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<br />W AIS Document Retrieval <br /> <br />http://frwebgate.access.gpo .gov 1 cgi-bin! get -cft. cgi <br /> <br />Attachment B <br /> <br />[Code of Federal Regulations] <br />[Title 24, Volume 1] <br />[Revised as of April 1, 2002] <br />From the U.S. Government Printing Office via GPO Access <br />[CITE: 24CFR85.36] <br /> <br />[Page 501-507] <br /> <br />TITLE 24--HOUSING AND URBAN DEVELOPMENT <br /> <br />PART 85--ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOPERATIVE AGREEMENTS TO STATE, <br /> <br />Subpart C--Post-Award Requirements <br /> <br />Sec. 85.36 Procurement. <br /> <br />(a) States. When procuring property and services under a grant, a <br />State will follow the same policies and procedures it uses for <br />procurements from its non-Federal funds. The State will ensure that <br />every purchase order or other contract includes any clauses required by <br />Federal statutes and executive orde+s and their implementing <br />regulations. Other grantees and subgrantees will follow paragraphs (b) <br />through (i) in this section. I <br />(b) Procurement standards. (1) Grantees and subgrantees will use <br />their own procurement procedures which reflect applicable State and <br />local laws and regulations, provided that the procurements conform to <br />applicable Federal law and the standards identified in this section. <br />(2) Grantees and subgrantees will maintain a contract administration <br />system which ensures that contractors perform in accordance with the <br />terms, <br /> <br />[[Page 502]] <br /> <br />conditions, and specifications of their contracts or purchase orders. <br />(3) Grantees and subgrantees will maintain a written code of <br />standards of conduct governing the performance of their employees <br />engaged in the award and administration of contracts. No employee, <br />officer or agent of the grantee or subgrantee shall participate in <br />selection, or in the award or administration of a contract supported by <br />Federal funds if a conflict of interest, real or apparent, would be <br />involved. Such a conflict would arise when: <br />(i) The employee, officer or agent, <br />(ii) Any member of his immediate family, <br />(iii) His or her partner, or <br />(iv) An organization which employs, or is about to employ, any of <br />the above, has a financial or other interest in the firm selected for <br />award. The grantee's or subgrantee's officers, employees or agents will <br />neither solicit nor accept gratuities, favors or anything of monetary <br />value from contractors, potential contractors, or parties to <br />subagreements. Grantee and subgrantees may set minimum rules where the <br />financial interest is not substantial or the gift is an unsolicited item <br />of nominal intrinsic value. To the extent permitted by State or local <br />law or regulations, such standards or conduct will provide for <br />penalties, sanctions, or other disciplinary actions for violations of <br />such standards by the grantee's and subgrantee's officers, employees, or <br />agents, or by contractors or their agents. The awarding agency may in <br />regulation provide additional prohibitions relative to real, apparent, <br />or potential conflicts of interest. <br />(4) Grantee and subgrantee procedures will provide for a review of <br />proposed procurements to avoid purchase of unnecessary or duplicative <br />items. Consideration should be given to consolidating or breaking out <br />procurements to obtain a more economical purchase. Where appropriate, an <br />analysis will be made of lease versus purchase alternatives, and any <br />other appropriate analysis to determine the most economical approach. <br />(5) To foster greater economy and efficiency, grantees and <br /> <br />10f7 <br /> <br />12/4/02 I :26 PM <br />