It is the policy of the Institute to encourage the purchase
of goods and services required for the Grant Award from suppliers
in the State to the extent reasonably possible. A Grant Recipient
shall undertake good faith efforts to purchase from suppliers in the
State at least fifty percent (50%) of the goods and services purchased
with Grant Award funds.
(1) A Grant Recipient must use good faith efforts to
purchase goods and services from suppliers in the State when available
at a price and time comparable to products and materials purchased
outside of the State.
(2) A Grant Recipient that expends more than forty
percent (40%) of the Grant Award funds budgeted for a Project Year
on goods and services purchased outside of the State must notify the
Institute in writing and provide an explanation of the good faith
efforts undertaken to purchase the goods or services from suppliers
in the State, including a statement that products and materials were
not available in the State at a comparable price and time. Such notification
and explanation may be accomplished by completing the Historically
Underutilized Business and Texas Supplier form submitted as part of
the annual Grant Progress Report.
(3) The Institute may deny reimbursement or require
repayment of Grant Award funds already expended if the Grant Recipient
fails to provide a statement as required by paragraph (2) of this
section with a reasonable explanation of the good faith efforts undertaken
to purchase the goods or services from suppliers in the State of Texas.
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