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bursement (paragraph 2a) is determined to provide adequate information to meet their needs, except that a final Financial Status Report shall be required at the completion of the grant when the Request for Advance or Reimbursement form is used only for ad

vances.

(2) The Bureau shall prescribe whether the report shall be on a cash or accrual basis. If the Bureau requires accrual information and the grantee's accounting records are not normally kept on the accrual basis, the grantee should develop such information through an analysis of the documentation on hand or on the basis of best estimates.

(3) The grant agreement shall determine the frequency of the Financial Status Report for each grant program considering the size and complexity of the particular program. However, the report shall not be required more frequently than quarterly or less frequently than annually. Also, s final report shall be required at the completion of the grant.

(4) The original and two copies of the Pinancial Status Report shall be submitted 30 days after the end of each specified reporting period. In addition, final reports shall be submitted 90 days after the end of the grant period or the completion of the project or program. Extensions to reporting due dates may be approved when requested by the grantee.

b. Report of federal cash transactions. (1) When funds are advanced to grantees through letters of credit or with Treasury checks, each grantee shall submit a report of Federal Cash Transactions. The Bureau shall use this report to monitor cash advanced to grantees and to obtain disbursement or outlay information for each grant or project from the grantees.

(2) The grant agreement may require forecasts of Federal cash requirements in the Remarks section of the report.

(3) When practical and deemed necessary, the Bureau may require grantees to report in the Remarks section the amount of cash in excess of three days' requirements in the hands of subgrantees or other secondary recipients and to provide short narrative explanations of actions taken by the grantees to reduce the excess balancea.

(4) The Bureau shall accept the identical information from the grantees in a machineusable format in lieu of the Report of Federal Cash Transactions

(5) Grantees shall submit the original and two copies of the Report of Federal Cash Transactions no later than 15 working days following the end of each quarter. For those grantees receiving annual grants totalling one million dollars or more, the Bureau shall require a monthly report.

(6) The Bureau shall waive the requirement for submission of a Report of Federal Cash Transactions when monthly advances do not exceed $10,000 per grantee provided that such advances are monitored through other forms contained in this Appendix or the grantee's accounting controls are adequate to minimize excessive Federal advances.

2. Except as noted below, only the following forms will be authorized for the grantees in requesting advances and reimbursements. a. Request for advance or reimbursement. (1) The "Request for Advance or Reimbursement" form is the standard form for all nonconstruction grant programs when letters of credit or predetermined automatic advance methods are not used. The Bureau, however, has the option of using this form for construction programs in lieu of an "Outlay Report and Request for Reimbursement for Construction Programs" (paragraph 2b) and shall specify in the grant agreement.

(2) Grantees shall be authorized to submit requests for advances or reimbursement

PROPOSED RULES

at least monthly when letters of credit are not used. Grantees shall submit the original and two copies of a Request for Advance or Reimbursement.

b. Outlay Report and Request for Reim(1) bursement for Construction Program. The "Outlay Report and Request for Reimbursement for Construction Programa" form is the standard format to be used for refor construction questing reimbursement programs. The Bureau may, however, have the option of substituting a "Request for Advance or Reimbursement" form (paragraph 2a) in lieu of this form when the Bureau determines that the former provides adequate information to meet its needs as stated in the grant agreement.

(2) Grantees shall be authorized to submit requests for reimbursement at least monthly when letters of credit are not used. Grantees shall submit the original and two copies of an "Outlay Report and Request for Reimbursement for Construction Programs" form. 3. When the Bureau needs additional information in using these forms, the following shall be observed:

a. When necessary to comply with future legislative requirements, the Bureau shall issue instructions to require grantees to Resubmit such information under the marks section of the reports.

b. When necessary to meet specific program needs, the Bureau shall submit the proposed reporting requirements to the General Services Administration for approval under the exception provision of this Appendix.

c. The Bureau, in obtaining information as in paragraphs a and b above, must also comply with report clearance requirements of the Office of Management and Budget Circular No. A-40, as revised.

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(a) The application process for public school construction contracts under Section 204 of Pub. L. 93-638 is given in 20 U.S.C. 631-645 and 45 CFR 114. The application process is administered by and is the responsibility of the Commissioner of Education. The Commissioner of Indian Affairs participates with the Commissioner of Education in preparation of programs, cost estimates and other supplemental data which are part of the application and national priority index. The Commissioner of Education furnishes the national priority index to the Bureau at the start of each fiscal year.

(b) The Bureau requests and receives funding for acquisition of sites and for architectural-engineering design, facilities construction and equipment for the program. Funds are allocated to proj, ects by the Bureau on the basis of funding priorities as established by the Commissioner of Education. A contract is negotiated in accordance with the approved program by a Bureau contracting officer with the applicant for the acquisition of sites and for the design, construction and purchase of equipment to provide educational facilities meeting standards of construction given in Pub. L. 81-815.

§ 407.3 Definitions.

As used in this Part:

(a) "ADM" means average dally membership which is the aggregate of the sums of the days of membership of each child in the school divided by the number of days school was in session. Only days in which pupils were under the guidance and direction of teachers in the teaching process will be considered days in session.

(b) "Bureau" means the Bureau of Indian Affairs.

(c) "Commissioner of Education" means the United States Commissioner of Education, Department of Health, Education, and Welfare.

(d) "Commissioner of Indian Affairs" means the Commissioner of Indian Affairs, Department of the Interior.

(e) "Contractor" means an applicant who has been awarded a contract under this Part.

FEDERAL REGISTER, VOL 40, NO 172-THURSDAY, SEPTEMBER 4, 1975

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(D) "Days" means calendar days. t (g) "Economic enterprise" means any commercial, industrial, agricultural, or business activity that is at least 51 percent Indian owned, established or organized for the purpose of profit.

(h) "Existing school facilities" means all facilities constructed as school buildings and used continuously for classroom purposes. Excluded are basement rooms, hallways, or other space, the use of which for school purposes (in view of the character, inaccessibility or other equally cogent reasons) seriously restricts the educational objective, or has impaired or will Impair the health or safety of the school children

(1) "Indian" means a person who is a member of an Indian tribe.

(1) "Indian tribe" means any Indian Tribe, Band, Nation, Rancheria, Pueblo, Colony, or Community, including any Alaska Native village or regional or village corporation as defined in or established pursuant to the Alaska Native Claims Settlement Act (85 Stat. 688) which is recognized as eligible by the Becretary for the special programs and services provided by the Secretary to Indians because of their status as Indians.

(k) "Initial equipment" means any movable equipment necessary and appropriate to equip minimum school facilities. Such term does not include equipment purchased to replace any equipment which is obsolete or worn out and which was purchased with funds under Pub. L. 81-815 or Pub. L. 93-638.

"Minimum school facilities" means classroom and auxillary rooms and initial equipment necessary to operate an approved educational program for the membership of the school at normal capacity in accordance with the criteria established by the State in which the facilities are to be located.

(m) PL. 81-815" means the Act of September 23, 1950 (PL. 81-815, 72 Stat. 548), as amended.

(n) "PL 93-638" means the Indian Self-Determination and Education Assistance Act (PL. 93-638, 88 Stat. 2203). (o) "School district" or "local education agency" means that subdivision of the State which contains the public elementary and secondary educational institutions providing educational services and is controlled by a duly elected board, commission or similarly constituted assembly.

(p) "Secretary" means the Secretary of the Interior.

(q) "State" means a State of the United States of America or any political subdivision of a State.

(r) "State education agency" means the State Board of Education or other agency or office primarily responsible for supervision by the State of public elementary and secondary schools or, if there is no such office or agency, an office or agency designated by the Governor or by State law.

§ 407.4 Revision or amendment of reg. ulations.

Before revising or amending the regulations in this Part, the Commissioner

PROPOSED RULES

of Indian Affairs shall take the follow- $407.13 Application procedure for ing 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) Publish any proposed revisions or amendments in the FEDERAL REGISTER 25 proposed rulemaking to provide adequate notice to, and receive comments from, all interested parties.

(c) 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.

Subpart B-Application Process

§ 407.11 Eligible applicants.

(a) Any State education agency or school district may apply for a contract with the Bureau to assist the agency or district in acquiring sites for, or in constructing, acquiring, or renovating, facilities (including all necessary equipment) in school districts on or adjacent to or in close proximity to any Indian reservation or other lands held in trust by the United States for Indians if the facilities are necessary for educating Indians residing on any such reservation or lands.

(b) The project for which the applicant is requesting funding must meet the eligibility requirements under subsections (a) and (b) of section 14 of Pub. L. 81-815.

§ 407.12 Consultation with Indians.

(a) Except where there is a majority of Indians on an elected public school board, the Commissioner of Indian Affairs shall consult with the local public school officials and the tribal governing body (s) of the local Indian tribe(s) affected before the application for funding public school construction is submitted to the Commissioner of Education.

(b) This requirement will be deemed to be met unless the official tribal governing body (s) of the Indian tribe(s) to be benefited by the application notify the Commissioner of Education, in writing. within 60 days after the date of the consultation that the tribe(s) disapprove the application. The notice of disapproval must give specific stated objections to the application. A copy of the notice of disapproval shall be delivered or mailed to the Commissioner of Indian Affairs at the same time as the notice is delivered or mailed to the Commissioner of Education.

(c) After being notified that the tribe(s) disapproved a proposed application, the Commissioner of Indian Affairs or his designated representatives shall meet with tribal and public school officials to provide assistance in resolving the stated objectives to the application. The Commissioner of Indian Affairs shall notify the Commissioner of Education 15 days in advance of the date, place, and time of such meetings and shall invite the Commissioner of Education or his representatives to attend.

placement on priority list.

(a) Applications for public school construction assistance under this Part will be submitted and processed in accordance with procedures outlined in 20 U.S.C. 631-645 and 45 CFR 114. Application forms, instructions, advice, and assistance in accordance with 20 U.S.C. 636 and 45 CFR 114.1 may be obtained from each State education agency. All questions pertaining to the preparation and filing of preapplications, applications, and request for materials should be directed to the State Representative for School Assistance, who will respond or may forward the inquiries, where appropriate, to the Regional Commissioner of Education.

(b) Section 204 (b) of Pub. L. 93-638 assigns responsibility for the application processing, determination of eligibility and establishment of project priority to the Commissioner of Education. Such application and review and determination processes includes the following:

(1) Field and site review by the Commissioner of Education assisted by the

Commissioner of Indian Affairs to determine:

(1) Tentative cost estimate for budget purposes. The Commissioner of Indian Affairs or his representative will assist the Commissioner of Education in conducting the on-site inspection to determine which buildings need to be retained, demolished or remodeled and to gather initial information required for development of the planning document. From this information, a tentative cost estimate for design, construction, and equipment will be made for budget purposes in cooperation with the applicant.

(1) Equal quality and standard of education. While assisting in the on-site inspection, the Commissioner of Indian Affairs or his representative must determine whether the quality and standard of education (including facilities and auxiliary services) for Indian students enrolled in the school are at least equal to that provided all other students from resources, other than resources provided under this Part, which are available to

the local school district. If it is determined that the quality and standard of education for Indian students is not at least equal to that given all other students enrolled in the schools, the Commissioner of Indian Affairs or his representative shall recommend that the project not be placed on the priority list. Such a project will not be placed on the Bureau's commitment-to-fund list which is prepared under § 407.15.

(2) Discussion and consultation with State and local education agencies to determine the exact nature of the project to be constructed, including existing structure renovation or replacement.

(3) Presentation of program development for review and approval by the State and/or local education representatives and a current and updated project cost estimate.

(c) The Commissioner of Indian Affairs participates in the application process by furnishing technical assistance to

FEDERAL REGISTER, VOL. 40, NO. 172-THURSDAY, SEPTEMBER 4, 1975

the Commissioner of Education. The Commissioner of Indian Affairs insures consultation with Indians and assists with the preparation of the program, cost estimates, etc. as part of the data needed in order for the Commissioner of Education to prepare the priority listing of eligible applicants.

(d) The projects will be ranked by priority based on criteria established by the Commissioner of Education as given in 45 CFR 114.16.

§ 407.14 Submitting priority list to Bureau.

Pursuant to Section 204 (b) of Pub. L. 93-638, a list of public school projects eligible for funding under this Part shall be submitted to the Commissioner of Indian Affairs by the Commissioner of Education at the beginning of each fiscal year.

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(a) When the Commissioner of Indian Affairs receives the priority list from the Commissioner of Education, the Commissioner of Indian Affairs will place the project highest on the priority list at the top of a commitment-to-fund list. Projects will be added to the commitment-to-fund list in the same order as they are on the priority list. Each project will be added to the commitment-tofund list as long as the total of the tentative cost estimates is less than the amount of funds appropriated for public school construction under this Part for the new fiscal year. However, a project shall not be placed on the commitmentto-fund list if the Commissioner of Indian Affairs or his representative has determined under § 407.13(b) (1) (i) that the quality and standard of education for Indian students enrolled in schools are not at least equal to that provided all other students from resources, other than resources provided under this Part, which are available to the local school district.

the

(b) Each applicant will be notified in writing when the project has been placed on the commitment-to-fund list.

§ 407.16 Negotiating a contract.

When a project has been placed on the commitment-to-fund list, a contract will be negotiated by a Bureau contracting officer with the applicant. The contract will be developed in accordance with the regulations in 41 CFR 1 as supplemented by 41 CFR 14 and 41 CFR 14H, except 41 CFR Part 14H-70

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PROPOSED RULES

(e) No funds from any contract under this Part shall be made available by any Federal agency directly to other than public agencies. However, school districts and State education agencies assisted by this Part may use funds provided under this Part to contract for necessary services with any appropriate individual, organization, or corporation.

(d) Funds approved for public school construction under this Part may not exceed the Federal share of the total cost of the proposed school facilities, as such facilities are defined within the meaning of Pub. L. 81-815, to serve both Indian and non-Indian children, with the definition of children to be as prescribed by Pub. L. 81-815.

(e) When non-Federal funds are involved, a local school district shall have 120 days from receipt of the notice that the project has been placed on the commitment-to-fund list to assemble the funds from local and/or State sources before the contract negotiations are completed. An extension may be granted by the Commissioner of Indian Affairs for unusual circumstances.

Subpart C-General Contract
Requirements

§ 407.21

Costs included in contracts.

A contract with a school district under this Part may include costs for architectural design, site acquisition, facilities construction (including site development and supervision), and equipment in accordance with the approved project description.

§ 407.22 Architectural design.

(a) Drawings and specifications for a project shall comply with such Federal, State, and local laws, codes, ordinances and regulations pertaining to standards of construction and safety requirements, as may be applicable.

[16 Comp. Gen. 948 (1937)]

(b) Local education agencies shall give due consideration to excellence of architecture and design when constructing minimum school facilities under this Part.

(c) An Architect/Engineer shall be selected by the contractor to prepare the plans and specifications with the advice and assistance of the Commissioner of Indian Affairs who shall counsel the contractor with respect to professional qualifications and performance history of firms in order that the best qualified firm be selected. No Architect/Engineer agreement involving the expenditures of Federal funds shall be entered into by the contractor until the Commissioner of Indian Affairs has reviewed such agreement.

(d) The drawings and specifications will conform to the project description as shown in the completed application, or as modified by approved revisions.

(e) The drawings and specifications will be sent to the Commissioner of Education for review to ensure that the approved program is followed. The drawings and specifications will be reviewed

with the tribe to obtain its approval.

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After approval by the State and other regulatory agencies, the final drawings and specifications will be reviewed and approved by the Bureau for structural and safety adequacy, educational functionality and conformity with the project description.

§ 407.23 Facilities construction.

The contractor usually bids, awards and administers the construction contract. The Commissioner of Indian Affairs will assist in preconstruction and construction activities to assure conformity with the requirements of Pub. L. 93-638. Approval of all proposed preconstruction documents will be obtained from the Commissioner of Indian Affairs. Assistance prior to the preparation of these and similar documents will be provided upon request. In this connection, the Commissioner of Indian Affairs may suggest a preliminary conference with the project architect and others if that seems desirable. The Bureau shall make interim inspections and audits during construction and participate in the final acceptance inspection.

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§ 407.26

Use and transfer of Government property.

(a) The use of Government-owned facilities for public school purposes may be authorized when not needed for Goyernment activities. Transfer of title to such facilities (except land) may be arranged under the provisions of the Act of June 4, 1953 (67 Stat. 41).

(b) In carrying out a contract made under this Part, the Commissioner of Indian Affairs may permit a contractor to use existing buildings, facilities, and related equipment and other personal property owned by the Bureau under terms and conditions agreed upon for their use and maintenance. The property must conform to the minimum standards established by the Occupational Safety and Health Act of 1970 (84 Stat. 1590), as amended (29 U.S.C. 651).

(c) Use of Government property is subject to the following conditions:

(1) When nonexpendable Government property is turned over to public school authorities under a use permit, the permittee shall insure such property against damage by flood, fire, rain, windstorm, vandalism, snow, and tornado in amounts and with companies satisfactory to the Bureau officer in charge of the property. In case of damage or destruction of the property by flood, fire, rain, windstorm, vandalism, snow or tornado, the insurance money collected shall be expended only for repair or replacement of prop

FEDERAL REGISTER, VOL. 40, NO. 172-THURSDAY, SEPTEMBER 4, 1975

41024

erty. Otherwise, insurance proceeds shall § 407.30 be paid to the Bureau.

(2) If the public school authority is self-insured and can present evidence of that fact to the Commissioner of Indian Affairs, Insurance for lost or damaged property will not be required. However, the public school authority will be responsible for replacement of such lost or damaged property at no cost to the Government or for paying the Government enough to replace the property.

(3) The permittee shall maintain the property in a reasonable state of repair consistent with the intended use and educational purposes.

§ 407.27 Wage and labor standards.

All laborers and mechanics employed by contractors or subcontractors in constructing, altering, or repairing buildings or other facilities in connection with contracts under this Part shall be paid wages not less than those on similar construction in the locality as determined by the Secretary of Labor in accordance with the Davis-Bacon Act of March 3, 1931 (46 Stat. 1494), as amended.

§ 407.28 Indian preference.

(a) Any contract made by the Bureau with a State or school district shall provide that the contractor shall, to the greatest extent feasible, give preference in employment and training to Indians.

(b) Any contract made by the Bureau with a State or school district shall provide that the contractor shall, to the greatest extent feasible, give preference in the award of subcontracts to Indian organizations and to Indian-owned economic enterprises.

(c) All subcontractors employed by the contractor shall, to the greatest extent feasible, give preference to Indians for employment and training and shall be required to include in their bid submission a plan to achieve maximum use of Indian personnel.

§ 407.29 Liability and motor vehicle in

surance.

(a) States and school districts shall obtain public liability and motor vehicle insurance under contracts entered into with the Bureau under this Part. However, where the Bureau contracting officer determines that the risk of death. personal injury or property damage under the contract is small and that the time and cost of procuring the insurance is great in relation to the risk, the contract may be exempted from this requirement.

(b) Notwithstanding paragraph (a) of this section, any contract which requires or authorizes, either expressly or by implication, the use of motor vehicles must contain a provision requiring the State or school district to provide liability insurance, regardless of how small the risk.

(c) If the State or public school authority is self-insured and can present evidence of that fact to the Commissioner of Indian Affairs, liability and motor vehicle insurance will not be required.

PROPOSED RULES

Recordkeeping.

A contractor will be required to develop and maintain a recordkeeping system which will:

(a) Fully reflect all financial transactions involving the receipt and expenditure of funds provided under the contract in a manner which will provide accurate, current and complete disclosure of financial status; correlation with budget or allowable cost schedules; and clear audit facilitating data.

(b) Reflect the amounts and sources of funds other than Bureau contract funds which may be included in the construction project.

(c) Provide for the creation, maintenance and safeguarding of records of lasting value.

§ 407.31

Audit and inspection.

(a) During the term of a contract under this Part and for three years after the project or undertaking is completed, the Comptroller General and the Secretary, or any of their duly authorized representatives, shall have access, for audit and examination purposes, to any of the contractor's books, documents, papers, and records which, in their opinion, may be related or pertinent to the contract or any subcontract.

(b) The contractor will be responsible for maintaining all documents such as invoices, purchase orders, cancelled checks, balance sheets and all other records relating to financial transactions in a manner which will facilitate auditing. The contractor will be responsible for maintaining flies of correspondence and other documents relating to the contract properly separated from general records or cross-referenced to general files.

(c) The contractor receiving funds under this Part shall be primarily responsible for contract compliance.

(d) The records involved in any claim or expenditure that has been questioned shall be further maintained until final determination has been made on the questioned expenditure.

(e) All contracts, reports, budgets, budget estimates, plans, and other documents pertaining to administration of the contract shall be made available by the contractor. The contractor shall provide, free of charge, single copies of such documents upon request.

§ 407.32 Freedom of information.

(a) Unless otherwise required by law, the Bureau shall not place restrictions on contractors which will limit public access to the contractor's records except

when records must remain confidential.

(b) A contractor under this Part shall make all reports and information concerning the contract available to the Indian people which the contract affects. Reports and information may be withheld from disclosure only when both of the following conditions exist:

(1) The reports and information fall within one of the following exempt categories:

(1) Specifically required by statute or Executive Order to be kept secret.

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(1) Commercial or financial information obtained from a person or firm on a privileged or confidential basis.

(i) Personnel, medical, and similar files where disclosure would be a clearly unwarranted invasion of personal privacy.

(iv) Geological and geophysical information and data concerning wells.

(2) Disclosure is prohibited by statute or Executive Order or sound grounds exist for using the exemption given in paragraph (b) (1) of this section.

(c) A request to inspect or copy reports and information shall be in writing and must reasonably describe the reports and information requested. The request may be delivered or mailed to the contractor. Within ten working days after receiving the request, the contractor shall determine whether to grant or deny the request. The requester shall be notified immediately of the determination.

(d) The time limit for making a determination may be extended up to an additional ten working days for good reason. The requester shall be notified in writing of the extension, reasons for the extension, and the date on which the determination is expected to be made. § 407.33

Reporting.

(a) A contractor under this Part shall make a detailed report to the Commisstoner of Indian Affairs after construction is completed. The report shall include, but not be limited to, an accounting of the amounts and purposes for which the contract funds were expended.

(b) The contractor shall furnish other reports when and as required by the Commissioner of Indian Affairs.

(c) A contractor under this Part shall send copies of the reports required by paragraphs (a) and (b) of this section to the tribe(s) affected by the construction at the same time as the reports are sent to the Bureau.

$407.34 Repayment of funds.

Any funds paid under a contract entered into under this Part which are not expended, obligated or used for the purposes of the contract during its term shall be returned to the Bureau. $407.35 Penalties.

If any officer, director, agent, or employee of, or connected with, any contractor or subcontractor under this Part embezzles, willfully misapplies, steals, or obtains by fraud any of the funds or property connected with the contract or subcontract, he shall be subject to the following penalties:

(a) If the amount involved does not exceed $100, he shall be fined not more than $1,000 or imprisoned not more than one year, or both.

(b) If the amount involved exceeds $100, he shall be fined not more than $10,000 or imprisoned for not more than two years, or both.

§ 407.36 Applicable procurement regulations.

States or school districts wanting to contract with the Bureau under this Part

64-882 O 76 - 5

FEDERAL REGISTER, VOL. 40, NO. 172-THURSDAY, SEPTEMBER 4, 1975

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must comply with the applicable require-
ments in the Federal Procurement Regu-
lations (41 CFR 1), as supplemented by
the Interior Procurement Regulations
(41 CFR 14) and the Bureau of Indian
Affairs Procurement Regulations (41 CFR
14H), except 41 CFR Part 14H-70.

Subpart D-Contract Revision or
Cancellation

§ 407.41

ment.

Contract revision or amend

Any contract made under this Part may be revised or amended as deemed necessary to carry out the purposes of the contract. A contractor may make a written request for a revision or amendment of a contract to the Bureau contracting officer.

§ 407.42 Cancelling a contract for cause. (a) Any contract entered into under this Part may be cancelled for cause when the contractor fails to perform the work called for under the contract.

(b) Before cancelling the contract, the Bureau will advise the contractor in writing of the following:

(1) The reasons why the Bureau is considering cancelling the contract.

(2) That the contractor will be given an opportunity to bring its work up to an acceptable level.

(c) If the contractor does not overcome the deficiencies in its contract performance, the Bureau shall cancel the contract for cause. The Bureau will notify the contractor, in writing, of the cancellation. The notice shall give the reasons for the cancellation and the right of the contractor to appeal under Subpart C of 43 CFR Part 4.

(d) When a contract is cancelled for cause, the Bureau will either perform the work with its own forces or by another contract, as appropriate.

Subpart E-Appeals 407.51 Contract appeal.

A contractor may appeal an adverse decision or action of a Bureau contracting officer regarding a contract under this Part as provided in Subpart C of 43 CFR Part 4.

§ 407.52 Appeal from decision to cancel contract for cause.

A contractor may appeal the decision of a Bureau official to cancel a contract under this Part for cause. The appeal shall be made as provided in subpart C of 43 CFR Part 4.

407.53 Other appeals.

Any decision or action taken by a Bureau official under this Part, other than those given in § 407.51 and 407.52, may be appealed only as provided in Part 2 of this chapter.

MORRIS THOMPSON, Commissioner of Indian Affairs. [FB Doc.75-22938 Piled 9-3-75;8:45 am]

PROPOSED RULES

[41 CFR Part 14H-70]
CONTRACTING WITH INDIAN ORGANIZA-
TIONS PURSUANT TO THE INDIAN
SELF-DETERMINATION AND EDUCA
TION ASSISTANCE ACT

AUGUST 26, 1975.

Chapter 14H of 41 CFR was published
beginning on page 13659 of the Au-
gust 26, 1969, FEDERAL REGISTER (38 FR
and
13659)
subsequently amended.
Chapter 14H contains the Bureau of In-
dian Affairs Procurement Regulations
(BIAPR).

Notice is hereby given that it is pro-
posed to amend Chapter 14H of Title 41
of the Code of Federal Regulations by
adding a new Part 14H-70. This amend-
ment is proposed pursuant to the au-
thority contained in the Act of Janu-
ary 4, 1975 (Pub. L. 93-638; 88 Stat.
2203) called the Indian Self-Determina-
tion and Education Assistance Act.

The purpose of the amendment is to
consolidate in one Part all of the con-
which
tracting requirements
Indian
tribal and Alaska Native organizations
must follow in contracting with the Bu-
reau of Indian Affairs under the Indian
Self-Determination and Education As-
sistance Act. In preparing the regula-
tions in new Part 14H-70, waivers were
made of some of the standard Federal
Procurement Regulations as authorized
by Section 106(a) of the Act. Certain
requirements were waived in an attempt
to simplify contracting procedures for
Indian tribal and Alaska Native orga-
nizations. Additional waivers may be
made on a case-by-case basis as the
Commissioner considers such waivers
appropriate.

The Bureau of Indian Affairs has
sought to be responsive to the recommen-
dations of Indian and Alaska Native gov-
erning bodies who are, or have contem-
plated, operating Bureau programs un-
der contract. For some time, these groups
have been critical of the complexities in-
herent in negotiating contracts under the
standard Federal Procurement Regula-
tions. In many instances, an unfavorable
psychological climate was created that
inhibited local desires for more mean-
ingful expressions of self-determination
based on their own needs and goals.

Through experience, the Bureau of Indian Affairs and its constituents have found the standard procurement regulations to contain numerous requirements that have little if any applicability to contracts. For this reason, the Bureau has evolved what, in essence, is a set of "Indian" Procurement Regulations for dealing with tribal and Alaska Native groups as the proposed new Part 14H-70.

41023

encing regulations contained in other CFR Parts, if possible; to make the regulations as comprehensive and clear as possible; to assure that both parties to the contract know their rights, roles and responsibilities; and to remove any unnecessary or inapplicable requirements found in the standard procurement rules which would not apply to self-determination contracts with tribal organizations.

The contractual approach is one of several voluntary options available to Indian and Alaska Native governing bodies to assist them in the self-development process. Depending on their basic needs and goals, they may want to use the contract mechanism in their self-development process. If so, the proposed Part 14H-70 seeks to simplify the contracting procedure for them.

It is the policy of the Department of the Interior, whenever practicable, to afford the public an opportunity to participate in the rulemaking process. Accordingly, interested persons may submit written comments, suggestions, or objections regarding the proposed amendment to the Bureau on or before October 4, 1975, as follows:

1. By mail addressed to the Commissioner of Indian Affairs, Attention: Public Law 93-638 Task Force (Code 101A). Washington, D.C. 20245.

2. Or by hand delivery to the Commissioner of Indian Affairs, Attention: Public Law 93-638 Task Force, Room 4620, 18th and C Streets N.W., Washington, D.C.

Comments, suggestions, or objections received on or before October 4, will be considered in preparing the final regulations.

It is proposed to amend Chapter 14H of Title 41 of the Code of Federal Regulations by adding a new Part 14H-70 to read as follows:

PART 14H-70-CONTRACTING WITH IN-
DIAN ORGANIZATIONS PURSUANT TO
SELF-DETERMINATION
THE INDIAN
AND EDUCATION ASSISTANCE ACT

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These proposed regulations reflect the
Bureau's attempt to follow the recom-
mendations of Indian and Alaska Native
people to place in one Part all pertinent
contracting regulations or references to
such regulations affecting contracts with 14H-70.204
tribal organizations; to reduce refer-

Method of procurement.

Prodt.

Payment of interest on contractor's claim.

Protests to Comptroller Gen eral.

FEDERAL REGISTER, VOL 40, NO. 172-THURSDAY, SEPTEMBER 4, 1975

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