(b) Competitive bids. (1) That the approval of the Secretary shall be obtained before the project is advertised or placed on the market for bidding and that such approval shall include a determination by the Secretary that the final plans and specifications conform to the minimum standards of construction and equipment as set forth in appendix A of these regulations.

(2) That, except as otherwise provided by State or local law, all contracting for construction (including the purchase and installation of builtin equipment) shall, except as provided in paragraph (b)(3) of this section, be on a lump sum fixed-price basis, and contracts will be awarded on the basis of competitive bidding obtained by public advertising with award of the contract to the lowest responsive and responsible bidder. The provision for exceptions based on State or local law shall not be invoked to give local contractors or suppliers a percentage preference over non-local contractors bidding for the same contract. Such practices are precluded by this paragraph.

(3) A substitute bidding procedure of selective solicitation with response from three or more bidders may be used if:

(i) The applicant requests and justifies the use of the procedure;

(ii) The procedure is consistent with State and local laws; and

(iii) The Secretary determines that it is necessary to limit bidding to contractors of proven competence due to the complexity or specialty of the project or that the time element is of primary consideration. When this bidding procedure is used, the applicant shall establish reasonable bid prequalification standards for contractors. The applicant shall then accept and consider bids from any contractor who requests permission to bid and who is determined by the applicant to meet these prequalification standards. Adequate time (normally 30 days) shall be allowed for contractors to prepare bids, and award of construction contracts shall be made to the lowest qualified and responsible bidder whose bid is considered fully responsive to the bid invitation;

(c) Approval of estimated cost. That applicant will enter into no construction

contract or contracts with respect to the project or any portion thereof where the costs exceed estimates in the application for such work, without prior approval of the Secretary.

(d) Relocation assistance. That in the case of a public applicant with an approved project which involves the displacement of persons or businesses, on and after January 2, 1971, whose real property has or will be taken, the applicant will comply with the provisions of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (Pub. L. 91-646) and the applicable regulations issued thereunder; (45 CFR part 15, as added by 36 FR 18838 (Sept. 22, 1971));

(e) Cost in excess of approved costs. That applicant will finance all costs in excess of the estimated costs approved in the application and submit to the Secretary for prior approval any changes that substantially alter the scope of its education program, or of the work, functions, utilities, or safety of the facility:

(f) Completion responsibility. That applicant will construct the project, or cause it to be constructed, to final completion in accordance with the grant application and the plans and specifications;

(g) Records and accounts. That applicant will maintain adequate and separate accounting and fiscal records and accounts for all funds provided from any source to pay the cost of the project, and permit audit of such records and accounts at any reasonable time. All records will be retained for 3 years after the close of the fiscal year in which the construction is completed. Such records may be destroyed at the end of such 3-year period if the applicant has been notified of the completion of the Federal audit by such time. If the applicant has not been so notified by the end of such 3-year period, such records will be retained (1) for 5 years after the close of the fiscal year in which the construction is completed or (2) until the grantee is notified of the completion of the Federal audit, whichever is earlier. In all cases where audit questions have arisen before the expiration of such 5-year period, records shall be retained until resolution of such questions;

(h) Progress reports. That applicant shall furnish progress reports and such other information as the Secretary may require;

(1) Construction supervision. That applicant shall provide and maintain competent and adequate architectural or engineering supervision and inspection at the construction site to insure that the completed work conforms with the plans and specifications;

(j) Non-Federal share. That sufficient funds will be available to meet the non-Federal share of the cost of constructing the facility;

(k) Funds for operation. That sufficient funds will be available after construction is completed for effective use of the facility for the purposes for which it is being constructed;

(1) Authorized uses. That the facility is intended to be used for the purposes for which the application has been made;

(m) Prohibition against religious use. That no portion of the facility constructed with funds under part B of title VII of the Act will be used for sectarian instruction or as a place for religious worship for so long as such facility has substantial value;

such requirements provided for in thi paragraph, if the application contam or is supported by reasonable ass ances satisfactory to the Secretary that the number of first-year studer enrolled at such school during the fix full school year after the completion such project and for each of the ner school years thereafter shall be less than the number of first-year st dents that such school would be quired to enroll for a grant under se tion 770(f) of the Act (without regard paragraph (2) thereof) for a grant und section 770(a) of the Act;

(0) New school construction. That the case of a project for the constru tion of a new school,

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(1) The first-year enrollment at su school during the third full school ye after completion of construction for each of the seven school ye thereafter shall be that number whof is set forth in the application as projected total first-year enrollment the school and which is determine the Secretary to be adequate in tion to the amount of the grant, taki into consideration the most effect use of the total amount of Feder funds available, the amount of fun to requested by the applicant, the natio and the quality of training to be pre vided in the facility, and other releva factors; and

(n) Expansion of training capacity. That in the case of any application (including an application with respect to continuing education or advanced training) to expand the training capacity of an existing school, the first-year enrollment at such school during the first full year after the completion of the construction and for each of the 9 school years thereafter will exceed the highest first-year enrollment at such school for any of the 5 full years preceding the year in which the application is made by at least 5 percent of such highest first-year enrollment, or by five students, whichever is greater. This increase shall be in addition to any increase assured pursuant to section 770(f)(1)(A) of the Act: Provided, however, That if such school is not required to meet in the fiscal year in which the application is made the enrollment increase prescribed under section 770(f)(1)(A) of the Act because of limitations of physical facilities available to the school for training, the Secretary may, after consulation with the Council, waive all or any portion of

(2) The first-year enrollment at suc school during the first full school y after completion of construction be at least one-third of the number termined pursuant to paragraph (0) of this section;

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(p) Wage rate standards. That any borer or mechanic employed by a contractor or subcontractor in the p formance of work on the constructio of the facility shall be paid wages & rates not less than those prevailing similar construction in the locality i determined under the Davis-Bacon A (40 U.S.C. 276 et seq.) and shall receive compensation at a rate not less than 1/2 times his basic rate of pay for hours worked in any workweek in es cess of 8 hours in any calendar day f 40 hours in the workweek (40 U.S.C 327-332);

(q) Clearinghouse review. That the ap plicant has, at the earliest feasible time, notified the planning and devel

ment clearinghouse of the State and ́e region, if there is one, or of the etropolitan area in which the project to be located, of its intent to apply • a grant under this subpart, and of e nature of the project for which astance has been sought, including a mmary description of such project; y comments received by the appliat from the clearinghouse pursuant such notification shall be considered the applicant and shall be included or attached to the application; r) Accessibility by handicapped. That › applicant shall require the facility be designed to comply with the merican Standard Specifications for king Buildings and Facilities Accesle to, and Usable by, the Physically ndicapped," Number A117.1-1961, as odified by other standards prescribed the Secretary or the Administrator General Services. The applicant all be responsible for conducting inections to insure compliance with ese specifications by the contractor; d

(s) Minimum standards of construction d equipment. That the plans and speccations for the project will conform the minimum standards of construcon and equipment as set forth in apndix A of this subpart.

ne Secretary may at any time apOve exceptions to the foregoing rms and conditions where he finds at such exceptions are not inconsistat with part B of title VII of the Act ad purposes of the program.

$7.108 Construction contract requirements.

The following conditions and provions must be included in all construcon contracts:

(a) The provisions set forth in DHHS Requirements for Federally Assted Construction Contracts Regardg Labor Standards and Equal Emoyment Opportunities", Form DHHS 4 (April, 1969) (issued by the Office of rants Administration Policy, U.S. Deartment of Health and Human Serves) pertaining to the Davis-Bacon ct, the Contract Work Hours Standrds Act, and the Copeland Act (Antiickback) Regulations, except in the ase of contracts in the amount of 2,000 or less; and pertaining to Execu

tive Order 11246, 30 FR 12319 (September 24, 1965), as amended, relating to nondiscrimination in construction contract employment, except in the case of contracts in the amount of $10,000 or less;

(b) The contractor shall furnish performance and payment bonds, each of which shall be in the full amount of the contract price, and shall maintain, during the life of the contract, adequate fire, workmen's compensation, public liability, and property damage insurance: Provided however, That in the case of a State or local unit of government which enters into a construction contract of less than $100,000, State or local provisions with respect to performance and payment bonds shall be deemed to meet the requirements of this paragraph; and

(c) The Secretary shall have access at all reasonable times to work wherever it is in preparation or progress, and the contractor shall provide proper facilities for such access and inspection.

$57.109 Good cause for other use of completed facility.

If, within 20 years after completion of construction (or, in the case of interim facilities prior to the time at which teaching in such facilities is moved to a permanent facility, whichever comes first), the facility shall cease to be used for any one or more of the purposes for which it was constructed, the Secretary, in determining whether there is good cause for releasing the applicant or other owner of the facility from the obligation so to use the facility, shall take into consideration the extent to which:

(a) The facility will be devoted by the applicant or other owner to the teaching of other health personnel, or to other purposes in the sciences related to health for which funds are available under part B of title VII of the Act and these regulations;

(b) A hospital or outpatient facility will be used as provided for under title VI of the Act;

(c) There are reasonable assurances that for the remainder of such period other facilities not previously utilized for teaching health professions personnel, or for research and related purposes in the sciences related to health,

or for medical library purposes, as the case may be, will be so utilized and are substantially the equivalent in nature and extent for such purposes.

§ 57.110 Acquisition of facilities.

In addition to the other requirements of this subpart the following provisions are also applicable to the acquisition of existing facilities:

(a) Minimum standards of construction and equipment. That a determination by the Secretary that the facility conforms (or upon completion of any necessary construction will conform) to the minimum standards of construction and equipment as set forth in appendix A of this subpart, shall be obtained before entering into a final or unconditional contract for such acquisition. Where the Secretary finds that exceptions to or modification of any such minimum standards of construction and equipment would be consistent with the purposes of part B of title VII of the Act and of the program, he may authorize such exceptions modifications;

or

(b) Estimated cost of acquisition and remodeling: suitability of facility. Each application for a project involving the acquisition of existing facilities shall inIclude in the detailed estimates of the cost of the project, the cost of acquiring such facilities, and any cost of remodeling, renovating or altering such facilities to serve the purposes for which they are acquired. Such application shall demonstrate to the satisfaction of the Secretary that the architectural, structural and other pertinent features of the facility, as modified by any proposed expansion, remodeling, renovation, or alteration, will be clearly suitable for the purposes of the program, and, to the extent of the costs in which Federal participation is requested, are not in excess of what is necessary for the services proposed to be provided in such facilities;

(c) Determination of necessary cost. The necessary cost of acquisition of existing facilities will be determined on the basis of such documentation submitted by the applicant as the Secretary may prescribe (including the reports of such real estate appraisers as the Secretary may approve) and other relevant factors;

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(d) Bona fide sale. Federal partica re tion in the acquisition of existing cilities is on condition that such sition constitutes a bona fide sale volving an actual cost to the applicat and will result in additional or proved facilities for purposes of program; and

(e) Facility which has previoush ceived Federal grant. No grant for = acquisition of a facility which has viously received a Federal grant construction, acquisition, or e ment shall serve either to reduce strict the liability of the applica is any other transferor or transferee any obligation of accountability posed by the Federal Government reason of such prior grant.

$57.111 Additional conditions.

The Secretary may with respec any grant award impose additi conditions prior to or at the time any award when in his judgments conditions are necessary to assur protect advancement of the appr project, the interest of public healt the conservation of grant funds.

$57.112 Early termination and holding of payments.

Whenever the Secretary finds grantee has failed in a material res to comply with the applicable p sions of the Act, the regulations of subpart or the terms of the gra may, on reasonable notice to the g ee, withhold further payments, take such other action, including termination of the grant, as he appropriate to carry out the purp of the applicable provisions of the and regulations. Noncancellable ob tions of the grant properly incu prior to the receipt of the notice of mination will be honored. The gra shall be promptly notified of such mination in writing and given the sons therefor.

APPENDIX A TO SUBPART B MININ STANDARDS OF CONSTRUCTION EQUIPMENT

The minimum standards of construct and equipment set forth below have bee tablished by the Secretary as required section 727 of the Act. In accordance wi U.S.C. 552(a)(1), the publications to w

rence is made in this appendix A, unless rwise indicated, are hereby incorporated eference and made a part hereof. These iments are available for inspection at Department's and Regional Offices' Inlation Centers listed in 45 CFR 5.31 and es of such documents may be purchased pecified. These standards are applicable ll projects approved for construction ts under part B of title VII of the Act; in tion, teaching hospitals and outpatient ities are also required to comply with requirements of "Minimum Requirets of Construction and Equipment for ital and Medical Facilities' (DHHS Pubdon No. (IBR)74-4000)" which document corporated by reference in §53.101(a) of chapter. Said document will be provided ll applicants with a need therefor, and is lable to any interested person, whether ot affected by the provisions of this subupon request to the Regional Office of Department of Health and Human Servor the Public Inquiries Branch, Public th Service, Washington, DC.

General. The structural design, conction, and fire safety provisions of all ect facilities shall comply with the dards of the National Building Code, 1967 ilable from American Insurance AssociaEngineering and Safety Department, 85 1 Street, New York, NY 10038, or 120 th La Salle Street, Chicago, IL 60603, or California Street, San Francisco, CA 1) or with applicable State, local codes ordinances, whichever is more restric

) Mechanical. All installations of fuel ning equipment, steam, heating, air cononing and ventilation, plumbing and ger piping systems and boilers shall comwith the following standards:

Handbook of Fundamentals: American iety of Heating, Refrigerating and Air ditioning Engineers (ASHRAE) 1972; ted Engineer Center, 345 East 47th Street, York, NY 10017.

1) National Standard Plumbing Code 1955; erican Society of Mechanical Engineers ME); United Engineer Center, 345 East Street, New York, NY 10017.

3) Boiler and Pressure Vessel Code, 1971 tion, with current addenda, section 8, Diion I. American Society of Mechanical gineers (ASME); United Engineer Center, East 47th Street, New York, NY 10017. and Fire and safety. The fire-resistant design teria for the facility will be governed by criteria necessary for that portion of the Jility which is subject to the most severe ge. Remodeled structures shall be upded, in total, unless it is feasible to isoe the improved portion of the building ch fire walls and fire doors. Fire-resistant sign shall be in accordance with the standAs of Fire Safety Code Number 101, 1970, tional Fire Protection Association, Inter

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national, 60 Batterymarch Street, Boston, MA 02110.

(d) Emergency electrical service. Fire alarm systems and other electrical service shall conform to the standards as specified in Life Safety Code Number 101, 1970, National Fire Protection Association, International, 60 Batterymarch Street, Boston, MA 02110.

(e) Electrical. All electrical installations and equipment shall be in accordance with State and local codes and applicable sections of National Electric Code, NFPA Bulletin No. 70 HC, 1971, National Fire Protection Association, International, 60 Batterymarch Street, Boston, MA 02110.

(f) Radiation protection. All areas in which X-ray, gamma-ray, beta-ray producing and similar equipment is located shall be protected from radiation in accordance with the standards which are in the handbook reports No. 33, 1968; 34, 1970; 35, 1970, and 36, 1970, of the National Council on Radiation Protection and Measurement, Box 4867, Washington, DC 20008.

(g) Earthquake. All facilities shall be designed and constructed in accordance with the standard specified in the Uniform Building Code, 1970, International Conference of Building Officials, 50 South Los Robles, Pasadena, CA 91101, unless more restrictive State and local codes govern.

(h) Zoning. State and local codes shall apply.

[37 FR 20543, Sept. 30, 1972, as amended at 39 FR 34666, Sept. 27, 1974]

Subpart C-Health Professions Student Loans

AUTHORITY: Sec. 215, Public Health Service Act, 58 Stat. 690, as amended, 63 Stat. 35, (42 U.S.C. 216); secs. 740-747, Public Health Service Act, 77 Stat. 170-173, 90 Stat. 2266-2268, 91 Stat. 390-391, 95 Stat. 920, 99 Stat. 532-536, and as amended by 102 Stat. 3125 (42 U.S.C. 294m-q).

SOURCE: 44 FR 29055, May 18, 1979, unless otherwise noted.

$57.201 Applicability.

The regulations of this subpart apply to the federal capital contributions made by the Secretary to public or other nonprofit health professions schools for the establishment of health professions student loan funds and to loans made to students by schools from these funds.

$57.202 Definitions.

As used in this subpart:

Act means the Public Health Service Act, as amended.