Administrative and Audit Requirements and Cost Principles for Assistance Programs

This final rule is in response to the ``Omnibus Consolidated Rescissions and Appropriations Act of 1996,'' and the ``Energy and Water Development Appropriations Act, 1996.'' Section 307(a) of Public Law 104-134 required that no funds made available in the Act may be expended by an entity unless the entity agrees that in expending the funds they will comply with sections 2 through 4 of the Act of March 3, 1933 (41 U.S.C. 10a-10c; popularly known as the ``Buy American Act''). As it did for awards governed by this provision made since FY 1993, the Department continues to interpret this requirement to apply to assistance programs. Section 307(b)(1) of Public Law 104-134 again states that it is the sense of Congress that all equipment and products purchased with funds made available in the Act should be American-made. Likewise, the Department is again taking the position that Congressional intent is different for awards made by the Bureau of Reclamation. As such, only the provisions in the regulation addressing the sense of Congress (Sec. 12.700 and the notice requirements (Sec. 12.710) will apply to awards made by the Bureau of Reclamation using appropriated funds for FY 1996.