; (B) include requirements for procurement policies and procedures for subgrantees, based on full and open competition; (C) specify methods of procurement and their applicability, but not allow for cost-plus-a-percentage-of cost or percentage-of-construction-cost methods of procurement; (D) include standards of conduct governing employees engaged in the award or administration of contracts; and (E) ensure that all purchase orders and contracts include any clauses required by statute or implementing regulation. (3) Noncompliance In the case of a grantee for which the Secretary finds pursuant to paragraph (1)(A) that the procurement processes and procedures of the grantee do not comply with paragraph (2), the Secretary shall— (A) provide the grantee with specific written notice of the elements of noncompliance and the changes necessary to those processes and procedures to provide for compliance; (B) provide the grantee a reasonable period of time to come into compliance