Section 1784.36 - Procurement by applicants eligible under this part(a) For applicants eligible under § 1784.8(a)(2) and (3) , contracting and procurement activities will follow DEC or ANTHC policies, procedures and methods which are based on and shall follow Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ( 2 CFR part 200 ). In specifying materials, DEC and ANTHC will consider all materials normally suitable for the project based on sound engineering practices and project requirements.(b) Contracts for procurement must contain applicable contract provisions listed at Appendix II to 2 CFR part 200.(c) For grants proposed to be administered directly by applicants eligible under § 1784.8(a)(1) , the requirements outlined in 7 CFR part 1780, subpart C will be met by those eligible applicants with the exception of the following requirements: (1) Preliminary engineering reports and Environmental Reports (§ 1780.55 ). Refer to the requirements of this subpart and subpart C § 1784.22(n) .(2) Metering devices in § 1780.57(m) .(3) Utility Purchase Contracts in § 1780.62 .(4) Sewage treatment and bulk water sales contracts in § 1780.63 .