7 AAC 78.180. Subcontracts

(a) Subject to the requirements of 7 AAC 78.270, a grantee may enter into a subcontract for the performance of an activity required by the grant project only if the grantee

(1) remains administratively and financially responsible for the activity and is responsible for the performance of the subcontractor;

(2) ensures that the subcontractor's records are protected, preserved, and retained as required by this chapter;

(3) demonstrates that the method of procurement to be used to identify the subcontractor will be reasonably competitive; and

(4) obtains department approval before entering into a subcontract with a value of $5,000 or more.

(b) The grantee shall ensure that a subcontract authorized under this section requires the subcontractor to provide the department, the grantee, or a representative of the department or grantee with reasonable access to the subcontractor's books, documents, papers, and records if the department or the grantee determines that access to this information is necessary. The subcontract must state that the department may, at any time, obtain and retain the originals of any records generated as a result of the grant project to which the subcontract applies.

History: Eff. 4/11/81, Register 78; am 7/21/2002, Register 163; am 6/24/2004, Register 170

Authority: AS 18.05.040

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