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<br />(4) <br /> <br />I <br /> <br />Grantee and sub grantee procedures will provide for a review of proposed procurements to <br />avoid purchase of unnecessary or duplicative items. Consideration should be given to <br />consolidating or breaking out procurements to obtain a more economical purchase. Where <br />appropriate, an analysis will be made of lease versus purchase alternatives, and any other <br />appropriate analysis to determine the most economical approach. <br /> <br />(5) To foster greater economy and efficiency, grantees and subgrantees are encouraged to <br />enter into State and local intergovernmental agreements for procurement or use of <br />common goods and services. <br /> <br />(6) Grantees and subgrantees are encouraged to use Federal excess and surplus property in <br />lieu of purchasing new equipment and property whenever such use is feasible and reduces <br />project costs. <br /> <br />I <br /> <br />I <br /> <br />(7) Grantees and sub grantees are encouraged to use value engineering clauses in contracts for <br />construction projects of sufficient size to offer reasonable opportunities for cost <br />reductions. Value engineering is a systematic and creative analysis of each contract item or <br />task to ensure that its essential function is provided at the overall lower cost. <br /> <br />(8) <br /> <br />Grantees and sub grantees will make awards only to responsible contractors possessing the <br />ability to perform successfully under the terms and conditions of a proposed procurement. <br />Consideration will be given to such matters as contractor integrity, compliance with public <br />policy, record of past performance, and financial and technical resources. <br /> <br />(9) <br /> <br />Grantees and sub grantees will maintain records sufficient to detail the significant history of <br />a procurement. These records will include, but are not necessarily limited to the following: <br />rationale for the method of procurement, selection of contract type, contractor selection <br />or rejection, and the basis for the contract price. <br /> <br />(10) Grantees and subgrantees will use time and material type contracts only <br /> <br />(i) After a determination that no other contract is suitable, and <br />(ii) If the contract includes a ceiling price that the contractor exceeds at its own risk. <br /> <br />(11) Grantees and subgrantees alone will be responsible, in accordance with good <br />administrative practice and sound business judgment, for the settlement of all contractual <br />and administrative issues arising out of procurements. These issues include, but are not <br />limited to source evaluation, protests, disputes, and claims. These standards do not relieve <br />the grantee or subgrantee of any contractual responsibilities under its contracts. Federal <br />agencies will not substitute their judgment for that of the grantee or sub grantee unless the <br />matter is primarily a Federal concern. Violations of law will be referred to the local, State, <br />or Federal authority having proper jurisdiction. <br /> <br />(12) Grantees and subgrantees will have protest procedures to handle and resolve disputes <br />relating to their procurements and shall in all instances disclose information regarding the <br />protest to the awarding agency. A protestor must exhaust all administrative remedies with <br />the grantee and subgrantee before pursuing a protest with the Federal agency. Reviews of <br />protests by the Federal agency will be limited to: <br />