Initiating a New Sponsored Community Project

40 CFR Part 31 Requirements
All community watershed projects are subject to the uniform administrative requirements for EPA grants as detailed in the Code of Federal Regulations, Volume 40, Part 31 (40 CFR 31). Copies of this document are available on diskette in portable document format (.pdf) from the Rouge Program Office.

The 40 CFR 31 document is organized by each phase of the grant’s administration – pre-award, post-award, and after-the-grant requirements. Each community should be familiar with the document’s content and applicability to their own watershed project. Important procurement, cost, documentation, and reporting requirements as detailed in the 40 CFR 31 document are included in this Guide. However, because subgrantees are held to the same level of requirements as the main grant recipient (Wayne County), the community must comply with all 40 CFR 31 requirements during the project’s duration.

Community Project Procurement Process
Most communities will use outside services for design, construction, or implementation of their watershed projects. Administrative requirements for procurement of these services are detailed in 40 CFR 31.36.

Highlights of the 40 CFR 31.36 section are detailed below:

  Item Key Requirements 40 CFR 31

Reference

  Established Procurement Procedures May use established procedures if they comply with Section 36 requirements. 36(b)(1)
  Contract Administration System Must be in place to ensure compliance with contracts or purchase orders. 36(b)(2)
  Written Code of Standards for Employees No conflict of interest during procurement process. 36(b)(3)
  Procurement Items Avoid duplication, seek economical packages and overall approach. 36(b)(4)
  Value Engineering Where feasible for larger construction projects. 36(b)(7)
  Award Requirements Responsible contractors with ability to successfully handle contract. 36(b)(8)
Key Item Procurement Records Document procurement process: method, contract type, contractor selection/rejection, basis for contract price. 36(b)(9)
  Time & Material Contracts Use only if no other contract is suitable, must have ceiling price. Please contact the RPO before using this contract type. 36(b)(10)
  Full & Open Competition for Contracts Unreasonable requirements, unnecessary experience, noncompetitive pricing and awards, conflicts of interest, brand name specifications, other arbitrary actions are not allowed. 36(c)(1)
Key Item Geographical Preferences No local geographical preferences allowed for bid/proposal evaluations. 36(c)(2)
Key Item Procurement Selection Procedures Written selection procedures with clear description of procurement items and evaluation criteria. 36(c)(3)
  Small Purchase Procedures Obtain price/rate quotations from adequate number of qualified sources. 36(d)(1)
Key Item Sealed Bid Method Formal advertisement, award to lowest responsible bidder; preferred method for construction projects. Must have:
  • Publicly advertised invitation for bids (RFP)
  • Adequate number of suppliers
  • Defined evaluation factors with relative importance of each
  • Public opening of bids
  • Formal, documented process for evaluation and selection.
 36(d)(2)
Key Item Competitive Proposals Formal advertisement, typically used for architectural and engineering (A/E) services, uses most items from sealed bid method. Must have:
  • Publicly advertised invitation for proposals (RFP)
  • Adequate number of known suppliers
  • Defined technical evaluation factors with relative importance of each
  • Negotiated fair and reasonable compensation of selected competitor.

Communities may not:

  • Use existing contract to provide services
  • Send RFPs only to select list of service providers
  • Include unduly restrictive evaluation factors.
 36(d)(3)
  Noncompetitive Proposals Use only when competitive procedures determined inadequate, see reference for additional requirements. Contact the RPO before accepting a single bid for a project or before awarding a sole source contract. 36(d)(4)
Key Item Minority & Women Owned Business Enterprises (MBE / WBE) Grant requirement: minimum 8 percent participation. Take all necessary affirmative steps during procurement to assure MBE/WBE participation. 36(e)
    If you do not achieve 8 percent MBE/WBE participation, the RPO will require documentation detailing a community’s good faith efforts to meet this requirement.  
  Contract Cost & Price Cost/price analysis required for all procurements. Maximum fixed fee for non-sealed bid contracts is 15% of direct labor plus overhead costs. No fixed fees are allowed on other direct project costs (ODCs). 36(f)
  Document Reviews by Awarding Agency Upon request, procurement documentation available for review by EPA and the Rouge Project Office. 36(g)
  Bonding Requirements May accept bonding policy of community if determined that awarding agency is adequately protected. See specific insurance and bonding requirements in project legal document. 36(h)

Please contact the RPO for any additional information or clarifications to the project procurement requirements listed in this Guide or contained in the 40 CFR 31 document.

Frequently Asked Questions (FAQ’s)

What type of public advertisement does a community need for their project? Any specific newspapers or periodicals required for advertisement?

Can a community use a design/build contract for their project?

Can firms currently employed by the Rouge Program Office be contracted for community projects?

Other FAQ’s will be added as comments are received.

Please address all comments and suggestions about the contents of this Web page to rougeweb@co.wayne.mi.us.

The Rouge River National Wet Weather Demonstration Project is funded, in part, by the United States Environmental Protection Agency (EPA) Grants #XP995743-01, -02, -03, -04, -05, -06, -08 and C-264000-01.