nisms to assure accountability for grant funds and resources.

(e) Operate with the approval, support, and involvement of the tribe, tribes, or Indian communities in the area served by the local facility and program.

(f) Provide Indians, to the extent feasible, opportunities for training and employment in connection with the administration of the project and also provide preference to Indians and Indian owned economic enterprises in the award of subcontracts in connection with the administration of the project.

(g) Keep in force adequate liability insurance in accordance with the approved application unless the Secretary, for good cause shown, determined that such insurance was not obtainable or appropriate or has determined that such insurance may be permitted to expire or lapse.

(h) Perform the project in accordance with the provisions of the Act and the regulations of this part.

(i) Provide services at a level and range which is not less than that provided by the Indian Health Service or that identified by the Service as an appropriate level, range, and standard of

care.

§ 36.106 Grant award and evaluation.

(a) Within the limits of funds determined by the Secretary to be available for such purpose, the Secretary may award grants under this subpart to applicants whose project will, in the judgment of the Secretary, best promote the purposes of the Act, and the regulations of this subpart, taking into account:

(1) The apparent capability of the applicant to organize and manage the proposed project successfully considering, among other things the adequacy of staff, management systems, equipment and facilities.

(2) The soundness of the applicant's plan for conducting the project and for assuring effective utilization of grant funds.

(3) The adequacy of the budget in relation to the scope of the project and available funds.

(4) The relative effectiveness of the applicant's plan, as set forth in the ap

plication, to carry out each of the requirements § 36.105.

(5) The compatibility of the proposed project with the published goals and responsibilities of the IHS in carrying out its statutory mission.

(b) All grant awards shall be in writing, shall set forth the amount of funds granted, and the period for which support is provided.

(c) Neither the approval of any project nor any grant award shall commit the United States in any way to make additional, supplemental, continuation or other awards with respect to any approved project or portion thereof.

§ 36.107 Use of Project Funds.

(a) Any funds granted pursuant to this subpart shall be expended solely for carrying out the approved project in accordance with section 104(b) of the Act, the regulations of this subpart, and the terms and conditions of award.

(b) The provisions of any other Act notwithstanding, any funds made available to a tribal organization under grants pursuant to section 104(b) of the Act may be used as matching shares for any other Federal grant programs which contribute to the purposes for which grants under this section are made.

§ 36.108 Funding duration.

The amount of any award shall be determined by the Secretary on the basis of his estimate of the sum necessary for project costs and the availability of funds.

§ 36.109 Availability of appropriations.

The Secretary will from time to time publish a notice in the FEDERAL REGISTER indicating by areas the allotment of funds and categories of activities for which awards may be made under this subpart. The Secretary may revise such allotments and categories from time to time and will promptly publish a notice of such revisions in the FEDERAL REGISTER.

§ 36.110 Facilities construction.

In addition to other requirements of this subpart:

(a) An applicant for a construction grant to build, renovate, modernize, or

remodel a hospital, clinic, health station or quarters for housing personnel associated with such facilities, must in its application:

(1) Provide its assessment of the environmental impact of the project as called for by section 102(2)(c) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332(c)).

(2) Furnish its evaluation of the project site in accordance with the terms and conditions of E.O. 11296, 31 FR 10663 (August 10, 1966) relating to the evaluation of flood hazards in locating federally owned or financed facilities.

(b) Each applicant for construction grant to build, renovate, modernize, or remodel a hospital, clinic, health station or quarters for housing personnel associated with such facilities, in addition to any other requirements imposed by the Act or determined by the Secretary to be reasonably necessary with respect to particular projects to fulfill the purpose of the grant, shall be subject to the condition that the applicant shall furnish and comply with the following assurances:

(1) Title. That applicant has a fee simple or such other estate or interest in the site for construction, including necessary easements and rights-ofway, sufficient to assure for a period of not less than the estimated useful life of the facility undisturbed use and possession for the purpose of the construction and operation of the facility: Provided, however, That where the construction is to take place on land owned by the United States, applicant need not comply with this provision.

(2) Competitive bids. (i) 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 this subpart.

(ii) That all contracting for construction (including the purchase and installation of built-in equipment) shall, except as provided in paragraph (b)(2)(iii) of this section or as provided in the regulations of this subpart or the Act be on a lump sum fixed-price basis, and contract 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 giving of preference to local contractors or suppliers over non-local contractors or suppliers, except as otherwise provided in these regulations is not authorized.

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

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

(B) The procedure is not inconsistent with applicable State or local laws; and

(C) The Secretary determines that it is necessary to limit bidding to contractors of proven competence due to the complexity or speciality 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 applicant to meet these prequalification standards. Adequate time 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.

(3) Approval of estimated cost. That the applicant will enter into no construction contract or contracts with respect to the project or any portion thereof where the cost exceeds the estimates in the application for such work, without prior approval of the Secretary.

(4) Relocation assistance. That in the case of an applicant with an approved project which involves the displacement of persons or businesses 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 (42 U.S.C. 4601 and applicable regulations issued thereunder (45 CFR Part 15). (5) Completion responsibility. The 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.

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

(7) Construction supervision. That applicant shall provide and maintain competent and adequate architectural and engineering supervision and inspection at the construction site to insure that the completed work conform to the plans and specifications.

(8) Authorized uses. That the facility is intended and will be used only for the purposes for which the application has been made.

(9) Wage rate standards. That all laborers and mechanics employed by contractors or subcontractors in the construction, alteration, or repair, including painting or decorating of building or other facilities in connection with contracts or grants entered into pursuant to the Act, shall be paid wages at not less than those prevailing on similar construction in the locality, as determined by the Secretary of Labor in accordance with the DavisBacon Act of March 3, 1931, as amended.

(10) Accessibility by handicapped. That the applicant shall require the facility to be designed to comply with the "American Standard Specifications for Making Buildings and Facilities Accessible to, and Usable by, the Physically Handicapped," Number A 117.1-1961 as modified by other standards prescribed by the Secretary.

(11) Minimum standards of construction and equipment. That the plans and specifications for the project will conform to the minimum standards of construction and equipment as set forth in Appendix A of this subpart.

(12) Construction contract requirements. That the following conditions and provisions must be included in all construction contracts let by grantee:

(i) The provisions set forth in "DHEW Requirements for Federally Assisted Construction Contracts Regarding Labor Standards and Equal Employment Opportunities," Form DHEW 514 (latest edition) (issued by

the Office of Grants Administration Policy, United States Department of Health, Education, and Welfare) pertaining to the Davis-Bacon Act, the Contract Work Hours and Safety Standards Act, and the Copeland Act (Anti-Kickback) Regulations, except in the case of contracts in the amount of $2,000 or less; and pertaining to Executive 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: Provided, however, That nothing required herein shall be in contravention of the requirements of section 7 of Pub. L. 93-638, 25 U.S.C. 450e.

(ii) The contractor shall furnish performance and payment bords, 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 an Indian tribe or tribal organization entering 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.

(iii) 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.

§ 36.114 Applicability of 45 CFR Part 74.

The following provisions of 45 CFR Part 74, establishing uniform administrative requirements and cost principles shall apply to all awards under this subpart to the extent they are consistent with this subpart:

(a) Subpart A "General", except that for purposes of this subpart the definition of "local government" in § 74.3 shall also include Indian tribes and tribal organizations.

(b) Subpart B, “Cash Depositories”. (c) Subpart C, "Bonding and Insurance" except as otherwise specifically provided in this subpart.

(d) Subpart D, "Retention and Custodial Requirements for Records".

(e) Subpart F, "Grant-Related Income", except for § 74.42.

(f) Subpart H, "Standards for Grantee and Subgrantee Financial Management Systems".

(g) Subpart I, "Financial Reporting Requirements".

(h) Subpart J, "Monitoring and Reporting of Program Performance".

(i) Subpart K, "Grant Payment Requirements", except that the references in §74.94 to 874.113 shall be deemed to be references to § 36.115 of this subpart.

(j) Subpart L, "Budget Revision Procedures".

(k) Sections 74.110 and 74.111 of Subpart M, "Grant Closeout, Suspension, and Termination".

(1) Subpart N, "Forms for Applying for Grants".

(m) Subpart O, “Property”.

(n) Subpart P, "Procurement Standards" provided, however, that to the greatest extent feasible preferences and opportunities for training and employment in connection with the administration of grants and contracts pursuant to this Act shall be awarded to Indians and preference in the award

of subcontracts and subgrants in connection with the administration of grants and contracts pursuant to this Act shall be given to Indian Organizations and Indian-owned economic enterprises.

(0) Sections 74.140 and 74.171 of Subpart Q, "Cost Principles," and Appendix C to such subpart, except for paragraph J (4) of Part I of such Appendix.

§ 36.115 Recission of grants.

(a) When the Secretary determines that the performance of a grantee under these regulations involves (1) the violation of the rights or endangerment of the health, safety, or welfare of any persons, or (2) gross negligence or the mismanagement in the handling or use of funds under the grant, the Secretary will, in writing, notify the grantee of such determination and will request that the grantee take such corrective action, within such period of time, as the Secretary may prescribe.

(b) When the Secretary determines that a grantee has not taken corrective action (as prescribed by him under paragraph (a) of this section) to his satisfaction, he may, after providing the grantee an opportunity for a hearing in accordance with paragraph (c) of this section, rescind the grant in whole or in part and if he deems it appropriate, assume or resume control or operation of the program, activity, or service involved.

(c) When the Secretary has made a determination described in paragraph (b) of this section, he shall in writing notify the grantee of such determination and of the grantee's right to request a review of such determination (and of the determination described in paragraph (a) of this section) under the Public Health Service Grant Appeals Procedure (42 CFR Part 50, Subpart D). Such notification by the Secretary shall set forth the reasons for the determination in sufficient detail to enable the grantee to respond and shall inform the grantee of its opportunity for review under such Subpart D. If the review held under Subpart D results in a response adverse to the grantee's position, the grantee shall be informed of its right to have a hearing

before the Department Grant Appeals Board, pursuant to 45 CFR Part 16.

(d) Where the Secretary determines that a grantee's performance under a grant awarded under this subpart poses an immediate threat to the safety of any person, he may immediately rescind the grant in whole or in part and if he deems it appropriate, assume or resume control or operation of the program, activity, or service involved. Upon such recission he will immediately notify the grantee of such action and the basis or reasons therefor; and offer the grantee an opportunity for a hearing to be held within 10 days of such action. If the grantee requests such a hearing, the Secretary will designate three officers or employees of the Department to serve as a hearing panel. No officer or employee from the immediate office of the official who made the decision to rescind the grant under this paragraph may be designated to serve on the hearing panel.

(1) The hearing shall be commenced within 10 days after the recission of the grant, shall be held on the record and shall afford the grantee the right: (i) To notice of the issues to be considered;

(ii) To be represented by counsel; (iii) To present witnesses on grantee's behalf; and

(iv) To cross-examine other witnesses either orally or through written interrogatories.

(2) The hearing panel shall, within 25 days after the conclusion of the hearing, notify all parties in writing of its decision.

(3) Such decision shall not be subject to further hearing under 42 CFR Part 50, subpart D or 45 CFR Part 16. (e) In any case where the Secretary has rescinded a grant under paragraph (b) or (d) of this section, he may decline to enter into a new grant agreement with the grantee until such time as he is satisfied that the basis for the recission has been corrected. Nothing in this section shall be construed as contravening the Occupational Safety and Health Act of 1970 (84 Stat. 1590), as amended (29 U.S.C. 651).

(f) In any case where the Secretary has rescinded a grant for the delivery of health services under this subpart,

the grantee shall, upon the request of the Secretary, transfer to the Secretary all medical records compiled in the operation of the supported project.

§ 36.116 Reports.

In addition to the reporting and information requirements provided in Subpart J of 45 CFR Part 74 made applicable to grants under this subpart by § 36.114, each recipient of Federal financial assistance shall make such reports and information available to the Indian people served or represented by such recipients and in a manner determined by the Secretary to be adequate.

§ 36.117 Amendment of regulations.

Before revising or amending the regulations in this subpart, the Secretary shall take the following actions:

(a) Consult with Indian Tribes and national and regional Indian organizations to the extent practicable about the need for revision or amendment and consider their views in preparing the proposed revision or amendment.

(b) Present the proposed revision or amendment to the Committees on Interior and Insular Affairs of the United States Senate and House of Representatives.

(c) Publish the proposed revisions or amendments in the FEDERAL REGISTER as proposed rulemaking to provide adequate notice to receive comments from, all interested parties.

(d) After consideration of all comments received, publish the regulations in the FEDERAL REGISTER in final form not less than 30 days before the date they are made effective.

§ 36.118 Effect on existing rights.

The regulations in this part are not meant to and do not:

(a) Affect, modify, diminish, or otherwise impair the sovereign immunity from suit enjoyed by an Indian tribe;

(b) Authorize, require or permit the termination of any existing trust responsibility of the United States with respect to the Indian people;

(c) Permit significant reduction in services to Indian people as a result of this subpart.