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Contract Provisions Guide 33 5.2 Suggested Language The following provides a sample contract clause: “The federal government is not a party to this contract and is not subject to any obligations or liabilities to the non-federal entity, contractor, or any other party pertaining to any matter resulting from the contract.” 6. Program Fraud and False or Fraudulent Statements or Related Acts NFEs must comply with the requirements of the False Claims Act which prohibits submitting false or fraudulent claims for payment to the federal government.71 As a part of the contract with a NFE, contractors must acknowledge that 31 U.S.C. Chap. 38, regarding administrative remedies for false claims and statements,72 applies to their actions under their contract.73 6.1 Applicability FEMA recommends that contracts include a provision prohibiting making false or fraudulent claims to the federal government. 6.2 Suggested Language The following provides a sample contract clause: “The contractor acknowledges that 31 U.S.C. Chap. 38 (Administrative Remedies for False Claims and Statements) applies to the contractor’s actions pertaining to this contract.” 7.Affirmative Socioeconomic Steps For procurements under FEMA declarations and awards issued on or after November 12, 2020, all NFEs are required to take the six affirmative steps to ensure use of small and minority businesses, women’s business enterprises, and labor surplus area firms when possible. One of the six steps is to require the prime contractor, if subcontracts are to be let, to take the five other affirmative steps,74 For procurements under FEMA declarations and awards issued between December 26, 2014, and November 12, 2020, this requirement only applies to non-state entities. 7131 U.S.C. §§ 3729-3733. 72 31 U.S.C. §§ 3801-3812 (detailing the administrative remedies for false claims and statements made). 73 See DHS Standard Terms and Conditions, available at https://www.dhs.gov/publication/fy15-dhs-standard- terms-and-conditions. 74 See 2 C.F.R. § 200.321; compare 2 C.F.R. § 200.317 (2019), with 2 C.F.R. § 200.317 in Office of Management and Budget, Guidance for Grants and Agreements, 85 Fed. Reg. 49,506, 49,552 (Aug. 13, 2020). ATTY/AGR.2025.317/Wood Rodgers, Inc. (Page 70 of 77)