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CONTRACT SERVICES AGREEMENT 24P168
ECONOMIC DEVELOPMENT CONSULTING SERVICES
THIS AGREEMENT FOR CONTRACT SERVICES (“Agreement”) is made
and entered into on July 29, 2024, by and between the City of Palm Springs, a California charter
city and municipal corporation (“City”), and CVL Economics LLC, a California Limited Liability
Company, (“Contractor”). City and Contractor are individually referred to as “Party” and are
collectively referred to as the “Parties”.
RECITALS
A. City requires the services of an economic development firm to provide an
economic development study for the City and an economic impact study for the Palm Springs
International Airport (“Project”).
B. Contractor has submitted to City a proposal to provide these studies, under the
terms of this Agreement.
C. Based on its experience, education, training, and reputation, Contractor is qualified
and desires to provide the necessary services to City for the Project.
D. City desires to retain the services of Contractor for the Project.
NOW, THEREFORE, in consideration of the promises and mutual obligations, covenants,
and conditions contained herein, and other valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Parties agree as follows:
AGREEMENT
1. CONTRACTOR SERVICES
1.1 Scope of Services. In compliance with all terms and conditions of this Agreement,
Contractor shall provide services to City as described in the Scope of Services/Work attached to
this Agreement as Exhibit “A” and incorporated herein by reference (the “Services” or “Work”).
Exhibit "A" includes the agreed upon schedule of performance and the schedule of fees.
Contractor warrants that the Services shall be performed in a competent, professional, and
satisfactory manner consistent with the level of care and skill ordinarily exercised by high quality,
experienced, and well qualified members of the profession currently practicing under similar
conditions. In the event of any inconsistency between the terms contained in the Scope of
Services/Work and the terms set forth in this Agreement, the terms set forth in this Agreement
shall govern.
1.2 Compliance with Law. Contractor shall comply with all applicable federal, state,
and local laws, statutes and ordinances and all lawful orders, rules, and regulations when
performing the Services. Contractor shall be liable for all violations of such laws and regulations
in connection with the Services and this Agreement.
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1.3 Licenses and Permits. Contractor shall obtain at its sole cost and expense such
licenses, permits, and approvals as may be required by law for the performance of the Services
required by this Agreement.
1.4 Familiarity with Work. By executing this Agreement, Contractor warrants that it
has carefully considered how the W ork should be performed and fully understands the facilities,
difficulties, and restrictions attending performance of the Work under this Agreement.
2. TIME FOR COMPLETION
The time for completion of the Services to be performed by Contractor is an essential
condition of this Agreement. Contractor shall prosecute regularly and diligently the work of this
Agreement according to the agreed upon schedule of performance set forth in Exhibit “A.” Neither
Party shall be accountable for delays in performance caused by any condition beyond the
reasonable control and without the fault or negligence of the non-performing Party. Delays shall
not entitle Contractor to any additional compensation regardless of the Party responsible for the
delay.
3. COMPENSATION OF CONTRACTOR
3.1 Compensation of Contractor. Contractor shall be compensated and reimbursed
for the services rendered under this Agreement in accordance with the schedule of fees set forth
in Exhibit “A”. The total amount of Compensation shall not exceed $375,080 ($123,250 for the
EDST and $251,830 for the EIS).
3.2 Method of Payment. In any month in which Contractor wishes to receive
payment, Contractor shall submit to City an invoice for Services rendered prior to the date of the
invoice, no later than the first working day of such month, in the form approved by City’s finance
director. Payments shall be based on the schedule of fees set forth in Exhibit “A” for authorized
services performed. City shall pay Contractor for all expenses stated in the invoice that are
approved by City and consistent with this Agreement, within thirty (30) days of receipt of
Contractor’s invoice.
3.3 Changes. In the event any change or changes in the Services is requested by
City, Parties shall execute a written amendment to this Agreement, specifying all proposed
amendments, including, but not limited to, any additional fees. An amendment may be entered
into:
A. To provide for revisions or modifications to documents, work product, or
Work, when required by the enactment or revision of any subsequent law; or
B. To provide for additional services not included in this Agreement or not
customarily furnished in accordance with generally accepted practice in Contractor’s profession.
3.4 Appropriations. This Agreement is subject to, and contingent upon, funds being
appropriated by the City Council of City for each fiscal year. If such appropriations are not made,
this Agreement shall automatically terminate without penalty to City.
4. PERFORMANCE SCHEDULE
4.1 Time of Essence. Time is of the essence in the performance of this Agreement.
4.2 Schedule of Performance. All Services rendered under this Agreement shall be
performed under the agreed upon schedule of performance set forth in Exhibit “A.” Any time
period extension must be approved in writing by the Contract Officer.
4.3 Force Majeure. The time for performance of Services to be rendered under this
Agreement may be extended because of any delays due to a Force Majeure Event if Contractor
notifies the Contract Officer within ten (10) days of the commencement of the Force Majeure
Event. A Force Majeure Event shall mean an event that materially affects the Contractor’s
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performance and is one or more of the following: (1) Acts of God or other natural disasters
occurring at the project site; (2) terrorism or other acts of a public enemy; (3) orders of
governmental authorities (including, without limitation, unreasonable and unforeseeable delay in
the issuance of permits or approvals by governmental authorities that are required for the Work);
and (4) pandemics, epidemics or quarantine restrictions. For purposes of this section, “orders of
governmental authorities,” includes ordinances, emergency proclamations and orders, rules to
protect the public health, welfare and safety, and other actions of the City in its capacity as a
municipal authority. After Contractor notification, the Contract Officer shall investigate the facts
and the extent of any necessary delay, and extend the time for performing the Services for the
period of the enforced delay when and if, in the Contract Officer’s judgment, such delay is justified.
The Contract Officer’s determination shall be final and conclusive upon the Parties to this
Agreement. The Contractor will not receive an adjustment to the contract price or any other
compensation. Notwithstanding the foregoing, the City may still terminate this Agreement in
accordance with the termination provisions of this Agreement.
4.4 Term. Unless earlier terminated in accordance with Section 4.5 of this Agreement,
this Agreement shall continue in full force and effect for a period of three years with two one year
options to renew at the City’s sole discretion, commencing on July 29, 2024, and ending on July
28, 2027, unless extended by mutual written agreement of the Parties.
4.5 Termination Prior to Expiration of Term. City may terminate this Agreement at
any time, with or without cause, upon thirty (30) days written notice to Contractor. Where
termination is due to the fault of Contractor and constitutes an immediate danger to health, safety,
and general welfare, the period of notice shall be such shorter time as may be determined by the
City. Upon receipt of the notice of termination, Contractor shall immediately cease all Services
except such as may be specifically approved by the Contract Officer. Contractor shall be entitled
to compensation for all Services rendered prior to receipt of the notice of termination and for any
Services authorized by the Contract Officer after such notice. City shall not be liable for any costs
other than the charges or portions thereof which are specified herein. Contractor shall not be
entitled to payment for unperformed Services, and shall not be entitled to damages or
compensation for termination of W ork. If the termination is for cause, the City shall have the right
to take whatever steps it deems necessary to correct Contractor's deficiencies and charge the
cost thereof to Contractor, who shall be liable for the full cost of the City's corrective action.
Contractor may not terminate this Agreement except for cause, upon thirty (30) days written notice
to City.
5. COORDINATION OF WORK
5.1 Representative of Contractor. The following principal of Contractor is
designated as being the principal and representative of Contractor authorized to act and make all
decisions in its behalf with respect to the specified Services: Uday Ram, Founding Partner. It is
expressly understood that the experience, knowledge, education, capability, and reputation of the
foregoing principal is a substantial inducement for City to enter into this Agreement. Therefore,
the foregoing principal shall be responsible during the term of this Agreement for directing all
activities of Contractor and devoting sufficient time to personally supervise the Services under
this Agreement. The foregoing principal may not be changed by Contractor without prior written
approval of the Contract Officer.
5.2 Contract Officer. The Contract Officer shall be the City Manager or his/her
designee ("Contract Officer"). Contractor shall be responsible for keeping the Contract Officer
fully informed of the progress of the performance of the Services. Contractor shall refer any
decisions that must be made by City to the Contract Officer. Unless otherwise specified, any
approval of City shall mean the approval of the Contract Officer.
5.3 Prohibition Against Subcontracting or Assignment. The experience,
knowledge, education, capability, and reputation of Contractor, its principals, and employees,
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were a substantial inducement for City to enter into this Agreement. Contractor shall not contract
with any other individual or entity to perform any Services required under this Agreement without
the City's express written approval which shall not be unreasonably delayed or withheld. In
addition, neither this Agreement nor any interest may be assigned or transferred, voluntarily or by
operation of law, without the prior written approval of City. Subcontracts, if any, shall contain a
provisions making them subject to all provisions stipulated in this Agreement including without
limitation the insurance and indemnification requirements. If Contractor is permitted to
subcontract any part of this Agreement by City, Contractor shall be responsible to City for the acts
and omissions of its subcontractor(s) in the same manner as it is for persons dire ctly employed.
Nothing contained in this Agreement shall create any contractual relationships between any
subcontractor and City.
5.4 Independent Contractor. Neither City nor any of its employees shall have any
control over the manner, mode, or means by which Contractor, its agents, or employees, perform
the Services required, except as otherwise specified. Contractor shall perform all required
Services as an independent contractor of City and shall not be an employee of City and shall
remain at all times as to City a wholly independent contractor with only such obligations as are
consistent with that role; however, City shall have the right to review Contractor’s work product,
result, and advice. Contractor shall not at any time or in any manner represent that it or any of its
agents or employees are agents or employees of City. Contractor shall pay all wages, salaries,
and other amounts due personnel in connection with their performance under this Agreement and
as required by law. Contractor shall be responsible for all reports and obligations respecting such
personnel, including, but not limited to: social security taxes, income tax withholding,
unemployment insurance, and workers’ compensation insurance. Contractor shall not have any
authority to bind City in any manner.
5.5 Personnel. Contractor agrees to assign the following individuals to perform the
services in this Agreement. Contractor shall not alter the assignment of the following personnel
without the prior written approval of the Contract Officer. Acting through the City Manager, the
City shall have the unrestricted right to order the removal of any personnel assigned by Contractor
by providing written notice to Contractor.
Name: Title:
Uday Ram Engagement Manager and (EDST) Project Director
Adam J. Fowler EDST Research Manager
Alissa Dubetz EDST Data Analytics
Mazen Bou Zeineddine EDST Economic Modeling
Sharon Sarmiento EIS Project Director
Kurt Fuehllhart EIS Project Manager
Firelli Pitters EIS Market Research
Gary Lin IES Lead Analyst
5.6 California Labor Code Requirements.
A. Contractor is aware of the requirements of California Labor Code Sections
1720 et seq. and 1770 et seq., which require the payment of prevailing wage rates and the
performance of other requirements on certain “public works” and “maintenance” projects
(“Prevailing Wage Laws”). If the Services are being performed as part of an applicable “public
works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the tot al
compensation is $15,000 or more for maintenance or $25,000 or more for construction, alteration,
demolition, installation, or repair, Contractor agrees to fully comply with such Prevailing Wage
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Laws. Contractor shall defend, indemnify, and hold the City, its officials, officers, employees, and
agents free and harmless from any claims, liabilities, costs, penalties, or interest arising out of
any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon
the Contractor and all subcontractors to comply with all California Labor Code provisions, which
include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775),
employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code
Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment
of contractors and subcontractors (Labor Code Section 1777.1).
B. If the Services are being performed as part of an applicable “public works”
or “maintenance” project and if the total compensation is $15,000 or more for maintenance or
$25,000 or more for construction, alteration, demolition, installation, or repair, then pursuant to
Labor Code Sections 1725.5 and 1771.1, the Contractor and all subcontractors performing such
Services must be registered with the Department of Industrial Relations. Contractor shall maintain
registration for the duration of the Project and require t he same of any subcontractors, as
applicable. This Agreement may also be subject to compliance monitoring and enforcement by
the Department of Industrial Relations. It shall be Contractor’s sole responsibility to comply with
all applicable registration and labor compliance requirements.
6. INSURANCE
Contractor shall procure and maintain, at its sole cost and expense, policies of insurance
as set forth in the attached Exhibit "B", incorporated herein by reference.
7. INDEMNIFICATION.
7.1 Indemnification. To the fullest extent permitted by law, Contractor shall
defend (at Contractor’s sole cost and expense), indemnify, protect, and hold harmless City, its
elected officials, officers, employees, agents, and volunteers (collectively the “Indemnified
Parties”), from and against any and all liabilities, actions, suits, claims, demands, losses, costs,
judgments, arbitration awards, settlements, damages, demands, orders, penalties, and expenses
including legal costs and attorney fees (collectively “Claims”), including but not limited to Claims
arising from injuries to or death of persons (Contractor’s employees included), for damage to
property, including property owned by City, for any violation of any federal, state, or local law or
ordinance or in any manner arising out of, pertaining to, or incident to any acts, errors or
omissions, or willful misconduct committed by Contractor, its officers, employees, representatives,
and agents, that arise out of or relate to Contractor’s performance of Services or this Agreement.
This indemnification clause excludes Claims arising from the sole negligence or willful misconduct
of the Indemnified Parties. Under no circumstances shall the insurance requirements and limits
set forth in this Agreement be construed to limit Contractor’s indemnification obligation or other
liability under this Agreement. Contractor’s indemnification obligation shall survive the expiration
or earlier termination of this Agreement until all actions against the Indemnified Parties for such
matters indemnified are fully and finally barred by the applicable statute of limitations or, if an
action is timely filed, until such action is final for any violation of any federal, state, or local law or
ordinance in any manner arising out of, pertaining to, or incident to any negligent or reckless acts,
errors or omissions, or willful misconduct committed by Contractor, its officers, employees,
representatives, and agents, that arise out of or relate to Contractor’s performance of Services or
this Agreement.
7.2 Design Professional Services Indemnification and Reimbursement. If
Contractor’s obligation to defend, indemnify, and/or hold harmless arises out of Contractor’s
performance as a “design professional” (as that term is defined under Civil Code section 2782.8),
then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated
herein, Contractor’s indemnification obligation shall be limited to the extent which the Claims arise
out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Contractor
in the performance of the Services or this Agreement, and, upon Contractor obtaining a final
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adjudication by a court of competent jurisdiction, Contractor’s liability for such claim, including the
cost to defend, shall not exceed the Contractor’s proportionate percentage of fault.
8. RECORDS AND REPORTS
8.1 Reports. Contractor shall periodically prepare and submit to the Contract Officer
reports concerning the performance of the Services required by this Agreement, or as the
Contract Officer shall require.
8.2 Records. Contractor shall keep complete, accurate, and detailed accounts of all
time, costs, expenses, and expenditures pertaining in any way to this Agreement. Contractor
shall keep such books and records as shall be necessary to properly perform the Services
required by this Agreement and enable the Contract Officer to evaluate the performance of such
Services. The Contract Officer shall have full and free access to such books and records at all
reasonable times, including the right to inspect, copy, audit, and make records and transcripts
from such records.
8.3 Ownership of Documents. All drawings, specifications, reports, records,
documents, and other materials prepared by Contractor in the performance of this Agreement
shall be the property of City. Notwithstanding the foregoing, this ownership of documents does
not include or extend to preexisting intellectual property rights of certain data, industry practices,
and specifications owned by Contractor. Contractor shall deliver all above-referenced documents
to City upon request of the Contract Officer or upon the termination of this Agreement. Contractor
shall have no claim for further employment or additional compensation as a result of the exercise
by City of its full rights or ownership of the documents and materials. Contractor may retain copies
of such documents for Contractor's own use. Contractor shall have an unrestricted right to use
the concepts embodied in such documents.
8.4 Release of Documents. All drawings, specifications, reports, records,
documents, and other materials prepared by Contractor in the performance of Services under this
Agreement shall not be released publicly without the prior written approval of the Contract Officer.
8.5 Audit and Inspection of Records. After receipt of reasonable notice and during
the regular business hours of City, Contractor shall provide City, or other agents of City, such
access to Contractor’s books, records, payroll documents, and facilities as City deems necessary
to examine, copy, audit, and inspect all accounting books, records, work data, documents, and
activities directly related to Contractor’s performance under this Agreement. Contractor shall
maintain such books, records, data, and documents in accordance with generally accepted
accounting principles and shall clearly identify and make such items readily accessible to such
parties during the term of this Agreement and for a period of three (3) years from the date of final
payment by City hereunder.
9. ENFORCEMENT OF AGREEMENT
9.1 California Law. This Agreement shall be construed and interpreted both as to
validity and to performance of the parties in accordance with the laws of the State of California.
Legal actions concerning any dispute, claim, or matter arising out of or in relation to this
Agreement shall be instituted in the Superior Court of the County of Riverside, State of California,
or any other appropriate court in such county, and Contractor covenants and agrees to submit to
the personal jurisdiction of such court in the event of such action.
9.2 Interpretation. This Agreement shall be construed as a whole according to its fair
language and common meaning to achieve the objectives and purposes of the Parties. The terms
of this Agreement are contractual and the result of negotiation between the Parties. Accordingly,
any rule of construction of contracts (including, without limitation, California Civil Code Section
1654) that ambiguities are to be construed against the drafting party, shall not be employed in the
interpretation of this Agreement. The caption headings of the various sections and paragraphs
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of this Agreement are for convenience and identification purposes only and shall not be deemed
to limit, expand, or define the contents of the respective sections or paragraphs.
9.3 Waiver. No delay or omission in the exercise of any right or remedy of a non-
defaulting Party on any default shall impair such right or remedy or be construed as a waiver. No
consent or approval of City shall be deemed to waive or render unnecessary City’s consent to or
approval of any subsequent act of Contractor. Any waiver by either Party of any default must be
in writing. No such waiver shall be a waiver of any other default concerning the same or any other
provision of this Agreement.
9.4 Rights and Remedies are Cumulative. Except with respect to rights and
remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the
parties are cumulative. The exercise by either Party of one or more of such rights or remedies
shall not preclude the exercise by it, at the same or different times, of any other rights or remedies
for the same default or any other default by the other Party.
9.5 Legal Action. In addition to any other rights or remedies, either Party may take
legal action, in law or in equity, to cure, correct, or remedy any default, to recover damages for
any default, to compel specific performance of this Agreement, to obtain injunctive relief, a
declaratory judgment, or any other remedy consistent with the purposes of this Agreement.
9.6 Attorney Fees. In the event any dispute between the Parties with respect to this
Agreement results in litigation or any non-judicial proceeding, the prevailing Party shall be entitled,
in addition to such other relief as may be granted, to recover from the non-prevailing Party all
reasonable costs and expenses. These include but are not limited to reasonable attorney fees,
expert contractor fees, court costs and all fees, costs, and expenses incurred in any appeal or in
collection of any judgment entered in such proceeding.
10. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION
10.1 Non-Liability of City Officers and Employees. No officer or employee of City
shall be personally liable to the Contractor, or any successor-in-interest, in the event of any default
or breach by City or for any amount which may become due to the Contractor or its successor, or
for breach of any obligation of the terms of this Agreement.
10.2 Conflict of Interest. Contractor acknowledges that no officer or employee of the
City has or shall have any direct or indirect financial interest in this Agreement, nor shall
Contractor enter into any agreement of any kind with any such officer or employee during the term
of this Agreement and for one (1) year thereafter. Contractor warrants that Contractor has not
paid or given, and will not pay or give, any third party any money or other consideration in
exchange for obtaining this Agreement.
10.3 Covenant Against Discrimination. In connection with its performance under
this Agreement, Contractor shall not discriminate against any employee or applicant for
employment because of actual or perceived race, religion, color, sex, age, marital status,
ancestry, national origin ( i.e., place of origin, immigration status, cultural or linguistic
characteristics, or ethnicity), sexual orientation, gender identity, gender expression, physical or
mental disability, or medical condition (each a “prohibited basis”). Contractor shall ensure that
applicants are employed, and that employees are treated during their employment, without regard
to any prohibited basis. As a condition precedent to City’s lawful capacity to enter this Agreement,
and in executing this Agreement, Contractor certifies that its actions and omissions hereunder
shall not incorporate any discrimination arising from or related to any prohibited basis in any
Contractor activity, including but not limited to the following: employment, upgrading, demotion or
transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms
of compensation; and selection for training, including apprenticeship; and further, that Contractor
is in full compliance with the provisions of Palm Springs Municipal Code Section 7.09.040,
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including without limitation the provision of benefits, relating to non-discrimination in city
contracting.
11. MISCELLANEOUS PROVISIONS
11.1 Notice. Any notice, demand, request, consent, approval, or communication that
either Party desires, or is required to give to the other Party or any other person shall be in writing
and either served personally or sent by pre-paid, first-class mail to the address set forth below.
Notice shall be deemed communicated seventy-two (72) hours from the time of mailing if mailed
as provided in this Section. Either Party may change its address by notifying the other Party of
the change of address in writing.
To City: City of Palm Springs
Attention: City Manager/ City Clerk
3200 E. Tahquitz Canyon Way
Palm Springs, California 92262
To Contractor: CVL Economics LLC
Attention: Uday Ram
8306 Kirkwood Drive
Los Angeles, CA 90046
11.2 Integrated Agreement. This Agreement constitutes the entire understanding
between the Parties and supersedes and cancels all prior negotiations, arrangements,
agreements, representations, and understandings, if any, made by or among the Parties with
respect to the subject matter in this Agreement.
11.3 Amendment. No amendments or other modifications of this Agreement shall be
binding unless through written agreement signed by all Parties.
11.4 Severability. Whenever possible, each provision of this Agreement shall be
interpreted in such a manner as to be effective and valid under applicable law. In the event that
any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this
Agreement shall be declared invalid or unenforceable by valid judgment or decree of a court of
competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining
phrases, sentences, clauses, paragraphs, or sections of this Agreement, which shall be
interpreted to carry out the intent of the Parties.
11.5 Successors in Interest. This Agreement shall be binding upon and inure to the
benefit of the Parties’ successors and assignees.
11.6 Third Party Beneficiary. Except as may be expressly provided for in this
Agreement, nothing contained in this Agreement is intended to confer, nor shall this Agreement
be construed as conferring, any rights, including, without limitation, any rights as a third-party
beneficiary or otherwise, upon any entity or person not a party to this Agreement.
11.7 Recitals. The above-referenced Recitals are hereby incorporated into the
Agreement as though fully set forth in this Agreement and each Party acknowledges and agrees
that such Party is bound, for purposes of this Agreement, by the same.
11.8 Authority. The persons executing this Agreement on behalf of the Parties warrant
that they are duly authorized to execute this Agreement on behalf of Parties and that by so
executing this Agreement the Parties are formally bound to the provisions of this Agreement.
11.9 Counterparts. This Agreement may be signed in counterparts, each of which
shall constitute an original.
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12. COMPLIANCE WITH ECONOMIC SANCTIONS IN RESPONSE TO RUSSIA'S
ACTIONS IN UKRAINE.
When funding for the services is provided, in whole or in part, by an agency controlled of the State
of California, Contractor shall fully and adequately comply with California Executive Order N-6-22
(“Russian Sanctions Program”). As part of this compliance process, Contractor shall also certify
compliance with the Russian Sanctions Program by completing the form located in Exhibit “C”
(Russian Sanctions Certification), attached hereto and incorporated herein by reference.
Contractor shall also require any subContractors to comply with the Russian Sanctions Program
and certify compliance pursuant to this Section.
13. FEDERAL PROVISIONS
Since funding for the Services is provided, in whole or in part, by the Federal Aviation
Administration, Supplier shall also fully and adequately comply with the provisions included in
Exhibit “D” attached hereto and incorporated herein by reference (“Federal Provisions”). With
respect to any conflict between such Federal Provisions and the terms of this Agreement and/or
the provisions of state law, the more stringent requirement shall control.
[SIGNATURES ON NEXT PAGE]
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SIGNATURE PAGE TO CONTRACT SERVICES AGREEMENT
BY AND BETWEEN THE CITY OF PALM SPRINGS AND CVL ECONOMICS LLC
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates stated
below.
CONTRACTOR:
By: _____________________________ By: _____________________________
Signature Signature
(2nd signature required for Corporation)
Date: ___________________________ Date: ___________________________
CITY OF PALM SPRINGS:
APPROVED BY CITY COUNCIL:
Date: _______ Item No. ________ Agreement No. _________
APPROVED AS TO FORM: ATTEST:
By: _____________________________ By: _____________________________
City Attorney City Clerk
APPROVED:
By: _____________________________ Date: ____________________________
City Manager – over $50,000
Deputy/Assistant City Manager – up to $50,000
Director – up to $25,000
Manager – up to $5,000
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7/24/2024 7/24/2024
24P168
7/26/2024
07/25/2024 1-A
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EXHIBIT “A”
SCOPE OF SERVICES/WORK
Including,
Schedule of Fees
And
Schedule of Performance
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SCOPE OF WORK
1.0 Background:
A. The Contractor will perform economic development consulting services in two parts.
Under the first part of the scope the Contractor will complete an Economic
Development Strategic Plan (EDSP) for the City of Palm Springs (City).
B. Purpose of Economic Development Strategic Plan:
1. The EDSP will provide a roadmap to the City and the Office of Economic
Development for strategies, incentives and interventions that can be implemented
in the City.
2. The time frame for these elements should be considered over the near-term
(“near,” within one to two years) midterm (“mid,” three - five years) and long term
(“long” ten – fifteen years plus).
3. The EDSP should build on the City’s Vision, and create a Mission, Focus Areas
(“Pillars”), Objectives, Goals and Tactics that inform the delivery of Economic
Development programs, policies and projects for the City.
C. Under Part 2 the Contractor will conduct an annual economic impact study (EIS) Palm
Springs International Airport (PSP), owned by the City of Palm Springs. The Palm
Springs International Airport (“PSP””) is a small hub airport that provides an unrivaled
experience for all who travel to the Coachella Valley. PSP ranks 88th on the busiest
airport in the United States as measured by ACI 2022 North America passenger traffic
and is the 17th busiest small hub airport. In calendar year 2023, Approximately 1.6
million passengers enplaned at PSP, with 31% of them originating their journeys from
the Coachella Valley.
D. The results of both studies will be used in a variety of ways to assess the individual
and shared work of the City and the Airport and will serve as a foundation for
communication with the general public, media, and elected officials on Economic
Development and Airport related economic impact. Additionally, this information will
inform both City and Airport staff decision making, grant requests, and outreach efforts.
It is imperative that the methodology used in both studies is transparent, sound, and
consistent with industry best practices. The methodology in this study must reconcile
the methodology employed by other economic development strategic plans, and
economic impact studies conducted by local and regional agencies. This is of
particular importance in the conclusions reached in the economic impact analysis to
avoid double stating or inaccurately quantifying economic benefit of the Airport.
E. Purpose of Economic Impact Analysis for Airport:
1. The purpose of the study is to assess and analyze the economic contributions of
PSP to the local and regional economy:
2. Evaluate the economic impact of PSP on the local and regional economy, including
direct, indirect, and induced effects.
3. Identify key economic indicators such as employment, payroll, output, and tax
revenue generated by airport-related activities.
4. Analyze the economic benefits derived from passenger travel, cargo operations,
and airport-related businesses.
5. Assess the airport's role in supporting tourism, business development, and job
creation in the region.
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F. The City of Palm Springs assumes work in Part 1 (EDSP) will inform work in Part 2
(EIS) that will optimize use and offer cost savings of the Contractor’s time. Since Part
2 completion date is earlier than Part 1 optimization of data collection and economic
analyses from ) Part 2 (EIS)work should be considered for completion of Part 1 (EDSP;
if suitable, the first year of Part 2 (EIS) can be a major technical appendix to Part 1
report. If added as a technical appendix to Part 1, subsequent years of Part 2 should
be considered addendums to the EDSP.
1.1 Scope:
A. Part 1 – Economic Development Strategic Plan Services (EDSP):
1. In order to complete the EDSP, The Contractor will conduct situational and other
analyses of the general economic condition of the City, as it relates to tax
revenues, real estate development opportunities, land condition and land use, as
well as other conditions described herein. In addition, The Contractor will facilitate
and present to a number of stakeholder and City Council meetings.
2. Summary of Scope Activities for the development of the EDSP are outlined in the
following tasks below:
a. Task 1.0 – General description and summary of meetings, facilitations, and
site visit requirements to develop the plans, processes and work products that
will lead to the completion of an Economic Development Strategic Plan (to
include Vision, Mission, Focus Area (“Pillars”), Objectives, Goals and Tactics):
1) Task 1.1 – Kickoff Meeting
i. No more than two weeks from the start of work, facilitate a kickoff
meeting with internal project stakeholders (as mutually determined
with the City) to establish baseline expectations for ongoing work;
ii. Kickoff meeting will cover topics including but not limited to:
communication channels to ensure timely and quality of delivery of
project tasks and deliverables; define key stakeholders and
stakeholder groups; ordering of project objectives including project
tasks, methodology, schedule, deliverables, protocols and
identification of necessary amendments to the scope of work that may
result from the discussion at the kickoff meeting;
iii. Project contacts will be identified for both the Contractor and the City.
2) Task 1.2 – Document Review
i. Prior to the kickoff meeting, prepare and review a list of publicly
available data and relevant reports, including – but not limited to -
area and comprehensive plans, business surveys, previous
demographic/market studies, economic outlooks, and real estate
industry reports (including that of competitive submarkets) to inform
understanding of conditions in Palm Springs, including the Palm
Springs Airport Master Plan and the Palm Springs Convention Center
Master Plan;
ii. Identify gaps in background information and resolve with the City at
kickoff meeting.
iii. Review these documents and use them to inform the work product of
the EDSP.
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3) Task 1.3 – Site Visit
Conduct site visits to gather field data based on City boundaries, including
an observational assessment of the public and private realms including but
not limited to vacant land and buildings, parks and other community assets,
built form, land use, building typology and vernacular, as well as any other
field data required to complete the work product of the EDSP.
4) Task 1.4 – Vision/Pillars/Objectives Setting Workshops
i. Facilitate at least one in-person session with each of the stakeholder
groups (not to exceed six stakeholder groups unless otherwise
agreed upon identified in the kickoff meeting to help develop and
define the Vision/Pillars/Objectives of the EDSP at a time conducive
to each of the stakeholders ability to participate.
ii. Different Stakeholder groups to consider include:
Public bodies and officials such as the Palm Springs City Council
and Commissions; internal City leadership and department heads;
other non-governmental organizations (NGOs) (e.g., Coachella
Valley Association of Governments);
Community organizations, such as Chambers of Commerce,
professional organizations, non-profit organizations, neighborhood
organizations, and other community based organizations;
Hospitality sector organizations, including Convention Center and
Visit Greater Palm Springs, Palm Springs Tourism, and private
hospitality organizations (e.g. Palm Springs Hospitality
Association);
Retail, restaurant and other commercial service for-profit
organizations, companies, owners and managers;
Industrial and other commercial organizations including companies,
owners and managers;
Airport and other institutional facilities such as healthcare,
hospitals, or other;
Diversity equity and inclusion (DEI), non-traditional, non-English
speaking and other underserved communities.
5) Task 1.5 – City Council interviews
Facilitate one interview with each City Council member to discuss the
Mission and Focus Areas, along with any other relevant information to the
study, to be scheduled in cooperation with the City, wherein findings f rom
the interviews will be incorporated in to the final EDSP.
6) Task 1.6 – Feedback from the City
i. The City shall provide feedback on the draft report provided by the
Contractor;
ii. The Contractor shall Incorporate all feedback, when agreed upon,
into the work product of the EDSP.
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7) Task 1.7 – City Council Presentations
i. The Contractor shall conduct up to two in-person presentations (as
determined in prior tasks) to the City Council and conduct City Council
outreach through interviews in coordination with City’s project
manager, to include;
Present an overview of the initial findings and stakeholder feedback
and seek input from City Council on various elements of the results
of work from Section A, Tasks 1.0-2.6; this to be scheduled in
cooperation with the City’s project manager;
Final presentation of report to include review of report, data, and
supporting information to be scheduled in coordination with the
City’s project manager.
b. Task 2.0 – Conduct situational analyses and assessments; research
current City economic conditions; conduct and complete strengths,
weaknesses, opportunities, and threats analysis (SWOT) (or current industry
alternative):
1) Task 2.1 – Physical environment assessment
i. Gather field data on existing conditions of key commercial districts and
corridors;
ii. Assess major economic assets such as hospitality facilities, office
campuses, manufacturing facilities, renewable energy, health care,
education and other institutional assets, visitor destinations, including
the Palm Springs International Airport and Palm Springs Convention
Center;
iii. Assess the strengths and weaknesses of the public realm, private,
realm, and accessibility/visibility of each economic cluster:
iv. Evaluate the public realm, including roadways, sidewalks, bridges, rails
and trails, and public spaces that support access to, and mobility within
and across, communities;
v. Evaluate the private realm, including private assets, properties and
buildings, land, vacancies, and the balance of the physical
environment, including tribal land opportunities;
vi. Evaluation of the private realm will consider existing built assets and
the location and site location characteristics (access to customer base,
proximity to existing nodes, the ability to create sufficient concentration
of offerings to support a new node) of underutilized opportunity sites as
well as underlying ownership.
2) Task 2.2. – Business and economic activity assessment
i. Explore and analyze the “drivers” of the Palm Springs economy, and
include analyses of the sustainability of the current business and
economic environment, as well as the employment and workforce
environment, within the City and include;
ii. Explore and analyze the major employers, current and future economic
indicators of current employers, “health” of current employment, and
identify potential targets of employment;
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iii. Identify employers’ employment goals based on feedback from
employers, and;
iv. Review and assess the current and future health of the City workforce;
both the workforce that supports the current economic model, as well
as what workforce requirements and gaps exist to support future goals
of the EDSP.
v. Assess industry clusters and develop asset maps that identify key
business anchors (across sectors and industries) that drive economic
activity and influence commercial and business activity;
vi. Determine if there are any competitive sectors/industries that would
benefit from a focused incentive strategy in the future, and identify best
industry target opportunities that support the EDSP;
vii. Identify, collect and compile a list of incentives, programs,
opportunities and resources offered by local, regional, state and
federal partners in economic development and identify incentive gaps
related to the Palm Springs market;
viii. Assess the seasonality of the market, and make recommendations
pursuant to expanding the shoulder season, as well as determine
strategies for more robust, sustainable, year-round economic growth.
3) Task 2.3 – Conduct asset analyses of available land, commercial real
estate, and review capital markets
i. Analyze qualitative and quantitative data to understand the supply and
demand of built commercial real estate and land in the region, which
may or may not include multifamily mixed-use opportunities;
ii. Identify if, and how much, latent demand exists in the Palm Springs
market for new hospitality, office, retail, and industrial development;
iii. Research vacancy rates, construction rates, product type, price points,
quality of space, and future competition into its analysis of latent
demand, including the possibility of demolition of structures beyond
their economic utility;
iv. Analyze quantitative and qualitative data, reports, industry journals,
and other financial information sources to determine:
v. Current state of capital markets (debt, equity, funds, venture capital,
REITS, other investment funds, alternative capital);
vi. Project, as much as is reasonably possible, where capital investments
will be focused in the each of the time frames outlined above;
vii. Review and summarize the current equity and debt markets for all
sectors, with a special focus in hospitality, and project, as much as is
reasonably possible, access to capital risks that may require
intervention/incentives by the City;
viii. Meet with the City’s Financial Consultant and the City’s Director of
Finance to confer on various matters that may affect the
implementation of Economic Development activities under this plan.
City staff will coordinate schedules to complete this task.
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4) Task 2.4 - Research and summarize global, national, state and
regional economic, industry and market trends as they pertain to the
development of a cohesive EDSP relative to the economy of Palm
Springs
i. Research industry-wide changes in business operations, business
travel, and trends that serve as indicators for how consumer
tastes/preferences are evolving;
ii. The trend assessment will analyze data from a variety of sources,
including, but not limited to:
Real Estate Brokerage Experts (via CBRE)
Real Estate Market Outlook Reports (e.g. JLL, Colliers, Newmark)
Capital providers Reports/Professional Journals
Data from Visit Greater Palm Springs and other reputable Travel
Associations
World Travel and Tourism Council
Destination Analysts
Tourism Economics (Annual Economic Impact Reports)
Other publicly available reporting.
c. Task 3.0 –Conduct review of regulatory and administrative capacity of
the City Palm Springs Office of Economic Development
1) Analyze the organizational capacity of the City to execute and implement
economic development programs and initiatives;
2) Identify additional resources and funding that may be needed to
successfully support implementation of strategies;
3) Assess the existing regulatory framework and environment (including, but
not limited to, zoning and permitting/licensing processes) that inhibit
economic growth, including;
i. Interface with the current zoning code Contractor’s team (to be
identified in the Kickoff meeting) and determine, with them, what
information needs to be shared across studies that result in ideal
regulatory strategies and tools;
4) Create and deliver and compile the results of at least one (1) online survey
that will be delivered, with assistance from the City to all business license
holders in the City. Survey will include seeking general feedback about the
regulatory, permitting and licensing processes;
5) Include results of survey and make recommendations that address the
concerns in the EDSP objectives, strategies or tasks.
d. Task 4.0 – Conduct review of tax environment and current and future
revenue analyses
1) Task 4.1 –Tax and revenue environment analyses
i. Work with current Sales Tax analysis report as well as conduct new
analyses of TOT, sales and property tax performance (including a
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breakdown by major business categories and industry
sectors/clusters) to include:
A sales tax gap leakage analysis: includes consumer demand and
market supply assessment to evaluate revenue tax performance
within the City and ability to draw consumers from nearby
communities and the greater trade area;
A void analysis to identify market opportunities for Palm Springs to
attract new commercial and retail possibilities that would be a good
fit within the City;
Identify future revenue enhancement opportunities based on the
targets identified in the study, and/or identify the targets that provide
the greatest revenue enhancement opportunities in the City;
A SWOT analysis (or other current industry analysis) of the revenue
environment vis-à-vis market projections and growth opportunities
identified herein (this can be a subsection of the overall SWOT) .
ii. Review, identify and summarize other City revenue opportunities and
strategies, both current and future, including current state-of-the-
industry value-capture mechanisms and other tools and incentives
that may be available to the City to enhance revenue.
B. Part 2 - Economic Impact Analysis for Palm Springs International Airport
The Contractor shall provide the following services:
1. Data Collection and Analysis:
a. Develop a work plan which includes milestones and a timeline.
b. Collect data on passenger traffic, cargo volumes, aircraft operations, and
airport-related businesses.
c. Gather information on employment, wages, output, and tax contributions of
airport activities.
d. Utilize economic modeling techniques to estimate and/or review the direct,
indirect, and induced economic impacts.
e. Measure economic and non-aviation activity through input/output modeling,
impact of earnings, job creation and/or loss
f. Provide understanding related to return and investment to local and regional
economy. Determine statistic of $1 taxpayer investment = $1 return
g. Measure the economic impact (positive, neutral, or adverse) on nearby real-
estate (residential, commercial, industrial, etc.)
h. Study should consider social, environmental, and economic consequences of
economic operational growth or decline of the airport
2. Socioeconomic Analysis:
a. Evaluate the demographic profile of passengers, employees, and businesses
associated with PSP.
b. Assess the distribution of economic benefits across various sectors and
population groups.
3. Data Analysis and Verification:
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a. Analyze the collected data to identify any discrepancies or inconsistencies
between physical counts and existing records.
b. Verify the accuracy of asset descriptions, locations, and other relevant
information through on-site inspections and documentation review.
4. Forecasting:
a. To the extent possible use and incorporate passenger traffic and cargo volume
forecasts from Master Plan Study and FIS Study.
b. Develop forecast of economic contributions based on historical trends and
anticipated on-airport capital developments, projects and new programs.
5. Executive Summary and Written Report:
a. Prepare a comprehensive executive summary highlighting key findings,
methodologies, and conclusions.
b. Deliver a detailed written report outlining the methodology, data sources,
analysis, and results of the economic impact study.
6. Annual Briefings:
a. Conduct annual briefings for the City Council and the Airport Commission to
present the findings of the economic impact study.
b. Engage stakeholders and address any questions or concerns regarding the
study results.
1.2 Deliverables:
The Contractor shall deliver the following key deliverables:
A. Part 1 – EDSP
1. Task 5.0 – Draft Conditions Report; Design, Draft and Complete an Economic
Development Strategic Plan Report, Revisions, and Final Report
a. Task 5.1 Technical appendices and results of SWOT and other analyses:
i. Not later than December 31, 2024 draft and deliver a technical appendices
report to the City of the outcomes of research and analysis conducted in the
work in Tasks 2.0-4.0. The Contractor shall deliver the technical report in
concert with the EDSP, such that:
Details of the report shall include and qualitative and quantitative data in
the form of graphs, charts, tables, illustrations, graphics and other data
presentation techniques that produce in-depth, but also digestible,
information;
The technical appendices will identify sets of measurable economic
development key performance indicators for the City that can be used
to measure progress and success rate of goals, projects, programs and
incentives;
Elicit feedback from stakeholders and community subject matter experts
(SME)s on KPIs, that include measurements or ratios appropriate to the
targeted sector, (e.g. hospitality - a 10% increase in average daily rate
(ADR).
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Where projections are required, clearly identify and explain the basis or
assumptions for the projection;
The technical appendices shall compliment and support the outcomes
of the EDSP.
b. Task 5.2 – Research and Draft Final Report of Strategies for Economic
Development
i. Not later than February 1, 2025, the Contractor will draft and deliver a draft
EDSP that includes the City of Palm Springs’s Economic Development
Mission, Pillars, Objectives, Goals and work plan that accurately and
realistically reflects the capacity, ability and economic environment
researched and assessed throughout the course of the work which will guide
Economic Development activities for near, mid and long term time frames
identified above, such that:
Develop, articulate and create the City’s Economic Development
Mission based on stakeholder meetings;
Develop and identify focus areas (“Pillars”) that will guide the City of
Palm Springs Economic Development work in the near, mid and long
term in concert with the Vision and Mission based on stakeholder
meetings as well as analyses and assessments conducted during the
work;
Develop and identify objectives that act as strategies in support of the
Pillars that reflect BMPs of comparable municipalities;
Identify goals and tactics that support the Pillars and that inform the
scope and work plan of the Office of Economic Development that reflect
the current and future administrative capacity of the City.
Identify geographic areas where focused investments would benefit a
neighborhood, community or Citywide activities which may include
specific opportunities for acquisition of parcels or sites;
EDSP may include, but is not limited to, the following areas:
ii. Redevelopment in the public realm: Includes any improvements to existing
transportation networks, public utility extensions, placemaking/tactical
improvements, public space capital projects, and signage and wayfinding;
iii. Redevelopment in the private realm: includes programmatic interventions to
support and/or incentivize private sector investments in real property
improvements;
iv. Budget requirements for the near, mid and long term strategies;
v. Land acquisition or disposition strategies based on the research conducted
during the scope;
vi. Responsible and fiscally prudent value capture mechanisms and incentive
programs;
vii. Business retention and attraction programs: may include recommendations
or updates to current or new programs that support business attraction,
expansions, and relocation (e.g. workforce training, relocation incentives,
and other);
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viii. Workforce training, workforce readiness and other workforce dynamics
required to support the outcomes of the EDSP;
ix. Marketing and promotion: include tools that will increase visits and raise
awareness of the City of Palm Springs’s assets and retail/dining offerings,
particularly through digital platforms;
x. Administrative capacity: includes strategies to address issues of
administrative/operative capacity that might otherwise impede
implementation of strategies (including capacity-building programs and
partnerships with anchor businesses);
xi. Regulatory and zoning issues that may impede business growth and vitality
with recommendations for improvements when warranted (see Task 3.0).
2. Task 5.3 – Produce Economic Development Content for Multichannel
Distribution & Marketing to Economic Development Customers, Partners
and General Public
i. Produce data, maps, graphs, text, tools and any other information useful to
marketing to any targets or stakeholders identif ied in the research;
ii. Develop and collect that information in such a way that a part, any, or of it
can serve in future marketing tools and communications to help generate
interest in Palm Springs as a business location from potential businesses,
investors, funders, and founders.
3. Task 5.4 – The Contractor shall facilitate and conduct City Council
working session
i. Produce graphically pleasing presentation slide deck that summarizes the
outcomes of all work to date, and present draft Economic Development
Strategic Plan Vision, Mission, Pillars and Objectives. Receive feedback
from the City and incorporate feedback in to final presentation report.
4. Task 5.5 – Finalize and Present Economic Development Strategic Plan
i. Incorporate feedback from the interviews with the City of Palm Springs
Council to create a Final Report on Strategies for Economic Development
ii. Present the report, it’s findings, and any other relevant information to the
City of Palm Springs Council, and report will include, but not limited to the
following:
Cohesive and graphically pleasing slide deck, or other form of visual
presentation, along with the written EDSP, all of which shall be of the
quality and style that is useful and easy to read, along with appealing
graphics and images;
Data, graphs, charts, analysis, and tables that support the conclusions;
Images, maps, plans, or other tools identified in the research;
Conclusions and summaries that guide the City in its Economic
Development activities;
Recommendations on near, mid and long term objectives, strategies,
goals and tactics that the City will incorporate into its Economic
Development work plan;
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Recommendations on City investments including staffing,
administration, operations, incentives, budgets, acquisitions and any
other use of public funds identified in the research.
B. Part 2 – EIS
1. Executive Summary: A concise summary highlighting the key findings and
conclusions of the study.
2. Written Report: A detailed report documenting the methodology, analysis, and
results of the economic impact study.
3. Annual Briefings: Presentations to the City Council and the Airport Commission
summarizing the findings and implications of the study.
1.3 Schedule:
The schedule for Part 1 EDSP - a technical appendices will be due on December 31,
2024, and a draft of EDSP (which includes the technical appendices) will be due by
February 1, 2025. A final report will be completed within 60 days of the review of the
draft document by the City Council.
The schedule for Part 2 EIS - it is anticipated the Airport EIS will be started immediately
upon execution of an agreement and commenced in July of each subsequent year
through the term of the agreement. Work for year one should be completed not later
than December 31 of 2024. PSP intends for this study to be retrospective for FY 2024
which ends on June 30th, 2024. The Contractor may pull for recent study data to
facilitate efficiency in this process. The timing of the subsequent annual report shall be
negotiated between PSP and the Contractor. PSP expects that the subsequent reports
be completed no later than November 30th of each year.
1.4 Compensation:
Work will be compensated on a lumpsum basis for each set of deliverables shown in the
contract pricing. Contract pricing includes all labor, expenses, and incidentals to
complete the work outlined in the contract scope. The Contractor may request monthly
payments based on the percentage of work completed for the previous month as long
as a detailed progress report is provided to support the amount requested. No additional
compensation will be due by the City unless the contract is modified for additional work
requested by the City.
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EXHIBIT “B”
INSURANCE PROVISIONS
Including
Verification of Coverage,
Sufficiency of Insurers,
Errors and Omissions Coverage,
Minimum Scope of Insurance,
Deductibles and Self-Insured Retentions, and
Severability of Interests (Separation of Insureds)
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INSURANCE
1. Procurement and Maintenance of Insurance. Contractor shall procure and
maintain public liability and property damage insurance against all claims for injuries against
persons or damages to property resulting from Contractor’s performance under this
Agreement. Contractor shall procure and maintain all insurance at its sole cost and
expense, in a form and content satisfactory to the City, and submit concurrently with its
execution of this Agreement. Contractor shall also carry workers’ compensation insurance
in accordance with California workers’ compensation laws. Such insurance shall be kept in
full force and effect during the term of this Agreement, including any extensions. Such
insurance shall not be cancelable without thirty (30) days advance written notice to City of
any proposed cancellation. Certificates of insurance evidencing the foregoing and
designating the City, its elected officials, officers, employees, agents, and volunteers as
additional named insureds by original endorsement shall be delivered to and approved by
City prior to commencement of services. The procuring of such insurance and the delivery
of policies, certificates, and endorsements evidencing the same shall not be construed as a
limitation of Contractor’s obligation to indemnify City, its elected officials, officers, agents,
employees, and volunteers.
2. Minimum Scope of Insurance. The minimum amount of insurance required
under this Agreement shall be as follows:
1. Comprehensive general liability and personal injury with limits of at least one
million dollars ($1,000,000.00) combined single limit coverage per occurrence and two
million dollars ($2,000,000) general aggregate;
2. Automobile liability insurance with limits of at least one million dollars
($1,000,000.00) per occurrence;
3. Professional liability (errors and omissions) insurance with limits of at least one
million dollars ($1,000,000.00) per occurrence and two million dollars ($2,000,000) annual
aggregate is:
_________ required
___x_____ is not required;
4. Workers’ Compensation insurance in the statutory amount as required by the State
of California and Employer’s Liability Insurance with limits of at least one million dollars $1
million per occurrence. If Contractor has no employees, Contractor shall complete the City’s
Request for Waiver of Workers’ Compensation Insurance Requirement form.
3. Primary Insurance. For any claims related to this Agreement, Contractor’s
insurance coverage shall be primary with respect to the City and its respective elected
officials, officers, employees, agents, and volunteers. Any insurance or self-insurance
maintained by City and its respective elected officials, officers, employees, agents, and
volunteers shall be in excess of Contractor’s insurance and shall not contribute with it. For
Workers’ Compensation and Employer’s Liability Insurance only, the insurer shall waive all
rights of subrogation and contribution it may have against City, its elected officials, officers,
employees, agents, and volunteers.
4. Errors and Omissions Coverage. If Errors & Omissions Insurance is required,
and if Contractor provides claims made professional liability insurance, Contractor shall also
agree in writing either (1) to purchase tail insurance in the amount required by this
Agreement to cover claims made within three years of the completion of Contractor’s
services under this Agreement, or (2) to maintain professional liability insurance coverage
with the same carrier in the amount required by this Agreement for at least three years after
completion of Contractor’s services under this Agreement. Contractor shall also be required
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to provide evidence to City of the purchase of the required tail insurance or continuation of
the professional liability policy.
5. Sufficiency of Insurers. Insurance required in this Agreement shall be provided
by authorized insurers in good standing with the State of California. Coverage shall be
provided by insurers admitted in the State of California with an A.M. Best’s Key Rating of
B++, Class VII, or better, unless otherwise acceptable to the City.
6. Verification of Coverage. Contractor shall furnish City with both certificates of
insurance and endorsements, including additional insured endorsements, effecting all of the
coverages required by this Agreement. The certificates and endorsements are to be signed
by a person authorized by that insurer to bind coverage on its behalf. All proof of insurance
is to be received and approved by the City before work commences. City reserves the right
to require Contractor’s insurers to provide complete, certified copies of all required insurance
policies at any time. Additional insured endorsements are not required for Errors and
Omissions and Workers’ Compensation policies.
Verification of Insurance coverage may be provided by: (1) an approved General and/or
Auto Liability Endorsement Form for the City of Palm Springs or (2) an acceptable Certificate
of Liability Insurance Coverage with an approved Additional Insured Endorsement with the
following endorsements stated on the certificate:
A. "The City of Palm Springs, its officials, employees, and agents are named as an
additional insured…” ("as respects City of Palm Springs Contract No.___" or "for any and
all work performed with the City" may be included in this statement).
B. "This insurance is primary and non-contributory over any insurance or self-
insurance the City may have..." ("as respects City of Palm Springs Contract No.___" or "for
any and all work performed with the City" may be included in this statement).
C. "Should any of the above described policies be canceled before the expiration date
thereof, the issuing company will mail 30 days written notice to the Certificate Holder
named." Language such as, “endeavor to” mail and "but failure to mail such notice shall
impose no obligation or liability of any kind upon the company, its agents or representative"
is not acceptable and must be crossed out.
D. Both the Workers’ Compensation and Employers' Liability policies shall contain the
insurer's waiver of subrogation in favor of City, its elected officials, officers, employees,
agents, and volunteers.
In addition to the endorsements listed above, the City of Palm Springs shall be named the
certificate holder on the policies.
All certificates of insurance and endorsements are to be received and approved by the City
before work commences. All certificates of insurance must be authorized by a person with
authority to bind coverage, whether that is the authorized agent/broker or insurance
underwriter. Failure to obtain the required documents prior to the commencement of work
shall not waive the Contractor’s obligation to provide them.
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7. Deductibles and Self-Insured Retentions. Any deductibles or self-insured
retentions must be declared to and approved by the City prior to commencing any work or
services under this Agreement. At the option of the City, either (1) the insurer shall reduce
or eliminate such deductibles or self-insured retentions with respect to the City, its elected
officials, officers, employees, agents, and volunteers; or (2) Contractor shall procure a bond
guaranteeing payment of losses and related investigations, claim administration, and
defense expenses. Certificates of Insurance must include evidence of the amount of any
deductible or self-insured retention under the policy. Contractor guarantees payment of all
deductibles and self-insured retentions.
8. Severability of Interests (Separation of Insureds). This insurance applies
separately to each insured against whom claim is made or suit is brought except with respect
to the limits of the insurer’s liability.
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EXHIBIT “C”
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Exhibit “D”
FEDERAL AVIATION ADMINISTRATION
FEDERAL PROVISIONS
Provision
Reference Provision Description
Page
No.
FAA - 01 Access to Records and Reports 2
FAA - 02 Affirmative Action Requirement * 3
FAA – 03 Breach of Contract Terms 5
FAA – 04 Buy American Preference * 6
FAA – 05 Civil Rights General 7
FAA – 06 Civil Rights – Title VI Assurances * 8
FAA – 07 Clean Air and Water Pollution Control 11
FAA – 08 Contract Work Hours and Safety Standards Act Requirements 12
FAA – 09 Copeland Anti-Kickback Act 14
FAA – 10 Davis Bacon Requirements 15
FAA – 11 Debarment and Suspension * 22
FAA – 12 Disadvantaged Business Enterprise * 23
FAA – 13 Distracted Driving 25
FAA – 14 Prohibition on Certain Telecommunications and Video
Surveillance Services or Equipment
26
FAA – 15 Drug Free Workplace Requirements (not applicable to
Contractors)
27
FAA – 16 Equal Employment Opportunity 28
FAA – 17 Federal Fair Labor Standards Act * 36
FAA – 18 Lobbying and Influencing Federal Employees 37
FAA – 19 Prohibition of Segregated Facilities 38
FAA – 20 Occupational Safety and Health Act of 1970 39
FAA – 21 Procurement of Recovered Materials * 40
FAA – 22 Right to Inventions 41
FAA – 23 Seismic Safety 42
FAA – 24 Tax Delinquency and Felony Convictions* 43
FAA – 25 Termination of Contract 44
FAA – 26 Trade Restriction Certification (Foreign) * 45
FAA – 27 Veteran’s Preference 47
FAA – 28 Domestic Preferences for Procurements * 48
*Solicitation Clause also
Updated 5.24.2023
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FAA - 01 Access to Records and Reports
APPLICABILITY – pertains to all contracts.
The Contractor must maintain an acceptable cost accounting system. The Contractor agrees to
provide the City, the Federal Aviation Administration and the Comptroller General of the United
States or any of their duly authorized representatives access to any books, documents, papers
and records of the Contractor which are directly pertinent to the specific contract for the purpose
of making audit, examination, excerpts and transcriptions. The Contractor agrees to maintain all
books, records and reports required under this contract for a period of not less than three years
after final payment is made and all pending matters are closed.
Reference: 2 CFR § 200.334, 2 CFR § 200.337, FAA Order 5100.38
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FAA - 02 Affirmative Action Requirement
NOTICE OF REQUIREMENT FOR AFFIRMATIVE ACTION TO
ENSURE EQUAL EMPLOYMENT OPPORTUNITY
APPLICABILITY – pertains to all contracts over $10,000 as follows:
Construction – AIP funded construction work contracts and subcontracts that exceed $10,000.
Construction work means construction, rehabilitation, alteration, conversion, extension,
demolition or repair of buildings, highways or other changes or improvements to real property,
including facilities providing utility services. The term also includes the supervision, inspection
and other onsite functions incidental to the actual construction.
Equipment – any equipment project exceeding $10,000 that involves installation of equipment
onsite (e.g., electrical vault equipment). This provision does not apply to equipment acquisition
projects where the manufacture of the equipment takes place offsite at a manufacturer’s plant
(e.g., firefighting and snow removal vehicles).
Professional Services – any professional service agreement if the professional services
agreement includes tasks that meet the definition of construction work [as defined by the U.S.
Department of Labor (DOL)] and exceeds $10,000. Examples include installation of monitoring
systems (e.g., noise, environmental, etc.).
Property/Land – any agreement associated with land acquisition if the agreement includes
construction work (defined above) that exceeds $10,000. Examples include demolition of
structures or installation of boundary fencing.
REQUIREMENTS -
1. The Contractor’s attention is called to the “Equal Opportunity Clause” and the “Standard
Federal Equal Employment Opportunity Construction Contract Specifications” set forth herein.
2. The goals and timetables for minority and female participation, expressed in percentage
terms for the Contractor’s aggregate workforce in each trade on all construction work in the
covered area, are as follows:
Timetables
Goals for minority participation for each trade: n/a
Goals for female participation in each trade: n/a
These goals are applicable to all of the Contractor’s construction work (whether or not it is
Federal or federally assisted) performed in the covered area. If the Contractor performs
construction work in a geographical area located outside of the covered area, it shall apply the
goals established for such geographical area where the work is actually performed. With regard
to this second area, the Contractor also is subject to the goals for both its federally involved and
nonfederally involved construction.
The Contractor’s compliance with the Executive Order and the regulations in 41 CFR Part 60-4
shall be based on its implementation of the Equal Opportunity Clause, specific affirmative action
obligations required by the specifications set forth in 41 CFR 60-4.3(a) and its efforts to meet
the goals. The hours of minority and female employment and training must be substantially
uniform throughout the length of the contract, and in each trade, and the Contractor shall make
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a good faith effort to employ minorities and women evenly on each of its projects. The transfer
of minority or female employees or trainees from Contractor to Contractor or from project to
project for the sole purpose of meeting the Contractor’s goals shall be a violation of the contract,
the Executive Order and the regulations in 41 CFR Part 60-4. Compliance with the goals will be
measured against the total work hours performed.
3. The Contractor shall provide written notification to the Director of the Office of Federal
Contract Compliance Programs (OFCCP) within 10 working days of award of any construction
subcontract in excess of $10,000 at any tier for construction work under the contract resulting
from this solicitation. The notification shall list the name, address, and telephone number of the
subcontractor; employer identification number of the subcontractor; estimated dollar amount of
the subcontract; estimated starting and completion dates of the subcontract; and the
geographical area in which the subcontract is to be performed.
4. As used in this notice and in the contract resulting from this solicitation, the “covered area” is
California, Riverside County, Palm Springs.
Reference: 41 CFR Part 60-4
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FAA – 03 Breach of Contract
APPLICABILITY – required for all contracts that exceed the simplified acquisition threshold as
stated in 2 CFR Part 200, Appendix II (A). This threshold is occasionally adjusted for inflation and
is $250,000.
REQUIREMENT -
See Section 4.5 of the Agreement.
Reference: 2 CFR § 200 Appendix II(A)
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FAA – 04 Buy American Preferences
APPLICABILITY – required for contracts defined as follows:
Construction Projects involving the replacement, rehabilitation, reconstruction of
airfield surfaces such as on runways, taxiways, taxilanes, aprons, roadways, parking
lots, etc. – Insert the Certificate of compliance to FAA Buy American Preference based
on Construction Projects.
Equipment and Buildings Projects involving and including the acquisition of
equipment such as snow removal equipment, navigational aids, wind cones, and the
construction of buildings such as hangars, terminal development, lighting vaults, aircraft
rescue & firefighting buildings, etc. - Insert the Certificate of Compliance with FAA Buy
American Preference Based on Equipment/Building Projects.
REQUIREMENT -
The Contractor certifies that all constructions materials, defined to mean an article, material, or
supply other than an item of primarily iron or steel; a manufactured product; cement and
cementitious materials; aggregates such as stone, sand, or gravel; or aggregate binding agents
or additives that are or consist primarily of: non-ferrous metals; plastic and polymer-based
products (including polyvinylchloride, composite building materials, and polymers used in fiber
optic cables); glass (including optic glass); lumber; or drywall used in the project are manufactured
in the U.S.
Reference: Title 49 USC § 50101
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FAA – 05 Civil Rights General
APPLICABILITY – required for all contracts regardless of funding source.
REQUIREMENT -
In all its activities within the scope of its airport program, the Contractor agrees to comply with
pertinent statutes, Executive Orders, and such rules as identified in Title VI List of Pertinent
Nondiscrimination Acts and Authorities to ensure that no person shall, on the grounds of race,
color, national origin (including limited English proficiency), creed, sex (including sexual
orientation and gender identity), age, or disability be excluded from participating in any activity
conducted with or benefiting from Federal assistance. The above provision binds the Contractor
and subcontractors from the bid solicitation period through the completion of the contract.
This provision is in addition to that required by Title VI of the Civil Rights Act of 1964.
Reference: 49 USC § 47123
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FAA – 06 Civil Rights – Title VI Assurances
APPLICABILITY – required for all contracts.
REQUIREMENT -
Title VI List of Pertinent Nondiscrimination Acts and Authorities
During the performance of this contract, the Contractor, for itself, its assignees, and successors
in interest (hereinafter referred to as the “Contractor”) agrees to comply with the following non -
discrimination statutes and authorities; including but not limited to:
• Title VI of the Civil Rights Act of 1964 (42 USC § 2000d et seq., 78 stat. 252) (prohibits
discrimination on the basis of race, color, national origin);
• 49 CFR part 21 (Non-discrimination in Federally-Assisted programs of the Department of
Transportation—Effectuation of Title VI of the Civil Rights Act of 1964);
• The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 USC
§ 4601) (prohibits unfair treatment of persons displaced or whose property has been acquired
because of Federal or Federal-aid programs and projects);
• Section 504 of the Rehabilitation Act of 1973 (29 USC § 794 et seq.), as amended (prohibits
discrimination on the basis of disability); and 49 CFR part 27 (Nondiscrimination on the Basis of
Disability in Programs or Activities Receiving Federal Financial Assistance);
• The Age Discrimination Act of 1975, as amended (42 USC § 6101 et seq.) (prohibits
discrimination on the basis of age);
• Airport and Airway Improvement Act of 1982 (49 USC § 47123), as amended (prohibits
discrimination based on race, creed, color, national origin, or sex);
• The Civil Rights Restoration Act of 1987 (PL 100-259) (broadened the scope, coverage and
applicability of Title VI of the Civil Rights Act of 1964, the Age Discrimination Act of 1975 and
Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms “programs
or activities” to include all of the programs or activities of the Federal-aid recipients, sub-recipients
and contractors, whether such programs or activities are Federally funded or not);
• Titles II and III of the Americans with Disabilities Act of 1990 (42 USC § 12101, et seq) (prohibit
discrimination on the basis of disability in the operation of public entities, public and private
transportation systems, places of public accommodation, and certain testing entities) as
implemented by U.S. Department of Transportation regulations at 49 CFR parts 37 and 38;
• The Federal Aviation Administration’s Nondiscrimination statute (49 USC § 47123) (prohibits
discrimination on the basis of race, color, national origin, and sex);
• Executive Order 12898, Federal Actions to Address Environmental Justice in Minority
Populations and Low-Income Populations (ensures nondiscrimination against minority
populations by discouraging programs, policies, and activities with disproportionately high and
adverse human health or environmental effects on minority and low-income populations);
• Executive Order 13166, Improving Access to Services for Persons with Limited English
Proficiency, and resulting agency guidance, national origin discrimination includes discrimination
because of limited English proficiency (LEP). To ensure compliance with Title VI, you must take
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reasonable steps to ensure that LEP persons have meaningful access to your programs [70 Fed.
Reg. 74087 (2005)];
• Title IX of the Education Amendments of 1972, as amended, which prohibits you from
discriminating because of sex in education programs or activities (20 USC § 1681, et seq).
Compliance with Nondiscrimination Requirements:
During the performance of this contract, the Contractor, for itself, its assignees, and successors
in interest (hereinafter referred to as the “Contractor”), agrees as follows:
1. Compliance with Regulations: The Contractor (hereinafter includes consultants) will
comply with the Title VI List of Pertinent Nondiscrimination Acts and Authorities, as they may
be amended from time to time, which are herein incorporated by reference and made a part
of this contract.
2. Nondiscrimination: The Contractor, with regard to the work performed by it during the
contract, will not discriminate on the grounds of race, color, national origin (including limited
English proficiency), creed, sex (including sexual orientation and gender identity), age, or
disability in the selection and retention of subcontractors, including procurements of materials
and leases of equipment. The Contractor will not participate directly or indirectly in the
discrimination prohibited by the Nondiscrimination Acts and Authorities, including
employment practices when the contract covers any activity, project, or program set forth in
Appendix B of 49 CFR part 21.
3. Solicitations for Subcontracts, including Procurements of Materials and Equipment:
In all solicitations, either by competitive bidding or negotiation made by the Contractor for
work to be performed under a subcontract, including procurements of materials, or leases of
equipment, each potential subcontractor or supplier will be notified by the Contractor of the
Contractor’s obligations under this contract and the Nondiscrimination Acts and Authorities
on the grounds of race, color, or national origin.
4. Information and Reports: The Contractor will provide all information and reports required
by the Acts, the Regulations, and directives issued pursuant thereto and will permit access
to its books, records, accounts, other sources of information, and its facilities as may be
determined by the City or the Federal Aviation Administration to be pertinent to ascertain
compliance with such Nondiscrimination Acts and Authorities and instructions. Where any
information required of a Contractor is in the exclusive possession of another who fails or
refuses to furnish the information, the Contractor will so certify to the City or the Federal
Aviation Administration, as appropriate, and will set forth what efforts it has made to obtain
the information.
5. Sanctions for Noncompliance: In the event of a Contractor’s noncompliance with the non-
discrimination provisions of this contract, the City will impose such contract sanctions as it or
the Federal Aviation Administration may determine to be appropriate, including, but not
limited to:
a. Withholding payments to the Contractor under the contract until the Contractor complies;
and/or
b. Cancelling, terminating, or suspending a contract, in whole or in part.
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6. Incorporation of Provisions: The Contractor will include the provisions of paragraphs one
through six in every subcontract, including procurements of materials and leases of
equipment, unless exempt by the Acts, the Regulations, and directives issued pursuant
thereto. The Contractor will take action with respect to any subcontract or procurement as
the City or the Federal Aviation Administration may direct as a means of enforcing such
provisions including sanctions for noncompliance. Provided, that if the Contractor becomes
involved in, or is threatened with litigation by a subcontractor, or supplier because of such
direction, the Contractor may request the City to enter into any litigation to protect the
interests of the City. In addition, the Contractor may request the United States to enter into
the litigation to protect the interests of the United States.
Reference: 49 USC § 47123, FAA Order 1400.11
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FAA – 07 Clean Air/Water Pollution Control
APPLICABILITY – This provision is required for all contracts and lower tier contracts that exceed
$150,000.
REQUIREMENT -
If the Agreement exceeds $150,000, Contractor agrees to comply with all applicable standards,
orders, and regulations issued pursuant to the Clean Air Act (42 USC § 7401-7671q) and the
Federal Water Pollution Control Act as amended (33 USC § 1251-1387). The Contractor agrees
to report any violation to the City immediately upon discovery. The City assumes responsibility for
notifying the Environmental Protection Agency (EPA) and the Federal Aviation Administration.
Contractor must include this requirement in all subcontracts that exceeds $150,000.
Reference: 2 CFR § 200, Appendix II(G); 42 USC § 7401; 33 USC § 1251
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FAA – 08 Contract Work Hours and Safety Standards
APPLICABILITY – This provision is required for contracts as follows:
Contract Work Hours and Safety Standards Act Requirements (CWHSSA) (40 USC §§ 3702
& 3704) requires contractors and subcontractors on covered contracts to pay laborers and
mechanics employed in the performance of the contracts not less than one and one-half
times their basic rate of pay for all hours worked over 40 in a workweek. CWHSSA prohibits
unsanitary, hazardous, or dangerous working conditions on federally-assisted projects. The
Wage and Hour Division (WHD) within the U.S. Department of Labor (DOL) enforces the
compensation requirements of this Act, while DOL’s Occupational Safety and Health
Administration (OSHA) enforces the safety and health requirements.
Contract Types –
Construction – This provision applies to all contracts and lower tier contracts that exceed
$100,000, and employ laborers, mechanics, watchmen, and guards.
Equipment – This provision applies to any equipment project exceeding $100,000 that
involves installation of equipment onsite (e.g., electrical vault equipment). This provision
does not apply to equipment acquisition projects where the manufacture of the equipment
takes place offsite at the vendor plant (e.g., ARFF and SRE vehicles).
Professional Services – This provision applies to professional service agreements that
exceed $100,000 and employs laborers, mechanics, watchmen, and guards. This includes
members of survey crews and exploratory drilling operations.
Property – While most land transactions do not involve employment of laborers,
mechanics, watchmen, and guards, under certain circumstances, a property acquisition
project could require such employment. Examples include the installation of property
fencing or testing for environmental contamination
CONTRACT WORKHOURS AND SAFETY STANDARDS ACT REQUIREMENTS
1. Overtime Requirements.
No contractor or subcontractor contracting for any part of the contract work which may
require or involve the employment of laborers or mechanics shall require or permit any
such laborer or mechanic, including watchmen and guards, in any workweek in which he
or she is employed on such work to work in excess of forty hours in such workweek unless
such laborer or mechanic receives compensation at a rate not less than one and one-half
times the basic rate of pay for all hours worked in excess of forty hours in such workweek.
2. Violation; Liability for Unpaid Wages; Liquidated Damages.
In the event of any violation of the clause set forth in paragraph (1) of this clause, the
Contractor and any subcontractor responsible therefor shall be liable for the unpaid
wages. In addition, such contractor and subcontractor shall be liable to the United States
(in the case of work done under contract for the District of Columbia or a territory, to such
District or to such territory), for liquidated damages. Such liquidated damages shall be
computed with respect to each individual laborer or mechanic, including watchmen and
guards, employed in violation of the clause set forth in paragraph (1) of this clause, in the
sum of $29 for each calendar day on which such individual was required or permitted to
work in excess of the standard workweek of forty hours without payment of the overtime
wages required by the clause set forth in paragraph (1) of this clause.
3. Withholding for Unpaid Wages and Liquidated Damages.
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The Federal Aviation Administration (FAA) or the City shall upon its own action or upon
written request of an authorized representative of the Department of Labor withhold or
cause to be withheld, from any moneys payable on account of work performed by the
Contractor or subcontractor under any such contract or any other Federal contract with
the same prime Contractor, or any other federally-assisted contract subject to the Contract
Work Hours and Safety Standards Act, which is held by the same prime Contractor, such
sums as may be determined to be necessary to satisfy any liabilities of such Contractor
or subcontractor for unpaid wages and liquidated damages as provided in the clause set
forth in paragraph (2) of this clause.
4. Subcontractors.
The Contractor or subcontractor shall insert in any subcontracts the clauses set forth in
paragraphs (1) through (4) and also a clause requiring the subcontractor to include these
clauses in any lower tier subcontracts. The prime contractor shall be responsible for
compliance by any subcontractor or lower tier subcontractor with the clauses set forth in
paragraphs (1) through (4) of this clause.
Reference: 2 CFR Part 200, Appendix II(E); 2 CFR § 5.5(b); 40 USC § 3702; 40 USC §
3704
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FAA – 09 Copeland Anti-Kickback
APPLICABILITY -
The Copeland (Anti-Kickback) Act (18 USC § 874 and 40 USC § 3145) makes it unlawful to
induce by force, intimidation, threat of dismissal from employment, or by any other manner,
any person employed in the construction or repair of public buildings or public works,
financed in whole or in part by the United States, to give up any part of the compensation to
which that person is entitled under a contract of employment. The Copeland Act also
requires each contractor and subcontractor to furnish weekly a statement of compliance with
respect to the wages paid each employee during the preceding week.
Contract Types –
Construction – This provision applies to all construction contracts and subcontracts
financed under the AIP that exceed $2,000.
Equipment – This provision applies to all equipment installation projects (e.g., electrical
vault improvements) financed under the AIP that exceed $2,000. This provision does not
apply to equipment acquisitions where the equipment is manufactured at the vendor’s
plant (e.g., SRE and ARFF vehicles).
Professional Services –The emergence of different project delivery methods has created
situations where Professional Service Agreements (PSAs) include tasks that meet the
definition of construction, alteration, or repair as defined in 29 CFR Part 5. If such tasks
result in work that qualifies as construction, alteration, or repair and it exceeds $2,000, the
PSA must incorporate the Copeland Anti-kickback provision.
Property –Ordinarily, land acquisition projects would not involve employment of laborers
or mechanics and thus the Copeland Anti-Kickback provision would not apply. However,
land projects that involve installation of boundary fencing and demolition of structures
would involve laborers and mechanics. The City must include this provision if the land
acquisition project involves employment of laborers or mechanics for a contract exceeding
$2,000.
REQUIREMENT -
Contractor must comply with the requirements of the Copeland “Anti-Kickback” Act (18 USC
874 and 40 USC 3145), as supplemented by Department of Labor regulation 29 CFR part
3. Contractor and subcontractors are prohibited from inducing, by any means, any person
employed on the project to give up any part of the compensation to which the employee is
entitled. The Contractor and each Subcontractor must submit to the City, a weekly
statement on the wages paid to each employee performing on covered work during the prior
week. City must report any violations of the Act to the Federal Aviation Administration.
Reference: 2 CFR Part 200, Appendix II(D); 29 CFR Parts 3 and 5
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FAA – 10 Davis Bacon Requirements
APPLICABILITY -
The Davis-Bacon Act (40 USC §§ 3141-3144, 3146, and 3147) ensures that laborers and
mechanics employed under the contract receive pay no less than the locally prevailing wages and
fringe benefits as determined by the Department of Labor.
Contract Types –
Construction –all construction contracts and subcontracts that exceed $2,000 and include
funding from the AIP.
Equipment – This provision applies to all equipment installation projects (e.g., electrical vault
improvements) financed under the AIP that exceed $ 2,000. This provision does not apply to
equipment acquisitions where the equipment is manufactured at the vendor’s plant (e.g., SRE
and ARFF vehicles)
Professional Services – The emergence of different project delivery methods has created
situations where Professional Service Agreements (PSAs) includes tasks that meet the definition
of construction, alteration, or repair as defined in 29 CFR Part 5. If such tasks result in work that
qualifies as construction, alteration, or repair and it exceeds $2,000, the PSA must incorporate
this clause.
Property – Ordinarily, land acquisition projects would not involve employment of laborers or
mechanics and thus the provision would not apply. However, land projects that involve installation
of boundary fencing and demolition of structures would involve laborers and mechanics. The City
must include this provision if the land acquisition project involves employment of laborers or
mechanics for a contract exceeding $2,000.
Fencing Projects – Fencing projects that exceed $2,000 must include this provision.
DAVIS-BACON REQUIREMENTS
1. Minimum Wages.
(i) All laborers and mechanics employed or working upon the site of the work will be paid
unconditionally and not less often than once a week, and without subsequent deduction or rebate
on any account (except such payroll deductions as are permitted by the Secretary of Labor under
the Copeland Act (29 CFR Part 3)), the full amount of wages and bona fide fringe benefits (or
cash equivalent thereof) due at time of payment computed at rates not less than those contained
in the wage determination of the Secretary of Labor which is attached hereto and made a part
hereof, regardless of any contractual relationship which may be alleged to exist between the
Contractor and such laborers and mechanics.
Contributions made or costs reasonably anticipated for bona fide fringe benefits under section
1(b)(2) of the Davis-Bacon Act on behalf of laborers or mechanics are considered wages paid to
such laborers or mechanics, subject to the provisions of paragraph (1)(iv) of this section; also,
regular contributions made or costs incurred for more than a weekly period (but not less often
than quarterly) under plans, funds, or programs which cover the particular weekly period, are
deemed to be constructively made or incurred during such weekly period. Such laborers and
mechanics shall be paid the appropriate wage rate and fringe benefits on the wage determination
for the classification of work actually performed, without regard to skill, except as provided in 29
CFR § 5.5(a)(4). Laborers or mechanics performing work in more than one classification may be
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compensated at the rate specified for each classification for the time actually worked therein:
Provided, that the employer’s payroll records accurately set forth the time spent in each
classification in which work is performed. The wage determination (including any additional
classification and wage rates conformed under (1)(ii) of this section) and the Davis-Bacon poster
(WH-1321) shall be posted at all times by the Contractor and its subcontractors at the site of the
work in a prominent and accessible place where it can easily be seen by the workers.
(ii)(A) The contracting officer shall require that any class of laborers or mechanics, including
helpers, which is not listed in the wage determination and which is to be employed under the
contract shall be classified in conformance with the wage determination. The contracting officer
shall approve an additional classification and wage rate and fringe benefits therefore only when
the following criteria have been met:
(1) The work to be performed by the classification requested is not performed by a classification
in the wage determination;
(2) The classification is utilized in the area by the construction industry; and
(3) The proposed wage rate, including any bona fide fringe benefits, bears a reasonable
relationship to the wage rates contained in the wage determination.
(B) If the Contractor and the laborers and mechanics to be employed in the classification (if
known), or their representatives, and the contracting officer agree on the classification and wage
rate (including the amount designated for fringe benefits where appropriate), a report of the action
taken shall be sent by the contracting officer to the Administrator of the Wage and Hour Division,
U.S. Department of Labor, Washington, DC 20210. The Administrator, or an authorized
representative, will approve, modify, or disapprove every additional classification action within 30
days of receipt and so advise the contracting officer or will notify the contracting officer within the
30-day period that additional time is necessary.
(C) In the event the Contractor, the laborers, or mechanics to be employed in the classification,
or their representatives, and the contracting officer do not agree on the proposed classification
and wage rate (including the amount designated for fringe benefits, where appropriate), the
contracting officer shall refer the questions, including the views of all interested parties and the
recommendation of the contracting officer, to the Administrator for determination. The
Administrator, or an authorized representative, will issue a determination within 30 days of receipt
and so advise the contracting officer or will notify the contracting officer within the 30 -day period
that additional time is necessary.
(D) The wage rate (including fringe benefits where appropriate) determined pursuant to
subparagraphs (1)(ii) (B) or (C) of this paragraph, shall be paid to all workers performing work in
the classification under this contract from the first day on which work is performed in the
classification.
(iii) Whenever the minimum wage rate prescribed in the contract for a class of laborers or
mechanics includes a fringe benefit which is not expressed as an hourly rate, the contractor shall
either pay the benefit as stated in the wage determination or shall pay another bona fide fringe
benefit or an hourly cash equivalent thereof.
(iv) If the Contractor does not make payments to a trustee or other third person, the Contractor
may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably
anticipated in providing bona fide fringe benefits under a plan or program, Provided, that the
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Secretary of Labor has found, upon the written request of the Contractor, that the applicable
standards of the Davis-Bacon Act have been met. The Secretary of Labor may require the
Contractor to set aside in a separate account assets for the meeting of obligations under the plan
or program.
2. Withholding. The Federal Aviation Administration or the CIty shall upon its own action or upon
written request of an authorized representative of the Department of Labor withhold or cause to
be withheld from the Contractor under this contract or any other Federal contract with the same
prime contractor, or any other federally-assisted contract subject to Davis-Bacon prevailing wage
requirements, which is held by the same prime contractor, so much of the accrued payments or
advances as may be considered necessary to pay laborers and mechanics, including apprentices,
trainees, and helpers, employed by the Contractor or any subcontractor the full amount of wages
required by the contract. In the event of failure to pay any laborer or mechanic, including any
apprentice, trainee, or helper, employed or working on the site of the work, all or part of the wages
required by the contract, the Federal Aviation Administration may, after written notice to the
Contractor, City, Applicant, or Owner, take such action as may be necessary to cause the
suspension of any further payment, advance, or guarantee of funds until such violations have
ceased.
3. Payrolls and Basic Records.
(i) Payrolls and basic records relating thereto shall be maintained by the Contractor during the
course of the work and preserved for a period of three years thereafter for all laborers and
mechanics working at the site of the work. Such records shall contain the name, address, and
social security number of each such worker; his or her correct classification; hourly rates of wages
paid (including rates of contributions or costs anticipated for bona fide fringe benefits or cash
equivalents thereof of the types described in 1(b)(2)(B) of the Davis-Bacon Act); daily and weekly
number of hours worked; deductions made; and actual wages paid. Whenever the Secretary of
Labor has found under 29 CFR 5.5(a)(1)(iv) that the wages of any laborer or mechanic include
the amount of any costs reasonably anticipated in providing benefits under a plan or program
described in section 1(b)(2)(B) of the Davis-Bacon Act, the Contractor shall maintain records that
show that the commitment to provide such benefits is enforceable, that the plan or program is
financially responsible, and that the plan or program has been communicated in writing to the
laborers or mechanics affected, and records which show the costs anticipated or the actual costs
incurred in providing such benefits. Contractors employing apprentices or trainees under
approved programs shall maintain written evidence of the registration of apprenticeship programs
and certification of trainee programs, the registration of the apprentices and trainees, and the
ratios and wage rates prescribed in the applicable programs.
(ii)(A) The Contractor shall submit weekly for each week in which any contract work is performed
a copy of all payrolls to the Federal Aviation Administration if the agency is a party to the contract,
but if the agency is not such a party, the Contractor will submit the payrolls to the applicant, the
City, or Owner, as the case may be, for transmission to the Federal Aviation Administration. The
payrolls submitted shall set out accurately and completely all of the information required to be
maintained under 29 CFR § 5.5(a)(3)(i), except that full social security numbers and home
addresses shall not be included on weekly transmittals. Instead the payrolls shall only need to
include an individually identifying number for each employee (e.g., the last four digits of the
employee’s social security number). The required weekly payroll information may be submitted in
any form desired. Optional Form WH–347 is available for this purpose from the Wage and Hour
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Division Web site at https://www.dol.gov/agencies/whd/government-contracts/construction/payroll-
certification or its successor site. The prime contractor is responsible for the submission of copies
of payrolls by all subcontractors. Contractors and subcontractors shall maintain the full social
security number and current address of each covered worker and shall provide them upon request
to the Federal Aviation Administration if the agency is a party to the contract, but if the agency is
not such a party, the Contractor will submit them to the applicant, the City, or Owner, as the case
may be, for transmission to the Federal Aviation Administration, the Contractor, or the Wage and
Hour Division of the Department of Labor for purposes of an investigation or audit of compliance
with prevailing wage requirements. It is not a violation of this section for a prime contractor to
require a subcontractor to provide addresses and social security numbers to the prime contractor
for its own records, without weekly submission to the sponsoring government agency (or the
applicant, City, or Owner).
(B) Each payroll submitted shall be accompanied by a "Statement of Compliance," signed by the
Contractor or subcontractor or his or her agent who pays or supervises the payment of the
persons employed under the contract and shall certify the following:
(1) That the payroll for the payroll period contains the information required to be provided under
29 CFR § 5.5(a)(3)(ii), the appropriate information is being maintained under 29 CFR § 5.5
(a)(3)(i), and that such information is correct and complete;
(2) That each laborer and mechanic (including each helper, apprentice, and trainee) employed on
the contract during the payroll period has been paid the full weekly wages earned, without rebate,
either directly or indirectly, and that no deductions have been made either directly or indirectly
from the full wages earned, other than permissible deductions as set forth in Regulations, 29 CFR
Part 3;
(3) That each laborer or mechanic has been paid not less than the applicable wage rates and
fringe benefits or cash equivalents for the classification of work performed, as specified in the
applicable wage determination incorporated into the contract.
(C) The weekly submission of a properly executed certification set forth on the reverse side of
Optional Form WH-347 shall satisfy the requirement for submission of the “Statement of
Compliance” required by paragraph (3)(ii)(B) of this section.
(D) The falsification of any of the above certifications may subject the Contractor or subcontractor
to civil or criminal prosecution under Section 1001 of Title 18 and Section 231 of Title 31 of the
United States Code.
(iii) The Contractor or subcontractor shall make the records required under paragraph (3)(i) of this
section available for inspection, copying, or transcription by authorized representatives of the City,
the Federal Aviation Administration, or the Department of Labor and shall permit such
representatives to interview employees during working hours on the job. If the Contractor or
subcontractor fails to submit the required records or to make them available, the Federal agency
may, after written notice to the Contractor, the City, applicant, or Owner, take such action as may
be necessary to cause the suspension of any further payment, advance, or guarantee of funds.
Furthermore, failure to submit the required records upon request or to make such records
available may be grounds for debarment action pursuant to 29 CFR § 5.12.
4. Apprentices and Trainees.
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(i) Apprentices. Apprentices will be permitted to work at less than the predetermined rate for the
work they performed when they are employed pursuant to and individually registered in a bona
fide apprenticeship program registered with the U.S. Department of Labor, Employment and
Training Administration, Office of Apprenticeship Training, Employer and Labor Services, or with
a State Apprenticeship Agency recognized by the Office, or if a person is employed in his or her
first 90 days of probationary employment as an apprentice in such an apprenticeship program,
who is not individually registered in the program, but who has been certified by the Office of
Apprenticeship Training, Employer and Labor Services or a State Apprenticeship Agency (where
appropriate) to be eligible for probationary employment as an apprentice. The allowable ratio of
apprentices to journeymen on the job site in any craft classification shall not be greater than the
ratio permitted to the contractor as to the entire work force under the registered program. Any
worker listed on a payroll at an apprentice wage rate, who is not registered or otherwise employed
as stated above, shall be paid not less than the applicable wage rate on the wage determination
for the classification of work actually performed. In addition, any apprentice performing work on
the job site in excess of the ratio permitted under the registered program shall be paid not less
than the applicable wage rate on the wage determination for the work actually performed. Where
a contractor is performing construction on a project in a locality other than that in which its program
is registered, the ratios and wage rates (expressed in percentages of the journeyman’s hourly
rate) specified in the Contractor’s or subcontractor’s registered program shall be observed. Every
apprentice must be paid at not less than the rate specified in the registered program for the
apprentice’s level of progress, expressed as a percentage of the journeymen hourly rate specified
in the applicable wage determination. Apprentices shall be paid fringe benefits in accordance with
the provisions of the apprenticeship program. If the apprenticeship program does not specify
fringe benefits, apprentices must be paid the full amount of fringe benefits listed on the wage
determination for the applicable classification. If the Administrator determines that a different
practice prevails for the applicable apprentice classification, fringes shall be paid in accordance
with that determination. In the event the Office of Apprenticeship Training, Employer and Labor
Services, or a State Apprenticeship Agency recognized by the Office, withdraws approval of an
apprenticeship program, the Contractor will no longer be permitted to utilize apprentices at less
than the applicable predetermined rate for the work performed until an acceptable program is
approved.
(ii) Trainees. Except as provided in 29 CFR § 5.16, trainees will not be permitted to work at less
than the predetermined rate for the work performed unless they are employed pursuant to and
individually registered in a program which has received prior approval, evidenced by formal
certification by the U.S. Department of Labor, Employment and Training Administration. The ratio
of trainees to journeymen on the job site shall not be greater than permitted under the plan
approved by the Employment and Training Administration. Every trainee must be paid at not less
than the rate specified in the approved program for the trainee’s level of progress, expressed as
a percentage of the journeyman hourly rate specified in the applicable wage determination.
Trainees shall be paid fringe benefits in accordance with the provisions of the trainee program. If
the trainee program does not mention fringe benefits, trainees shall be paid the full amount of
fringe benefits listed on the wage determination unless the Administrator of the Wage and Hour
Division determines that there is an apprenticeship program associated with the corresponding
journeyman wage rate on the wage determination that provides for less than full fringe benefits
for apprentices. Any employee listed on the payroll at a trainee rate that is not registered and
participating in a training plan approved by the Employment and Training Administration shall be
paid not less than the applicable wage rate on the wage determination for the classification of
work actually performed. In addition, any trainee performing work on the job site in excess of the
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ratio permitted under the registered program shall be paid not less than the applicable wage rate
on the wage determination for the work actually performed. In the event the Employment and
Training Administration withdraws approval of a training program, the Contractor will no longer be
permitted to utilize trainees at less than the applicable predetermined rate for the work performed
until an acceptable program is approved.
(iii) Equal Employment Opportunity. The utilization of apprentices, trainees, and journeymen
under this part shall be in conformity with the equal employment opportunity requirements of
Executive Order 11246, as amended, and 29 CFR Part 30.
5. Compliance with Copeland Act Requirements.
The Contractor shall comply with the requirements of 29 CFR Part 3, which are incorporated by
reference in this contract.
6. Subcontracts.
The Contractor or subcontractor shall insert in any subcontracts the clauses contained in 29 CFR
§§ 5.5(a)(1) through (10) and such other clauses as the Federal Aviation Administration may by
appropriate instructions require, and also a clause requiring the subcontractors to include these
clauses in any lower tier subcontracts. The prime contractor shall be responsible for the
compliance by any subcontractor or lower tier subcontractor with all the contract clauses in 29
CFR § 5.5.
7. Contract Termination: Debarment.
A breach of the contract clauses in paragraph 1 through 10 of this section may be grounds for
termination of the contract, and for debarment as a contractor and a subcontractor as provided in
29 CFR § 5.12.
8. Compliance with Davis-Bacon and Related Act Requirements.
All rulings and interpretations of the Davis-Bacon and Related Acts contained in 29 CFR Parts 1,
3, and 5 are herein incorporated by reference in this contract.
9. Disputes Concerning Labor Standards.
Disputes arising out of the labor standards provisions of this contract shall not be subject to the
general disputes clause of this contract. Such disputes shall be resolved in accordance with the
procedures of the Department of Labor set forth in 29 CFR Parts 5, 6, and 7. Disputes within the
meaning of this clause include disputes between the Contractor (or any of its subcontractors) and
the contracting agency, the U.S. Department of Labor, or the employees or their representatives.
10. Certification of Eligibility.
(i) By entering into this contract, the Contractor certifies that neither it (nor he or she) nor any
person or firm who has an interest in the Contractor’s firm is a person or firm ineligible to be
awarded Government contracts by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR §
5.12(a)(1).
(ii) No part of this contract shall be subcontracted to any person or firm ineligible for award of a
Government contract by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR § 5.12(a)(1).
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(iii) The penalty for making false statements is prescribed in the U.S. Criminal Code, 18 USC §
1001.
Reference: 2 CFR Part 200, Appendix II(D); 29 CFR Part 5; 49 USC § 47112(b); 40 USC §§ 3141-
3144, 3146, and 3147
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FAA – 11 Debarment and Suspension
APPLICABILITY - This requirement applies to covered transactions, which are defined in 2 CFR
part 180 (Subpart B). AIP funded contracts are non-procurement transactions, as defined by 2
CFR § 180.970. Covered transactions include any AIP-funded contract, regardless of tier, that is
awarded by a contractor, subcontractor, supplier, consultant, or its agent or representative in any
transaction, if the amount of the contract is expected to equal or exceed $25,000. This includes
contracts associated with land acquisition projects.
REQUIREMENT -
A11.3.1 Bidder or Offeror Certification
By submitting a bid/proposal under the solicitation for this contract, the Contractor must have
certified that neither it nor its principals are presently debarred or suspended by any Federal
department or agency from participation in this transaction.
A11.3.2 Lower Tier Contract Certification
CERTIFICATION OF LOWER TIER CONTRACTORS REGARDING DEBARMENT
The Contractor, by administering each lower tier subcontract that exceeds $25,000 as a “covered
transaction”, must verify each lower tier participant of a “covered transaction” under the project is
not presently debarred or otherwise disqualified from participation in this federally assisted
project. The Contractor will accomplish this by:
1. Checking the System for Award Management at website: http://www.sam.gov.
2. Collecting a certification statement similar to the Certification of Offerer /Bidder Regarding
Debarment, above.
3. Inserting a clause or condition in the covered transaction with the lower tier contract.
If the Federal Aviation Administration later determines that a lower tier participant failed to disclose
to a higher tier participant that it was excluded or disqualified at the time it entered the covered
transaction, the FAA may pursue any available remedies, including suspension and debarment
of the non-compliant participant.
Reference: 2 CFR part 180 (Subpart B), 2 CFR part 200 Appendix II(H), 2 CFR Part 1200, DOT
Order 4200.5; Executive Orders 12549 and 12689
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FAA – 12 Disadvantaged Business Enterprise
APPLICABILITY – all contracts with Airports that have a DBE program on file with the FAA.
Contract Assurance (§ 26.13) –
The Contractor or subcontractor shall not discriminate on the basis of race, color, national origin,
or sex in the performance of this contract. The Contractor shall carry out applicable requirements
of 49 CFR part 26 in the award and administration of Department of Transportation-assisted
contracts. Failure by the Contractor to carry out these requirements is a material breach of this
contract, which may result in the termination of this contract or such other remedy as the City
deems appropriate, which may include, but is not limited to:
1) Withholding monthly progress payments;
2) Assessing sanctions;
3) Liquidated damages; and/or
4) Disqualifying the Contractor from future bidding as non-responsible.
Prompt Payment (§26.29) – The prime contractor agrees to pay each subcontractor under this
prime contract for satisfactory performance of its contract no later than [10 days] days from the
receipt of each payment the prime contractor receives from [the City]. The prime contractor agrees
further to return retainage payments to each subcontractor within [30 days] days after the
subcontractor’s work is satisfactorily completed. Any delay or postponement of payment from the
above referenced time frame may occur only for good cause following written approval of the
[City]. This clause applies to both DBE and non-DBE subcontractors.
Termination of DBE Subcontracts (49 CFR § 26.53(f)) –
The prime Contractor must not terminate a DBE subcontractor listed in response to the solicitation
(or an approved substitute DBE firm) without prior written consent of the City. This includes, but
is not limited to, instances in which the prime contractor seeks to perform work originally
designated for a DBE subcontractor with its own forces or those of an affiliate, a non-DBE firm,
or with another DBE firm.
The prime Contractor shall utilize the specific DBEs listed to perform the work and supply the
materials for which each is listed unless the Contractor obtains written consent of the City. Unless
City consent is provided, the prime Contractor shall not be entitled to any payment for work or
material unless it is performed or supplied by the listed DBE.
The City may provide such written consent only if the City agrees, for reasons stated in the
concurrence document, that the prime Contractor has good cause to terminate the DBE firm. For
purposes of this paragraph, good cause includes the circumstances listed in 49 CFR §26.53.
Before transmitting to the City its request to terminate and/or substitute a DBE subcontractor, the
prime Contractor must give notice in writing to the DBE subcontractor, with a copy to the City, of
its intent to request to terminate and/or substitute, and the reason for the request.
The prime contractor must give the DBE five days to respond to the prime contractor's notice and
advise the City and the Contractor of the reasons, if any, why it objects to the proposed termination
of its subcontract and why the City should not approve the prime Contractor's action. If required
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in a particular case as a matter of public necessity (e.g., safety), the City may provide a response
period shorter than five days.
In addition to post-award terminations, the provisions of this section apply to preaward deletions
of or substitutions for DBE firms put forward by offerors in negotiated procurements.
Reference: 49 CFR part 26
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FAA – 13 Distracted Driving
APPLICABILITY - contracts that exceed the micro-purchase threshold of 2 CFR § 200.320
(currently set at $10,000).
REQUIREMENT -
TEXTING WHEN DRIVING
In accordance with Executive Order 13513, “Federal Leadership on Reducing Text Messaging
While Driving”, (10/1/2009) and DOT Order 3902.10, “Text Messaging While Driving”,
(12/30/2009), the Federal Aviation Administration encourages recipients of Federal grant funds
to adopt and enforce safety policies that decrease crashes by distracted drivers, including policies
to ban text messaging while driving when performing work related to a grant or subgrant.
In support of this initiative, the City encourages the Contractor to promote policies and initiatives
for its employees and other work personnel that decrease crashes by distracted drivers, including
policies that ban text messaging while driving motor vehicles while performing work activities
associated with the project. The Contractor must include the substance of this clause in all sub-
tier contracts exceeding $10,000 that involve driving a motor vehicle in performance of work
activities associated with the project.
Reference: Executive Order 13513, DOT Order 3902.10
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FAA – 14 Prohibition on Certain Telecommunications and Video Surveillance Services
and Equipment
APPLICABILITY - all AIP funded contracts and lower-tier contracts.
REQUIREMENT -
Contractor and Subcontractor agree to comply with mandatory standards and policies relating to
use and procurement of certain telecommunications and video surveillance services or equipment
in compliance with the National Defense Authorization Act [Public Law 115-232 § 889(f)(1)].
Reference: 2 CFR § 200, Appendix II(K); 2 CFR § 200.216
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FAA – 15 Drug Free Workplace Requirements
APPLICABILITY - This provision applies to all AIP funded projects, but not to the contracts
between the City and a contractor, subcontractors, suppliers, or subgrantees.
The Drug-Free Workplace Act of 1988 requires some Federal contractors and all Federal
grantees to agree that they will provide drug-free workplaces as a condition of receiving a contract
or grant from a Federal agency. The Act does not apply to contractors, subcontractors, or
subgrantees, although the Federal grantees workplace may be where the contractors,
subcontractors, or subgrantees are working.
Reference: 49 CFR part 32, Drug-Free Workplace Act of 1988 (41 U.S.C. 701 et seq., as
amended)
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FAA – 16 Equal Employment Opportunity
APPLICABILITY – The purpose of this provision is to provide equal opportunity for all persons,
without regard to race, color, religion, sex, or national origin who are employed or seeking
employment with contractors performing under a federally-assisted construction contract. There
are two provisions ― a construction clause and a specification clause.
The equal opportunity contract clause applies to any contract or subcontract when the amount
exceeds $10,000. Once the equal opportunity clause is determined to be applicable, the contract
or subcontract must include the clause for the remainder of the year, regardless of the amount or
the contract.
Contract Types –
Construction – all construction contracts and subcontracts as required above.
Equipment – all equipment contracts as required above that involves installation of equipment
onsite (e.g., electrical vault equipment). This provision does not apply to equipment acquisition
projects where the manufacture of the equipment takes place offsite at the vendor plant (e.g.,
ARFF and SRE vehicles).
Professional Services – all professional service agreements as required above.
Property – all land acquisition projects that include work that qualifies as construction work as
defined by 41 CFR part 60 as required above. An example is installation of boundary fencing.
REQUIREMENT -
A16.3.1 EEO Contract Clause
During the performance of this contract, the Contractor agrees as follows:
(1) The Contractor will not discriminate against any employee or applicant for employment
because of race, color, religion, sex, sexual orientation, gender identity, 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,
sexual orientation, gender identify, 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 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 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, sexual orientation, gender identity, or national
origin.
(3) The contractor will not discharge or in any other manner discriminate against any employee
or applicant for employment because such employee or applicant has inquired about,
discussed, or disclosed the compensation of the employee or applicant or another employee
or applicant. This provision shall not apply to instances in which an employee who has access
to the compensation information of other employees or applicants as a part of such
employee's essential job functions discloses the compensation of such other employees or
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applicants to individuals who do not otherwise have access to such information, unless such
disclosure is in response to a formal complaint or charge, in furtherance of an investigation,
proceeding, hearing, or action, including an investigation conducted by the employer, or is
consistent with the contractor's legal duty to furnish information.
(4) The Contractor will send to each labor union or representative of workers with which it has a
collective bargaining agreement or other contract or understanding, a notice to be provided
by the agency contracting officer, advising the labor union or workers’ representative of the
Contractor’s commitments under this section 202 of Executive Order 11246 of September 24,
1965, and shall post copies of the notice in conspicuous places available to employees and
applicants for employment.
(5) The Contractor will comply with all provisions of Executive Order 11246 of September 24,
1965, and of the rules, regulations, and relevant orders of the Secretary of Labor.
(6) The Contractor will furnish all information and reports required by Executive Order 11246 of
September 24, 1965, and by the rules, regulations, and orders of the Secretary of Labor, or
pursuant thereto, and will permit access to his books, records, and accounts by the contracting
agency and the Secretary of Labor for purposes of investigation to ascertain compliance with
such rules, regulations, and orders.
(7) In the event of the Contractor’s noncompliance with the nondiscrimination clauses of this
contract or with any such 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 Government contracts in accordance with procedures authorized in Executive Order
11246 of September 24, 1965, and such other sanctions may be imposed and remedies
invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation,
or order of the Secretary of Labor, or as otherwise provided by law.
(8) The Contractor will include the provisions of paragraphs (1) through (8) in every subcontract
or purchase order 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, 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 may be directed by the Secretary
of Labor 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, the Contractor may
request the United States to enter into such litigation to protect the interests of the United
States.
A16.3.2 EEO Specification
STANDARD FEDERAL EQUAL EMPLOYMENT OPPORTUNITY
CONSTRUCTION CONTRACT SPECIFICATIONS
a. “Covered area” means the geographical area described in the solicitation from which this
contract resulted;
b. “Director” means Director, Office of Federal Contract Compliance Programs (OFCCP), U.S.
Department of Labor, or any person to whom the Director delegates authority;
c. “Employer identification number” means the Federal social security number used on the
Employer’s Quarterly Federal Tax Return, U.S. Treasury Department Form 941;
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d. “Minority” includes:
(1) Black (all persons having origins in any of the Black African racial groups not of Hispanic
origin);
(2) Hispanic (all persons of Mexican, Puerto Rican, Cuban, Central or South American, or
other Spanish culture or origin, regardless of race);
(3) Asian and Pacific Islander (all persons having origins in any of the original peoples of the
Far East, Southeast Asia, the Indian Subcontinent, or the Pacific Islands); and
(4) American Indian or Alaskan native (all persons having origins in any of the original peoples
of North America and maintaining identifiable tribal affiliations through membership and
participation or community identification).
2. Whenever the Contractor, or any subcontractor at any tier, subcontracts a portion of the work
involving any construction trade, it shall physically include in each subcontract in excess of
$10,000 the provisions of these specifications and the Notice which contains the applicable
goals for minority and female participation and which is set forth in the solicitations from which
this contract resulted.
3. If the Contractor is participating (pursuant to 41 CFR part 60-4.5) in a Hometown Plan
approved by the U.S. Department of Labor in the covered area either individually or through
an association, its affirmative action obligations on all work in the Plan area (including goals
and timetables) shall be in accordance with that Plan for those trades which have unions
participating in the Plan. Contractors must be able to demonstrate their participation in and
compliance with the provisions of any such Hometown Plan. Each contractor or
subcontractor participating in an approved plan is individually required to comply with its
obligations under the EEO clause and to make a good faith effort to achieve each goal under
the Plan in each trade in which it has employees. The overall good faith performance by
other contractors or subcontractors toward a goal in an approved Plan does not excuse any
covered contractor’s or subcontractor’s failure to take good faith efforts to achieve the Plan
goals and timetables.
4. The Contractor shall implement the specific affirmative action standards provided in
paragraphs 7a through 7p of these specifications. The goals set forth in the solicitation from
which this contract resulted are expressed as percentages of the total hours of employment
and training of minority and female utilization the Contractor should reasonably be able to
achieve in each construction trade in which it has employees in the covered area. Covered
construction contractors performing construction work in a geographical areas where they do
not have a Federal or federally assisted construction contract shall apply the minority and
female goals established for the geographical area where the work is being performed. Goals
are published periodically in the Federal Register in notice form, and such notices may be
obtained from any Office of Federal Contract Compliance Programs office or from Federal
procurement contracting officers. The Contractor is expected to make substantially uniform
progress in meeting its goals in each craft during the period specified.
5. Neither the provisions of any collective bargaining agreement, nor the failure by a union with
whom the Contractor has a collective bargaining agreement, to refer either minorities or
women shall excuse the Contractor’s obligations under these specifications, Executive Order
11246, or the regulations promulgated pursuant thereto.
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6. In order for the nonworking training hours of apprentices and trainees to be counted in
meeting the goals, such apprentices and trainees must be employed by the Contractor during
the training period, and the Contractor must have made a commitment to employ the
apprentices and trainees at the completion of their training, subject to the availability of
employment opportunities. Trainees must be trained pursuant to training programs approved
by the U.S. Department of Labor.
7. The Contractor shall take specific affirmative actions to ensure equal employment
opportunity. The evaluation of the Contractor’s compliance with these specifications shall be
based upon its effort to achieve maximum results from its actions. The Contractor shall
document these efforts fully, and shall implement affirmative action steps at least as
extensive as the following:
a. Ensure and maintain a working environment free of harassment, intimidation, and
coercion at all sites, and in all facilities at which the Contractor’s employees are assigned
to work. The Contractor, where possible, will assign two or more women to each
construction project. The Contractor shall specifically ensure that all foremen,
superintendents, and other onsite supervisory personnel are aware of and carry out the
Contractor’s obligation to maintain such a working environment, with specific attention
to minority or female individuals working at such sites or in such facilities.
b. Establish and maintain a current list of minority and female recruitment sources, provide
written notification to minority and female recruitment sources and to community
organizations when the Contractor or its unions have employment opportunities
available, and maintain a record of the organizations’ responses.
c. Maintain a current file of the names, addresses, and telephone numbers of each minority
and female off-the-street applicant and minority or female referral from a union, a
recruitment source, or community organization and of what action was taken with
respect to each such individual. If such individual was sent to the union hiring hall for
referral and was not referred back to the Contractor by the union or, if referred, not
employed by the Contractor, this shall be documented in the file with the reason therefor,
along with whatever additional actions the Contractor may have taken.
d. Provide immediate written notification to the Director when the union or unions with
which the Contractor has a collective bargaining agreement has not referred to the
Contractor a minority person or woman sent by the Contractor, or when the Contractor
has other information that the union referral process has impeded the Contractor’s
efforts to meet its obligations.
e. Develop on-the-job training opportunities and/or participate in training programs for the
area which expressly include minorities and women, including upgrading programs and
apprenticeship and trainee programs relevant to the Contractor’s employment needs,
especially those programs funded or approved by the Department of Labor. The
Contractor shall provide notice of these programs to the sources compiled under 7b
above.
f. Disseminate the Contractor’s EEO policy by providing notice of the policy to unions and
training programs and requesting their cooperation in assisting the Contractor in meeting
its EEO obligations; by including it in any policy manual and collective bargaining
agreement; by publicizing it in the company newspaper, annual report, etc.; by specific
review of the policy with all management personnel and with all minority and female
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employees at least once a year; and by posting the company EEO policy on bulletin
boards accessible to all employees at each location where construction work is
performed.
g. Review, at least annually, the company’s EEO policy and affirmative action obligations
under these specifications with all employees having any responsibility for hiring,
assignment, layoff, termination, or other employment decisions including specific review
of these items with onsite supervisory personnel such superintendents, general
foremen, etc., prior to the initiation of construction work at any job site. A written record
shall be made and maintained identifying the time and place of these meetings, persons
attending, subject matter discussed, and disposition of the subject matter.
h. Disseminate the Contractor’s EEO policy externally by including it in any advertising in
the news media, specifically including minority and female news media, and providing
written notification to and discussing the Contractor’s EEO policy with other contractors
and subcontractors with whom the Contractor does or anticipates doing business.
i. Direct its recruitment efforts, both oral and written, to minority, female, and community
organizations, to schools with minority and female students and to minority and female
recruitment and training organizations serving the Contractor’s recruitment area and
employment needs. Not later than one month prior to the date for the acceptance of
applications for apprenticeship or other training by any recruitment source, the
Contractor shall send written notification to organizations such as the above, describing
the openings, screening procedures, and tests to be used in the selection process.
j. Encourage present minority and female employees to recruit other minority persons and
women and, where reasonable, provide after school, summer, and vacation employment
to minority and female youth both on the site and in other areas of a contractor’s work
force.
k. Validate all tests and other selection requirements where there is an obligation to do so
under 41 CFR part 60-3.
l. Conduct, at least annually, an inventory and evaluation at least of all minority and female
personnel, for promotional opportunities and encourage these employees to seek or to
prepare for, through appropriate training, etc., such opportunities.
m. Ensure that seniority practices, job classifications, work assignments, and other
personnel practices do not have a discriminatory effect by continually monitoring all
personnel and employment related activities to ensure that the EEO policy and the
Contractor’s obligations under these specifications are being carried out.
n. Ensure that all facilities and company activities are nonsegregated except that separate
or single-user toilet and necessary changing facilities shall be provided to assure privacy
between the sexes.
o. Document and maintain a record of all solicitations of offers for subcontracts from
minority and female construction contractors and suppliers, including circulation of
solicitations to minority and female contractor associations and other business
associations.
p. Conduct a review, at least annually, of all supervisor’s adherence to and performance
under the Contractor’s EEO policies and affirmative action obligations.
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8. Contractors are encouraged to participate in voluntary associations, which assist in fulfilling
one or more of their affirmative action obligations (7a through 7p). The efforts of a contractor
association, joint contractor-union, contractor-community, or other similar group of which the
Contractor is a member and participant may be asserted as fulfilling any one or more of its
obligations under 7a through 7p of these specifications provided that the Contractor actively
participates in the group, makes every effort to assure that the group has a positive impact
on the employment of minorities and women in the industry, ensures that the concrete
benefits of the program are reflected in the Contractor’s minority and female workforce
participation, makes a good faith effort to meet its individual goals and timetables, and can
provide access to documentation which demonstrates the effectiveness of actions taken on
behalf of the Contractor. The obligation to comply, however, is the Contractor’s and failure
of such a group to fulfill an obligation shall not be a defense for the Contractor’s
noncompliance.
9. A single goal for minorities and a separate single goal for women have been established. The
Contractor, however, is required to provide equal employment opportunity and to take
affirmative action for all minority groups, both male and female, and all women, both minority
and non-minority. Consequently, the Contractor may be in violation of the Executive Order
if a particular group is employed in a substantially disparate manner (for example, even
though the Contractor has achieved its goals for women generally, the Contractor may be in
violation of the Executive Order if a specific minority group of women is underutilized).
10. The Contractor shall not use the goals and timetables or affirmative action standards to
discriminate against any person because of race, color, religion, sex, sexual orientation,
gender identity, or national origin.
11. The Contractor shall not enter into any subcontract with any person or firm debarred from
Government contracts pursuant to Executive Order 11246.
12. The Contractor shall carry out such sanctions and penalties for violation of these specifications
and of the Equal Opportunity Clause, including suspension, termination, and cancellation of
existing subcontracts as may be imposed or ordered pursuant to Executive Order 11246, as
amended, and its implementing regulations, by the Office of Federal Contract Compliance
Programs. Any contractor who fails to carry out such sanctions and penalties shall be in
violation of these specifications and Executive Order 11246, as amended.
13. The Contractor, in fulfilling its obligations under these specifications, shall implement specific
affirmative action steps, at least as extensive as those standards prescribed in paragraph 7
of these specifications, so as to achieve maximum results from its efforts to ensure equal
employment opportunity. If the Contractor fails to comply with the requirements of the
Executive Order, the implementing regulations, or these specifications, the Director shall
proceed in accordance with 41 CFR part 60-4.8.
14. The Contractor shall designate a responsible official to monitor all employment related activity
to ensure that the company EEO policy is being carried out, to submit reports relating to the
provisions hereof as may be required by the Government, and to keep records. Records
shall at least include for each employee, the name, address, telephone numbers,
construction trade, union affiliation if any, employee identification number when assigned,
social security number, race, sex, status (e.g., mechanic, apprentice, trainee, helper, or
laborer), dates of changes in status, hours worked per week in the indicated trade, rate of
pay, and locations at which the work was performed. Records shall be maintained in an
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easily understandable and retrievable form; however, to the degree that existing records
satisfy this requirement, contractors shall not be required to maintain separate records.
15. Nothing herein provided shall be construed as a limitation upon the application of other laws
which establish different standards of compliance or upon the application of requirements for
the hiring of local or other area residents (e.g. those under the Public Works Employment Act
of 1977 and the Community Development Block Grant Program).
Reference: 2 CFR 200, Appendix II(C), 41 CFR § 60-1.4, 41 CFR § 60-4.3, Executive Order
11246
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FAA – 17 Federal Fair Labor Standards Act
APPLICABILITY – Contract Types – Per the Department of Labor, all employees of certain
enterprises having workers engaged in interstate commerce; producing goods for interstate
commerce; or handling, selling, or otherwise working on goods or materials that have been moved
in or produced for such commerce by any person are covered by the FLSA.
All consultants, sub-consultants, contractors, and subcontractors employed under this federally
assisted project must comply with the FLSA.
Professional Services – 29 CFR § 213 exempts employees in a bona fide executive,
administrative or professional capacity. Because professional firms employ individuals that are
not covered by this exemption, the agreement with a professional services firm must include the
FLSA provision.
REQUIREMENT -
The provisions of 29 CFR part 201, the Federal Fair Labor Standards Act (FLSA), are incorporated
by reference with the same force and effect as if given in full text. The FLSA sets minimum wage,
overtime pay, recordkeeping, and child labor standards for full and part-time workers.
The Contractor has full responsibility to monitor compliance to the referenced statute or
regulation. The Contractor must address any claims or disputes that arise from this requirement
directly with the U.S. Department of Labor – Wage and Hour Division.
Reference : 29 USC § 201, et seq; 2 CFR § 200.430
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FAA – 18 Lobbying and Influencing Federal Employees
APPLICABILITY- all contracts exceeding $100,000.
REQUIREMENT -
Consultants and contractors that apply or bid for an award of $100,000 or more must have certified
that it will not and has not used Federal appropriated funds to pay any person or organization for
influencing or attempting to influence an officer or employee of any agency, a member of
Congress, officer or employee of Congress, or an employee of a member of Congress in
connection with obtaining any Federal contract, grant, or another award covered by 31 USC
§1352. Each tier must also disclose any lobbying with non-Federal funds that takes place in
connection with obtaining any Federal award.
For an award over $100,00, the bidder or offeror certifies by signing and subm itting this bid or
proposal, to the best of his or her knowledge and belief, that:
No Federal appropriated funds have been paid or will be paid, by or on behalf of the bidder
or offeror, to any person for influencing or attempting to influence an officer or employee of
an agency, a Member of Congress, an officer or employee of Congress, or an employee of a
Member of Congress in connection with the awarding of any Federal contract, the making of
any Federal grant, the making of any Federal loan, the entering into of any cooperative
agreement, and the extension, continuation, renewal, amendment, or modification of any
Federal contract, grant, loan, or cooperative agreement.
If any funds other than Federal appropriated funds have been paid or will be paid to any
person for influencing or attempting to influence an officer or employee of any agency, a
Member of Congress, an officer or employee of Congress, or an employee of a Member of
Congress in connection with this Federal contract, grant, loan, or cooperative agreement,
the undersigned shall complete and submit Standard Form-LLL, “Disclosure Form to Report
Lobbying,” in accordance with its instructions.
The undersigned shall require that the language of this certification be included in the award
documents for all sub-awards at all tiers (including subcontracts, sub-grants, and contracts
under grants, loans, and cooperative agreements) and that all sub-recipients shall certify
and disclose accordingly.
This certification is a material representation of fact upon which reliance was placed when this
transaction was made or entered into. Submission of this certification is a prerequisite for making
or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who
fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and
not more than $100,000 for each such failure.
Reference: 31 USC § 1352 – Byrd Anti-Lobbying Amendment, 2 CFR part 200, Appendix II(I), 49
CFR part 20, Appendix A
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FAA – 19 Prohibition of Segregated Facilities
APPLICABILITY - The Contractor must comply with the requirements of the EEO clause by
ensuring that facilities they provide for employees are free of segregation on the basis of race,
color, religion, sex, sexual orientation, gender identity, or national origin. This clause must be
included in all contracts that include the equal opportunity clause, regardless of the amount of the
contract.
Contract Types – any contract containing the Equal Employment Opportunity clause of 41 CFR
§ 60-1.4. This obligation flows down to subcontract and sub-tier purchase orders containing the
Equal Employment Opportunity clause.
Construction – Construction work means construction, rehabilitation, alteration, conversion,
extension, demolition or repair of buildings, highways, or other changes or improvements to real
property, including facilities providing utility services. The term also includes the supervision,
inspection, and other onsite functions incidental to the actual construction.
Equipment – On site installation of equipment such as airfield lighting control equipment meets
the definition of construction and thus this provision would apply. This provision does not apply
to equipment projects involving manufacture of the item at a vendor’s manufacturing plant. An
example would be the manufacture of a SRE or ARFF vehicle.
Professional Services – Professional services that include tasks that qualify as construction
work as defined by 41 CFR part 60-1. Examples include the installation of noise monitoring
equipment.
Property/Land – Land acquisition contracts that include tasks that qualify as construction work
as defined by 41 CFR part 60-1. Examples include demolition of structures or installation of
boundary fencing.
REQUIREMENT -
(a) The Contractor agrees that it does not and will not maintain or provide for its employees any
segregated facilities at any of its establishments, and that it does not and will not permit its
employees to perform their services at any location under its control where segregated
facilities are maintained. The Contractor agrees that a breach of this clause is a violation of
the Equal Employment Opportunity clause in this contract.
(b) “Segregated facilities,” as used in this clause, means any waiting rooms, work areas, rest
rooms and wash rooms, restaurants and other eating areas, time clocks, locker rooms and
other storage or dressing areas, parking lots, drinking fountains, recreation or entertainment
areas, transportation, and housing facilities provided for employees that are segregated by
explicit directive or are in fact segregated on the basis of race, color, religion, sex, sexual
orientation, gender identity, or national origin because of written or oral policies or employee
custom. The term does not include separate or single-user rest rooms or necessary dressing
or sleeping areas provided to assure privacy between the sexes.
(c) The Contractor shall include this clause in every subcontract and purchase order that is
subject to the Equal Employment Opportunity clause of this contract.
Reference: 2 CFR Part 200, Appendix II (C); 41 CFR Part 60-1
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FAA – 20 Occupational Safety and Health Act
APPLICABILITY – Contract Types – All contracts and subcontracts must comply with the
Occupational Safety and Health Act of 1970 (OSH). The U.S. Department of Labor Occupational
Safety and Health Administration (OSHA) oversees the workplace health and safety standards
wage provisions from OSH.
REQUIREMENT -
All contracts and subcontracts that result from this solicitation incorporate by reference the
requirements of 29 CFR Part 1910 with the same force and effect as if given in full text. The
employer must provide a work environment that is free from recognized hazards that may cause
death or serious physical harm to the employee. The employer retains full responsibility to monitor
its compliance and their subcontractor’s compliance with the applicable requirements of the
Occupational Safety and Health Act of 1970 (29 CFR Part 1910). The employer must address
any claims or disputes that pertain to a referenced requirement directly with the U.S. Department
of Labor – Occupational Safety and Health Administration.
Reference: 29 CFR part 1910
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FAA – 21 Procurement of Recovered Materials
APPLICABILITY – Contract Types – This provision applies to any contracts that include
procurement of products designated in subpart B of 40 CFR part 247 where the purchase price
of the item exceeds $10,000 or the value of the quantity acquired by the preceding fiscal year
exceeded $10,000.
Construction and Equipment – all construction and equipment projects.
Professional Services and Property – if the agreement includes procurement of a product that
exceeds $10,000.
REQUIREMENT -
Contractor and subcontractor agree to comply with Section 6002 of the Solid Waste Disposal Act,
as amended by the Resource Conservation and Recovery Act, and the regulatory provisions of
40 CFR Part 247. In the performance of this contract and to the extent practicable, the Contractor
and subcontractors are to use products containing the highest percentage of recovered materials
for items designated by the Environmental Protection Agency (EPA) under 40 CFR Part 247
whenever:
1) The contract requires procurement of $10,000 or more of a designated item during the fiscal
year; or
2) The contractor has procured $10,000 or more of a designated item using Federal funding
during the previous fiscal year.
The list of EPA-designated items is available at www.epa.gov/smm/comprehensive-procurement-
guidelines-construction-products.
Section 6002(c) establishes exceptions to the preference for recovery of EPA-designated
products if the contractor can demonstrate the item is:
a) Not reasonably available within a timeframe providing for compliance with the contract
performance schedule;
b) Fails to meet reasonable contract performance requirements; or
c) Is only available at an unreasonable price.
Reference: 2 CFR § 200.323, 2 CFR Part 200, Appendix II (J); 40 CFR part 247, 42 USC §
6901, et seq (Resource Conservation and Recovery Act)
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FAA – 22 Rights to Inventions
APPLICABILITY – Contract Types – This provision applies to all contracts and subcontracts
with small business firms or nonprofit organizations that include performance of experimental,
developmental, or research work. This clause is not applicable to construction, equipment, or
professional service contracts unless the contract includes experimental, developmental, or
research work.
REQUIREMENT -
Contracts or agreements that include the performance of experimental, developmental, or
research work must provide for the rights of the Federal Government and the City in any resulting
invention as established by 37 CFR part 401, Rights to Inventions Made by Non-profit
Organizations and Small Business Firms under Government Grants, Contracts, and Cooperative
Agreements. This contract incorporates by reference the patent and inventions rights as specified
within 37 CFR §401.14. Contractor must include this requirement in all sub-tier contracts involving
experimental, developmental, or research work.
Reference: 2 CFR § 200, Appendix II(F), 37 CFR 401
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FAA - 23 Seismic Safety
APPLICABILITY – Contract Types – This provision applies to construction of new buildings and
additions to existing buildings financed in whole or in part through the Airport Improvement
Program.
Professional Services– any contract involved in the construction of new buildings or structural
addition to existing buildings.
Construction – any contract involved in the construction of new buildings or structural addition
to existing buildings.
Equipment – if the project involves construction or structural addition to a building such as an
electrical vault project to accommodate or install equipment.
Land – This provision will not typically apply to a property/land project.
REQUIREMENT -
A23.3.1 Professional Service Agreements for Design
SEISMIC SAFETY
In the performance of design services, the Consultant agrees to furnish a building design and
associated construction specification that conform to a building code standard that provides a
level of seismic safety substantially equivalent to standards as established by the National
Earthquake Hazards Reduction Program (NEHRP). Local building codes that model their building
code after the current version of the International Building Code (IBC) meet the NEHRP
equivalency level for seismic safety. At the conclusion of the design services, the Consultant
agrees to furnish the Owner a “certification of compliance” that attests conformance of the building
design and the construction specifications with the seismic standards of NEHRP or an equivalent
building code.
A23.3.2 Construction Contracts
SEISMIC SAFETY
The Contractor agrees to ensure that all work performed under this contract, including work
performed by subcontractors, conforms to a building code standard that provides a level of
seismic safety substantially equivalent to standards established by the National Earthquake
Hazards Reduction Program (NEHRP). Local building codes that model their code after the
current version of the International Building Code (IBC) meet the NEHRP equivalency level for
seismic safety.
Reference: 49 CFR Part 41
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FAA – 24 Tax Delinquency and Felony Conviction
APPLICABILITY – This provision applies to all contracts funded in whole or part with AIP.
REQUIREMENT -
The Contractor must have certified under the procurement process that resulted in the award of
this contract that:
• Contractor has not been convicted of a Federal felony within the last 24 months; or
• Contractor does not have any outstanding tax liability for which all judicial and administrative
remedies have lapsed or been exhausted.
Reference: Sections 8113 of the Consolidated Appropriations Act, 2022 (Public Law 117-103),
and similar provisions in subsequent appropriations acts.
DOT Order 4200.6 – Appropriations Act Requirements for Procurement and Non-Procurement
Regarding Tax Delinquency and Felony Convictions
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FAA – 25 Termination of Contract
APPLICABILITY – All contracts and subcontracts in excess of $10,000.
REQUIREMENT -
See Section 4.5 of the Agreement.
Reference: 2 CFR § 200 Appendix II(B), FAA Advisory Circular 150/5370-10, Section 80-09
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FAA – 26 Foreign Trade Restriction
APPLICABILITY – all AIP funded projects.
REQUIREMENT -
TRADE RESTRICTION CERTIFICATION
By accepting this contract the Contractor certifies the following statements are true –
1) is not owned or controlled by one or more citizens of a foreign country included in the list of
countries that discriminate against U.S. firms as published by the Office of the United States
Trade Representative (USTR);
2) has not knowingly entered into any contract or subcontract for this project with a person that
is a citizen or national of a foreign country included on the list of countries that discriminate
against U.S. firms as published by the USTR; and
3) has not entered into any subcontract for any product to be used on the Federal project that
is produced in a foreign country included on the list of countries that discriminate against U.S.
firms published by the USTR.
This certification concerns a matter within the jurisdiction of an agency of the United States of
America and the making of a false, fictitious, or fraudulent certification may render the maker
subject to prosecution under Title 18 USC Section 1001.
The Contractor must provide immediate written notice to the City if the Contractor learns that its
certification or that of a subcontractor was erroneous when submitted or has become erroneous
by reason of changed circumstances. The Contractor must require subcontractors provide
immediate written notice to the Contractor if at any time it learns that its certification was erroneous
by reason of changed circumstances.
Unless the restrictions of this clause are waived by the Secretary of Transportation in accordance
with 49 CFR 30.17, no contract shall be awarded to an Offeror or subcontractor:
1) who is owned or controlled by one or more citizens or nationals of a foreign country included
on the list of countries that discriminate against U.S. firms published by the USTR or
2) whose subcontractors are owned or controlled by one or more citizens or nationals of a
foreign country on such USTR list or
3) who incorporates in the public works project any product of a foreign country on such USTR
list.
Nothing contained in the foregoing shall be construed to require establishment of a system of
records in order to render, in good faith, the certification required by this provision. The knowledge
and information of a contractor is not required to exceed that which is normally possessed by a
prudent person in the ordinary course of business dealings.
The Contractor agrees it will incorporate this provision for certification without modification in all
lower tier subcontracts. The Contractor may rely on the certification of a prospective subcontractor
that it is not a firm from a foreign country included on the list of countries that discriminate against
U.S. firms as published by USTR, unless the Contractor has knowledge that the certification is
erroneous.
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This certification is a material representation of fact upon which reliance was placed when making
an award. If it is later determined that the Contractor or subcontractor knowingly rendered an
erroneous certification, the Federal Aviation Administration (FAA) may direct through the City
cancellation of the contract or subcontract for default at no cost to the City or the FAA.
Reference: 49 USC § 50104, 49 CFR part 30
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FAA – 27 Veteran’s Preference
APPLICABILITY – This provision applies to all AIP funded projects that involve labor to carry out
the project. This preference, which excludes executive, administrative, and supervisory positions,
applies to covered veterans [as defined under § 47112(c)] only when they are readily available
and qualified to accomplish the work required by the project.
REQUIREMENT -
In the employment of labor (excluding executive, administrative, and supervisory positions), the
Contractor and all sub-tier contractors must give preference to covered veterans as defined within
Title 49 United States Code Section 47112. Covered veterans include Vietnam-era veterans,
Persian Gulf veterans, Afghanistan-Iraq war veterans, disabled veterans, and small business
concerns (as defined by 15 USC 632) owned and controlled by disabled veterans. This
preference only applies when there are covered veterans readily available and qualified to
perform the work to which the employment relates.
Reference: 49 USC § 47112(c)
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FAA – 28 Domestic Preferences for Procurements
APPLICABILITY – all contracts and Purchase orders for work or products under the grant.
REQUIREMENT -
The Contractor certifies by signing and submitting its bid or proposal that, to the greatest extent
practicable, the Contractor has provided a preference for the purchase, acquisition, or use of
goods, products, or materials produced in the United States (including, but not limited to, iron,
aluminum, steel, cement, and other manufactured products) in compliance with 2 CFR § 200.322.
Reference: 2 CFR § 200.322; 2 CFR Part 200, Appendix II(L)
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