Guide 1 to Subpart G of Part 1942 - Project Management Agreement Between the ____ Regional Commission and the Farmers Home Administration or Its Successor Agency Under Public Law 103-354, Department of Agriculture

(Grantee)

County,

Page No.

I. Introduction

A. The _____ Regional Commission is providing a (basic or supplemental) grant for (purpose) _____ to (grantee) _____, and the U.S. Department of Agriculture, Farmers Home Administration (FmHA) or its successor agency under Public Law 103-354 has approved and will administer that grant. The FmHA or its successor agency under Public Law 103-354 has determined that funds (can or cannot) be made available under its funding program for this fiscal year for the project. The project does meet all the requisites for assistance under section 310(B) of the Consolidated Farm and Rural Development Act, as amended (7 U.S.C. 1926). In order to accomplish these purposes, the _____ Regional Commission's Federal Cochairman and the FmHA or its successor agency under Public Law 103-354 State Director hereby enter into this Memorandum of Understanding which is in accordance with the 31 U.S.C. 686.

B. This agreement is intended to cover the application phase, construction phase, and final audit.

II. General

A. Project Cost

The project costs for the purposes of this agreement shall include the costs of construction, technical services, legal services, land acquisition, permits and rights-of-way, interest during construction and contingencies.

B. Grant

The _____ Regional Commission shall make a (basic or supplemental) grant of $___ up to but not exceeding __% of the total cost of the project. These funds will be transferred to the Treasury Account of the Farmers Home Administration or its successor agency under Public Law 103-354 by Standard Form 1151, “Nonexpenditure Transfer Authorization.”

C. The undersigned FmHA or its successor agency under Public Law 103-354 State Director on behalf of FmHA or its successor agency under Public Law 103-354, in concurring to this Project Management Agreement, hereby assures the Federal Cochairman that:

1. The estimated cost of the project is reasonable and the (basic or supplemental) grant, with the funds to be supplied by the applicant, are, in its judgment, sufficient to complete the project.

2. The funds to be supplied by the applicant are available or FmHA or its successor agency under Public Law 103-354 is reasonably satisfied that the applicant has the capability of supplying such funds.

3. FmHA or its successor agency under Public Law 103-354 is reasonably satisfied that the facility will be properly and efficiently administered, operated, and maintained and that the applicant will provide sufficient funds to assure the successful and continuing operation of the facility.

D. The (grantee) _____ is subject to Executive Order 11246 and will be required to evidence compliance by execution of the following:

1. Equal Opportunity Agreement—Form FmHA or its successor agency under Public Law 103-354 400-1

2. Nondiscrimination Agreement—Form FmHA or its successor agency under Public Law 103-354 400-4

E. The (grantee) _____ shall execute assurances of nonrelocation. (If applicable.)

III. Construction Management

A. The forms and format for the documents shall conform to the requirements in subpart A of part 1942 of this chapter. Generally, the following items shall be included:

1. Contract Documents

2. Specifications

3. Plans

B. FmHA or its successor agency under Public Law 103-354 will approve the plans and specifications.

C. FmHA or its successor agency under Public Law 103-354 will obtain a certification of adequacy from the Federal Environmental Protection Agency (include only when applicable).

D. FmHA or its successor agency under Public Law 103-354 will obtain a non-pollution certificate from the (state) _____ (agency) _____ (include only when applicable).

E. FmHA or its successor agency under Public Law 103-354 will make monthly inspections.

F. Contract change orders will not become effective until approved by FmHA or its successor agency under Public Law 103-354.

G. Final inspection will be conducted by FmHA or its successor agency under Public Law 103-354.

IV. Financial Management

A. Financial management of the project shall be according to subpart A of part 1942 of this chapter.

B. FmHA or its successor agency under Public Law 103-354 will provide the _____ Regional Commission with a copy of the audit report.

C. If actual costs fall below the costs on which the grant was calculated, the Federal and non-Federal shares will be reduced proportionately.

D. FmHA or its successor agency under Public Law 103-354 will conform to the financial reporting requirements for transferred funds as required by the attached copy of “Reporting of Funds Transfer by Participating Agencies.”

V. Compensation

Services rendered by FmHA or its successor agency under Public Law 103-354 for the processing and administration of Commission grants in cases where neither FmHA or its successor agency under Public Law 103-354 loan nor grant funds are involved shall be on a reimbursable basis. Reimbursement will be based on five percent of the amount of the grant up to $50,000 and an additional one percent of any amount over the first $50,000 of the Commission grant. The full amount of the reimbursement will be transferred to FmHA or its successor agency under Public Law 103-354 at the time the grant funds are transferred to FmHA or its successor agency under Public Law 103-354.

VI. No provision in this agreement shall abrogate the legal requirements of administrative responsibilities as set forth in the Consolidated Farm and Rural Development Act or section 509 of the Public Works and Economic Development Act of 1965, as amended.

For the _____ Regional Commission

(name)

Federal Cochairman

______, 197_

For the Farmers Home Administration or its successor agency under Public Law 103-354, USDA

(name)

State Director

______, 197_