Section 209

209.01.  Upon the award of a grant by the Authority from any project fund, the SBA staff will issue the LEA a corresponding grant contract, which stipulates that as a requirement of the receipt of SBA funds, the LEA shall follow all applicable SBA policies, procedures, and standards.  Upon signature and acceptance, the LEA shall be referred to as the Grantee and the SBA shall be known as the Grantor.

209.02.  The SBA Grant Contract mandates that the LEA shall contract with all required parties to facilitate the design and construction of the project per the contract’s project description requirements.

209.03.  By signing the agreement, the LEA affirms a clear and free deed is held by the grantee for an approved site on which the project will be constructed. The SBA reserves the right to request proof of property ownership at any time.

209.04.  Grant funds may only be requisitioned by a LEA after the Contract is signed by both parties and prior to the contract’s expiration date.  If the LEA believes the projected contract completion date will exceed the agreed upon expiration date, the LEA must make a request to the Authority for a time extension of 60-90 days prior to the contract expiration date. Requisitions shall not be paid by the SBA for work completed outside of the contract effective dates.

209.05.  By signing the Grant Contract, the LEA agrees to incorporate all SBA required supplementary provisions and applicable forms into all project Contract and Construction Documents.  

    209.051.  For instances in which Federal funds are expended, the LEA is required to use the most stringent standards and rules.

209.06.  The LEA shall not incorporate additional Supplemental Instructions to Bidders or Supplemental General Conditions of the Contract for Construction that are more stringent and/or require additional tasks or work from the Contractor than those already required, unless specifically approved by the Authority.  

209.07.  The LEA and its design professional should work to ensure that project costs do not exceed the total funds available.  However, should the project costs exceed the total funds available, the LEA must, to the SBA’s satisfaction:  reduce the scope of the project, value engineer the facility, or commit additional local funds prior to proceeding to the next project phase.