materials shall be distributed as in subparagraph (3) of this paragraph.

(3) Other income. Other income earned by the grantee shall be disposed of in accordance with one of the alternatives specified in chapter 1-420 of the Grants Administration Manual as determined by the Secretary in the grant award.

(d) Grant closeout-(1) Date of final accounting. A grantee shall render, with respect to each approved project, a full account, as provided herein, as of the date of the termination of grant support. The Secretary may require other special and periodic accounting.

(2) Final settlement. There shall be payable to the Federal Government as final settlement with respect to each approved project the total sum of:

(i) Any amount not accounted for pursuant to paragraph (a) of this section;

(ii) Any credits for equipment on hand as provided in paragraph (b) of this section;

(iii) Any credits for earned interest pursuant to paragraph (c) (1) of this section;

(iv) Any other settlements required pursuant to paragraph (c) (2) and (3) of this section.

Such total sum shall constitute a debt owed by the grantee to the Federal Government and shall be recovered from the grantee or its successors or assignees by set off or other action as provided by law. § 59.213 Records, reports, inspection, and audit.

(a) Records and reports. Each grant awarded pursuant to this subpart shall be subject to the condition that the grantee shall maintain such operational and accounting records, identifiable by grant number, and file with the Secretary such operational and fiscal reports relating to the use of grant funds, as the Secretary may find necessary to carry out the purposes of the Act and the regulations. All records shall be retained for 3 years after the close of the budget period. 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, such records shall be retained (1) for 5 years after the close of the budget period or (2) until the grantee is notified of the completion of the Federal audit, which

ever comes first. In all cases where audit questions have arisen before the expiration of such 5-year period, records shall be retained until resolution of all such questions.

(b) Inspection and audit. Any application for grant under this subpart shall constitute the consent of the applicant to inspections of the facilities, equipment, and other resources of the applicant at reasonable times by persons designated by the Secretary and to interview with principal staff members to the extent that such resources and personnel are, or will be, part of the project. In addition, the acceptance of any grant under this subpart shall constitute the consent of the grantee to inspections and fiscal audits by such persons of the supported activity and of records relating to the use of grant funds.

§ 59.214 Additional conditions.

The Secretary may with respect to any grant award impose additional conditions prior to or at the time of any award when in his judgment such conditions are necessary to assure or protect advancement of the approved project, the interests of public health, or the conservation of grant funds.

§ 59.215

Early termination and withholding of payments.

Whenever the Secretary finds that a grantee has failed in a material respect to comply with the Act, the regulations of this subpart, or the terms of the grant, he may, on reasonable notice to the grantee, withhold further payments, and take such other action, including the termination of the grant, as he finds appropriate to carry out the purposes of the Act and regulations. Noncancelable obligations of the grantee properly incurred prior to the receipt of the notice of termination will be honored. The grantee shall be promptly notified of such termination in writing and given the reasons therefor.

84-001-72-18

the

(c) "Surgeon General" means Surgeon General of the Public Health Service and any other officer or employee of the Service to whom he delegates the authority involved.

(d) "Grant" means a grant of funds for the construction of medical library facilities as authorized by the Act.

(e) "Equipment" means those items which are necessary for the functioning of the facilities and which are considered depreciable and as having an estimated life of not less than 5 years. Not included are items of current operating expense such as stationery, binding supplies, catalog cards, or books, pamphlets, and related matter.

(a) Forms. An application for a grant shall be submitted on such forms and in such manner as the Surgeon General may prescribe.

(b) Execution. The application shall be executed by an individual authorized to act for the applicant and to assume on behalf of the applicant all of the obligations specified in the terms and conditions of the grant including those contained in these regulations in this subpart.

(c) Plans and specifications. The applicant shall furnish in sufficient detail plans and specifications of the facility to be constructed so as to indicate the nature and purpose of all portions of the facility and the type and quality of any features bearing on the major costs of construction.

(d) Costs. The applicant shall set forth in detail the estimated total costs of construction of the facility and the basis on which such estimate was made.

(e) Capacity and quality of service. The applicant shall furnish information on the extent to which and manner in which the proposed construction will expand the applicant's capacity for medical library services or is necessary to improve or maintain the quality of such service by the applicant or, for the purpose of section 398, will enable it to serve as a regional medical library.

(f) Other information. The applicant shall submit such other information as

the Surgeon General may require in order to enable him to act on the application.

§ 59a.5 Approval of grants.

Construction grants under this subpart may be made only if the application therefor is recommended for approval by the National Medical Libraries Assistance Advisory Board and approved by the Surgeon General. The Board shall recommend and the Surgeon General shall approve only applications for facilities which will in their judgment best promote the purposes of the Act. In evaluating applications, the Surgeon General shall give priority to applications for construction of facilities for which the need is greatest taking into consideration

(a) Facility; effective utilization. The provisions made for effective utilization and efficient operation of the proposed facility in order to meet demonstrated needs for additional or improved medical library services.

(b) Existing informational services. The number and geographic distribution of health sciences informational facilities and services in the area in which the proposed construction is to take place.

(c) Service group; proximity. Proximity to health professional schools and other institutions, organizations, or groups the members or representatives of which are likely to have the greatest need for the expanded or additional facilities.

(d) Contribution to attainment of health objectives. The extent to which the applicant has assumed or can assume continuing obligations for providing medical library services on a scale and/ or of a type such as to contribute materially to the attainment of the broad objectives of the Act.

(a) Attention is called to the requirements of Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.) which provides that no person in the United States shall, on the ground of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance (sec. 601; 42 U.S.C. 2000d). A regulation implementing Title VI has been issued by the Secretary of Health, Education, and Welfare with the approval of the President (45 CFR Part 80). Grants under this

subpart provide Federal financial assistance subject to Title VI of the Civil Rights Act and the regulation promulgated pursuant thereto.

(b) Each grant hereunder is subject to the condition that the grantee shall comply with the requirements of Executive Order 11246, 30 F.R. 12319 (Sept. 24, 1965), and the applicable rules, regulations, and procedures prescribed pursuant thereto.

§ 59a.7 Terms, conditions, and assur

ances.

(a) In addition to any other requirements imposed by law or determined by the Surgeon General to be reasonably necessary with respect to particular projects to fulfill the purpose of the grant, each construction grant shall be subject to the following terms, conditions, and assurances to be furnished by the applicant. The Surgeon General may at any time approve exceptions to these terms, conditions, and assurances where he finds that such exceptions are not inconsistent with the Act and the purposes of the program.

(b) The applicant shall have a fee simple or such other estate or interest in the site, including necessary easements and rights-of-way, sufficient to assure for a period of not less than 50 years undisturbed use and possession for the purpose of the construction and operation of the facility.

(c) That all construction shall be permanent construction and designed to carry out the purposes of a medical library or regional medical library and that the Surgeon General's approval of the final working drawings and specifications, which conform to the minimum standards of construction and equipment prescribed in § 57.109 of this Chapter, will be obtained before the project is advertised or placed on the market for bidding.

(d) That applicant will perform actual construction work by the lump sum (fixed price) contract method; employ adequate methods of obtaining competitive bidding prior to awarding the construction contract, either by public advertising or circularizing three or more bidders; and award the contract to the responsible bidder submitting the lowest acceptable bid.

(e) The applicant will enter into no construction contract or contracts for the project or a part thereof, the cost of which is in excess of the estimated cost

approved in the application for that portion of the work covered by the plans and specifications, without the prior approval of the Surgeon General, will finance all costs in excess of such estimated cost and will submit to the Surgeon General for prior approval changes that substantially alter the scope of work, functions, utility or safety of the facility.

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

(g) That applicant will maintain adequate and separate 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.

(h) That applicant will furnish progress reports and such other information as the Surgeon General may require.

(1) That applicant will 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 approved plans and specifications.

(j) That sufficient funds are available to meet the non-Federal share of the cost of constructing the facility: Provided, That an application may be approved which contains, in lieu of the above assurance, an assurance as to at least 50 percent of the non-Federal share and a requirement that the applicant give full assurance as to the availability of funds within a reasonable time and upon such reasonable terms and conditions as may be determined by the Surgeon General.

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

(1) That the facility will be used for the purposes for which it is constructed for not less than 20 years after the completion of construction.

(m) That no portion of the facility constructed with funds under the Act will be used for sectarian instruction or as a place for religious worship.

(n) (1) That any laborer or mechanic employed by any contractor or subcontractor in the performance of work on the construction of the facility will be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor in accordance with the Davis

Bacon Act (40 U.S.C. 276 et seq.), and will receive compensation at a rate not less than 12 times his basic rate of pay for all hours worked in any workweek in excess of 8 hours in any calendar day or 40 hours in the workweek (40 U.S.C. 327-332); and (2) that the following conditions and provisions will be included in all construction contracts: (i) The provisions set forth in "Labor Standards for Public Health Service Construction Grant Programs for Hospital and Related Medical Facilities" (PHS No. 930-A-5) pertaining to the Copeland Act (Anti-Kickback) Regulations and Labor Standards (prevailing rates of pay and overtime requirements) except in the case of contracts in the amount of $2,000 or less; (ii) the contractor shall furnish performance and payment bonds 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; (iii) representatives of the Public Health Service and such other persons as the Surgeon General may designate or as may otherwise be provided by law, will 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.

(o) That the applicant will use grant funds solely for the purposes of the construction for which the grant was made.

§ 59a.9 Other use of facility.

If within 20 years after completion of any construction for which a grant has been made the facility shall cease to be used for the medical library purposes for which it was constructed,

(a) The grantee or other owner shall notify the Surgeon General promptly in writing.

(b) The Surgeon General in determining whether there is good cause for releasing the applicant or other public or nonprofit owner from the obligation so to use the facility, shall take into consideration, among other similar factors, the extent to which:

(1) The facility will be devoted by the applicant or other public or nonprofit owner to other health purposes.

(2) The circumstances calling for a change in the use of the facility were not known, or with reasonable diligence could not have been known to the appli

AUTHORITY: The provisions of this Subpart B issued under secs. 392, 396, 79 Stat. 1060, 1063, as amended; 42 U.S.C. 280b-2 280b-7. Reorg. Plan No. 3 of 1966; 3 CFR 1966 Comp.; Reorg. Ords. and Delegations of Mar. 13 and Apr. 1, 1968 (33 F.R. 4894, 5426). § 59a.15(c) also issued under sec. 398, 79 Stat. 1066, as amended; 42 U.S.C. 280b-9.1

SOURCE: The provisions of this Subpart B appear at 31 F.R. 9500, July 13, 1966, unless otherwise noted.

(a) All terms not defined herein shall have the same meaning given them in the Act.

(b) "Act" means the Public Health Service Act, as amended.

(c) "Secretary" means the Secretary of Health, Education, and Welfare and any other officer or employee of the Department of Health, Education, and Welfare to whom the authority involved has been delegated.

(d) "Related instrumentality" means a public or private nonprofit institution, organization, or agency other than a library whose primary function is the acquisition, preservation, dissemination, and/or processing of information relating to the health sciences.

[31 F.R. 9500, July 13, 1966, as amended at 36 F.R. 18306, Sept. 11, 1971]

functions of a medical library or related instrumentality may file an application for a grant of money or materials, or both, under this subpart on such forms and in such manner as the Secretary may prescribe.

(b) Execution. The application shall be executed by an individual authorized to act for the institution or other applicant and to assume on behalf of the applicant the obligations imposed by the terms and conditions of any award, including the regulations of this subpart. [31 F.R. 9500, July 13, 1966, as amended at 36 F.R. 18306, Sept. 11, 1971]

§ 59a.14 Evaluation of applications.

All applications filed in accordance with § 59a.13 shall be evaluated by the Secretary through such officers and employees of the Service and such experts, consultants, or groups as he may engage for this purpose. In addition to such other factors as may be required by the Act or the regulations of this subpart, the Secretary's evaluation shall take into account the scope of library or related services in relation to the population and purposes served by the library or related instrumentality as may be pertinent, including evidence of the efficiency of the applicant in providing services, the amount of available equipment and other resources on hand to satisfy the needs of the area served by the facility, coordination with other library and related facilities, and potentiality for testing or demonstration of new or improved techniques in health sciences informational services.

[31 F.R. 9500, July 13, 1966, as amended at 36 F.R. 18306, Sept. 11, 1971] § 59a.15 Grant awards.

(a) General. Within the limits provided by law and to the extent of funds available, the Secretary shall award grants to those applicants whose proposals for establishment, expansion, or improvement will in his judgment best promote the purposes of section 396 of the Act.

(b) Determination of award amount. The amount of any award, not to exceed $200,000, shall be determined by the Secretary:

(1) On the basis of the scope of medical library or related services provided by the applicant in relation to the population and purposes served by it, taking into account the following factors: