INTRODUCTION 

A subgrantee receiving National Park Service funding must comply with the provisions of the Historic Preservation Grants Manual and other applicable federal and state regulations. 

The purpose of this “Manual” is to provide general guidelines, define responsibilities and requirements that will assist the project director and the financial manager in management of their grant.  The contents of this manual are based on the National Park Service’s Historic Preservation Fund Grants Manual, 1997 Release, as amended.

If there are any questions regarding this manual, National Park Service Manual, or any other state or federal regulations, please contact:

Ron James, State Historic Preservation Officer, (775) 684-3440
Alice Baldrica, Deputy State Historic Preservation Officer, (775) 684-3444
Rebecca Ossa, Architectural Historian, (775) 684-3441
Kelly Osborne, Grants and Projects Analyst, (775) 684-3446

 100 North Stewart Street
Carson City, Nevada 89701
(775) 684-3442 FAX

INDEX

I.            FISCAL RESPONSIBILITIES (click on section title to go to section)
II.           PROJECT PERSONNEL
III.          ACCOUNTING REQUIREMENTS
IV.         PROGRAM INCOME
V.          MATCH REQUIREMENTS
VI.         NON-SUPPLANTING REQUIREMENT
VII.        ALLOWABLE/UNALLOWABLE COSTS
VIII.       REQUESTS FOR REIMBURSEMENT
IX.         PERSONNEL COSTS
X.          TRAVEL
XI.         TRAINING
XII.        SUPPLIES AND OPERATING EXPENSES
XIII.       EQUIPMENT/PROPERTY-MANAGEMENT/INVENTORY
XIV.      CONTRACTUAL PROFESSIONAL SERVICES
XV.       PROCUREMENT OF GOODS AND SERVICES
XVI.      CONTRACT PROVISIONS
XVII.     BUDGET REVISIONS
XVIII.    REPORTING REQUIREMENTS
XIX.      GRANT EXTENSIONS
XX.       GRANT CLOSE-OUT PROCEDURES
XXI.      PUBLICITY
XXII.     SUSPENSION OF FUNDING
XXIII.    CONFLICT OF INTEREST
XXIV.   DRUG FREE WORKPLACE
XXV.    LOBBYING RESTRICTIONS
XXVI.   AUDIT REQUIREMENTS

FORMS
In order to view these files, you may need to download and install
FREE Adobe Acrobat Reader Software.

Donated Material Form

Donated Equipment Form

Donated Labor Form

Monthly Financial Report

Travel Claim

Property Inventory

Competitive Negotiation Documentation

Project Change Request

Quarterly Progress Report
 

SECTION I
FISCAL RESPONSIBILITIES

 A.               All recipients of federal funding are required to establish and maintain accounting systems and financial records to accurately account for funds awarded to them.  The records will include federal funds, and all matching funds of state, local, and private organizations.

B.                Funds awarded will be expended only for activities and purposes stated in the approved budget and scope of work and within the approved grant period.

C.               Grant funds must be obligated before the end date of the grant period.

D.               Obligated funds are those funds for which goods or services have been ordered or received, but which have not been disbursed.  These obligations and payments include both federal dollars and matching contributions.

SECTION II
PROJECT PERSONNEL 

A.               PROJECT DIRECTOR

The project director is the individual who is directly in charge of the project and is familiar with all aspects of the program.  He or she shares responsibility with the financial manager for certifying all expenditures are valid and necessary.  The project director is also responsible for compliance with all regulations and submitting quarterly reports.

B.                FINANCIAL MANAGER

The financial manager is responsible for all fiscal matters relating to the project and the individual ultimately in charge of accounting, management of funds, verification of expenditures, and subgrant financial reports.  The financial manager is someone other than the project director.

SECTION III
ACCOUNTING REQUIREMENTS

Accounting systems for all federal projects must ensure the following:

·        That National Park Service funds are NOT commingled with funds from other federal funding sources.

·        Subrecipients are prohibited from commingling funds on either a program-by-program or a project-by-project basis.  Each award must be accounted for separately.

·        Funds specifically budgeted and/or received for one project cannot be used to support another.

·        Funds cannot be obligated until the first day of the Funding Agreement.

ACCOUNTING SYSTEM CRITERIA

A subgrantee must use an adequate accounting system that meets the following criteria:

A. Presents and classifies projected historical cost of the grant as required for budgetary and evaluation purposes;

B. Provides cost and property control to ensure optimal use of funds, including a tracking system for property records of all equipment (further discussion in the equipment section);

C. Controls funds and other resources to assure expenditure of funds  and property use are in conformance with any general or special conditions that apply to the recipient;

D. Meets the prescribed requirement for periodic financial reporting of operations;

E.  Provides financial data for planning, control, measurement, and evaluation of direct and indirect costs;

F.  Maintains all required records for three years from the date of the final report or until all questions arising from an audit have been resolved.

 
SECTION IV
PROGRAM INCOME

ACCOUNTING FOR PROGRAM INCOME

All income generated as a direct result of a federally funded project will be deemed program income.  It must be used for the purposes and under the conditions applicable to the award.  The federal portion of program income must be accounted for up to the same ratio of federal participation as funded in the project or program.

A. Use of program income may be to supplement project costs, reduce project costs, or may be refunded to the federal government.  Examples of program income:

1.  Sale of Property

2.  Royalties

3.  Attorney fees’ and costs – income received from a court-ordered award

4.  Registration/Tuition fees

B. No federal requirements are governing disposition of program income earned after the end of the funding period unless the terms of the award or the awarding agency’s regulations provide otherwise.

SECTION V
MATCH REQUIREMENTS

A.               All subgrantees must maintain records that clearly show the source, amount, and timing of all match contributions.  The following may be used as “hard” cash match:

1.     Local and state appropriations.

2.     Funds contributed from private sources.

3.     Salaries of existing personnel who are transferred to grant activities ONLY if the original positions are filled with new personnel and the salaries are not claimed for reimbursement.

NOTE:  The agency must prove additional staffing was hired to do the original assignments at a comparable salary rate.

The following may be used as “in-kind” match:

1.     Donations of expendable equipment, office supplies, workshop or classroom materials, or workspace.  (Please use Donated Equipment and Donated Material Valuation forms included in Appendix.)

2.     The monetary value of time contributed by professional and technical personnel and other skilled and unskilled labor if the services they provide are an integral and necessary part of the funded project.

NOTE:  The value placed on loaned or donated equipment may not exceed it fair rental value.  The value placed on donated services must be consistent with the rate of compensation paid for similar work in the organization or the labor market.  Fringe benefits may be included by the recipient organization for its own employees.

3.     All volunteer services claimed as the nonfederal portion of the matching grant must be documented by time records signed by both the volunteer and supervisor.  Time accounting for project volunteers is identical to that required for paid personnel.  Such records must show the actual hours worked and the basis for determining the volunteer’s contribution rate.  (Please use Donated Labor Valuation form included in Appendix.)

4.     Rates charged for volunteers serving within their profession must be consistent with rates paid in State government for comparable activities; rates charged must be consistent with those paid for similar work in the labor market and cannot exceed the GS-15 hourly rate.

5.     If a volunteer performs services outside his profession, that labor must be assessed at federal minimum wage unless a higher rate is approved by SHPO.

6.     In-kind contributions for items other than personnel services must reflect fair market value and must be of such nature that if the federal share were used to pay for the contribution, the grantee would have incurred an allowable cost.  The nonfederal share is subject to audit, along with the federal share.

B.                Indirect cost rates may be claimed only if the agency has a pre-negotiated agreement with the federal government.  A copy of the pre-negotiated agreement must be submitted to the SHPO.

C.               Federal money cannot be used to match SHPO grant money, except Community Development Block Grants through the U.S. Department of Housing and Urban Development. 

D.               The matching share must be obligated by the end of the period for which the federal funds have been made available.

SECTION VI
NON-SUPPLANTING REQUIREMENT

Federal funds must be used to SUPPLEMENT existing funds for program activities and MAY NOT REPLACE (supplant) non-federal funds that have been appropriated for the same purpose.  Potential supplanting will be the subject of monitoring and audit.  Violations can result in a range of penalties, including suspension of future funds under this program, suspension or debarment from federal grants, recoupment of monies provided under this grant, and civil and/or criminal penalties.

(Example:  If a purchase of equipment is necessary for the project; however, the agency involved already has budgeted for this purchase, use of federal funds for that same equipment would reduce the agency’s budget.  This would be supplanting.  However, if that same agency purchased the equipment in their original budget for use by that agency and used the federal funds to purchase additional equipment for the project, the federal funds have supplemented the agency’s budget.)

 
SECTION VII
ALLOWABLE/UNALLOWABLE COSTS

All costs must be necessary to the success of the project.  Guidance documents for allowable and unallowable costs are OMB A-87 and OMB A-122.  There are certain allowable and unallowable costs that are unique to each type of grant.  If you are not sure a cost is allowable, please call the SHPO. 

Development projects provide funding for protection, stabilization, preservation, rehabilitation, restoration and construction.  Development work may not begin until all predevelopment (plans, specifications, etc) has been reviewed and approved by a qualified historical architect or architectural historian as being in conformance with the Secretary of the Interior’s Standards for the Treatment of Historic Properties, attached hereto in the Appendix.

Examples of allowable development expenses may include items listed below.  Specific, more detailed work items in parentheses ( ), are provided only as a guide to explain the type of detailed work which would fall into major categories.

·        General conditions (start-up costs, scaffolding, and project publicity sign)

·        Site work (subsurface investigation, demolition, drainage, underpinning)

·        Concrete (poured-in-place, precast, restoration, and cleaning)

·        Masonry (mortar, unit masonry, stone, restoration, and cleaning)

·        Metals (structural metal framing, metal finishes, and restoration)

·        Wood and plastic (rough carpentry, finish carpentry, architectural woodwork, and millwork)

·        Thermal and moisture protection (waterproofing, damp proofing, insulation, roofing, flashings)

·        Doors and windows (doors and frames, entrances and storefronts, window repair and restoration, window replacement, hardware)

·        Finishes (lathe and plaster, gypsum wallboard, ceramic tile, wood, brick, and stone flooring, painting)

·        Specialties (fire extinguisher and cabinets)

·        Special conditions (solar and wind energy systems)

·        Conveying systems (elevators)

·        Mechanical (plumbing, fire protection, heating, cooling, air distribution)

·        Electrical (service and distribution, lighting)

Some of the more generic unallowable costs are:

·        Corporate formation

·        State and local sales tax

·        Costs incurred outside the project beginning and ending dates

·        Imputed interest

·        Fundraising

·        Lobbying

·        Bonuses or commissions

·        Travel of federal employees

·        Compensation of federal employees

SECTION VIII
REQUESTS FOR REIMBURSEMENT

Claims for reimbursement of expenditures must be submitted on a “Monthly Financial Report” form included in Appendix.  Unless an exception is made for your particular project, the following guidelines apply.

A.   Claims are based on a reimbursement policy.  Reimbursement will only be made after the subgrantee or contractor has incurred the expense and documented payment.

B.    Reimbursement will only be made for actual cash expenditures or reimbursable services rendered.  Reimbursement cannot be paid for “in-kind” contributions.

C.   Reimbursement will be made only on authorized items listed in Scope of Work in the Funding Agreement.

D.   All claims must have supporting documentation that balances to the amounts being claimed for each category.  Only authorized expenditures will be reimbursed.

E.    Claims for reimbursement must be accompanied by clear photocopies of invoices for all items charged to the project.  Invoices must contain the company name or individual providing service, along with a description of the item or service purchased, the date, and a unit price.

F.    Proof of payment must be provided (clear copies of cancelled check [front and back]) for the total amount of the reimbursement request.  The same documentation must be provided for the matching portion of the grant.  Each check must be cross-referenced with the invoice (write or stamp the check number on each invoice).  If payments are made in cash, they must not exceed $10 per invoice.  No cash expenses will be accepted without prior arrangements with the SHPO.

G.   Claims for reimbursement should be submitted monthly.  Claims must be submitted within 30 days of the close of the previous month (i.e., October’s request should be submitted by November 30, etc.)

H.   Claims for reimbursement must identify the project number assigned by the SHPO.  The number is to be written or typed on each page of correspondence and supporting material.

I.       All project work must be completed and expenditures incurred within the approved project period.

J.      Reimbursement payments will be adjusted to correct previous overpayments and disallowances resulting from non-supported expenditures, audit, or project review.

 
SECTION IX
PERSONNEL COSTS 

A.               Personnel costs include salaries, overtime, fringe benefits, and other employee-related direct costs.

B.                Time and Attendance Records - Accurate time and attendance records are required to be maintained on all personnel whose salaries are charged to the project.  Where salaries apply to execution of two or more grant programs or cost activities, a proration of costs to each activity must be made based on time and/or effort reports.  These records should contain the following information:

1.     An employee’s name and title

2.     Dates (day, month & year) and hours charged to the project.

3.     Hourly wages

          The subgrantee may use any form that provides the above information.  IN NO CASE IS DUAL COMPENSATION ALLOWABLE.

C.               Information required for reimbursement:

1.     The subgrantee must attach support documentation for each claim to justify personnel costs.  This could take the form of a pay stub, payroll printout or comparable documentation that show hours worked, gross salary, overtime, insurance, and other benefits; and

2.     Overtime must be provided for in the approved project budget, or prior approval must be obtained from the SHPO before a significant amount of overtime is worked.

 D.      An agency must have employee policies and procedures in place.

SECTION X
TRAVEL 

A.      Travel costs are allowable as expenses by employees who are in travel status on official business, if included in the project budget, and travel takes place within the grant period.  Travel must be accomplished by the least expensive means possible.  When calculating costs, you should factor in the value of the traveler’s time if choosing between air or ground transportation.

B.      The state has adopted US General Services Administration (GSA) lodging and per diem rates when traveling in and out-of-state on grant-related business.  Maximum per diem reimbursement rates for lodging, meals, and incidental expenses are established by state/city/county and vary by season.  Rates can be found on GSA’s website http://gsa.gov.  Receipts are required for all lodging, airline, parking, and ground transportation expenses.  Meals will be reimbursed in accordance with the meals and incidental expense allowance.  Reimbursement for incidental expenses is allowable only for overnight stays.  Receipts are not required for meals and incidental expenses.  Rates will be subject to change October 1 of every year. 

C.      Overnight lodging within 50 miles of principal station will not be allowed unless the following applies:

1.     Inclement weather conditions make travel hazardous.

2.     A late official meeting is required.

3.     Individuals involved are serving as conference hosts responsible for arrangements.

4.     The duty assignments are related to grant activities.

A.               Rules applicable to in-state and out-of-state travel:

1.     Reimbursement of meals will be based upon the following travel status criteria:

a.      If travel status commences at, or before, 6:30 a.m., breakfast may be claimed.

b.     If travel status commence at, or before 11:30 a.m., and does not terminate before 1:30 p.m., lunch may be claimed.

c.     If travel terminates after 6:30 p.m., dinner may be claimed.

2. When registration fees provide for meals, reimbursement for those meals will not be allowed.  A copy of the agenda for each conference or workshop must be submitted with each claim for travel reimbursement.

3.  When meals are included in flight as part of the airfare, those meals will not be reimbursed.  Copies of tickets and agenda must be submitted with claim for reimbursement.

4.  Car rentals must be justified and pre-approved by SHPO.

5.  Insurance for car rental is NOT allowable.

6. If a private vehicle is used for the convenience of the agency, $0.485 cents per mile will be reimbursed. 

7.  If a private vehicle is used for the convenience of the employee, $0.2425 cents per mile will be reimbursed.

 8. Tips or gratuities are not reimbursable.

B.                When submitting a claim for reimbursement, complete information is needed to avoid delay in processing.  A state travel claim form is included in the Appendix.  Subgrantees may copy and use this form or any other form that provides the same information.  Please pay particular attention to:

1.     Purpose, dates and time of actual travel.

2.     Methods of all travel; and

SECTION XI
TRAINING 

A.      Training costs are allowable provided they are part of your approved award, funding is available, and the training is necessary for the success of the project.

B.      All costs incurred due to training are incorporated in this expenditure category and must follow state travel regulations and rates, unless local rates are more stringent.

SECTION XII
SUPPLIES AND OPERATING EXPENSE

A.               Documentation – all purchases must be necessary to the operation of the project.

Receipts or invoices are required for all purchases and/or payments.

B.                Procedure – for submitting invoices for reimbursement.

1.     Invoices with multiple charges should have the amount to be charged to the project circled or highlighted to show the amount to be paid.

2.     The financial manager should set up controls to ensure duplicate invoices are not submitted for payment.

3.     Reimbursement will not be made unless there is evidence goods or services have been received, i.e., copy of check, date and signature of receiver, etc.

4.     Purchase orders and statements are NOT acceptable documentation.  Quite often, purchase orders reflect an estimated cost.  The receipt is required for reimbursement to show the actual cost of the item.

SECTION XIII
EQUIPMENT/PROPERTY MANAGEMENT AND INVENTORY

A.               The State of Nevada Administrative Manual and Historic Preservation Fund Grants Manual prescribe rules and regulations governing purchase and disposition of property that will prevail unless local rules and regulations are more restrictive.

1.     Definition of Equipment:  Equipment is any item costing $5,000 or more, and having an anticipated useful life of more than one year.  SHPO has authority to regulate any property or inventory under $5,000 as deemed prudent or necessary.

2.     Property Records:  The subgrantee will maintain property records, inventory control, and maintenance procedures for all non-expendable property purchased all, or in part, with grant funds.  An inventory report form must be completed and submitted to SHPO with the final project report.  (Please use Property Record form included in Appendix.)

3.     Title of Property:  Title to all property purchased with grant funds will be considered the property of the subgrantee agency.  The subgrantee will maintain title on property as long as there is a need for the property to accomplish the purpose of that project, whether or not the project continues to be supported with federal funds.

 If the SHPO determines the equipment/property is being used for non-project related functions, title to the property will be vested to the State of Nevada who will seek to have the property used for historic preservation purposes elsewhere in the state.

B.      Upon completion of grant funding for a project, the subgrantee must submit a letter with a final inventory to the SHPO that addresses:

1.     Will the program continue after federal funding ends?

2.     Will the equipment continue to be used in a project-related capacity?

3.     Disposition of equipment or property usually takes one of three forms, which include the following:

a.  Using existing property in a sale or trade to obtain a newer model or to upgrade existing equipment.  When this situation occurs, the SHPO must be made aware of such transaction.  SHPO will determine if the new equipment is applicable to the project and amend the equipment record to reflect the changes.

 b.  When a subgrantee determines there is no further use for equipment, SHPO and that agency must assess if the fair market value is more than $1,000.  If it is jointly agreed, the value is less than $1,000, the proper paperwork is filed and the subgrantee agency becomes the sole owner of that property.  If the fair market value is determined to be $1,000 or more, SHPO has the right to transfer equipment to another project to be used in NPS-related functions.  SHPO assesses each case individually.

c.  If subgrantees request properties be transferred within the agency to a program unrelated to the NPS-funded project, an assessment must be made to determine if the equipment’s value is more than $1,000.  If it is, SHPO has the right to transfer the equipment to another project to be used in NPS-related functions.  Each case is assessed individually.

4.  Compensation will be computed by applying the percentage of federal participation in the cost of the original project to the current fair market value of the property.

 
SECTION XIV
CONTRACTUAL PROFESSIONAL SERVICES 

A.               Independent contractor services must follow state and federal regulations.  NRS 284.173(2) defines an independent contractor as “a natural person, firm or corporation who agrees to perform services for a fixed price according to his or its own methods and without subjection to the supervision or control of the other contracting party, except as to the results of the work, and not as to the means by which the services are accomplished.”

B.                The SHPO will accept flat rates for professional consulting services depending upon the consultant’s professional and academic experience.  The SHPO recognized rates range from $9.00 to $82.49 per hour and are determined according to the following schedule.  The subgrantee may pay less than these amounts and may not exceed rates described below.  Qualified SHPO staff will review the professional qualifications of the project personnel/consultant prior to the start of work.  Please refer to qualification guidelines in the Appendix.

          Professional Qualifications                                     Hourly Wage

          1.  Working for Bachelor’s degrees                        $9.00-$14.00

          2.  Bachelor’s degree in the related field                  $23.00

          3.  Bachelor’s degree in the related field

               with five years experience in the field                 $28.00

          4.  Bachelor’s degree in the related field

working for a Master’s degree                         $30.00

          5.  Advanced degree in the related field                   $82.49 maximum

          In addition, architects, engineers, and related professionals, and members of trades can be paid at recognized rates established by the industry or by demonstrated previous practices not to exceed $82.49 per hour as established by the National Park Service.

The SHPO does not require itemized time sheets for project consultants, but does require proof of payment, vitae, and a signed statement of the hourly rate charged to the project and hours billed to the project.  The consultant is required to prepare an invoice for professional services.  The consultant will not exceed the rate for professional services established in consultation with SHPO prior to beginning work.

Professional qualifications of staff, consultants, or principal investigators undertaking grant-related work must meet applicable minimum qualifications described in 36 CFR 61, Appendix A.  SHPO will review the professional qualifications of the project staff and consultants.  If project staff and/or consultants are acquired after the award, SHPO must review and approve professional qualifications prior to project commencement.

Transportation and subsistence costs for travel may not exceed the state travel rates and regulations as described in Section X, TRAVEL. 

Dual compensation is not allowed.

C.      Consultants employed by state and local governments will only be allowed when the unit of government will not provide their services without cost.  In these cases, the rate of compensation is not to exceed the daily salary rate paid by the unit of government.

D.      Contract Review

Appropriate state and local governments must ratify contracts. NRS 332.039 is the governing legislation for the State of Nevada and is included for your reference in the Appendix.

1.     Contracts for more than $2,000 per year must be bid at least every four years.

2.     Contracts for more than $100,000 must be bid at least every two years.

3.     If you believe a sole-source situation exists, that conviction must be demonstrated to the satisfaction of SHPO.  All sole-source contracts more than $2,500 must have prior SHPO approval and those for $100,000 or more must have prior federal agency approval.

A sample format for sole-source justification is included in Section XV, PROCUREMENT OF GOODS OR SERVICES, below.

 
SECTION XV
PROCUREMENT OF GOODS OR SERVICE 

The primary objective is to obtain materials, supplies, services and equipment at the most reasonable cost to the taxpayer, to supply the agency as quickly as possible, and to afford vendors competitive opportunity.  ALL PROCUREMENT TRANSACTIONS will be conducted in a manner to provide, to the maximum extent practical, open and free competition.  To ensure maximum open and free competition, bidders’ lists should be maintained and updated as required.  Advertising of competitive requirements in local newspapers and trade publications is important in order to achieve more effective competition.  Procurement of all goods and services shall be documented in accordance with NRS 332.039.  When there are federal dollars involved, local preference laws/ordinances have always required special attention by the awarding agency.   (Please refer to NRS, chapter 332, included in the Appendix.)

Established methods of procurement include:

A.               Interdepartmental Transfer of Funds – normally applies to state and local governments.  In certain instances a viable method to satisfy a requirement is funds transfer to another unit of the organization where the capability exists.  This can be accomplished under the following conditions:

1.     Another part of the organization has the in-house capability to satisfy the requirement, or

2.     The organization has in existence a contractor currently performing that could effectively satisfy the requirement.  This action, however, requires SHPO to consent to a sole-source justification.

B.                Small Purchases – are those relatively simple and informal procurement methods for securing services, supplies, or other property that does not cost more than $25,000 overall.  Simplified informal procedures to cut down procurement lead-time for day-to-day support items should be used and documented.  (Please use the Competitive Negotiation and Small Purchases Contracting Documentation form included in the Appendix.)

C.               Competitive Sealed Bidding – bids publicly solicited and a firm fixed-price contract is awarded to the responsible bidder whose bid, conforming to all the material terms and conditions of the invitation for bids, is the lowest in price.  This method is recognized as the preferred method of procurement and is properly used when the following conditions exist:

1.     The requirement can be described and is finite and specific in detail, with no unknowns or contingencies.

2.     There is good likelihood that competition is readily available among interested contractors that could satisfy the requirement.

3.     There is enough time available to issue the solicitation, conduct a public bid opening, and award the contract to the lowest responsive and responsible bidder.

D.               Negotiation – is the method of procurement when the prerequisite for competitive sealed bidding cannot be met.  The technique of competitive proposals is usually conducted with more than one source submitting an offer, and either a fixed price or cost reimbursement-type contract is awarded.  The procedures involve developing a performance “Statement of Work” (SOW) listing requisite requirements to accomplish the contract.  The performance Statement of Work should be written in a straightforward manner and, as a minimum, should contain the following:

1.     Background providing necessary introductory information or evolution of the requirement.

2.     Objective/scope of work detailing broad parameters that are requisite for contract performance or effectively satisfy the requirement.

3.     Tasks with accompanying deliverables should be indicated in a logical sequence, as the grantee perceives the requirement.

4.     A delivery schedule in increments as required satisfying the requirement.

5.     Acceptance and approval procedures should be indicated.

          Develop the Request for Proposal (RFP) containing at least the basic elements specified above, and before release, advertise the solicitation in accordance with state or local preferences.

E.                Sole-Source Contracting – recipients are mandated to complete contractual requirements.  There are, however, exceptions to this cardinal rule of competition.  These exceptions result in “sole-source” contracting.  Procurement by noncompetitive proposals is procurement through the solicitation from only one source, or after solicitation of a number of sources competition is determined inadequate.  Both the A-102 Common Rule, and OMB Circular A-110 are quite clear regarding the necessity to have open and free competition to satisfy contractual requirements.  Recipients may make the final determination that competition is not feasible if one of the following circumstances exists:

1.     The item of service is available only from a single source.

2.     The public exigency or emergency of the requirement will not permit a delay resulting from a competitive solicitation.

3.     After solicitation of a number of sources, competition is considered inadequate.

In any event, documentation reflecting actions taken and the position of the grantee is extremely important in order to establish an audit trail.  A justification of non-competitive (sole-source) procurement must include the following:

1.     A brief description of the program and the services contracted.

2.     Explanation of why it is necessary to contract noncompetitively, to include the following:  (a) expertise of the contractor, (b) management, (c) responsiveness, (d) knowledge of the program, (e) experience of contractor personnel, (f) results of a market survey to determine competition availability or, if one was not conducted, explain why.

3.     Time constraints:  (a) when contractual coverage is required and why, (b) impact on the program if dates are not met, (c) length of time it would take another contractor to reach the same level of competence.  (Equate to dollars, if desired).

4.     Uniqueness.

5.     Other points that should be covered to “sell the case.”

6.     A declaration that this action is in the “best interest” of the agency.

SECTION XVI
CONTRACT PROVISIONS

Subgrantees must maintain copies of written contracts on files for all cooperative, working agreements, and professional services.  All contracts for evaluation services and all other contracts more than $5,000 must be reviewed and approved by SHPO before being signed.  This policy may be adjusted in individual cases through SHPO’s funding agreement.

Federal regulations require that contracts made by the awarding agency contain the clauses as enumerated below.  Recipients may develop language suited to accommodate a specific contractual situation, providing such clauses meet the intent of the federal clauses.

A.   Disputes – this clause should provide a contractor recourse procedure in the event there is a contractual dispute.  The dispute submitted by the contractor shall be in writing to the contracting officer (person signing the contract for the grantee).  Procedures will provide at least one additional upper management level for review within the awarding agency.  The reply from the recipient will be in writing and include general counsel concurrence (optional).

B.    Reporting – any applicable reporting requirements affecting contractual activity to comply with a requirement of the award should be included as a special contract clause developed by the recipient.  Of particular importance are progress/status/performance reports (usually on a quarterly basis) required for contracts for research and development, studies, surveys, analyses, etc.  Progress reports also play an important role in equating progress to payments or cost reimbursement.

C.   Patents – any discovery or invention that arises during the contract will be reported to the awarding agency.  This clause should require the contractor to disclose inventions to the contracting officer within two months after the inventor discloses it in writing to contractor personnel responsible for patent matters.  The clause should also contain and identify provisions identifying the grantee against liability, including costs for infringement of any United States patent.

D.   Rights in Data and Copyrights – as a rule, contracts that require data to be produced, furnished, acquired or specifically used in meeting contract requirements, must contain terms that delineate respective rights of the awarding agency and the contractor regarding use, duplication, and disclosure of such data.

E.    Examination of Records – this clause shall state the recipient, the subrecipient, the federal awarding agency, the Comptroller General, or any of their representatives will have access to any books, documents, papers, and records of the contractor that are directly pertinent to the contract for the purpose of making audit, examination, excerpts, and transcriptions.  The clause will further state that the contractor shall retain all required records for three years after the recipient or subrecipients make final payments and all other pending matters are closed.

F.    Clean Air and Water – if the contract exceeds $100,000, the contractor must agree to comply with all requirements of Section 114 of the Clean Air Act and Section 308 of the Clear Water Act relating to inspection, monitoring, entry, reports, and information, as well as other requirements specified.  The contractor also must agree that no work will be done in a facility listed on the Environmental Protection Agency List of Violating Facilities.

G.   Equal Employment Opportunity – this clause applies to contracts over $10,000 and will contain provisions the contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin.  Affirmative Action clauses will be developed as required by rules and regulations of the Secretary of Labor.

H.   Termination – only the awarding agency has the right to terminate the contract.  There are two types of termination:

1.     End for convenience – contract is terminated due to reasons known to the grantee, i.e., program changes, insufficient funding, etc.  This type of termination is used when the contractor is not in violation of the contract.

2.     Termination for cause – a contract is terminated due to actions by the contractor, i.e., failure to perform, slipped schedules, etc.

The awarding agency has the option of tailoring the termination to fit the type of contract.  The awarding agency, by written notice, may terminate the contract, in whole or in part, when it is in the awarding agency interest.  Termination settlements will be accommodated by negotiations carefully planned to achieve an equitable resolution.

I.       Contracting with Small and Minority Firms, Women’s Business Enterprises, and Labor Surplus Area Firms – recipients and subrecipients will take all necessary affirmative steps to assure that the following firms are used, when possible:

1.     Small Business Firms – designated by the Small Business Administration.

2.     Minority Business Firms – 51% minority-owned/operated.

3.     Women’s Business Enterprises – small business that is at least 51% owned by a woman or women.

4.     Labor Surplus Area Firms – firms geographically located in distressed labor surplus areas designated by the Secretary of Labor.

J.      Protests – in accordance with sound administrative practice and sound business judgment, recipients and subrecipients alone will be responsible for settlement of all contractual and administrative issues arising out of procurement.

SECTION XVII
BUDGET REVISIONS

The subgrantee must secure prior written approval from the SHPO for any budget revision.  A “Project Change Request” form, as well as a written justification for the change must be submitted to SHPO.  (Please use Project Change form included in the Appendix.)  The subgrantee must receive a signed, approved copy of the “Project Change Request” from SHPO before implementing a requested change. 

A Project Change Request needs to be submitted under the following circumstances:

A.   Changing the amount of an approved category.  Funds may be moved from one approved category to another with proper justification.

B.    Requests for moving funds into a non-approved category.  This requires an essential need for the success of the project.  *NOTE funds may not be increased; they must be taken from approved categories.

 C.   When a project director is changed.  Please submit vitae for new project director along with project change request.

 D.   When requesting a project period extension.

Changes within the same category do not require submission of the Project Change Request form.  However, a justification explaining any significant changes from the approved budget should be submitted to SHPO.  Project Change Requests must be submitted with an original signature.  Faxed copies will not be accepted.

SECTION XVIII
REPORTING REQUIREMENTS 

Most grants require submission of “quarterly progress reports” on each individual project.  This is the responsibility of the project director.  The purpose of the quarterly reports is to evaluate the progress of planned activity.  Failure to meet this requirement will result in suspension of payment on submitted monthly financial reports.  After notification, if further noncompliance persists, it will be cause to terminate funding of the project.  The following should be observed in preparation and submission of quarterly progress reports:

A.   Due Date – reports are due 15 days after the close of each full 3-month period or deadline as agreed upon with SHPO.  The final report is due 45 days following the close of the grant period or any extension thereof.

B.    Submission – subgrantees shall submit quarterly progress reports and a cumulative final report, including an inventory list, if applicable.  (Please use Quarterly Progress Report form included in the Appendix or other forms as agreed upon with SHPO).

C.   Requirements – reporting requirements noted in this section are designed to provide sufficient information to monitor grant implementation and goal achievement.  To support effective monitoring, progress reports must be keyed to the grant implementation plan provided in the grant application.  Specifically, the report must include the following:

1.     Indicate the overall status of the project.  Have the goals and/or objectives been achieved during the report period?  Be specific and detailed.

 2.     Indicate in quantitative terms the results achieved, both during the reporting period and cumulative-to-date.  Explanatory and descriptive statements of activities will be helpful, especially if project objectives’ change.

 3.     State the status of goals and/or objectives that were due for completion during a previous report, but carried over due to late implementation or other problems.

 4.     If the project is not meeting its goals and objectives, state the corrective action planned to resolve the problems.  State the effect of these problems on the remaining schedule for achieving the project’s remaining goals and/or objectives.

5.     If appropriate, identify changes needed in accomplishing the project.  Changes that alter plans and/or goals of the original application require prior approval and issuance of appropriate amendments.

6.     State if technical or other assistance is needed during the coming quarter to help resolve implementation problems.  If technical assistance has been provided to resolve implementation problems, state the problems addressed and results of the assistance provided.

7.     The subgrantee must submit a draft final project report 30 days before the project end date for SHPO review and approval.  The product must comply with the Secretary of Interior’s Standards and Guidelines for Archaeology and Historic Preservation and any special conditions agreed to by the subgrantee and the SHPO at the time of the grant award.

8.     The subgrantee and/or contractor must notify SHPO immediately by telephone and/or letter of any project progression problems or changes to the approved scope of work.  Telephone calls may be accepted if confirmations are made in writing.

D.   Final Report – is due no later than 45 days after the close of the original or extended grant period.  Additional information to be provided after each year of the project operation is as follows:

1.     An overall evaluation of the project as to its performance and impact on the request for assistance.

2.     Cumulative statistics for the activities of the project period and detailed descriptions of the activities.

3.     Photographs showing completed work.  Photographs should include a descriptive caption, date taken and source/taken by.  They can be digital as long as they are clear and clearly printed.  In some cases, black and white photos may be required.  No Polaroid pictures, please.  Photographs can be submitted via CD or disk or sent via e-mail as long as they have the required identifying information.  Otherwise, send in hard copies.

4.     An updated equipment inventory, if applicable, for any equipment purchased through this project including the physical location of such equipment and what it is being used for.

5.     Other products as negotiated with SHPO that may include inventory reports and site/building forms, data entry, and photographs, videos or CDs, brochures, maps, etc.

SHPO may retain ten percent of the total federal portion until it receives and approves the final project product.

 
SECTION XIX
GRANT EXTENSIONS 

If the project cannot be completed within the period specified in the funding agreement, the subgrantee must submit to SHPO a written request (with a Project Change Request form) explaining the programmatic reason for extension of the grant period.  This must be submitted at least 60 days prior to the expiration date of the project.  The request should state the reason for the excess time and the effect denial of the request would have on the project.

If an extension request is not submitted prior to the project’s expiration date, the original project expiration date stands.  Any remaining federal funds will be forfeited.

SECTION XX
GRANT CLOSEOUT PROCEDURES

At the project’s expiration date, all remaining costs incurred up to the last day of the grant period must be accumulated and submitted for reimbursement on a final “Monthly Financial Report” form.  This final claim is due no later than 45 days after the grant period’s expiration date.

This claim, along with the annual evaluation report will serve to close out the grant.

SECTION XXI
PUBLICITY 

Appropriate credit must be given to SHPO and the Department of the Interior in all news releases, publicity, or printed material describing or promoting the grant.  The final product (report, brochure, publication, or any other funded item) must clearly state that it was “funded with assistance of the Department of Cultural Affairs, Nevada State Historic Preservation Office, through a Department of Interior grant.” 

An acknowledgement of National Park Service support must be made in connection with publication or dissemination of any printed, audio-visual, or electronic material based on, or developed under, a result of the grant award shall include the following statements:

The [insert activity] that is the subject of this [insert type of publication] has been financed in whole or in part with federal funds from the National Park Service, U.S. Department of Interior, and administered by the State Historic Preservation Office.  The content and opinions, however, do not necessarily reflect the views or policies of the United States Department of the Interior or the Department of Cultural Affairs, State Historic Preservation Office.  This program receives federal financial assistance for identification and protection of historic properties.  Under Title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, and Age Discrimination Act of 1975, as amended, the U.S. Department of Interior prohibits discrimination on the basis of race, color, national origin, disability or age in its federally assisted programs.  If you believe you have been discriminated against in any program, activity, or facility as described above, or if you desire further information, please write to:  Office of Equal Opportunity, National Park Service, 1849 C Street, N.W., Washington, D.C. 20240.

For development projects, a project sign must be displayed in a prominent location at each project site while the project work is in progress.  The sign must identify the project and support from Department of Cultural Affairs, State Historic Preservation Office, and the Department of the Interior, National Park Service.

SECTION XXII

SUSPENSION OF FUNDING

SHPO may terminate the project for the following reasons:

1.     Default by the subgrantee.

2.     Failure by the subgrantee and/or contractor to observe the covenants, conditions, and warranties of the grant funding agreement and its incorporated provisions.

3.     Failure by the subgrantee and/or contractor to demonstrate progress on the grant.

4.     Unsatisfactory financial conditions by the subgrantee and/or contractor, which endangers the grant’s performance.

5.     Delinquency by the subgrantee and/or contractor in payment of taxes or the costs of performance of the grant in the ordinary course of business.

6.     Appointment of a trustee, receiver, or liquidation for all or a substantial part of the subgrantee’s and/or contractor’s property, or institution of bankruptcy, reorganizations arrangements, or liquidation proceedings by or against the subgrantee and/or contractor.

7.     Commission of an act of bankruptcy.

SECTION XXIII
CONFLICT OF INTEREST

The subgrantee will establish safeguards to prevent employees, consultants, or members of governing bodies from using their positions for purposes that are, or give appearance of being, motivated by the desire for private gain for themselves or others with whom they have ties, such as, family or business, etc.

SECTION XXIV
DRUG FREE WORKPLACE

The certification regarding drug-free workplace requirements, a copy of which is found in the grant application, applies to all state agencies (not local agencies) that are recipients of federal funding under the Anti-Drug Abuse Act.

This certification is required by regulations implementing the Drug-Free Workplace Act of 1988, CFR Part 67, subpart F.  The regulations, published in the May 25, 1990, Federal Register, require certification by subgrantees, prior to award, they will maintain a drug-free workplace.  Subsection 67.630(c) of the regulations provide a subgrantee may elect to make one certification in each federal fiscal year.  False certification or violations of the certification will be grounds for suspension of payments, suspension or termination of grants, or government-wide suspension or debarment.  (See CFR Part 67, section 67.615 and 67.620.)

SECTION XXV
LOBBYING RESTRICTIONS

All federal grant recipients must certify that:

No federal appropriated funds have been paid or will be paid, by or on behalf of the subgrantee, to any person for influencing or attempting to influence an officer or employee of Congress, or an employee of a member of Congress in connection with awarding any federal contract, making any federal grant, making any federal loan, entering into any cooperative agreement, and extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement.

If any funds other than federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, or an officer or employee of Congress, or an employee of a member of Congress in connection with this federal contract, grant, or cooperative agreement, and the subgrantee receives federal funds exceeding $100,000 from all sources, the subgrantee will complete and submit standard disclosure form, “Disclosure of Lobbying Activities” in accordance with its instructions.  This form is available from SHPO.

SECTION XXVI
AUDIT REQUIREMENTS 

Pursuant to OMB Circular A-133, Revised, subgrantees have responsibility to provide for an audit of their activities funded by a grant.  (OMB Circular A-133, Revised, is included in the Appendix as reference material.)

A.               The subgrantee must provide:

1.     The identity of the organization conducting the audit.

2.     The anticipated date the completed audit report will be sent to SHPO.

B.                All audits must be in compliance with OMB Circular A-133, Revised, the subgrantee is a state or local government agency.

C.               Any state or local government agency that receives more than $500,000 in federal money from ALL sources in its fiscal year is required to submit a Single Audit report each year.  Information on the Single Audit can be found in OMB Circular A-133, Revised.

D.               Any state or local government agency that receives between $25,000 and $500,000 in federal money from ALL sources in its fiscal year, has the option of doing a Single Audit or a separate program audit each year; however, these costs cannot be charged to the grant.

E.                Any state or local government agency that receives less than $25,000 in federal money from ALL sources in its fiscal year is exempt from a Single Audit and other federal requirements.  State or local audit requirements will govern these agencies.

F.                In summary, to fulfill your audit obligation, you need to send SHPO all audit reports and the management letter provided by the CPA firm conducting the audit.

G.               The Federal Catalogue number or CFDA number identifying the NPS Grant within SHPO is 15.904.

As part of this process, please complete the “Statement of Subgrant Audit Arrangement” found within the funding agreement and return it to SHPO.  This is a requirement under your grant award.

Resolution of Audit Findings – in accordance with the Historic Preservation Fund Grants Manual, a written report will be prepared upon completion of the audit.  SHPO is responsible for submitting copies of these reports to the Federal Audit Clearinghouse, Bureau of Census, and Department of Interior, National Park Service.  SHPO is responsible for follow-up on audit recommendations.

Failure to have audits done may result in withholding new awards and/or withholding of funds or termination of active grants.