AgdaPkt 2016-03-28 Joint SA and PFA

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ATTY/AGR/2016.053/CDM SMITH REV: 03-22-16 JS Page 14 of 18 32. Cost Principles and Administrative Requirements. 32.1 Consultant agrees that the Contract Cost Principles and Procedures, 48 CFR, Federal Acquisition Regulations System, Chapter 1, Part 31.000 et seq., shall be used to determine the cost allowability of individual items. 32.2 Consultant also agrees to comply with federal procedures in accordance with 49 CFR, Part 18, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments. 32.3 Any costs for which payment has been made to Consultant that are determined by subsequent audit to be unallowable under 49 CFR, Part 18 and 48 CFR, Federal Acquisition Regulations System, Chapter 1, Part 31.000 et seq., are subject to repayment by Consultant to City. 32.4 All subcontracts in excess of $25,000 shall contain the above provisions. 33. Equipment Purchase. 33.1 Prior authorization in writing, by City’s Contract Administrator shall be required before Consultant enters into any unbudgeted purchase order, or subcontract exceeding $5,000 for supplies, equipment, or services. Consultant shall provide an evaluation of the necessity or desirability of incurring such costs. 33.2 For purchase of any item, service or consulting work not covered in Consultant’s Cost Proposal and exceeding $5,000, prior authorization by City’s Contract Administrator; three competitive quotations must be submitted with the request, or the absence of bidding must be adequately justified. 33.3 Any equipment purchased as a result of this Agreement is subject to the following: “Consultant shall maintain an inventory of all nonexpendable property. Nonexpendable property is defined as having a useful life of at least two years and an acquisition cost of $5,000 or more. If the purchased equipment needs replacement and is sold or traded in, City shall receive a proper refund or credit at the conclusion of the Agreement, or if the Agreement is terminated, Consultant may either keep the equipment and credit City in an amount equal to its fair market value, or sell such equipment at the best price obtainable at a public or private sale, in accordance with established City procedures; and credit City in an amount equal to the sales price. If Consultant elects to keep the equipment, fair market value shall be determined at Consultant’s expense, on the basis of a competent independent appraisal of such equipment. Appraisals shall be obtained from an appraiser mutually agreeable to by City and Consultant, if it is determined to sell the equipment, the terms and conditions of such sale must be approved in advance by City.” 49 CFR, Part 18 requires a credit to Federal funds when participating equipment with a fair market value greater than $5,000 is credited to the project. 33.4 All subcontracts in excess of $25,000 shall contain the above provisions. 6.1.B. - Page 16