the contract will be made to the lowest responsible and acceptable bidder.

(f) Permit the Secretary, the Commissioner, and the Comptroller General of the United States, or any of their duly authorized representatives, to have access for the purpose of audit and examination to any books, documents, papers, and records of the applicant that are pertinent to the receipt and use of Federal financial assistance under this part; (g) Permit inspection by the Commissioner or his duly authorized representative of the transmission apparatus acquired with Federal financial assistance at any reasonable time within 10 years after completion of the project;

(h) Repay to the United States any Federal grant funds found by the Commissioner to have been used contrary to law, to these regulations, to the assurances given to the Commissioner and to the conditions of the Federal grant, and any amount paid in excess of the Federal share of the actual cost of the approved project;

(i) Comply with the regulations issued by the Department of Health, Education, and Welfare to implement Title VI of the Civil Rights Act of 1964 (45 CFR Part 80);

(j) Incorporate into any contracts exceeding $10,000 for the installation of transmission apparatus acquired in the project the provision for equal employment opportunity for all qualified persons without regard to race, creed, color, or national origin, as prescribed by section 203 of Executive Order 11246 (30 F.R. 12319 Sept. 28, 1965); and otherwise comply with the requirements of section 301 of said Executive order; and

(k) Comply with Executive Order 11296 relating to the evaluation of flood hazards in locating federally financed projects.

§ 60.18 Payment of Federal grant.

(a) After the Commissioner's approval of an application becomes final in accordance with § 60.15(b), the amount of the Federal grant will be paid to the applicant in the following manner unless the Commissioner for good cause shown has approved an alternative method of payment:

(1) An amount not exceeding 50 percent of the total amount of the Federal grant entitlement approved by the Commissioner will be paid to the applicant upon the applicant's request and certi

fication that such an amount is needed to pay liabilities incurred in the project.

(2) An amount not to exceed the balance of the grant entitlement will be paid upon completion or substantial completion of the project. Payment will be made only after inspection of the project and the applicant's financial records pertinent to the Federal financial assistance, as the Commissioner may deem necessary, and approval by the Commissioner of a Request for Final Payment which shall include

(i) Certification that the noncommercial educational broadcasting station has, where required, FCC authorization to broadcast following acquisition and installation of project equipment,

(ii) Certification that the acquisition and installation of the project equipment either has been completed or is substantially completed in accordance with the project as approved by the Commissioner, and

(iii) A detailed financial report itemizing the actual costs incurred in either completing the project or substantially completing the project, and the sources of funds for paying for the items of transmission apparatus delivered, accompanied by certified true copies of invoices, bills, or other satisfactory documents indicating that the expenses have been incurred and the amount thereof. If payment is requested on the basis of substantial rather than final completion of the project, the amount of payment provided for herein shall be computed on the basis of the cost attributable by the Commissioner to the completed portion of the project. Upon final completion of such project as approved by the Commissioner, the applicant will amend the Request for Final Payment to include the remaining project costs and these will be paid in accordance with subparagraph (3) of this paragraph.

(3) Any payment on the basis of final completion of the project pursuant to subparagraph (2) of this paragraph will be made upon:

(i) Final inspection and certification of final completion by an appropriate program official, and

(ii) Receipt of written assurances, binding upon the applicant, by an appropriate official thereof, that amounts of sustained audit exceptions taken in any subsequent audit will be refunded to the United States.

(b) If the actual costs incurred in completing the project are less than the

estimated costs which constituted the basis for the Commissioner's determination of the amount of the Federal grant entitlement, the amount of the final grant shall be that amount of the actual total project cost remaining after deducting the amount of local matching funds certified by the applicant at the time of project approval as being available for use in the project (including the fair-market value of gifts, if any), provided that in no case shall the final Federal grant exceed the Federal grant entitlement.

§ 60.19 Fiscal reports and records.

(a) The applicant shall furnish such progress or other reports relating to the construction of the project as may be directed by the Commissioner.

(b) The applicant shall establish and maintain fiscal controls, accounts and other documents which will provide for the specific identification of the receipt and disposition of all Federal grant funds and clearly identify the nature, purpose, and amount of all expenditures incurred for the project.

(c) The applicant shall maintain accessible and intact all fiscal or other records relating to the receipt and expenditure of the Federal grant funds and relating to the expenditure of the non-Federal share of the cost of the project:

(1) For 5 years after the close of the fiscal year in which the expenditure was made; or

(2) Until the applicant is notified of the completion of the Secretary's fiscal audit, whichever is earlier.

(d) The records involved in any expenditure which has been questioned shall be further maintained until the matter has been reviewed and cleared by the Secretary.

(e) The applicant shall maintain, for 10 years after completion of the project, adequate descriptive inventories or other records supporting accountability of all transmission apparatus acquired and installed in the project and costing, or in the case of donations, having a fair market value of, $100 or more, except that when depreciation of such apparatus results in a fair market value of less than $100 per unit such apparatus may be deleted from such inventory. The applicant shall appropriately mark such transmission apparatus in a permanent manner in order to assure easy and accurate

identification and reference to such inventory records.

§ 60.20 Annual status reports.

During the 10-year period commencing with the date of completion of a project with respect to which a Federal grant has been made pursuant to this part, the applicant or other owner of transmission apparatus resulting from the project must file with the Commissioner:

(a) An annual status report on or before each April 1 following completion of the project, certifying:

(1) That the owner of such transmission apparatus continues to be an agency, officer, institution, foundation, corporation, association, or municipality described in § 60.4 as being eligible to receive a grant;

(2) That there has been no change in ownership or use of such transmission apparatus during the reporting period, or describing any change during such period; and

(3) That such transmission apparatus as are owned by the applicant as of that date are being used for noncommercial educational broadcasting purposes.

(b) A copy of each of the following applications and reports which the applicant or other owner files with the FCC with respect to any such transmission apparatus:

(1) Applications for extension of construction permit, license to cover construction permit, modification of construction permit or license, renewal of license and for voluntary or involuntary assignment or transfer of control; and

(2) Ownership reports and annual financial reports.

§ 60.21 Change in eligibility or use.

(a) If, within 10 years after completion of any project with respect to which a Federal grant has been made pursuant to this part:

(1) The applicant or other owner ceases to be an agency, officer, institution, foundation, corporation, association, or municipality described in § 60.4 as being eligible to receive a Federal grant; or

(2) Any of the transmission apparatus included in the project ceases to be used for any purpose, either permanently or for an indefinite period of time, or such apparatus is used or disposed of for other than noncommercial educational broadcasting (other than as a trade-in for acquisition of other transmission appa

ratus to be used for such purposes), the applicant or other owner shall (except as provided in paragraph (b) of this section) pay to the United States the amount bearing the same ratio to the then fair-market value of such apparatus, as the amount of the Federal participation bore to the cost of acquisition or installation of such apparatus.

(b) Where the applicant or other owner proposes to cease using any of the transmission apparatus included in the project for noncommercial educational broadcasting (as set forth in subparagraph (2) of paragraph (a) of this section), he may file a petition with the Commissioner requesting release from the obligation to make repayment to the United States, and setting forth with particularity the grounds and reasons for the request. Such petitions will be granted by the Commissioner only for good cause, and only if the proposed cessation of use for noncommercial educational broadcasting has not already taken place, unless the petitioner demonstrates to the satisfaction of the Commissioner that such cessation was due to causes not under the control of the petitioner. If the Commissioner denies the petition, the applicant or other owner may within 30 calendar days from the date of receipt of notice of such denial, file a petition for reconsideration pursuant to § 60.22.

(c) In any case where the Commissioner has reason to believe that any change in eligibility or use of transmission apparatus (as described in paragraph (a) of this section), has already taken place, he will promptly notify the applicant or other owner of the grounds and reasons for his belief that repayment to the United States is required. The applicant or owner may, within 30 days from the date of receipt of such notification, file with the Commissioner a petition for reconsideration pursuant to § 60.22.

(d) If the Commissioner determines that the applicant or other owner is obligated to make a repayment to the United States he will seek to reach agreement as to the amount of such repayment. If such an agreement cannot be reached, the Commissioner will cause an action to be brought in the U.S. District Court for the district in which the noncommercial educational broadcasting facilities are situated to determine the amount of the repayment. and will take

such action as may be necessary to secure repayment.

§ 60.22

Petition for reconsideration.

(a) A petition for reconsideration as provided in §§ 60.8, 60.15, 60.16, and 60.21 must be filed timely with the Commissioner, must state with particularity in what respect the Commissioner's action is claimed to be unjust, unwarranted, or erroneous, must specifically indicate the relief sought, and must be accompanied by a written statement on the question presented. The petition for reconsideration may be accompanied by a request for a hearing, in which event the petitioner must state with particularity the grounds and reasons therefor. If the Commissioner designates the matter for hearing, he will specify the questions in issue, designate the hearing officer and specify the procedures and rules relating to the conduct of the hearing. If the Commissioner does not find that sufficient grounds and reasons exist for granting the relief sought or for providing a requested hearing, he will notify the petitioner, giving reasons for the refusal.

(b) In the event of a hearing the hearing officer shall make a written report to the Commissioner based upon the hearing and containing a recommended decision on the issues. A copy of the report shall be mailed to the petitioner, and the petitioner shall have 15 calendar days from the date of receipt (or such additional time as may be given for good cause) to file with the Commissioner a written statement setting forth with particularity alleged errors in the report and discussing any policy and legal issues presented.

(c) If no written statement is made by the petitioner or by a State educational television or radio agency on the report of the hearing officer and if the Commissioner does not decide to review it, such report shall become the final administrative decision without further proceedings. If a written statement is made on the report of the hearing offcer or if the Commissioner decides to review it, he shall review the record of the proceedings and issue a decision based thereon, setting forth the grounds and reasons therefor.

(d) The Commissioner will notify each State educational television or radio agency, if any, in any State, any part of which lies within the service area of the petitioner's broadcasting station,

of the filing of a petition for reconsideration under this section and each such agency will be given an opportunity to comment upon the petition. In the event the Commissioner provides a hearing with respect to an action taken under § 60.15, each such State educational television or radio agency will be given an opportunity to appear and to present relevant information and arguments. Any such agency participating in the hearing will be furnished the report of the hearing officer referred to in paragraph (b) of this section and given an opportunity to make a written statement thereon, prior to the expiration of the time period during which time the petitioner may file his statement under paragraph (b) of this section.

(e) Interested persons other than a State educational television or radio agency referred to in paragraph (d) of this section may comment in writing upon any petition for reconsideration filed under this section and for good cause shown, may be given an opportunity to participate to such extent as the Commissioner may determine is appropriate in a hearing held pursuant to this section.

establishing priorities, examining alternative solutions, selecting possible approaches, and formulating action programs, including strategies for their evaluation, to achieve specified goals. § 61.2 Purpose.

Funds under this part may be used by the Secretary of Health, Education, and Welfare to enter into contracts with and award grants to agencies, organizations, institutions, or individuals, and for other expenditures, for the purpose of (a) planning for the succeeding fiscal year programs or projects for which the U.S. Commissioner of Education has responsibility for administration as provided in section 401 of the Act, or (b) evaluation of programs or projects for which the U.S. Commissioner of Education has responsibility for administration as provided in section 401 of the Act. (20 U.S.C. 1221-1222)

§ 61.3 Criteria for selection.

The Secretary will enter into contracts and award grants, on the basis of proposals submitted in such form and containing such information as he may from time to time require, according to the following criteria: (a) The technical quality and economic efficiency of the proposal, (b) the relevance of the prior experience of the applicant and the applicant's principal staff, (c) the applicant's demonstrated expertise in the specific educational area to be investigated and in planning and evaluation activities in general, (d) the applicant's record of performance on prior Federal contracts and grants, particularly those awarded by the Office of Education, and (e) the applicant's knowledge and understanding of any social or minority-group problems which may be involved in the particular activity to be undertaken. § 61.4 Terms and conditions of awards.

Each contract or grant awarded under this part will set forth the time period of the award, the expenditures which may be incurred, the reports which must be filed, and the other terms and conditions upon which the award is made.

(a) These standards are promulgated by the Departments of Health, Education, and Welfare, Labor, and Defense to implement statutory and regulatory provisions requiring the establishment and maintenance of personnel standards on a merit basis in the administration of various grant-in-aid programs.

(b) The development of proper and efficient administration of the grant-inaid programs is a mutual concern of the Federal, State, and local agencies cooperating in the programs. Proper and efficient administration requires clear definition of functions, employment of the most competent available personnel, and development of staff morale and individual efficiency. The cooperative efforts of merit system and program agency personnel offices in providing comprehensive personnel programs are essential. Such programs provide for analyzing and classifying jobs; establishing adequate and equitable salary, fringe benefit, and retirement plans; projecting manpower needs and planning to meet them; developing effective recruitment, selection, placement, training, employee evaluation, and promotion programs; assuring equal opportunity and providing affirmative action programs to achieve that end; protecting employees from discrimination, arbitrary removal, and political pressures; conducting positive employeemanagement relations and communications; and providing research to improve personnel methods. Personnel programs must be planned and administered in a timely, expeditious manner to meet effec

tively program and merit system objectives.

(c) An integral part of the grant-inaid programs is the maintenance by the State and local governments of a merit system of personnel administration for the grant-aided agencies. The Federal agencies are interested in the development and continued improvement of State and local merit systems but exercise no authority over the selection, tenure of office, or compensation of any individual employed in conformity with the provisions of such systems.

(d) Laws, rules, regulations, and policy statements to effectuate a merit system in accordance with these standards are a necessary part of the approved State plans required as a condition of Federal grants. Such laws, rules, regulations, policy statements, and amendments thereto, will be reviewed for substantial conformity to these standards. The administration of the merit system will likewise be subject to review for compliance in operation.

(e) Continuing application of these standards will give reasonable assurance of a proper basis for personnel administration, promote a career service, and result in increased operating efficiency and program effectiveness. Within these standards means are provided for the effectuation of national policies for structuring jobs and the training and employment of the disadvantaged.

(f) In order to assist State and local jurisdictions in maintaining their merit systems under these standards, technical consultative service will be made available.

These standards are applicable to all personnel, both State and local, except those exempted in this section, engaged in the administration of grant-in-aid programs under Federal laws and regulations requiring the establishment and maintenance of personnel standards on a merit basis. The standards apply to personnel engaged in the administration of the federally aided programs, irrespective of the source of funds for their individual salaries. The following positions may be exempted from application of these standards: Members of policy, advisory, review, and appeals boards or similar bodies who do not perform administrative duties as individuals; officials serving ex officio and performing incidental administrative duties; the