# Sample Policy Handbook for Grantees - **operation:** document - **citation:** PHMSA Guidance, Sample Policy Handbook for Grantees - **title:** Sample Policy Handbook for Grantees - **source type:** guidance - **agency:** Pipeline and Hazardous Materials Safety Administration - **status:** guidance - **official:** true - **published on:** 2019-08-29 - **effective on:** 2019-08-29 - **summary:** Sample Policy Handbook for Grantees Document sample-policy-handbook-grantees.docx (464.19 KB) The Sample Policy Handbook for Grantees was developed to assist grantees in adopting written policies required by Uniform Administrative Requirements, Cost Principles, and Audits Requirements for Federal Awards, 2 CFR 200. These are illustrative in nature, but reflect the basic requirements of 2 CFR 200, and may be modified - **machine formats:** - **json:** https://regulus.evalyn.ai/document/phmsa-guidance-sample-policy-handbook-grantees-b3eacc57.json - **markdown:** https://regulus.evalyn.ai/document/phmsa-guidance-sample-policy-handbook-grantees-b3eacc57.md - **app url:** https://regulus.evalyn.ai/document/phmsa-guidance-sample-policy-handbook-grantees-b3eacc57 - **source url:** https://www.phmsa.dot.gov/grants/hazmat/sample-policy-handbook-grantees **body:** Sample Policy Handbook for Grantees Document sample-policy-handbook-grantees.docx (464.19 KB) The Sample Policy Handbook for Grantees was developed to assist grantees in adopting written policies required by  Uniform Administrative Requirements,  Cost Principles, and Audits Requirements for Federal Awards, 2 CFR 200.  These are illustrative in nature, but reflect the basic requirements of 2 CFR 200, and may be modified to fit the needs of your agency to conform with the applicable statutes, regulations and ‘terms and conditions’ that govern your Federal Award. Issued Date: Thursday, August 29, 2019 Pipeline and Hazardous Materials Safety Administration’s (PHMSA) Hazardous Materials Grants Hazardous Materials Emergency Preparedness (HMEP) Assistance for Local Emergency Response Training (ALERT) Hazardous Materials Instructor Training (HMIT) Supplemental Public Sector Training (SPST) Community Safety (CS) Developed by Review of Grant Programs DTPH5614F00021 Project Manager: Charles Nichols This sample policy is provided for general guidance only. Furthermore, the sample policy is not all-inclusive and should be reviewed, edited and modified prior to implementation, taking into consideration the nature or your agency and existing policies and regulations that apply to your agency. Moreover, this document does not constitute legal advice or supersede any applicable federal statutes or regulations. Contents Introduction 8 Acknowledgements 8 TRAVEL POLICY 9 SECTION ONE: AIR TRAVEL 9 Booking. 9 Lowest Logical Airfare. 9 Reimbursement 9 Form of Payment. 9 SECTION TWO: GROUND TRAVEL 9 Car Rental Guidance 10 Personal Automobile – Non –local 10 Shuttles and Public Transportation. 10 Train. 10 Reimbursement 10 SECTION THREE: LODGING 10 Lodging Expense 10 Maximum Allowable Lodging Rate. 11 Cancellation. 11 Conference Lodging. 11 Extended Stay. 11 Reimbursement Amounts 11 SECTION FOUR: SUBSISTENCE 12 General. 12 Reimbursement Amounts 12 SECTION FIVE: PAYMENT OPTIONS 12 Agency Credit Card. 12 Cash Advances. 12 SECTION SIX: REIMBURSEMENT 12 General. 12 Reimbursement Claim. 12 Justification. 13 Audits. 13 Miscellaneous Expenses 13 LEAVE POLICY 14 Vacation Leave 14 Sick Leave 14 Family and Medical Leave 14 Administrative Leave 15 Jury or Witness Duty 15 Military Leave 15 Holidays 15 Religious Holidays 16 Bereavement Leave 16 Time Off To Vote 16 RELOCATION POLICY 17 Purpose 17 Scope 17 PROCUREMENT POLICY 19 CHAPTER 1 – INTRODUCTION 19 Compliance 19 Documentation 20 Policy Considerations 20 Contract Cost and Price 21 Contract Provisions 21 CHAPTER 2 - CODE OF ETHICS AND CONFLICT OF INTEREST POLICY 24 Written Standards of Conduct 24 Personal Conflict of Interest 24 Organizational Conflicts of Interest 24 Compliance with the Code of Ethics and Conflict of Interest Policy 26 Conflict of Interest Policy – Certification 27 CHAPTER 3 - PROCUREMENT PROCESS, PLANNING AND ORGANIZATION 27 Micro – Purchases 28 Steps Involved in Making Micro-Purchases: 28 Small Purchases – Simplified Acquisition Threshold 29 Steps Involved in Making Purchases Using Simplified Acquisition Procedures 29 Procurement by sealed bids (Invitation for Bid aka Request for Quotes) 30 Purchases that Require an Invitation For Bid Process – Sealed Bids 30 Steps Involved in Making Purchases that Require IFB Process 31 Procurement by competitive proposals (Request for Proposals) 35 Requirements of a RFP process 35 Steps Involved in Procuring Through Request for Proposals 36 Sole Source Procurements 39 Steps Involved in Sole Source Procurements 40 CHAPTER 4 - DISPUTE AND PROTEST PROCEDURES 41 CHAPTER 5 - CONTRACT CLOSEOUT PROCEDURES 42 Final Payment 42 Post-Performance Audit 43 Contract Closeout Checklist 43 Purchasing Code of Ethics 45 Code of Conduct for Procurement officials and the organization 46 Conflict of Interest Policy Grant-Making 46 Scope of Coverage 46 Types of Conflict of Interest 47 Individual Conflict of Interest 47 Procedures to Avoid Individual Conflicts of Interest 47 Organizational Conflict of Interest 47 Financial Management Policy and Procedures 51 Purpose 51 Financial Responsibilities 51 Conflict of Interest 51 Budgeting Process 51 Financial Statements 52 Cash Fund 52 Audit 52 Revenue and Income Procedures 53 Recording Receipts 53 Receipts to Donors 54 Expenditure Procedures 54 Signature Policy 54 Compensation and Payroll 54 Local Travel and Expense Reimbursements 54 Credit Card Expenditures 55 Leases and Other Contractual Agreements 55 Notes, Loans, etc.. 55 Deeds, Conveyances, etc… 55 Bank Accounts and Investment Accounts 56 Checking Account 56 Bank Reconciliations 56 Cash and Cash Equivalents 56 Petty Cash 56 Investment Reports and Investment Policy 57 Insurances 57 Bonding 57 Property and Equipment 57 Equipment Installation 58 Donated Materials and Services 58 Confidentiality and Records Security 58 Document Retention 58 Tax Reporting 58 Effective Systems of Internal Control for Financial Management 59 General 59 Validation 59 Accuracy 59 Completeness 59 Maintenance 59 Physical Security 60 ALLOWABLE COSTS 61 Acronyms 61 Introduction 61 Chapter I — General Guidelines for Allowability 62 General Criteria 62 Direct Costs, Allocated Costs, and Indirect Costs 63 Procurement and Sub-Contracting 64 Related Party Transactions 66 Revenue in Excess of Allowable Costs 67 Third-Party Revenue 67 Chapter II — Federal Cost Principles 67 Selected Items of Cost 67 Advertising and Promotional Expense 68 Audit Expense 68 Bad Debts Losses & Collection Expense 68 Space Costs 68 Compensation 69 Entertainment 69 Equipment, Non-Capital Equipment and Supplies 69 Fines and Penalties 69 Interest 69 Chapter III - Unallowable Costs 69 Chapter IV - Documentation of Costs 72 INTERNAL CONTROLS 74 Introduction 74 Purpose 74 Definitions 74 Elements of an internal control environment 74 The role of internal controls in the risk management process 75 The nature of internal controls 75 The characteristics of an internal control environment 75 Information systems and their processes and policies are kept up to date 75 Monitoring of Controls 76 RECORDKEEPING 77 Purpose 77 Establishing Grant Files 77 Document Retention and Destruction Policy 78 Purpose 78 Document Destruction 78 Managing Equipment Acquired with Federal Funding Policy 80 Policy 80 Purpose 80 Scope 80 Procedures for Implementation 80 Roles and Responsibilities 80 Identification: Tagging and Recording Equipment 81 Reporting Loss, Damage or Theft 81 Physical Inventory 81 Ownership of Equipment Purchased with Federal Funding 82 Sharing of Equipment Purchased with Federal Funding 82 Disposition 83 APPENDIX A - STANDARDIZED PROCUREMENT FORMS 84 Introduction This handbook was developed to assist grantees in adopting written policies required by Uniform Administrative Requirements, Cost Principles, and Audits Requirements for Federal Awards, 2 CFR 200. These are illustrative in nature, but reflect the basic requirements of 2 CFR 200, and may be modified to fit the needs of your agency to conform with the applicable statutes, regulations and ‘terms and conditions’ that govern your Federal Award. In addition, this handbook has included sample policies related to grant filing and recordkeeping which are not mandated in 2 CFR 200 but are considered grants management best practices. This handbook is intended to provide a grants management framework for the administration of PHMSA Hazmat grant awards (HMEP, HMIT, SPST, CS, ALERT). Acknowledgements PHMSA acknowledges the following entities whose online publications contributed to the development of the handbook: The Commonwealth of Pennsylvania – Travel Policy The Summit Law Group – Leave Policy Workforce.com – Relocation Policy State of New Mexico, Department of Transportation – Procurement Policy State of Minnesota, Department of Administration – Conflict of Interest Policy Montana Non Profit Association – Financial Management Policy State of Wisconsin, Department of Children and Families – Allowable Cost City of Mitcham, Internal Control Policy New York University – Equipment Policy TRAVEL POLICY SECTION ONE: AIR TRAVEL Booking. Employees will not make travel arrangement until they obtain travel authorizations approved by their supervisor. Employees and other authorized individuals are expected to book the lowest priced coach class airfare. It is not permissible to confirm a higher fare for upgrade eligibility or personal reasons. Upgrades will be at the employees’ expense. Employees who are combining personal travel with official business may only do so when the personal portion does not add any cost to the airfare. Travel arrangements must be made to accommodate the business needs of the trip and not personal preference. Lowest Logical Airfare. Employees or other authorized individuals on official business must book the lowest priced coach airfare that meets their approved itinerary and this travel policy. They are expected to use their best judgment to save on airfare cost. Lower cost flights must be chosen within two hours before or after the preferred flight time when the alternative flight saves $200.00 or more roundtrip. Connecting flights must be chosen over nonstop flights when the connection does not add more than two hours to travel time and the connection saves $200.00 or more. Agency travelers are not required to take a lower fare if a change of airline at the connection point is required. Domestic flights over $800.00 roundtrip will be reviewed by the agency travel liaison prior to the ticket issuance. Lower cost fares, as outlined above, that are declined must be justified and employees must obtain approval from the agency travel liaison before proceeding with the booking. The agency will pay for the airfare and/or penalty incurred for a change in plans or cancellation when the change or cancellation is required by the agency or other unavoidable situations approved by the agency’s travel liaison. A lost airline ticket is the responsibility of the person to whom the ticket was issued. Reimbursement. Requires actual receipt (See Reimbursement policy Section 6) Form of Payment. Employees should use their agency provided credit card for making travel arrangements. If an employee does not have an agency credit card they may use their personal credit card. If an employee does not have a personal credit card they should contact the agency travel liaison for guidance. SECTION TWO: GROUND TRAVEL Policy – Employees are required to use the transportation option that provides the best value to the agency. Car rentals will only be approved when an employee provides sufficient justification on why the use of taxis or car services such as Uber, Lyft are not the most economical option once you arrive at your travel destination. For travel to your destination a car rental will only be approved for travel between 50 and 250 miles from your primary worksite or residence whichever is closer to the destination location and represents the best value to the agency. An employee who does not choose the least expensive option, or uses a rental car without authorization may not be reimbursed or fully reimbursed. Car Rental Guidance Obtain prior approval from Supervisor before booking a car rental Employees and other authorized individuals must be 21 years or older and have a valid driver’s license to use a rental car and at least 25 years old to rent a van. Approved rental car sizes are economy, compact, or intermediate (midsize), including hybrids. Other vehicle types require business need justification. Upgrades to other vehicle types and equipment such as GPS are permitted so long as there is no additional cost to the agency. Vehicle rental rates do not include fuel and travelers must decline optional fuel offerings. You must refuel the rental vehicle prior to returning it to the rental car supplier with an equal amount of fuel as when it was picked up. Employees should select collision damage waiver insurance and liability insurance options. The rental receipt and car rental contract must be included with reimbursement submission of receipts. Personal Automobile – Non –local An employee is only authorized to use their personally-owned vehicle for out of town travel when: 1) it is the least expensive option for non-local travel at least 50 miles from their work location and residence but not more than 250 miles. Employees are to secure supervisory authorization for use of a personally-owned vehicle in advance of such use. When an employee is authorized to use a personally-owned vehicle, the employee will be reimbursed at the U.S. General Services Administration (GSA) in effect on the date(s) of travel. Shuttles and Public Transportation. When traveling by air or train, employees should use shuttle services or public transportation when such options are available and less expensive than other means of ground transportation. Train. Coach class is the only approved service when traveling by train. Reimbursement. Rental cars, taxis and trains require actual receipts. Use of personal automobile requires documentation of mileage that seeks reimbursement of the most direct route between the departure and arrival points. Miscellaneous expenses of nominal value where receipts are not possible require a written explanation. (See Reimbursement Policy Section Six) SECTION THREE: LODGING Lodging Expense. Employees should expect services and accommodations that are safe and comfortable, not lavish or extravagant. The travel destination must be located more than 50 miles from both their headquarters and residence. Upgraded accommodations that are an additional charge are not allowed; however, a complimentary upgrade is allowed. Maximum Allowable Lodging Rate. Our agency requires employees to book lodging that adheres to the GSA rates for the destination the booking occurs excluding taxes. Employees will only be reimbursed for actual expenses incurred, within the maximum allowable rate. In instances where an employee is not able to secure lodging within the maximum GSA lodging rate, an employee may obtain a waiver from the agency travel liaison. An employee that books a more expensive option without prior approval may be required to pay the difference. Cancellation. Employees should only book lodging at places that allow cancellation without a fee. Should an employee have no option but to stay at a place with a nonrefundable policy she/he needs to inform the agency travel liaison for guidance and approval. If an employee is permitted to stay at a non-refundable lodging option they are responsible for canceling lodging arrangements according to the property’s cancellation policy. No-show charges and penalties will only be reimbursed if the cancellation was required for agency business decisions. Conference Lodging. Conferences are not always confirmed at the lowest rate or a government rate. The employee is required to attempt to find lower cost lodging when the conference rate is higher than the maximum allowed lodging rate. The alternative to a conference hotel should be within close proximity and local ground transportation should be factored in when choosing a location. An employee may request a waiver from the agency travel liaison. When it is required by the conference for an attendee to stay at a particular property and/or confirm the accommodations through the organization, the employee must include documentation of this requirement (such as the registration instruction sheet) with the receipt submission when requesting reimbursement. Extended Stay. When an employee is required to work away from their residence or primary worksite for 60 days or more they may enter into an extended stay lodging agreement. Requests must be approved in advance. Failure to obtain approval prior to entering into a lodging agreement will result in the employee being liable for any costs. Reimbursement Amounts Out of town Lodging is reimbursed at the GSA lodging rates. See rates at www.gsa.gov/perdiem. Lodging receipts are required for reimbursement. Extended Stay Lodging reimbursement will be limited to lodging, necessary utilities (cable and phone are excluded), and mileage or transportation costs for a biweekly roundtrip between the worksite and the employee’s permanent residence or headquarters. Subsistence expenses are not allowed. Mileage is not paid between lodging and temporary worksite. Receipts are required for reimbursement. SECTION FOUR: SUBSISTENCE General. Our agency follows the GSA Per Diem policy for subsistence for travel that is more than 50 miles from both your primary worksite and residence. You can find the applicable subsistence rate at www.gsa.gov/perdiem. If your destination is not listed find the rate for the closest city within the state. Reimbursement Amounts. Our agency reimburses employees the applicable per diem rate. Receipts are not required. On the first and last travel day, employees are only eligible for 75 percent of the subsistence amount permitted by GSA. Employees are required to deduct from their reimbursement request the meal portion of the GSA subsistence amount provided by hotels, meetings, conferences or any other source. Meals classified as continental breakfast do not need to be deducted. When a meal is provided in the cost of the hotel room and the commonwealth traveler opts to eat elsewhere, reimbursement for that meal will be made within the prescribed maximum daily meal reimbursement rate. SECTION FIVE: PAYMENT OPTIONS Agency Credit Card. Employees should use their agency provided credit card for making travel arrangements. If an employee does not have an agency credit card they may use their personal credit card. If an employee does not have a personal credit card they should contact the agency travel liaison for guidance. Cash Advances. An employee is expected to cover expenses through the agency provided credit card and/or their personal credit card. In extenuating circumstances an employee can receive a cash advance with sufficient justification and approval of their supervisor. SECTION SIX: REIMBURSEMENT General. Employees are expected to exercise good stewardship of funds when traveling on official agency business. Employees on official agency business will receive reimbursement of actual expenses for lodging and expenses not covered in the subsistence per diem allowance incurred in the performance of their duties within prescribed maximums. Complete justification and supporting documentation for travel expenses must be included with the submission of the reimbursement request. Reimbursement Claim. Employee responsibilities: Employees are responsible for ensuring that expenses are proper, accurate, and incurred in official agency business. An employee who knowingly presents a false or fraudulent claim may be subject to disciplinary measures including termination of employment and possible criminal prosecution. Reimbursement request must be made within 30 days of travel in order to be processed for payment. Supervisor responsibilities: Supervisors must review and approve reimbursement requests submitted by their subordinates to ensure the necessity, propriety, and accuracy of the travel expense. Justification. Supporting documentation for lodging and other expenses not covered by the GSA Subsistence per diem is the actual recipient. A receipt should include the following information on the receipt: Name and address of the vendor, Date of service, Description of service and the amount paid for each individual item. Credit card slips and statements are not acceptable in lieu of receipts. For expenses where no receipt is provided such as a vending machine, parking meter, or unmanned toll booth expense, when a receipt is not provided. A complete explanation is required and the daily reimbursement rate is capped at $15. Audits. Travel expenses are subject to audit. When the audit uncovers unintentional mistakes where the error resulted in an overpayment of expenses the employee will responsible for repaying the agency. Instances where the agency determines an employee intentionally committed fraud in a reimbursement request will result in immediate dismissal. Miscellaneous Expenses Baggage: Baggage handling and gratuities are limited to reimbursement of $1.50 per piece. Fees for baggage check with airlines will be reimbursed at the actual expense and are limited to the first checked bag. Any additional baggage is conditional on a traveler’s job function and less expensive alternative avenues of transportation (such as sending the supplies ahead via shipping). A receipt and explanation is required. Other optional airline fees are not reimbursable, including advance seat reservation fees, Wi-Fi , snacks, and any other fees imposed by the airline that are not essential to air travel. LEAVE POLICY Employees of ____________are entitled to a wide range of leave. Our official leave policies are: Vacation Leave Full-time regular employees will accrue paid vacation time on a bi-weekly basis to coincide with pay periods. The rate of vacation accrual depends on your time with (insert name of entity) as follows: First four years: 4 hours per pay period Years 5 – 14: 6 hours per pay period Year 15 – forward: 8 hours per pay period Regular part-time employees are eligible to accrue paid vacation on a pro rata basis based on their percentage of full-time employment. Temporary employees are not eligible for any vacation benefits. Employees do not accrue vacation benefits during a period of leave without pay. Employees may accrue no more than [240] hours of vacation leave. Once an employee reaches the [240]-hour cap, the excess hours will be deleted and no further hours will be permitted to accrue until the employee has used some of the accrued vacation hours. In cases where EMPLOYER operations have made it impractical for an employee to use vacation time, EMPLOYER [or Department Head, etc.] may make a limited exception to the cap on accrual. Accrued vacation leave will be paid out upon separation from employment. Sick Leave Regular full-time employees accrue paid sick leave at the rate of four hours per pay period of continuous employment. Regular part-time employees accrue paid sick leave on a pro rata basis. Temporary employees are not eligible for paid sick leave benefits. Employees do not accrue sick leave benefits during a period of leave without pay. Accrued sick leave will not be paid out upon separation from employment. Family and Medical Leave (Insert entity name) family and medical leave program enables employees to take time off, under certain conditions, for health reasons or to care for family members. This policy will be administered in accordance with the federal Family and Medical Leave Act (FMLA) and applicable statutes. A notice entitled “Employee Rights and Responsibilities Under the Family and Medical Leave Act” is posted [specify whether posting is on EMPLOYER bulletin boards or electronically] and is provided to employees [specify whether notice is provided to all new employees upon hire or included in personnel manual]. Nothing in this policy affects or supersedes any federal or state law or collective bargaining agreement that may provide greater entitlements to medical or family leave than those set forth in this policy. Eligibility. To be eligible for leave under this family and medical leave policy, an employee must have been employed by EMPLOYER for at least 12 months, must have worked at least 1,250 hours in the preceding 12 months, and must work at a location where at least 50 employees are employed by EMPLOYER within 75 miles. Leave Entitlement. An eligible employee may request up to 12 workweeks of FMLA leave per “leave year”. Administrative Leave On a case-by-case basis, EMPLOYER may place an employee on administrative leave with or without pay for an indefinite period of time. Administrative leave may be used when it is in EMPLOYER’S best interests, such as during the pendency of an investigation. Jury or Witness Duty Employees who are required by law to render jury service will be granted time off with pay during the period of jury duty. Employees should notify their supervisor as soon as possible after receipt of a juror summons so that operational adjustments can be made as needed during the employee’s absence. A copy of the juror summons must be provided upon request. Military Leave Every employee who is a member of the National Guard or of the U.S. Army, Navy, Air Force, Coast Guard or Marine Corps, or of any organized reserve of the United States, will be granted military leave in accordance with state and federal law. Employees who take military leave will have whatever rights to reinstatement, seniority, vacation, layoffs, and compensation as are provided by applicable law. Holidays (Insert name of entity) provides paid time off for [10] holidays per year for regular full-time employees and pro-rata paid time off for part-time employees that work 20 hours or more per pay period. The covered holidays are: New Year’s Day, Martin Luther King, Jr, President’s Day , Memorial Day, Fourth of July, Labor Day, Veterans Day, Thanksgiving Day, Christmas Day, floating day to as a personal holiday. The dates of the above-listed holidays will be as designated by the agency. Any holiday falling on a Saturday will be recognized on the preceding Friday. Any holiday falling on a Sunday will be recognized on the following Monday. Religious Holidays If an employee’s religious beliefs require observance of a holiday not included in the basic holiday schedule, the employee may, with [his/her Department Head]’s approval, take the day off using vacation or leave without pay. Employees should seek approval for such absences well in advance to ensure work coverage. Bereavement Leave All regular full-time employees and part-time employees [regularly scheduled to work more than 20 hours a week] will be granted up to three days off with pay in the event of a death in the employee’s immediate family. For purposes of this policy, immediate family includes the employee’s spouse, domestic partner, parents, children, siblings, stepparents, stepchildren, grandparents, grandchildren, parents-in-law, sons-in-law, or daughters-in-law. When requesting bereavement leave, employees should inform their immediate supervisor as to who died and the date of death. Proof of death and/or relationship may be required. Time Off To Vote If an employee’s work schedule on the day of an election does not provide the employee two free hours during the time the polls are open, (insert entity name) will permit the employee to take a reasonable amount of time (up to two hours) to leave work for voting purposes. RELOCATION POLICY (Insert Entity Name) may pay certain relocation expenses of current employees required to relocate or new hires deemed eligible Eligible Employee Groups: Career Permanent Salaried Employees Purpose To establish a policy for the reimbursement of defined expenses incurred when a career permanent salaried employee is permanently transferred from one location to another at the Company's request or new hires. For new hires the availability of relocation expenses will be included in the job announcement. Scope This policy applies to employees or new hires who are required to relocate at the (insert entities name) request. A relocated employee or new hire must remain with the company for at least 12 months after the relocation or they will be required to repay the relocation benefits received. Individuals must reside at least fifty (50) miles farther from their residence than their former job location. The Human Resource Department must review and approve all relocation requests made by supervising managers, as well as, the individual relocation expenses in advance of being incurred. Reimbursement for relocation will be limited to expenses enumerated below and are capped at $20,000: Trips to Locate Living Accommodations Reimbursement will be made for reasonable and actual expenses incurred by you and your spouse for travel to the new location to locate living accommodations. This reimbursement includes meals, lodging, and transportation for up to two trips not to exceed ten days combined. Movement of Household Goods The cost of normal household moving service from the former permanent residents to the new residence to include: packing and unpacking services, content insurance, personal vehicle (1), applicable storage fees. Moving to New Residence Reasonable and actual expenses incurred for the cost of meals, lodging and travel (limit of (2) cars at the then current IRS limit per mile) or coach air transportation Reimbursement for Loss of Security Deposit If you are a renter, you will be reimbursed for penalties associated with early lease termination of a rented apartment or house, not to exceed one (1) month's rent, after attempts by you and the Company have failed to have the penalty waived. Income Tax Adjustment Many of the items reimbursed or paid to you under this policy are considered taxable income. The total sum of these items subject to taxation will be determined and that amount will be "grossed-up" at a flat rate of 34%. This adjustment applies toward applicable state and federal payroll taxes. Other Items Before any reimbursement is made under this policy, you will be required to sign a Promissory Note requiring you to reimburse the Company for any relocation expenses paid if you should voluntarily leave the employment of the Company or be released from employment for cause, including poor performance, within twelve (12) months of relocating. PROCUREMENT POLICY CHAPTER 1 – INTRODUCTION This manual is intended to serve as a guide for successful procurement practices in securing bids and proposals to make: ♦ Micro-Purchases, ♦ Small Purchases, ♦ Large Purchases, ♦ Sole Source Purchases Compliance This Contracts and Procurement Policy and Procedures Guidance document establishes minimum standards that [AGENCY] will use to process third party contracts. This manual is intended to help [AGENCY] comply with the Pipeline and Hazardous Materials Safety Administration's (PHMSA) standards to ensure competitive bidding through full and open competition and equitable treatment of all potential sources for all purchases made with funding derived from the federal, state, and local governments. Competitive proposals and sealed bid transactions will be conducted in a manner to provide maximum open and free competition consistent with 2 CFR 200.317 – 319, "Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. States follow their own procurement regulations and rules but may find this sample guidance useful as States usually adopt procedures that are similar to those contained this document. The policies and procedures contained herein establish standard business practices to ensure the timely, efficient, and economical delivery of services and materials. The goal of procurement practices is to provide an atmosphere in which all procurement transactions will be conducted in a manner providing full and open competition. [AGENCY] will avoid the following situations considered to be restrictive of competition: (1) Unreasonable requirements placed on firms in order for them to qualify to do business; (2) Unnecessary experience and excessive bonding requirements; (3) Noncompetitive pricing practices between firms or between affiliated companies; (4) Noncompetitive awards to any person or firm on retainer contracts; (5) Organizational conflicts of interest, which means that because of other activities, relationships, or contracts, a contractor is unable, or potentially unable, to render impartial assistance or advice to the grantee; a contractor's objectivity in performing the contract work is or might be otherwise impaired; or a contractor has an unfair competitive advantage; (6) The specification of only a "brand name" product without listing its salient characteristics and not allowing "an equal" product to be offered; and (7) Any arbitrary action in the procurement process. [AGENCY] shall conduct procurements in a manner that does NOT give in-State or local geographical preferences in the evaluation of bids or proposals, except in those cases where applicable Federal statutes expressly mandate or encourage geographic preference. This does not pre-empt State licensing laws. Geographic location may be a selection criterion in procurements for architectural and engineering (A&E) services if an appropriate number of qualified firms, given the nature and size of the project, are able to compete for the contract. Documentation In order to meet standards established by the PHMSA and to be prepared for grant management reviews it is critical to accurately document procurement procedures. This manual outlines the steps to take and provides the standardized forms to complete for each type of procurement. Appendix A contains the standardized forms to be used to document practices. Policy Considerations Contracting with Small Disadvantaged Firms Non-federal entities are required to take affirmative steps to assure that contracting with small and minority businesses, women’s business enterprises, and labor surplus area firms are used when possible. Affirmative steps must include: (1) Placing qualified small and minority businesses and women's business enterprises on solicitation lists; (2) Assuring that small and minority businesses, and women's business enterprises are solicited whenever they are potential sources; (3) Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses, and women's business enterprises; (4) Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority businesses, and women's business enterprises; (5) Using the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and (6) Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in paragraphs (1) through (5) of this section. Procurement of recovered materials A non-Federal entity that is a state agency or agency of a political subdivision of a state and its contractors must comply with section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines. Contract Cost and Price The [AGENCY] must perform a cost or price analysis in connection with every procurement action in excess of the Simplified Acquisition Threshold including contract modifications. The method and degree of analysis is dependent on the facts surrounding the particular procurement situation, but as a starting point, the non-Federal entity must make independent estimates before receiving bids or proposals. The [AGENCY] must negotiate profit as a separate element of the price for each contract in which there is no price competition and in all cases where cost analysis is performed. To establish a fair and reasonable profit, consideration must be given to the complexity of the work to be performed, the risk borne by the contractor, the contractor's investment, the amount of subcontracting, the quality of its record of past performance, and industry profit rates in the surrounding geographical area for similar work. Costs or prices based on estimated costs for contracts under the Federal award are allowable only to the extent that costs incurred or cost estimates included in negotiated prices would be allowable for the non-Federal entity under Subpart E—Cost Principles of this part. The non-Federal entity may reference its own cost principles that comply with the Federal cost principles. The cost plus a percentage of cost and percentage of construction cost methods of contracting must not be used. Contract Provisions In addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the [AGENCY] under the Federal award must contain provisions covering the following, as applicable. (A) Contracts for more than the simplified acquisition threshold currently set at $150,000, which is the inflation adjusted amount determined by the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) as authorized by 41 U.S.C. 1908, must address administrative, contractual, or legal remedies in instances where contractors violate or breach contract terms, and provide for such sanctions and penalties as appropriate. (B) All contracts in excess of $10,000 must address termination for cause and for convenience by the [AGENCY] including the manner by which it will be effected and the basis for settlement. (C) Equal Employment Opportunity. Except as otherwise provided under 41 CFR Part 60, all contracts that meet the definition of “federally assisted construction contract” in 41 CFR Part 60-1.3 must include the equal opportunity clause provided under 41 CFR 60-1.4(b), in accordance with Executive Order 11246, “Equal Employment Opportunity” (30 FR 12319, 12935, 3 CFR Part, 1964-1965 Comp., p. 339), as amended by Executive Order 11375, “Amending Executive Order 11246 Relating to Equal Employment Opportunity,” and implementing regulations at 41 CFR part 60, “Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor.” (D) Davis-Bacon Act, as amended (40 U.S.C. 3141-3148). When required by Federal program legislation, all prime construction contracts in excess of $2,000 awarded by [AGENCY] must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 CFR Part 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The [AGENCY] must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The [AGENCY] must report all suspected or reported violations to the Federal awarding agency. The contracts must also include a provision for compliance with the Copeland “Anti-Kickback” Act (40 U.S.C. 3145), 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 - **truncated:** true - **body characters:** 217086