and Acronyms ...................................................................................................................................................................... 3 1.2 O.rder of Pr eceden ce ................................................................................... : ...................................... ,. ............................................................ 4 1.3 Definitions ............................................ : ...................................... , ...... : ... :···· .. :· ............................................. , ................. , ................................. , 4 Z.O FINANCIAL MANAGEMENT .............................................................................................................................................................. S 2.1 Audit Requirements ......................................................................................................................................................................................... 5 2.2 Cost Sharing or Matching ............................................................................... --.................................... , .... ., ............ : ....................................... 6 3.0 SUBRECIPIENT MONITORING & MANAGEMENT .............................................................................................................................. 6 4.0 PAYMENTS ...................................................................................................................................................................................... 6 4.1 Types of Payments ........................................................................................................................................................................................... 6 4.2 How to Request Payments ..................... , ........................................................................................................................ _, ............................ 7 4.3 Payment Source Documentation and Other Requirements ............................................................................................................................ 7 4.4 Timely Drawdown and Use of Grant Funds ..................................................................................................................................................... 7 5.0 INTEREST EARNED AND ADVANCES OF GRANTS FUNDS .................................................................................................................. 7 6.0 PROGRAM INCOME ......................................................................................................................................................................... 8 7.0 PROCUREMENTS ............................................................................................................................................................................. 8 8.0 ALLOWABLE COST AND ACTIVITIES ............................................................................ , .................................................................... 8 8 .1 Indirect Costs ............. : ..................................................................................................................................................................................... 8 8.2 Allowable and Unallowable Costs and Activities ............................................................................................................................................. 9 9.0 CHANGES REQUIRING PRIOR WRITTEN APPROVAL ....................................................................................................................... 17 9.1 Change in Key Personnel/Time Devoted to the Project.. ............................................................................................................................... 18 9.2 Change in Scope or Objectives ......... -.................... ,. ................................................................................ :: ............ _ .•. · .. -... · ............. ..-............ 18 9.3 One·Time Extension ...................................................................................................................................................................................... 18 9.4 Budget Change ......... , ......................................... , .................................................... · ............................... · .............................. ., .......................... 19 95 Pr e-Award Costs ............................................................................................................................................................................................... 1.9 9.6 Contracting or Subawarding for Activities Central to the Award's Purpose(s) .............................................................................................. 19 9.7 Specific Allowable Costs Prior Approvals ....................................................................................................................................................... 19 9.8 Changes to Recipient Name or Address ............................................. ., ........................................................ , ................................................... 20 9.9 Cost Share or Match-Changes in the Amount ....................................................................... : ......................................................................... 20 10.0 PERFORMANCE AND FINANCIAL REPORTS .................................................................................................................................. 20 10.1 Interim Performance and Financial Reports ................................................................................................................................................ 21 10.2 Final Performance and Financial Reports ...... --..................................................................... , ...................... ., .................. --............................. 21 10.3 Review of Performance and Financial Reports ........................................................................................... H ...... ., ...................................... " ...... 21 10.4 Public Access to Performance Reports and Information on Report Content.. ....................... : .................................................................... 21 10.5 Disparaging Language and Protected PII ..................................................................................................................................................... 21 10.6 Overdue Reports .......................................................................................................................................................................................... 21 11.0 ACKNOWLEDGEMENT OF SUPPORT ............................................................................................................................................ 21 12.0 PROPERTY MANAGEMENT .......................................................................................................................................................... 22 12.1 Disposition of Equipment and Supplies ............................................................................................ --.. , ...................................................... 22 13.0 ADMINISTRATIVE AND NATIONAL POLICY REQUIREMENTS ......................................................................................................... 23 14.0 CLOSEOUT ................................................................................................................................................................................... 24 14.1 Closeout Checklist .................. -. ....................... , ................................................................................................................................... , ........ 24 14.2 Unused and Returned Funds ............................................... , .................................................................. , .................................................... 24 15.0 RECORD RETENTION ...................................... : .......... , ...................................................................... : ....... : .................... : .............. 25 16.0 ACCESS TO RECORDS ................................................................................................................................................................... ZS 17.0 REMEDIES FOR NONCOMPLIANCE ............................................................................................................................................... 25 17.1 Disallow Costs .............................................................................................................................................................................................. 25 17.2 Withdrawal of Authorized Personnel Approval ........................................................................................................................................... 25 17.3 Withholding of Payments ............................................................ -............ -................................................................................................ 25 17.4 Withholding of Support ................................................................................................................................................................................ 26 2 17.5 Suspension or Termination .......................................................................................................................................................................... 26 17.6 Special Conditions for High -Risk Recipients ................................................................................................................................................. 26 18.0 SITE VISITS .................................................................................................................................................................................. 26 19.0 APPEALS ...................................................................................................................................................................................... 26 20.0 LIMIT OF FEDERAL LIABILITY ........................................................................................................................................................ 27 21.0 FRAUD, WASTE, AND ABUSE ....................................................................................................................................................... 27 22.0 PROHIBITION OF CONFIDENTIALITY AGREEMENTS ...................................................................................................................... 27 23.0 PAPERWORK REDUCTION ........................................................................................................................................................... 28 24.0 NONDISCRIMINATION STATEMENT ............................................................................................................................................. 28 1.0 OVERVIEW OF GENERAL TERMS AND CONDITIONS The Agricultural Marketing Serv ic e (AMS) Grants Division general terms and conditions apply to all AMS grant agreements and provide the requirements for a recipient's grant. The general terms and conditions are determ ined by statutory, regulatory, and agency requirements, as well as the administrative policies . By accepting a grant agreement w ith AMS, recipients accept r esponsibility for all applicable te r ms and conditions. Failure to comply may result in actions de scr ibed in sect ion 17.0 Remed ies for Noncompliance. AMS uses USDA's ezFedGrants online grants and agreements management system. AMS grant rec i pients must register and use the system to submit all applicab le gr ant related documents. For registrat ion instructions, visit the ezFedGrants home page or use the onboarding reference. The Grant Agreement Face Sheet (Form AMS-33) references these terms and conditions and provides a link to th e AMS website that contains all related documents to manage the award . 1.1 Common Terms and Acronyms ------------ Term/ Acronym Meaning ACH Automated Clearing House AMS Agricultural Marketing Service AOR Authorized Organization Representative CFDA Catalog of Federal Domestic Assistance CFR Code of Federal Regulations DUNS Data Universal Numbering System EFT Electronic Fund Transfer ezFedGrants USDA's Grants and Agreements Management System FAIN Federal Award Identification Number; also known as the Grant Agreement Number GAAP Generally Accepted Accounting Principles GAGAS Generally Accepted Government Auditing Standards GSA General Services Administration 0MB Office of Management and Budget PMS Department of Health and Human Services Payment Management System . Protected PII Protected Personally Identifiable Information SAM System for Award Management (SAM.gov) SF Standard Form - I 3 USDA United States Department of Agriculture 1.2 Order of Precedence If there is inconsistency between award provisions, AMS will resolve the issue by giving precedence in the following order: 1. Applicable laws and statutes of the United States, including any specific legislative provisions mandated in the statutory authority for the award 2. Code of Federal Regulations 3. AMS General Terms and Conditions for Grants Agreements 4. Agency policy 5. Application documents 1.3 Definitions AMS aligns its grant term definitions to the maximum extent possible with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2. CFR §·200 ). Select definitions referenced in this document are highlighted below: Cost sharing or matching (2 CFR § 200.29 ) means the portion of project costs not paid by Federal funds. Federal award (2 CFR § 200.38 ) means the grant agreement, cooperative agreement, other agreement for assistance, or the cost-reimbursement contract awarded under the Federal Acquisition Regulations setting forth these terms and conditions. Non-Federal entity (2 CFR § 200.69) means a state, local government, Indian tribe, institution of higher education, or nonprofit organization that carries out the award as a recipient or subrecipient. These award terms are applicable to non-Federal entities. Period of Performance (2 CFR § 200.77 ) means the time during which the non-Federal entity may incur new obligations to carry out the work authorized under the Federal award. In addition, the term includes any extension of the end date of the award, such as a no-cost extension authorized by 2 CFR § 200.308, paragraph (d)(2). The period of performance is identified in block 15 of the Grant Agreement Face Sheet (Form AMS-33) and will determine the effective commence date of the award. Personally Identifiable Information (Pl/) (2 CFR § 2.00.79 ) means information that can be used to distinguish or trace an individual's identity, either alone or when combined with other personal or identifying information that is linked or linkable to a specific individual. Non-PII can become PII whenever additional information is made publicly available, in any medium and from any source, that, when combined with other available information, could be used to identify an individual. Program income (2 CFR § 200.80 ) means gross income earned by the non-Federal entity that is directly generated by a supported activity or earned as a result of the Federal award during the period of performance. • Recipient (2 CFR § 200.86 ) means a non-Federal entity that receives a Federal award directly from a Federal awarding Agency to carry out an activity under a Federal program. The term recipient does not include subrecipients. Subaward (2 CFR § 200.92 ) means an award provided by a pass-through entity to a subrecipient for the subrecipient to carry out part of a Federal award received by the pass-through entity. It does not include payments to contractors or to individuals who are beneficiaries of a Federal program. A subaward may be provided through any form of legal agreement, including a contract. Subrecipient (2 CFR § 200.93 ) means a non-Federal entity that receives a subaward from a pass-through entity to carry out part of a Federal program; but does not include an individual that is a beneficiary of such program. Unrecovered indirect cost (2. CFR §_2Q0.30G(c)) means the difference between the amount charged to the Federal award and the amount that could have been charged to the Federal award under the potential recipient's approved negotiated indirect cost rate. 4 2.0 FINANCIAL MANAGEMENT Recipients are required to meet the standards and requirements for financial management systems set forth or referenced in 2 CFR § 200.302 . The adequacy of a recipient's financial management system is integral to their ability to account for grant expenditures and track matching resources (if applicable). The recipient must use Federal funds in a responsible manner and apply adequate internal controls and cash management practices consistent with the requirements outlined in 2 CFR § 200 .303 . Recipients must expend and account for funds under an award in accordance with their own State laws and procedures . Financial management systems and related records, of the grant recipient, and any other entity involved in the grant, must be sufficiently detailed to prepare reports, trace funds, and demonstrate that fund management complies with Federal statutes, regulations, and these general and other program-specific terms and conditions. A recipient's financial management system must include: 1) Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. This identification must include, as applicable: a. The CFDA title and number; b . The Grant Agreement Number/FAIN and Federal fiscal year awarded; c. The name of the Federal Agency; and d. The name of the pass-through entity, if applicable . 2) Accurate, current, and complete disclosure of the financial accounting of each Federal award or program. 3) Records that adequately identify the source and application of funds for Federally funded activities. These records must contain information pertaining to Federal awards, authorizations, obligations, unobligated balances, assets, expenditures, income, and i nterest. Accounting records must be supported by source documentation such as canceled checks, paid bills, payrolls, time and attendance records, contracts, and subaward documents. 4) Effective control over, and accountability for, all funds, property, and other assets . Recipients must adequately safeguard all assets and assure that they are used solely for authorized purposes . S) Comparison of expenditures with budget amounts for each Federal award. 6) Written procedures to implement the requirements of 2 CfR § 200 .305 Payment, which minimize the time elapsing between the transfer of Federal funds to any non-Federal entity and the disbursement of the funds for direct program costs and the proportionate share of any allowable indirect or facilities and administrative costs. 7) Written procedures for determining the allowability of costs in accordance with 2 CFR § 200 Subpart E-Cost Principles and the terms and conditions of this award. A recipient must notify the AMS representative immediately when they discover financial management problems. Deficiencies in the recipient's financial management system, whether reported by the recipient or identified by AMS, may result in AMS i mposing special award conditions, such as a high-risk designation or other requirements for increased monitoring. 2.1 Audit Requirements Recipients (other than Federal agencies and for-profit recipients) are responsible for obtaining audits in accordance with the 2. CFR § 200 Subpart F -Audit Requ irements . These standards require any non-Federal entity that expends $750,000 or more in Federal awards during its fiscal year to have a single or program-specific audit conducted for that year. The audit must meet the standards specified in GAGAS . Recipients must follow a systematic method to ensure timely and appropriate resolution of audit findings and recommendations, whether discovered because of a Federal audit or an audit initiated by the pass-through entity. 5 If applicable, a recipient must submit the most recent Single Audit to AMS 30 calendar days after completion. If a recipient does not submit its Single Audit, it must conduct a Program Specific Audit following GAGAS within 60 calendar days after the end date of its grant agreement. A link to the audit report or an electronic version of the audit report is acceptable. All auditees are also to submit their audit reports directly to the Federal Audit Clearinghouse (FAC). The SF-SAC and reporting package MUST be submitted electronically to FAC at: https:ljbarvester.census .gov/facweb/. Any future updates to the location of the FAC may be found at the 0MB website. 2.2 Cost Sharing or Matching If the grant agreement has specific cost sharing or matching requirements, the recipient must ensure that it complies with the applicable provisions found in 2 CFR § 200.306 . The recipient may use funds or other resources contributed by other non- Federal entities to satisfy the cost sharing or matching requirement. Cost sharing or matching in the form of cash and/or in-kind nonFederal resources must be directly related to the project's objectives. If a recipient volunteers cost sharing above the program's required amount, the total becomes a binding requirement of Federal award outlined in 2. CFR-§ 200.99 . Recipients must maintain documentation identifying: The specific costs or contributions that constitute the cost-sharing or matching; The funding source or contribution; and How the appropriate amount of the contribution was determined for reporting purposes. Recipients do not need to routinely provide documentation to AMS, but the documentation must be retained in the recipient project files and made available upon request. A recipient may use unrecovered indirect costs as part of cost sharing or matching. Recipients cannot use Federal funds or program income to meet cost sharing or matching requirements. The recipient must request prior approval from AMS before the amount of the approved cost share or match provided by the non-Federal entity can change (see 9.9 Cclst Share or Match-Cha nges in the Amount ). 3.0 SUBRECIPIENT MONITORING & MANAGEMENT Recipients are accountable for the performance of subawarded projects and the appropriate expenditure of Federal funds. This includes maintaining the necessary documentation on all subawards and making it available to AMS upon request. Recipients must include subaward activities in all performance and financial reports. In general, the requirements that apply to the award recipient flow down to subrecipients. If the recipient uses subawards, it must enter into a formal written agreement with each subrecipient that addresses the arrangements for meeting the programmatic, administrative, financial, and reporting requirements of the grant, including those necessary to ensure compliance with all applicable Federal regulations and policies. Specifically, the recipient is responsible for including the requirements of the applicable AMS Grants Division General Terms and Conditions in its subaward agreements as well as the provisions required under 2 CFR § 200.331 . If a subrecipient fails to comply with the terms and conditions of this award, the recipient may impose special award conditions, including one or more of the corrective actions outlined in 2 CFR ·§ 200.338 Remedies for Noncompliance. Please see Appendix A to 2 CFR § 170 for additional reporting requirements concerning subawards. 4.0 PAYMENTS 4.1 Types of Payments Advance -An advance payment is a payment that AMS or a pass-through entity makes before funds are disbursed for program purposes. Requests for advance payments must be limited to amounts needed to meet actual and immediate cash needs and must be accompanied with a written justification. 6 Reimbursements -Reimbursements are transfers of Federal funds to recip ients, after the recipient pays out funds for approved project activities. 4.2 How to Request Payments AMS grant recipients are required to request payments electronically through the ezFedGrants system. Recipients not already enrolled must register in the system to request payments . Instructions for requesting a payment can be found in the ezFedGrants system. AMS Grant Program Worksheet If required by the grant agreement, an A M S Gran t Programs Wo r ksheet must be attached in ezFedGrants when submitting a payment. The AMS-33 Grant Agreement Award Face Sheet provisions section will indicate if it is required to submit an AMS Grant Program Worksheet. Receipt of Request by AMS AMS will confirm receipt of the payment request, review the request, and communicate with the appropriate recipient representatives. Upon approval, payments will be made via EFT to the bank account specified by the recip ient in SA M .go v . If the bank information is inco rrect or changes at any time during the grant per iod. it is tl:le recipien t's responsibility to update their SA M .gov information and notify AM S to ensure oroper and timely deposit of funds. 4.3 Payment Source Documentation and Other Requirements Recipients must collect and maintain source documentation associated with costs incurred as a result of the Federal award and make it available to AMS upon request. Source documentation includes, but is not limited to receipts, canceled checks, paid bills, payrolls, time and attendance records, contracts, invoices, and subaward documents. If recipients pay a portion of the total amount indicated on the source document, it must appropriately identify the specific expenses and total amount charged to the grant. 4.4 Timely Drawdown and Use of Grant Funds AMS may reduce grant agreement funds without further cause if the recipient does not drawdown funds within the first year of the grant period, and at reasonable intervals thereafter. 5.0 INTEREST EARNED AND ADVANCES OF GRANTS FUNDS In accordance with 2 CFR § 20 0.30 5 {b){9), the recipient may retain interest earned on Federal payments deposited in interest- bearing accounts up to $500 per year for administrative expenses . Any additional interest earned must be remitted annually to the Federal PMS, which handles payments to the Treasury. The recipient must remit the interest electronically using either an ACH network or a Fedwire Funds Service payment. Remittances must include perti nent information about the payee and nature of payment in the memo area (often referred to as "addenda records" by Financial Institutions) which will assist in the t imely posting of interest earned on Federal funds. Since the payment does not originate from PMS, the recipient must include pertinent AMS information. Submit the remittance using one of the following example formats: ACH Return Example: Routing Number: Account Number: Bank Name and Location: 051036706 303000 Credit Gateway-ACH Receiver St. Paul, MN Fedwire Returns Example : (Please note that the organization initiating payment is likely to incur a charge from your Financial Institution for this type of payment) Routing Number: 021030004 Account Number: 75010501 7 Bank Name and Location: Federal Reserve Bank Treasurer NYC/Funds Transfer Division New York, NY If a recipient does not have the ability to remit funds electronically, it should instead mail a check to the U.S Treasury approved lockbox, made payable to: HHS Program Support Center P.O. Box 530231 Atlanta, GA 30353-0231 Allow 4-6 weeks for check payments by to be applied to the appropriate PMS account. Any additional information/instructions may be found on the PMS Website at ,https://www.dpm.psc.gov/. 6.0 PROGRAM INCOME Unless otherwise stated in the AMS-33 Award Face Sheet provisions section, AMS authorizes the use of program income through the additive method (2 CFR § 200.307(e)(2)). Any program income generated during the grant period must be used to further the objectives of the project. All program income must be recorded on the Federal Financial Report (SF-425) for the period in which it was earned. Recipients are not accountable for program income earned after the grant period. Program income includes, but is not limited to: Income from fees for services performed; The sale of commodities or items fabricated under an award (this includes items sold at cost if the cost of producing the item was funded in whole or partially with grant funds); and Registration fees for conferences, wor-kshops, etc. Royalties or equivalent income earned from patents, inventions, trademarks, and copyrighted works is not subject to this section. 7.0 PROCUREMENTS Recipients may acquire commercially available goods and services in connection with a project. In doing so, the recipient must use its own documented procurement procedures which may reflect applicable State, local, and tribal laws and regulations, provided that the procurements conform to applicable Federal law and the standards found at 2 CFR § 200.318 through 2 CFR § 200.326. State recipients must follow the same policies and procedures the State uses for procurements from non-Federal funds. The State will comply with 2 CFR § 200.322 and ensure that every purchase order or other contract includes applicable provisions described in Appendix II of 2 CFR § 200 . All other non-Federal recipients must follow 2 CFR § 200.318 through § 200 .326.. The requirements of the Federal award also apply to any subcontract. The recipient is responsible for ensuring that all of its contracts made in connection with the AMS project contain the applicable provisions described in ~ppendix II of 2 CFR § 200 . 8.0 ALLOWABLE COST AND ACTIVITIES 8.1 Indirect Costs Indirect costs as defined at (2 CFR § 200.56) represent the expenses of doing business that are not readily-identified with a particular grant, contract, project function or activity, but are necessary for the general operation of the organization and the conduct of activities it performs. Refer to 2 CFR §§ 200.413 and 414 for additional information on determining if costs charged to the award are direct or indirect. Any non-Federal entity that has never received a negotiated indirect cost rate, except for those non-Federal entities described In Appen d ix V il to Part 200-States and Local Government and Indi an Tri be Indirect Cost Proposals. paragraph O.1 .b , may.el ect 8 to charge a de mini mis rate of 10 percent of Modified Total Direct Costs (MTDC) which may be used indefinitely. Costs must be consistently charged as either indirect or .direct costs but may not be double charged or inconsistently charged as both (2 CFR § 200.403 ). If chosen, this methodology, once elected, must be used consistently for all Federal awards until such time when a recipient chooses to negotiate for a rate, which the recipient may apply to do at any time. All applicants who elect to charge a de mini mis rate of 10 percent must use the MTDC as the base. MTDC is defined in 2-tFR § 200.68 as all direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs, and the portion of each subaward in excess of $25,000. Other items may be excluded only when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant Agency for indirect costs. If a non-Federal entity chooses to negotiate for a rate, the non-Federal entity must contact its cognizant Agency for indirect costs. Federally Negotiated Indirect Cost Rates Unless otherwise required by statute or regulation, AMS will accept Federally negotiated rates. These requirements flow down through the pass-through entities affecting subawards. 8.2 Allowable and Unallowable Costs and Activities The following table summarizes allowable and unallowable costs in common categories for AMS grant programs. This section is not intended to be all-inclusive. The recipient should consult the Federal Cost Principles (Subpart E.-Cost Pri nciples of ,2 CFR § 200 ) for the complete explanation of the allowability of costs. If recipients have questions concerning the allowability of costs after reviewing this section, they should contact their AMS representative. Note: Allowable costs listed below may also be cost shared or brought as part of the required match. Unallowable costs cannot be brought as a match. Affected Cost Category AMS Grant Description, Guidance and Exceptions Program(s) Advisory Councils ALL Unallowable for costs incurred by advisory councils or committees. Alcoholic Beverages ALL with exceptions Unallowable for alcoholic beverages unless the cost is associated with fulfilling the purpose of the grant program, and either approved in the application or with prior written approval. 9 Buildings and Land -All Unallowable for the acquisition of buildings, facilities, or land or to Construction make additions, improvements, modifications, replacements, rearrangements, reinstallations, renovations or alterations of an existing building or facility (including site grading and improvement, and architecture fees). This also includes construction and construction- related materials, which may include, but are not limited to the purchase of building materials such as wood, nails, concrete, asphalt, roofing, gravel, sand, paint, insulation, drywall, or plumbing. Allowable for rental costs of land and building space. However, lease agreements to own (i.e., lease-to-own or rent-to-own) are not allowable. The lease or rental agreement must terminate at the end of the grant cycle. A building is any permanent structure designed or intended for support, enclosure, shelter or protection of people, animals or property, and having a permanent roof supported by columns or walls. Conferences ALL with exceptions Allowable if the conference fulfills the purpose of a grant program's legislated purpose. Allowable conference costs paid by the non-Federal recipient as a sponsor or host of the conference may include rental of facilities, speakers' fees, costs of meals (see Meals for restrictions), and refreshments, local transportation, and other items incidental to such conferences with the exception of entertainment costs that are unallowable. If registration fees are collected, the recipient must report fees as program income (see Program lhcome ). Allowable to rent a building or room for training; however, where appropriate, AMS encourages the use of technologies such as webinars, teleconferencing, or videoconferencing as an alternative to renting a building or a room. The recipient should use the most cost-effective facilities, such as State government conference rooms, if renting a building or a room is necessary. Contingency Provisions ALL Unallowable for miscellaneous and similar rainy-day funds for events the occurrence of which cannot be foretold with certainty as to the time or intensity, or with an assurance of their happening. Unallowable for working capital for activities/items not already in place. Contractual/Consultant Costs All Allowable subject to limitations. Contractual/consultant costs are (Professional Services) expenses associated with purchasing goods and/or procuring services performed by an individual or organization other than the recipient in the form of a procurement relationship. Allowable for contractor/consultant employee rates that do not exceed the salary of a GS-15 step 10 Federal employee in the area (for more information, visit the OPM website) and travel that is reasonable and necessary. This does not include fringe benefits, indirect costs, or other expenses. If rates exceed this amount, the recipient is required to justify the allowability of the cost aligning with 2 CFR §§ 200317-326. 10 Contributions or Donations ALL Unallawable for contributions or donations, including cash, property, and services, made by the recipient to other entities. A non-Federal entity using grant funds to purchase food or services to donate to other entities and/or individuals is unallowable. Electronic Benefit Transfer ALL Unallowable for the purchase/lease of Supplemental Nutrition (EBT) Machines Assistance Program (SNAP) EBT equipment. Entertainment Costs ALL with exceptions Unallowable for entertainment costs including amusement, diversion, and social activities and any costs directly associated with such costs (such as bands, orchestras, dance groups, tickets to shows, meals, lodging, rentals, transportation, and gratuities). Entertainment costs are defined in 2 CFR § 200.43 8. Allowable when provided in the application documents and either in the approved budget or with prior written approval; however, cost must be reasonable and not represent a significant amount of the project costs. Equipment ALL Unallowable for acquisition costs of general purpose equipment or lease agreements to own (i.e., lease-to-own or rent-to-own). Allowable for rental costs of general purpose equipment. Vehicles may be leased but not purchased. The lease or rental agreement must terminate at the end of the grant cycle . For vehicle and equipment leases or rentals with an acquisition cost that equals or exceeds $5,000, rates should be in light of factors such as: rental costs of comparable vehicles and equipment, if any; market conditions in the area; alternatives available; and the type, life expectancy, condition, and value of the vehicle or equipment leased . Allowable for acquisition costs and rental costs of special purpose equipment provided the following criteria is met: 1) Necessary for the research, scientific, or other technical activities of the grant agreement; 2) Not otherwise reasonably available and accessible; 3) The type of equipment is normally charged as a direct cost by the organization; 4) Acquired in accordance with organizational practices; 5) Must be used solely to meet the legislative purpose of the grant program and objectives of the grant agreement; 6) More than one single commercial organization, commercial product, or individual must benefit from the use of the equipment; 11 7) Must not use special purpose equipment acquired with grant funds to provide services for a fee to compete unfairly with private companies that provide equivalent services; and 8) Equipment is subject to the full range of acquisition, use, management, and disposition requirements under 2 CFR § 200 .3 13 as applicable. Definitions Equipment is defined as tangible personal property (including information technology systems) having a useful life of more than one year and a per-unit acquisition cost that equals or exceeds the lesser of the capitalization level established by the non-Federal entity for financial statement purposes, or $5,000. Acquisition cost means the cost of the asset including the cost to prepare the asset for its intended use. Acquisition cost for equipment is the net invoice price of the equipment, including the cost of any modifications, attachments, accessories, or auxiliary apparatus necessary to make it usable for its acquired purpose. General Purpose Equipment means equipment that is not limited to technical activities. Examples include office equipment and furnishings, modular offices, telephone networks, information technology equipment and systems, air conditioning equipment, reproduction and printing equipment, and motor vehicles. Special Purpose Equipment is equipment used only for research, scientific, or technical activities. Equipment -Information All Unallowable for information technology systems having a useful life of Technology Systems more than one year and a per-unit acquisition cost that equals or exceeds the lesser of the capitalization level established in accordance with GAAP by the recipient for financial statement purposes or $5,000. Acquisition costs for software includes those development costs capitalized in accordance with GAAP. Information technology systems include computing devices, ancillary equipment, software, firmware, and similar procedures, services (including support services), and related resources. Computing devices means machines used to acquire, store, analyze, process, and publish data and other information electronically, including accessories (or "peripherals") for printing, transmitting and receiving, or storing electronic information. Examples of unallowable information technology systems include service contracts, operating systems, . printers, and computers that have an acquisition cost of $5,000 or more. Allowable for website development, mobile apps, etc., that are not considered to be information technology systems, but rather social media applications. Farm, Gardening, and All with exceptions Allowable for farm, gardening, and production activities, materials, Production Activities and supplies, and other related costs including but not limited to soil, seeds, Supplies shovels, gardening tools, greenhouses, and hoop houses unless it is explicitly 1;1rohibited by the grant program application documents. 12 Fines, Penalties, Damages and All Unal/owable for costs resulting from violations of, alleged violations of, Other Settlements or failure to comply with, Federal, state, tribal, local or foreign laws and regulations . Fixed Amount Subawards All with exceptions Unallowable for cost related to fixed amounts subawards. Allowable to meet the requirements of the sponsored program (noncompetitive) and with prior written approval. A pass-through entity may provide subawards based on fixed amounts up to the Simplified Acquisition Threshold , prov ided that the subawards meet the requirements for fixed amount awards in 2 CFR § 200.201. Fundraising and Investment All Unallowable for organized fund raising, including financial campaigns, Management Costs solicitation of gifts and bequests, and similar expenses incurred to raise capital or obtain contributions, regardless of the purpose for which the funds will be used. This includes salaries of personnel involved in activities to raise capital. General Costs of Government All Unallowable for: 1) Salaries and expenses of the Office of the Governor of a State or the chief executive of a local government or the chief executive of an Indian tribe; 2) Salaries and other expenses of a State legislature, tribal council, or similar local governmental body, such as a county supervisor, city council, school board, etc., whether incurred for purposes of legislation or executive direction; 3) Costs of the judicial branch of a government; 4) Costs of prosecutorial activities unless treated as a direct cost to a specific program if authorized by statute or regulation (however, this does not preclude the allowability of other legal activities of the Attorney General as described in § 200.435 Defense and i;irosecution of criminal _and civil Qroceed !n~. claims. aQQeals and Qateot idfl:ingements); and 5) Costs of other general types of government services normally provided to the general public, such as fire and police, unless provided for as a direct cost under a program statute or regulation. Goods or Services for All Unallowable for costs of goods or services for personal use of the Personal Use recip ient's employees regardless of whether the cost is reported as taxable income to the employees . 13 Indirect Costs -Unrecovered ALL with exceptions Unallowable for unrecovered indirect costs. Allowable for projects with match requirements to use unrecovered indirect costs as part of cost sharing or matching. Un recovered indirect cost means the difference between the amount charged to the Federal award and the amount that could have been charged to the Federal award under the potential recipient's approved negotiated indirect cost rate. Insurance and ALL Allowable as indirect costs for insurance and indemnification . Indemnification Lobbying ALL Unallowable as defined in 2 CFR § 200.450 . Meals ALL Unallowable for business meals when individuals decide to go to lunch or dinner together when no need exists for continuity of a meeting. Such activity is considered an entertainment cost. Unallowable for conference attendee breakfasts. It is expected attendees will have adequate time to obtain this meal on their own before a conference begins. Unallowable for meal costs that duplicate a meeting participant's per diem or subsistence allowances. Allowable for lunch or dinner meals if the costs are reasonable and a justification is provided that such activity maintains the continuity of the meeting, and to do otherwise will impose arduous conditions on the meeting participants. Allowable for meals consumed while in official travel status. They are considered per diem expenses and should be reimbursed in accordance with the organization's established written travel policies. Memberships, Subscriptions, ALL Unallowable for costs of membership in any civic or community and Professional Activity organization. Costs Allowable for costs of membership in business, technical, and professional organizations. Organization Costs ALL Unallowable for costs of investment counsel and staff and similar expenses incurred to enhance income from investments. Allowable with prior approval for organization costs per 2 CFR § 200.455 . Participant Support Costs ALL Allowable for such items as stipends or subsistence allowances, and registration fees paid to or on behalf of participants or trainees (but not employees) in connection with approved conferences, training projects, surveys, and focus groups. Political Activities ALL Unallowable for development or participation in political activities in accordance with provisions of the Hatch Act (5 U.S.C.§§ 1501--1508 and §§ 7324-7326 ). 14 Pre-Award Costs ALL Allowable if such costs are necessary for efficient and timely performance of the project's scope of work. Such costs are allowable only to the extent that they would have been allowable if incurred after the date of the Federal award. A recipient may incur pre-award costs 90 calendar days before the award. Expenses more than 90 calendar days pre-award require prior approval. These costs and associated activities must be included in the recipient's project narrative and budget justification. All costs incurred before the award are at the potential recipient's risk. The incurrence of pre-award costs in anticipation of an award imposes no obligation on AMS to award funds for such costs. Printing and Publications ALL Allowable to pay the cost of preparing informational leaflets, reports, manuals, and publications relating to the project; however, the printing of hard copies is discouraged given the prevalence of electronic/virtual publication means. Rearrangement and ALL Allowable as indirect costs incurred for ordinary and normal Reconversion Costs rearrangement and alteration of facilities. Allowable as direct costs with prior approval for special arrangements and alterations costs incurred specifically for the award. Rearrangement and reconversion costs are those incurred in restoring or rehabilitating the non-Federal entity's facilities to approximately the same condition existing immediately before the start of the grant agreement, less costs related to normal wear and tear. Salaries and Wages ALL Allowable as part of employee compensation for personnel services in proportion to the amount of time or effort an employee devotes to the grant-supported project or program during the period of performance under the Federal award, including salaries, wages, and fringe benefits. Such costs must be incurred under formally established policies of the organization, be consistently applied, be reasonable for the services rendered, and be supported with adequate documentation. Salary and wage amounts charged to grant-supported projects or programs for personal services must be based on an adequate payroll distribution system that documents such distribution in accordance with generally accepted practices of like organizations. Standards for payroll distribution systems are contained in the applicable cost principles (other than those for for-profit organizations). Unallowable for salaries, wages and fringe benefits for project staff who devote time and effort to activities that do not meet the legislated purpose of the grant program. 15 Selling and Marketing Costs -ALL Unallowable for costs designed solely to promote the image of an Promotion of an organization, a general logo, or a general brand. Organization's Image, Logo, . Promotional items could say "Buy STATE/COUNTY Grown or Brand Name Apples" but not "XYZ Grown", which promotes XYZ generically. . A promotional campaign to increase producer sales of "STATE/COUNTY Grown fruits and vegetables" is acceptable while increasing membership in "STATE/COUNTY Grown" generally is not. Selling and Marketing Costs -ALL Unallowable for costs for promotion of specific venues, tradeshows, Promotion of Venues that do events, meetings, programs, conventions, symposia, seminars, etc. that not Align with Grant Program do not align with the legislated purpose of the grant program. Purpose Selling and Marketing Costs -ALL with exceptions Unallowable for promotional items, swag, gifts, prizes, memorabilia, Promotional Items, Gifts, and souvenirs. Prizes, etc. Allowable with conditions to meet the requirements of the sponsored agreement, in the approved application or with prior approval for marketing activities directly related to the funded project. Promotional items include point-of-sale materials, promotional kits, signs or streamers, automobile stickers, table tents, and place mats, or promotional items of a personal nature (e.g., t-shirt, hats, etc.). Selling and Marketing Costs -ALL Unallowable for costs of the value of coupon/incentive redemptions or Coupons, Incentives or Other price discounts (e.g., the $5.00 value for a $5.00 clip-out coupon). Price Discounts Allowable for costs associated with printing, distribution, or promotion of coupons/tokens or price discounts (e.g., a print advertisement that contains a clip-out coupon) as long as they benefit more than a single program or organization. Selling and Marketing Costs -ALL with exceptions Unallowable for purchasing food for displays, tastings, and cooking Food for Displays, Tastings, demonstrations except for projects that have a programmatic purpose Cooking Demonstrations and are authorized either in the approved application or with prior written approval. Selling and Marketing Costs -ALL with exceptions Unallowable for costs designed solely to promote the image of an General Marketing Costs organization, general logo, or general brand. Allowable for costs designed to promote products that align with the purpose of the grant program. Selling and Marketing Costs -ALL Unallowable for costs associated with sponsorships. A sponsorship is a Sponsorships form of advertising in which an organization uses grant funds to have its name and/or logo associated with certain events and where the organization does not necessarily know how the funds associated with sponsorship costs will be used. These costs also benefit only the organization offering funding, limiting the beneficiaries to the sponsor organization. 16 Selling and Marketing Costs-All Unallowable for costs associated with trade show attendance/displays, Use of Meeting Rooms, meeting room reservations, and/or any other displays, demonstrations, Space, Exhibits that do not exhibits, or rental of space where activities do not specifically align with Align with Grant Program the purpose of the grant program. See Conferences for more Purpose information. Supplies and Materials, All Allowable for costs incurred for materials, supplies, and fabricated Including Costs of Computing parts necessary to carry out a Federal award. Purchased materials and Devices supplies must be charged at their actual prices, net of applicable credits. Withdrawals from general stores or stockrooms should be charged at their actual net cost under any recognized method of pricing inventory withdrawals, consistently applied. Incoming transportation charges are a proper part of materials and supplies costs. Only materials and supplies used for the performance of a Federal award may be charged as direct costs. A computing device is a supply if the acquisition cost is less than the lesser of the capitalization level established by the recipient for financial statement purposes or $5,000, regardless of the length of its useful life. In the specific case of computing devices, charging as direct cost is allowable for devices that are essential and allocable, but not solely dedicated, to the performance of a Federal award. Where Federally donated or furnished materials are used in performing the Federal award, such materials will be used without charge. Training All Allowable when the training is required to meet the objectives of the project or program, including training that is related to Federal grants management. Travel -Domestic and All Foreign Allowable for travel, with prior approval and when costs are limited to those allowed by formal organizational policy and the purpose aligns with the legislated purpose of the program. The allowable travel cost of recipients that do not have formal travel policies and for-profit entities may not exceed those established by the Federal Travel Regulation, issued by Genera l Services Ad mlnlstr.atio o (GSA), including the maximum per diem and subsistence rates prescribed in those regulations. If a recipient does not have a formal travel policy, those regulations will be used to determine the amount that may be charged for travel costs. 9.0 CHANGES REQUIRING PRIOR WRITTEN APPROVAL The recipient may need to make modifications, such as budget, personnel or contracts, to accomplish the objectives during the period of performance. Recipients are required to request prior written approval for the following items from AMS in advance of a change or obligation of funds. Requests for prior written approval must be submitted by the recipient project coordinator and signed by the AOR, if applicable. Every request for a prior written approval must include the following information: 1. Grant agreement number; 2. Project title; 3. Name of the recipient organization; and 4. Project point of contact name. 17 AMS will confirm receipt, review the request, and communicate with the recipient project coordinator. The recipient project coordinator may revise the prior approval request to address any questions or concerns. Once accepted, AMS will email the recipient project coordinator with the acceptance of the request. 9.1 Change in Key Personnel/Time Devoted to the Project Prior approval is required for changes in key personnel or if key personnel disengages from the project for a period of more than 3 months, reduces the time devoted to managing the project by 25 percent (25%) or more, or severs his/her connection to the activities of the grant agreement. Key personnel include the recipient project coordinator or AOR listed in the AMS-33 as well as other key project contributors. The request must include: 1. The name of the individual(s) being replaced and the new individual name and contact information; 2. The qualifications (CV or resume) of the new individual(s); 3. The capacity in which the new individual will serve; 4. Written notification from the new individual signifying his/her willingness to serve on the project; 5. The effective date . A change in key personnel may affect the project narrative, budget, or timeline. If it does, the recipient must include this in their request by following the applicable guidance in this section . 9.2 Change in Scope or Objectives Prior approval is required to modify scope or objective of the project or program, including adding new project(s) or discontinuing project(s) (if applicable). Prior written approval is required even if there is no associated budget revision that would require prior approval. The recipient must use the same format/template to present this information that was used in the approved application with the changes noted. The request must include: 1. A description of the change in the scope or objective including what activities the new work replaces; 2. A revised narrative for the relevant portion of the approved project; and 3. The proposed dates of implementation (MM/YYYY -MM/YYYY). A change in scope or objectives may affect the project narrative, outcome measures, budget (Federal and matching funds), or timeline. If it does, the recipient must make revisions and include this in their request by following the applicable guidance in this section. 9.3 One-Time Extension If the grant activities cannot be completed within the grant agreement's period of performance, the recipient must request written approval to extend the grant agreement's end date (no-cost extension of time) prior to the grant's expiration. The recipient may request a one-time extension of the period of performance of up to 12 months from the end date of the period of performance (block 15 of AMS-33 Grant Agreement Face Sheet) unless specific program requirements prohibit the extension beyond the maximum allowed period of performance. The request must be submitted no later than 10 days prior to the ending date of the grant agreement. The request must include: 1. The length of additional time requested, and the new ending date requested; 2. A justification for the extension; 3. A summary of progress to date in terms of the project timeline and objectives. The summary may reference the most recent Performance Report and indicate how circumstances have changed since then; 4. An estimate of the amount of remaining funds, and if applicable, the amount of matching resources yet to be expended, and a description of how they will be used in the remaining time; and 5. A new timetable for completing the project. Unutilized or unobligated funds at the end of the award is not in itself justifiable to receive a no-cost time extension. AMS will approval extensions on a case-by-case basis, based on the written justification provided. 18 9.4 Budget Change Prior approval is required for a budget change if the Federal share of its grant agreement exceeds the Simplified Acquisition Threshold as stated in .2 Ci=R § 200,88 , (see block 16 on the AMS-33 Grant Agreement Face Sheet for the Federal award amount) and the cumulative amount of a transfer among budgeted direct cost categories or between individual subawards exceeds or is expected to exceed 10 percent of the total Federal award budget as last approved by AMS. If the Federal share of the Federal award is less than the Simplified Acquisition Threshold, recipients do not need to request prior approval for budget changes. The request must include: 1. A justification for the change; and 2. A description of the requested change that includes: a. The proposed budget change, b. The last approved budget, and c. An updated budget for the affected cost categories. 9.5 Pre-Award Costs As defined in 2 CFR §200.458 , pre-award costs are costs incurred prior to the effective date of the Federal award directly pursuant to the negotiation and in anticipation of the Federal award where such costs are necessary for efficient and timely performance of the scope of work. Refer to Pre-Award Costs for more information. The request must include: 1. A brief description of the pre-award activities completed; and 2. An updated budget, using the same format for presenting the budget information that was used in the approved application, clearly indicating the associated dollar amount of award funds and/or the value of any matching resources expended during the pre-award period. 9.6 Contracting or Subawarding for Activities Central to the Award's Purpose(s) Prior approval is required for a change that involves subawarding, transferring, or contracting out of any work under a Federal award or executing a fixed amount subaward. This provision does not apply to the acquisition of supplies, materials, equipment, or general support services. The request must include: 1. A brief description of and justification for the change; 2. A brief description of the non-Federal entity's qualifications, and how their work will fulfill the project goals; 3. If a modification to the budget is required: a. A description of the proposed modification, b. The last approved budget, and c. An updated budget for the affected cost categories using the same format as was used in the approved application with changes noted; and 4. If the third party was not identified in the original application, a description of the third party's qualifications, how its work will fulfill the project goals, and an itemized budget (if applicable) showing cost categories with appropriate justification. 9. 7 Specific Allowable Costs Prior Approvals Prior approval is required for allowable costs that were not included in the approved project and/or the latest budget. See 8.2 Allowable and Unallowable Costs and Activities for more information on these costs. The request must include: A description of and justification for the cost including how it furthers the objectives of the project; and If applicable, a comparison between the most recent budget and the proposed budget as well as an updated budget narrative of the affected cost categories. Recipients must use the same format for presenting the budget information that was used in the approved application with changes noted. 19 9.8 Changes to Recipient Name or Address If the recipient is contemplating changing the name or address of the recipient organization, the recipient is advised to contact its AMS representative for additional information on how this action may affect the award. This is a change to the recipient organization in block 12, "Recipient" on the fully executed AMS-33 Grant Agreement Face Sheet. In this case, the DUNS number would remain the same, while only the organization name or address would change. Recipients are responsible for properly updating their registration within both DUNS and SAM.gov . The recipient must inform AMS of any pending changes in its legal status, divesture, or bankruptcy . The request must include the new name or address of the recipient organization and the effective date of change. NOTE: A request to have a new recipient organization (that has a new DUNS number) assume responsibility for the project is not allowable. 9.9 Cost Share or Match -Changes in the Amount If the award has cost sharing or matching requirements, the recipient must request prior written approval to change the amount of the approved cost share or match or to change the amount of approved cost sharing or match provided by a project partner or by a subrecipient. The request must include: 1. A justification for the change; 2. Cash Commitment per year (if applicable) and Total Cash Match 3. In-kind Contribution per year (if applicable) and Total In-kind Match. Break down items into categories as applicable: a. Salaries (employee name, title, duties, pay rate/hr., amount matched per year) b. Items/Activities (fair market value per unit, how value determined (provide documentation), and amount matched per year) 4. A description of how the required match will be met including the source of the match, the amount of the match to be provided, and the composition of the match. Recipient must use the same format for presenting the match verification that was used in the approved application; and 5. A description of the change that includes a comparison between the latest budget and the proposed budget as well as an updated budget narrative of the affected cost categories to demonstrate that the overall required match will be met. The recipient must use the same form/format for presenting the budget information that was used in the approved application. The recipient may use the Suggested Match Verification Templa t e Letter as a starting point for developing its change request. Please add any additional information requested above to the letter. 10.0 PERFORMANCE AND FINANCIAL REPORTS AMS requires submission of interim and final reports to demonstrate the progress made toward the completion of project goals, objectives, and outcomes as well as the grant agreement's overall financial status. Performance reports must be formatted and submitted using the approved templates or guidance. Recipients are required to submit an Federal Financial Report (SF-425) with each performance report to account for their financial expenditures during that reporting period. All performance and financial reports must be submitted through ezFedGrants. The required report template and the SF-425 Federal Financial Report, along with instructions and a sample financial report, can be found at www .ams..usda.gov/grants . Click on the applicable grant program website, and then click on "How to Administer the Award" in the left menu bar. If a grant agreement must be extended beyond the performance period stated on the Award Agreement (AMS-33), additional reports may be necessary depending on the length of the extension. If performance or financial reports are prepared by a third party and/or subrecipient, it is the recipient AOR responsibility to review and approve the report before forwarding it to AMS. 20 10.1 Interim Performance and Financial Reports The SF-425 and interim performance report are due annually no later than 90 calendar days after each annual performance reporting period (block 15 of the AMS-33 Grant Agreement Face Sheet) end date. If the recipient completes the grant early, they may submit a Final Performance Report in lieu of an interim performance report . 10.2 Final Performance and Financial Reports A final performance report and SF-42S are required to be submitted no later than 90 calendar days after the performance period expiration date (block 15 of the AMS-33 Grant Agreement Award Face Sheet). 10.3 Review of Performance and Financial Reports AMS will confirm receipt of performance and financial reports. These reports will be reviewed to ensure completeness and progress toward meeting the project goals and measurable outcomes as well as compliance with Federal assistance regulations. AMS will notify the recipient project coordinator if additional information is required. The recipient project coordinator is respons i ble for adequately addressing all comments and questions prior to sending the revised report(s). 10.4 Public Access to Performance Reports and Information on Report Content Accompl ishments, procedures, and other benefits resulting from the Federally funded project may be made available publicly through online posting, as well as through Free do m o f Infor mation Act (FOI A } requests. The AMS website is the primary means to distri bute results of each Federal award, although additional proposal/project information, within the regulations, will be released if requested under the FOIA. Requested information may be made public, so AMS encourages the recipient to minimize grammatical and spelling errors in submitted forms and materials. AMS will not edit the reports beyond ensuring that the content is complete . 10.5 Disparaging Language and Protected PII Recipients are prohibited from using AMS grant funds to conduct any activity that is false, misleading, or disparaging toward agricultural commodities or products or to disparage the mission, goals, and/or actions of another organization or individual. Reports submitted to AMS must avoid use of Protected PII , including use of an individual's first name or first initial and last name in combination with any one or more of types of information, including, but not limited to, social security number, passport number, credit card numbers, clearances, bank numbers, biometrics, date and place of birth, mother's maiden name, criminal, medical and financial records, educational transcripts, etc . Personal contact information included in performance reports should be limited to the recipient project coordinator's name, and e-mail address, as well as organization name, physical address , and telephone number. 10.6 Overdue Reports Events may occur that prevents you from submitting reports within the scheduled performance reporting dates. In such cases, the recipient must inform AMS as soon as it is aware of problems, delays, or adverse conditions, preferably no less than 14 calendar days before the due date. This disclosure must include a statement of the action taken, or contemplated, and any assistance needed to resolve the situation. If the late report submissions are due to issues of noncompliance, the enforcement actions described in section 17.0 Remedies fo r No nco m pliance may be taken. 11.0 ACKNOWLEDGEMENT OF SUPPORT Recipients are strongly encouraged to acknowledge USDA-AMS support through oral or written presentation. If the recipient chooses to add an acknowledgement of support, it must read as follows: Funding for [Project or Publication] was made possible by the U.S. Department of Agriculture's {USDA) Agricultural 21 Marketing Service through grant [Insert Agreement Number]. Its contents are solely the responsibility of the authors and do not necessarily represent the official views of the USDA. Note that USDA symbols or logos are only intended for the official use of the USDA . They are expressly excluded from use to imply endorsement of a commercial product or service. The symbol or logo may not be used by anyone outside of USDA without permission. Recipients are strongly encouraged to share with AMS success stories, videos, pictures and other materials that highlight outcomes and accomplishment of their grant agreement. AMS will coordinate any public announcement, press release, press i nterviews, web or-social posting with the AMS Public Affair's Office. 12.0 PROPERTY MANAGEMENT The title to equipment and supplies acquired by the recipient under the award will vest, upon acquisition, in the recipient . Recipients must provide the equivalent insurance coverage for equipment acquired with Federal funds. Recipients are expected to maintain property records that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. This is in addition to the other requirements of use, management, and disposal of equipment and supplies acquired under a grant in accordance with 2 CFR §§ 200.313 and 200.314 . 12.1 Disposition of Equipment and Supplies If the equipment has a per-unit fair market value of less than $5 ,000, and it is no longer needed for the original project or program or for other activities currently or previously supported by a Federal awarding agency , the recipient may retain, sell, or dispose of equipment with no further obligation to AMS. If the equipment has a per-unit fa i r market value of $5,000 or more, and it is no longer needed for the original project or program or for other activities currently or previously supported by a Federal awarding agency, the recipient may retain the equipment and supplies, or they may be sold. If there is a residual inventory of unused supplies exceeding $5,000 in total aggregate value upon termination or completion of the project or program and the supplies are not needed for any other Federal award, the non-Federal entity must retain the supplies for use on other activities or sell them, but must, in either case, compensate the Federal Government for its share. In any of these cases, the recipient acting on its own behalf or as the pass-through entity must complete a: Tangible Personal Property Report Disposition Request/Report (SF-428-C ) durit:'lg the period of performance or Tangible Personal Property Final Report (SF-428-B) at the grantagreement1s closeout. Email this report to AMS as a written disposition request/report. A sample Tangible Personal Property Final Report can be found on the applicable grant program's website. Go to https://www.ams.u sd a,gov/se rvices/grants , click on the applicable grant program website, and then click on "How to Administer the Award" in the left menu bar. AMS will review the request and provide disposition instructions for the equipment and/or supplies . The disposition instructions will notify the recipient that AMS is entitled to an amount calculated as follows: AMS Amount = Current Market value or proceeds from sale of the equipment/supplies X Percentage of AMS participation in the cost of the original purchase If the equipment and/or supplies are sold, the recipient is permitted to deduct and retain from the Federal share $500 or 10 percent of the proceeds, whichever is less, for its sale and handling expenses. 22 You agree to comply with the following Federal statutes and regulations as applicable to your award. These include but are not limited to the ones listed below. The full text of Code Federal Regulations references can be found at: eCF RaCode of Federa l Regulations . Federal statutes and regulations found on the SF-424B "Assurances -Non-Construction Programs." 2 CFR § 25 -System for Award Management and Universal Identifier Requirements 2 CFR § 170 -Reporting Subaward and Executive Compensation Information 2 CFR § 175 -Award Term for Trafficking in Persons 2 CFR §§ 180 and 4 17 -0MB Guidelines to Agencies on Government-Wide Debarment and Suspension {Nonprocurement) and USDA Nonprocurement Debarment and Suspension 2 CFR § 182 -Governmentwide Requirements for Drug-Free Workplace (Financial Assistance) 2 CFR § 200 -Uniform Administrative Requirements, Cast Principles, and Audit Requirements for Federal Awards 2 CFR § 400 -Uniform Administrati ve Requirements, Cost Principles, and Audit Requ irements for Federal Awards 2 CFR § 415 -General Program Administrative Regulations 2 CFR § 416 -General Program Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments 2 CFR § 418 -New Restrictions on Lobbying 2 CFR § 421-Requirements for Drug -Free Workplace (Financial Assistance) 2 CFR § 422 -Research Institutions Conducting USDA-Funded Extramural Research; Research Misconduct 7 CfR § 1, subpart A -Official Records {Freedom of Information Act) 7 CFR § l(bl -National Environmental Policy Act 7 CFR § 3 -Debt Management {0MB Circular No. A-129) 7 CFR § 15, subpart A -Nondiscrimination in Federally-Assisted Programs of the Department of Agriculture-Effectuation of Title VI of the Civil Rights Act of 1964 7 CFR § 331 and 9 CFR § 121-USDA implementation of the Agricultural Bioterrorism Protection Act of 2002 37 CFR § 401 -Rights to Inventions made by Nonprofit Organizations and Small Business Firms under Government Grants, Contracts, and Cooperative Agreements 4 1 CFR §§ 301-10.131 to 301~10.143 -Use of United States Flag Air Carriers, which implements the Fly America Act (49 U.S .C. 40118). For more information see http:l/www.gsa.gov/portal/content/103191. 48 Cffi subpart 31.2 -Contracts with Commercial Organizations 8 U .S.C. § 1324a -Unlawful employment of aliens 29 U.S.C. § 794 -Nondiscrimination under Federal grants and programs 41 U.S .C. § 22 -Interest of Member of Congress 41 U.S.C. § 4712 -Pilot program for enhancement of contractor protection from reprisal for disclosure of certain information 44 U .S.C. § 3541 et seq. (P.L. 107-347)-Federal Information System Security Management Act of 2002 (FISMA) 23 E0.13166, Improving Access to Services for Persons with limited English Proficiency, take reasonable steps to ensure that LEP persons have meaningful access to programs in accordance with LEP lmplememation Strategy for AMS' Federally-Assisted Programs. Motor Vehicle Safety-Highway Safety Act of 1966, as amended (23 U.5.C.§§ 402 & 403 ); Government Organization and Employees Act, as amended (5 U.S.C. § 7902 (ell ; Occupational Safety and Health Act of 1970, as amended (29 U.S.C. § 668 ); Federal Property and Administrative Services Act of 1949, as amended (40 U .S.C. § 1011 et seq.); Increasing Seat Belt Use in the United States (EO 13043 ); Federal Leadership on Reducing Text Messaging While Driving (EO 13513 ) Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2012, P.L. No. 112- ~ Division A, Sections 738 and 739 regarding corporate felony convictions and corporate Federal tax delinquencies 14.0 CLOSEOUT The recipient and AMS will close out the Federal award when all applicable administrative actions and required work are completed, as provided i n 2 CFR § 20'0343 . When an award is closed out, terminated or partially terminated, the recip i ent is responsible for compliance with the requirements in 2 CFR § 20 0.344 . The recipient must submit, no later than 90 calendar days after the grant end date, all documents as required by these award terms and conditions. 14.1 Closeout Checklist The following documents must be submitted to and approved by AMS to successfully close out a grant: 1. Final Performance Report (see Section 10.2) and any project deliverables (e.g ., photos, brochures, other print materials from the project); 2. Final Federal Financial Report (SF-425) (Section 10.2 ); 3 . Request for Final Advance Payment or Reimbursement (SF-270) (see Section 4.2 and subsections); 4 . If applicable, a refund check for any unused funds (see Sectio n 14.2 ); 5. If applicable, Tangible property report (SF-428 B) (see Section 12.1); and 6 . Audit report (see Section 2.1) (if applicable) Requirements for Reapplication Upon receiving and accepting all closeout documents, AMS will issue a closeout letter. Failure to submit acceptable closeout materials for an existing grant within 90 calendar days following the grant ending date may result in exclusion from future AMS grant consideration. 14.2 Unused and Returned Funds Before submitting an SF -425 for a grant that has been completed or terminated, the recipient must liquidate all obligations not later than 90 calendar days after the performance period end date of the grant agreement. If the recipient has a balance of funds that AMS disbursed previously and the recipient did not obligate by the performance end date of the grant agreement, the recipient must return these funds to AMS. AMS's request to return an unobligated balance following expiration or termination of a grant is not considered an adverse action and is not subject to appeal. Return the funds payable by check to the "Agricultural Marketing Service." Because packages sent to AMS through the United States Postal Service may be damaged or delayed due to security procedures at USDA Washington, D.C. headquarters, the use of express mail or courier services is strongly encouraged. Send payments by Express mail or courier submission to: [Grant Program Name) Attn: [Grant Program Name) Team Lead 24 USDA, Agricultural Marketing Service 1400 Independence Avenue, SW Room 4543-South Building Stop 0264 Washington, DC 20250-0264 The rec i pient must retain all records relating to the grant for a period of three years after the final SF-425 is received by AMS or until final resolution of any audit finding or litigation. See 2 CFR § 200.333 for exceptions and qualifications to the retention requirement and period for other types of grant-related records , including property records. In accordance with Exe'cutive Order 13642 Making Open and Machine Readable the New Default for Government Information , the recipient should, whenever practicable, collect, transmit, and store grant-related information in electronic formats rather than paper. 16.0 ACCESS TO RECORDS As described in 2 CFR § 200.336. A MS, Inspectors General, the Comptroller General of the United States, and the pass-through entity, or any of their authorized representatives, shall have the right of access to any pertinent documents, papers, or records of recipients and subrecipients which that are pertinent to the award, in order to make audits, examinations, excerpts, and transcripts. The right also includes timely and reasonable access to the recipient's and subrecipient's personnel for interview and discussion related to such documents. 17.0 REMEDIES FOR NONCOMPLIANCE AMS may take one or more of the following remedies for a recipient's failure to comply with the award General Terms and Conditions, including reporting requirements, depending on the sever ity and duration of the noncompliance, according to applicable statutes, regulations, and policies . In addition to the options listed below, AMS may take other remedies that are legally available, including initiating suspension or debarment under 2 CFR § 180 . The recipient may be given an opportunity to correct the deficiencies before AMS takes enforcement action; however, AMS may take proactive steps to protect the Federal government's i nterests, including placing special conditions on awards in accordance with 2 CFR § 200.338 such as requiring more frequent reporting or requiring the recipient to obtain technical or management assistance. 17.1 Disallow Costs AMS may disallow (deny use of funds) for all or part of the cost of the activity or action not in compliance . 17.2 Withdrawal of Authorized Personnel Approval AMS may withdraw its approval of the Authorized Representative and/or other project representatives if the Agency concludes that they are no longer qualified or competent to perform their duties. If this occurs, AMS may request that the recipient designate new Authorized Representative or other key personnel. The decision to impose special conditions by withdrawing approval of the Recipient Authorized Representative or other key personnel, or otherwise is discretionary on the part of AMS and not subject to appeal. 17.3 Withholding of Payments AMS may temporarily withhold cash payments pending correction of the deficiency by the recipient, in accordance with 2 CFR § 2.00.205 . This decision is discretionary on the part of AMS and not subject to appeal. 25 17.4 Withholding of Support AMS may decide not to make an award within the current award cycle if a recipient failed to meet the terms and conditions of a previous award or if continued funding would not be in the best interests of the Federal government. 17.5 Suspension or Termination AMS generally will suspend (rather than immediately terminate) a grant and allow the recipient an opportunity to take appropriate corrective actions before terminating a grant agreement. AMS may terminate the grant if the recipient does not take appropriate corrective actions during the period of suspension . AMS may also terminate the grant without first suspending if the deficiency warrants immediate termination o r if public health or welfare concerns require immediate action. AMS will provide the recipient a notice of termination that includes the reason(s) for the termination and if the decision will be considered in evaluating future applications. AMS and the recipient may mutually terminate a grant agreement, partially or totally, if the two parties agree upon the termination conditions, including the effective date and the portion to be terminated. The recipient must contact the AMS representative should it decide to terminate all or part of its award . If the recipient decides to term inate a portion of a grant agreement, AMS may determine that the remaining portion of the grant agreement will not accomplish the purposes for which the grant agreement was originally awarded . In that case , AMS will advise the recipient of the possibility of termination of the entire grant and allow the recipients to withdraw its request for partial termination . If the recipient does not withdraw its request for partial termination, AMS may initiate procedure to terminate the entire grant. When an award is terminated or partially terminated, the recipient is responsible for compliance with section 14 .0 Closeou t requirements. 17.6 Special Conditions for High-Risk Recipients AMS will evaluate the degree of risk associated with a given recipient and may impose additional award conditions per 2 CFR § 200.205(b} on the recipient that correspond to the degree of risk assessed. This risk assessment may incorporate results of the evaluation of the applicant's elig ibility or the quality of its application. These specific award conditions are specified in 2 .CFR § 200.207. AMS will promptly remove any special conditions once the conditions that prompted them have been corrected . 18.0 SITE VISITS AMS may conduct periodic site visits, at its own expense, to review project accomplishments and monitor progress, to review financial and performance records, organizational procedures and financial control systems and to provide technical assistance as required. AMS will make every effort to notify the grant recipient at least two weeks in advance of any trip to the AMSfunded project location . If AMS makes any site visit on the premises of a recipient or a subrecipient(s), the recipient must provide, and must require its subrecipients to provide, all reasonable facilities and assistance for the safety and convenience of government officials in the performance of their duties. All site visits and evaluations are expected to be performed in a manner designed to not unduly delay the i mplementation of the project. 19.0 APPEALS The recipient may appeal an AMS decision to remedy non-compliance by submitting a written request for review to the Federal Agency Project contact, identified in block 13 of the AMS-33 Grant Agreement Face Sheet, unless directed otherwise. The appeal letter must explain the decision or action it is appealing, describe what happened, and include any documentation that substantiates the appeal. AMS will review the notification and respond within 30 calendar days. AMS encourages all recipients to try to resolve disputes by using Alternative Dispute Resolution (ADR) techniques. The benefits of using ADR can include decreasing time, cost and other resources expended in resolving conflicts and increasing customer satisfaction. ADR techniques include mediation, early neutral evaluation, and other consensual resolution methods. 26 20.0 LIMIT OF FEDERAL LIABILITY The maximum obligation of AMS to a recipient is the amount indicated in the award. Nothing in these award terms and conditions or in the other requirements of the award requires AMS to make any additional award of funds or limits its discretion with respect to the amount of funding provided for the same or any other purpose . However, if an erroneous amount is stated in the award, the approved budget, or supporting documentation relating to the award, AMS has unilateral right to make the correction and to make an appropriate adjustment in the AMS share of the award to align with the Federal amount authorized. Anyone who witnesses or has knowledge of the existence (or apparent existence) of fraud, waste, or abuse related to AMS grants or use of grant funds should report this information to USDA. The USDA Office of the Inspector General (OIG) provides several means, including toll-free numbers, for this purpose . Recipients can reach the OIG hotline in the following ways : Mail: Un ited States Depa rtment of Agriculture Office of the Inspector General PO Box 23399 Washington , DC 20026-3399 Telephone : 1-800-424-9121 (toll free) or 202-690-1202 (TDD) Fax : 202-690-2474 Email: usda hotli ne@o fg.usda .gov Website: http://www.usda .gov/oig/h0tllne.htm Fraud, waste, and abuse include, but are not limited to, embezzlement, misuse, or misappropriation of grant funds or property, and false statements and misrepresentation,-whether by organizations or individuals. Examples are theft of grant funds for personal use; using funds for non-grant-related purposes; theft of Federally owned property or property acquired or leased under a grant; charging inflated building rental fees for a building owned by the recipient; submitting false financial reports ; and submitting false financial data in bids submitted to the recipient (for eventual payment under the grant). Callers are not required to give their names and , if they do, OIG keeps identities confidential. The Federal government may pursue administrative, civil, or criminal action under a variety of statutes that relate to fraud and false statements or claims . Even if the Federal government does not award a grant, the applicant may be subject to penalties if the information contained in or submitted as part of an application, including its certifications and assurances, is found to be false, fictitious, or fraudulent . 22.0 PROHIBITION OF CONFIDENTIALITY AGREEMENTS The prohibition of using funds under grants and coope r ative agreements with entities that require certain internal confidentiality agreements are described below. (a) The recipient may not require its employees, contractors, or subrec i pients seeking to report fraud, waste, or abuse to sign or comply with internal confidentiality agreements or statements prohibiting or otherwise restricting them from lawfully reporting that waste, fraud , or abuse to a designated investigative or law enforcement representative of a Federal Department or Agency authorized to receive such information. (b) The recipient must notify its employees, contractors, or subrecipients that the prohibitions and restrictions of any internal confidentiality agreements inconsistent with paragraph (a) of this award provision are no longer in effect. (c) The prohibition in paragraph (a) of this award provision does not contravene requirements applicable to any other form issued by a Federal department or Agency governing the nondisclosure of classified information. (d) If the Government determines that the recipient is not in compliance with this award provision, it: 27 (1) Will prohibit the recipient's use of funds under this award, in accordance with sections 743, 744 of Division E of the Consolidated Appropriations Act, 2016, (Pub. L. 114-113) or any successor provision of law; and (2) May pursue other remedies available for the recipient's material failure to comply with award terms and conditions. 23.0 PAPERWORK REDUCTION According to the Paperwork Reduction Act of 1995, an Agency may not conduct or sponsor, and a person is not required to respond to a collection of information unless it displays a valid 0MB control number. The valid 0MB control number for this information collection is 0581-0240. The time required to complete this information collection is estimated to average 2 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. 24.0 NONDISCRIMINATION STATEMENT USDA is an equal opportunity provider, employer, and lender. 28