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Most of this content was superseded by the December 19, 2013 memo "Stewardship and Oversight Agreement Implementation Guidance"

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
Prohibition Against Use of Local Hiring Preferences
(FHWA-1273 - Sec 1-6)
 635.117(b) YesYesNo 
Prohibition Against the Use of Convict Labor
(FHWA-1273 - Sec 1-6)
23 USC 114(b)23CFR 635.117(a) YesYes**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
YesYesYesAll contracts and subcontracts of $10,000 or more
Non-segregated Facilities
(FHWA-1273 - Sec III)
 23 CFR 633A
41 CFR 60.1.8
Title VIYesYesYesAll 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 **YesNoNo**Applies to NHS projects > $ 1M (excl. FA, Beaut, RR etc.)
Subletting or Assigning the Contract
(FHWA-1273 - Sec VII)
 23 CFR 635.116 YesNoNo 
Safety: Accident Prevention (OSHA compliance) (FHWA-1273 - Sec VIII)40 USC 33323 CFR 635.108
29 CFR 1926
OSHAYesYesYesAll construction projects
False Statements Concerning Highway Projects
(FHWA-1273 - Sec IX)
18 USC 102023 CFR 633A,
23 CFR 635.119
 YesYesYesAll 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
 YesYesYesAll 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
 YesYesYesContracts and subcontracts of $100,000 or more
Certification Regarding the Use of Contract Funds for Lobbying (FHWA-1273 - Sec X11)49 USC 322A23 CFR 635.112(g)
49 CFR 20
49 CFR 29
 YesYesYesContracts and subcontracts exceeding $100,000
Appalachian Contract Employment Preference40 USC Appendix 20123 CFR 633BAppalachian Regional Development Act******Only APD funded contracts
Buy AmericaSTAA Section 165
ISTEA Section 1041(a) & 1048(b)
23 CFR 635.410 YesYes**Yes**All projects funded under Title 23
Disadvantaged Business Enterprise23 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 Certification23 USC 11223 CFR 635.112(f) YesYesNo 
On-the-Job Training23 USC 140(a) & (b)23 CFR 230A Yes******Projects designated by STA in setting State goals
Standardized Changed Conditions Contract Clauses23 USC 112(e)23 CFR 635.109 YesYesNo 
Drug - Free Workplace 49 CFR 29 ******DFW certification applies to direct recipients (not construction contractors)
Publicly Owned Equipment 23 CFR 635.106OMB Circular A-87YesYesNo 
Contractor Purchased Equipment for State Ownership23 USC 30223 CFR 140
49 CFR Part 18
49 CFR Section 18.3
 YesYesNo 
Equipment Rental Rates 48 CFR Part 31OMB Circular A-87 FAPG NS 23
CFR 635.120
YesYesNo 
Foreign Contractor and Supplier Restriction 49 CFR 30 YesYesNo 
Prohibition Against Convict Produced Materials23 USC 114(b) (2)23 CFR 635.417 Yes**No** Prohibition only applies to projects on Federal-aid highways
Patented / Proprietary Products23 USC 11223 CFR 635.411 YesYesNo 
State Preference23 USC 11223 CFR 635.409 YesYesNo 
State Owned / Furnished/
Designated Materials
23 USC 11223 CFR 635.407 YesYesNo 
Public Agencies in Competition with the Private Sector23 USC 11223 CFR 635.112(e) YesYesNo 
Salvage Credits 49 CFR 18.36 YesYesNo 
Warranty 23 CFR 635.413 YesNoNo 
Alternate Bids 23 CFR 635.411(b) YesNoNo 
Incentive / Disincentive Clauses 23 CFR 635.127(d,f) YesNoNo 
Standard Specifications and Plans 23 CFR 630B YesNoNo 
Engineer's Estimate 23 CFR 630B YesNoNo 
Method of Construction (low bid for construction contracts)23 USC 112(a) & (b)23 CFR 635.104
49 CFR 18.36
 YesYesNo 
Owner Force Account / Cost Effective Justification 23 CFR 635B YesYesNo 
Bonding and Prequalification 23 CFR 635.110 YesYes**No**See limitations in text
Advertising for Bids23 USC 11223 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 11223 CFR 635.114 Yes**No**See Text
Contract Time 23 CFR 635.121 YesNoNo 
Change Orders 23 CFR 635.120-121 YesNoNo 
Claims 23 CFR 635.124 YesNoNo 
Liquidated Damages 23 CFR 635.127 YesNoNo 
Progress Payments 23CFR 635.122 YesNoNo 
Project Supervision and Staffing23 USC 114 & 30223 CFR 635.105 YesYesNo 
Subcontracting 23 CFR 635.116 YesNoNo 
Suspension and Debarment 49 CFR 29 YesYesYes 
Termination of Contracts 23 CFR 635.125 YesNoNo 
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 YesYesYes 

*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.)

Contact

Jerry Yakowenko
Office of Program Administration
202-366-1562
E-mail Jerry

 
Updated: 03/24/2014
 

FHWA
United States Department of Transportation - Federal Highway Administration