500.003 Contractor Use of Equipment and Supplies Contractor Assurance

1.0 Purpose

The Texas Department of State Health Services (DSHS), TB/HIV/STD Section (Section), requires all contractors (submitting organizations) to sign this assurance that the contractor will use all equipment and supplies purchased with DSHS funds under the contract for authorized purposes only and that the contractor will not use equipment and supplies for any unauthorized purpose. The assurance must be signed before DSHS executes a base contract or an attachment to the contract where the Scope of Work is related to HIV or STD activities.
 

2.0 Authority

This policy is governed by The Uniform Grant and Contract Management Act, Chapter II, "Grants and Cooperative Agreements with State and Local Governments," Text of the Common Rule of OMB Circular A-102 with State Annotations, Subpart C--Post-Award Requirements, Changes, Property, and Subawards; DSHS Executive Order XO-1002, "Use of State Property, Equipment, Supplies, Services, and Time;" and all applicable state and federal laws, rules, and regulations relating to the use of equipment and supplies.
 

3.0 Definitions

Equipment - tangible nonexpendable property with a useful life of more than one year.

Supplies - all tangible property other than "equipment."
 

4.0 Authorized Use

Each contractor will use equipment and supplies for the purposes described in the contract attachment's Scope of Work. The contractor will use the equipment and supplies in the program or project for which they were acquired. The contractor may also make equipment available for use on other projects or programs currently supported by DSHS if the use does not interfere with the work on the project or program for which it was acquired.
 

5.0 Unauthorized Use

Contractors are prohibited from using equipment and supplies for purposes not supported in the contract attachment's Scope of Work.
 

6.0 Assurances

DSHS requires all agencies contracting with the Bureau to provide assurance of compliance with this policy. The form must be signed and on file with DSHS before DSHS executes any base contract or contract attachment where the Scope of Work is related to HIV or STD activities. By signing this assurance, the contractor certifies that the contractor will comply with this policy and will not misuse equipment or supplies.

The contractor agrees that it will require that the language of this assurance be included in any subawards or subcontracts and that all subrecipients shall certify accordingly. The contractor acknowledges its responsibility for enforcing this policy with its subrecipients.
 

7.0 Penalty

Violation of this policy may lead to sanctions including removal of equipment and supplies, withholding of funds, demand for reimbursement, denial of future applications for grants or renewals, and termination of the contract attachment.
 

8.0 Additional Resources

9.0 Revision History