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REV: 09-14-2022 VR
<br />COST PLUS CONTRACTING PROHIBITED
<br />Cost-plus-a-percentage-of-cost (CPPC) contracts are prohibited by 2 CFR 200. The cost plus a percentage of cost and percentage of construction cost methods of
<br />contracting must never be used, including in subcontracts and third-party contracts. A cost-plus contract is one that is structured to pay TT or subcontractor their actual
<br />costs incurred, plus a fixed percent for profit or overhead.
<br />A cost-plus-a-percentage-of-cost (CPPC) contract is a contract containing some element that obligates Client or TT to pay a contractor or subcontractor an amount (in the
<br />form of either profit or cost), undetermined at the time the contract was made, to be incurred in the future, and based on a percentage of future costs. The inclusion of an
<br />overall contract ceiling price does not make these forms of contracts acceptable.
<br />This type of contract is prohibited because there is no incentive for TT or subcontractor to keep its incurred costs low. Instead, there is a reverse incentive for TT or
<br />subcontractor to continue to incur additional costs in order to continue to drive the percentage of cost up. In other words, increased spending by TT will yield higher
<br />profits. This prohibition applies to all work, regardless of the circumstances, and applies to subcontracts where the prime contract is a cost-reimbursement type contract
<br />or subject to price redetermination.
<br />DAVIS BACON AND RELATED ACTS
<br />For any contract in excess of $2,000, TT must comply with the Davis Bacon and Related Acts, and the requirements shall be applicable to any labor or mechanic work
<br />completed in connection with this contract, which fall under the Davis Bacon Act. Any work awarded under this contract is required to comply with the Davis Bacon Act
<br />(40 U.S.C. 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 CFR part 5) and with the Copeland “Anti-Kickback” Act (18 U.S.C.
<br />874; 40 U.S.C. 3145) as supplemented in Department of Labor regulations (29 CFR part 3). In accordance with the statute, TT is required to pay wages to laborers and
<br />mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, TT is required to pay wages not less
<br />than once a week.
<br />If Davis Bacon is applicable, Client will provide a copy of the current Davis Bacon Wage Decision.. TT shall submit certified payroll of TT and all subcontractors on a
<br />weekly basis in the format required by the Client. At Client’s request, TT shall make available and shall require its subcontractors to make available, copies of cancelled
<br />checks and check stubs for comparisons by the Client or its agents.
<br />Such laborers and mechanics shall be paid the appropriate wage rate and fringe benefits on the wage determination for the classification of work actually performed,
<br />without regard to skill, except as provided in 29 CFR Part 5.5(a)(4). Laborers or mechanics performing work in more than one classification may be compensated at the
<br />rate specified for each classification for the time actually worked therein: Provided that the employer's payroll records accurately set forth, the time spent in each
<br />classification in which work is performed. The wage determination (including any additional classification and wage rates conformed under 29 CFR Part 5.5(a)(1)(ii)) and
<br />the Davis Bacon poster (WH-1321) shall be posted at all times by TT and its subcontractors at the site of the work in a prominent and accessible place where it can be
<br />easily seen by the workers.
<br />Each payroll submitted shall be accompanied by a "Statement of Compliance," signed by TT or subcontractor or his or her agent who pays or supervises the payment of the
<br />persons employed under the contract and shall certify the following. The Statement of Compliance can be found on page 2 of the WH-347 form, and/or additional
<br />certifications of compliance may be required by Client. Any Statement of Compliance is subject to the penalties provided by 18 U.S.C. § 1001, namely, a fine, possible
<br />imprisonment of not more than 5 years, or both. Accordingly, the party signing the statement should have knowledge of the facts represented as true.
<br />TT must include this provision in all contracts between itself and any subcontractors in connection with the services performed under this Contract. Client shall report all
<br />suspected or reported violations to the Federal awarding agency, as applicable.
<br />DEBARMENT / SUSPENSION AND VOLUNTARY EXCLUSION
<br /> Contract meeting the definition in 2 C.F.R. § 180.220 must not be made to parties listed on the System for Award Management (SAM) Exclusion lists, in accordance with
<br />the OMB guidelines at 2 CFR 180 that implement Executive Orders 12549 (3 CFR part 1986 Comp., p. 189) and 12689 (3 CFR part 1989 Comp., p. 235), “Debarment
<br />and Suspension.” SAM Exclusions contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under
<br />statutory or regulatory authority other than Executive Order 12549.
<br />Pursuant to Executive Orders 12549 and 12689, a contract award shall not be made to parties listed on the government-wide exclusions in the System for Award
<br />Management (SAM), in accordance with the OMB guidelines at 2 CFR 180 that implement Executive Orders 12549 (3 CFR part 1986 Comp., p. 189) and 12689 (3 CFR
<br />part 1989 Comp., p. 235). SAM Exclusions contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible
<br />under statutory or regulatory authority other than Executive Order 12549. A contract award must not be made to parties listed in the SAM Exclusions. SAM exclusions can
<br />be accessed at www.sam.gov.
<br />Additionally, no contracts shall be awarded to any contractor that has been debarred, suspended, or otherwise excluded from or ineligible for participation in any federal
<br />programs, including but not limited to the Department of Health and Human Work (DHHS), Office of Inspector General (OIG) - List of Excluded Individuals & Entities
<br />(LEIE); U.S. General Services Administration (GSA) – Excluded Parties List System (EPLS); All States (50) Health & Human Work Commission Medicaid OIG Sanction
<br />List; Government Terrorist Watch List (OFAC / Patriot Act); Department of Commerce, Bureau of Industry and Security, Denied Persons List; and Department of
<br />Homeland Security, Immigration and Customs Enforcement (ICE) Most Wanted.
<br />This contract is a covered transaction for purposes of compliance with Title 2 C.F.R. parts 180 and 3000, and as such TT is required to verify that none of its principals
<br />(as defined at 2 C.F.R. § 180.995), or its affiliates (as defined at 2 C.F.R. § 180.905) are excluded (as defined at 2 C.F.R. § 180.940) or disqualified (as defined at 2 C.F.R.
<br />§ 180.935). These regulations restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for
<br />participation in Federal assistance programs and activities (See 2 C.F.R Part 200, Appendix II). TT must comply with 2 C.F.R. part 180, subpart C and 2 C.F.R. part
<br />3000, subpart C and shall include this requirement and similar certification in all contracts between itself and any subcontractors in connection with the services performed
<br />under this Contract.
<br />TT confirms that it is eligible or otherwise not disqualified or prohibited from participation in federal or state assistance programs under Executive Order 12549,
<br />Debarment and Suspension. Additionally, TT warrants that it is not debarred, suspended, or otherwise excluded from or ineligible for participation in any federal programs,
<br />including but not limited to the following: Department of Health and Human Work (DHHS), Office of Inspector General (OIG) - List of Excluded Individuals &
<br />Entities (LEIE);
<br />ATTY/AGR.2022.320/Tetra Tech (Emergency Management) (Page 14 of 17)
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