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Electronic Code of Federal Regulations . Page 25 of 43 (ii ) A grantee or subgrantee may self-certify its procurement system , Such self-certification shall not limit the awarding agency's right to survey the system . Under a self-certification procedure , awarding agencies may wish to rely on written assurances from the grantee or subgrantee that it is complying with these standards . A grantee or subgrantee will cite specific procedures , regulations , standards , etc„ as being in compliance with these requirements and have its system available for review . (h ) Bonding requirements. For construction or facility improvement contracts or subcontracts exceeding the simplified acquisition threshold , the awarding agency may accept the bonding policy and requirements of the grantee or subgrantee provided the awarding agency has made a determination that the awarding agency's interest is adeouately protected . If such a determination has not been made , the minimum requirements shall be as follows : ( 1 ) A bid guarantee from each bidder equivalent to five percent of the bid price. The "bid guarantee" shall consist of a firm commitment such as a bid bond , certified check , or other negotiable instrument accompanying a bid as assurance that the bidder will , upon acceptance of his bid , execute such contractual documents as may be required within the time specified . (2 ) A performance bond on the part of the contractor for 900 percent of the contract price . A . "performance bond" is one executed in connection with a contract to secure fulfillment of all, the contractor's obligations under such contract , (3 ) A payment bond on the part of the contractor for 100 percent of the contract price . A "payment bond" is one executed in connection with a contract to assure payment as required by law of all persons supplying labor and material in the execution of the work provided for in the contract . (i ) Contract provisions. A grantee's and subgrantee' s contracts must contain provisions in paragraph ( i ) of this section . Federal agencies are permitted to require changes , remedies , changed conditions , access and records retention , suspension of work, and other clauses approved by the Office of Federal Procurement Policy. ( 1 ) Administrative , contractual , or legal remedies in instances where contractors violate or breach contract terms , and provide for such sanctions and penalties as may be appropriate . ( Contracts more than the simplified acquisition threshold ) (2 ) Termination for cause and for convenience by the grantee or subgrantee including the manner by which it will be effected and the basis for settlement . (All contracts in excess of $ 10 , 000 ) (3) Compliance with Executive Order 11246 of September 24 , 1965 ; entitled "Equal Employment Opportunity ," as amended by Executive Order 11375 of October 13 , 1967 , and as supplemented in Department of Labor regulations (41 CFR chapter 60 ) . (All construction contracts awarded in excess of $10 ,000 by grantees and their contractors or subgrantees ) (4) Compliance with the Copeland "Anti-Kickback" Act (1 B U . S . C . 874) as supplemented in Department of Labor regulations (29 GFR part 3) . (All contracts and subgrants for construction or repair) (5 ) Compliance with the Davis-Bacon Act (40 U , S . C . 276a to 276@-7) as supplemented by Department of Labor regulations (29 CFR part 5 ) . ( Construction contracts in excess of $2000 awarded by grantees and subgrantees when required by Federal grant program legislation ) (6) Compliance with Sections 103 and 107 of the Contract Work Hours and Safety Standards Act (40 U . S .C . 327-330) as supplemented by Department of Labor regulations (29 CFR part 5) . ( Construction contracts awarded by grantees and subgrantees in excess of $2000 , and in excess of $2500 for other contracts which involve the employment of mechanics or laborers) ( 7) Notice of awarding agency requirements and regulations pertaining to reporting . (8) Notice of awarding agency requirements and regulations pertaining to patent rights with respect to any discovery or Invention which arises or is developed in the course of or under such contract. ( 9) Awarding agency requirements and regulations pertaining to copyrights and rights in data , ( 10 ) Access by the grantee , the subgrantee , the Federal grantor agency , the Comptroller General of the United States , or any of their duly authorized representatives to any books , documents , papers , and http : //ecfr . gpoaccess. gov/cgi/t/text/text-idx9c=cefr& sld=b65eO2ac5l c4d8ab42b4f6l9e4cf4 , . , 7/ 16/2008