FHWA Oversight - Contract Admin - Construction

Summary of Federal Requirements for NHS, Non-NHS and Service Contracts
Federal Requirements
SUBJECT	USC	CFR	OTHER LAWS	Applicability			REMARKS
				Construction Contracts		Non-Highway Construction or "Service Contracts"*
				NHS	Non-NHS	Non-Highway Construction or "Service Contracts"*
Prohibition Against Use of Local Hiring Preferences (FHWA-1273 - Sec 1-6)		635.117(b)		Yes	Yes	No
Prohibition Against the Use of Convict Labor (FHWA-1273 - Sec 1-6)	23 USC 114(b)	23CFR 635.117(a)		Yes	Yes**	No	**Prohibition only applies to projects on Federal-aid highways
Nondiscrimination (FHWA-1273 - Sec II)	23USC 140, 23 USC 324, 49 USC 322, 42 USC 12101-12213, 42 USC 3601-3619	23 CFR 200, 23 CFR 230D, 23 CFR 635.17 28 CFR 35 29 CFR 1630 41 CFR 60 49 CFR 21, 23 28 CFR 50.3 49 CFR 25	The Civil Rights Act of 1964, Title VI The Age Discrimination and Employment Act of 1967 The Age Discrimination of 1975 The American Disabilities Act of 1990	Yes	Yes	Yes	All contracts and subcontracts of $10,000 or more
Non-segregated Facilities (FHWA-1273 - Sec III)		23 CFR 633A 41 CFR 60.1.8	Title VI	Yes	Yes	Yes	All contracts and subcontracts of $10,000 or more
Payment of Predetermined Minimum Wage (FHWA-1273 - Sec IV)	23 USC 113, 40 USC 276 (a) & (c)	23 CFR 635, 309(f), 29 CFR 1, 3, 5	Davis-Bacon Act Copeland Anti-Kickback Act	Yes	**	**	**All Construction contracts on a Federal-aid Highway exceeding $2,000
Statements and Payrolls (FHWA-1273 - Sec V)	40 USC 276 (a) & (c), 18 USC 874	23 CFR 635.118 29 CFR 3, 5	Davis-Bacon Act Copeland Anti-Kickback Act	Yes	**	**	**Same as above
Record of Material, Supplies and Labor (FHWA 47) (FHWA-1273 - Sec VI)		23 CFR 635.126		**Yes	No	No	**Applies to NHS projects > $ 1M (excl. FA, Beaut, RR etc.)
Subletting or Assigning the Contract (FHWA-1273 - Sec VII)		23 CFR 635.116		Yes	No	No
Safety: Accident Prevention (OSHA compliance) (FHWA-1273 - Sec VIII)	40 USC 333	23 CFR 635.108 29 CFR 1926	OSHA	Yes	Yes	Yes	All construction projects
False Statements Concerning Highway Projects (FHWA-1273 - Sec IX)	18 USC 1020	23 CFR 633A, 23 CFR 635.119		Yes	Yes	Yes	All construction projects
Implementation of the Clean Air Act and Federal Water Pollution Control Act (FHWA-1273 - Sec X)	33 USC 1251 42 USC 1857	23 CFR 633A 40 CFR 15		Yes	Yes	Yes	All contracts and subcontracts of $100,000 or more
Certification Regarding Debarment, Suspension, Ineligibility, and Voluntary Exclusion (FHWA-1273 - Sec X1)		23 CFR 635.112(g) 49 CFR 29		Yes	Yes	Yes	Contracts and subcontracts of $100,000 or more
Certification Regarding the Use of Contract Funds for Lobbying (FHWA-1273 - Sec X11)	49 USC 322A	23 CFR 635.112(g) 49 CFR 20 49 CFR 29		Yes	Yes	Yes	Contracts and subcontracts exceeding $100,000
Appalachian Contract Employment Preference	40 USC Appendix 201	23 CFR 633B	Appalachian Regional Development Act	**	**	**	Only APD funded contracts
Buy America	STAA Section 165 ISTEA Section 1041(a) & 1048(b)	23 CFR 635.410		Yes	Yes	**Yes	**All construction projects funded under Title 23
Disadvantaged Business Enterprise	23 USC 140(b)	23 CFR 200 & 230B, C, D 49 CFR Part 26 (DBE) 49 CFR Part 21 (Title V1)		**Yes	**Yes	**Yes	**Applicable as necessary to meet State DBE program goals
Indian Preference on Federal-aid Projects (Labor & Employment)	23 USC 140 42 USC 2000e-2i	23 CFR 635.117		**	**	**	**Any project meeting "guidance criteria (see text)
Non-Collusion Certification	23 USC 112	23 CFR 635.112(f)		Yes	Yes	No
On-the-Job Training	23 USC 140(a) & (b)	23 CFR 230A		Yes	**	**	**Projects designated by STA in setting State goals
Standardized Changed Conditions Contract Clauses	23 USC 112(e)	23 CFR 635.109		Yes	Yes	No
Drug - Free Workplace		49 CFR 29		**	**	**	DFW certification applies to direct recipients (not construction contractors)
Publicly Owned Equipment		23 CFR 635.106	OMB Circular A-87	Yes	Yes	No
Contractor Purchased Equipment for State Ownership	23 USC 302	23 CFR 140 49 CFR Part 18 49 CFR Section 18.3		Yes	Yes	No
Equipment Rental Rates		48 CFR Part 31	OMB Circular A-87 FAPG NS 23 CFR 635.120	Yes	Yes	No
Foreign Contractor and Supplier Restriction		49 CFR 30		Yes	Yes	No
Prohibition Against Convict Produced Materials	23 USC 114(b) (2)	23 CFR 635.417		Yes	**	No	** Prohibition only applies to projects on Federal-aid highways
Patented / Proprietary Products	23 USC 112	23 CFR 635.411		Yes	Yes	No
State Preference	23 USC 112	23 CFR 635.409		Yes	Yes	No
State Owned / Furnished/ Designated Materials	23 USC 112	23 CFR 635.407		Yes	Yes	No
Public Agencies in Competition with the Private Sector	23 USC 112	23 CFR 635.112(e)		Yes	Yes	No
Salvage Credits		49 CFR 18.36		Yes	Yes	No
Warranty		23 CFR 635.413		Yes	No	No
Alternate Bids		23 CFR 635.411(b)		Yes	No	No
Incentive / Disincentive Clauses		23 CFR 635.127(d,f)		Yes	No	No
Standard Specifications and Plans		23 CFR 630B		Yes	No	No
Engineer's Estimate		23 CFR 630B		Yes	No	No
Method of Construction (low bid for construction contracts)	23 USC 112(a) & (b)	23 CFR 635.104 49 CFR 18.36		Yes	Yes	No
Owner Force Account / Cost Effective Justification		23 CFR 635B		Yes	Yes	No
Bonding and Prequalification		23 CFR 635.110		Yes	Yes**	No	**See limitations in text
Advertising for Bids	23 USC 112	23 CFR 635.112(d) (e) (f) (g) (h), 49 CFR 18.36		Yes	**	No	**See limitations in text
Bid Opening and Tabulation		23 CFR 635.113(a)		Yes	**	No	**See Text
Bid Analysis and Award of Contract	23 USC 112	23 CFR 635.114		Yes	**	No	**See Text
Contract Time		23 CFR 635.121		Yes	No	No
Change Orders		23 CFR 635.120-121		Yes	No	No
Claims		23 CFR 635.124		Yes	No	No
Liquidated Damages		23 CFR 635.127		Yes	No	No
Progress Payments		23CFR 635.122		Yes	No	No
Project Supervision and Staffing	23 USC 114 & 302	23 CFR 635.105		Yes	Yes	No
Subcontracting		23 CFR 635.116		Yes	No	No
Suspension and Debarment		49 CFR 29		Yes	Yes	Yes
Termination of Contracts		23 CFR 635.125		Yes	No	No
Audits	23 USC 112(b) (2) (c)	49 CFR 18.26; and 48 CFR 31, Federal Acquisitions Regulations	OMB Circular A-133	Yes	Yes	Yes
Records Retention		49 CFR 18		Yes	Yes	Yes

*Service contracts are generally contracts which do not conform with the definition of "construction" in 23 USC 101(a)(3) and are not considered to be engineering service contracts subject to 23 CFR 172. Certain intelligent transportation system projects may be considered to be service contracts if they do not "... directly facilitate and control traffic flow" (excerpt from the definition of "construction").

*Non-highway construction contracts may include Transportation Enhancement Projects which are not located on highway right-of-way and are not linked to a Federal-aid highway project (i.e. the project would not exist without another Federal-aid project). Examples include bicycle trails, historic preservation, railroad station rehabilitation projects, etc. (See Mr. Ptak's November 12, 1996 memo.)

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This page last modified on 09/21/09