HomeMy WebLinkAbout6.d. Approval of State of Minnesota - Energy Efficiency Conservation Block Grant (EECBG) Contract4ROSEMOUNTEXECUTIVE SUMMARY
CITY COUNCIL
City Council Regular Meeting: August 17, 2010
AGENDA ITEM: Approval of State of Minnesota — Energy
AGENDA SECTION:
Efficiency Conservation Block Grant
Consent
EECBG Contract
PREPARED BY: Dan Schultz, Parks and Recreation
AGENDA NO.
Director
V!
ATTACHMENTS: Grant Contract with State of Minnesota
APPROVED BY:
RECOMMENDED ACTION: Motion to approve the attached EECBG Grant Contract with
the State of Minnesota for the replacement of the boilers at the Rosemount Steeple Center
and a facility lighting retro -fit project at the Rosemount Community Center.
ISSUE
In the spring of 2010, staff submitted two grants to the State of the Minnesota's Office of Energy and
Security. The first grant was requesting funds to replace the aging boilers at the Steeple Center. The boiler
project was estimated to cost $68,000. The City proposed using $20,000 of City funds as a match for the
project. It was proposed to use $10,000 from the Steeple Center operating maintenance budget and
$10,000 from the Building CIP fund. The remaining $48,000 for the project would come from the
EECBG program. The second grant was to fund a facility lighting retro -fit project at the Rosemount
Community Center. The estimated cost of the project was $51,995. The City proposed using $5,000 from
the Community Center's operating budget for contracted repairs and the remaining $46,995 would come
from the State's EECBG program.
In total, the City would receive $94,995 from the State of Minnesota through the EECBG program.
If approved, both projects are slated to start this fall and would be completed by the end of the year.
SUMMARY
Staff is recommending the City Council approve the attached Grant Agreement for improvements to be
made to City facilities through the Energy Efficiency Conservation Block Grant (EECBG) program which
is being funded through the American Recovery and Investment Act of 2009.
STATE OF MINNESOTA
GRANT CONTRACT
This grant contract is between the State of Minnesota, acting through its commissioner of Commerce ( "State ") and City of
Rosemount, 13885 South Robert Trail, Rosemount, MN 55068 ( "Grantee").
Recitals
1. Under Minnesota Statute §216C.02 Subdivision 1, the State is empowered to enter into this grant.
2. The State is in need of assistance in the promotion of renewable energy resources.
3. The Grantee represents that it is duly qualified and agrees to perform all services described in this grant contract to the
satisfaction of the State.
Grant Contract
Term of Grant Contract
1.1 Effective date: 08/23/2010, or the date the State obtains all required signatures under Minnesota Statutes Section
16C.05, subdivision 2, whichever is later.
The Grantee must not begin work under this grant contract until this contract is fully executed and the
Grantee has been notified by the State's Authorized Representative to begin the work.
1.2 Expiration date: 03/31/2011, or until all obligations have been satisfactorily fulfilled, whichever occurs first.
1.3 Survival of Terms. The following clauses survive the expiration or cancellation of this grant contract: 8. Liability;
9. State Audits; 10. Government Data Practices and Intellectual Property; 12. Publicity and Endorsement; 13.
Governing Law, Jurisdiction, and Venue; and 15. Data Disclosure; aad Exhibit A, Section C.
2 Grantee's Duties
The Grantee, who is not a state employee, will execute the duties set forth in Exhibit A, incorporated herein by
reference.
3 Time
The Grantee must comply with all the time requirements described in this grant contract. In the performance of this
grant contract, time is of the essence.
4 Consideration and Payment
4.1. Consideration. The State will pay for all services performed by the Grantee under this grant contract as follows:
4.1.1. Compensation. The Grantee will be paid the lesser of Ninety Four Thousand Nine Hundred Ninety
Five dollars ($94,995.00) or Seventy Nine and Seventeen Hundredths percent (79.17 %) of actual
eligible costs incurred in the performance of the Grantee's duties according to the breakdown of costs
contained in the grant budget (Exhibit B) which is attached to and incorporated into this grant contract.
4.1.2. Travel Expenses. Reimbursement for travel and subsistence expenses actually and necessarily incurred by
the Grantee as a result of this grant contract will not exceed Zero dollars ($ 0.00); provided that the
Grantee will be reimbursed for travel and subsistence expenses in the same manner and in no greater
amount than provided in the current "Commissioner's Plan" promulgated by the commissioner of
Employee Relations. The Grantee will not be reimbursed for travel and subsistence expenses incurred
outside Minnesota unless it has received the State's prior written approval for out of state travel.
Minnesota will be considered the home state for determining whether travel is out of state.
4.2. Total Obligation. The total obligation of the State for all compensation and reimbursements to the Grantee under
this grant contract will not exceed Ninety Four Thousand Nine Hundred Ninety Five dollars ($94,995.00) or
Seventy Nine and Seventeen Hundredths percent (79.17 %) of the total actual, eligible costs incurred in the
performance of the Grantee's duties specified in Exhibit A.
4.3. Matching Requirements The Grantee certifies that the following matching requirement for the grant contract
will be met by Grantee: No less than Twenty and Eighty Three Hundredths percent (20.83 %) of the total
actual, eligible costs incurred in the performance of the Grantee's duties specified in Exhibit A.
4.4. Payment
4.4.1. Invoices The State will promptly pay the Grantee after the Grantee presents an itemized invoice for the
services actually performed and the State's Authorized Representative accepts the invoiced services.
Invoices must be submitted timely and according to the schedule as outlined in Exhibit A.
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Grant (Rev. 11/08)
4.4.2. Federal funds. Payments under this grant contract will be made from federal funds obtained by the State
through Title III, part D, of the Energy Policy and Conservation Act (42 U.S.C. 6321 et seq. and
amendments thereto; CFDA No. 81.128. Payments under this grant contract also include funding from
the American Recovery and Reinvestment Act of 2009 (ARRA). The Grantee is responsible for
compliance with all federal requirements imposed on these funds and accepts full financial responsibility
for any requirements imposed by the Grantee's failure to comply with federal requirements.
5 Conditions of Payment
All services provided by the Grantee under this grant contract must be performed to the State's satisfaction, as
determined at the sole discretion of the State's Authorized Representative and in accordance with all applicable federal,
state, and local laws, ordinances, rules, and regulations. The Grantee will not receive payment for work found by the
State to be unsatisfactory or performed in violation of federal, state, or local law.
6 Authorized Representative
The State's Authorized Representative is Chris Gilchrist, Project Manager, 651- 297 -4634, or his successor, and has
the responsibility to monitor the Grantee's performance and the authority to accept the services provided under this
grant contract. If the services are satisfactory, the State's Authorized Representative will certify acceptance on each
invoice submitted for payment.
The Grantee's Authorized Representative is Dan Schultz, Director of Parks and Rec., 651- 322 -6012, or his successor.
If the Grantee's Authorized Representative changes at any time during this grant contract, the Grantee must
immediately notify the State.
7 Assignment, Amendments, Waiver, and Grant Contract Complete
7.1 Assignment The Grantee may neither assign nor transfer any rights or obligations under this grant contract
without the prior consent of the State and a fully executed Assignment Agreement, executed and approved by the
same parties who executed and approved this grant contract, or their successors in office.
7.2 Amendments. Any amendment to this grant contract must be in writing and will not be effective until it has been
executed and approved by the same parties who executed and approved the original grant contract, or their
successors in office.
7.3 Waiver. If the State fails to enforce any provision of this grant contract, that failure does not waive the provision
or its right to enforce it.
7.4 Grant Contract Complete. This grant contract contains all negotiations and agreements between the State and
the Grantee. No other understanding regarding this grant contract, whether written or oral, may be used to bind
either party.
8 Liability
The Grantee must indemnify, save, and hold the State, its agents, and employees harmless from any claims or causes of
action, including attorney's fees incurred by the State, arising from the performance of this grant contract by the
Grantee or the Grantee's agents or employees. This clause will not be construed to bar any legal remedies the Grantee
may have for the State's failure to fulfill its obligations under this grant contract.
9 State Audits
Under Minn. Stat. § 16C.05, subd. 5, the Grantee's books, records, documents, and accounting procedures and practices
relevant to this grant contract are subject to examination by the State and/or the State Auditor or Legislative Auditor, as
appropriate, for a minimum of six years from the end of this grant contract.
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Giant (Rev. 11/08)
10 Government Data Practices and Intellectual Property
10.1. Government Data Practices. The Grantee and State must comply with the Minnesota Government Data
Practices Act, Minn. Stat. Ch. 13, as it applies to all data provided by the State under this grant contract, and as it
applies to all data created, collected, received, stored, used, maintained, or disseminated by the Grantee under this
grant contract. The civil remedies of Minn. Stat. § 13.08 apply to the release of the data referred to in this clause
by either the Grantee or the State.
If the Grantee receives a request to release the data referred to in this Clause, the Grantee must immediately
notify the State. The State will give the Grantee instructions concerning the release of the data to the requesting
party before the data is released.
10.2. Intellectual Property Rights. GRANTEE represents and warrants that materials produced or used under this
grant contract do not and will not infringe upon any intellectual property rights of another, including but not
limited to patents, copyrights, trade secrets, trade names, and service marks and names. GRANTEE shall
indemnify and defend the STATE, at GRANTEE's expense, from any action or claim brought against the
STATE to the extent that it is based on a claim that all or part of the materials infringe upon the intellectual
property rights of another. GRANTEE shall be responsible for payment of any and all such claims, demands,
obligations, liabilities, costs, and damages including, but not limited to reasonable attorneys' fees arising out of
this grant contract, amendments and supplements thereto, which are attributable to such claims or actions.
If such a claim or action arises, or in GRANTEE's or the STATE's opinion is likely to arise, GRANTEE shall, at
the STATE's discretion, either procure for the STATE the right or license to continue using the materials at
issue or replace or modify the allegedly infringing materials. This remedy shall be in addition to and shall not
be exclusive to other remedies provided by law.
11 Workers' Compensation
The Grantee certifies that it is in compliance with Minn. Stat. § 176.181, subd. 2, pertaining to workers' compensation
insurance coverage. The Grantee's employees and agents will not be considered State employees. Any claims that
may arise under the Minnesota Workers' Compensation Act on behalf of these employees and any claims made by any
third party as a consequence of any act or omission on the part of these employees are in no way the State's obligation
or responsibility.
12 Publicity and Endorsement
12.1. Publicity. Any publicity regarding the subject matter of this grant contract must identify the State as the
sponsoring agency and must not be released without prior written approval from the State's Authorized
Representative. For purposes of this provision, publicity includes notices, informational pamphlets, press
releases, research, reports, signs, and similar public notices prepared by or for the Grantee individually or jointly
with others, or any subcontractors, with respect to the program, publications, or services provided resulting from
this grant contract.
12.2. Endorsement. The Grantee must not claim that the State endorses its products or services.
13 Governing Law, Jurisdiction, and Venue
Minnesota law, without regard to its choice -of -law provisions, governs this grant contract. Venue for all legal
proceedings out of this grant contract, or its breach, must be in the appropriate state or federal court with competent
jurisdiction in Ramsey County, Minnesota.
14 Termination
14.1 Termination by the STATE. The STATE may cancel this grant contract at anytime, with or without cause, upon
30 days written notice to the GRANTEE. Upon termination, the GRANTEE will be entitled to payment,
determined on a pro rata basis, for services satisfactorily performed.
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Grant (Rev. 11 /08)
14.2 Termination for Cause. The STATE may cancel this Grant Contract immediately if the STATE finds that there
has been a failure to comply with the provisions of this Grant Contract, that reasonable progress has not been
made or that the purposes for which the funds were granted have not been or will not be fulfilled. The STATE
may take action to protect the interests of the State of Minnesota, including the refusal to disburse additional
funds and requiring the return of all or part of the funds already disbursed.
14.3 Termination for Insufficient Funding. The State may immediately terminate this Grant Contract if: 1) funding
for Grant No. DE- EE0000757 is withdrawn by the US Department of Energy; 2) it does not obtain funding from
the Minnesota Legislature, or other funding source; or 3) if funding cannot be continued at a level sufficient to
allow for the payment of the services covered here. Termination must be by written or fax notice to the Grantee.
The State is not obligated to pay for any services that are provided after notice and effective date of termination.
However, the Grantee will be entitled to payment, determined on a pro rata basis, for services satisfactorily
performed to the extent that funds are available. The State will not be assessed any penalty if the Grant Contract
is terminated because of the decision of the Minnesota Legislature, or other funding source, not to appropriate
funds. The State must provide the Grantee notice of the lack of funding within a reasonable time of the State's
receiving that notice.
15 Data Disclosure
Under Minn. Stat. § 270C.65, Subd. 3, and other applicable law, the Grantee consents to disclosure of its social
security number, federal employer tax identification number, and/or Minnesota tax identification number, already
provided to the State, to federal and state tax agencies and state personnel involved in the payment of state obligations.
These identification numbers may be used in the enforcement of federal and state tax laws which could result in action
requiring the Grantee to file state tax returns and pay delinquent state tax liabilities, if any.
16 Davis -Bacon Act (DBA) Requirements
Section 1606 of ARRA requires that all laborers and mechanics employed by contractors and subcontractors on
construction, alteration, or repair projects funded directly by or assisted in whole or in part by ARRA Funds shall be
paid wages at rates not less than those prevailing on projects of a similar character in the locality as determined by the
Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code). Pursuant to
Reorganization Plan No. 14 and the Copeland Act, 40 USC 3145, the United States Department of Labor has issued
regulations 29 CFR Parts 1, 3, and 5 to implement the Davis -Bacon and related Acts. Wage determinations can be
found at: www.wdol.gov and additional information on DBA Requirements can be found at: www.dol.gov /esa/whd.
This contract does not explicitly or implicitly require that a scope of work proposed to satisfy the outcomes of the
Grantee's Program must include activities of a nature and scope that require DBA compliance. However, if proposed
work includes such activities, the state will hold the Grantee responsible for all federal requirements involving DBA
wages and reporting. It is the responsibility of the Grantee to determine if DBA wages will apply to their program.
17 Waste Management Plan
The Grantee is required to comply with all Federal, state and local regulations for waste disposal for projects funded
through the Grantee's program. Loan recipients must address waste generated by the project, if applicable, and describe
the plan to dispose of any sanitary or hazardous waste (e.g., construction and demolition debris, old light bulbs, lead
paint, lead ballasts, piping, roofing material, discarded equipment, debris, and asbestos) generated as a result of the
project.
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Grant (Rev. 11/08)
18 Compliance with National Historic Preservation Act
Prior to the expenditure of federal funds, if applicable, projects must be evaluated to determine if they are subject to
review under Section 106 of the National Historic Preservation Act (NHPA) of 1966 (36CFR 800). Section 106 applies
to projects that may affect properties listed in or eligible for listing in the National Register of Historic Places.
Properties meeting the following criteria will be subject to Section 106 review:
• Is at least 45 years old; and
• Listed in or eligible for listing in the NRHP (either individually or as part of a district);
• Any project involving ground disturbing activity (excavation, utility installation, etc.).
It is the responsibility of the Grantee to provide information needed to complete the Section 106 evaluation. Intentional
efforts to circumvent these requirements by altering or damaging a historic property that is a candidate for federal grant
funding will be construed as "anticipatory demolition\' as defined in section 110k of the NHPA as follows:
Section 110 [16 U.S.C. 470h -2(k) — Anticipatory demolition]; (k) Each Federal agency shall ensure that the agency
will not grant a loan, loan guarantee, permit, license, or other assistance to an applicant who, with intent to avoid the
requirements of section 106 of this Act, has intentionally significantly adversely affected a historic property to which
the grant would relate, or having legal power to prevent it, allowed such significant adverse effect to occur, unless the
agency, after consultation with the [Advisory Council on Historic Preservation], determines that circumstances justify
granting such assistance despite the adverse effect created or permitted by the applicant.
Initiating a grant funded project before reviews required under Section 106 of the NHPA have been completed may
cause significant delays in the release of grant funds, require negotiated mitigation, or result in an outright loss of
federal funding.
19 Disadvantaged Business Enterprises
Projects funded in whole or in part from funds received by the Grantee directly from this grant contract must, to the
extent practicable, ensure that bidding contractors are qualified and participate in available apprentice and training
programs for all work performed. Bidding for contracts must, to the extent practicable, use the process established in
Minnesota Statutes, section 16C.16, subdivision 4, 5, 6 and 7, except that subdivision 12 does not apply.
20 Buy American
The Grantee confirms that, if applicable, it is in compliance with the Buy American provision in the American
Reinvestment and Recovery Act of 2009 (ARRA) (Section 1605 of Title XI) which directs that, subject to certain
exceptions, no funds appropriated or otherwise made available for a project may be used for the construction,
alteration, maintenance, or repair of a public building or public work unless all the iron, steel, and manufactured goods
used are produced in the United States.
A Grantee requesting a determination regarding the inapplicability of the Buy American restrictions for lack of quantity
or quality, increase of cost of the project by more than 25 percent, or inconsistency with the public interest, must be
submitted to the State prior to the execution of the grant agreement. The prospective Grantee shall include the
information and applicable supporting data required by 2 CFR 176.140(c) and (d) in the request. Exceptions must be
approved by the State and the United States Department of Energy.
Additional information, including category exclusions and exceptions, on Buy American can be found at:
wwwl.eere.energy.gov/recovery/buy__4merican_provision.html.
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21 Reporting
Section 1512 of the American Recovery and Reinvestment Act of 2009 (ARRA) states recipients of "Recovery Act
funds must comply with the extensive reporting requirements." The GRANTEE must submit progress reports detailing
the progress and tasks completed of the grant agreement funded in whole, or in part, with ARRA funding including
percent of project completion to the STATE by the 5th day of each month for the preceding month's work. If a
GRANTEE does not comply with this requirement the STATE reserves the right to withhold funding.
Laws of Minnesota 2009, Chapter 138, Article 5, Section 2 (accountability and transparency reporting) specifies
additional recipient reporting requirements, including but not limited to data regarding hiring practices for jobs retained
or created under this agreement. The Grantee shall report this information on a form prescribed by the State which must
be submitted to the State by the 5th day of each month for the preceding month's work. If a Grantee does not comply
with this requirement the State reserves the right to withhold funding.
1. STATE ENCUMBRANCE VERIFICATION
Individual certifies that funds have been encumbered as
Required by Minn. Stat. §§ 16A.15 and 16C.05
Sign .
Dat
CFMS: /�� 17
2. CITY OF ROSEMOUNT
The Grantee certifies that the appropriate person(s) have executed the
grant contract on behalf of the Grantee as required by applicable
articles, bylaws, resolutions, or ordinances.
By:
Title:
Date:
By:
Title:
Date:
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Grant (Rev. 11/08)
3. MN DEPARTMENT OF COMMERCE
Individual certifies thatfunds have been encumbered as
required by Minn. Stat. §§ 16A.15 and 16C.05.
By:
Title:
Date:
Distribution:
MN Dept. of Commerce, Accounting Dept.
Grantee
State's Authorized Representative (copy)
Exhibit A
GRANTEE'S DUTIES
A. GRANTEE shall do all things necessary to complete the following tasks:
1 Rosemount Community Center and Arena:
1.1 Lighting upgrade including 362 fixtures, 40
sensors and power packs $46.995 $5.000 $51.995 09/30/10
2 Rosemount St. Joes Building:
replacement 2.1 Heating system
boiler $48,000 $20,000 $68,000 12/31/
E� Y
B. Eligible Costs
Eligible costs include necessary and reasonable costs incurred for subcontractors to:
1. Design, acquire, install and commission measures specified in Table 1; and
2. Remove, store, transport and dispose of waste materials generated.
Eligible costs include actual costs incurred by subcontractors. Other expenses may be eligible only if pre - approved in
writing by the State's Authorized Representative. Please note: A DUNS number is required for any subcontractor
receiving direct funding from this grant agreement totaling $25,000 or more.
C. Payments - Reporting
Grantee shall submit monthly progress reports and payment requests for reimbursement of eligible costs incurred not
later than the 5t` day of each month for the preceding month's work. Grantee shall submit progress reports and
payment requests on the form provided as Exhibit B of this grant agreement.
Grantee further agrees to maintain and provide energy consumption data for the building being improved through the
133 public building benchmarking database by:
a) entering base line data for the year prior to the grant agreement; and
b) entering monthly data for a period of three years after the energy efficiency improvements(s) have been made.
D. Acceptance Testing Documentation (If Applicable)
Grantee shall submit to Office of Energy Security (OES) acceptance testing documentation required by Minnesota
Rules Part 1323.0672, Subpart 3, for modifications to heating, ventilating and/or air conditioning systems. Final
reimbursement for these types of modifications will not be made until the acceptance testing documentation is received
by OES.
E. Promotional Materials
All promotional and informational materials distributed by or for the Grantee shall contain the following statement:
"This project was made possible by a grant from the U.S. Department of Energy and the Minnesota Department of
Commerce through the American Recovery and Reinvestment Act of 2009 (ARRA)," unless this requirement is waived
in writing by the State.
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Grant (Rev. 11/08)
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Exhibit C
Grantee's Davis -Bacon Act (DBA) Requirements
Clause I. Davis Bacon Act and Contract Work Hours and Safety Standards Act.
Definitions: For purposes of this clause, Clause I, Davis Bacon Act and Contract Work Hours and Safety Standards Act,
the following definitions are applicable:
(1) "Award" means any grant, cooperative agreement or technology investment agreement made with Recovery
Act funds by the Department of Energy (DOE) to a Recipient. Such Award must require compliance with the
labor standards clauses and wage rate requirements of the Davis -Bacon Act (DBA) for work performed by all
laborers and mechanics employed by Recipients (other than a unit of State or local government whose own
employees perform the construction) Subrecipients, Contractors, and subcontractors.
(2) "Contractor" means an entity that enters into a Contract. For purposes of these clauses, Contractor shall
include (as applicable) prime contractors, Recipients, Subrecipients, and Recipients' or Subrecipients'
contractors, subcontractors, and lower -tier subcontractors. "Contractor" does not mean a unit of State or local
government where construction is performed by its own employees."
(3) "Contract" means a contract executed by a Recipient, Subrecipient, prime contractor, or any tier
subcontractor for construction, alteration, or repair. It may also mean (as applicable) (i) financial assistance
instruments such as grants, cooperative agreements, technology investment agreements, and loans; and, (ii) Sub
awards, contracts and subcontracts issued under financial assistance agreements. "Contract" does not mean a
financial assistance instrument with a unit of State or local government where construction is performed by its
own employees.
(4) "Contracting Officer" means the DOE official authorized to execute an Award on behalf of DOE and who is
responsible for the business management and non - program aspects of the financial assistance process.
(5) "Recipient" means any entity other than an individual that receives an Award of Federal funds in the form of
a grant, cooperative agreement, or technology investment agreement directly from the Federal Government and is
financially accountable for the use of any DOE funds or property, and is legally responsible for carrying out the
terms and conditions of the program and Award.
(6) "Subaward" means an award of financial assistance in the form of money, or property in lieu of money, made
under an award by a Recipient to an eligible Subrecipient or by a Subrecipient to a lower -tier subrecipient. The
term includes financial assistance when provided by any legal agreement, even if the agreement is called a
contract, but does not include the Recipient's procurement of goods and services to carry out the program nor
does it include any form of assistance which is excluded from the definition of "Award" above.
(7) "Subrecipient" means a non - Federal entity that expends Federal funds received from a Recipient to carry out
a Federal program, but does not include an individual that is a beneficiary of such a program.
(a) Davis Bacon Act
(1) Minimum wages.
(i) All laborers and mechanics employed or working upon the site of the work (or under the United States
Housing Act of 1937 or under the Housing Act of 1949 in the construction or development of the project),
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.
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Grant (Rev. 11/08)
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.
(ii)(A) The Contracting Officer 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 Contracting Officer shall approve 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;
(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 Contracting Officer agree on the classification and wage rate (including the amount
designated for fringe benefits where appropriate), a report of the action taken shall be sent by the Contracting
Officer to the Administrator of the Wage and Hour Division, U.S. Department of Labor, Washington, DC
20210. The Administrator, or an authorized representative, will approve, modify, or disapprove every additional
classification action within 30 days of receipt and so advise the Contracting Officer or will notify the
Contracting Officer 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 Contracting Officer do not agree on the proposed classification and wage rate
(including the amount designated for fringe benefits, where appropriate), the Contracting Officer shall refer the
questions, including the views of all interested parties and the recommendation of the Contracting Officer, to
the Administrator for determination. The Administrator, or an authorized representative, will issue a
determination within 30 days of receipt 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.
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The Department of Energy or the Recipient or Subrecipient shall upon its own action or upon written request of 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 (or under the United States Housing Act of 1937 or under the
Housing Act of 1949 in the construction or development of the project), all or part of the wages required by the
Contract, the Department of Energy, Recipient, or Subrecipient, 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 (or under the United States Housing Act of 1937, or under the Housing Act of 1949, in the
construction or development of the project). 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 I (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 Department of Energy if the agency is a parry to the Contract, but if the agency
is not such a party, the Contractor will submit the payrolls to the Recipient or Subrecipient (as
applicable), applicant, sponsor, or owner, as the case may be, for transmission to the Department of
Energy. The payrolls submitted 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 weekly transmittals. 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
http:// www. dol. QOV /esa/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 Department of Energy if the agency is a party to the Contract, but if the
agency is not such a party, the Contractor will submit them to the Recipient or Subrecipient (as
applicable), applicant, sponsor, or owner, as the case may be, for transmission to the Department of
Energy, 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 sponsoring government
agency (or the Recipient or Subrecipient (as applicable), applicant, sponsor, or owner).
(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 3729 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 Department
of Energy 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 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 deternnation 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
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rlo 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 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) Contracts and Subcontracts. The Recipient, Subrecipient, the Recipient's, and Subrecipient's contractors and
subcontractor shall insert in any Contracts the clauses contained herein in(a)(1) through (10) and such other clauses
as the Department of Energy may by appropriate instructions require, and also a clause requiring the subcontractors
to include these clauses in any lower tier subcontracts. The Recipient shall be responsible for the compliance by any
subcontractor or lower tier subcontractor with all of the paragraphs in this clause.
(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 Recipient, Subrecipient, the Contractor (or any of its subcontractors), and the
contracting agency, 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 firm 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 U.S.C. 1001.
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(b) Contract Work Hours and Safety Standards Act. 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 (b)(1) of this section, the Contractor and any subcontractor responsible therefor 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 (b)(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 (b)(1)
of this section.
(3) Withholding for unpaid wages and liquidated damages. The Department of Energy or the Recipient or
Subrecipient shall upon its own action or upon written request of an authorized representative of the Department of
Labor 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 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) Contracts and Subcontracts. The Recipient, Subrecipient, and Recipient's and Subrecipient's contractor or
subcontractor shall insert in any Contracts, the clauses set forth in paragraph (b)(1) through (4) of this section and
also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The Recipient shall
be responsible for compliance by any subcontractor or lower tier subcontractor with the clauses set forth in
paragraphs (b)(1) through (4) of this section.
(5) 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. 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 Department of Energy and the Department of Labor, and the Contractor or
subcontractor will permit such representatives to interview employees during working hours on the job
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