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instances where contractors violate or breach contract terms, and provide for such sanctions and penalties as
<br />appropriate.
<br />(B) All contracts in excess of 510,000 roust address termination for cause and for convenience by the non -Federal
<br />entity including the manner by which it will be effected and the basis for settlement.
<br />(C) Equal Employment Opportunity. Except as otherwise provided under 41 C.F.R. Part 60, all contracts that meet
<br />the definition of "Federally assisted construction contract" in 41 C.F.R. Part 60-1.3 must include the equal
<br />opportunity clause provided under 41 CY.R. Part 60-1.4(b), in accordance with Executive Order 11246, "Equal
<br />Employment Opportunity" (30 FR 12319, 12935, 3 C,F,R. Pari, 1964-1965 Comp., p, 339), as amended by
<br />Executive Order 11375, "Amending Executive Order 11246 Relating to Equal Employment Opportunity," and
<br />implementing regulations at 41 C.F.R. Part 60, `'Office of Federal Contract Compliance Programs, Equal
<br />Employment Opportunity, Department of Labor."
<br />(D) Davis -Bacon Act, as amended (40 U.S.C. 3141-3148). When required by Federal program legislation, all
<br />Prime construction contracts in excess of $2,000 awarded by non -Federal entities must include a provision for
<br />compliance with the Davis -Bacon Act (40 U.S.C. 3141-3144, and 3146-3148) as supplemented by Department of
<br />Labor regulations (29 C.F.R. Part 5, "Labor Standards Provisions Applicable to Contracts Covering Federally
<br />Financed and Assisted Construction"). In accordance with the statute, contractors must be required to pay wages to
<br />laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the
<br />Secretary of Labor. In addition, contractors roust be required to pay wages not less than once a week. The non -
<br />Federal entity roust place a copy of the current prevailing wage determination issued by the Department of Labor
<br />in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of
<br />the wage determination. The non -Federal entity roust report all suspected or reported violations to the Federal
<br />awarding agency. The contracts must also include a provision for compliance with the Copeland "Anti -Kickback"
<br />Act (40 U,S.C. 3145), as supplemented by Department of Labor regulations (29 C.F.R. Part 3, "'Contractors and
<br />Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the
<br />United States"). The Act provides that each contractor or subrecipient must be prohibited from inducing, by any,
<br />means, any person employed in the construction, completion, or repair of public work,, to give up any part of the
<br />compensation to which he or she is otherwise entitled, The non. -Federal entity roust report all suspected or reported
<br />violations to the Federal awarding agency.
<br />(E) Contract Work Hours and Safety Standards Act (40 U.S.C. 3701-3705). Where applicable, all contracts
<br />awarded by the non -Federal entity in excess of $100,000 that involve the employment of mechanics or laborers
<br />must include a provision for compliance with 40 U.S.C. 3702 and 3704, as supplemented by Department of Labor
<br />regulations (29 C.F.R. Part 5), Under 40 U,S.C. 3702 of the Act, each contractor must be requited to compute the
<br />wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the
<br />standard work week is permissible provided that the worker is compensated at a rate of not less than one and a half
<br />times the basic rate of pay for all hours worked in excess of 40 hours in the work weep. The requirements of 40
<br />U.S.C. 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work
<br />in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do
<br />not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts
<br />for transportation or transmission of intelligence.
<br />(F) Rights to Inventions Made Under a Contract or Agreement. If the Federal award meets the definition of
<br />"funding agreement" under 37 C.F.R. X401,2 (a) and the recipient or subrecipient wishes to enter into a contract
<br />with a small business firm or nonprofit organization regarding the substitution of parties, assignment or
<br />performance of experimental, developmental, or research work under that `funding agreem'11t," the recipient or
<br />subrecipient must: comply with the requirements of 37 C.F.R. Part 401, "Rights to Inventions Made by Nonprofit
<br />Initials DL
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