Ethical Standards, Codes and Record Keeping

Procurement Ethical Standards

The Treasurer's Instructions 1101 (goods and services) and 1201 (building and construction/roads and bridges)
includes the ethical standards that must be met in relation to procurement.
The procurement ethical standards are:

all business must be conducted in the best interests of the State, avoiding any situation which may impinge,
or might be deemed to impinge, on impartiality;

public money must be spent efficiently and effectively and in accordance with Government policies;

agencies must purchase without favour or prejudice and maximise value in all transactions;

agencies must maintain confidentiality in all dealings; and

Government buyers involved in procurement must decline gifts, gratuities, or any other benefits which may
influence, or might be deemed to influence, equity or impartiality.

Non-acceptance of gifts
Each agency will have its own internal policies in relation to gifts. Agency officers should be aware of those policies
before commencing procurement activity.

Procurement Code of Conduct

The Treasurer's Instructions 1101 (goods and services) and 1201 (building and construction/roads and bridges) sets
out a Code of Conduct for government buyers.
The Code of Conduct states that all Government buyers must:

ensure that all potential suppliers are provided with identical information upon which to base tenders and
quotations and are given equal opportunity to meet the requirements;

establish and maintain procedures to ensure that fair and equal consideration is given to all tenders and
quotations received;

offer a prompt and courteous response to all reasonable requests for advice and information from potential
or existing suppliers;

promote fair and open competition and seek value for money for the Government;

be equitable in the treatment of all suppliers;

seek to minimise the cost to suppliers of participation in the procurement process;

protect confidential information;

deal honestly with suppliers;

keep accurate records to justify the process and any decisions made;

complete a conflict of interest declaration and take steps to avoid involvement in any procurement activity
where any conflict of interest (actual or perceived) may arise; and

abstain from soliciting or accepting remuneration or other benefits from a supplier for the discharge of official
duties.

Agencies must ensure that the procurement process meets public sector probity requirements, that value for money
is obtained and that the separation of roles and responsibilities between the contractor and agency staff is maintained
for the duration of any contract.
Agencies are required to develop and maintain a process for the recording of conflict of interest declarations. Records
kept must include details of the action taken to manage the conflict of interest and be auditable. Information to assist
agencies in establishing a suitable process is contained in the publication Recording Conflict of Interest Declarations
- Guidelines for Agencies.

Procurement documentation - record keeping

Detailed records should be kept throughout the purchasing process for every procurement. For a low value/low risk
purchase this may simply mean maintaining records of all suppliers approached and their responses including
documented advice from suppliers who have declined to submit a quote.
For complex purchases records should include information on:

the reason for the procurement;

the procurement method chosen;

tenders/quotations called and received;

evaluation criteria and weightings;

decision-making processes;

decisions made and the reasoning behind the decisions; and

any necessary authorisations.

Where free trade agreements impact on a procurement, those FTA agreements require the procurement
documentation to be retained for a minimum of three years.

Probity
The Probity Guidelines are applicable to both goods and services, and building and construction procurement. The
Guidelines provide guidance to agencies on probity issues arising from procurement and contracting processes,
including an outline of the five essential principles to promote probity.

Additional requirements in relation to suppliers

Agencies must require suppliers, with whom they do business, to act ethically and in accordance with relevant
industrial relations and occupational health and safety legislation.

Additional requirements in relation to construction projects

Australian Standard Code of Tendering AS 4120-1994

The Australian Standard Code of Tendering (AS 4120-1994) is a statement of ethics that underpins best practice
tendering procedures. A copy of the code is available from SAI Global at www.sai-global.com.
For building and construction/roads and bridges procurement valued at $10 000 or more, agencies must

require suppliers to comply with the Code; and

ensure that representatives (consultants etc.) and agency officers act in accordance with clause 6 of the
Code

National Code for the Construction Industry and the Tasmanian Annexure to the Code
The Treasurer's Instruction 1201 requires that for all building and construction or roads and bridges procurement
valued at $10 000 or more, agencies must ensure that all suppliers comply with the National Code of Practice for the
Construction Industry, 1997 edition, and the Tasmanian Annexure to the National Code of Practice for the
Construction Industry.
The National Code of Practice expresses the principles which Commonwealth, state and territory governments agree
should underpin the future development of the construction industry in Australia. The Tasmanian Annexure details
Tasmanian specific requirements including compliance and sanction mechanisms.
Compliance with the Code is enforced through conditions of tender and extends to all subcontractors, consultants
and suppliers engaged by the successful tenderer. The Crown Solicitor's Request for Tender Building and
Construction pro forma contains relevant wording requiring tenderer compliance with the Code and Annexure. The
pro forma is available on this website at Resources > Request for Tender, Request for Quotation and Contract for
Services Documentation.
The National Code of Practice for the Construction Industry is available on the Australasian Procurement and
Construction Council (APCC) website.
The Tasmanian Annexure to the National Code of Practice for the Construction Industry is available on this website
at Resource > Publications.

Procedure for Managing Code Matters

The Tasmanian Government is committed to the implementation of the National Code of Practice and the Tasmanian
Annexure. Breaches of the Code, as may be evidenced through non-compliance, lack of commitment or unethical
activity; may result in sanctions being invoked. Where the breach also involves any law or statute, the matter is to be
referred to the relevant enforcement agency.
Monitoring of the application of the Code for Government projects is to be undertaken as part of the relevant agency's
core business function. In addition, to facilitate industry accessibility, each agency must:

establish internal coordination procedures for managing Code matters; and

establish a central point of contact and provide details to the Department of Treasury and Finance for
placement on the Winning Government Business website.

Processing Code Breaches by Contractors, Subcontractors, Consultants and Suppliers

The action taken to rectify alleged or substantiated Code breaches will depend on the severity of the breach. For
minor breaches, agencies should aim to resolve the issue through dispute resolution procedures. Repeated or
alleged Code breaches of a serious nature should be reported in writing to the agency's central point of contact for
inquiry and must be managed in accordance with the agency's normal procurement complaints handling process.
Information on the alleged breach should include:

contact details of the party reporting the alleged breach;

name of persons/organisations involved with the alleged breach;

details regarding the circumstances of the alleged breach, including the extent and dates on which the
breach happened;

details of previous complaints raised on the matter and/or any actions that were taken to remedy the
situation; and

a copy of any documentation that supports the claim.

The party alleged to be in breach of the Code is to be notified of the allegations and given the opportunity to submit a
response.
After receiving all the information relating to the allegation, the agency must assess:

whether a breach has been proven to have occurred;

the impact of any breach; and

what sanctions (if any) should be imposed, including the degree and duration. Refer to the Annexure for an
example of sanctions that could be invoked.

The review should also consider any action that could be undertaken by the breached party to restore their standing
with the Government, for example, demonstrating that inappropriate practices have been discontinued and adequate
procedures have been established to prevent similar breaches reoccurring.
The review must be undertaken in a fair and timely manner, and must be able to stand up to public scrutiny. Following
the review, the agency must either:

report the review findings to its portfolio Minister recommending that a breach has been proven or not
proven and seek approval to apply any sanctions by the agency; or

where an agency determines that a breach is proven and is severe enough for sanctions to be applied on a
Government-wide basis, the agency must refer the matter on to the Secretary of Treasury for review. The referral
must be fully documented and include:
o

details regarding the circumstances of the alleged breach;

a copy of the information provided by the party reporting the alleged breach and the response from the party
alleged to be in breach, including any correspondence from the agency to those parties;

details of the agency's review findings; and

a proposal as to the appropriate sanctions.

Treasury will assess the proposal and seek approval from the Treasurer if it is considered that a Governmentwide sanction should be applied.

Throughout the process it is the agency's role to:

advise affected parties on the progress of the review and the outcome including:
o

if and when the matter has been escalated to Treasury for review;

any actions that could be undertaken by the breached party to restore their standing with the Government
and the date the agency would be prepared to review the matter; and

notifying parties subject to sanctions about their right to appeal,

implement approved sanctions 21 days from the date of notification to affected parties advising of the review

outcome (unless an appeal has been lodged);

advise Treasury of the review outcome for prequalification purposes;

where a breach has been proven, refer the breach to the relevant industry association for appropriate action
under that association's rules and/or code of practice compliance procedures;

where a breach is proven to involve any law or statute, refer the matter to the relevant enforcement agency;

monitor applied sanctions and their effect; and

track and record the issues and outcomes on the agency's Complaints Datasheet.

Appeals

Any party that is subject to sanctions resulting from an investigation has a right under the Code to appeal against the
sanctions. A request for appeal must be lodged in writing to the Secretary of Treasury within 21 days from the date of
notification advising the affected party of the review outcome. The affected party will be requested to provide copies
of all correspondence with the agency concerned and other relevant material.
The affected party and agency will be advised of the final decision. Where an appeal is rejected, any sanctions will be
applied immediately. If the affected party is not satisfied with the outcome, the matter can be referred to the Minister
responsible for the agency concerned.
Where an appeal is received to review a recommendation to apply a Government-wide sanction, Treasury will take
the necessary action to ensure the appeal review is independent from the investigatory review, including, in certain
circumstances, employing a Probity Advisor.

Processing Non-Compliance by Government Agencies and Employees

Heads of Agency are responsible for ensuring the performance of their agency is consistent with the Government's
requirements and should strive to resolve any issues of non-compliance.
The private sector should be encouraged to report any alleged non-compliance by an agency to the Head of Agency
in the first instance. Information on the alleged breach should include:

contact details of the party reporting the alleged breach;

name of employees involved with the alleged breach;

details regarding the circumstances of the alleged breach, including the extent and dates on which the
breach happened;

details of previous complaints raised on the matter and/or any actions that were taken to remedy the
situation; and

a copy of any documentation that supports the claim.

If an agency is unable to internally resolve the reported breach, or the reporting party is not satisfied with the
outcome, the matter should be referred to the Minister responsible for that agency.
In the case of non-compliance by a Government agency, the Minister responsible for that agency will consider
appropriate changes to that agency's policies, practices and/or procedures.
Where it is demonstrated that an agency employee has deliberately or wilfully breached the Code by acting in
contravention of the agency's policies, practices and/or procedures, disciplinary action may be taken where
appropriate.

Purchasing Principles
Value for money
Open and effective competition
Purchasing ethics and code of conduct
Enhancing opportunities for local business
The purchasing principles are embodied in Treasurer's Instructions 1101 and 1201. Instruction 1101 applies to goods
and services and Instruction 1201 applies to building and construction, including roads and bridges.

Principle

Definition

Value for money:

Achieving the desired
agencies must pursue outcome at the best possible
value for money
price.
purchasing outcomes in
accordance with the
guidance information
contained in the
publication, How to
Assess Value for Money.

In practice this means...

weighing up the benefits of the

purchase against the cost of the purchase.
Value for money factors need to be
specifically included in the specification
and evaluation criteria and may include:
o

the contribution to the achievement of

government policy objectives
including those aimed at supporting
local and regional business such as
industry development and
employment creation;

fitness for purpose;

maintenance and running costs over

the lifetime of the product (where
appropriate);

the advantages of buying

from/engaging local and regional
suppliers, eg:

shorter delivery times;

local backup and servicing;

the availability of spare parts;

the potential for creating strategic

partnerships and cooperative

product development;

Open and effective

competition

Ensuring that the purchasing

process is impartial, open and
encourages competitive offers.

Compliance with ethical

standards and
observing the
Procurement Code of
Conduct

quality assurance;

risks;

the capacity of the supplier (eg

managerial and technical abilities);

climate change and environmental

considerations (including energy
conservation); and

disposal value.

using transparent, open, purchasing

processes so that potential contractors
and the public can have confidence in the
outcomes;
adequately testing the market,
whether by open tender or by seeking
quotations, whichever process is
applicable;
avoiding biased specifications; and
treating all potential suppliers
consistently, fairly and equitably.

Ensuring that all purchasing is This includes undertaken in a fair and

government buyers being fully

unbiased way and requiring
accountable for the purchasing practices
suppliers to act ethically and in
used and the decisions made;
accordance with appropriate

ensuring that decisions are not

legislation.
influenced by self interest or personal gain
(government buyers must not accept gifts
or any other benefits from suppliers);

identifying, dealing with and

documenting issues relating to actual or
perceived conflicts of interest;

maintaining confidentiality; and

ensuring that all purchasing is

undertaken in accordance with
government policies.

Agencies must require suppliers to act ethically

and in accordance with relevant legislation
such as industrial relations legislation and
occupational health and safety legislation.
For building and construction procurement
(including roads and bridges), agencies must
require suppliers to comply with
the National Code of Practice for the
Construction Industry, 1997 Edition,
the Tasmanian Annexure to the National
Code of Practice for the Construction
Industry and with the Australian Standard

Code of Tendering AS 4120-1994 for all

procurement valued at $10 000 or more;
and

ensure that representatives

(consultants etc) and agency officers act
in accordance with Australian Standard
Code of TenderingAS 4120-1994, for all
procurement valued at $10 000 or more.

In addition to the above, where the Australian

Government provides funding to projects that
meet its contribution value thresholds,
agencies may be required by the funding
arrangement/agreement to conform with the:

Building Code 2013 - Supporting

Guidelines for Commonwealth Funded
Entities; and/or

Australian Government OHS

Accreditation Scheme.

For more information, see the Ethical

Standards, Codes and Record Keeping.
Enhancing
opportunities for local
business

Ensuring that local businesses Buyers should:

that wish to do business with
ensure that they plan procurements
the Government are given the
taking into consideration the impact on
opportunity to do so and that
local suppliers;
the Government's Buy Local

actively seek bids from local

Policy requirements are met.
businesses, particularly from those that
have previously requested the opportunity
to quote (where local capability exists, one
quote/bid should be sought from a
Tasmanian business); and

ensure that agency requirements do

not unnecessarily preclude local
businesses from bidding or disadvantage
local suppliers.

Procurement Policies and Procedures

1.
Purpose of procurement standards. The purpose of these standards is to
establish procedures for the Corporation for the procurement of supplies and other
expendable property, equipment, real property and other services.

2.
Code of conduct. No employee, officer, or agent shall participate in the
selection, award, or administration of a contract if a real or apparent conflict of

interest would be involved. Such a conflict would arise when the employee, officer,
or agent, any member of his or her immediate family, his or her partner, or an
organization which employs or is about to employ any of the parties indicated
herein, has a financial or other interest in the firm selected for an award. The
officers, employees, and agents of the Corporation shall neither solicit nor accept
gratuities, favors, or anything of monetary value from contractors, or parties to
subagreements except for where the financial interest is not substantial or the gift is
an unsolicited item of nominal value. Members of the Corporation's board of
directors shall comply with all relevant fiduciary duties, including those governing
conflicts of interest, when they vote upon matters related to procurement contracts
in which they have a direct or indirect financial or personal interest. Officers,
employees, directors, and agents of the Corporation shall be subject to disciplinary
actions for violations of these standards.

3.
Competition. All procurement transactions shall be conducted in a manner
to provide, to the maximum extent practical, open and free competition. The
Corporation shall be alert to organizational conflicts of interest as well as
noncompetitive practices among contractors that may restrict or eliminate
competition or otherwise restrain trade. In order to ensure objective contractor
performance and eliminate unfair competitive advantage, contractors that develop
or draft specifications, requirements, statements of work, invitations for bids and/or
requests for proposals shall be excluded from competing for such procurements.
Awards shall be made to the bidder or offeror whose bid or offer is responsive to the
solicitation and is most advantageous to the Corporation, price, quality and other
factors considered. Solicitations shall clearly set forth all requirements that the
bidder or offeror shall fulfill in order for the bid or offer to be evaluated by the
Corporation. Any and all bids or offers may be rejected when it is in the
Corporation's interest to do so. In all procurement the Corporation shall avoid
practices that are restrictive of competition. These include but are not limited to:

(a)

Placing unreasonable requirements on firms in order for them to qualify

to do business,

(b)

Requiring unnecessary experience and excessive bonding,

(c)

Noncompetitive pricing practices between firms or between affiliated

companies,

4.

(d)

Noncompetitive awards to consultants that are on retainer contracts,

(e)

Organizational conflicts of interest,

(f)

Specifying only a brand name product instead of allowing an equal

product to be offered and describing the performance of other relevant
requirements of the procurement, and

(g)

Any arbitrary action in the procurement process.

Methods of Procurement to be Followed.

(a)
Procurement by small purchase procedures. Small purchase procedures
are those relatively simple and informal procurement methods for securing
services, supplies, or other property that do not cost more than the
"Simplified Acquisition Threshold" fixed at 41 U.S.C. 403(11) (currently set at
$100,000) and where procurement by sealed bid is not required. If small
purchase procedures are used, price or rate quotations shall be obtained
from an adequate number of qualified sources to insure that the selection
process is competitive in accordance with these policies.

(b)
Procurement by sealed bids (formal advertising). Bids are publicly
solicited and a firm-fixed-price contract (lump sum or unit price) is awarded
to the responsible bidder whose bid, conforming with all the material terms
and conditions of the invitation for bids, is the lowest in price.

(i)
The sealed bid method is the preferred method for procuring
construction if the following conditions are present:

(A)

A complete, adequate, and realistic specification or

purchase description is available;

(ii)

(B)

Two or more responsible bidders are willing and able to

compete effectively and for the business; and

(C)

The procurement lends itself to a firm fixed price contract

and the selection of the successful bidder can be made
principally on the basis of price.

If sealed bids are used, the following requirements apply:

(A)

The invitation for bids will be publicly advertised and bids

shall be solicited from an adequate number of known
suppliers, providing them sufficient time prior to the date
set for opening the bids;

(B)

The invitation for bids, which will include any

specifications and pertinent attachments, shall define the
items or services in order for the bidder to properly
respond;

(C)

All bids will be publicly opened at the time and place

prescribed in the invitation for bids;

(D)

A firm fixed-price contract award will be made in writing to

the lowest responsive and responsible bidder. Where
specified in bidding documents, factors such as discounts,
transportation cost, and life cycle costs shall be
considered in determining which bid is lowest. Payment
discounts will only be used to determine the low bid when
prior experience indicates that such discounts are usually
taken advantage of; and

(E)

Any or all bids may be rejected if there is a sound

documented reason.

(c)
Procurement by competitive proposals. The technique of competitive
proposals is normally conducted with more than one source submitting an
offer, and either a fixed-price or cost-reimbursement type contract is
awarded. It is generally used when conditions are not appropriate for the use
of sealed bids or small purchase procedures. If this method is used, the
following requirements apply:

(i)

Requests for proposals will be publicized and identify all

evaluation factors and their relative importance. Any response to
publicized requests for proposals shall be honored to the
maximum extent practical;

(ii)

Proposals will be solicited from an adequate number of qualified

sources;

(iii)

The Corporation shall evaluate responses to its solicitations and

select awardees in accordance the procedures outlined in
section 5 below ("Procurement Procedures")

(iv)

Awards will be made to the responsible firm whose proposal is

most advantageous to the Corporation with price and other
factors considered; and

(v)

The Corporation may use the competitive proposal procedures

for qualifications-based procurement of architectural/engineering
(A/E) professional services whereby competitors' qualifications
are evaluated and the most qualified competitor is selected,
subject to negotiation of fair and reasonable compensation. A
procurement process where price is not to be used as a stated
selection factor can only be used in procurement of A/E
professional services. It cannot be used to purchase other types
of although A/E firms are a potential source to perform the
proposed effort.

(d)
Procurement by noncompetitive proposals is procurement through
solicitation of a proposal from only one source, or after solicitation of a
number of sources, competition is determined inadequate.

(i)
Procurement by noncompetitive proposals may be used only
when the award of a contract is infeasible under small purchase
procedures, sealed bids or competitive proposals and one of the
following circumstances applies:

5.

(A)

The item is available only from a single source;

(B)

The public exigency or emergency for the requirement will

not permit a delay resulting from competitive solicitation;

(C)

The funding source specifically authorizes the use of

noncompetitive proposals; or

(D)

After solicitation of a number of sources, competition is

determined inadequate.

(ii)

Cost analysis, i.e., verifying the proposed cost data, the

projections of the data, and the evaluation of the specific
elements of costs and profits, is required.

(iii)

When using a noncompetive process the Corporation normally

would be expected to submit the proposed procurement to the
relevant funding source for pre-award.

Procurement procedures.

(a)
All procurement by the Corporation shall comply, at a minimum, with
the the requirements of subsections (i), (ii), and (iii) below:

(i)

the Corporation avoid purchasing unnecessary items.

(ii)

Where appropriate, an analysis is made of lease and purchase

alternatives to determine which would be the most economical
and practical procurement.

(iii)

Solicitations for goods and services provide for all of the

following.

(A)

A clear and accurate description of the technical

requirements for the material, product or service to be
procured. In competitive procurements, such a description
shall not contain features which unduly restrict
competition.

(B)

Requirements which must be fulfill and all other factors to

be used in evaluating proposal submitted in response to
solicitations .

(C)

A description, whenever practicable, of technical

requirements in terms of functions to be performed or
performance required, including the range of acceptable
characteristics or minimum acceptable standards.

(D)

When relevant, the specific features of "brand name or

equal" descriptions that are to be included in responses
submitted to solicitation.

(E)

The acceptance, to the extent practicable and

economically feasible, of products and services
dimensioned in the metric system of measurement.

(F)

Preference, to the extent practicable and economically

feasible, for products and services that conserve natural
resources and protect the environment and are energy
efficient.

(b)
Positive efforts shall be made by the Corporation to utilize small
businesses, minority-owned firms, and women's business enterprises,
whenever possible. The Corporation shall take all of the following steps to
further this goal.

(i)

Ensure that small businesses, minority-owned firms, and

women's business enterprises are used to the fullest extent
practicable.

(ii)

Make information on forthcoming opportunities available and

arrange time frames for purchases and contracts to encourage
and facilitate participation by small businesses, minority-owned
firms, and women's business enterprises.

(iii)

Consider in the contract process whether firms competing for

larger contracts intend to subcontract with small businesses,
minority-owned firms, and women's business enterprises.

(iv)

Encourage, when practical, contracting with consortiums of

small businesses, minority-owned firms and women's business
enterprises when a contract is too large for one of these firms to
handle individually.

(v)

Use the services and assistance, as appropriate and practical, of

such organizations as the Small Business Administration and the

Department of Commerce's Minority Business Development

Agency in the solicitation and utilization of small businesses,
minority-owned firms and women's business enterprises.

(c)
The type of procuring instruments used (e.g., fixed price contracts,
cost reimbursable contracts, purchase orders, and incentive contracts) shall
be determined by the Corporation but shall be appropriate for the particular
procurement and for promoting the best interest of the program or project
involved. The "cost-plus-a-percentage-of- cost" or "percentage of construction
cost" methods of contracting shall not be used.

(d)
Contracts shall be made only with responsible contractors who possess
the potential ability to perform successfully under the terms and conditions of
the proposed procurement. Consideration shall be given to such matters as
contractor integrity, record of past performance, financial and technical
resources or accessibility to other necessary resources.

(e)
Debarment and Suspension - No contract shall be made to parties
listed on the General Services Administration's List of Parties Excluded from
Federal Procurement or Nonprocurement Programs in accordance with E.O.s
12549 and 12689, "Debarment and Suspension." Contractors with awards
that exceed the small purchase threshold shall provide the required
certification regarding its exclusion status and that of its principal employees.

6
Cost and price analysis. Some form of cost or price analysis shall be made
and documented in the procurement files in connection with every procurement
action above $500 in value. Price analysis may be accomplished in various ways,
including the comparison of price quotations submitted, market prices and similar
indicia, together with discounts. Cost analysis is the review and evaluation of each
element of cost to determine reasonableness, allocability and allowability.

6.
Procurement records - Procurement records and files for purchases in
excess of the small purchase threshold as fixed at 41 U.S.C. 403(11) (currently
$25,000) shall include the following at a minimum: (a) basis for contractor selection,
(b) justification for lack of competition when competitive bids or offers are not
obtained, and (c) basis for award cost or price.

7.
Contract administration. A system for contract administration shall be
maintained to ensure contractor conformance with the terms, conditions and
specifications of the contract and to ensure adequate and timely follow up of all
purchases. The Corporation shall evaluate contractor performance and document,
as appropriate, whether contractors have met the terms, conditions and
specifications of the contract.

8.
Contract provisions. The Corporation shall include, in addition to
provisions to define a sound and complete agreement, the following provisions in all
contracts. The following provisions shall also be applied to subcontracts.

(a)
Contracts in excess of the Simplified Acquisition Threshold shall contain
contractual provisions or conditions that allow for administrative, contractual,
or legal remedies in instances in which a contractor violates or breaches the
contract terms, and provide for such remedial actions as may be appropriate.

(b)
All contracts in excess of the Simplified Acquisition Threshold shall
contain suitable provisions for termination by the Corporation, including the
manner by which termination shall be effected and the basis for settlement.
In addition, such contracts shall describe conditions under which the contract
may be terminated for default as well as conditions where the contract may
be terminated because of circumstances beyond the control of the contractor.

(c)
For contracts dealing with construction or facility improvements the
Corporation shall comply with all requirements imposed by its funding
sources (and the government regulations applicable to those funding sources)
with regard to construction bid guarantees, performance bonds, and payment
bonds.

(d)
All negotiated contracts (except those for less than the Simplified
Acquisition Threshold) awarded by the Corporation shall include a provision to
the effect that the Corporation shall have access to any books, documents,
papers and records of the contractor which are directly pertinent to a specific
program for the purpose of making audits, examinations, excerpts and
transcriptions.

(e)
All contracts, including small purchases, awarded by the Corporation
and their contractors where the source of the funds, directly or indirectly, is
the federal government, shall contain the following procurement provisions as
applicable.

(i).
Equal Employment Opportunity - All contracts, when funded in
whole or part by monies derived from the Federal government (either
directly or indirectly), shall contain a provision requiring compliance
with E.O. 11246, "Equal Employment Opportunity," as amended by E.O.
11375, "Amending Executive Order 11246 Relating to Equal
Employment Opportunity," and as supplemented by regulations at 41
CFR part 60, "Office of Federal Contract Compliance Programs, Equal
Employment Opportunity, Department of Labor."

(ii).
Copeland "Anti-Kickback" Act (18 U.S.C. 874 and 40 U.S.C. 276c)
- All contracts in excess of $2000 for construction or repair, when
funded in whole or part by monies derived from the Federal
government (either directly or indirectly) shall include a provision for
compliance with the Copeland "Anti-Kickback" Act (18 U.S.C. 874), as
supplemented by Department of Labor regulations (29 CFR part 3,
"Contractors and Subcontractors on Public Building or Public Work
Financed in Whole or in Part by Loans or Grants from the United
States"). The Act provides that each contractor or subrecipient shall be
prohibited from inducing, by any means, any person employed in the
construction, completion, or repair of public work, to give up any part
of the compensation to which he is otherwise entitled. The recipient
shall report all suspected or reported violations to the Federal awarding
agency.

(iii). Davis-Bacon Act, as amended (40 U.S.C. 276a to a-7) - When

required by Federal program legislation, all construction contracts
awarded by the recipients and subrecipients of more than $2000 shall
include a provision for compliance with the Davis-Bacon Act (40 U.S.C.
276a to a-7) and as supplemented by Department of Labor regulations
(29 CFR part 5, "Labor Standards Provisions Applicable to Contracts
Governing Federally Financed and Assisted Construction"). Under this
Act, contractors shall be required to pay wages to laborers and
mechanics at a rate not less than the minimum wages specified in a

wage determination made by the Secretary of Labor. In addition,

contractors shall be required to pay wages not less than once a week.
The recipient shall place a copy of the current prevailing wage
determination issued by the Department of Labor in each solicitation
and the award of a contract shall be conditioned upon the acceptance
of the wage determination. The recipient shall report all suspected or
reported violations to the Federal awarding agency.

(iv). Contract Work Hours and Safety Standards Act (40 U.S.C. 327333) - All contracts in excess of $2000 for construction contracts and in
excess of $2500 for other contracts that involve the employment of
mechanics or laborers, when funded in whole or part by monies derived
from the Federal government (either directly or indirectly), shall include
a provision for compliance with Sections 102 and 107 of the Contract
Work Hours and Safety Standards Act (40 U.S.C. 327-333), as
supplemented by Department of Labor regulations (29 CFR part 5).

(v).
Rights to Inventions Made Under a Contract or Agreement Contracts or agreements for the performance of experimental,
developmental, or research work, when funded in whole or part by
monies derived from the Federal government (either directly or
indirectly), shall provide for the rights of the Federal Government and
the recipient in any resulting invention in accordance with 37 CFR part
401, "Rights to Inventions Made by Nonprofit Organizations and Small
Business Firms Under Government Grants, Contracts and Cooperative
Agreements," and any implementing regulations issued by the
awarding agency.

(vi). Clean Air Act (42 U.S.C. 7401 et seq.) and the Federal Water
Pollution Control Act (33 U.S.C. 1251 et seq.), as amended - Contracts
and subgrants of amounts in excess of $100,000, when funded in
whole or part by monies derived from the Federal government
(either directly or indirectly), shall contain a provision that requires the
recipient to agree to comply with all applicable standards, orders or
regulations issued pursuant to the Clean Air Act (42 U.S.C. 7401 et
seq.) and the Federal Water Pollution Control Act as amended (33
U.S.C. 1251 et seq.). Violations shall be reported to the Federal
awarding agency and the Regional Office of the Environmental
Protection Agency (EPA).

(vii). Byrd Anti-Lobbying Amendment (31 U.S.C. 1352) - Contacts for

an amount above $100,000, when funded in whole or part by
monies derived from the Federal government (either directly or
indirectly), shall include a certification by the contracting parties that
they have not and will not use Federal appropriated funds to pay any
person or organization for influencing or attempting to influence an
officer or employee of any agency, a member of Congress, officer or
employee of Congress, or an employee of a member of Congress in
connection with obtaining any Federal contract, grant or any other
award covered by 31 U.S.C. 1352. and to further require disclosure of
any lobbying with non-Federal funds that takes place in connection
with obtaining any Federal award.