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Page 27 of 50 <br />200.322 Procurement of recovered materials. <br />A non -Federal entity that is a state agency or agency of a political subdivision of a state and its <br />contractors must comply with section 6002 of the Solid Waste Disposal Act, as amended by the <br />Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring <br />only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR <br />part 247 that contain the highest percentage of recovered materials practicable, consistent with <br />maintaining a satisfactory level of competition, where the purchase price of the item exceeds <br />$10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; <br />procuring solid waste management services in a manner that maximizes energy and resource <br />recovery; and establishing an affirmative procurement program for procurement of recovered <br />materials identified in the EPA guidelines. <br />[78 FR 78608, Dec. 26, 2011, as amended at 79 FR 75885, Dec. 19, 2014] <br />200.323 Contract cost and price. <br />(a) The non -Federal entity must perform a cost or price analysis in connection with every <br />procurement action in excess of the Simplified Acquisition Threshold including contract <br />modifications. The method and degree of analysis is dependent on the facts surrounding <br />the particular procurement situation, but as a starting point, the non -Federal entity must <br />make independent estimates before receiving bids or proposals. <br />(b) The non -Federal entity must negotiate profit as a separate element of the price for each <br />contract in which there is no price competition and in all cases where cost analysis is <br />performed. To establish a fair and reasonable profit, consideration must be given to the <br />complexity of the work to be performed, the risk home by the contractor, the contractor's <br />investment, the amount of subcontracting, the quality of its record of past performance, <br />and industry profit rates in the surrounding geographical area for similar work. <br />(c) Costs or prices based on estimated costs for contracts under the Federal award are <br />allowable only to the extent that costs incurred or cost estimates included in negotiated <br />prices would be allowable for the non -Federal entity under Subpart F—Cost Principles of <br />this part. The non -Federal entity may reference its own cost principles that comply with <br />the Federal cost principles. <br />(d) The cost plus a percentage of cost and percentage of construction cost methods of <br />contracting must not be used. <br />200.324 Federal awarding agency or pass -through entity review. <br />(a) The non -Federal entity must make available, upon request of the Federal awarding agency <br />or pass -through entity, technical specifications on proposed procurements where the <br />Federal awarding agency or pass -through entity believes such review is needed to ensure <br />that the item or service specified is the one being proposed for acquisition. This review <br />generally will take place prior to the time the specification is incorporated into a <br />Agreement No. R19AP00131 AgmemeatTemplate <br />20C-29 (0312019) <br />