The Federal Uniform Administrative Requirements, located at 29 CFR Part 95 (applicable to educational institutions, nonprofit organizations, etc) and 29 CFR Part 97 (applicable so State and Local governments) codify and implement OMB Circulars A-110 and A-102 respectively.
These requirements set forth standards for obtaining consistency and uniformity among Federal agencies in the administration of grants and agreements with State and Local governments, hospitals, higher educational institutions, and other non-profit organizations. The Administrative Requirement's provisions are applied by Federal agencies to recipients, and recipients in turn apply these provisions to subrecipients performing substantive work under grants and agreements that are passed through by the recipient. Topics covered by the Administrative Requirements include, but are not limited to: Financial Management, Cost Sharing, Property Standards, Procurement, Records Access and Retention, Award Termination and Enforcement, and Closeout Procedures.
This page contains a topical outline summarizing 29 CFR Part 95's key requirements and full text versions of both 29 CFR Part 95: Grants and Agreements with Institutions of Higher Education, Hospitals, and other Non-Profit Organizations and 29 CFR Part 97: Uniform Administrative Requirements for Grants and Cooperative Agreements with State and Local Governments.
The outline is non-exhaustive and is intended for use as a reference tool. Although many of Part 95's provisions and requirements coincide with Part 97's, distinctions do exist and thus State and Local governmental organizations should consult Part 97's individual sections. Part 95 and Part 97 individual sections can be accessed by clicking on the "Uniform Administrative Requirements" links located below the topical outline.
Note: In addition to the federal administrative requirements, Local Areas must adhere to State requirements which are much more specific and restrictive in some areas. The State Fiscal Manual can be accessed by clicking here.
Page Index
I. Financial Management System
II. Cost Sharing
III. Property Standards
IV. Procurement
V. Records Retention and Access
VI. Award Termination and Enforcement
VII. Closeout Procedures
Uniform Administrative Requirements
I. Financial Management System
A. Reporting Accuracy: Recipients shall provide accurate, current, and complete disclosure of the financial results of each federally-sponsored project or program in accordance with reporting requirements set forth in section 95.52. Results must be reported on the accrual accounting basis, although subrecipients are not required to utilize an accrual accounting system so long as they develop accrual reporting data based upon existing records.
B. Accounting Records: Recipients shall develop and maintain records adequately identifying all authorizations, obligations, unobligated balances, assets, outlays, income, and interest.
C. Internal Controls: Recipients shall develop effective control over all funds, property, and other assets to adequately safeguard such assets and ensure they are used solely for authorized purposes.
D. Budgeting Practices: Recipients shall develop budget formats comparing actual vs. budgeted amounts and highlighting significant variances. Whenever possible budget information should be related to performance and unit cost data. Budget deviations must be reported and budget revisions require prior approval.
E. Cash Management: Recipients shall develop procedures consistent with the Cash Management Improvement Act to minimize the time elapsing between fund transfers, check issuances and redemptions, program payments, etc. Cash advances shall be limited to the minimum amounts needed and be timed to meet the recipient's actual and immediate cash requirements.
F. Program Income: Any program income earned by the recipient shall be retained and added to funds committed to the project and used to further eligible project or program objectives. Costs incident income generation may be deducted from gross income to determine program income provided the costs have not been charged to the award.
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II. Cost Sharing
A. Matching Requirements: All contributions, including third party in-kind, shall be accepted as part of the recipient's cost sharing when such contributions:
· Are verifiable from the recipient’s records.
· Are not included as contributions for any other Federally-assisted project or program.
· Are necessary and reasonable for proper and efficient accomplishment of project or program objectives.
· Are allowable under the applicable cost principles.
· Are not paid by the Federal Government under another award, except where authorized by Federal statute to be used for cost sharing or matching.
· Are provided for in the approved budget when required by DOL.
· Conform to other provisions of this part, as applicable.
B. Contribution and Donation Valuations
· Property: Valued at the lesser of the property's current fair market value or certified value of the property's remaining life as recorded in the recipient's accounting records at the time of donation
· Volunteer Services: May be counted as cost sharing only if the service is an integral and necessary part of the program. Rates shall be consistent with those paid for similar work in the recipient's organization.
· Supplies: includes items such as expendable equipment, office supplies, etc. Donated supplies shall not exceed their fair market value at the time of the donation.
· Property: The value of donated land and buildings shall not exceed its fair market value at the time of the donation as established by an independent appraiser. The value of donated equipment shall not exceed the fair market value of similar equipment of the same age and condition at the time of the donation. The value of donated space shall not exceed the fair rental value of comparable space as established by an independent appraisal. The value of loaned equipment shall not exceed its fair rental value.
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III. Property Standards
A. Insurance Coverage: Recipients shall provide the equivalent insurance coverage for real property and equipment acquired with Federal funds as provided for the recipient's own property.
B. Real Property: The following "use" and "disposition" requirements apply to real property:
· Use: Title shall vest in the recipient so long as the recipient uses the real property for the project's authorized purpose. The recipient shall not encumber the property without the US Department of Labor's (DOL's) prior approval.
· Disposition: When the property is no longer needed the recipient shall request disposition instructions from the Department of Labor. DOL's grant officer shall issue one or more of the following instructions:
o The recipient may be permitted to retain title without further obligation after compensating the Federal Government for the percentage of fair market value attributable to Federal participation in the project, or
o The recipient may be directed to sell the property under guidelines provided by DOL and pay DOL for that percentage of the property's fair market value attributable to Federal participation in the project.
o The recipient may be directed to transfer title to the property to the Federal Government or an eligible third party and be entitled to compensation for its attributable percentage of the property's current fair market value.
C. Equipment: The following "use," "management," and "disposition" requirements apply to equipment:
· Use: The recipient shall use the equipment in the project or program for which it was acquired and not encumber the property without the grant officer's prior approval. When no longer needed for the original project the recipient shall first use the equipment in connection with activities sponsored by the DOL agency that funded the original project and then with activities sponsored by other Federal awarding agencies.
· Equipment Management Standards: The recipient shall implement and maintain the following equipment management standards and procedures:
o Equipment records including the following information:
§ Description
§ Manufacturer's serial number
§ Equipment source, including the award number if applicable
§ Title
§ Acquisition date
§ Condition
§ Location
§ Unit acquisition cost
§ Disposition data, including disposal date and sales price, if applicable
o Physical inventories (once every two years, at minimum)
o Equipment control system to prevent loss, damage, or theft
o Maintenance procedures
· Disposition: If no longer needed, the recipient may retain the equipment for other uses provided that compensation is made to the original DOL agency. The compensation amount shall be computed by applying the percentage of Federal participation in the cost of the original project or program to the equipment's current fair market value. Alternatively, the recipient may request disposition instructions from DOL. DOL shall issue instructions no later than 120 days after the recipient's request. The recipient may be instructed to:
o Sell the equipment and reimburse DOL an amount equal to % of Federal participation in the cost of the original project applied to the sales proceeds, or
o Ship the equipment to DOL or an alternative Federal agency and receive reimbursement equal to the percentage of the recipient's participation in the cost of the original project applied to the equipment's current fair market value, plus any reasonable shipping or interim storage costs incurred.
D. Supplies: The following "use" and "disposition" requirements apply to supplies:
· Use: the recipient shall not use supplies acquired with Federal funds to provide services to non-Federal outside organizations for a fee that is less than private companies charge for equivalent services, unless specifically authorized by Federal statute as long as the Federal government retains an interest in the supplies.
· Disposition: If there is a residual inventory of unused supplies exceeding $5,000 in total aggregate value upon project termination or completion and the supplies are not needed for any other federally-sponsored project then the recipient shall retain the supplies for use on non-Federal sponsored activities or sell them, but in either case shall compensate the Federal Government for its share.
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IV. Procurement
A. Competition: All procurement transactions shall be conducted in a manner to provide open and free competition to the maximum extent practicable. Awards shall be made to the bidder or offeror whose bid or offer is responsive to the solicitation and is most advantageous to the recipient, price, quality, and other factors considered.
B. Procedures: Recipients should adhere to the following procurement procedural requirements:
· Written procedures: Recipients shall establish written procurement procedures describing authorized purchases, lease/purchase analysis, and goods/services solicitation inclusions
· Priority for selected respondents: Recipients shall make positive efforts to solicit responses or proposals from small businesses, minority-owned firms, and women's business enterprises whenever possible.
· Procurement instruments: Recipients shall determine the appropriate procurement instrument (i.e. fixed price contracts, cost reimbursement contracts, purchase orders, incentive contracts, etc) necessary for promoting the best interest of the project involved. The "cost-plus-a-percentage-of-cost" or "percentage of construction cost" methods shall not be used.
· Responsible Contractors: Contracts shall be made only with responsible contractors possessing the ability to perform successfully under the procurement's proposed terms and conditions. Consideration shall be given to contractor integrity, past performance, financial and technical resources, etc.
· "Red flag procurement practices": Recipients should refrain from the following procurement practices:
o Awarding a contract exceeding the small purchase threshold without competition or after only one bid or offer is received in response to a solicitation
o Specifying a "brand name" product for procurements exceeding the small purchase threshold
o Awarding a contract to a respondent other than the low bidder in response to a sealed bid procurement exceeding the small purchase threshold.
o Proposing a contractual modification that changes the contract's scope or increases its amount by more than the small purchase threshold.
C. Cost/Price Analysis: Some form of cost or price analysis shall be made and documented in the procurement files in connection with every procurement action. Price analysis examples include submitted price quotations comparisons, market price analysis, etc. Cost analysis is the review and evaluation of each cost element to determine reasonableness, allocability, and allowability.
D. Procurement Records: Procurement records and purchase files in excess of the small purchase threshold shall include at least the following:
· Basis for contractor selection
· Justification for lack of competition (when competitive bids were not obtained)
· Basis for award’s cost/price
E. Procurement Methods: 29 C.F.R. part 95 does not specify particular methods for procurement, merely stating that procurements should be conducted in a manner designed to provide for full and open competition. However, the four methods described in 29 C.F.R. part 97 (listed below) are appropriate methods to procure both goods and services under Part 95 provisions.
· Small Purchase Method
o Procedure: This is a relatively informal method used primarily to procure goods (i.e. supplies and equipment). Price or rate quotes from an adequate number of qualified sources are obtained and compared with the final selection based on prices/rates deemed to be most favorable.
o Requirements: The federal small purchase threshold is currently $100,000.
o Appropriateness: This method should be used only when price is the overriding factor and may be easily quoted and compared, delivery is standardized, and performance outcomes are not dependent upon the contents of the procured goods.
· Sole Source Method (i.e. non-competitive proposals)
o Procedure: This method refers to proposal solicitation from a single source, in most cases b/c competition is determined to be inadequate to fulfill the funding agency’s requirements.
o Requirements:
§ Alternative method infeasibility - The award is infeasible under the small purchase method, sealed bid method (i.e. IFBs, discussed below), and competitive proposals (i.e. RFPs, discussed below), and one of the following conditions apply:
§ The item is available from only one source
§ Public emergency precludes delay
§ The awarding agency authorizes the specific noncompetitive procurement (upon a formal request for approval)
§ Competition is determined inadequate. This usually occurs after a competitive process has been used and there are insufficient bidders.
§ Cost Analysis – A cost analysis is required for all noncompetitive procurement actions. This entails proposed cost data verification and evaluation of the specific costs and profit elements, including comparison with the agency’s prior independent price estimate.
§ Documented Reason – Noncompetitive procurements are allowable under 29 CFR §97.36 but they are considered a “last resort” option and used only when there is a documented reason for sole source selection.
o Appropriateness: Noncompetitive procurements should be employed only when competition is determined inadequate to fulfill the funding agency's requirements.
· Sealed Bids (using IFBs)
o Procedure: Bids are publicly solicited and the procurement is awarded to the lowest bidder, resulting in a fixed-price (either lump sum or unit price) contract.
o Requirements:
§ Advertisements – The Invitation for Bid (IFB) must be publicly advertised and bids must be solicited from an adequate (i.e. more than two) number of known suppliers.
§ IFB Specificity – The IFB must contain all “specifications and pertinent attachments” and define the items or services to be procured in sufficient detail for the bidders to respond properly
§ Bid evaluation transparency – All bids must be publicly opened
§ Award requirements – A firm fixed-price contract should be awarded to the lowest responsive and responsible bidder
§ Rejection justification – Any or all rejected bids must be supported by a documented reason.
o Appropriateness: Sealed bid procedures are appropriate when a complete and realistic specification of required goods or services is available and part of the solicitation, there are at least two responsible bidders, and the procurement may be conducted principally on price.
· Competitive Proposals (using RFPs)
o Procedure: A Request for Proposal (RFP) is published and submitted proposals are reviewed for responsiveness to RFP specifications, proposed performance criteria, and cost minimization. Awards may be made to more than one successful bidder, and either fixed-price and cost-reimbursement contracts may be awarded depending on the uniformity and predictability among individual providers and such factors as occupations, pay rates, training hours, etc.
o Requirements:
§ RFP Publication and Specificity: RFPs must be publicized and contain the specifications that provide a common understanding for the proposed goods or services sought and identify all the evaluation factors and their relative importance or weight in selection of successful bidders.
§ Solicitation comprehensiveness: Proposals must be solicited from an adequate number of qualified sources.
§ Evaluation methods: A method for conducting technical evaluations of proposals and selection of awardees must be in place.
§ Award factors: Awards should be made to selected bidders whose proposals are most advantages to the program based on price and other evaluation factors.
o Appropriateness: Competitive proposals are used when there is more than one prospective bidder, the lowest price is not necessarily the determining factor, and either a fixed-price or cost-reimbursement agreement will be awarded. The procedure is appropriate when the subrecipient is open to a variety of methods employed to achieve the results called for in the RFP. Evaluation factors will typically focus on approach, program design, innovation, coordination, and experience.
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V. Records Retention and Access
A. Types of Records: The subrecipient shall maintain financial, statistical, property, participant, program reports, award documents, budgets, supporting documents, attachment, modifications, and other records pertinent to an award.
B. Retention Periods: The following retention period requirements and associated exceptions apply:
· General Rule: Records shall be maintained for a period of three years from the final expenditure report submission date, or for awards that are renewed quarterly or annually, from the quarterly or annual financial report submission date.
· Litigation and Audit Exception: If any litigation, claim, or audit is started before the expiration of the 3 year period, the records shall be retained until all litigation, claims, or audit findings involving the records have been resolved and final action taken.
· Real Property and Equipment Exception: Records for real property and equipment acquired with Federal funds shall be retained for 3 years after final disposition.
· Indirect Cost Rate Proposals and Cost Allocation Plans:
o Negotiation Submission: If submitted for negotiation then the 3 year retention period starts on the date of such submission.
o No Negotiation Submission: If not submitted for negotiation then the year retention period starts at the end of the fiscal year covered by the proposal, plan, or other computation.
C. Access Rights: The U.S. Dept. of Labor, The U.S. Dept. of Health and Human Services, the Inspector General, the Comptroller General of the United States, the Auditor of the State of Kansas, other state and federal auditing agencies, the Dept. of Commerce, or any of their duly authorized representatives shall have access to and the right to examine, copy, or mechanically reproduce all reports, books, papers, documents, automated data systems, and other records pertaining to contracts awarded through the WIA program. Commerce and other oversight entities in coordination with Commerce shall have the right to timely and reasonable access to the subrecipient’s premises, personnel, monitoring and auditing records, evaluation records, and all other records required to be retained for the purpose of accomplishing the contract’s goals. Note that access rights are not limited to the required retention period, but shall last as long as records are retained.
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VI. Award Termination and Enforcement
A. Termination: Awards may be terminated in whole or in part if one of the following conditions apply:
· Material non-compliance: The federal grant officer may terminate an award if the recipient materially fails to comply with the award's terms and conditions
· Mutual agreement: The federal grant officer may terminate an award in cases where both the grant officer and recipient agree upon the termination conditions, including the effective date and portion to be terminated in cases of partial termination.
· Recipient discretion: The recipient may terminate the award by sending the grant officer written notification setting forth the reasons for termination, the effective date, and the portion to be terminated in cases involving partial termination.
B. Enforcement: Requirements regarding award enforcement address possible enforcement actions, hearings and appeals, and effects of suspensions and terminations:
· Enforcement actions: If a recipient materially fails to comply with the award's terms and conditions, the Department of Labor may take one or more of the following actions as appropriate under the circumstances:
o Cash payment withholding: DOL may temporarily withhold cash payments pending the recipient's correction of the deficiency.
o Disallowment: DOL may disallow all or part of the cost of the activity or action associated with noncompliance.
o Award termination and/or suspension: DOL may wholly or partially suspend or terminate the award.
o Future award withholding: DOL may withhold future awards for the project or program.
o Miscellaneous Remedies: DOL may exhaust other remedies legally available.
· Hearings and appeals: When taking an enforcement action the Department of Labor shall provide the recipient an opportunity for hearing, appeal, or other administrative proceeding to which the recipient is entitled under any statute or regulations applicable to the action involved.
· Effects of suspension and/or termination: Recipient costs incurred during a suspension or after a termination are not normally allowable unless expressly authorized by the Department of Labor. Recipient costs during suspension or after termination that are necessary and not reasonably avoidable are allowable if the costs result from obligations properly incurred by the recipient before the effective date of suspension or termination and not in anticipation of it, are non-cancellable in the case of termination, or the costs would be allowable if the award were not suspended or expired normally at the end of the funding period that the termination takes effect.
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VII. Closeout Procedures
A. Report Submission: Recipients shall submit all financial, performance, and other reports as required by the award's terms and conditions within 90 calendar days after the award's completion date.
B. Obligation Liquidation: Unless DOL authorizes an extension, the recipient shall liquidate all incurred obligations not later than 90 calendar days after the funding period or award's completion date.
C. Recipient Reimbursement: DOL shall promptly pay recipients for allowable reimbursable costs.
D. DOL Reimbursement: The recipient shall promptly refund to DOL unobligated cash balances not authorized to be retained for other projects.
E. Cost Settlement: When authorized by the award's terms and conditions DOL shall settle any upward or downward adjustments to Federal cost shares after closeout reports are received.
F. Property Accountability: The recipient shall account for any real and personal property acquired with Federal funds or received from the Federal Government in accordance with 29 CFR 95.31 through 95.37.
G. Final Audit Recommendations: DOL reserves the right to recover an appropriate amount after fully considering the recommendations on disallowed costs resulting from the final audit.
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Uniform Administrative Requirements