HomeMy WebLinkAboutDept of Commerce Columbia Water DM-15-952-037Washington State
Public Works Board
1011 Plum Street SE
Post Office Box 42525
Olympia, Washington 98504-2525
Capital Agreement between:
For:
City of Pasco
and
Public Works Board
Project Name: Columbia Water Supply Project
Loan Number: DM15-952-037
Loan Type: DWSRF NT
Contract Start Date: Contract Execution Date
Department of Commerce
Innovation is in our nature.
Washington State Department of Commerce
www.commerce.wa.gov
Page
ORIGINAL
Q (4p S<)
DECLARATIONS
CLIENT INFORMATION
Legal Name:
Loan Number:
Award Year:
State Wide Vendor Number:
PROJECT INFORMATION
Project Title:
Project City:
Project State:
Project Zip Code:
LOAN INFORMATION
Loan Amount:
Loan Fee (Included in loan amount if applicable)
Loan Forgiveness %:
Loan Term:
Interest Rate:
Payment Month:
Earliest Date for Construction Reimbursement:
Time of Performance
FUNDING INFORMATION
City of Pasco
D M 15-952-037
2015
SWV0007164-00
Columbia Water Supply Project
Pasco
Washington
99301
6,810,430.00
67,430.00
0%
20 years
1.50%
October 1 st
7/1/2014
48 months from Contract execution date to Project
Completion date.
Total Amount of Federal Award (as applicable) [To be determined]
Federal Award Date
[To be determined]
Federal Award ID # (FAIN)
[To be determined]
Amount of Federal Funds Obligated by this action
[To be determined]
Awarding Official
[To be determined]
SPECIAL TERMS AND CONDITIONS GOVERNING THIS LOAN AGREEMENT
A final determination on the eligibility of indirect costs is pending from the Environmental Protection Agency.
Upon receipt of that determination, Commerce will notify you of that decision and advise if indirect costs may
be charged against this contract.
LOAN SECURITY CONDITION GOVERNING THIS LOAN AGREEMENT
This loan is a revenue obligation of the Contractor payable solely from the net revenue of the Water system.
Payments shall be made from the net revenue of the utility after the payment of the principal and interest on
any revenue bonds, notes, warrants or other obligations of the utility having a lien on that net revenue. As
used here, "net revenue" means gross revenue minus expenses of maintenance and operations. The Board
grants the Contractor the right to issue future bonds and notes that constitute a lien and charge on net
revenue superior to the lien and charge of this loan Contract. This option may be used only if the entire project
is a domestic water, sanitary sewer, storm sewer, or solid waste utility project.
Page it
DECLARATIONS (continued)
Loan Number:
Project Title:
D M 15-952-037
Columbia Water Supply Project
Scope of Work:
Construction work will include the following:
A. Construction of a circular concrete wet well approximately 30 -foot diameter and approximately 85 feet deep.
B. Microtunnel boring for installation of approximately 200 feet of 36 -inch diameter pipe from the wet well to
the intake screens.
C. Installation of two stainless steel intake screens, each approximately 42 -inches in diameter by 60 -inches in
length, plus a compressed air system located in the pump station building for screen cleaning.
D. Construction of a single story pump station building above the wet well, approximately 2,200 square feet
with three separate interior spaces for : 1) pumps; 2) electrical, instrumentation and controls equipment; and 3)
compressed air equipment.
E. Installation of two (2) 250 -hp line shaft vertical turbine pumps, and ancillary equipment, for operation at
variable speeds.
F. Removal of approximately 400 linear feet of existing 24 -inch ductile iron pipe and installation of
approximately 700 linear feet of 30 -inch raw water pipe from the pump station building to the existing West
Pasco Water Treatment Plant (WPWTP).
G. Buried conduit for the future backup power between WPWTP and the new intake.
H. Buried conduit between WPWTP and the new intake with tubing inside for chemical feed and sample water.
I. Site work for access, landscaping, fencing and storm water facilities.
J. Half street improvements, including curb and gutter and a sidewalk.
K. Asphalt pavement for surface restoration
L. A concrete slab for anew utility transformer and buried conduit to provide three phase power to the facility
from the utility transformer.
M. Equipment for electrical service, distribution and lighting for the facility and for power to all systems within
the facility.
N. Instrumentation, controls and telemetry for control of the facility and communication with the West Pasco
Water Treatment Plant.
Page iii
CONTRACT FACE SHEET
Contract Number: DM15-952-037
Drinking Water State Revolving Fund (DWSRF)
2015
(Municipal)
1. Contractor
2. Contractor Doing Business As (optional)
City of Pasco
N/A
PO Box 293
Pasco, WA 99301
3. Contractor Representative
4. Public Works Board Representative
N/A
N/A
5. Contract Amount
6. Funding Source
7. Contract Start Date
8. Contract End Date
$6,810,430.00
Federal: ® State: ®
Contract Execution Date
October 1, 2034
Other: ❑ NIA: ❑
9. Federal Funds (as applicable) Federal Agency CFDA Number
N/A EPA 66.468
10. Tax ID #
11. SWV #
12. USI #
13. DUNS #
N/A
SWV0007164-00
009974598
14. Contract Purpose
The purpose of this Contract is to provide funding for a project of a local government that furthers the goals and
objectives of the Drinking Water State Revolving Fund Loan Program. The project will be undertaken by the
Contractor and will include the activities described in the Declared Scope of Work.
The Board, defined as the Washington State Public Works Board, and Contractor acknowledge and accept the
terms of this Contract and attachments and have executed this Contract on the date below to start as of the date
and year last written below. The rights and obligations of both parties to this Contract are governed by this Contract
and the following other documents incorporated by reference: Contractor Terms and Conditions including
Declarations Page; Attachment I: Attorney's Certification; Attachment It: Federal and State Requirements;
Attachment III: Disadvantaged Business Enterprise Requirements; Attachment IV: Certification Regarding
Debarment, Suspension, and Other Responsibility Matters; Attachment V: DWSRF Eligible Project Costs; and
Attachment VI: Labor Standard Provisions for Subreci ients that are Governmental Entities.
THE CONTRACTOR
FOR PUBLIC WORKS BOARD
fFOR
Signature
SUan iF nkel m, Public Works Board Chair
Da ve Zabel /
fieri` 2 .7 191..5 -
Dat 7
Print Name
M Manager
APPROVED AS TO FORM ONLY
Title
d�, /20/�
This 10th Day of Aoril. 2015
Bob Ferguson
Date
Attorney General
Signature on file
Kathryn Wyatt
Assistant Attorney General
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TABLE OF CONTENTS
CONTRACT TITLE PAGE i
CONTRACT DECLARATIONS
CONTRACT FACE SHEET 1
TABLE OF CONTENTS 3
Part1 SPECIAL TERMS AND CONDITIONS
1.1.
DEFINITIONS
7
1.2.
AUTHORITY
7
1.3.
PURPOSE
7
1.4.
ORDER OF PRECIDENCE
7
1.5.
AMOUNT OF LOAN
8
1.6.
LOAN FEE
8
1.7.
TERM OF LOAN
8
1.8.
RATE AND LOAN FORGIVENESS
8
1.9.
DISBURSEMENT OF LOAN PROCEEDS AND REQUIRED DOCUMENTATION
8
1.10.
TIME OF PERFORMANCE
9
1.11.
PROJECT COMPLETION AMENDMENT AND THE CERTIFIED PROJECT COMPLETION REPORT
9
1.12.
REPAYMENT
10
1.13.
DEFAULT IN REPAYMENT
10
1.14.
LOAN SECURITY
10
1.15.
HISTORICAL AND CULTURAL ARTIFACTS
10
1.16.
FEDERAL AND STATE REQUIREMENTS
11
1.17.
COMPETITIVE BIDDING REQUIREMENTS
11
1.18.
ELIGIBLE PROJECT COSTS
11
1.19.
PREVAILING WAGE
11
1.20.
FEDERAL EXCLUSION
12
1.21.
REGISTRATION WITH CENTRAL CONTRACTOR REGISTRATION (CCR)
12
1.22.
RECORDKEEPING AND ACCESS TO RECORDS
12
1.23.
REPORTS
12
1.24.
AMENDMENTS, MODIFICATIONS, ASSIGNMENTS, AND WAIVERS
13
1.25.
TERMINATION FOR CAUSE
13
1.26.
TERMINATION FOR CONVENIENCE
13
1.27.
AUDIT
13
1.28,
PROJECT SIGNS
14
1.29.
DISADVANTAGED BUSINESS ENTERPRISE REQUIREMENTS
14
1.30.
NONDISCRIMINATION PROVISION
14
1.31.
PROHIBITION STATEMENT
15
1.32.
FALSE, INCORRECT, OR INCOMPLETE INFORMATION OR CLAIM
15
1.33.
LITIGATION
15
1.34.
ESTABLISHMENT OF ADEQUATE RATES AND RESERVES
15
1.35.
SPECIAL CONDITIONS
15
1.36.
INVESTMENT GRADE AUDIT
15
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1.37. BUY AMERICAN 15
Part 2 GENERAL TERMS AND CONDITIONS
2.1.
DEFINITIONS
17
2.2.
ADMINISTRATIVE COST ALLOCATION
17
2.3.
ALLOWABLE COSTS
17
2.4.
ALL WRITINGS CONTAINED HEREIN
17
2.5.
AMENDMENTS
17
2.6.
AMERICANS WITH DISABILITIES ACT (ADA) OF 1990, PUBLIC LAW 101-336, also referred to as the
"ADA" 28 CFR Part 35
17
2.7.
APPROVAL
17
2.8.
ASSIGNMENT
18
2.9.
ATTORNEYS' FEES
18
2.10.
AUDIT
18
2.11.
CERTIFICATION REGARDING DEBARMENT, SUSPENSION OR INELIGIBILITY AND VOLUNTARY
EXCLUSION—PRIMARY AND LOWER TIER COVERED TRANSACTIONS
19
2.12.
CODE REQUIREMENTS
19
2.13.
CONFIDENTIALITY/SAFEGUARDING OF INFORMATION
19
2.14.
CONFORMANCE
20
2.15.
COPYRIGHT PROVISIONS
20
2.16.
DISALLOWED COSTS
20
2.17.
DISPUTES
20
2.18.
DUPLICATE PAYMENT
21
2.19.
ETHICS/CONFLICTS OF INTEREST
21
2.20.
GOVERNING LAW AND VENUE
21
2.21.
INDEMNIFICATION
21
2.22.
INDEPENDENT CAPACITY OF THE CONTRACTOR
21
2.23.
INDIRECT COSTS
21
2.24.
INDUSTRIAL INSURANCE COVERAGE
22
2.25.
LAWS
22
2.26.
LICENSING, ACCREDITATION AND REGISTRATION
24
2.27.
LIMITATION OF AUTHORITY
24
2.28.
LOCAL PUBLIC TRANSPORTATION COORDINATION
24
2.29.
NONCOMPLIANCE WITH NONDISCRIMINATION LAWS
24
2.30.
NOTIFICATION OF TENANT RIGHTS/RESPONSIBILITIES
24
2.31.
POLITICAL ACTIVITIES
24
2.32.
PREVAILING WAGE LAWS
25
2.33.
PROCUREMENT STANDARDS FOR FEDERALLY FUNDED PROGRAMS
25
2.34.
PROHIBITION AGAINST PAYMENT OF BONUSES OR COMMISSION
25
2.35.
PUBLICITY
26
2.36.
RECAPTURE
26
2.37.
RECORDS MAINTENANCE
26
2.38.
REGISTRATION WITH DEPARTMENT OF REVENUE
26
2.39.
RIGHT OF INSPECTION
26
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DM15-952-037
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2.40. SAVINGS
2.41. SEVERABILITY
2.42. SUBCONTRACTING
2.43. SURVIVAL
2.44. TAXES
2.45. TERMINATION FOR CAUSE / SUSPENSION
2.46. TERMINATION FOR CONVENIENCE
2.47. TERMINATION PROCEDURES
2.48. WAIVER
2.49. WORK HOURS AND SAFETY STANDARDS
ATTACHMENT
ATTACHMENT II
ATTACHMENT III
ATTACHMENT IV
ATTACHMENT V
ATTACHMENT VI
ATTORNEY'S CERTIFICATION
FEDERAL AND STATE REQUIREMENTS
DISADVANTAGED BUSINESS ENTERPRISE REQUIREMENTS
CERTIFICATION REGARDING DEBARMENT, SUSPENSION, AND OTHER
RESPONSIBILITY MATTERS
DWSRF ELIGIBLE PROJECT COSTS
LABOR STANDARD PROVISIONS FOR SUBRECIPIENTS THAT ARE GOVERNMENTAL
ENTITIES
26
26
26
27
27
27
27
27
27
28
29
31
33
35
37
39
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CONTRACT TERMS AND CONDITIONS
DRINKING WATER STATE REVOLVING FUND
NEW TRADITIONAL
(MUNICIPAL)
Part 1. SPECIAL TERMS AND CONDITIONS
1.1. DEFINITIONS
As used throughout this Drinking Water State Revolving Fund Loan Contract, the following terms shall have the
meaning set forth below:
A. AWARD YEAR shall mean the calendar year in which the funds were awarded to the Board for use in making
loans under this program.
B. "Board" shall mean the Washington State Public Works Board created in Revised Code of Washington (RCW)
43.155.030, and who is a Party to the Contract.
C. "Contract" shall mean this Drinking Water State Revolving Fund Loan.
D. "Contractor" shall mean the Local Government identified on the Contract Face Sheet performing service(s)
under this Contract and who is a Party to the Contract, and shall include all employees and agents of the
Contractor.
E. The "Contract End Date" shall mean the date the contract expires. This date shall occur in the final year of the
LOAN TERM unless otherwise amended, as counted from the AWARD YEAR. The actual date of contract
execution shall have no effect on the Contract End Date.
F. "Deferral Period" shall be from the date of contract execution until the date of project completion. The Deferral
Period shall not exceed 4 years in length.
G. "Department of Commerce" and "Commerce" shall mean the Washington State Department of Commerce.
H. "Department of Health" shall mean the Washington State Department of Health, Office of Drinking Water, who is
the recipient of the Drinking Water State Revolving Fund grant and regulates drinking water systems in the
State of Washington.
I. 'Iron and steel products" are the following products made primarily of iron or steel: lined or unlined pipes and
fittings, manhole covers and other municipal castings, hydrants, tanks, flanges, pipe clamps and restraints,
valves, structural steel, reinforced precast concrete, and construction materials.
J. PAYMENT MONTH shall mean the day and month of the year in which payments are due.
1.2. AUTHORITY
Acting under the authority of RCW 70.119A.170 and RCW 43.155.040, the Board has awarded the Contractor a
Drinking Water State Revolving Fund loan for an approved project. The Contractor will be a sub -recipient of funds
provided by the United States Environmental Protection Agency, CFDA Number 66.468, Title: Safe Drinking Water
State Revolving Fund, award year of this contract.
1.3. PURPOSE
The Board and the Contractor have entered into this Contract to undertake a local project that furthers the goals
and objectives of the Drinking Water State Revolving Fund Loan Program. The project will be undertaken by the
Contractor and will include the activities described in the SCOPE OF WORK shown on the Declarations page. The
project must be undertaken in accordance with the loan Program Special Terms and Conditions and all applicable
federal, state and local laws and ordinances, including but not limited to those specifically enumerated in
Attachment II: Federal and State Requirements, which by this reference are incorporated into this Contract as
though set forth fully herein.
1.4. ORDER OF PRECIDENCE
In the event of an inconsistency in this Contract, the inconsistency shall be resolved by giving precedence in the
following order:
A. Applicable federal and State of Washington statutes and regulations.
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B. Special Terms and Conditions including attachments.
C. General Terms and Conditions.
1.5. AMOUNT OF LOAN
The Board, using funds appropriated from the Drinking Water Assistance Account, shall loan the Contractor a sum
not to exceed the amount shown as LOAN AMOUNT on the attached Declarations Page. This loan amount includes
a loan fee, if applicable, which is shown on the Declarations Page as LOAN FEE.
1.6. LOAN FEE
If the loan fee applies, it will be assessed at loan execution.
The amount of the loan fee (if applicable) represents one percent (1 %) of the loan request and shall not be reduced,
regardless of the actual final loan amount at project completion. If the loan fee applies and the total loan amount is
increased by amendment, an additional loan fee equal to one percent (1 %) of the additional loan amount will be
assessed at amendment execution. The amount of any loan fee will be displayed on the Declarations Page as
LOAN FEE.
1.7. TERM OF LOAN
Unless otherwise amended, the term of the loan shall not exceed the period shown on the Declarations Page as
LOAN TERM. The term shall start in the AWARD YEAR.
Except as herein provided, under no circumstances shall the loan repayment period exceed 20 years from the
contract execution date.
The loan term may be extended for a disadvantaged community up to 30 years, provided that a recipient completes
loan repayment no later than 30 years after project completion and the term of the loan does not exceed the
expected design life of the project.
1.8. RATE AND LOAN FORGIVENESS
The interest rate shall be the declared INTEREST RATE per annum on the outstanding principal balance, based on
a three hundred and sixty (360) day year composed of twelve (12) thirty (30) day months. The amount of loan
forgiveness (if applicable) shall be as stated on the attached Declarations Page, and identified therein as LOAN
FORGIVENESS %.
If project is completed within 24 months of contract execution and includes the basic interest rate, the interest rate
will be decreased to one percent (1.0%) at project completion. The calculation of interest rate will apply to the
remaining payments beginning from the date the Project Completion report is certified.
This loan forgiveness shall be applied at project completion and shall apply to the lesser of the loan amount or the
actual eligible costs and that declared percent on any accrued interest. The percent of loan forgiveness and interest
rate shall not be changed, regardless of the actual cost of the project and the Affordability Index at project
completion.
1.9. DISBURSEMENT OF LOAN PROCEEDS AND REQUIRED DOCUMENTATION
If funding or appropriation is not available at the time the Contractor submits a request for a loan disbursement, the
issuance of a warrant will be delayed or suspended until such time funds become available. Therefore, subject to
availability of funds, warrants shall be issued to the Contractor for payment of allowable expenses incurred by the
Contractor while undertaking and administering approved project activities in accordance with the declared SCOPE
OF WORK.
The loan funds will be disbursed to the Contractor as follows:
Ten percent (10%) of loan proceeds will be held until project completion. The total Drinking Water State Revolving
Fund Loan shall not exceed one hundred percent (100%) of the actual eligible project costs.
When requesting reimbursement for costs incurred, the Contractor shall submit a signed and completed Invoice
Voucher (Form At 9), referencing the declared SCOPE OF WORK project activity performed, and any appropriate
documentation such as bills, invoices, and receipts. The purchase of any land necessary and integral to the project
must be included in the declared SCOPE OF WORK and be documented with an appraisal or other market
valuation and a valid purchase and sale agreement. The Invoice Voucher must be certified by an official of the
Contractor with authority to bind the Contractor.
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Each A19 Reimbursement Voucher must be accompanied by a Project Status Report, which describes, in narrative
form, the progress made on the project since the last invoice was submitted, as well as a report of project status to
date. The Department of Commerce (Commerce) will not release payment for any reimbursement request received
until the Project Status Report is received. After approving the Voucher and the Project Status Report, Commerce
shall promptly release funds to the Contractor.
Construction expenses incurred after the date shown as EARLIEST DATE FOR CONSTRUCTION
REIMBURSEMENT on the Declarations Page are eligible for reimbursement. Requests for reimbursements for
costs related to construction activities will not be accepted until the Contractor has met the following conditions:
A. Issued a Notice to Proceed which follows the formal award of a construction contract;
B. Completed the State Environmental Review Process;
C. Complied with all provisions of Section 106 of the National Historic Preservation Act of 1966;
D. Complied with Section 1.19: Prevailing Wage;
E. Obtained approval from the Department of Health of the project report and related construction documents for
all applicable activities described in the declared SCOPE OF WORK; and
F. Complied with any other loan conditions required by Department of Health or The Board.
An electronic copy (emailed PDF or a FAX) of a signed A19 Reimbursement Voucher and other required
documentation is the preferred method for requesting reimbursement. Submit the electronic requests to your
Contracts Administration Unit (CAU) representative or fax to 360-586-8440. This electronic submittal may be 25
pages or less. If you choose to send your vouchers and backup documentation electronically, please DO NOT mail
in the original. You will receive email notification from your CAU representative that the electronic request has been
received.
Commerce will pay the Contractor upon acceptance of the work performed and receipt of properly completed
invoices. Invoices may be submitted to Commerce not more often than monthly.
Payment shall be considered timely if made by Commerce within thirty (30) calendar days after receipt of properly
completed invoices. Payment shall be sent to the address designated by the Contractor.
The Board may, at its sole discretion, withhold payments claimed by the Contractor for services rendered if the
Contractor fails to satisfactorily comply with any term or condition of this contract.
No payments in advance or in anticipation of services or supplies to be provided under this contract shall be made
by the Board.
In the event that the Contractor receives reimbursement for costs that are later determined by the Board to be
ineligible, these funds shall be repaid to the Drinking Water Assistance Account by payment to the Department of
Commerce, or its successor, together with the submission of the Project Completion Amendment.
At the time of project completion, the Contractor shall submit to the Board a Certified Project Completion Request
certifying the total actual project costs, and a final voucher for the remaining eligible funds. The Certified Project
Completion Request shall include a copy of the Construction Completion Report as submitted to Department of
Health.
1.10. TIME OF PERFORMANCE
The Contractor shall begin the activities identified within the declared SCOPE OF WORK no later than thirty (30)
days after Contract execution. No later than eighteen (18) months after Contract execution, the Contractor shall issue
a 'Notice to Proceed', which follows the formal award of a construction contract.
The Contractor must reach project completion within the period specified on the Declarations Page as TIME OF
PERFORMANCE.
Failure to meet Time of Performance within the time frame described in this section shall constitute default under this
Contract, and as a result, this Contract may be terminated. In the event of extenuating circumstances, the Contractor
may request, in writing, at least 90 days prior to the expiration of project completion date that the Board extend the
deadline for project completion. The Board may extend the time of project completion.
1.11. PROJECT COMPLETION AMENDMENT AND THE CERTIFIED PROJECT COMPLETION REPORT
The Contractor shall initiate a Project Completion Amendment by submitting a Certified Project Completion Report
when activities identified in the declared SCOPE OF WORK are complete and the Contractor agrees that no
additional eligible costs will be reimbursed.
In the Project Completion Amendment, the Contractor will provide the following information to the Board:
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A. A certified statement of the actual dollar amounts spent, from all fund sources, in completing the project as
described in the declared SCOPE OF WORK.
B. Certification that all costs associated with the project have been incurred. Costs are incurred when goods and
services are received and/or contract work is performed.
C. A copy of the Department of Health Construction Completion Report as submitted to Department of Health.
D. Evidence documenting compliance with audit requirements as referenced in Section 1.27.
E. A final voucher for the remaining eligible funds.
The Project Completion Amendment shall serve as an amendment to this Contract determining the final loan
amount and term of the loan.
1.12. REPAYMENT
An assistance recipient begins annual repayment of the loan no later than one year after contract execution. The
first repayment installment is due on the first day of the month shown as PAYMENT MONTH on the Declarations
Page. Interest only will be charged for this first payment if a draw is made prior to this date. All subsequent payments
shall consist of principal and accrued interest due that month of each year during the remaining term of the loan.
Repayment of the loan under this Contract shall include the declared INTEREST RATE per annum. Interest will
begin to accrue from the date each payment is issued to the Contractor. The final payment shall be on or before the
completion of the declared LOAN TERM, payable on or before the declared PAYMENT MONTH of an amount
sufficient to bring the loan balance to zero.
The Contractor has the right to repay the unpaid balance of the loan in full at any time or make accelerated payments
without penalty.
The Contractor will repay the loan in accordance with the preceding conditions through the use of a check, money
order, or equivalent means made payable to the Washington State Department of Commerce, or its successor.
1.13. DEFAULT IN REPAYMENT
Loan repayments shall be made in accordance with Section 1.12 of this Contract. A payment not received within thirty
(30) days of the due date shall be declared delinquent. Delinquent payments shall be assessed a monthly penalty
beginning on the first (1s) day past the due date. The penalty will be one percent (1%) per month or twelve percent
(12%) per annum of the delinquent payment amount. These same penalty terms shall apply if the repayment of loan
funds determined to be ineligible costs are not repaid within thirty (30) days as provided for in Section 1.9.
The Contractor acknowledges and agrees to the Board's right, upon delinquency in the payment of any annual
installment, to notify any other entity, creditors, or potential creditors of the Contractor of such delinquency. Contractor
shall be responsible for all legal fees incurred by the Board in any action undertaken to enforce its rights under this
section.
14. LOAN SECURITY
Loan Security may be required as a performance condition of this contract. If such performance condition is
required it shall be indicated on the attached Declarations Page and identified therein as LOAN SECURITY
CONDITION.
The Board grants the Contractor the right to issue future bonds and notes that constitute a lien and charge on the
revenue source superior to the lien and charge of this Loan Contract. Nothing in this section shall absolve the
Contractor of its obligation to make loan repayments when due, and to adjust rates, fees, or surcharges, if
necessary, to meet its obligations under this Contract.
1.15. HISTORICAL AND CULTURAL ARTIFACTS
The Contractor acknowledges that the project funded by this Contract is subject to Section 106 of the National
Historic Preservation Act of 1966.
Contractor agrees that Contractor is legally and financially responsible for compliance with all laws, regulations, and
agreements related to the preservation of historical or cultural artifacts and agrees to hold harmless the State of
Washington in relation to any claim related to such historical or cultural artifacts discovered, disturbed, or damaged as
a result of Contractor's public works project funded under this Contract.
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The Contractor agrees that, in no case shall construction activities, ground disturbance, or excavation of any sort,
begin until the Contractor has complied with all provisions of Section 106 of the National Historic Preservation Act of
1966, as amended.
In addition, the Contractor shall not conduct or authorize destructive project planning activities before completing
compliance with Section 106 of the National Historic Preservation Act of 1966, as amended.
If historical or cultural artifacts are discovered during construction, the Contractor shall immediately stop construction
and implement reasonable measures to protect the discovery site from further disturbance, take reasonable steps to
ensure confidentiality of the discovery site, restrict access to the site, and notify the concerned tribe's cultural staff
or committee, Tribal Historical Preservation Officer (THPO), Cultural Resources Program Manager at Washington
State Department of Health, and the State's Historical Preservation Officer (SHPO) at the Washington State
Department of Archaeology and Historic Preservation (DAHP). If human remains are uncovered, the Contractor shall
report the presence and location of the remains to the coroner and local enforcement immediately, then contact the
concerned tribe's cultural staff or committee and DAHP.
The Contractor shall require the above provisions to be contained in all contracts for work or services related to the
declared SCOPE OF WORK. In no case shall construction activities begin until the Contractor has complied with all
provisions of Section 106 of the National Historic Preservation Act of 1966.
In addition to the requirements set forth in this Contract, the Contractor agrees to comply with Native American Graves
Protection and Repatriation Act, Archaeological Resources Protection Act, Revised Code of Washington (RCW) 27.44
regarding Indian Graves and Records; RCW 27.53 regarding Archaeological Sites and Resources; RCW 68.60
regarding Abandoned and Historic Cemeteries and Historic Graves; and Washington Administrative Code (WAC) 25-
48 regarding Archaeological Excavation and Removal Permits.
1.16. FEDERAL AND STATE REQUIREMENTS
The Contractor assures compliance with all applicable federal, state and local laws, requirements, and ordinances as
they pertain to the design, implementation, and administration of the approved project, including but not limited to those
listed in Attachments II, III, and IV.
1.17,
Pursuant to 40 CFR, Section 33.501(b) and (c), the Contractor also agrees to create and maintain a bidders list for
both Disadvantaged Business Enterprises (DBE) and Non -Disadvantaged Business Enterprises (non -DBE). The
purpose of a bidders list is to provide the recipient and entities receiving identified loans who conduct competitive
bidding with as accurate a database as possible about the universe of DBE and non -DBE prime and subcontractors.
The list must include all firms that bid or quote on prime contracts or bid or quote subcontracts on Environmental
Protection Agency assisted projects, including both DBE and non -DBE. The bidders list must be kept at least until
the grant project period has expired and the recipient is no longer receiving Environmental Protection Agency
funding under the grant. For entities receiving identified loans, the bidders list must only be kept until the project
period for the identified loan has ended. The following information must be obtained from all prime and
subcontractors: entity's name with point of contact; entity's mailing address, telephone number, and e-mail address;
the procurement on which the entity bid or quoted, and when; and, entity's status as a DBE or non -DBE.
The Contractor agrees to provide Environmental Protection Agency Form 6100-2 DBE Subcontractor Participation
and Environmental Protection Agency Form 6100-3 DBE Subcontractor Performance to all its Disadvantaged
Business Enterprise subcontractors.
The Contractor shall require Disadvantaged Business Enterprise provisions are contained in all contracts with any
subcontractors for work or services related to the declared SCOPE OF WORK.
The Contractor shall comply with the provisions of RCW 43.155.060 regarding competitive bidding requirements for
projects assisted in whole or in part with money from the Drinking Water State Revolving Fund program.
1.18. ELIGIBLE PROJECT COSTS
The Contractor assures compliance with Attachment V: DWSRF Eligible Project Costs, which identifies eligible costs
for projects funded by Drinking Water State Revolving Fund loans.
1.19. PREVAILING WAGE
These terms supersede the terms in Section 2.31. Prevailing Wage Laws in General Terms and Conditions.
All contractors and subcontractors performing work on a construction project funded through this Contract shall
comply with prevailing wage laws by paying the higher of state or federal prevailing wages according to:
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State Prevailing Wages on Public Works, Chapter 39.12 RCW, as applicable to the Project funded by this
contract, including but not limited to the filing of the "Statement of Intent to Pay Prevailing Wages" and "Affidavit
of Wages Paid" as required by RCW 39.12.040. The Contractor shall maintain records sufficient to evidence
compliance with Chapter 39.12 RCW, and shall make such records available for Board's review upon request;
or,
The Davis Bacon Act, 40 USC 276a -276a-5 and related federal acts provide that all laborers and mechanics
employed by contractors or subcontractors in the performance shall be paid wages at rates not less than those
prevailing on similar construction in the locality as determined by the Secretary of Labor.
The Contractor agrees that the Contractor is legally and financially responsible for compliance with the prevailing
wage requirements. Contractor is advised to consult the United States Department of Labor and Washington State
Department of Labor and Industries websites to determine the federal and State prevailing wages that must be paid.
The Contractor shall ensure that all contractors, subcontractors, engineers, vendors, and any other entity for work or
services listed in the declared SCOPE OF WORK shall insert in full, in any contract, the labor standards provisions
listed in Attachment VI: Labor Standard Provisions for Subrecipients That Are Governmental Entities. Contractor
shall report to the Board and/or the Department of Health that this requirement has been met as stated in this
Contract.
1.20. FEDERAL EXCLUSION
These Terms add to the terms in Section 2.11. Certification Regarding Debarment, Suspension or Ineligibility and
Voluntary Exclusion — Primary and Lower Tier Covered Transactions in General Terms and Conditions. The
Contractor also agrees to access the Federal Exclusion List at www.sam.gov and provide Federal Exclusion
documentation to the Board and to keep a copy on file with the Contractor's project records.
1.21. REGISTRATION WITH CENTRAL CONTRACTOR REGISTRATION XCR)
By signing this Contract, the Contractor accepts the requirements stated in 48 CFR 52.204-7 to register with the
Central Contractor Registration (CCR) database at the System for Awards Management (SAM) website. To register
in SAM, a valid Data Universal Numbering System (DUNS) Number is required. The Contractor is responsible for the
accuracy and completeness of the data within the SAM database and for any liability resulting from the Government's
reliance on inaccurate or incomplete data. The Contractor must remain registered in the SAM database after the initial
registration. The Contractor is required to review and update on an annual basis from the date of initial registration or
subsequent updates its information in SAM to ensure it is current, accurate and complete. The Contractor shall provide
evidence documenting registration and renewal of SAM registration to the Board.
In the event of the Contractor's noncompliance or refusal to comply with the requirement stated above, the Board
reserves the right to suspend payment until the Contractor cures this noncompliance.
1.22. RECORDKEEPING AND ACCESS TO RECORDS
These terms supersede the terms in Section 2.36. Records Maintenance in General Terms and Conditions.
The Board, the Board's agents, and duly authorized officials of the state and federal governments shall have full
access and the right to examine, copy, excerpt, or transcribe any pertinent documents, papers, records, and books of
the Contractor and of persons, firms, or organizations with which the Contractor may contract, involving transactions
related to this project and this Contract.
The Contractor agrees to retain these records for a period of six (6) years from the date that the debt is retired. This
includes but is not limited to financial reports. If any 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.
1.23. REPORTS
The Contractor, at such times and on such forms as the Board may require, shall fumish the Board with such
periodic reports as it may request pertaining to the activities undertaken pursuant to this Contract including, but not
limited to:
A. Prevailing Wage decisions and/or changes
B. Disadvantaged Business Enterprises utilization
C. Project Status Reports with each Invoice Voucher
D. Certified Project Completion Report at project completion (as described in Section 1.11)
E. Other reports as the Board may require
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In the event of the Contractor's noncompliance or refusal to comply with the requirement stated above, the Board
reserves the right to suspend payment until the Contractor cures this noncompliance.
1.24. AMENDMENTS, MODIFICATIONS, ASSIGNMENTS, AND WAIVERS
Amendments, modifications, assignments, and waivers to any of the terms of this contract supersede those terms as
found in the original contract.
The Contractor may request an amendment of this Contract for the purpose of modifying the declared SCOPE OF
WORK or for extending the time of performance as provided for in Section 1.10. Any revision to the SCOPE OF
WORK or location of the project must be approved by the Department of Health. No modification or amendment
resulting in an extension of time shall take effect until a request has been received and approved by the Board in
accordance with Section 1.10.
During the term of this loan, any change in ownership of the water system(s) improved with funds received
by the Contractor under this Contract must be approved in writing by the Board. As a condition of
approval, the Board reserves the right to demand payment in full of the outstanding principal balance of the
loan.
No conditions or provisions of this Contract may be waived unless approved by the Board in writing. No waiver of any
default or breach by any parry shall be implied from any failure to take action upon such default or breach if the default
of breach persists or repeats.
1.25. TERMINATION FOR CAUSE
fi W1.1
These terms supersede the terms in Section 2.44. Termination for Cause/Suspension in General Terms and
Conditions.
If the Board concludes that the Contractor has failed to comply with the terms and conditions of this Contract, or has
failed to use the loan proceeds only for those activities identified in the declared SCOPE OF WORK, or has
otherwise materially breached one or more of the covenants in this Contract, the Board may at any time, at its
discretion, upon notice to the Contractor, terminate the Contract and/or its attached agreements in whole or in part
and declare the entire remaining balance of the loan, together with any interest accrued, immediately due and
payable in full. Such Notice of Termination for Cause shall be in writing, shall state the reason(s) for such
termination, and shall specify the effective date of the termination. The effective date of the termination will be
determined by the Board. Such notice shall inform the Contractor of the breach of the relevant covenant and shall
allow the Contractor at least thirty (30) business days to cure such breach, if curable. The notice shall instruct the
Contractor that, if the breach is not cured or cannot be cured within thirty (30) business days, the outstanding
balance of the loan shall be due and payable. If this Contract is so terminated, the Board shall be liable only for
payment required under the terms of this Contract for services rendered or goods delivered prior to the effective
date of termination. Nothing in this section shall affect the Contractor's obligations to immediately repay the unpaid
balance of the loan as prescribed in the Washington Administrative Code (WAC) 246-296-150.
These terms supersede the terms in Section 2.45. Termination for Convenience in General Terms and Conditions
The Board may terminate this Contract in the event that federal or state funds are no longer available to the Board,
or are not appropriated for the purpose of meeting the Board's obligations under this Contract. The Board shall
notify the Contractor in writing of its determination to terminate and the reason for such termination. The effective
date of the termination will be determined by the Board. If this Contract is so terminated, the Board shall be liable
only for payment required under the terms of this Contract for services rendered or goods delivered prior to the
effective date of termination. Nothing in this section shall affect Contractor's obligations to repay the unpaid balance
of the loan.
1.27. AUDIT
These terms supersede the terms in Section 2.10. Audit in General Terms and Conditions.
The Board reserves the right to require an audit of this project. The Contractor is responsible for correcting any
audit findings. The Contractor agrees to refund to the Board all disallowed costs resulting from the audit. Audit
costs are allowable expenses within this Contract.
Municipal and Not -For -Profit entities:
Audits of the Contractor's project activities may be conducted by the State Auditor Office (SAO). Audit costs are
eligible project costs. The Contractor shall maintain its records and accounts so as to facilitate the audit
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1.28.
GFq-111
1.30.
requirements of the Board or its successor. The Contractor is responsible for any audit findings incurred by its
own organization. The Board reserves the right to recover from the Contractor all disallowed costs resulting from
the audit.
For audits of fiscal years beginning after December 26, 2014, Contractors expending $750,000 or more in any
fiscal year in federal funds from all sources, direct and indirect, are required to have an audit conducted in
accordance with 2 CFR §200.501 — Audit Requirements."
For audits of fiscal years beginning prior to December 26, 2014, Contractors expending $500,000 or more in any
fiscal year in federal funds from all sources, direct and indirect, are required to have an audit conducted in
accordance with existing Federal audit requirements.
For -Profit entities:
Audits must include a report on the internal control related to the federal program, which should describe the
scope of testing of the internal control and the results of the tests.
The audit also must include a report on compliance, which includes an opinion (or disclaimer of opinion) on
whether the auditee complied with laws, regulations and the provisions of the award agreement that could have a
direct and material effect on the federal program.
The Contractor must send a copy of any required audit Reporting Package as described in existing Federal audit
requirements for audits of fiscal years beginning prior to December 26, 2014, or 2 CFR §200.512 — Report
Submission, for audits of fiscal years beginning after December 26, 2014, no later than nine (9) months after the
end of the Contractor's fiscal year(s) to:
Department of Commerce
ATTN: Public Works Board
P.O. Box 42525
1011 Plum Street SE
Olympia WA 98504-2525
In addition to sending a copy of the audit, when applicable, the Contractor must include:
• Corrective action plan for audit findings within three (3) months of the audit being received by the Board.
• Copy of the Management Letter.
If the Contractor displays, during the period covered by this Contract, any signs or markers identifying those entities
participating financially in the approved project, the sign or marker must identify the Washington State Public Works
Board Drinking Water State Revolving Fund and the Washington State Department of Health as participants in the
project.
As mandated by the Environmental Protection Agency, the Contractor agrees to comply with the requirements of
the Environmental Protection Agency's Program for Utilization of Small, Minority, and Women's Business
Enterprises in procurement under this Contract. The Contractor is required to follow the requirements identified in
Attachment III: Disadvantaged Business Enterprise Requirements.
By signing this Contract, the Contractor accepts the applicable MBE/WBE fair share objectives/goals negotiated
with Environmental Protection Agency by the Washington State Office of Minority and Women's Business
Enterprises. The Contractor attests to the fact that it is purchasing the same or similar construction, supplies,
services and equipment, in the same or similar relevant geographic buying market as Washington State Office of
Minority and Women's Business Enterprises. The goals for the utilization of disadvantaged businesses are stated in
Attachment III: Disadvantaged Business Enterprise Requirements.
The Contractor is required to furnish the Board and the Department of Health with such periodic reports as the
Department may request pertaining to the utilization of disadvantaged businesses.
During the performance of this contract, the Contractor shall comply with all federal and state nondiscrimination laws,
including, but not limited to Chapter 49.60 RCW, Washington's Law Against Discrimination, and 42 USC 12101 et seq,
the Americans with Disabilities Act (ADA).
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In the event of the Contractor's noncompliance or refusal to comply with any applicable nondiscrimination law,
regulation, or policy, this contract may be rescinded, canceled, or terminated in whole or in part, and the Contractor
may be declared ineligible for further contracts with the Board. The Contractor shall, however, be given a reasonable
time in which to cure this noncompliance.
The Contractor must also include the following terms and conditions in contracts with all contractors,
subcontractors, engineers, vendors, and any other entity for work or services listed in the declared SCOPE OF
WORK:
"The Contractor shall not discriminate on the basis of race, color, national origin or sex in the performance of this
Contract. The Contractor shall carry out applicable requirements of 40 CFR Part 33 in the award and
administration of contracts awarded under Environmental Protection Agency financial agreements. Failure by the
Contractor to carry out these requirements is a material breach of this Contract which may result in termination of
this Contract."
1.31. PROHIBITION STATEMENT
Pursuant to Section 106 of the Trafficking Victims Protection Act of 2000, as amended, the Contractor's
contractors, subcontractors, engineers, vendors, and any other entity shall comply with and include the following
terms and conditions in all contracts for work or services listed in the declared SCOPE OF WORK:
"All forms of trafficking in persons, illegal sex trade, or forced labor practices are prohibited in the
performance of this award or subawards under the award, or in any manner during the period of
time that the award is in effect. This prohibition applies to you as the recipient, your employees,
subrecipients under this award, and subrecipients' employees."
If any term of this section is violated, this contract may be terminated.
1.32. FALSE, INCORRECT, OR INCOMPLETE INFORMATION OR CLAIM
The Contractor warrants that the Contractor neither has submitted nor shall submit any information that is materially
false, incorrect, or incomplete to the Board.
The Contractor is advised that providing false, fictitious, or misleading information with respect to the receipt and
disbursements of Environmental Protection Agency funds is basis for criminal, civil, or administrative fines and/or
penalties.
1.33. LITIGATION
The Contractor warrants that there is no threatened or pending litigation, investigation, or legal action before any
court, arbitrator, or administrative agency that, if adversely determined, would have a materially adverse effect on
the Contractor's ability to repay the loan.
1.34. ESTABLISHMENT OF ADEQUATE RATES AND RESERVES
The Contractor agrees to provide a resolution adopting rate increases, capital assessments, or both, for the
services of the system that shall be sufficient to provide funds which, along with other revenues of the system, will
pay all operating expenses and debt repayments during the term of the loan. In addition, the Contractor shall create,
fund, and maintain reserves at least as required by the Water System Plan or Small Water System Management
Plan. The Board reserves the right, at anytime, to request proof of compliance of these requirements from the
Contractor.
1.35. SPECIAL CONDITIONS
If SPECIAL CONDITIONS are listed on the Contract Declarations Page then these conditions are herein
incorporated as part of the terms and requirements of this contract.
1.36. INVESTMENT GRADE AUDIT
For projects involving repair, replacement, or improvement of a wastewater treatment plant, or other public works
facility for which energy efficiency is obtainable, Contractor must undertake an investment grade audit per ESHB
1497.
Costs incurred as part of the investment grade audit are eligible project costs.
1.37. BUY AMERICAN
None of the funds made available to the Contractor shall be used for a project for the construction, alteration,
maintenance, or repair of a public water system or treatment works unless all of the iron and steel products used in
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the project are produced in the United States. This requirement applies to the entire project receiving a loan
agreement executed after January 17, 2014. Buy American does not apply to a project if the Department of Health
approves the engineering plans and specifications for the project, in that agency's capacity to approve such plans
and specifications prior to a project requesting bids, prior to January 17, 2014.
Waiver of the Buy American requirement may be considered if: 1) compliance would be inconsistent with the public
interest; or 2) the particular iron and steel products are not produced in the United States in sufficient and
reasonably available quantities and/or the particular iron and steel products are not of a satisfactory quality; or 3)
inclusion of iron and steel products produced in the United States will increase the cost of the overall project by
more than 25 percent. For consideration, a request for a waiver must be submitted to the Environmental Protection
Agency (EPA). Contractors shall submit the waiver request to Commerce, which will then submit the request to
EPA. EPA will post the waiver request and any other information available to EPA concerning the waiver request,
on EPA's public Internet website and allow for informal public input on the request for at least 15 days prior to
making a finding based on the request. The full text of the Buy American requirements appear at H.R. 3547,
Consolidated Appropriations Act, 2014.
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Part 2. GENERAL TERMS AND CONDITIONS
2.1. DEFINITIONS
As used throughout this Contract, the following terms shall have the meaning set forth below:
A. "Authorized Representative" shall mean the Public Works Board Chair and/or the designee authorized in writing
to act on the Chair's behalf.
B. ""Board" shall mean the Washington State Public Works Board created in Revised Code of Washington (RCW)
43.155.030, and which is a Party to the Contract
C. Contractor" shall mean the entity identified on the face sheet performing service(s) under this Contract, and
shall include all employees and agents of the Contractor.
D. "Modified Total Direct Costs (MTDC" shall mean 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.
E. "Personal Information" shall mean information identifiable to any person, including, but not limited to,
information that relates to a person's name, health, finances, education, business, use or receipt of
governmental services or other activities, addresses, telephone numbers, social security numbers, driver
license numbers, other identifying numbers, and any financial identifiers.
F. "State" shall mean the state of Washington.
G. "Subcontractor" shall mean one not in the employment of the Contractor, who is performing all or part of those
services under this Contract under a separate contract with the Contractor. The terms "subcontractor" and
"subcontractors" mean subcontractor(s) in any tier.
2.2. ADMINISTRATIVE COST ALLOCATION
Administrative costs that may be allowed are set forth in the Specific Terms and Conditions. Administrative services
shared by other programs shall be assigned to this Contract based on an allocation plan that reflects allowable
administrative costs that support services provided under each Contract administered by the Contractor. An
approved current federal indirect cost rate may be applied up to the maximum administrative budget allowed.
2.3. ALLOWABLE COSTS
Costs allowable under this Contract are actual expenditures according to an approved budget up to the maximum
amount stated on the Contract Award or Amendment Face Sheet.
2.4. ALL WRITINGS CONTAINED HEREIN
This Contract contains all the terms and conditions agreed upon by the parties. No other understandings, oral or
otherwise, regarding the subject matter of this Contract shall be deemed to exist or to bind any of the parties hereto.
2.5. AMENDMENTS
This Contract may be amended by mutual agreement of the parties. Such amendments shall not be binding unless
they are in writing and signed by personnel authorized to bind each of the parties.
2.6. AMERICANS WITH DISABILITIES ACT (ADA) OF 1990, PUBLIC LAW 101-336, ALSO REFERRED TO AS THE
"ADA" 28 CFR PART 35
The Contractor must comply with the ADA, which provides comprehensive civil rights protection to individuals with
disabilities in the areas of employment, public accommodations, state and local government services, and
telecommunications.
2.7. APPROVAL
This contract shall be subject to the written approval of the Board's Authorized Representative and shall not be
binding until so approved. The contract may be altered, amended, or waived only by a written amendment
executed by both parties.
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2.8. ASSIGNMENT
Neither this Contract, nor any claim arising under this Contract, shall be transferred or assigned by the Contractor
without prior written consent of the Board.
2.9. ATTORNEYS' FEES
Unless expressly permitted under another provision of the Contract, in the event of litigation or other action brought
to enforce Contract terms, each party agrees to bear its own attorneys fees and costs.
2.10. AUDIT
A. General Requirements
Contractors are to procure audit services based on the following guidelines.
The Contractor shall maintain its records and accounts so as to facilitate the audit requirement and shall ensure
that Subcontractors also maintain auditable records.
The Contractor is responsible for any audit exceptions incurred by its own organization or that of its
Subcontractors.
The Board reserves the right to recover from the Contractor all disallowed costs resulting from the audit
As applicable, Contractors required to have an audit must ensure the audits are performed in accordance with
Generally Accepted Auditing Standards (GAAS); Government Auditing Standards (the Revised Yellow Book)
developed by the Comptroller General.
Responses to any unresolved management findings and disallowed or questioned costs shall be included with
the audit report. The Contractor must respond to the Board requests for information or corrective action
concerning audit issues within thirty (30) days of the date of request.
B. Federal Funds Requirements - OMB Circular A-133 Audits of States. Local Governments and Non -Profit
Organizations
Grantees expending $750,000 or more in a fiscal year (that begins after December 26, 2014) in federal funds
from all sources, direct and indirect, are required to have an audit conducted in accordance with 2 CFR Part
200. For fiscal years beginning prior to December 26, 2014, Grantees are required to have an audit conducted
in accordance with Federal audit requirements. When state funds are also to be paid under this Agreement a
Schedule of State Financial Assistance as well as the required schedule of Federal Expenditure must be
included. Both schedules include:
Grantor agency name
Federal agency
Federal program name
Other identifying contract numbers
Catalog of Federal Domestic Assistance (CFDA) number (if applicable)
Grantor contract number
Total award amount including amendments (total grant award)
Current year expenditures
If the Contractor is a state or local government entity, the Office of the State Auditor shall conduct the audit.
Audits of non-profit organizations are to be conducted by a certified public accountant selected by the
Contractor in accordance with OMB Circular A-110 "Uniform Administrative Requirements for Grants and
Agreements with Institutions of Higher Education, Hospitals, and Other Non -Profit Organizations."
The Contractor shall include the above audit requirements in any subcontracts.
In any case, the Contractor's financial records must be available for review by the Board.
C. Documentation Requirements
The Contractor must send a copy of any required audit Reporting Package as described in OMB Circular A-133,
Part C, Section 320(c) no later than nine (9) months after the end of the Contractor's fiscal year(s) by sending a
scanned copy to auditreview( commerce.wa.gov or by sending a hard copy to:
Department of Commerce
ATTN: Audit Review and Resolution Office
1011 Plum Street
PO Box 42525
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Olympia WA 98504-2525
In addition to sending a copy of the audit, when applicable, the Contractor must include:
• Corrective action plan for audit findings within three (3) months of the audit being received by the Board.
• Copy of the Management Letter.
2.11. CERTIFICATION REGARDING DEBARMENT, SUSPENSION OR INELIGIBILITY AND VOLUNTARY
2.12.
2.13.
EXCLUSION—PRIMARY AND LOWER TIER COVERED TRANSACTIONS
A. Contractor, defined as the primary participant and it principals, certifies by signing these General Terms and
Conditions that to the best of its knowledge and belief that they:
1. Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded
from covered transactions by any Federal department or agency.
2. Have not within a three-year period preceding this contract, been convicted of or had a civil judgment
rendered against them for commission of fraud or a criminal offense in connection with obtaining,
attempting to obtain, or performing a public or private agreement or transaction, violation of Federal or State
antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of
records, making false statements, tax evasion, receiving stolen property, making false claims, or obstruction
of justice;
3. Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (federal,
state, or local) with commission of any of the offenses enumerated in paragraph (1)(b) of this section; and,
4. Have not within a three-year period preceding the signing of this contract had one or more public
transactions (federal, state, or local) terminated for cause of default.
B. Where the Contractor is unable to certify to any of the statements in this contract, the Contractor shall attach an
explanation to this contract.
C. The Contractor agrees by signing this contract that it shall not knowingly enter into any lower tier covered
transaction with a person who is debarred, suspended, declared ineligible, or voluntarily excluded from
participation in this covered transaction, unless authorized by the Board.
D. The Contractor further agrees by signing this contract that it will include the clause titled "Certification Regarding
Debarment, Suspension, Ineligibility and Voluntary Exclusion -Lower Tier Covered Transaction," as follows,
without modification, in all lower tier covered transactions and in all solicitations for lower tier covered
transactions:
LOWER TIER COVERED TRANSACTIONS
a) The lower tier contractor certifies, by signing this contract that neither it nor its principals is presently
debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation
in this transaction by any Federal department or agency.
b) Where the lower tier contractor is unable to certify to any of the statements in this contract, such contractor
shall attach an explanation to this contract.
E. The terms covered transaction, debarred, suspended, ineligible, lower tier covered transaction, person, primary
covered transaction, principal, and voluntarily excluded, as used in this section, have the meanings set out in
the Definitions and Coverage sections of the rules implementing Executive Order 12549. You may contact the
Board for assistance in obtaining a copy of these regulations.
All construction and rehabilitation projects must satisfy the requirements of applicable local, state, and federal
building, mechanical, plumbing, fire, energy and barrier -free codes. Compliance with the Americans with
Disabilities Act of 1990,,28 C.F.R. Part 35 will be required, as specified by the local building Department.
A. "Confidential Information" as used in this section includes:
1. All material provided to the Contractor by the Board that is designated as "confidential' by the Board;
2. All material produced by the Contractor that is designated as "confidential' by the Board; and
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3. All personal information in the possession of the Contractor that may not be disclosed under state or federal
law. "Personal information" includes but is not limited to information related to a person's name, health,
finances, education, business, use of government services, addresses, telephone numbers, social security
number, driver's license number and other identifying numbers, and "Protected Health Information" under
the federal Health Insurance Portability and Accountability Act of 1996 (HIPAA).
B. The Contractor shall comply with all state and federal laws related to the use, sharing, transfer, sale, or
disclosure of Confidential Information. The Contractor shall use Confidential Information solely for the purposes
of this Contract and shall not use, share, transfer, sell or disclose any Confidential Information to any third party
except with the prior written consent of the Board or as may be required by law. The Contractor shall take all
necessary steps to assure that Confidential Information is safeguarded to prevent unauthorized use, sharing,
transfer, sale or disclosure of Confidential Information or violation of any state or federal laws related thereto.
Upon request, the Contractor shall provide the Board with its policies and procedures on confidentiality. The
Board may require changes to such policies and procedures as they apply to this Contract whenever the Board
reasonably determines that changes are necessary to prevent unauthorized disclosures. The Contractor shall
make the changes within the time period specified by the Board. Upon request, the Contractor shall
immediately return to the Board any Confidential Information that the Board reasonably determines has not
been adequately protected by the Contractor against unauthorized disclosure.
C. Unauthorized Use or Disclosure. The Contractor shall notify the Board within five (5) working days of any
unauthorized use or disclosure of any confidential information, and shall take necessary steps to mitigate the
harmful effects of such use or disclosure.
2.14. CONFORMANCE
If any provision of this contract violates any statute or rule of law of the state of Washington, it is considered
modified to conform to that statute or rule of law.
2.15.
Unless otherwise provided, all Materials produced under this Contract shall be considered "works for hire" as
defined by the U.S. Copyright Act and shall be owned by the Board. The Board shall be considered the author of
such Materials. In the event the Materials are not considered "works for hire" under the U.S. Copyright laws, the
Contractor hereby irrevocably assigns all right, title, and interest in all Materials, including all intellectual property
rights, moral rights, and rights of publicity to the Board effective from the moment of creation of such Materials.
"Materials" means all items in any format and includes, but is not limited to, data, 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.
For Materials that are delivered under the Contract, but that incorporate pre-existing materials not produced under
the Contract, the Contractor hereby grants to the Board a nonexclusive, royalty -free, irrevocable license (with rights
to sublicense to others) in such Materials to translate, reproduce, distribute, prepare derivative works, publicly
perform, and publicly display. The Contractor warrants and represents that the Contractor has all rights and
permissions, including intellectual property rights, moral rights and rights of publicity, necessary to grant such a
license to the Board.
The Contractor shall exert all reasonable effort to advise the Board, at the time of delivery of Materials furnished
under this Contract, of all known or potential invasions of privacy contained therein and of any portion of such
document which was not produced in the performance of this Contract. The Contractor shall provide the Board with
prompt written notice of each notice or claim of infringement received by the Contractor with respect to any
Materials delivered under this Contract. The Board shall have the right to modify or remove any restrictive markings
placed upon the Materials by the Contractor.
2.16. DISALLOWED COSTS
The Contractor is responsible for any audit exceptions or disallowed costs incurred by its own organization or that of
its Subcontractors.
2.17. DISPUTES
Except as otherwise provided in this Contract, when a dispute arises between the parties and it cannot be resolved
by direct negotiation, either party may request a dispute hearing with the Director of the Board, who may designate
a neutral person to decide the dispute.
The request for a dispute hearing must:
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• be in writing;
• state the disputed issues;
• state the relative positions of the parties;
• state the Contractor's name, address, and Contract number; and,
• be mailed to the Director and the other party's (respondent's) Contract Representative within three (3) working
days after the parties agree that they cannot resolve the dispute.
The respondent shall send a written answer to the requestor's statement to both the Director or the Director's
designee and the requestor within five (5) working days.
The Director or designee shall review the written statements and reply in writing to both parties within ten (10)
working days. The Director or designee may extend this period if necessary by notifying the parties.
The decision shall not be admissible in any succeeding judicial or quasi-judicial proceeding.
The parties agree that this dispute process shall precede any action in a judicial or quasi-judicial tribunal.
Nothing in this Contract shall be construed to limit the parties' choice of a mutually acceptable alternate dispute
resolution (ADR) method in addition to the dispute hearing procedure outlined above.
2.18. DUPLICATE PAYMENT
The Contractor certifies that work to be performed under this contract does not duplicate any work to be charged
against any other contract, subcontract, or other source.
2.19. ETHICS/CONFLICTS OF INTEREST
In performing under this Contract, the Contractor shall assure compliance with the Ethics in Public Service Act
(Chapter 42.52 RCW) and any other applicable state or federal law related to ethics or conflicts of interest.
2.20. GOVERNING LAW AND VENUE
This Contract shall be construed and interpreted in accordance with the laws of the state of Washington, and the
venue of any action brought hereunder shall be in the Superior Court for Thurston County.
2.21. INDEMNIFICATION
To the fullest extent permitted by law, the Contractor shall indemnify, defend, and hold harmless the state of
Washington, the Board, all other agencies of the state and all officers, agents and employees of the state, from and
against all claims or damages for injuries to persons or property or death arising out of or incident to the
Contractor's performance or failure to perform the Contract. The Contractor's obligation to indemnify, defend, and
hold harmless includes any claim by the Contractor's agents, employees, representatives, or any Subcontractor or
its agents, employees, or representatives.
PW*A
`**31
The Contractor's obligation to indemnify, defend, and hold harmless shall not be eliminated by any actual or alleged
concurrent negligence of the state or its agents, agencies, employees and officers.
Subcontracts shall include a comprehensive indemnification clause holding harmless the Contractor, the Board, the
state of Washington, its officers, employees and authorized agents.
The Contractor waives its immunity under Title 51 RCW to the extent it is required to indemnify, defend and hold
harmless the state and its agencies, officers, agents or employees.
The parties intend that an independent contractor relationship will be created by this Contract. The Contractor and
its employees or agents performing under this Contract are not employees or agents of the State of Washington or
the Board. The Contractor will not hold itself out as or claim to be an officer or employee of the Board or of the
State of Washington by reason hereof, nor will the Contractor make any claim of right, privilege or benefit which
would accrue to such officer or employee under law. Conduct and control of the work will be solely with the
Contractor.
If statutorily allowed and if the Contractor chooses to charge Indirect under this grant, the Contractor shall provide
their indirect cost rate that has been negotiated between their entity and the Federal Government. If no such rate
exists a de minimis indirect cost rate of 10% of modified total direct costs (MTDC) will be used.
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2.24. INDUSTRIAL INSURANCE COVERAGE
The Contractor shall comply with all applicable provisions of Title 51 RCW, Industrial Insurance. If the Contractor
fails to provide industrial insurance coverage or fails to pay premiums or penalties on behalf of its employees as
may be required by law, The Board may collect from the Contractor the full amount payable to the Industrial
Insurance Accident Fund. The Board may deduct the amount owed by the Contractor to the accident fund from the
amount payable to the Contractor by the Board under this Contract, and transmit the deducted amount to the
Department of Labor and Industries, (L&I) Division of Insurance Services. This provision does not waive any of
L&I's rights to collect from the Contractor.
2.25. LAWS
The Contractor shall comply with all applicable laws, ordinances, codes, regulations, and policies of local, state, and
federal governments, as now or hereafter amended, including, but not limited to:
United States Laws. Regulations and Circulars (Federal)
A. Audits
Office of Management and Budget (OMB) Revised Circular A-133 "Audits of States, Local Governments, and
Non -Profit Organizations."
B. Environmental Protection and Review
Coastal Zone Management Act of 1972, 16 USC.§§1451-1464HUD's implementing regulations at 24 CFR parts
50 or 58, as appropriate.
Lead Based Paint Poisoning Prevention Act, 42 USC 4821-4846 also 24 CFR 982.4010).
National Environmental Policy Act of 1969, 42 USC4321 et seq. and the Implementing Regulations of 24 CFR
58 (HUD) and 40 CFR 1500-1508 (Council on Environmental Quality) Residential Lead -Based Paint Hazard
Reduction Act of 1992, 42 USC 4851-4856.
C. Flood Plains
Flood Disaster Protection Act of 1973, 42 USC 4001-4128.
D. Labor and Safety Standards
All Rental Units Assisted with Federal Funds Must Meet the Section 8 Housing Quality Standards (HOS) and
Local Housing Code Requirements for the duration of the Affordability Period.
Convict Labor, 18 USC 751, 752, 4081, 4082.
Davis Bacon Act, 40 USC 276a -276a-5.
Drug -Free Workplace Act of 1988, 41 USC 701 et seq.
Federal Fair Labor Standards Act, 29 USC 201 et seq.
Work Hours and Safety Act of 1962, 40 USC 327-330 and Department of Labor Regulations, 29 CFR Part 5.
Title IV of the Lead Based Paint Poisoning Prevention Act, 42 USC 4831, 24 CFR Part 35.
E. Laws against Discrimination
Age Discrimination Act of 1975, Public Law 94-135, 42 USC 6101-07, 45 CFR Part 90 Nondiscrimination in
Federally Assisted Programs.
Americans with Disabilities Act of 1990, Public Law 101-336.
Equal Employment Opportunity, Executive Order 11246, as amended by Executive Order 11375 and
supplemented in U.S. Department of Labor Regulations, 41 CFR Chapter 60.
Executive Order 11246, as amended by EO 11375, 11478, 12086 and 12102.
Fair Housing Act (42 USC 3601-19) and implementing regulations at 24 CFR part 100.Section 504 of the
Rehabilitation Act of 1973 and implementing regulations at 24 CFR part 8.
Fair Housing, Title VIII of the Civil Rights Act of 1968, Public Law 90-284, 42 USC 3601-19.
Handicapped Employees of Government Contractors, Rehabilitation Act of 1973, Section 503, 29 USC 793.
Handicapped Recipients of Federal Financial Assistance, Rehabilitation Act of 1973, Section 504, 29 USC 794.
Minority Business Enterprises, Executive Order 11625, 15 USC 631.
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Minority Business Enterprise Development, Executive Order 12432, 48 FR 32551.
Nondiscrimination and Equal Opportunity, 24 CFR 5.105(a).
Nondiscrimination in Benefits, Title VI of the Civil Rights Act of 1964, Public Law 88-352, 42 USC 2002d et seq,
24 CFR Part 1.
Nondiscrimination in Employment, Title VII of the Civil Rights Act of 1964, Public Law 88-352.
Nondiscrimination in Federally Assisted Programs.
Nondiscrimination in Federally Assisted Construction Contracts, Executive Order 11246, 42 USC 2000e, as
amended by Executive Order 11375, 41 CFR Chapter 60.
Section 3, Housing and Urban Development Act of 1968,12 USC 1701 u (See 24 CFR 570.607(b)).
F. Office of Management and Budget Circulars
Cost Principles for State, Local and Indian Tribal Governments, OMB Circular A-87, 2 CFR, Part 225.
Cost Principles for Nonprofit Organizations, OMB Circular A-122, (if the Contractor is a nonprofit organization).
Grants and Cooperative Agreements with State and Local Governments, OMB Circular A-102, (if the Contractor
is a local government or federally recognized Indian tribal government).
Uniform Administrative Requirements for Grants and Other Agreements with Institutions of Higher Education,
Hospitals and Other Nonprofit Organizations, OMB Circular A-110.
G. Other
Anti -Kickback Act, 18 USC 874; 40 USC 276b, 276c; 41 USC 51-54.
H.R. 3547, Consolidated Appropriations Act, 2014.
Governmental Guidance for New Restrictions on Lobbying; Interim Final Guidance, Federal Register 1, Vol. 54,
No. 243\Wednesday, December 20, 1989.
Hatch Political Activity Act, 5 USC 1501-8.
Lobbying and Disclosure, 42 USC 3537a and 3545 and 31 USC 1352 (Byrd Anti -Lobbying Amendment). 31
USC 1352 provides that Contractors who apply or bid for an award of $100,000 or more must file the
required certification. Each tier certifies to the tier above that it will not and has not used Federal
appropriated funds to pay any person or organization for influencing or attempting to influence an officer or
employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a
member of Congress in connection with obtaining any Federal contract, grant or other award covered by 31
USC 1352. Each tier must disclose any lobbying with non -Federal funds that takes place in connection with
obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the recipient.
Non -Supplanting Federal Funds.
Section 8 Housing Assistance Payments Program.
H. Privacy
Privacy Act of 1974, 5 USC 522a.
I. Relocation
Uniform Relocation Assistance and Real Property Acquisition Policy Act of 1970 and implementing regulations
at 49 CFR part 24.
Section 104(d) of the Housing and Community Development Act of 1974 and the implementing regulations at
24 CRF part 570.
Washington State Laws and Regulations
A. Affirmative Action, RCW 41.06.020.
B. Boards of Directors or Officers of Non -Profit Corporations — Liability - Limitations, RCW 4.24.264.
C. Disclosure -Campaign Finances -Lobbying, Chapter 42.17 RCW.
D. Discrimination -Human Rights Commission, Chapter 49.60 RCW.
E. Ethics in Public Service, Chapter 42.52 RCW.
F. Affordable Housing Program, Chapter 43.185 RCW
G. Interlocal Cooperation Act, Chapter 39.34 RCW.
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H. Noise Control, Chapter 70.107 RCW.
I. Office of Minority and Women's Business Enterprises, Chapter 39.19 RCW and Chapter 326-02 WAC.
J. Open Public Meetings act, Chapter 42.30 RCW.
K. Prevailing Wages on Public Works, Chapter 39.12 RCW.
L. Public Records Act, Chapter 42.56 RCW.
M. Relocation Assistance - Real Property Acquisition Policy, Chapter 8.26 RCW.
N. Shoreline Management Act of 1971, Chapter 90.58 RCW.
O. State Budgeting, Accounting, and Reporting System, Chapter 43.88 RCW.
P. State Building Code, Chapter 19.27 RCW and Energy -Related Building Standards, Chapter 19.27A RCW, and
Provisions in Buildings for Aged and Handicapped Persons, Chapter 70.92 RCW.
O. State Coastal Zone Management Program Section 309 Assessment and Strategy (Publication 01-06-003),
Shorelands and Environmental Assistance Program, Washington State Department of Ecology.
R. State Environmental Policy, Chapter 43.21 C RCW.
S. State Executive Order 05-05, Archeological and Cultural Resources.
2.26. LICENSING, ACCREDITATION AND REGISTRATION
The Contractor shall comply with all applicable local, state, and federal licensing, accreditation and registration
requirements or standards necessary for the performance of this Contract.
2.27. LIMITATION OF AUTHORITY
Only the Authorized Representative or Authorized Representative's designee by writing (designation to be made
prior to action) shall have the express, implied, or apparent authority to alter, amend, modify, or waive any clause or
condition of this Contract.
2.28. LOCAL PUBLIC TRANSPORTATION COORDINATION
Where applicable, Contractor shall participate in local public transportation forums and implement strategies
designed to ensure access to services.
2.29. NONCOMPLIANCE WITH NONDISCRIMINATION LAWS
During the performance of this Contract, the Contractor shall comply with all federal, state, and local
nondiscrimination laws, regulations and policies. In the event of the Contractor's non-compliance or refusal to
comply with any nondiscrimination law, regulation or policy, this contract may be rescinded, canceled or terminated
in whole or in part, and the Contractor may be declared ineligible for further contracts with the Board. The
Contractor shall, however, be given a reasonable time in which to cure this noncompliance. Any dispute may be
resolved in accordance with the "Disputes' procedure set forth herein.
2.30. NOTIFICATION OF TENANT RIGHTS/RESPONSIBILITIES
The Contractor shall provide all tenants, if any, with information outlining tenant rights and responsibilities under the
Washington State Landlord Tenant laws, Title 59, Revised Code of Washington.
The Contractor shall also provide all occupants of property acquired with U.S. Department of Housing and Urban
Development (HUD) funds notice regarding their eligibility for relocation assistance. Such notices will be provided
as required by the Uniform Relocation Assistance and Real Property Acquisition Act of 1970, as amended and
referenced in 49 CFR part 24 and Section 104(d) of the Housing and Community Development Act of 1974, as
amended and referenced in 24 CFR 570 and noted in HUD's Handbook No. 1378. Notifications will include but not
be limited to:
• General Information Notice
• Notice of Displacement/Non-Displacement
2.31. POLITICAL ACTIVITIES
Political activity of Contractor employees and officers are limited by the State Campaign Finances and Lobbying
provisions of Chapter 42.17 RCW and the Federal Hatch Act, 5 USC 1501 - 1508.
No funds may be used for working for or against ballot measures or for or against the candidacy of any person for
public office.
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2.32. PREVAILING WAGE LAWS
All contractors and subcontractors performing work on a construction project funded through this agreement shall
comply with prevailing wage laws by paying the higher of state or federal prevailing wages according to:
State Prevailing Wages on Public Works, Chapter 39.12 RCW, as applicable to the Project funded by this
contract, including but not limited to the filing of the "Statement of Intent to Pay Prevailing Wages' and "Affidavit of
Wages Paid" as required by RCW 39.12.040. The Contractor shall maintain records sufficient to evidence
compliance with Chapter 39.12 RCW, and shall make such records available for the Board's review upon request;
or
The Davis Bacon Act, 40 USC. 276a -276a-5 and related federal acts provide that all laborers and mechanics
employed by contractors or subcontractors in the performance shall be paid wages at rates not less than those
prevailing on similar construction in the locality as determined by the Secretary of Labor.
2.33. PROCUREMENT STANDARDS FOR FEDERALLY FUNDED PROGRAMS
A Contractor which is a local government or Indian Tribal government must establish procurement policies and
procedures in accordance with OMB Circulars A-102, Uniform Administrative Requirements for Grants in Aid for
State and Local Governments, for all purchases funded by this Contract.
A Contractor which is a nonprofit organization shall establish procurement policies in accordance with OMB Circular
A-110, Uniform Administrative Requirements for Grants and Agreements with Nonprofit Agencies, for all purchases
funded by this Contract.
The Contractor's procurement system should include at least the following:
1. A code or standard of conduct that shall govern the performance of its officers, employees, or agents engaged
in the awarding of contracts using federal funds.
2. Procedures that ensure all procurement transactions shall be conducted in a manner to provide, to the
maximum extent practical, open and free competition.
3. Minimum procedural requirements, as follows:
a. Follow a procedure to assure the avoidance of purchasing unnecessary or duplicative items.
b. Solicitations shall be based upon a clear and accurate description of the technical requirements of the
procured items.
c. Positive efforts shall be made to use small and minority-owned businesses.
d. The type of procuring instrument (fixed price, cost reimbursement) shall be determined by the Contractor,
but must be appropriate for the particular procurement and for promoting the best interest of the program
involved.
e. Contracts shall be made only with reasonable subcontractors who possess the potential ability to perform
successfully under the terms and conditions of the proposed procurement.
f. Some form of price or cost analysis should be performed in connection with every procurement action.
g. Procurement records and files for purchases shall include all of the following:
1) Contractor selection or rejection.
2) The basis for the cost or price.
3) Justification for lack of competitive bids if offers are not obtained.
h. A system for contract administration to ensure Contractor conformance with terms, conditions and
specifications of this Contract, and to ensure adequate and timely follow-up of all purchases.
4. Contractor and Subcontractor must receive prior approval from the Board for using funds from this Contract to
enter into a sole source contract or a contract where only one bid or proposal is received when value of this
contract is expected to exceed $5,000.
Prior approval requests shall include a copy of proposed contracts and any related procurement documents and
justification for non-competitive procurement, if applicable.
2.34. PROHIBITION AGAINST PAYMENT OF BONUS OR COMMISSION
The funds provided under this Contract shall not be used in payment of any bonus or commission for the purpose of
obtaining approval of the application for such funds or any other approval or concurrence under this Contract
provided, however, that reasonable fees or bona fide technical consultant, managerial, or other such services, other
than actual solicitation, are not hereby prohibited if otherwise eligible as project costs.
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2.35. PUBLICITY
The Contractor agrees not to publish or use any advertising or publicity materials in which the state of Washington
or the Board's name is mentioned, or language used from which the connection with the state of Washington's or
the Board's name may reasonably be inferred or implied, without the prior written consent of the Board .
2.36. RECAPTURE
In the event that the Contractor fails to perform this contract in accordance with state laws, federal laws, and/or the
provisions of this contract, The Board reserves the right to recapture funds in an amount to compensate the Board
for the noncompliance in addition to any other remedies available at law or in equity.
Repayment by the Contractor of funds under this recapture provision shall occur within the time period specified by
the Board. In the alternative, The Board may recapture such funds from payments due under this contract.
2.37. RECORDS MAINTENANCE
The Contractor shall maintain all books, records, documents, data and other evidence relating to this Contract and
performance of the services described herein, including but not limited to accounting procedures and practices
which sufficiently and properly reflect all direct and indirect costs of any nature expended in the performance of this
Contract. Contractor shall retain such records for a period of six years following the date of final payment.
If any 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 finally resolved.
2.38. REGISTRATION WITH DEPARTMENT OF REVENUE
If required by law, the Contractor shall complete registration with the Washington State Department of Revenue.
2.39. RIGHT OF INSPECTION
At no additional cost all records relating to the Contractor's performance under this Contract shall be subject at all
reasonable times to inspection, review, and audit by the Board, the Office of the State Auditor, and federal and state
officials so authorized by law, in order to monitor and evaluate performance, compliance, and quality assurance
under this Contract. The Contractor shall provide access to its facilities for this purpose.
2.40. SAVINGS
In the event funding from state, federal, or other sources is withdrawn, reduced, or limited in any way after the
effective date of this Contract and prior to normal completion, The Board may terminate the Contract under the
"Termination for Convenience" clause, without the ten business day notice requirement. In lieu of termination, the
Contract may be amended to reflect the new funding limitations and conditions.
2.41. SEVERABILITY
If any provision of this Contract or any provision of any document incorporated by reference shall be held invalid,
such invalidity shall not affect the other provisions of this Contract that can be given effect without the invalid
provision, if such remainder conforms to the requirements of law and the fundamental purpose of this Contract and
to this end the provisions of this Contact are declared to be severable.
2.42. SUBCONTRACTING
The Contractor may only subcontract work contemplated under this Contract if it obtains the prior written approval of
the Board.
If the Board approves subcontracting, the Contractor shall maintain written procedures related to subcontracting, as
well as copies of all subcontracts and records related to subcontracts. For cause, the Board in writing may: (a)
require the Contractor to amend its subcontracting procedures as they relate to this Contract; (b) prohibit the
Contractor from subcontracting with a particular person or entity; or (c) require the Contractor to rescind or amend a
subcontract.
Every subcontract shall bind the Subcontractor to follow all applicable terms of this Contract. The Contractor is
responsible to the Board if the Subcontractor fails to comply with any applicable term or condition of this Contract.
The Contractor shall appropriately monitor the activities of the Subcontractor to assure fiscal conditions of this
Contract. In no event shall the existence of a subcontract operate to release or reduce the liability of the Contractor
to the Board for any breach in the performance of the Contractor's duties.
Every subcontract shall include a term that the Board and the State of Washington are not liable for claims or
damages arising from a Subcontractor's performance of the subcontract.
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2.43. SURVIVAL
The terms, conditions, and warranties contained in this Contract that by their sense and context are intended to
survive the completion of the performance, cancellation or termination of this Contract shall so survive.
2.44. TAXES
All payments accrued on account of payroll taxes, unemployment contributions, the Contractor's income or gross
receipts, any other taxes, insurance or expenses for the Contractor or its staff shall be the sole responsibility of the
Contractor.
2.45. TERMINATION FOR CAUSE/SUSPENSION
In event the Board determines that the Contractor failed to comply with any term or condition of this Contract, the
Board may terminate the Contract in whole or in part upon written notice to the Contractor. Such termination shall
be deemed "for cause." Termination shall take effect on the date specified in the notice.
In the alternative, the Board upon written notice may allow the Contractor a specific period of time in which to
correct the non-compliance. During the corrective -action time period, the Board may suspend further payment to
the Contractor in whole or in part, or may restrict the Contractor's right to perform duties under this Contract.
Failure by the Contractor to take timely corrective action shall allow the Board to terminate the Contract upon written
notice to the Contractor.
"Termination for Cause" shall be deemed a "Termination for Convenience" when the Board determines that the
Contractor did not fail to comply with the terms of the Contract or when the Board determines the failure was not
caused by the Contractor's actions or negligence.
If the Contract is terminated for cause, the Contractor shall be liable for damages as authorized by law, including,
but not limited to, any cost difference between the original contract and the replacement contract, as well as all
costs associated with entering into the replacement contract (i.e., competitive bidding, mailing, advertising, and staff
time).
2.46. TERMINATION FOR CONVENIENCE
Except as otherwise provided in this Contract, the Board may, by ten (10) business days written notice, beginning
on the second day after the mailing, terminate this Contract, in whole or in part. If this Contract is so terminated, the
Board shall be liable only for payment required under the terms of this Contract for services rendered or goods
delivered prior to the effective date of termination.
2.47. TERMINATION PROCEDURES
After receipt of a notice of termination, except as otherwise directed by the Board, the Contractor shall:
A. Stop work under the Contract on the date, and to the extent specified, in the notice;
B. Place no further orders or subcontracts for materials, services, or facilities related to the Contract;
C. Assign to the Board all of the rights, title, and interest of the Contractor under the orders and subcontracts so
terminated, in which case the Board has the right, at its discretion, to settle or pay any or all claims arising out of
the termination of such orders and subcontracts. Any attempt by the Contractor to settle such claims must have
the prior written approval of the Board; and
D. Preserve and transfer any materials, contract deliverables and/or the Board property in the Contractor's
possession as directed by the Board.
Upon termination of the Contract, the Board shall pay the Contractor for any service provided by the Contractor
under the Contract prior to the date of termination. The Board may withhold any amount due as the Board
reasonably determines is necessary to protect the Board against potential loss or liability resulting from the
termination. The Board shall pay any withheld amount to the Contractor if the Board later determines that loss or
liability will not occur.
The rights and remedies of the Board under this section are in addition to any other rights and remedies provided
under this Contract or otherwise provided under law.
2.48. WAIVER
Waiver of any default or breach shall not be deemed to be a waiver of any subsequent default or breach. Any
waiver shall not be construed to be a modification of the terms of this Contract unless stated to be such in writing
and signed by Authorized Representative of the Board.
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2.49. WORK HOURS AND SAFETY STANDARDS
The Contract Work Hours and Safety Standards Act (40 USC 327 -333) -Where applicable, all contracts awarded by
recipients in excess of $100,000 for construction and other purposes that involve the employment of mechanics or
laborers must include a provision for compliance with Section 102 and 107 of the Contract Work Hours Safety
Standards Act (40 USC 327-333), as supplemented by Department of Labor regulations (29 CFR part 5). Under
Section 102 of the Act, each subcontractor is required to compute the wages of every mechanic and laborer on the
basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that
the worker is compensated at a rate of not less than 1 '/ times the basic rate of pay for all hours worked in excess
of 40 hours in the work week. Section 107 of the Act is applicable to construction work and provides that no laborer
or mechanic is required to work in surroundings or under working conditions which are unsanitary, hazardous, or
dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily
available on the open market, or contracts for transportation or transmission of intelligence.
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ATTACHMENT I: ATTORNEY'S CERTIFICATION
DRINKING WATER STATE REVOLVING FUND
(MUNICIPAL)
L-p�Gq)c (b. �`r`C
City of Pasco
DM15-952-037
hereby certify:
I am an attorney at law admitted to practice in the State of Washington and the duly appointed attorney of the
Contractor identified on the Declarations Page of the Contract identified above; and
I have also examined any and all documents and records, which are pertinent to the Contract, including the
application requesting this financial assistance.
Based on the foregoing, it is my opinion that:
1. The Contractor is a public body, properly constituted and operating under the laws of the State of
Washington, empowered to receive and expend federal, state and local funds, to contract with the State of
Washington, and to receive and expend the funds involved to accomplish the objectives set forth in their
application.
2. The Contractor is empowered to accept the Drinking Water State Revolving Fund financial assistance and
to provide for repayment of the loan as set forth in the loan agreement.
3. There is currently no litigation in existence seeking to enjoin the commencement or completion of the
above-described public facilities project or to enjoin the Contractor from repaying the Drinking Water State
Revolving Fund loan extended by the Public Works Board with respect to such project. The Contractor is
not a party to litigation, which will materially affect its ability to repay such loan on the terms contained in
the loan agreement.
4. Assumption of this obligation would not exceed statutory and administrative rule debt limitations applicable
to the Contractor.
Signature of Attorney
LgACIA� DJ. \14-<<"
Name
Address
,A•!y t'F, zd5
Date
City of Pasco Page 29 Attachment I: Attorney's Certification
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City of Pasco Page 30 Attachment I: Attorney's Certification
DM15-952-037 4/27/2015 DWSRF NT Loan Contract (Municipal)
ATTACHMENT II: FEDERAL AND STATE REQUIREMENTS
1) Environmental Authorities
a) Archeological and Historic Preservation Act of 1974, Public Law 86-523 as amended
b) Clean Air Act, Public Law 84-159 as amended
c) Coastal Zone Management Act, Public Law 92-583 as amended
d) Endangered Species Act, Public Law 93-205 as amended
e) Environmental Justice, Executive Order 12898
f) Floodplain Management, Executive Order 11988 as amended by Executive Order 12148
g) Protection of Wetlands, Executive Order 11990
h) Farmland Protection Policy Act, Public Law 97-98
i) Fish and Wildlife Coordination Act, Public Law 85-624 as amended
j) National Historic Preservation Act of 1966, Public Law 89-665 as amended
k) Safe Drinking Water Act, Public Law 93-523 as amended
1) Wild and Scenic Rivers Act, Public Law 90-542 as amended
2) Economic and Miscellaneous Authorities
a) Demonstration Cities and Metropolitan Development Act of 1996, Public Law 89-754 as amended, Executive
Order 12372
b) Procurement Prohibitions under Section 306 of the Clean air Act and Section 508 of the Clean Water Act,
including Executive Order 11738, Administration of the Clean Air Act and the Federal Water Pollution Control Ac
with Respect to Federal Contracts, Grants, or Loans
c) Uniform Relocation and Real Property Policies Act, Public Law 91-646 as amended
d) Debarment and Suspension, Executive Order 12549
e) H.R. 3547, Consolidated Appropriations Act, 2014.
3) Social Policy Authorities
a) Age Discrimination Act of 1975, Public Law 94-135
b) Title VI of the Civil Rights Act of 1964, Public Law 88-352
c) Section 13 of the Federal Water Pollution Control Act Amendments of 1972, Public Law 92-500 (the Clean Water
Act)
d) Section 504 of the Rehabilitation Act of 1973, Public Law 93-112 (including Executive Orders 11914 and 11250)
e) Equal Employment Opportunity, Executive Order 11246
f) Disadvantaged Business Enterprise, Public Law 101-549 (the Clean Air Act), and Public Law 102-389 (the Clean
Water Act)
g) Section 129 of the Small Business Administration Reauthorization and Amendment Act of 1988, Public Law 100-
590
4) State Laws
a) Chapter 36.70A RCW, Growth Management Act
b) Chapter 39.80 RCW, Contracts for Architectural and Engineering Services
c) Chapter 39.12 RCW, Washington State Public Works Act
d) Chapter 43.20 RCW, State Board of Health
e) Chapter 43.70 RCW, Department of Health
f) Chapter 43.155 RCW, Public Works Project
g) Chapter 70.116 RCW, Public Water Systems Coordination Act of 1977
h) Chapter 70.119 RCW, Public Water Supply Systems Certification and Regulation of Operations
i) Chapter 70.119A RCW, Public Water Systems, Penalties & Compliances
j) Chapter 246-290 WAC, Group A Public Water Systems
k) Chapter 246-291 WAC, Group B Public Water Systems
1) Chapter 246-292 WAC, Waterworks Operator Certification Regulations
m) Chapter 246-293 WAC, Water Systems Coordination Act
n) Chapter 246-294 WAC, Drinking Water Operating Permits
o) Chapter 246-295 WAC, Satellite System Management Agencies
p) Chapter 246-296 WAC Drinking Water State Revolving Fund Loan Program
q) Chapter 173-160 WAC, Minimum Standards for Construction & Maintenance of Wells
r) Title 173 WAC, Department of Ecology Rules
s) Title 40 Part 141 Code of Federal Regulations, Federal National Primary Drinking Water Regulations (Section
Adopted by Reference)
City of Pasco Page 31 Attachment II: Federal and State Requirements
DM15-952-037 4/27/2015 DWSRF NT Loan Contract (Municipal)
of Pasco Page 32 Attachment II: Federal and State Re
5-952-037 4/27/2015 DWSRF NT Loan Contract
ATTACHMENT III: DISADVANTAGED BUSINESS ENTERPRISE
REQUIREMENTS
GENERAL COMPLIANCE, 40 CFR, Part 33
The Contractor agrees to comply with the requirements of Environmental Protection Agency's Program for Utilization of
Small, Minority and Women's Business Enterprises (MBE/WBE) in procurement under this Contract, contained in 40 CFR,
Part 33.
FAIR SHARE OBJECTIVES, 40 CFR, Part 33, Subpart D
The following are exemptions from the fair share objective Requirements:
• Grant and loan recipients receiving a total of $250K or less in EPA financial assistance in a given fiscal year.
• Tribal recipients of Performance Partnership Eligible grants under 40 CFR Part 35, Subpart B.
o There is a 3 -year phase in period for the requirement to negotiate fair share goals for Tribal and Insular
Area recipients.
• Recipients of Technical Assistance Grants.
The Fair Share Objectives or goals for the utilization of disadvantaged businesses negotiated with EPA by the WA Office
of Minority Women Business are stated below.
Construction
10% MBE
6% WBE
Supplies
8% MBE
4% WBE
Equipment
8% MBE
4% WBE
Purchased Services
10% MBE
4%WBE
By signing this Contract, the Contractor is accepting the fair share objectives/goals stated above and attests to the fact
that it is purchasing the same or similar construction, supplies, services and equipment, in the same or similar relevant
geographic buying market as WA Office of Minority Women Business goal is being adopted.
SIX GOOD FAITH EFFORTS, 40 CFR, Part 33, Subpart C
Pursuant to 40 CFR, Section 33.301, the Contractor agrees to make the following good faith efforts whenever procuring
construction, equipment, services and supplies under an EPA financial assistance agreement, and to ensure that sub -
recipients, loan recipients, and prime contractors also comply.
Records documenting compliance with the six good faith efforts shall be retained. The six good faith efforts shall include:
A. Ensure Disadvantaged Business Enterprises are made aware of contracting opportunities to the fullest extent
practicable through outreach and recruitment activities. For Indian Tribal, State and Local Government recipients,
this will include placing the Disadvantaged Business Enterprises on solicitation lists and soliciting them whenever
they are potential sources.
B. Make information on forthcoming opportunities available to Disadvantaged Business Enterprises and arrange time
frames for contracts and establish delivery schedules, where the requirements permit, in a way that encourages
and facilitates participation by Disadvantaged Business Enterprises in the competitive process. This includes,
whenever possible, posting solicitations for bids or proposals for a minimum of thirty (30) calendar days before the
bid or proposal closing date.
C. Consider in the contracting process whether firms competing for large contracts could subcontract with
Disadvantaged Business Enterprises. For Indian Tribal, State and Local Government recipients, this will include
dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum
participation by Disadvantaged Business Enterprises in the competitive process.
D. Encourage contracting with a consortium of Disadvantaged Business Enterprises when a contract is too large for
one of these firms to handle individually.
E. Use the services and assistance of the Small Business Administration and the Minority Business Development
Agency of the Department of Commerce.
F. If the prime contractor awards subcontracts, also require the prime contractor to take the five good faith efforts in
paragraphs A through E above.
City of Pasco Page 33 Attachment III: DBE Requirements
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MBE/WBE REPORTING, 40 CFR, Part 33, Sections 33.502 and 33.503
Contractor is required to submit MBE/WBE participation reports to the Board and/or the Department of Health, on a
quarterly basis, beginning with the Federal fiscal year reporting period the Contractor receives the award and continuing
until the project is completed.
CONTRACT ADMINISTRATION PROVISIONS, 40 CFR, Section 33.302
The Contractor agrees to comply with the contract administration provisions of 40 CFR, Section 33.302.
The Contractor agrees to require all general contractors to provide forms: EPA Form 6100-2 DBE Subcontractor
Participation Form and EPA Form 6100-3 DBE Subcontractor Performance Form to all its Disadvantaged Business
Enterprise subcontractors, engineers, vendors, and any other entity for work or services listed in the declared SCOPE OF
WORK. These two (2) forms may be obtained from the EPA Office of Small Business Program's website on the internet at
hftD://www.eDa.aov/osbD/arants.htm.
The Contractor agrees to require all general contractors to complete and submit to the Contractor and Environmental
Protection Agency EPA Form 6100-4 DBE Subcontractor Utilization Form beginning with the Federal fiscal year reporting
period the Contractor receives the award and continuing until the project is completed. Only procurements with certified
MBEANBEs are counted toward a Contractor's MBE/WBE accomplishments.
BIDDERS LIST, 40 CFR, Section 33.501(b) and (c)
The Contractor is also required to create and maintain a bidders list if the Contractor of the loan is subject to, or chooses
to follow, competitive bidding requirements. Please see 40 CFR, Section 33.501 (b) and (c) for specific requirements and
exemptions.
Section 33.501(b) of the rule is as follows:
A recipient of a Continuing Environmental Program Grant or other annual grant must create and maintain a bidders list. In
addition, a recipient of an EPA financial assistance agreement to capitalize a revolving loan fund also must require entities
receiving identified loans to create and maintain a bidders list if the recipient of the loan is subject to, or chooses to follow,
competitive bidding requirements. The purpose of a bidders list is to provide the recipient and entities receiving identified
loans who conduct competitive bidding with as accurate a database as possible about the universe of MBE/WBE and non-
MBE/W BE prime and subcontractors. The list must include all firms that bid or quote on prime contracts or bid or quote on
subcontracts under EPA assisted projects, including both MBE/WBEs.
The bidders list must be kept until the grant project period has expired and the recipient is no longer receiving EPA
funding under the grant. For entities receiving identified loans, the bidders list must be kept until the project period for the
identified loan has ended. The following information must be obtained from all prime and subcontractors:
(1) Entity's name with point of contact;
(2) Entity's mailing address, telephone number, and e-mail address;
(3) The procurement on which the entity bid or quoted, and when; and
(4) Entity's status as a MBE/WBE' or non-MBENVBE.
The exemption found at § 33.501(c) is as follows:
A recipient of an EPA financial assistance agreement in the amount of $250,000 or less for any single assistance
agreement, or of more than one financial assistance agreement with a combined total of $250,000 or less in any one fiscal
year, is exempt from the paragraph (b) of this section requirement to create and maintain a bidders list. Also, a recipient
under the CWSRF, DWSRF, or BCRLF Program is not required to apply the paragraph (b) of this section bidders list
requirement of this subpart to an entity receiving an identified loan in an amount of $250,000 or less, or to an entity
receiving more than one identified loan with a combined total of $250,000 or less in any one fiscal year. This exemption is
limited to the paragraph (b) of this section bidders list requirements of this subpart.
' Qualified Women and Minority business enterprises may be found on the Internet at www.omwbema.gov or by contacting the Washington State Office
of Minority and Women's Enterprises at 360-704-1181.
City of Pasco Page 34 Attachment III: DBE Requirements
DM15-952-037 4/27/2015 DWSRF NT Loan Contract (Municipal)
ATTACHMENT IV: CERTIFICATION REGARDING
DEBARMENT, SUSPENSION, AND OTHER RESPONSIBILITY MATTERS
oEPA United States
\ Environmental Protection Agency
EPA Project Control Number
United States Environmental Protection Agency
Washington, DC 20460
The prospective participant certifies to the best of its knowledge and belief that it and the principals:
(a) Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from
covered transactions by any Federal department or agency;
(b) Have not Within a three year period preceding this proposal been convicted of or had a civil judgment rendered
against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or
performing a public (Federal, State, or local) transaction or contract under a public transaction: violation of Federal or
State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records,
making false statements, or receiving stolen property;
(c) Are not presently indicted for otherwise criminally or civilly charged by a government entity (Federal, State, or local)
with commission of any of the offenses enumerated in paragraph (1)(b) of this certification; and
(d) Have not within a three-year period preceding this application/proposal had one or more public transactions (Federal,
State, or local) terminated for cause or default.
I understand that a false statement on this certification may be ground for rejection of this proposal or termination of the
award. In addition, under 18 USC Sec. 1001, a false statement may result in a fine of up to $10,000 or imprisonment for
up to 5 years, or both.
.ya ve 4"
Typed Name & Title of
ElI am unable to certify to the above statements. My explanation is attached.
EPA Form 5700-49 (11-88)
City of Pasco Page 35 Attachment IV: Certification Regarding Debarment
DM15-952-037 4/27/2015 DWSRF NT Loan Contract (Municipal)
City of Pasco Page 36 Attachment IV: Certification Regarding Debarment
DM15-952-037 4/27/2015 DWSRF NT Loan Contract (Municipal)
ATTACHMENT V: DWSRF ELIGIBLE PROJECT COSTS
Must be directly attributable to the project.
1. The costs for complying with the Uniform Relocation
Assistance and Real Property Acquisition Policies
Act of 1970.
2. DWSRF loan fees.
3. The purchase of a portion of another system's
capacity, if it is the most cost effective solution
(limited to publicly owned (municipal) systems).
4. Construction of reservoirs (clear wells) that are part
of the treatment process and are collocated with the
treatment facility.
5. Construction of distribution reservoirs (finished
water).
6. Cost associated with restructuring or consolidation of
existing water systems by publicly owned water
systems.
7. Main extensions to connect to safe and reliable
sources of drinking water.
8. Cost associated with collecting and preparing
environmental assessment documents to obtain local
permits.
9. Direct labor including related employee benefits:
a. Salaries and wages (at actual or average rates)
covering productive labor hours of employees of
the borrower (excluding the administrative
organization of the operating unit involved) for
periods of time actively or incidentally engaged
in pre -design engineering, design engineering,
construction engineering, acquisition of rights of
way, and the cleaning, sterilization or
bacteriological testing of water system
components prior to public use. The costs of
services rendered by employees generally
classified as administration/project management
of the loan are considered a direct cost only
when such employees are assigned the types of
services described above and shall be limited to
3% or less of the project loan amount.
b. Employee benefits relating to labor are
considered a direct cost of construction projects.
The following items may be included as
employee benefits:
• F.I.C.A. (Social Security) —employer's share.
• Retirement benefits.
• Hospital, health, dental, and other welfare
insurance.
• Life insurance.
• Industrial and medical insurance.
• Vacation.
• Holiday.
• Sick leave.
• Military leave and jury duty.
Employee benefits must be calculated as a
percentage of direct labor dollars. The
computation of predetermined percentage rates
to be applied to current labor costs must be
based on the average of total employee benefits
and total labor costs for the prior fiscal year and
adjusted by known current year variations.
c. Other than work identified in Number 9.a, no
costs associated with labor performed by the
borrower's employees, including force account
work, are eligible for financing assistance.
10. Contract engineering, planning, design, legal, and
financial planning services. The Board reserves the
right to declare ineligible legal costs that are
unreasonable and disproportionate to the project.
11. Contract construction work.
12. Direct vehicle and equipment charges at the actual
rental cost paid for the equipment or, in the case of
city or county -owned equipment, at the rental rates
established by the local government's "equipment
rental and revolving fund" following the methods
prescribed by the division of municipal corporations.
However, such costs must be charged on a uniform
basis to equipment used for all projects regardless of
the source of funding. Cities with a population of
eight thousand or less not using this type of fund are
allowed the same rates as used by the State
Department of Transportation.
13. Direct materials and supplies.
14. Other direct costs incurred for materials or services
acquired for a specific project are eligible costs and
may include, but are not limited to such items as:
a. Telephone charges.
b. Reproduction and photogrammetry costs.
c. Video and photography for project
documentation.
d. Computer usage.
e. Printing and advertising.
15. Other project related costs include:
• Competitive Bidding.
• Audit.
• Insurance.
• Prevailing wages.
• Attorney fees.
• Environmental Review.
• Archaeological Survey.
Water system plan costs are not eligible for
reimbursement. Small water system management
program and plan amendments costs are eligible for
reimbursement.
Projects may be designed to accommodate reasonable
growth. This is generally the 20 -year projection included
in the system's water system plan or small water system
management program.
City of Pasco Page 37 Attachment V: DWSRF Eligible Project Costs
DM15-952-037 4/27/2015 DWSRF NT Loan Contract (Municipal)
City of Pasco Page 38 Attachment V: DWSRF Eligible Project Costs
DMI 5-952-037 4/27/2015 DWSRF NT Loan Contract (Municipal)
ATTACHMENT VI: LABOR STANDARD PROVISIONS FOR
SUBRECIPIENTS THAT ARE GOVERNMENTAL ENTITIES
Wage Rate Requirements Under The Consolidated and Further Continuing Appropriations Act, 2013 (P.L. 113-6)
Preamble
With respect to the Clean Water and Safe Drinking Water State Revolving Funds, EPA provides capitalization grants to
each State which in turn provides subgrants or loans to eligible entities within the State. Typically, the subrecipients are
municipal or other local governmental entities that manage the funds. For these types of recipients, the provisions set
forth under Roman Numeral I, below, shall apply. Although EPA and the State remain responsible for ensuring
subrecipients' compliance with the wage rate requirements set forth herein, those subrecipients shall have the primary
responsibility to maintain payroll records as described in Section 3(ii)(A), below and for compliance as described in
Section 1-5.
Occasionally, the subrecipient may be a private for profit or not for profit entity. For these types of recipients, the
provisions set forth in Roman Numeral II, below, shall apply. Although EPA and the State remain responsible for ensuring
subrecipients' compliance with the wage rate requirements set forth herein, those subrecipients shall have the primary
responsibility to maintain payroll records as described in Section II-3(ii)(A), below and for compliance as described in
Section II -5.
I. Requirements Under The Consolidated and Further Continuina Appropriations Act. 2013 (P.L. 113-6)
For Subrecipients That Are Governmental Entities:
The following terms and conditions specify how recipients will assist EPA in meeting its Davis -Bacon (DB) responsibilities
when DB applies to EPA awards of financial assistance under the FY 2013 Continuing Resolution with respect to State
recipients and subrecipients that are governmental entities. If a subrecipient has questions regarding when DB applies,
obtaining the correct DB wage determinations, DB provisions, or compliance monitoring, it may contact Department of
Commerce. If a State recipient needs guidance, they may obtain additional guidance from DOL's web site at
hfto://www.dol.,qov/whd/.
1. Applicability of the Davis- Bacon (DB) prevailing wage requirements.
Under the FY 2013 Continuing Resolution, DB prevailing wage requirements apply to the construction, alteration, and
repair of treatment works carried out in whole or in part with assistance made available by a State water pollution control
revolving fund and to any construction project carried out in whole or in part by assistance made available by a drinking
water treatment revolving loan fund. If a subrecipient encounters a unique situation at a site that presents uncertainties
regarding DB applicability, the subrecipient must discuss the situation with the recipient State before authorizing work on
that site.
2. Obtaining Wage Determinations.
(a) Subrecipients shall obtain the wage determination for the locality in which a covered activity subject to DB will take
place prior to issuing requests for bids, proposals, quotes or other methods for soliciting contracts (solicitation) for
activities subject to DB. These wage determinations shall be incorporated into solicitations and any subsequent contracts.
Prime contracts must contain a provision requiring that subcontractors follow the wage determination incorporated into the
prime contract.
(i) While the solicitation remains open, the subrecipient shall monitor www.wdol.gov weekly to ensure that the
wage determination contained in the solicitation remains current. The subrecipients shall amend the
solicitation if DOL issues a modification more than 10 days prior to the closing date (i.e. bid opening) for the
solicitation. If DOL modifies or supersedes the applicable wage determination less than 10 days prior to the
closing date, the subrecipients may request a finding from the State recipient that there is not a reasonable
time to notify interested contractors of the modification of the wage determination. The State recipient will
provide a report of its findings to the subrecipient.
(ii) If the subrecipient does not award the contract within 90 days of the closure of the solicitation, any
modifications or supersedes DOL makes to the wage determination contained in the solicitation shall be
effective unless the State recipient, at the request of the subrecipient, obtains an extension of the 90 day
period from DOL pursuant to 29 CFR 1.6(c)(3)(iv). The subrecipient shall monitor www.wdol.gov on a weekly
basis if it does not award the contract within 90 days of closure of the solicitation to ensure that wage
determinations contained in the solicitation remain current.
(b) If the subrecipient carries out activity subject to DB by issuing a task order, work assignment or similar instrument to
an existing contractor (ordering instrument) rather than by publishing a solicitation, the subrecipient shall insert the
appropriate DOL wage determination from www.wdol.gov into the ordering instrument.
(c) Subrecipients shall review all subcontracts subject to DB entered into by prime contractors to verify that the prime
contractor has required its subcontractors to include the applicable wage determinations.
City of Pasco Page 39 Attachment VI: Labor Standards Provisions
DM15-952-037 4/27/2015 DWSRF NT Loan Contract (Municipal)
(d) As provided in 29 CFR 1.6(f), DOL may issue a revised wage determination applicable to a subrecipient's contract
after the award of a contract or the issuance of an ordering instrument if DOL determines that the subrecipient has failed
to incorporate a wage determination or has used a wage determination that clearly does not apply to the contract or
ordering instrument. If this occurs, the subrecipient shall either terminate the contract or ordering instrument and issue a
revised solicitation or ordering instrument or incorporate DOL's wage determination retroactive to the beginning of the
contract or ordering instrument by change order. The subrecipient's contractor must be compensated for any increases in
wages resulting from the use of DOL's revised wage determination.
3. Contract and Subcontract provisions.
(a) The Recipient shall insure that the subrecipient(s) shall insert in full in any contract in excess of $2,000 which is
entered into for the actual construction, alteration and/or repair, including painting and decorating, of a treatment work
under the CW SRF or a construction project under the DW SRF financed in whole or in part from Federal funds or in
accordance with guarantees of a Federal agency or financed from funds obtained by pledge of any contract of a Federal
agency to make a loan, grant or annual contribution (except where a different meaning is expressly indicated), and which
is subject to the labor standards provisions of any of the acts listed in § 5.1 or the FY 2013 Continuing Resolution, the
following clauses:
(1) Minimum wages.
(i) All laborers and mechanics employed or working upon the site of the work will be paid unconditionally and not less
often than once a week, and without subsequent deduction or rebate on any account (except such payroll deductions as
are permitted by regulations issued by the Secretary of Labor under the Copeland Act (29 CFR part 3)), the full amount of
wages and bona fide fringe benefits (or cash equivalents thereof) due at time of payment computed at rates not less than
those contained in the wage determination of the Secretary of Labor which is attached hereto and made a part hereof,
regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and
mechanics.
Contributions made or costs reasonably anticipated for bona fide fringe benefits under section 1(b)(2) of the Davis -Bacon
Act on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics, subject to the
provisions of paragraph (a)(1)(iv) of this section; also, regular contributions made or costs incurred for more than a weekly
period (but not less often than quarterly) under plans, funds, or programs which cover the particular weekly period, are
deemed to be constructively made or incurred during such weekly period. Such laborers and mechanics shall be paid the
appropriate wage rate and fringe benefits on the wage determination for the classification of work actually performed,
without regard to skill, except as provided in § 5.5(a)(4). Laborers or mechanics performing work in more than one
classification may be compensated at the rate specified for each classification for the time actually worked therein:
Provided, that the employer's payroll records accurately set forth the time spent in each classification in which work is
performed. The wage determination (including any additional classification and wage rates conformed under paragraph
(a)(1)(ii) of this section) and the Davis -Bacon poster (WH -1321) shall be posted at all times by the contractor and its
subcontractors at the site of the work in a prominent and accessible place where it can be easily seen by the workers.
Subrecipients may obtain wage determinations from the U.S. Department of Labor's web site, www.dol.gov.
(ii)(A) The subrecipient(s), on behalf of EPA, shall require that any class of laborers or mechanics, including helpers,
which is not listed in the wage determination and which is to be employed under the contract shall be classified in
conformance with the wage determination. The State award official shall approve a request for an additional classification
and wage rate and fringe benefits therefore only when the following criteria have been met:
(1) The work to be performed by the classification requested is not performed by a classification in the wage
determination; and
(2) The classification is utilized in the area by the construction industry; and
(3) The proposed wage rate, including any bona fide fringe benefits, bears a reasonable relationship to the wage rates
contained in the wage determination.
(B) If the contractor and the laborers and mechanics to be employed in the classification (if known), or their
representatives, and the subrecipient(s) agree on the classification and wage rate (including the amount designated for
fringe benefits where appropriate), documentation of the action taken and the request, including the local wage
determination shall be sent by the subrecipient (s) to the State award official. The State award official will transmit the
request, to the Administrator of the Wage and Hour Division, Employment Standards Administration, U.S. Department of
Labor, Washington, DC 20210 and to the EPA DB Regional Coordinator concurrently. The Administrator, or an
authorized representative, will approve, modify, or disapprove every additional classification request within 30 days of
receipt and so advise the State award official or will notify the State award official within the 30 -day period that additional
time is necessary.
(C) In the event the contractor, the laborers or mechanics to be employed in the classification or their representatives,
and the subrecipient(s) do not agree on the proposed classification and wage rate (including the amount designated for
fringe benefits, where appropriate), the award official shall refer the request and the local wage determination, including
the views of all interested parties and the recommendation of the State award official, to the Administrator for
5-952-037
;hment VI: Labor Standards Provisions
DWSRF NT Loan Contract (Municipal)
determination. The request shall be sent to the EPA DB Regional Coordinator concurrently. The Administrator, or an
authorized representative, will issue a determination within 30 days of receipt of the request and so advise the contracting
officer or will notify the contracting officer within the 30 -day period that additional time is necessary.
(D) The wage rate (including fringe benefits where appropriate) determined pursuant to paragraphs (a)(1)(ii)(B) or (C) of
this section, shall be paid to all workers performing work in the classification under this contract from the first day on which
work is performed in the classification.
(iii) Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics includes a fringe
benefit which is not expressed as an hourly rate, the contractor shall either pay the benefit as stated in the wage
determination or shall pay another bona fide fringe benefit or an hourly cash equivalent thereof.
(iv) If the contractor does not make payments to a trustee or other third person, the contractor may consider as part of the
wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing bona fide fringe benefits
under a plan or program, provided, that the Secretary of Labor has found, upon the written request of the contractor, that
the applicable standards of the Davis -Bacon Act have been met. The Secretary of Labor may require the contractor to set
aside in a separate account assets for the meeting of obligations under the plan or program.
(2) Withholding. The subrecipient(s), shall upon written request of the EPA Award Official or an authorized representative
of the Department of Labor, withhold or cause to be withheld from the contractor under this contract or any other Federal
contract with the same prime contractor, or any other federally -assisted contract subject to Davis -Bacon prevailing wage
requirements, which is held by the same prime contractor, so much of the accrued payments or advances as may be
considered necessary to pay laborers and mechanics, including apprentices, trainees, and helpers, employed by the
contractor or any subcontractor the full amount of wages required by the contract. In the event of failure to pay any
laborer or mechanic, including any apprentice, trainee, or helper, employed or working on the site of the work, all or part of
the wages required by the contract, the (Agency) may, after written notice to the contractor, sponsor, applicant, or owner,
take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds
until such violations have ceased.
(3) Payrolls and basic records.
(i) Payrolls and basic records relating thereto shall be maintained by the contractor during the course of the work and
preserved for a period of three years thereafter for all laborers and mechanics working at the site of the work. Such
records shall contain the name, address, and social security number of each such worker, his or her correct classification,
hourly rates of wages paid (including rates of contributions or costs anticipated for bona fide fringe benefits or cash
equivalents thereof of the types described in section 1(b)(2)(B) of the Davis -Bacon Act), daily and weekly number of hours
worked, deductions made and actual wages paid. Whenever the Secretary of Labor has found under 29 CFR 5.5(a)(1)(iv)
that the wages of any laborer or mechanic include the amount of any costs reasonably anticipated in providing benefits
under a plan or program described in section 1(b)(2)(B) of the Davis -Bacon Act, the contractor shall maintain records
which show that the commitment to provide such benefits is enforceable, that the plan or program is financially
responsible, and that the plan or program has been communicated in writing to the laborers or mechanics affected, and
records which show the costs anticipated or the actual cost incurred in providing such benefits. Contractors employing
apprentices or trainees under approved programs shall maintain written evidence of the registration of apprenticeship
programs and certification of trainee programs, the registration of the apprentices and trainees, and the ratios and wage
rates prescribed in the applicable programs.
(ii)(A) The contractor shall submit weekly, for each week in which any contract work is performed, a copy of all payrolls to
the subrecipient, that is, the entity that receives the sub -grant or loan from the State capitalization grant recipient. Such
documentation shall be available on request of the State recipient or EPA. As to each payroll copy received, the
subrecipient shall provide written confirmation in a form satisfactory to the State indicating whether or not the project is in
compliance with the requirements of 29 CFR 5.5(a)(1) based on the most recent payroll copies for the specified week.
The payrolls shall set out accurately and completely all of the information required to be maintained under 29 CFR
5.5(a)(3)(i), except that full social security numbers and home addresses shall not be included on the weekly payrolls.
Instead the payrolls shall only need to include an individually identifying number for each employee (e.g., the last four
digits of the employee's social security number). The required weekly payroll information may be submitted in any form
desired. Optional Form WH -347 is available for this purpose from the Wage and Hour Division Web site at
htto://www.dol.gov/whd/forms/wh347instr.htm or its successor site. The prime contractor is responsible for the
submission of copies of payrolls by all subcontractors. Contractors and subcontractors shall maintain the full social
security number and current address of each covered worker, and shall provide them upon request to the subrecipient(s)
for transmission to the State or EPA if requested by EPA, the State, the contractor, or the Wage and Hour Division of the
Department of Labor for purposes of an investigation or audit of compliance with prevailing wage requirements. It is not a
violation of this section for a prime contractor to require a subcontractor to provide addresses and social security numbers
to the prime contractor for its own records, without weekly submission to the subrecipient(s).
(B) Each payroll submitted shall be accompanied by a "Statement of Compliance," signed by the contractor or
subcontractor or his or her agent who pays or supervises the payment of the persons employed under the contract and
shall certify the following:
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(1) That the payroll for the payroll period contains the information required to be provided under § 5.5 (a)(3)(ii) of
Regulations, 29 CFR part 5, the appropriate information is being maintained under § 5.5 (a)(3)(i) of Regulations, 29 CFR
part 5, and that such information is correct and complete;
(2) That each laborer or mechanic (including each helper, apprentice, and trainee) employed on the contract during the
payroll period has been paid the full weekly wages earned, without rebate, either directly or indirectly, and that no
deductions have been made either directly or indirectly from the full wages earned, other than permissible deductions as
set forth in Regulations, 29 CFR part 3;
(3) That each laborer or mechanic has been paid not less than the applicable wage rates and fringe benefits or cash
equivalents for the classification of work performed, as specified in the applicable wage determination incorporated into
the contract.
(C) The weekly submission of a properly executed certification set forth on the reverse side of Optional Form WH -347
shall satisfy the requirement for submission of the "Statement of Compliance" required by paragraph (a)(3)(ii)(B) of this
section.
(D) The falsification of any of the above certifications may subject the contractor or subcontractor to civil or criminal
prosecution under section 1001 of title 18 and section 231 of title 31 of the United States Code.
(iii) The contractor or subcontractor shall make the records required under paragraph (a)(3)(i) of this section available for
inspection, copying, or transcription by authorized representatives of the State, EPA or the Department of Labor, and shall
permit such representatives to interview employees during working hours on the job. If the contractor or subcontractor
fails to submit the required records or to make them available, the Federal agency or State may, after written notice to the
contractor, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension of any further
payment, advance, or guarantee of funds. Furthermore, failure to submit the required records upon request or to make
such records available may be grounds for debarment action pursuant to 29 CFR 5.12.
(4) Apprentices and trainees --
(i) Apprentices. Apprentices will be permitted to work at less than the predetermined rate for the work they performed
when they are employed pursuant to and individually registered in a bona fide apprenticeship program registered with the
U.S. Department of Labor, Employment and Training Administration, Office of Apprenticeship Training, Employer and
Labor Services, or with a State Apprenticeship Agency recognized by the Office, or if a person is employed in his or her
first 90 days of probationary employment as an apprentice in such an apprenticeship program, who is not individually
registered in the program, but who has been certified by the Office of Apprenticeship Training, Employer and Labor
Services or a State Apprenticeship Agency (where appropriate) to be eligible for probationary employment as an
apprentice. The allowable ratio of apprentices to journeymen on the job site in any craft classification shall not be greater
than the ratio permitted to the contractor as to the entire work force under the registered program. Any worker listed on a
payroll at an apprentice wage rate, who is not registered or otherwise employed as stated above, shall be paid not less
than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any
apprentice performing work on the job site in excess of the ratio permitted under the registered program shall be paid not
less than the applicable wage rate on the wage determination for the work actually performed. Where a contractor is
performing construction on a project in a locality other than that in which its program is registered, the ratios and wage
rates (expressed in percentages of the journeyman's hourly rate) specified in the contractor's or subcontractor's registered
program shall be observed. Every apprentice must be paid at not less than the rate specified in the registered program
for the apprentice's level of progress, expressed as a percentage of the journeymen hourly rate specified in the applicable
wage determination. Apprentices shall be paid fringe benefits in accordance with the provisions of the apprenticeship
program. If the apprenticeship program does not specify fringe benefits, apprentices must be paid the full amount of
fringe benefits listed on the wage determination for the applicable classification. If the Administrator determines that a
different practice prevails for the applicable apprentice classification, fringes shall be paid in accordance with that
determination. In the event the Office of Apprenticeship Training, Employer and Labor Services, or a State
Apprenticeship Agency recognized by the Office, withdraws approval of an apprenticeship program, the contractor will no
longer be permitted to utilize apprentices at less than the applicable predetermined rate for the work performed until an
acceptable program is approved.
(ii) Trainees. Except as provided in 29 CFR 5.16, trainees will not be permitted to work at less than the predetermined
rate for the work performed unless they are employed pursuant to and individually registered in a program which has
received prior approval, evidenced by formal certification by the U.S. Department of Labor, Employment and Training
Administration. The ratio of trainees to journeymen on the job site shall not be greater than permitted under the plan
approved by the Employment and Training Administration. Every trainee must be paid at not less than the rate specified
in the approved program for the trainee's level of progress, expressed as a percentage of the journeyman hourly rate
specified in the applicable wage determination. Trainees shall be paid fringe benefits in accordance with the provisions of
the trainee program. If the trainee program does not mention fringe benefits, trainees shall be paid the full amount of
fringe benefits listed on the wage determination unless the Administrator of the Wage and Hour Division determines that
there is an apprenticeship program associated with the corresponding journeyman wage rate on the wage determination
which provides for less than full fringe benefits for apprentices. Any employee listed on the payroll at a trainee rate who is
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not registered and participating in a training plan approved by the Employment and Training Administration shall be paid
not less than the applicable wage rate on the wage determination for the classification of work actually performed. In
addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be
paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the
Employment and Training Administration withdraws approval of a training program, the contractor will no longer be
permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable
program is approved.
(iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in
conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR part
30.
(5) Compliance with Copeland Act requirements. The contractor shall comply with the requirements of 29 CFR part 3,
which are incorporated by reference in this contract.
(6) Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses contained in 29 CFR
5.5(a)(1) through (10) and such other clauses as the EPA determines may by appropriate, and also a clause requiring the
subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for the
compliance by any subcontractor or lower tier subcontractor with all the contract clauses in 29 CFR 5.5.
(7) Contract termination; debarment. A breach of the contract clauses in 29 CFR 5.5 may be grounds for termination of
the contract, and for debarment as a contractor and a subcontractor as provided in 29 CFR 5.12.
(8) Compliance with Davis -Bacon and Related Act requirements. All rulings and interpretations of the Davis -Bacon and
Related Acts contained in 29 CFR parts 1, 3, and 5 are herein incorporated by reference in this contract.
(9) Disputes concerning labor standards. Disputes arising out of the labor standards provisions of this contract shall not
be subject to the general disputes clause of this contract. Such disputes shall be resolved in accordance with the
procedures of the Department of Labor set forth in 29 CFR parts 5, 6, and 7. Disputes within the meaning of this clause
include disputes between the contractor (or any of its subcontractors) and Subrecipient(s), State, EPA, the U.S.
Department of Labor, or the employees or their representatives.
(10) Certification of eligibility.
(i) By entering into this contract, the contractor certifies that neither it (nor he or she) nor any person or firm who has an
interest in the contractor's firth is a person or firm ineligible to be awarded Government contracts by virtue of section 3(a)
of the Davis -Bacon Act or 29 CFR 5.12(a)(1).
(ii) No part of this contract shall be subcontracted to any person or firm ineligible for award of a Government contract by
virtue of section 3(a) of the Davis -Bacon Act or 29 CFR 5.12(a)(1).
(iii) The penalty for making false statements is prescribed in the U.S. Criminal Code, 18 USC 1001.
4. Contract Provision for Contracts in Excess of $100,000.
(a) Contract Work Hours and Safety Standards Act. The subrecipient shall insert the following clauses set forth in
paragraphs (a)(1), (2), (3), and (4) of this section in full in any contract in an amount in excess of $100,000 and subject to
the overtime provisions of the Contract Work Hours and Safety Standards Act. These clauses shall be inserted in addition
to the clauses required by Item 3, above or 29 CFR 4.6. As used in this paragraph, the terms laborers and mechanics
include watchmen and guards.
(1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may
require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any
workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such
laborer or mechanic receives compensation at a rate not less than one and one-half times the basic rate of pay for all
hours worked in excess of forty hours in such workweek.
(2) Violation; liability for unpaid wages; liquidated damages. In the event of any violation of the clause set forth in
paragraph (a)(1) of this section the contractor and any subcontractor responsible therefore shall be liable for the unpaid
wages. In addition, such contractor and subcontractor shall be liable to the United States (in the case of work done under
contract for the District of Columbia or a territory, to such District or to such territory), for liquidated damages. Such
liquidated damages shall be computed with respect to each individual laborer or mechanic, including watchmen and
guards, employed in violation of the clause set forth in paragraph (a)(1) of this section, in the sum of $10 for each
calendar day on which such individual was required or permitted to work in excess of the standard workweek of forty
hours without payment of the overtime wages required by the clause set forth in paragraph (a)(1) of this section.
(3) Withholding for unpaid wages and liquidated damages. The subrecipient, upon written request of the EPA Award
Official or an authorized representative of the Department of Labor, shall withhold or cause to be withheld, from any
moneys payable on account of work performed by the contractor or subcontractor under any such contract or any other
Federal contract with the same prime contractor, or any other federally -assisted contract subject to the Contract Work
Hours and Safety Standards Act, which is held by the same prime contractor, such sums as may be determined to be
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necessary to satisfy any liabilities of such contractor or subcontractor for unpaid wages and liquidated damages as
provided in the clause set forth in paragraph (b)(2) of this section.
(4) Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses set forth in paragraph
(a)(1) through (4) of this section and also a clause requiring the subcontractors to include these clauses in any lower tier
subcontracts. The prime contractor shall be responsible for compliance by any subcontractor or lower tier subcontractor
with the clauses set forth in paragraphs (a)(1) through (4) of this section.
(b) In addition to the clauses contained in Item 3, above, in any contract subject only to the Contract Work Hours and
Safety Standards Act and not to any of the other statutes cited in 29 CFR 5.1, the Subrecipient shall insert a clause
requiring that the contractor or subcontractor shall maintain payrolls and basic payroll records during the course of the
work and shall preserve them for a period of three years from the completion of the contract for all laborers and
mechanics, including guards and watchmen, working on the contract. Such records shall contain the name and address
of each such employee, social security number, correct classifications, hourly rates of wages paid, daily and weekly
number of hours worked, deductions made, and actual wages paid. Further, the Subrecipient shall insert in any such
contract a clause providing hat the records to be maintained under this paragraph shall be made available by the
contractor or subcontractor for inspection, copying, or transcription by authorized representatives of the (write the name of
agency) and the Department of Labor, and the contractor or subcontractor will permit such representatives to interview
employees during working hours on the job.
5. Compliance Verification
(a) The subrecipient shall periodically interview a sufficient number of employees entitled to DB prevailing wages
(covered employees) to verify that contractors or subcontractors are paying the appropriate wage rates. As provided in 29
CFR 5.6(a)(6), all interviews must be conducted in confidence. The subrecipient must use Standard Form 1445 (SF
1445) or equivalent documentation to memorialize the interviews. Copies of the SF 1445 are available from EPA on
request.
(b) The subrecipient shall establish and follow an interview schedule based on its assessment of the risks of
noncompliance with DB posed by contractors or subcontractors and the duration of the contract or subcontract.
Subrecipients must conduct more frequent interviews if the initial interviews or other information indicated that there is a
risk that the contractor or subcontractor is not complying with DB.
Subrecipients shall immediately conduct interviews in response to an alleged violation of the prevailing wage
requirements. All interviews shall be conducted in confidence."
(c) The subrecipient shall periodically conduct spot checks of a representative sample of weekly payroll data to verify that
contractors or subcontractors are paying the appropriate wage rates. The subrecipient shall establish and follow a spot
check schedule based on its assessment of the risks of noncompliance with DB posed by contractors or subcontractors
and the duration of the contract or subcontract. At a minimum, if practicable, the subrecipient should spot check payroll
data within two weeks of each contractor or subcontractor's submission of its initial payroll data and two weeks prior to the
completion date the contract or subcontract. Subrecipients must conduct more frequent spot checks if the initial spot
check or other information indicates that there is a risk that the contractor or subcontractor is not complying with DB. In
addition, during the examinations the subrecipient shall verify evidence of fringe benefit plans and payments thereunder
by contractors and subcontractors who claim credit for fringe benefit contributions.
(d) The subrecipient shall periodically review contractors and subcontractors use of apprentices and trainees to verify
registration and certification with respect to apprenticeship and training programs approved by either the U.S Department
of Labor or a state, as appropriate, and that contractors and subcontractors are not using disproportionate numbers of,
laborers, trainees and apprentices. These reviews shall be conducted in accordance with the schedules for spot checks
and interviews described in Item 5(b) and (c) above.
(e) Subrecipients must immediately report potential violations of the DB prevailing wage requirements to the Department
of Commerce and to the appropriate DOL Wage and Hour District Office listed at
hftp://www.dol.gov/contacts/Whd/america2.htm.
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