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VII. <br />Where employees are engaged in activities not covered under the Occupational Safety <br />and Health Act of 1970, they shall not be required or permitted to work, be trained, or receive <br />services in buildings or surroundings or under working conditions which are unsanitary, <br />hazardous, or dangerous to the participants' health or safety. <br />H. Hatch Act <br />The SUBRECIPIENT agrees that no funds provided, nor personnel employed under this <br />AGREEMENT, shall be in any way or to any extent engaged in the conduct of political activities <br />in violation of the Hatch Act, 5 U.S.C. Section 1501 et seq. <br />Davis -Bacon Act <br />All laborers and mechanics employed by contractors or subcontractors in the <br />performance of construction work, including alterations and repairs, in excess of $2,000.00, <br />financed in whole or in part with federal funds shall be paid wages at rates not less than those <br />prevailing on similar construction in the locality as determined in accordance with the Davis - <br />Bacon Act, as amended, 40 U.S.C. 3142. Any such construction contract shall include and <br />comply with the required contract provisions and rules set forth in 29 C.F.R. §5.5. Further, the <br />payroll reports (along with the "Statement of Compliance") and basic records are required to be <br />maintained and submitted, or made available, pursuant to 29 C.F.R. §5.5(a)(3). No payment, <br />advance, grant, loan or guarantee of funds shall be approved by the federal agency unless there is <br />on file with the agency a certification by the contractor that the contractor and its subcontractors <br />have complied with the provisions of 29 C.F.R. §5.5. A breach of the contract clauses in 29 <br />C.P.R. §5.5 may be grounds for termination of the contract, and for debarment as a <br />contractor/subcontractor, as provided in 29 C.F.R. §5.12. Labor standards <br />interviews/investigations shall be made as necessary to assure compliance. See 29 C.F.R. <br />§5.6(a)(3). <br />A. Generally <br />The following requirements and standards must be complied with: 2 CFR Part 200, or al. <br />SUBRECIPIENT shall procure all materials, property, or services in accordance with the <br />requirements of 2 CFR 200.318-326. <br />B. Procurement <br />(1) Compliance. The SUBRECIPIENT shall comply with current HUD and CITY <br />policies concerning the procurement of equipment, goods, and services, and shall <br />maintain inventory records of all non -expendable personal property as defined by such <br />policy as may be procured with funds provided herein. The SUBRECIPIENT shall report <br />to the CITY all program assets (unexpended program income, property, equipment, etc.), <br />and upon the CITY'S request, such assets shall revert to the CITY upon termination of <br />this AGREEMENT. <br />(2) Pursuant to 2 CFR 200.331 (a) (4), the Indirect Cost Rate for the <br />SUBRECIPIENT's award shall be an approved federally recognized cost rate negotiated <br />Page 13 of 23 <br />