Commerce may impose spending limits on contracts, restricting the amount of money a local agency may spend, regardless of the total amount of the contract.
For example, spending limits may be used to limit expenditures until the local agency meets certain conditions or Commerce receives full program funding.
Within the limit set by Commerce, administrative expenditures cannot exceed a percent of the spending limit that is higher than the percent of the administrative funds in the contract award.
For example, if the contract provides seven percent of the total award for administration, up to seven percent of the spending limit may be spent for administrative costs.
Commerce will only reimburse local agencies up to the amount of the spending limit until the local agency receives email or written notification from Commerce that the spending limit is lifted.
Local agency files must include a hard copy of Commerce notification.
Effective Date: July 2017 Page 1 of 1
Exhibit 8.4A, Certification Regarding Debarment, Suspension, or Ineligibility and Voluntary Exclusion
Replaces: Section 8.4 – April 2010 – Primary Tier Covered Transactions.
Policy 8.4 SUbcontracting
Subcontracting Weatherization Services: Local agencies may subcontract labor and installation services in accordance with procurement standards described in Commerce’s contract General Terms and Conditions, and Special Terms and Conditions.
When contracting with installers, manufacturers, or suppliers, local agencies shall follow standard business practices for selecting the best weatherization material or installation for the best price.
Local agencies are responsible for ensuring that subcontractors are familiar with program measures, installation specifications, and current techniques and methodologies.
Certifying Annually: Local agencies must certify annually that neither the organization nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in a weatherization contract with Commerce by any federal department or agency as part of the General Weatherization Work Plan. See Exhibit 8.4A, Certification Regarding Debarment, Suspension, or Ineligibility and Voluntary Exclusion – Primary Tier Covered Transactions.
Local agencies are prohibited to enter into contracts with parties that are suspended or debarred, or whose principals are suspended or debarred.
Covered transactions include procurement contracts for goods and services equal to or in excess of $100,000 or more.
Reviewing Information: Commerce reserves the right to review and approve the selection process and the contract form used by local agencies.
Documenting Subcontracts: Local agency files must include all contracts entered into with subcontractors.
Effective Date: July 2016 Page 1 of 1
Exhibit 8.4.1A, Property Owner Release Form
Replaces: Section 8.4.1 – July 2013 Variance #11 – SWS 2.0702.1b
Policy 8.4.1 WARRANTIES and OWNER RELEASE
Local agency subcontractors must provide a one-year warranty against defects in materials, manufacture, design, or installation of work performed under contract.
Local agencies and their subcontractors must provide homeowners with the original warranty paperwork for materials and appliances installed or provided.
Local agencies must confirm homeowner receipt of all warranty information.
Variance #11: DOE granted a variance from SWS Section 2.0702.1b Extended Warranty allowing: With no additional cost to the client, contractor(s) will provide one year warranty on equipment, materials, and labor.
Local agencies must receive owner authorization to install measures on a dwelling unit. Exhibit 8.4.1A, Property Owner Release Form, is an example of acceptable documentation.
Client files must include the following documentation:
Confirmation of homeowner receipt of warranty information.
Scope of Work.
Exhibit 8.4.1A, Property Owner Release Form, or equivalent documentation.
Effective Date: July 2017 Page 1 of 1
Exhibit 8.5A, Federal Certification Regarding Lobbying
Replaces: Section 8.5 – April 2009 Standard Form LLL, Disclosure of Lobbying Activities
Policy 8.5 Certification Regarding Lobbying
Filing Lobbying Certification Annually: Local agencies that receive $100,000 or more in federal funds, in one or more awards during the fiscal year, must file a Federal Certification Regarding Lobbying annually. See Exhibit 8.5A, Federal Certification Regarding Lobbying.
The same requirements apply to all levels of subcontract, sub grant, and contracts under grants, loans, and cooperative agreements.
Certifying Federal Funds will not be used for Lobbying: Local agencies must certify that they will not use federal funds to lobby for support of federally funded programs.
Disclosing Lobbying Activities: If any funds other than federal are used for lobbying at the federal level, as defined in the certification, such activity must be reported on the Standard Form LLL, Disclosure of Lobbying Activities.
Documenting Certifications and Disclosures: Local agency files must include the following documentation:
Copies of all certifications and disclosures signed by the local agency and submitted to Commerce. See Exhibit 8.5A, Federal Certification Regarding Lobbying
Copies of all certifications and disclosures signed by subcontractors and submitted to the local agency. See Exhibit 8.5A, Federal Certification Regarding Lobbying
Copies of Standard Form LLL, Disclosure of Lobbying Activities, as applicable.
Effective Date: July 2017 Page 1 of 2
Replaces: Section 8.6 - July 2015 Contract Management System (CMS) Portal via SAW
Policy 8.6 Issuance of Working Capital Advances
Requesting Working Capital Advance: A local agency may request an initial working capital advance one month prior to planned expenditures using the “Advance Request” line in request for reimbursement through the Contract Management System (CMS) Portal.
Requests for an advance may not exceed the local agency’s planned expenditures for the first sixty days’ Administration/Program or 10 percent of the total Administration/Program.
Commerce will issue the advance once both parties sign the weatherization program contract and the local agency submits the request for advance.
The working capital advance must be liquidated within sixty days of issue.
If a local agency has a $10,000 advance and sends in a request for reimbursement showing $8,000 in expenditures and estimates that its expenditures for the next month will be close to $10,000, then the local agency should enter $8,000 in the “Advance Request” space on its request for reimbursement. Commerce will apply the $8,000 the local agency spent towards liquidation of its original advance to show that those funds were expended first. Commerce will issue a new advance for $8,000 leaving the local agency with the $2,000 remaining from the initial advance and new advance of $8,000 for a total of $10,000.
If a local agency has a $10,000 advance and sends in a request for reimbursement with $12,000 of expenditures but wants to maintain only a $10,000 advance, the local agency should enter $10,000 in the “Advance Request” space.
If a local agency has a $10,000 advance and sends in a request for reimbursement for $10,000 but knows it will only need $5,000 for the next month, the local agency should request an advance of $5,000.
Wx Policy 8.6 Issuance of Working Capital Advances Page 2 of 2
If a local agency has a $10,000 advance and sends in a request for reimbursement for $2,000 and requests an advance of $2,000, Commerce will issue it. However, if the local agency only spends another $2,000 the following month and it requests additional funds, the advance will not be approved and the expenditures will be applied against the $10,000 advance. Future requests for reimbursement will also be applied against the advance until local agency expenditures increase or the advance is completely liquidated.
Deducting Reimbursements from Advance: When Commerce receives a request for reimbursement after the advance is issued, the requested reimbursement will be deducted from the advance.
Requesting Additional Advance: When an advance is reduced and performance verifies need, the local agency may submit a request for an additional advance on any month’s request for reimbursement to bring them up to the sixty days of Administration/Program or ten percent of the total Administration/Program.
Returning Over-Projected Advance: After sixty days, if the local agency has over-projected its advance needs or has more than ten percent cash on hand, Commerce may request that the excess amount be returned by a check accompanying that month's request for reimbursement.
When cash advance needs have been over-projected and are reconciled, the local agency may request an additional advance for sixty days of Administration/Program or ten percent of the total Administration/Program. Commerce may, however, adjust the advance request based on the previous sixty days expenditures.
Requiring Justification and Prior Approval: Written justification and prior approval is required for advance payments exceeding ten percent (10%) of the total contract amount.
Local agencies must submit their requests using the “Advance Request” section on the request for reimbursement (A19 forms) through the CMS Portal and also submit a justification for requesting the additional advance.
Additional advances will be approved to meet occasional special needs required to meet exceptional production demands, not as a regular fiscal policy.
Billing any Outstanding Advance: In any given year, all outstanding local agency advance amounts must be applied to allowable program costs on the June 19-1A Reimbursement Request Form and submitted to Commerce no later than July 15th. Outstanding advance amounts not cleared as above by July 15th will be billed to the local agency for payment.
Effective Date: July 2017 Page 1 of 3
10 CFR 440.25
10 CFR 600
Commerce General Terms and Conditions and Specific Terms and Conditions
Contract Management System (CMS) Portal via SAW
Exhibit 8.8, Final Contract Closeout Report- example
Replaces: Section 8.7 – July 2016 Exhibit 1.3.1E, Sample Weatherization Program Utility Information Release Waiver
POLICY 8.7 REPORTING AND REIMBURSEMENT OF EXPENSES
Monthly Reimbursements: The payment system for local agencies is based on monthly reimbursement in the amount of actual expenditures from the previous month.
No payment will be made until Commerce receives an accurate and complete request for reimbursement (A19 forms) through the Contract Management System (CMS) Portal.
Budget Categories: Subsequent to the issuance of a working capital advance, Commerce will reimburse local agencies for expenditures which are within the budget categories reported on the request for reimbursement.
Monthly Requests for Reimbursement
Local agencies must submit their requests for reimbursement with verified electronic signature monthly, on or before the 15th of each month for the previous month’s expenditures.
Local agencies must report each month on a separate form.
Local agencies must report each fund source on a separate form.
Local agencies must submit each separate A19 form electronically through the CMS Portal.
Local agencies should include unpaid obligations in requests for reimbursement on an accrual accounting basis.
Exception: Unpaid obligations may be included in reports on a cash accounting system as part of a negotiated reporting requirement waiver. See Reporting Requirement Waivers in this policy.
Wx Policy 8.7 Reporting and Reimbursement of Expenses Page 2 of 3
Local agencies must submit monthly requests for reimbursement even if there was no production or fiscal activity during the previous month.
Commerce will make an effort to correct incomplete or inaccurate requests for reimbursement by phone or email. If an incomplete or inaccurate request for reimbursement is returned for correction, the local agency must submit a corrected request for reimbursement within ten working days from the date returned.
Local agencies must retain documentation (electronic or hard copy) to support the Request for Reimbursement (A19) amounts and provide to Commerce, upon request.
Final Contract Closeout Report
Local agencies must submit a Final Contract Closeout Report for each funding source that accurately reflects the work completed and funds expended during the program year.
Local agencies must submit electronic reports to Commerce no later than 45 days after the program year closes.
Exception: Instead of electronic reports, local agencies may submit hard copy reports.
Local agencies must submit the complete list of WIDS project numbers the contract funded.
Reporting Requirement Waivers
Commerce may consider waivers for situations such as delayed reporting or to allow local agencies on a cash accounting system to claim documented unpaid obligations on their request for reimbursement form.
Waivers that allow delayed reporting will not affect the working capital advance payment limit.
Local agencies must request reporting requirement waivers in writing in accordance with Commerce General Terms and Conditions.
Wx Policy 8.7 Reporting and Reimbursement of Expenses Page 3 of 3
Evaluation Data Collection and Reporting
Commerce will, from time to time, conduct an evaluation of its low-income weatherization program to determine the extent to which it is accomplishing its objectives and at what cost.
For example, Commerce will assist DOE in its national evaluation. In preparation for the evaluation, DOE requests that Commerce work with its local agencies during the evaluation period to ensure that signed client waivers are acquired enabling program access to utility and other energy vendor billing records and that account information, including account number, the name to which the account is billed and the billing address, for all energy vendors, both electric and the primary heating source, is accurately recorded for all clients. Account information must include both consumption and expenditure data. See Exhibit 1.3.1E, Sample Weatherization Program Utility Information Release Waiver, for a sample client waiver.
Whenever possible, local agencies are encouraged to obtain 12 months pre-weatherization billing data (usage and cost).
Additional evaluation data collection responsibilities will be defined as needed.
Effective Date: July 2017 Page 1 of 1
Exhibit 8.8A, Sample Final Contract Closeout Report (Forms 1-6)
Exhibit 8.8B, Sample Weatherization Contract Closeout Checklist
Section 8.9, Counting Year-End Unit Completions
Section 8.10, Refunds
Section 8.11, Program Income
Replaces: Section 8.8 – April 2009 Section 8.12.2, Weatherization Materials Transfer and Inventory
Policy 8.8 Final Contract Closeout Report
Submitting Final Contract Closeout Reports: Local agencies must submit a final report for each funding source that accurately reflects the work completed and funds expended during the program year. See Exhibit 8.8A, Sample Final Contract Closeout Report (Forms 1-6) and Exhibit 8.8B, Sample Weatherization Contract Closeout Checklist.
Submitting Timely Reports: Local agencies must submit reports to Commerce 45 days after the program year closes.
Failure to provide timely closeout reports in accordance with Commerce requirements may result in penalties which may include, but not be limited to, Commerce denying or delaying local agency applications in future funding rounds.
Requiring Reports: Local agencies must submit closeout reports after the close of the contract period, during the transfer of obligations to another local agency, or upon termination of the contract for any reason.
Returning Funds: Unexpended funds returned to Commerce at the end of a contract period must be returned with Administrative and Program Support funds in proportion to contract awards.
Effective Date: July 2017 Page 1 of 1
Replaces: Section 8.9 – April 2009 Policy 8.8, Final Contract Closeout Report
Policy 8.9 Counting Year-End Closed Units
At the close of a contract period, local agencies must claim as unit production only units which are final inspected by a Quality Control Inspector (QCI) and closed.
Units must be counted in the contract period in which they are closed.
Units partially weatherized but not completed, inspected, and closed cannot be counted in the total production of that contract period.
DOE’s overall investment cannot exceed the average annual cost per unit.
Local agencies may use their 45-day closeout period to complete commitments initiated before the end of their contract period.
Commitments may include unit inspection and file closure to count them in program year production.
All goods, services, and equipment must be received by the last day of the contract to be charged to that contract.
SECTION 8.10 REFUNDS
Local agencies may receive and re-spend refunds from property owners who choose to sell their property to non-low-income purchasers after the weatherization work has been completed by the local agency with funds awarded under prior year contracts. See exhibits 1.4.1A, Weatherization Program Property Owner/Agency Agreement, and 1.4.1B, Weatherization Program Property Owner/Agency Agreement for Multi-Family Buildings, for conditions.
Refunds must be used first to weatherize units in the current contract period.
Units weatherized with refunds must be included in the total unit count for the contract period in which they were spent. Units must be reported monthly on the Monthly Weatherization Report for Completed Units (Exhibit 8.7B).
Do not include refund dollar amounts in monthly requests for reimbursement. Refund dollar amounts will be accounted for in the Final Contract Closeout Report (Section 8.8).
Local agency files must include the following documentation:
Applicable property owner/agency agreements (exhibits 1.4.1A, Weatherization Program Property Owner/Agency Agreement, and 1.4.1B, Weatherization Program Property Owner/Agency Agreement for Multi-Family Buildings).
Monthly Weatherization Report for Completed Units (Exhibit 8.7B).
Final Contract Closeout Report (Exhibit 8.8A).
See Section 1.3.3, Using Property Owner/Agency Agreements.
SECTION 8.11 PROGRAM INCOME
Local agencies must track program income and expend it first to avoid reporting at year’s end.
Local agencies must report program income if left unexpended in final contract closeout reports (See Section 8.8, Final Contract Closeout Report) to account for general program income earned from the following:
Activities supported by a contract award.
Income resulting from grants.
Unless restricted by contract, local agencies may retain program income received from services provided and usage or rental fees.
Local agencies may use program income as follows:
To pay all or part of the local agency share of allowable project costs during the same budget period.
To pay for costs not included in the total approved budget if Commerce determines that such costs are directly related to the objectives of the Federal statute under which the grant was awarded (weatherization related activities for low-income clients).
Commerce and its funding sources have no right to any portion of general program income earned or accrued after the project ends or the contract is terminated.
Local agencies must have in place a system for tracking all program income.
Local agencies must report all program income at the end of each contract period. See Section 8.8, Final Contract Closeout Report, for policies and forms.
Local agencies must establish a written inventory policy.
Written inventory policies must include the coordination of all functions – including scheduling, completions, purchasing, storage, and cash flow.
Local agencies must maintain records, perform inventories, and maintain control systems to prevent loss, damage, or theft of equipment, tools, materials, and supplies.
Local agencies must use a Master Control System.
Quarterly physical counts must be done to verify book records.
A daily usage system must be a central feature of the inventory system.
An automatic ordering system for frequently used materials must exist.
All non-expendable purchases with a value of $5000 or more, and which have a useful life of more than a year, must be tagged with a unique number to reflect funding sources and must be logged into property control records for identification purposes.
All materials received must be accounted for by invoices from vendors which describe the material(s), number of units, unit cost, total costs, shipping charges, if any, and sales tax.
Local agency files must include a written inventory policy.
See Section 8.8, Final Contract Closeout Report, for policies and procedures pertaining to equipment inventory.
SECTION 8.12.1 DISPOSITION OF EQUIPMENT/VEHICLES
Equipment/Vehicles purchased for $5,000 or more:
Local agencies are required to maintain an inventory for all purchases of equipment/vehicles with a useful life of one year or more and a purchase price of $5000 or more. When wanting to acquire replacement equipment/vehicle, the Local Agency (LA) may use the equipment/vehicle to be replaced as trade-in, subject to approval by DOE for DOE related program purchases, all others by Department of Commerce (Commerce).
If an LA no longer has a need for the equipment/vehicle purchased with weatherization funds for a purchase price of $5000 or more, the LA must:
Notify Commerce in writing (Equipment/Vehicle Disposition Form) of its intent to dispose of vehicle/equipment. The notice must include a complete description, including the condition of the equipment/vehicle.
The LA will offer equipment/vehicle to LA within the Weatherization Program Network at no cost except for transfer costs.
This process is coordinated with the Commerce representative.
Equipment/Vehicle will be offered to LA on a first come, first served basis.
If no LA wants the equipment it may, with written Commerce approval, be sold.
Once it is determined that there are no Local Agencies wanting the equipment/vehicle being offered, the sale will proceed as stated in items 2. or 3. below.
Equipment/Vehicle with a Fair Market Value of $5,000 or more:
The LA must advertise the equipment in a local community publication, asking for sealed bids to be submitted by a specific date. The opening bid date must be published in the advertisement.
Equipment/Vehicle must be sold to the highest bidder.
The awarding agency (Federal Government) shall have a right to an amount calculated by multiplying current Market Value or proceeds from the sale by the awarding agency’s share of the capital asset/vehicle/equipment. The remaining proceeds must be used as program income for program which originally purchased this equipment.
Equipment/Vehicle with a current per unit Market Value under $5,000
Commerce will approve or recommend method of sale or disposition.
If there are Local Agencies wanting the equipment/vehicle, then it will be offered on first-come first-served bases without cost except transfer costs.
The local agency must use the income in the program which originally purchased the equipment/vehicle.
Proceeds from equipment/vehicle sale must be tracked and reported as program income.
Equipment/Vehicles beyond repair with a minimum Fair Market Value:
With Commerce’s approval it can be sold for scrap value. Proceeds are to be treated and reported as program income.
Copies of paperwork from salvage sale must be provided to Commerce for their records.
At any time during the life cycle of an equipment/vehicle whose purchase price was $5,000 or more the agency may use the equipment/vehicle to be replaced as a trade-in, subject to approval by DOE for DOE related purchases and Washington State Department. of Commerce for all other funded purchases. For all other Equipment/Vehicle dispositions the following procedure will be followed.
Notice/Request for Disposition:
When an agency determines equipment/vehicle is no longer needed, agency is required to notify Commerce Representative using the Equipment/Vehicle Disposition Form. Notice shall be in e-mail form stating reason “Equipment/Vehicle” is no longer needed or useful. Notice shall identify equipment/vehicle and provide Model#, Serial# and VIN#, and other required information in Part 1 of Equipment/Vehicle Disposition Form.
Equipment/Vehicle whose Fair Market Value is $5,000 or more:
Commerce will give their approval or not to proceed with the disposition process by signing the completed Part 1 section of the disposition form.
Once approved for disposition, the LA is required to send one e-mail to all LAs within the Weatherization Network with a cc to the Commerce representative as required in Part 2 of the Equipment/Vehicle Disposition Form.
E-mail shall offer equipment/vehicle at no cost to LAs within the Weatherization Network. Equipment/Vehicle will be offered on a first-come, first served bases.
E-mail shall include specifications/description, age, condition, & photos if available.
After 14 days the initiating LA will know whether someone wants or doesn’t want this equipment/vehicle at no cost other than transfer fees.
LA wishing to dispose of equipment/vehicle will submit the Equipment/Vehicle Disposition Form-Part 2, to the Commerce representative indicating whether an LA within the Weatherization Network wants or doesn’t want this equipment/vehicle.
Commerce will review and approve or disapprove this request (Equipment/Vehicle Disposition Form) to proceed with either the sale or transfer process on part 2 of the Equipment/Vehicle Disposition Form. The decision will be based on most of the information contained in the completed Disposition Form parts 1 and 2.
If on a first-come first-served basis an agency was selected, Commerce and the LA that has the equipment/vehicle will begin transfer process.
If no LA was interested Commerce will authorize agency to begin formal sales bid process. Sale shall be publically posted and follow LA’s Notice of Sale Offering (must be documented). Highest bidder, (following proper procurement practices) shall be selected and notified. Commerce will collect proceeds from sale and follow process for returning funds to awarding agency.
Equipment/Vehicle with a Fair Market Value of $5,000 or less:
If fair market value as determined by highest bidder is less than $5,000, then the sales process will begin with copies being sent to Commerce for their records.
An Equipment/Vehicle subject to the provisions of this policy whose Fair Market Value (determined by industry comparable pricing, condition, age, and useful life) is less than $5,000, is NOT subject to DOE approval and MAY be allowed to dispose of said item, with the approval of Washington State Dept. of Commerce.
Proceeds from this sale may be retained and if so, must be used by Local Agency’s Weatherization Program operations only as program income.
Local agency files must include at a minimum the following:
Copy of completed equipment/vehicle disposition form.
Copy of email notice offering equipment/vehicle to LA
Copy of award communication.
Equipment/Vehicle sales receipt.
Equipment/Vehicles beyond repair with a minimum Fair Market Value:
With Commerce’s approval may be sold for scrap value. Proceeds are to be treated and reported as program income.
Copies of paperwork from salvage sale must be provided to Commerce for their records.
Income Reporting & Close-out Requirements:
See Section 8.11, Program Income & See Section 8.8, Final Contract Closeout Report, for policies and procedures pertaining to reporting program income during contract closeout.