Bid Process And Construction Contracts

Bid Process
and
Construction Contracts

1


Bid Process

2


Competitive Bidding Methods
(A) All construction contracts must be awarded on the basis of competitive bidding unless an

exception is granted thereby permitting contract negotiation. The Grantee's architect usually
prepares the bidding documents. Public notice must be given inviting all interested bidders to submit
a bid. Prospective bidders may be contacted asking for their bids, however, public notice is necessary
so that all local contractors have the opportunity to submit bids.
(B) A bid bond is required from each bidder in the amount of 5 percent of the bid price as assurance
that the bidder will, upon acceptance of the bid, execute the required contract documents within the
time specified.
(C) The construction contract will be awarded based on the contract cost, and all conditions listed in
the "Invitation for Bid."
(D) If advertising does not provide a satisfactory bid in the opinion of the Grantee and RD, the
Grantee shall reject all bids and will then be free to negotiate with bidders or anyone else to obtain a
satisfactory contract. The following conditions must be met:
(1) The State Director determines that the original competitive bid process was
handled in a satisfactory manner and that there is
no advantage to advertising for competitive
bid again.

(2) The requirements of paragraph 1924.13 (e)(1)(vii) Exception to Competitive Bidding
are met.

3


Obtaining Bids and Selecting A Contractor
The grantee will select a contractor and negotiate a contract or contact several contractors and
request each to submit a bid. When a price has already been negotiated, the grantee, contractor,
local RD Specialist, Area Director or other appropriate Rural Development official will review the
proposed contract. If the contractor is qualified to perform the development and provide a warranty
of the work and the price compares favorably with the cost of similar construction in the area,
further negotiation is unnecessary. If the Rural Development official determines the price is too high
or otherwise unreasonable, the Grantee will be requested to negotiate further with the contractor. If
a reasonable price cannot be negotiated or if the contractor is not qualified, the applicant will be
requested to obtain competitive bids. When an applicant has a proposed development plan and no
contractor in mind, competitive bidding will be encouraged. The applicant should obtain bids from as
many qualified contractors, dealers or tradespeople as feasible depending on the method and type of
construction. If the award of the contract is by competitive bidding, Form RD 1924-5, "Invitation
for Bid” or another similar invitation bid form containing the requirements of Subpart E of Part
1901 may be used. All contractors from whom bids are requested should be informed of all
conditions of the contract including the time and place of opening bids. Conditions shall not be
established which would give preference to a specific bidder or type of bidder. When applicable,
copies of Forms RD 1924-6 “Construction Contract” and RD 400- 6, "Compliance Statement," also
should be provided to the prospective bidders. The Grantee, with the assistance of the local RD
Specialist or Area Director will consider the amount of the bids or proposals, and all conditions
which were listed in the "Invitation for Bid." On the basis of these considerations the Grantee will
select and notify the lowest responsible bidder.
4

SELECTING THE RIGHT SUBCONTRACTOR
The grantee and participant together are responsible for obtaining bids and referrals from
subcontractors. In most cases the grantee will coordinate all of the work involved in receiving the bids
and referrals and then will relay the information to the participants to determine who is the low bidder
and if the bidder is credible. The grantee should not be confused as being a general contractor; their
acting role is just as a coordinator, organizer, and advisor to the participants. Before the bidding
process can start, the grantee or the participant must provide the subcontractors, that are going to be
bidding the job, a complete copy of the blueprints and specifications and any other data involved in the
subcontracted task. For competitive bidding to be a valid procedure all competitors must bid under
exactly the same conditions for an identical package of work. There are not any laws stating that
certain contractors cannot perform specified work other than having the proper license. So be very
careful in qualifying a subcontractor by local directories. After obtaining bids from potential
subcontractors the grantee should schedule interviews with them to determine their quality of
performance and background. Make sure references are acquired from other jobs that similar work
was performed. Once a subcontractor is selected each self-help family must sign a construction
contract with each subcontractor. Example RD Form 1924-6 “Construction Contract”. The contract
should also list the grantee’s requirements that the subcontractor must comply with and specify what
conditions under which payment may be withheld or another contractor substituted. After examining
the drawings and specifications some subcontractors may want to visit the jobsite.

5


SELECTING THE RIGHT SUBCONTRACTOR (cont.)
When submitting a task for bid to subcontractors always tell them the location, availability of electric,
water, telephone, local ordinances, storage of equipment, delivery information, topography and drainage,
etc. Give subcontractors access to all available information concerning the project. Always make sure that
you give the subcontractor a firm date by which you need the bid. All too often subcontractors wait until
the last minute before giving an estimate. Make sure the subcontractor is aware of the length of the

project so they can guarantee pricing accordingly. The subcontractors’ work should be inspected
carefully. Errors or changes can be handled with little trouble and time if dealt with the right away.
Subcontractors are sometimes requested by owner/builders to grant extensions of the acceptance time.
The subcontractor is generally willing to oblige, but sometimes in its eagerness to get the job they will
agree to such an extension without giving the matter sufficient consideration. Such action means that the
completion date of the project
will be set back by a length of time equal to the extension of the acceptance period. Due to increased wage
and material costs a subcontractor may not be willing to extend the original acceptance period. When
increased costs are anticipated and the subcontractor does not wish to absorb them, they should quote the
required additional amount in exchange for extending the acceptance period. Problems with
subcontractors usually evolve from lack of communication. Make sure that contracts and payment
schedules have been clearly defined. If the subcontractor is not fulfilling the contract or the work is of
poor quality and all attempts to work things out have failed then you have no choice but to release the
subcontractor from the job. Hopefully having to terminate a subcontractor is the last resort, particularly
since replacing them after work has begun can be even more difficult. Obtaining bids and choosing the
right subcontractor can be quite an experience. Good preparation is the answer to a successful project.
6


Contract Documents
Contract documents will conform with recognized professional practices. Such contract documents
will contain substantially the following:
Invitation for Bid Form RD 1924-5
Information for Bidders
Bid
Notice of Award
Agreement (Construction Contract Form RD 1924-6)
General Conditions
Supplemental General Conditions
Drawings and Specifications

Contract Change Order (Form RD 1924-7)
Partial Payment Estimate (Form RD 1924-18)
Builder's Warranty (Form RD 1924-19)
Notice “A” (Setup for Family Accounts with Vendors/Suppliers)
Notice “B” (Close family accounts with Vendors/Suppliers)
7


Summary of Contract Language
Substitution of term "architect" for "engineer" may be necessary on some of the forms. Other
modifications may be necessary in some cases to conform to the nature and extent of the project. All
such contract documents and related items will be concurred with by the State Director, with the
assistance of OGC prior to the release of invitations to bid.
All negotiated contracts shall include a provision to the effect that the Grantee, USDA, the
Comptroller General of the United States, or any of their duly authorized representatives, shall have
access to any books, documents, papers, and records of the contractor which are directly pertinent to a
specific Federal loan program for the purpose of making audit, examination, excerpts, and
transcriptions.
All contracts shall include a provision for compliance with the Copeland "Anti-Kickback" act (18
U.S.C. 874) as supplemented in Department of Labor regulations (29 CFR Part 3). This Act prohibits
anyone from inducing any person in connection with the construction to give up any part of the
compensation to which the person is otherwise entitled.
All contracts will contain a certification by the applicant indicating that there is not now nor will
there be an identity of interest between the applicant and any of the following: Contractor, architect,
engineer, attorney, subcontractors, material suppliers, equipment lessors, or any of their members,
directors, officers, stockholders, partners, or beneficiaries unless specifically identified to Rural
Development in writing prior to the award of the contract. All contracts must also indicate that when
any identity of interest exists or comes into being, the contractor agrees to have construction costs as
reported to Rural Development on Form 1924-13, "Estimate and Certificate of Mutual Cost"- audited
by a Certified Public Accountant (CPA) or Licensed Public Accountant (LPA) licensed prior to

8


Summary of Contract Language (cont.)
December 31, 1970, who will provide an opinion as to whether the Form RD 1924-13 presents fairly the costs
of construction in conformity with eligible construction costs as prescribed in Rural Development regulations.
All contracts on any form other than Form RD 1924-6 must contain the language of clause (D) of Form RD
1924-6, which is available in all Rural Development offices. The language of clause (D) of Form RD 1924-6
sets forth the Notice of Requirement for Affirmative Action to Ensure Equal Employment Opportunity
required by Executive Order 11246, the Equal Opportunity clause published at 41 CFR 60-1.4 (a) and (b), and
the Standard Federal Equal Employment Opportunity Construction Contract Specifications required by
Executive Order 11246. For contract forms other than Form RD 1924-6, Form AD 767, "Equal Employment
Opportunity Contract Compliance Notices," which can be obtained from the Finance Office, should be
attached and made a part of the contract.
All contracts will contain a provision that they are not in full force and effect until concurred with by the
State Director or the State Director's delegate, in writing. Therefore, before loan closing or before the start of
construction, whichever occurs first, the State Director or the State Director's delegate will concur in the
contract form, content, and execution if acceptable, by including the following paragraph at the end of the
contract: Rural Development, as potential lender or insurer of funds to defray the costs of this contract, are
without liability for any payments thereunder, hereby concurs in the form, content, and execution of this
contract.
Date: ___________ Grantee Authorized Representative: ________________________
Rural Development Official: ________________________________
Title:_________________________

9


∗ Mutual Self Help Sub-Contractor Selection Questionnaire
General Information

Contractor Name: _______________________________________________________________
Business Address: ______________________________________________________________
Business Phone/Fax/Email ________________________________________________________
Owners Name:_________________________________________________________________
Is this company a:

Corporation

Operator

Partnership
Joint Venture

Owner
Other

Organization
1. Are you a general contractor?

or Sub-Trade contractor?

2. How many years have you been in the construction business?
3. How long under the present name?

years.

4. Have you worked under a different name? If so, please list name, dates and places where business was conducted?
____________________________________________________________________________________________________________
5. How many full time employees do you have on staff?
Licensing & Bonding

6. Contractors License # __________________.
7. What Trade Categories is your company legally qualified to work under:
Trade

License #

Years of experience

A._______________________________________________________________________
B._______________________________________________________________________
C._______________________________________________________________________
D._______________________________________________________________________
10


8. Is your organization in good standing with the Contractors License Board?
9. Does your company have any outstanding or pending citations filed with the Contractors License Board? _______
If so explain: _______________________________________________________________________
10. Has your organization ever been bonded? _______________________________________
11. Maximum amount of Performance Bond $ _________________.
12. Name and address of your most recent Bonding Company: __________________________
13. Insurance Coverage: Company:

Type :

Limits:

1. Have you been sued in the last five years for breach of contract, default or any other
cause of action with regard to
your business activities? If so, explain:_______________________________________________________________

2. What categories of work does your company perform with its own staff? ______________________________________________
3. Has your organization ever failed to complete any work awarded?
4. Has your organization filed any lawsuits or requested arbitration with regard to construction contracts within the past five years?
.
5. Are you familiar with the Mutual Self Help Program?
6. Have you ever worked on a Self Help Housing project? If so, When & Where?

____________________________________

7. What projects do you currently have under construction?
Project

Location

Type

Scheduled Completion Date
A._______________________________________________________________________
B._______________________________________________________________________
C._______________________________________________________________________
D. ______________________________________________________________________
11


9. Can you give us three-completed and one in-progress projects that we may visit?
A.______________________________________________________________________
B.______________________________________________________________________
C.______________________________________________________________________
D_______________________________________________________________________
General Questions

1. What experience do you have in working with non-profit organizations? _________________________________________________
2. If selected as a contractor to bid on this project can you promise us with an accurate cost estimate, within 7 days of receipt of bid
documents (Plan Specifications)?
3. If you are the selected Sub trade contractor for this project, what percentage of time will you (owner) be onsite supervising the project
___________________________________
Contract Requirements

1. Describe your billing and payment requirements?____________________________________________________________
2. Will you be able to obtain material and supplies on trade credit? If so, what payment
_______________________

terms are required?

3. If selected as the contractor for this development project, describe how and under what conditions you would ensure:
A. Adequate supervision of work activity
B. Adequate Workforce present on the job
C. Timely completion of work activities
D. Scheduling of work to be performed, material delivery and inspections

12


Construction Contracts

13


Contract Provisions
Reference: RD Instruction 1924-A Paragraph1924-6 (a) (1)
(1) Forms used. Form RD 1924-6, "Construction Contract," will be used for SFH construction.

Other contract documents for more complex construction, acceptable to the loan approval official
and containing the requirements of Subpart E of Part 1901 of this chapter, may be used provided
they are customarily used in the area and protect the interest of the borrower and the Government
with respect to compliance with items such as the drawings, specifications, payments for work,
inspections, completion, nondiscrimination in construction work and acceptance of the work. If
needed, the Office of the General Counsel (OGC) will be consulted. The United States (including
Rural Development) will not become a party to a construction contract or incur any liability under
it.
Reference: RD Instruction 1924-A Paragraph1924-6 (a) (2)
Contracts will have a listing of attachments and the provisions of the contract will include:
(i) The contract sum.
(ii) The dates for starting and completing the work.
(iii) The amount of liquidated damages to be charged.
(iv) The amount, method, and frequency of payment.
(v) Whether or not surety bonds will be provided.
(vi) The requirement that changes or additions must have prior written approval of RD.
14


ATTACHMENTS

FORMS
Construction Contract Form RD 1924-6
Equal Opportunity Agreement Form RD 400-1
Notice to Contractors and Applicants Form RD 400-3
Compliance Statement Form RD 400-6
Release by Claimants Form RD 1924-10
Builder’s Warranty Form RD 1924-19

15

Form RD 1924-6 “Construction Contract”
USDA – RD
(Rev. 8-93)

Position 6
OMB NO. 0575-0042
CONSTRUCTION CONTRACT

Form APPROVED RD 1924-6
State _____________
County ___________

This Contract, made this ______________day of ____________________, 20 , by
_______________________ of _____________ (hereinafter called the “Owner”), and
______________________________ (hereinafter called the “Contractor”).
WITNESSETH that the parties hereto agree as follows:
(A)The Contractor will furnish materials and perform the work for:
____________________for the consideration of _______ dollars ($
), in accordance with the “General
Conditions” shown in this contract and the specifications and the drawings as follows:

16


(B) The Contractor will start work by _____________ , 20 and will complete the work by
______________ , 2010. (See paragraph III of General Conditions).
(C) The Owner will make payments as follows: (Check the proper payment clause and effectively cross out
(xxxxxxx) all of the clauses not applicable.)

1. ONE LUMP SUM will be made for the whole contract upon acceptance by the owner and Rural
Development of all work required hereunder and compliance by contractor with all the terms and
conditions of this contract.
2. PARTIAL PAYMENTS NOT TO EXCEED 60 PERCENT of the value of the work in place (less the
aggregate of previous payments) will be made at intervals of _________________. The value of work in
place shall be as estimated by the contractor and approved by Rural Development. Prior to receiving any
partial payment, the contractor must furnish the owner with a statement showing the total amount owed to
date for materials and labor procured under this contract and, if required by the owner or Rural
Development, must also submit evidence showing that previous partial payments were properly applied and
that the current payment will be properly applied. Upon completion of the whole contract and acceptance of
the work as required hereunder, by the owner and Rural Development, and compliance by the contractor
with all terms and conditions of this contract, the amount due the contractor will be paid.
3. PARTIAL PAYMENTS IN THE AMOUNT OF 90 PERCENT of the value of the work in place and
of the value of the materials suitably stored at the site (less the aggregate of previous payments) will be
made at intervals of
____________________. The value of the work and materials in place
or on site shall be as estimated by the contractor and approved by the owner and Rural Development. Upon
acceptance by the owner and Rural Development of all work required hereunder and compliance by the
contractor with all terms and conditions of this contract, the amount due the contractor will be paid. The
contractor shall, before the owner signs the contract, deliver to the owner a surety bond in the amount of
the contract.
17


(D) The items described below (the Notice of Requirement for Affirmative Action to Ensure Equal
Employment Opportunity required by Executive Order 11246, the Equal Opportunity Clause published at
41 CFR 60-1.4 (a) and (b), and the Standard Federal Equal Employment Opportunity Construction
Contract Specifications required by Executive Order 11246) apply, during the performance of this
contract, if the contract exceeds $10,000 (This also includes subsequent loans and grants, or contract
change orders made during the construction period of the original contract, which will cause the total to

exceed $10,000.) to the following: (1) All contractors or subcontractors who hold any Federal or Federally
assisted construction contract, (2) All grants, contracts and loans (direct, insured or guaranteed) let by
Rural Development, and (3) All construction work performed by construction contractors and
subcontractors for Federal non-construction contractors and subcontractors if the construction work is
necessary in whole or in part to the performance of a non-construction contract or subcontract. The items
are applicable to all of a contractor’s or subcontractor’s employees who are engaged in “on site”
construction including those construction employees who work on a non-Federal or non-federally assisted
construction site. The items, however, will not preempt state or local government regulations of the
construction industry, and will no relieve contractors and subcontractors of the obligations they may have
under other affirmative action or equal opportunity programs.

Public reporting for this collection of information is estimated to average 15 minutes per response, including the time for reviewing
instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the
collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information
including suggestions for reducing this burden, to Department of Agriculture, clearance Officer, ORIM, AG Box 7630, Washington,
D.C. 20250: and to the Office of Management and Budget, Paperwork Reduction Project (OMB No. 0575-0042), Washington, D.C.
20503. Please DO NOT RETURN this form to either of these addresses.
Forward to Rural development only
18


NOTICE OF REQUIREMENT FOR AFFIRMATIVE ACTION TO ENSURE EQUAL EMPLOYMENT OPPORTUNITY
(Executive Order 11246)

Date: ____________________

City: ___________________________

DOL Region: _____________

Goals and Timetables for Women (Exhibit D, RD Instruction 1901-E)

Goals and Timetables for ALL MINORITIES (Exhibit D, RD Instruction 1901-E)

19


EQUAL OPPORTUNITY CLAUSE (41 CFR 60-1.4 (a) AND (b))
(1) The contractor will not discriminate against any employee or applicant for employment because
of race, color, religion, sex or national origin. The contractor will take affirmative action to ensure
that applicants are employed, and that employees are treated during employment without regard to
race, color, religion, sex or national origin. Such actions shall include, but not limited, to the
following: employment, upgrading, demotion or transfer; recruitment advertising; layoff or
termination; rates of pay or other forms of compensation; and selection for training, including
apprenticeship. The contractor agrees to post in conspicuous places, available to employees and
ap0plicants for employment, notices to be provided by Rural Development setting forth the provisions
of this nondiscrimination clause.
(2) The contractor will, in all solicitations or advertisements for employees placed by or on behalf of
the contractor, state that all qualified applicants will receive consideration for employment without
regard to race, color, religion, sex or national origin.
(3) The contractor will send to each labor union or representative of workers with which contractor
has a collective bargaining agreement or other contract or understanding, a notice, to be provided by
Rural Development, advising the said labor union or workers’ representative of the contractor’s
commitments under this agreement as required pursuant to Section 301 0f Executive Order 11246 of
September 24, 1965, and shall post copies of the notice in conspicuous places available to employees
and applicants for employment.
(4) The contractor will comply with all provisions of such Executive Order and of all relevant rules,
regulations, and orders of the Secretary of Labor and of any prior authority which remain n effect.
20

(5) The contractor will furnish all information and reports required by such Executive Order, rules,
regulations, and orders, or pursuant thereto, and will permit access to books, records, and accounts by
Rural Development and the Secretary of labor for purposes of investigation to ascertain compliance
with such rules, regulations, and orders.
(6) In the event of the contractor’s noncompliance with the nondiscrimination clauses of this contract
or with any of the said rules, regulations, or orders, this contract may be canceled, terminated or
suspended in whole or in part and the contractor may be declared ineligible for further contracts in
accordance with procedures authorized un such Executive order and such other sanctions may be
imposed and remedies invoked as provided in the Executive Order or by any such rules, regulations, or
order, or as otherwise provided by law.
(7) The contractor will include the provisions of paragraphs (1) through (70 in every subcontract or
purchase order, unless exempted by such rules, regulations, or orders, so that such provisions will be
binding upon each such subcontractor or vendor. The contractor will take such action as Rural
Development may direct as a means of enforcing such provisions, including sanctions for
noncompliance: Provided, however, that in the event the contractor becomes involved in, or is
threatened with, litigation with a subcontractor or vendor as a result of such direction by Rural
Development, the contractor may request the United States to enter into such litigation to protect the
interest of the United States.

RD 1924-6
21


Form RD 400-1

FORM APPROVED

(Rev. 5-00) UNITED STATES DEPARTMENT OF AGRICULTURE

OMB No. 0575-0018

EQUAL OPPORTUNITY AGREEMENT
This agreement, dated ______________________________ between ________________________________
_________________________________________________________________________________________(he
rein called ''Recipient'' whether one or more) and United States Department of Agriculture (USDA), pursuant
to the rules and regulations of the Secretary of Labor (herein called the 'Secretary') issued under the authority
of Executive Order 11246 as amended, witnesseth:
In consideration of financial assistance (whether by a loan, grant, loan guaranty, or other form of financial
assistance) made or to be made by the USDA to Recipient, Recipient hereby agrees, if the cash cost of
construction work performed by Recipient or a construction contract financed with such financial assistance
exceeds $10,000 - unless exempted by rules, regulations or orders of the Secretary of Labor issued pursuant to
Section 204 of Executive Order 11246 of September 24, 1965.
1. To incorporate or cause to be incorporated into any contract for construction work, or modification thereof,
subject to the relevant rules, regulations, and orders of the Secretary or of any prior authority that remain in
effect, which is paid for in whole or in part with the aid of such financial assistance, the following "Equal
Opportunity Clause":
During the performance of this contract, the contractor agrees as follows:
(a) The contractor will not discriminate against any employee or applicant for employment because of race,
color, religion, sex or national origin. The contractor will take affirmative action to ensure that applicants are
employed, and that employees are treated during employment, without regard to their race, color, religion, sex
or national origin. Such action shall include, but not be limited, to the following: employment, upgrading,
demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms
22


of compensation; and selection for training, including apprenticeship. The contractor agrees to post in
conspicuous places, available to employees and applicants for employment, notices to be provided by the
USDA setting forth the provisions of this nondiscrimination clause.
(b) The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the

contractor, state that all qualified applicants will receive consideration for employment without regard to
race, color, religion, sex or national origin.
(c) The contractor will send to each labor union or representative of workers with which he has a collective
bargaining agreement or other contract or understanding, a notice, to be provided by the USDA, advising
the said labor union or workers' representative of the contractor's commitments under this agreement and
shall post copies of the notice in conspicuous places available to employees and applicants for employment.
(d) The contractor will comply with all provisions of Executive Order 11246 of September 24,1965, and of
all rules, regulations and relevant orders of the Secretary of Labor.
(e) The contractor will furnish all information and reports required by Executive Order 11246 of September
24, 1965, rules, regulations, and orders, or pursuant thereto, and will permit access to his books, records,
and accounts by the USDA Civil Rights Office, and the Secretary of Labor for purposes of investigation to
ascertain compliance with such rules, regulations, and orders.
(f) In the event of the contractor's noncompliance with the nondiscrimination clauses of this contract or
with any of the said rules, regulations, or orders, this contract may be cancelled, terminated, or suspended
in whole or in part and the contractor may be declared ineligible for further Government contracts or
federally assisted construction contracts in accordance with procedures authorized in Executive Order No.
11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided
in Executive Order No. 11246 of September 24, 1965, or by rule, regulation or order of the Secretary of
Labor, or as otherwise provided by Law.


(g) The contractor will include the provisions of paragraph 1 and paragraph (a) through (g) in every
subcontract or purchase order, unless exempted by the rules, regulations, or orders of the Secretary of
Labor issued pursuant to Section 204 of Executive Order No. 11246 of September 24, 1965, so that such
provisions will be binding upon each subcontractor or vendor. The
contractor will take such action with respect to any subcontract or purchase order as the USDA may direct
as a means of enforcing such provisions, including sanctions for noncompliance: Provided, however, that
in the event the contractor becomes involved in, or is threatened with, litigation with a subcontractor or
vendor as a result of such direction by the USDA, the contractor may request the United States to enter into
such litigation to protect the interest of the United States.

According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is
not required to respond to, a collection of information unless it displays a valid OMB control number. The
valid OMB control number for this information collections is 0575-0018. The time required to complete
this information collection is estimated to average 10 minutes per response, including the time for reviewing
instructions, searching existing data sources, gathering and maintaining the data needed, and completing
and reviewing the collection of information.
Position 6

RD 400-1 (Rev. 5-00)

2. To be bound by the above equal opportunity clause with respect to its own employment practices when it
participates in federally assisted construction work: Provided, that if the organization so participating is a
State or local government, the above equal opportunity clause is not applicable to any agency,
instrumentality or subdivision of such government which does not participate in work on or under the
contract.
3. To notify all prospective contractors to file the required 'Compliance Statement', Form RD 400-6, with
their bids.


4. Form AD-425, Instructions to Contractors, will accompany the notice of award of the contract. Bid conditions for all nonexempt
federal and federally assisted construction contracts require inclusion of the appropriate ''Hometown'' or ''Imposed'' plan affirmative
action and equal employment opportunity requirements. All bidders must comply with the bid conditions contained in the invitation to
be considered responsible bidders and hence eligible for the award.
5. To assist and cooperate actively with USDA and the Secretary in obtaining the compliance of contractors and subcontractors with
the equal opportunity clause and rules, regulations, and relevant orders of the Secretary, that will furnish USDA and the Secretary such
information such as , but not limited to, Form AD-560, Certification of Nonsegregated Facilities, to submit the Monthly Employment
Utilization Report, Form CC-257, as they may require for the supervision of such compliance, and that it will otherwise assist USDA in
the discharge of USDA's primary responsibility for securing compliance.
6. To refrain from entering into any contract or contract modification subject to such Executive Order 11246 of September 24, 1965,
with a contractor debarred from, or who has not demonstrated eligibility for, Government contracts and Federally assisted construction

contracts pursuant to the Executive Order and will carry out such sanctions and penalties for violation of the equal opportunity clause
as may be imposed upon contractors and subcontractors by USDA or the Secretary of Labor pursuant to Part II, Subpart D, of the
Executive Order.
7. That if the recipient fails or refuses to comply with these undertakings, the USDA may take any or all of the following actions:
Cancel, terminate, or suspend in whole or in part this grant (contract, loan, insurance, guarantee); refrain from extending any further
assistance to the organization under the program with respect to which the failure or refund occurred until satisfactory assurance of
future compliance has been received from such organization; and refer the case to the Department of Justice for appropriate legal
proceedings.
Signed by the Recipient on the date first written above.
___________________________________________

___________________________________________________

Recipient

Recipient

(CORPORATE SEAL)
_____________________________________________________
Name of Corporate Recipient
Attest:
_______________________________________________________
___________________________________________________
Secretary 25

By
President