Government-Furnished Property to be in excess of its need under this contract, such Government-Furnished Property shall be disposed of in the same manner as covered by paragraph (1) above. In the event that the Contracting Officer requires the removal of any Government-Furnished Property un

der

this paragraph (1) or paragraph (1) above, upon timely written request of the Contractor, an equitable adjustment shall be made in the contract price to cover the direet cost to the Contractor of such removal and of any property damage occasioned thereby.

Clause No. 24-Examination of records by the Comptroller General.

(a) The Contractor agrees that the Comptroller General of the United States or any of his duly authorized representatives shall, until expiration of 3 years after final payment under this contract, or of the time periods for the particular records specified in Part 1-30 of the Federal Procurement Regulations (41 CFR Part 1-20), whichever expires earlier, have access to and the right to examine any directly pertinent books, documents, papers, and records of the Contractor involving transactions related to this contract.

(b) The Contractor further agrees to include in all his subcontracts hereunder a provision to the effect that the subcontractor agrees that the Comptroller General of the United States or any of his duly authorized representatives shall, unt expiration of 3 years final payment under the subcontract, or of the time periods for the particular records specified in Part 1-20 of the Federal Procurement Regulations (41 CFR Part 120), whichever expires earlier, have access to and the right to examine any directly pertinent books, documents, papers, and records of such subcontractor, involving transactions related to the subcontract. The term "subcontract" as used in this clause excludes (1) purchase orders not exceeding $2,500 and (2) subcontracts or purchase orders for public utility services at rates established for uniform applicability to the general public.

Clause No. 25-Indemnity and insurance. (a) The Contractor shall indemnify and save and keep harmless the Government against any or all loss, cost, damage, claim, expense or liability whatsoever, because of accident or injury to persons or property or others occurring in connection with any program included as a part of this contract, by providing where applicable, the insurance described below:

(b) The Contractor shall secure, pay the premium for, and keep in force until the expiration of this of this contract, or any renewal period thereof, insurance as provided below. Such insurance policies shall specifically include a proviston stating the liability assumed by the Contractor under this contract.

(1) Workman's compensation insurance as required by laws of the state.

(2) Owner's landlord's and tenant's bodily injury liability insurance with limits of not less than $50,000 for each person and $500,000 for each accident.

(3) Property damage liability insurance with limits of not less than $25,000 for each accident.

(4) Automobile bodily injury liability insurance with limits of not less than 850,000 for each person, and $500,000 for each accident and property damage liability Insurance with a limit of not less than $5,000 for each accident.

(5) Food products liability Insurance with limits of not less than $50,000 for each person and 8500,000 for each accident.

(6) Professional malpractice insurance where medical, dental or other health professional services are involved.

(7) Other Ilability insurance not specifically mentioned when required.

RULES AND REGULATIONS

(c) Each policy of insurance shall contain an endorsement providing that cancellation by the insurance company shall not be effective unless a copy of the cancellation is mailed (registered) to the Contracting Officer 30 days prior to the effective date of cancel

lation.

(d) A certificate of each policy of insurance, and any changed therein, shall be furnished to the Contracting Officer immediately upon receipt from the insurance company.

(e) Insurance companies of the Contractor shall be satisfactory to the Contracting Omcer. When in his opinion an insurance company is not satisfactory for reasons that will be stated, the Contractor shall provide insurance through companies that are satisfactory to the Contracting Officer.

(1) Each policy of insurance shall contain a provision that the insurance carrier waives any rights it may have to raise as a defense the tribe's sovereign immunity from suit, but such waiver shall extend only to claims. the amount and nature of which are within the coverage and limits of the policy of insurance. The policy shall contain no provision, either express or implied, that will serve to authorize or empower the insurance carrier to waive or otherwise limit the tribe's sovereign immunity outside or beyond the coverage and limits of the policy of insur

ance.

Clause No. 26-Fair and equal treatment of Indian people.

(a) The Contractor agrees to make no discriminatory distinctions among Indian patients or beneficiaries of this contract. For the purpose of this contract discriminatory distinctions include but are not limited to the following:

(1) Denying a patient any service or benefit or availability of a facility;

(11) Providing any service or benefit to a patient which is different, or is provided on a different manner or at a different time from that provided to other patients under this contract; subjecting a patient to segregation or separage treatment in any manner related to his receipt of any service; restricting a patient in any way in the enjoyment of any advantage or privilege enjoyed by others receiving any service or benefit; treating a patient differently from other in determining whether he satisfies any admission, enrollment, quota, eligibility membership, or other requirements or condition which individuals must meet in order to be provided any service or benefit; the assignment of times or places for the provision of services on the basis of discriminatory distinctions which may be made of the patients to be served.

(b) The Government reserves the right to terminate this contract in whole or in part whenever the Contractor fails to comply with the requirements of this clause.

Clause No. 27-Reports to the Indian people and annual reports.

(a) The Contractor, as a recipient of Federal financial assistance, shall make reports and information available to the Indian people serviced or represented by the contractor. Such reports will reflect how the Federal assistance funds were utilized to the benefit of the Indian people served or represented as follows: (specific reporting requirements, formate and methods of distribution to the Indian people will be prescribed in the scope of the contract.)

(b) Annual reports.

(1) For each fiscal year during which a tribal organization receives or expenda funds pursuant to a contract under this Part, the tribe which requested the contract must submit a report to the Contracting Officer. The report shall include, but not be limited to, an accounting of the amounts and purposes for which the contract funds were expended and information on the conduct of the pro

53137

gram or services involved. The report shall include any other information requested by the Contracting Officer and may be submitted as follows:

(1) When the contract is with the governing body of an Indian tribe, the tribe shall submit the report to the Contracting Officer.

(11) When the contract is with a tribal organization other than the governing body of the tribe, the tribe has the option of having the tribal organization prepare the report and submit it to the tribe for review and approval before the tribe submits it to the Contracting Officer.

(1) When the contract benefits more than one tribe, the tribal organization shall prepare and submit the report to each of the tribes benefiting under the contract. Each tribe shall endorse the report before submitting it to the Contracting Officer.

(2) The annual report shall be submitted to the Contracting Officer within 90 days of the end of the fiscal year in which the contract was performed. However, the period for submitting the report may be extended if there is just cause for such extension.

(3) In addition to the yearly reporting requirement given in paragraphs (a) and (b) of this section, the tribal contractor shall furnish other report when and as required by the Secretary.

Clause No. 28-Questionnaires and surveys. In the event the performance of this contract involves the collection of information upon identical items from 10 or more perBons, other than Federal employees, the Contractor shall obtain written approval from the Contracting Officer, prior to the use thereof, of any forms, schedules, questionnaires, survey plans or other documents, and any revisions thereto, intended to be used in such collection.

Clause No. 29-Printing.

Unless otherwise specified in this contract, the Contractor shall not engage in, nor subcontract for, any printing (as that term is defined in Title I of the Government Printing and Binding Regulations in effect on the effective date of this contract) in connection with the performance of work under this contract: Provided, however. That performance of a requirement under this contract involving the reproduction of less than 5,000 production units of any one page, or less than 25,000 production units in the aggregate of multiple pages, will not be deemed to be printing. A production unit is defined as one sheet, size 8 by 10% inches, one side only. one color.

Clause No. 30-Price reduction for defective cost or pricing.

The following clause applies to all contracts where cost and pricing data is required in accordance with Pub. L. 87-653. Price Reduction for Defective Cost or Pricing Data

(a) If the Contracting Officer determines that any price negotiated in connection with this contract or any cost reimbursable under this contract was increased by any signifcant sums because the Contractor, or any subcontractor pursuant to the clause of this contract entitled "Subcontractor Cost or Pricing Data" or "Subcontractor Cost or Pricing Data-Price Adjustments," or any subcontract clause therein required, furnished incomplete or inaccurate cost or pricing data or data not current as certified in his Contractor's Certificate or Current Cost or Pricing Data, then auch price or cost shall, be reduced accordingly and the contract shall be modified in writing to reflect such reduction.

(b) Failure to agree on a reduction shall be a dispute concerning a question of fact within the meaning of the "Disputes" clause of this contract.

53138.

(NOTE: Since the contract is subject to reduction under this clause by reason of defective cost or pricing data submitted in connection with certain subcontracts, it is expected that the contractor may wish to include a clause in each such subcontract requiring the subcontractor to appropriately indemnify the contractor. It is also expected that any subcontractor subject to such indemnification will generally require substantially similar indemnification for defective cost or pricing data required to be submitted by his lower tier subcontractors.)

Clause No. 31-Subcontractor cost and pricing data.

The following clause should be included in all contracta, when the subcontracts of the type and size described therein are contemplated.

Subcontractor Cost and Pricing Data

(a) The Contractor shall require subcontractors hereunder to submit in writing cost от pricing data under the following

circumstances:

(1) Prior to award of any cost-reimbursed type, time and material labor-hour, incentive, or price redeterminable subcontract the price of which is expected to exceed $100,000, and

(2) Prior to the award of any other subcontract, the price of which is expected to exceed $100,000, or to the pricing of any subcontract change or other modification or which the price adjustment is expected to exceed $100,000, where the price or price adjustment is not based on adequate price competition, established catalog or market prices of commercial items sold in substantial quantities to the general public, or prices set by law or regulation.

(b) The Contractor shall require subcontractors to certify, substantially the same form as that used in the certificate by the Prime Contractor to the Government, that, to the best of their knowledge and belief, the cost and pricing data submitted under (a) above are accurate, complete, and current as of the date of the execution, which date shall be as close as possible to the date of agreement on the negotiated price of the subcontract or subcontract change or modification.

(c) The Contractor shall insert the substance of this clause including this paragraph (c) in each of his cost-reimbursement type, time and material, labor-hour, price redeterminable, or incentive subcontracts hereunder, and in any other subcontract hereunder which exceed $100,000 unless the price thereof is based on adequate price competition, established catalog or market prices of commercial items sold in substantial quantities to the general public, or prices set by law or regulation. In each such excepted subcontract hereunder which exceed $100,000, the Contractor shall insert the substance of the following clause: Subcontractor Cost and Pricing Data-Price Adjustment

(a) Paragraph (b) and (c) of this clause shall become operative only with respect to any change or other modification made pursuant to one or more provisions of this contract which involves a price adjustment in excess of $100,000. The requirements of this clause shall be limited to such price adjust

ments.

(b) The Contractor shall require subcontractors hereunder to submit cost or pricing data under the following circumstances:

(1) Prior to award of any cost-reimbursement type, time and material; labor-hour, incentive, or price redeterminable subcontract, the price of which is expected to exceed $100,000; and

(2) Prior to award of any other subcontract, the price of which is expected to ex

RULES AND REGULATIONS

ceed $100,000, or to the pricing of any subcontract change or other modification for which the price adjustment is expected to exceed $100,000, there the price or price adjustment is not based on adequate price competition, established catalog or market prices of commercial items sold in substantial quantities to the general public, or prices set by law or regulation.

(c) The Contractor shall require subcontractors to certify, in substantially the same form as that used in the Certificate by the Prime Contractor to the Government, that, to the best of their knowledge and belief, the cost and pricing data submitted under (b) above are accurate, complete, and current as of the date of the execution, which date shall be as close as possible to the date of agreement on the negotiated price of the contract modification.

(d) The Contractor shall insert the substance of this clause including this paragraph (d) in each subcontract hereunder which exceeds $100,000.

Clause No. 32-Advance payment.

(a) Amount of Advance. At the request of the contractor, and subject to the conditions hereinafter set forth, the Government shall make an advance payment, or advance pay ments from time to time, to the Contractor. No advance payment shall be made (1) without the approval of the officer administering advance payments (hereinafter called the "Administering Office" and designated in paragraph (k) (4) hereof) as with all advance payments theretofore made, shall exceed the amount stated in paragraph (k) (1) hereof; and (3) without a properly certified invoice or invoices.

(b) Special Bank Account. Until all advance payments made hereunder are liqui dated and the Administering Office approves in writing the release of any funds due and payable to the Contractor, all advance payments and all other payments under the contract shall be made by check payable to the Contractor, and be marked for deposit only in a Special Bank Account with the bank designated in paragraph (k) (2) hereof. No part of the funds in the Special Bank Account shall be mingled with other funds of the Contractor prior to withdrawal thereof from the Special Bank Account as hereinafter provided. Except as hereinafter provided, each withdrawal shall be made only by check of the Contractor countersigned on behalf of the Government by the Contracting Officer or such other person or persons as he may designate in writing (hereinafter called the "Countersigning Agent"). Until otherwise determined by the Administering Office, countersignature on behalf of the Government will not be required.

(c) Use of Funds. The funds in the Speclal Bank Account may be withdrawn by the Contractor solely for the purposes of making payments for items of allowable cost or to reimburse the Contractor for such items of allowable cost, and for such other purposes as the Administering Office may approve in writing. Any interpretation required as to the proper use of funds shall be made in writing by the Administering Office.

(d) Return of Funds. The Contractor may at any time repay all or any part of the funds advanced hereunder. Whenever so requested in writing by the Administering Office, the Contractor shall repay to the Government such part of the unliquidated balance of advance of advance payments as shall in the opinion of the Administering Office be in excess of current requirements, or (when added to total advance previously made and liquidated) in excess of the amount specified in paragraph (k) (1) hereof. In the event the Contractor fails to repay such part of the unliquidated balance of advance payments when so requested by the Administering Office, all or any part thereof

may be withdrawn from the Special Bank Account by checks payable to the Treasurer of the United States signed solely by the Countersigning Agent and applied in reduction of advance payments then outstanding hereunder.

(c) Liquidation. If not otherwise liquidated, the advance payments made hereunder shall be liquidated as herein provided. When the sum of all payments under this contract, other than advance payments, plus the unliquidated amount of advance payments are equal to the total estimated cost for the work under this contract or such lesser amount to which the total estimated cost under this contract may have been reduced, plus increases, if any, in this total estimated cost not exceeding, in the aggregate. (including, without limitation, reimbursable costs incident to termination for cause and retrocession as estimated by the Contracting Officer), the Government shall thereafter withhold further payments to the Contractor and apply the amounts withheld against the Contractor's obligation to repay such advance payments until such advance payments shall have been fully liquidated. If upon completion, termination, or retrocession of the contract all advance payments have not been fully liquidated, the balances therefore shall be deducted from any sums otherwise due or which may become due to the Contractor from the Government, and any deficiency shall be paid by the Contractor to the Government upon demand.

(f) Bank Agreement. Before an advance payment is made hereunder, the Contractor shall transmit to the Administering Office, in the form prescribed by such office, an Agreement in triplicate from the bank in which the Special Bank Account is established, clearly setting forth the special character of the account and the responsibilities of the bank thereunder. Wherever possible, such bank shall be a member bank of the Federal Reserve System. an "insured" bank within the meaning of the Act creating the Federal Deposit Insurance Corporation Act of August 23, 1935, 49 Stat. 685, as amended (12 USC. 264)

or

(g) Lien on Special Bank Account. The Government shall have a lien upon any balance in the Special Bank Account paramount to all other lens, which lien shall secure the repayment of any advance payments made hereunder.

(h) Lien on Property under Contract. Any and all advance payments made under this contract shall be secured, when made, by a lien in favor of the Government, paramount to all other liens, upon the supplies or other things covered by this contract and on all material and other property acquired for or allocated to the performance of this contract, except to the extent that the Government by virtue of any other provision of this contract, or otherwise, shall have valid title to such supplies, materials, or other property as against other creditors of the Contractor. The Contractor shall identify, by marking or segregation, all property which is subject to a lien in favor of the Government by virtue of any provision of this contract in such a way as to indicate that it is subject to such lien and that it has been acquired for or allocated to the performance of this contract. If for any reason such supplies, materials, or other property are not identified by marking or segregation, the Government shall be deemed to have a lien to the extent of the Government's interest under this contract on any mass of property with which such supplies, materials, or other property are commingled. The Contractor shall maintain adequate accounting control over such property on his books and records. If at time during the progress of the work on the contract it becomes necessary to deliver any item or items

and materials upon which the Government has a lien as aforesaid to a third person, the Contractor shall notify such third person of the lien herein provided and shall obtain from such third person a receipt, in duplicate, acknowledging, inter alia the existence of such lien. A copy of each receipt shall be delivered by the Contractor to the Contracting Officer. If this contract is terminated in whole or in part and the Contractor is authorized to sell or retain termination inventory acquired for or allocated to this contract, such sale or retention shall be made only if approved by the Contracting Officer, which approval shall constitute a release of the Government's lien hereunder to the extent that such termination inventory is sold or retained, and to the extent that the proceeds of the sale, or the credit allowed for such retention on the Contractor's termination claim, is applied in reduction of advance payments then outstanding hereunder.

(1) Insurance. The Contractor represents and warrants that he is now maintaining with responsible insurance carriers, (1) insurance upon his own plant and equipment against fire and other hazards to the extent that like properties are usually insured by others operating plants and properties of similar character in the same general locality: (2) adequate insurance against liability on account of damage to persons or property; and (3) adequate insurance under all applicable workmen's compensation laws. The Contractor agrees that, until work under this contract has been completed and all advance payments made hereunder have been liquidated, he will (1) maintain such insurance; (11) maintain adequate insurance upon any materials, parts, assemblies, subassemblies, supplies, equipment and other property acquired for or allocable to this contract and subject to the Government lien hereunder; and (111) furnish such certificates with respect to his insurance as the Administering Office may from time to time require.

(1) Prohibition against Assignment. Notwithstanding any other provision of this contract, the Contractor shall not transfer, pledge, or otherwise assign this contract, or any interest therein, or any claim arising thereunder, to any party or parties, bank, trust company, or other financing institu tion.

(k) Designations and Determinations. (1) Amount. The amount of advance payments at any time outstanding hereunder shall not exceed 8

RULES AND REGULATIONS

(2) Depository. The bank designated for the deposit of payments made hereunder shall be:

(3) Interest Charge. No interest shall be charged for advance payments made hereunder. The Contractor shall charge interest at the rate of 6 percent per annum on subadvances or down payments to subcontractors, and such interest will be credited to the account of the Government. However, interest need not be charged on subadvances on nonprofit subcontracts with nonprofit educational or research institutions for experimental, research or development work.

(4) Administering Ofice. The office administering advance payments shall be the office designated as having responsibility for awarding the contract.

(e) Other Security. The terms of this contract shall be considered adequate security for advance payments hereunder, except that if at any time the administering office deems the security furnished by the Contractor to be inadequate, the Contractor shall furnish such additional security as may be satisfactory to the administering office, to the extent that such additional security is available.

Clause No. 33-Effect on existing rights. (a) Nothing in this contract shall be construed as

(1) Affecting, modifying, diminishing, or otherwise impairing the sovereign immunity for sult enjoyed by an Indian tribe; or,

(2) Authorizing or requiring the termination of any existing trust responsibility of the United States with respect to the Indian people.

Clause No. 34-Federal, State, and local taxes.

(a) Except as may be otherwise provided in this contract, the contract price includes all applicable Federal, State, and local taxes and duties.

(b) Nevertheless, with respect to any Federal excise tax or duty on the transactions or property covered by this contract, if a statute, court decision, written ruling, or regulation takes effect after the contract date, and

(1) Results in the Contractor being required to pay or bear the burden of any such Federal excise tax or duty or increase in the rate thereof which would not otherwise have been payable on such transactions or property, the contract price shall be increased by the amount of such tax or duty or rate increase: Provided, That the Contractor if requested by the Contracting Officer, war

53139

rants in writing that no amount for such newly imposed Federal excise tax or duty or rate increase was included in the contract price as a contingency reserve or otherwise;

or

(2) Results in the Contractor not being required to pay or bear the burden of, or in his obtaining a refund or drawback of, any such Federal excise tax or duty which would otherwise have been payable on such transactions or property or which was the basis of an increase in the contract price, the contract price shall be decreased by the amount of the relief, refund, or drawback, or the amount shall be paid to Government, as directed by the Contracting Officer. The contract price shall be similarly decreased if the Contractor, through his fault or negligence or his fallure to follow instructions of the Contracting Officer, is required to pay or bear the burden of, or does not obtain, a refund or drawback of, any such Federal excise tax or duty.

(c) No adjustment pursuant to paragraph (b) above will be made under this contract unless the aggregate amount thereof is or may reasonably be expected to be over $100.

(d) As used in paragraph (b) above, the term "contract date" means the date set for the bid opening, or if this is a negotiated contract, the date of this contract. As to additional supplies or services procured by modification to this contract, the term "contract date" means the date of such modification.

(e) Unless there does not exist any reasonable basis to sustain an exemption, the Government, upon request of the Contractor, without further liability, agrees, except as otherwise provided in this contract, to furnish evidence appropriate to establish exemption from any tax which the Contractor warrants in writing was excluded from the contract price. In addition, the Contracting Officer may furnish evidence to establish exemption from any tax that may, pursuant to this clause, give rise to either an increase or decrease in the contract price. Except as otherwise provided in this contract, evidence appropriate to establish exemption from duties will be furnished only at the direction of the Contraction Officer.

(f) The Contractor shall promptly notify the Contracting Officer of matters which will result in either an increase or decrease in the contract price, and shall take action with respect thereto as directed by the Contracting Officer.

[FR Doc.75-30623 Filed 11-13-75;8:45 am]

64-882 O 76-34

53142

Title 42-Public Health

CHAPTER DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE

PART 36 INDIAN HEALTH

Subpart H-Grants for Development, Construction, and Operations of Facilities and Services

Subpart I Contracts Under the Indian
Self-Determination Act

On August 14, 1975, an advance notice of proposed rulemaking was published in the FEDERAL REGISTER (40 FR 34292) advising of the intention of the Secretary of Health, Education, and Welfare to propose rules governing grants and contracts pursuant to sections 103 and 104 (b) of the Indian Self-Determination and Education Assistance Act, Pub. L. 93-638. Public comments was invited. On September 15, 1975, the Secretary published in the FEDERAL REGISTER (40 FR 42658) a Notice of Proposed Rulemaking setting forth for public comment the rules and regulations which, when adopted, would govern grants and contracts pursuant to the Indian Self-Determination and Education Assistance

Act.

Title I of the Pub. L. 93-638 directs the Secretary of Health, Education, and Welfare to enter into contracts with tribal organizations pursuant to section 103 of the Act to carry out any or all of the Secretary's functions, authorities, and responsibilities under the Act of August 5, 1954 (68 Stat. 674), 42 U.S.C. 2001, as amended, and authorizes the Becretary to make grants to Indian tribes or tribal organizations pursuant to section 104(b) of the Act for the development, construction, operation, provision or maintenance of facilities or services and for planning, training, and evalua tion projects to improve the capacity of tribal organizations to contract. In the true spirit of self-determination, the Department of Health, Education, and Welfare through the Indian Health Service has taken extraordinary measures to seek and include the recommendations of the Indian people in the drafting of the regulations needed to implement this Act.

Numerous meetings were held with the Bureau of Indian Affairs and the Civil Service Commission regarding similar obligations under the Act, recognizing the need for a set of regulations that would be as similar and as applicable as pos

sible to both IHS and BIA. Strategy meetings were held in early January and February, resulting in a plan for conducting extensive field orientations and working consultations with the tribes. These were designed to solicit recommendations on a continuing basis at every stage of preparing the regulations for publication. An initial draft of implementation regulations was drawn up and sent to the tribes and field offices for review. During March and April, IHS and BIA sent teams to 15 strategic locations to discuss the draft regulations with Indian leaders and people and record their recommendations. Workshops and task forces were then set up to incorporate the input from the tribes into a working set of draft regulations and to develop issue or position papers out

RULES AND REGULATIONS

A second set of draft regulations was then sent out to the field and in late May and June the IHS and BIA teams again set forth to meet with the Indian people. To preserve continuity, the meetings were held, whenever possible, in the same place with the same teams making the presentations.

The resulting input received from the tribe and field offices was again reviewed and incorporated into a set of draft regulations which were submitted to the appropriate Congressional Committees on August 4. An Advance Notice of Proposed Rulemaking was published in the FEDERAL REGISTER on August 14, to give the Indian people yet another opportunity to review the proposed regulations, and the Notice of Proposed Rulemaking was published on September 15. At all stages of development of the regulations particular effort was made to respond to the recommendations made by the Indian people. While there has been a significant amount of cooperation between the staff of the Indian Health Service and that of the Bureau of Indian Affairs, the regulations issued by the respective Department are not sufficiently similar. This has resulted from different draftsmen working within different organizations, each striving to produce an endproduct in keeping with their respective standards. It is now realized that what is needed is uniformity wherever possible, that is, in every situation where programmatic differences do not require that distinctions be made. This need for uniform language and organization is of great importance because the Indian tribes seeking to benefit from the Act should not be burdened with the problem of reading different texts to derive basically the same information about closely related problems, nor should they have to trace cross-referenced material where this could be avoided. Accordingly, representatives of this Department will meet dian Affairs in an effort to achieve maxiwith representatives of the Bureau of Intwo agencies. Thus, even as these regulamum uniformity in the regulations of the tions are promulgated, it is anticipated that a major revision of these regulations is in order.

While the Department is committed to such an undertaking, the comments received from the public in response to the September 15, 1975, Notice of Proposed

Rulemaking have been carefully considered in promulgating these regulations. Comments from over 25 different sources were received. In general, the comments suggested the need for greater similarity with the regulations of the Bureau of Indian Affairs, the need to eliminate unnecessary cross-referencing to other statutes or regulations, the need for more procedural safeguards for Indian people, and the need for assurance that the input of Indian people will be considered in the Secretary's decisions affecting Indian people.

In view of the commitment of the Secretary to working with the Indian people to achieve uniformity in the regulations of the Departments implementing Pub. L.

have been made to conform to the provisions in the BIA regulations. Some changes have been made to improve style, to clarify meaning and to reflect generally applicable Departmental policy. The changes in style, clarity, and organizational structure are apparent from the text and are not specifically discussed below. The cross references contained in the proposed regulations have not been deleted as it is anticipated that this is an issue which will be taken up with representatives of the tribes and BIA. Other specific comments are addressed below. SUBPART H-GRANTS

1. It was suggested that the word "non-profit" be deleted from the definition of tribal organization because the statute did not contain such a limitation. We agree and have, accordingly, deleted the term from § 36.102(d). This change was made as the concept of a grant does not, by its nature, include a profit element. The fact that the grantee is a forprofit organization does not change the nature of a grant which does not include a profit element.

2. One commentator suggested that consultation with Indians be required prior to publishing a notice of availability of funds as required by § 36.109. This suggestion was not adopted because consultation is currently part of the normal budget process and because the allocation of funds reflects Congressional action in the appropriation process.

3. While 36.114 makes applicable the uniform administrative requirements and cost principles of 45 CFR Part 74, a provision was added to § 36.114 to make clear that such requirements apply only to the extent that they are consistent with the regulations of this subpart.

4. The portion of § 36.115 which related to suspension of grants was deleted because the Department, upon further consideration, agreed with comments pointing out that suspension was not au(d) has been revised to clarify the appeal thorized by the statute. Section 36.115 where a recision is based on an immediprocedures and the rights of the grantee ate threat to safety.

5. Two new $36.120 and 36.121 entitled respectively Use of Indian business concerns and Indian preference in training and employment, have been added to subpart H to give effect to section 7(b) of the Act, 25 U.S.C. 450e (b).

SUBPART I-CONTRACTS

6. A number of comments noted that it did not appear from the text of the regulations that the Secretary was committed to fully implementing the Act notwithstanding the Secretary's statements in the preamble to the September 15, 1975, regulations. In order to dispel any doubt about the Secretary's commitment to carry out the intent of the Act, a new paragraph entitled Policy was added to section 36.201.

7. Section 202 was amended by the addition of new paragraphs which make clear that there is no obligation upon a tribe or tribal organization to apply for contracts under section 103 of the Act