# NASA Grants and Cooperative Agreements

> Briefs, arguments, decisions, and more.

URL: https://www.frixlaw.com/law-library/documents/fr%3A99-23031

## Record

- **Collection:** Federal Register
- **Document type:** Proposed Rule
- **Published:** September 16, 1999
- **Citation:** 64 FR 50334

## Text

SUMMARY: This proposed rule revises NASA's grant and cooperative
agreement regulations in order to clarify and amplify administrative
requirements. Revisions have been made to reduce administrative
requirements on grant and cooperative agreement recipients and ensure
that uniform policies are followed by NASA centers.

DATES: Comments should be submitted on or before November 15, 1999.

ADDRESSES: Interested parties should submit written comments to Jeff
Lupis, NASA Headquarters, Office of Procurement, Analysis Division
(Code HC), Washington, DC 20546. Comments may also be submitted by e-
mail to [email protected].

FOR FURTHER INFORMATION CONTACT: Jeff Lupis, NASA Headquarters, Code
HC, Washington, DC 20546, telephone: (202) 358-0462; e-mail:
[email protected].

SUPPLEMENTARY INFORMATION:

A. Background

A comprehensive revision is being made to NASA grant and
cooperative agreement policy codified at 14 CFR 1260, Grants and
Cooperative Agreements, and 14 CFR 1274, Grants and Cooperative
Agreements with Commercial Firms. The revision has been initiated by
NASA as part of re-engineering the process for awarding and
administering grants and cooperative agreements. Changes are chiefly
aimed at reducing paperwork requirements or clarifying pre-established
policies. Three new policies being adopted by NASA relating to titling
of equipment, awarding grants to commercial organizations, and vendor
registration in the DoD Central Contractor Registration (CCR) System
are policies already in use by other agencies. A synopsis of some of
the more significant changes being adopted under this revision are:
incorporation of a standard grant and cooperative agreement cover page;
a new grant numbering system; expanded guidance on appropriate use of
grant awards; clarification on participation by foreign organizations;
reduction in the lead time goal for awarding grants; streamlined grant
award documentation; clarification of grant administration
responsibilities; a new policy allowing the award of grants to
commercial firms; a new policy that (except for exceptional
circumstances) vests title to acquired equipment with the grant
recipient as ``exempt'' property, and a new policy requiring CCR
registration prior to award of a grant or cooperative agreement.

B. Regulatory Flexibility Act

An initial Regulatory Flexibility Analysis has not been prepared
because the proposed changes are not expected to have a significant
economic impact on a substantial number of small entities within the
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601 et seq. The
revisions made under this proposed rule are largely limited to
administrative changes to the grant and cooperative agreement award and
administration process, other changes (e.g. vesting of title to
property to grant recipients) will not have a significant economic
impact. Also, an estimated two thirds of NASA vendors are already
registered in the CCR System.

C. Paperwork Reduction Act

This proposed rule includes a new requirement for collection of
information from grant and cooperative agreement recipients for CCR
registration. This collection of information requires NASA to obtain
approval from the Office of Management and Budget under 44 U.S.C. 3501,
et seq. The required approval will be requested.

List of Subjects in 14 CFR Parts 1260 and 1274

Grant Programs--Science and Technology.
Tom Luedtke,
Associate Administrator for Procurement.
Accordingly, 14 CFR Chapter V is proposed to be amended as follows:
1. Part 1260 is revised to read as follows:

PART 1260--GRANTS AND COOPERATIVE AGREEMENTS

Subpart A--General

Sec.
1260.1 Authority.
1260.2 Purpose.
1260.3 Definitions.
1260.4 Applicability.
1260.5 Amendment.
1260.6 Publication.
1260.7 Deviations.

Pre-Award Requirements

1260.10 Proposals.
1260.11 Evaluation and selection.
1260.12 Choice of award instrument.
1260.13 Award procedures.
1260.14 Limitations.
1260.15 Format and numbering.
1260.16 Distribution.

Provisions

1260.20 Provisions.
1260.21 Compliance with OMB Circular A-110.
1260.22 Technical publications and reports.
1260.23 Extensions.
1260.24 Termination and enforcement.
1260.25 Change in principal investigator or scope.
1260.26 Financial management.
1260.27 Equipment and other property.
1260.28 Patent rights.
1260.29 Invention reporting and rights.
1260.30 Rights in data.
1260.31 National security.
1260.32 Nondiscrimination.
1260.33 Subcontracts.
1260.34 Clean air and water.
1260.35 Investigative requirements.
1260.36 Travel and transportation.
1260.37 Safety.
1260.38 Drug-Free Workplace.

Special Conditions

1260.50 Special conditions.
1260.51 Cooperative agreement special condition.
1260.52 Multiple year grant or cooperative agreement.
1260.53 Incremental funding.
1260.54 Cost sharing.
1260.55 Reports substitution.
1260.56 Withholding.
1260.57 New technology
1260.58 Designation of new technology representative and patent
representative.
1260.59 Choice of law.
1260.60 Public information.
1260.61 Allocation of risk/liability.
1260.62 Payment--to foreign organizations.
1260.63 Customs clearance and visas.
1260.64 Taxes.
1260.65 Exchange of technical data and goods.
1260.66 Listing of reportable equipment and other property.
1260.67 Equipment and other property under grants with commercial
firms.
1260.68 Invoices and payments under grants with commercial firms.
1260.69 Electronic funds transfer payment methods.

Post-Award Requirements

1260.70 Delegation of administration.
1260.71 Supplements and renewals.
1260.72 Adherence to original budget estimates.
1260.73 Transfers, novations, and change of name agreements.
1260.74 Property use, disposition, and vesting of title.
1260.75 Summary of report requirements.
1260.76 Termination and enforcement.
1260.77 Closeout procedures.

[[Page 50335]]

Appendix to Subpart A to Part 1260--Listing of Exhibits

Subpart B--Uniform Administrative Requirements for Grants and
Cooperative Agreements With Institutions of Higher Education,
Hospitals, and Other Non-Profit Organizations

General

1260.101 Purpose.
1260.102 Definitions.
1260.103 Effect on other issuances.
1260.104 Deviations.
1260.105 Subawards.

Pre-Award Requirements

1260.110 Purpose.
1260.111 Pre-award policies.
1260.112 Forms for applying for Federal assistance.
1260.113 Debarment and suspension.
1260.114 Special award conditions.
1260.115 Metric system of measurement.
1260.116 Resource Conservation and Recovery Act (RCRA).
1260.117 Certifications and representations.

Post-Award Requirements

Financial and Program Management

1260.120 Purpose of financial and program management.
1260.121 Standards for financial management systems.
1260.122 Payment.
1260.123 Cost sharing or matching.
1260.124 Program income.
1260.125 Revision of budget and program plans.
1260.126 Non-Federal audits.
1260.127 Allowable costs.
1260.128 Period of availability of funds.

Property Standards

1260.130 Purpose of property standards.
1260.131 Insurance coverage.
1260.132 Real property.
1260.133 Federally-owned and exempt property.
1260.134 Equipment.
1260.135 Supplies and other expendable property.
1260.136 Intangible property.
1260.137 Property trust relationship.

Procurement Standards

1260.140 Purpose of procurement standards.
1260.141 Recipient responsibilities.
1260.142 Codes of conduct.
1260.143 Competition.
1260.144 Procurement procedures.
1260.145 Cost and price analysis.
1260.146 Procurement records.
1260.147 Contract administration.
1260.148 Contract provisions.

Reports and Records

1260.150 Purpose of reports and records.
1260.151 Monitoring and reporting program performance.
1260.152 Financial reporting.
1260.153 Retention and access requirements for records.

Termination and Enforcement

1260.160 Purpose of termination and enforcement.
1260.161 Termination.
1260.162 Enforcement.

After-the-Award Requirements

1260.170 Purpose.
1260.171 Closeout procedures.
1260.172 Subsequent adjustments and continuing responsibilities.
1260.173 Collections of amounts due.

Appendix A to Subpart B of Part 1260--Contract Provisions

Authority: 42 U.S.C. 2473(c)(1), Pub. L. 97-258, 96 Stat. 1003
(31 U.S.C. 6301 et seq.), and OMB Circular A-110.

Subpart A--General

Sec. 1260.1 Authority.

(a) The National Aeronautics and Space Administration (NASA) awards
grants and cooperative agreements under the authority of 42 U.S.C.
2473(c)(5), the National Aeronautics and Space Act. This part 1260 is
issued under the authority of 42 U.S.C. 2473(c)(1), Pub. L. 97-258, 96
Stat. 1003 (31 U.S.C. 6301 et seq.), and OMB Circular A-110.
(b) The Office of Management and Budget (OMB) approved information
collection under the Paperwork Reduction Act and assigned OMB control
numbers 2700-0047, Property Management and Control; 2700-0048, Patents;
and 2700-0049, Financial Management and Control.

Sec. 1260.2 Purpose.

(a) This subpart A of the NASA Grant and Cooperative Agreement
Handbook (also subpart A of 14 CFR part 1260), provides supplemental
NASA policies that clarify and amplify government-wide regulations for
awarding and administering grants and cooperative agreements with
educational and non-profit organizations. The government-wide
regulations that this subpart supplements are set forth in OMB Circular
A-110 ``Uniform Administrative Requirements for Grants and Agreements
With Institutions of Higher Education, Hospitals, and Other Non-Profit
Organizations.'' (NASA has adopted OMB Circular A-110 as subpart B of
this part 1260.)
(b) As required by the Office of Management and Budget (OMB), NASA
has also adopted the standards set forth in OMB Circular No. A-133,
Audits of States, Local Governments, and Non-Profit Organizations.

Sec. 1260.3 Definitions.

(a) The following definitions are a supplement to the subpart B
definitions set forth at Sec. 1260.102. Additional definitions
applicable to specific categories of grants and cooperative agreements
are set forth at 14 CFR 1273.3 and 14 CFR 1274.102.
(b) Throughout subpart A to this part 1260, the term ``grant''
includes ``cooperative agreement'' unless otherwise indicated.
Administrative grant officer means a Federal employee delegated
responsibility for grant administration; e.g., a NASA grant officer who
has retained grant administration responsibilities, or an Office of
Naval Research (ONR) grant officer delegated grant administration by a
NASA grant officer.
Amendment means any document used to effect modifications to grants
and cooperative agreements. Amendments may be issued unilaterally at
the discretion of the grant officer.
Commercial firm means any corporation, trust or other organization
which is organized primarily for profit.
Effective date means the date work can begin, which could be
earlier or later than the date of signature on a basic award or
modification. Expenditures made prior to award of a grant are incurred
at the recipient's risk.
Expiration date means the date of completion specified in the
grant, after which expenditures may not be charged against the grant
except to satisfy obligations to pay allowable costs committed on or
before that date.
Historically Black Colleges and Universities means institutions
determined by the Secretary of Education to meet the requirements of 34
CFR 608.2 and listed therein.
Minority educational institution means an institution determined by
the Secretary of Education to meet the requirements of 34 CFR 637.4.
Non-profit organization means an organization that qualifies for
the exemption from taxation under section 501 of the Internal Revenue
Code of 1954, as amended, 26 U.S.C. 501.
Progress report means a concise statement of work accomplished
during the report period (see Secs. 1260.22 and 1260.75(b)(3)).
Recipient acquired equipment means equipment purchased or
fabricated with grant funds by a recipient for the performance of work
under its grant.
Small business concern means a concern, including its affiliates,
which is independently owned and operated, not dominant in the field of
operation in which it is bidding, and qualifies as a small business
under the criteria and size standards in 13 CFR part 121.
Small disadvantaged business concern means a small business concern
owned and controlled by individuals

[[Page 50336]]

who are both socially and economically disadvantaged and meets the
criteria set forth at 13 CFR part 24.
Summary of research means a document summarizing the results of the
entire project, which includes bibliographies, abstracts, and lists of
other media in which the research was discussed.
Women-owned small business concern means a small business concern
that is at least 51 percent owned by women who are U.S. citizens and
who also control and operate the business (15 U.S.C. 637(d)).

Sec. 1260.4 Applicability.

(a) Subparts A and B of this part 1260 establish policies and
procedures for grants and cooperative agreements awarded by NASA to
institutions of higher education, hospitals, and other non-profit
organizations.
(b) Subject to the special considerations in this paragraph,
subparts A and B of this part 1260 are also applicable to NASA grants
and cooperative agreements awarded to commercial firms which do not
involve cost sharing. For grants and cooperative agreements with
commercial organizations which involve resource contributions by the
Recipient, see 14 CFR part 1274.
(1) The allowability of costs incurred by commercial firms is
determined in accordance with the provisions of the Federal Acquisition
Regulation (FAR) at 48 CFR part 31.
(2) NASA does not allow for payment of profit or fee to commercial
firms under grant awards.
(3) When applying the policies set forth under Sec. 1260.74, the
grant officer shall vest title to any equipment purchased under the
grant with the Government. The special condition at Sec. 1260.67,
Equipment and Other Property Under Grants With Commercial Firms, shall
be incorporated into all grants with commercial firms in place of the
provision at Sec. 1260.27, Equipment and Other Property.
(4) Due to differing NASA patent policies applicable to large
businesses, special conditions at Sec. 1260.57, New Technology, and
Sec. 1260.58, Designation of New Technology Representative and Patent
Representative, shall be incorporated into all grants with commercial
firms other than those with small businesses, in place of the provision
at Sec. 1260.29, Patent Rights.
(5) Payments under grants with commercial firms will be made based
on incurred costs. NASA Form 272 is not required. Commercial firms will
be required to submit invoices on a no more than quarterly basis. The
special condition at Sec. 1260.68, Invoices and Payments Under Grants
With Commercial Firms, shall be incorporated into all grants with
commercial firms in place of the provision at Sec. 1260.26, Financial
Management.
(6) Payments will be made to commercial firms via electronic funds
transfer. The special condition at Sec. 1260.69, Electronic Funds
Transfer Payment Method, shall be incorporated into all grants with
commercial firms.
(7) Delegation of grant administration functions consistent with
the policies set forth at Sec. 1260.70 (i.e., property administration
and closeout are to be delegated) will be made to the cognizant field
office of the Defense Contract Management Command instead of to the
Office of Naval Research. Delegations will be made using NASA Form
1674, Letter of Delegation, for the Administration of Grants and
Cooperative Agreements (Exhibit F to subpart A of this part 1260,
available at the address given in Exhibit F). Cognizant offices for
performing administration under individual grants are set forth in the
``DoD Directory of Contract Administration Services Components,'' which
is available on the internet at: http://www.dcmc.hq.dla.mil/casbook/
casbook.htm.

Sec. 1260.5 Amendment.

This part 1260 will be amended by publication of changes in the
Federal Register. Changes will be issued as Grant Notices and
incorporated into the official version of the handbook located at the
internet web site.

Sec. 1260.6 Publication.

The official site for accessing the NASA Grant and Cooperative
Agreement Handbook, including current Grant Notices, is on the internet
at: http://ec.msfc.nasa.gov/hq/grcover.htm

Sec. 1260.7 Deviations.

(a) A deviation is required for any of the following:
(1) When a prescribed provision (but not a special condition) set
forth verbatim in this part 1260 is modified or omitted.
(2) When a provision is set forth in this part 1260, but not for
use verbatim, and the Center substitutes a provision which is
inconsistent with the intent, principle, and substance of the
provision.
(3) When a form prescribed by this part 1260 is altered or another
form is used in its place.
(4) When limitations, imposed by this handbook upon the use of a
grant provision, form, procedure, or any other grant action, are
changed.
(5) When a form is created for recipient use that constitutes a
``Collection of Information'' within the meaning of the Paperwork
Reduction Act (44 U.S.C. 35) and its implementation in 5 CFR part 1320.
(b) Requests for authority to deviate from this part 1260 shall be
submitted to the Office of Procurement, NASA Headquarters, Procurement
Operations Division (HS). Requests, signed by the procurement officer,
shall contain:
(1) A full description of the deviation, the circumstances in which
it will be used, and identification of the requirement from which a
deviation is sought;
(2) The rationale for the request, pertinent background
information, and the intended effect of the deviation;
(3) The name of the recipient, identification of the grant
affected, and the dollar value;
(4) A statement as to whether the deviation has been re quested
previously, and, if so, details of that request; and
(5) A copy of legal counsel's concurrence or comments.
(c) Where it is necessary to obtain a deviation on OMB Circular A-
110 (subpart B of this part 1260), Code HS will process all necessary
documents in accordance with 1260.104.

Pre-Award Requirements

Sec. 1260.10 Proposals.

(a) Consistent with 31 U.S.C. 6301(3), NASA's policy is to use
competitive procedures to award grants whenever possible. A grant can
result from:
(1) A proposal submitted in response to a Broad Agency Announcement
(BAA) such as a NASA Research Announcement (NRA) or an Announcement of
Opportunity (AO), a Cooperative Agreement Notice (CAN), an Agencywide
program announcement such as the Graduate Student Research Program, or
other forms of announcements approved by the Associate Administrator
for Procurement (HS). NRA's are described in the NASA FAR Supplement
(NFS) 48 CFR 1835.016. AO's are described in 48 CFR part 1872.
(2) An Unsolicited Proposal for new and innovative ideas. Guidance
on the submission of unsolicited proposals is contained in the Federal
Acquisition Regulation (FAR) 48 CFR subpart 15.6 and (NFS) 48 CFR
subpart 1815.6. The synopsis requirement in FAR part 5, however, does
not apply to the grant process. Contact with NASA technical personnel
prior to proposal submission

[[Page 50337]]

is encouraged to determine if preparation of a proposal is warranted.
These discussions should be limited to understanding NASA research
needs and do not jeopardize the unsolicited status of any subsequently
submitted proposal.
(b) The proposal shall contain a detailed narrative description of
the work to be undertaken, including the objectives of the project and
the applicant's plan for carrying it out.
(1) All proposals shall include budget data as prescribed in the
Budget Summary (Exhibit A to subpart A of this part 1260, available at
the address given in Exhibit A). Narrative detail must support the
proposed budget as required in Exhibit A.
(i) The recipient institution is responsible for ensuring that
costs charged are allowable, allocable, and reasonable under the
applicable cost principles governed by OMB Circular No. A-21 or A-122.
For other details see 1260.127.
(ii) Subject to applicable cost principles, facilities and
administrative cost rates are negotiated between recipients and the
cognizant agencies assigned under OMB Circular No. A-21. NASA is
required to apply the applicable negotiated rate for all grants awarded
to the recipient.
(iii) NASA may accept cost sharing when voluntarily offered. For
further guidance see 1260.123. For grants and cooperative agreements
with commercial organizations that involve costs sharing, see 14 CFR
part 1274. The amount of cost sharing will not be a factor in
determining whether to select a proposal for award. However, recipients
may be requested to secure nonfederal matching funds equal to the
program portion of training and education grants. In accordance with
NASA policy to foster continuity of research, multiple year grant
proposals are encouraged, where appropriate, for a period generally up
to three years. Proposals for multiple year grants shall describe the
entire research project and include a complete budget for year one and
separate estimates for each subsequent year.
(2) A Taxpayer Identification Number (TIN) must be included with
the address listed on the proposal. If an award is made, advance
payments cannot be made without a TIN (31 U.S.C. 7702(c)(1)).
(3) Prior to implementation of the Integrated Financial Management
(IFM) System at each center, all grant and cooperative agreement
recipients are required to register in the Department of Defense (DoD)
Central Contractor Registeration (CCR) database. Registration is
required in order to obtain a Commercial and Government Entity (CAGE)
code, which will be used as a grant and cooperative agreement
identification number for the new system. The grant officer shall
verify that the prospective awardee is registered in the CCR database
using the DUNS number or, if applicable, the DUNS+4 number, via the
Internet at http://ccr.edi.disa.mil/ccr/cgi-bin/status.pl or by calling
toll free: 800-841-4431, commercial: 696-961-5757.
(c)(1) Grant officers are required to ensure that all necessary
certifications, disclosures, and assurances have been obtained prior to
awarding a grant or cooperative agreement.
(2) Each new proposal shall include a certification for debarment
and suspension under the requirements of 14 CFR 1265.510 and 1260.117.
(3) Each new proposal for an award exceeding $100,000 shall include
a certification, and a disclosure form (SF LLL) if required, on
Lobbying under the requirements of 14 CFR 1271.110 and 1260.117.
(4) Unless a copy is on file at the NASA center, recipients must
furnish an assurance on NASA Form (NF) 1206 on compliance with Civil
Rights statutes specified in 14 CFR parts 1250 through 1253.

Sec. 1260.11 Evaluation and selection.

(a) Technical evaluation of proposals will be conducted by the
cognizant NASA technical office and may be based on peer reviews.
(b) Under NRA's, AO's, other BAA's, and CAN's, the selecting
official will furnish documentation requested by the grant officer,
(including a copy of the NRA, selection statement, and peer review
evaluation if requested), to confirm that the award is being made as a
result of a selection under a NRA, AO, other BAA, or CAN. The technical
office will forward to the grant office a completed award package,
including a funded procurement request, technical evaluation of the
proposed budget, and other support documentation, at least 29 days
prior to the requested award date, or before the expiration of the
funded period in the case of the renewal of an existing effort.
(c) If a proposal is not selected, the proposer will be notified by
the selecting official in accordance with the procedures set forth in
the NRA, AO, CAN, or BAA.
(d) Unsolicited proposals will be evaluated in accordance with the
following procedure:
(1) Evaluations of unsolicited proposals to be awarded as grants or
cooperative agreements will be conducted using the same criteria used
for reviewing unsolicited proposals to be awarded as contracts, as set
forth at FAR subpart 15.6 and (NFS) 48 CFR subpart 1815.6. Normally,
unsolicited proposals are accepted to perform discrete projects with
defined anticipated outcomes and completion dates. An unsolicited
proposal that results in a grant or cooperative agreement with no
defined end date, and which requires subsequent submission of follow-on
unsolicited proposals to ensure continuation of the effort, should be
closely reviewed to ensure that it meets the FAR definition for a valid
unsolicited proposal.
(2) An unsolicited proposal recommended for acceptance shall be
supported by a Justification for Acceptance of an Unsolicited Proposal
(JAUP) prepared by the cognizant technical office. The JAUP shall be
submitted for the approval of the grant officer after review and
concurrence at a level above the technical officer. However, this
review and concurrence is not required for technical officers at a
division chief or higher level. The grant officer's signature on the
award document will indicate approval of the JAUP.
(3) NASA will notify in writing organizations that submit
unsolicited proposals that will not be funded. Method of notification
is at the discretion of the grant officer. Proposals will be returned
only when requested. Agency procedures for handling unsolicited
proposals are specified at (NFS) 48 CFR 1815.606.
(e) For awards made non-competitively, written justifications for
equipment or travel will be submitted by the technical office for grant
officer approval when more than half of the proposed budget is for
equipment or travel and associated indirect cost. The justification
shall describe the extent to which the equipment or travel is
necessary. The grant officer's signature on the award will indicate
approval of the justification.
(f) The evaluation of the proposal budget will conform to the
following procedure:
(1) The technical officer will review the proposer's estimated cost
for conformance to program requirements and fund availability. The
results of this review shall be recorded in Column B of the proposed
Budget Summary Form (Exhibit A to subpart A of this part 1260,
available at the address given in Exhibit A). New budgets are not
required when the program office recommended funding is within twenty
percent (20 percent) of the proposed amount, provided specific proposed

[[Page 50338]]

objectives have not been added or deleted. However, when funding
decreases in equipment and/or subcontracts are involved, the cognizant
program office is required to identify the cost element(s) affected by
the change in funding level.
(2) The grant officer will review the budget, and any changes made
by the technical officer, to identify any item which may be unallowable
under the cost principles, or which appears unreasonable or
unnecessary. The grant officer will complete Column C of the Budget
Summary after discussing significant changes with the recipient and/or
technical office. Requests for details from the recipient should be
limited.
(3) The grant officer will address requests for direct charge of
equipment in the negotiation summary, and state whether the purchase is
approved as a direct cost.
(g) 42 U.S.C. 2459d prohibits NASA from funding any grant for
longer than one year if the effect is to provide a guaranteed customer
base for new commercial space hardware or services. The only exception
would be if an Appropriations Act specifies the new commercial space
hardware or services to be used.
(h) NASA reserves the right to either fully fund or incrementally
fund grants based on fiscal law and program considerations. Grants with
anticipated annual funding exceeding $50,000 may be funded for less
than the amount stated in the proposal.
(1) The grant officer will determine the number of incremental
funding actions that will be allowed.
(2) The special condition at Sec. 1260.53, Incremental Funding,
will be included in the grant.
(i) Proposals for efforts that involve printing, binding, and
duplicating in excess of 25,000 pages are subject to the Government
Printing and Binding Regulations, No. 26, February 1990, S. Pub. 101-9,
U.S. Government Printing Office, Washington, DC 20402, published by the
Congressional Joint Committee on Printing. The technical office will
refer such proposals to the Installation Central Printing Management
Officer (ICPMO). The grant officer will be advised in writing of the
results of the ICPMO review.
(j) The provision at Sec. 1260.30, Rights in Data, is adequate only
for grants for basic or applied research where the principal purpose
(or only expected NASA involvement) is the publication or dissemination
of the results, such as in journals or NASA publications (see
Sec. 1260.22). Rights in data for other types of grants and cooperative
agreements should be developed with Center Patent Counsel on a case-by-
case basis.
(k) By acceptance of a grant (containing the provision at
Sec. 1260.34) the recipient agrees that it is in compliance with the
Clean Air and Federal Water Pollution Control Acts. The Administrator
may approve exemptions from this prohibition under certain
circumstances under Executive Order 11738. Requests for exemptions or
renewals thereof shall be made to the Office of Procurement, NASA
Headquarters, Program Operations Division (Code HS), Washington, DC
20546.
(l) Requests for acquisition of property may be made by a recipient
either as part of the original budget proposal or subsequent to award.
Comprehensive guidance on evaluating requests for acquisition of
property, vesting of title, and administration issues, is set forth at
Sec. 1260.74.

Sec. 1260.12 Choice of award instrument.

(a) This section and Sec. 1260.111 provide guidance on the
appropriate choice of award instruments consistent with 31 U.S.C. 6301
to 6308. Throughout Sec. 1260.12, the term ``grant'' does not include
``cooperative agreements.''
(b)(1) A procurement contract is a mutually binding legal
relationship obligating the seller to furnish supplies or services
(including construction), and the buyer pays for them.
(2) The principal purpose of a procurement contract is to acquire,
for NASA's direct use or benefit, a well-defined, specific effort
clearly required for the accomplishment of a scheduled NASA mission or
project.
(3) If it is determined that a procurement contract is the
appropriate type of funding instrument to meet NASA's purposes, the
procurement shall be conducted under the FAR and the NFS (48 CFR
chapter 18).
(4) If an action is to be awarded for a dollar amount below the
simplified acquisition threshold, the action may be completed by a
contracting officer as a purchase order. The purchase order must be
properly modified to include necessary language pertaining to data
rights, key personnel requirements, and any other necessary
requirements as determined by the contracting officer.
(c) A grant shall be used as the legal instrument to reflect a
relationship between NASA and a recipient whenever the principal
purpose is the transfer of anything of value to the recipient to
accomplish a public purpose of support or stimulation authorized by
Federal statute. Grants are distinguished from cooperative agreements
in that substantial involvement is not expected between NASA and the
recipient when carrying out the activity. Grants are distinguished from
contracts in that grants provide financial assistance to the recipient
to conduct a fairly autonomous program; contracts entail acquisition.
Various types of NASA grants contain different provisions and
conditions as described in Secs. 1260.20 and 1260.50. The major types
of grants and cooperative agreements are defined as follows. Grants and
cooperative agreements to carry out other authorized purposes should be
used to the extent appropriate, and must be in compliance with OMB
Circular A-110.
(1) Research grant. A research grant shall be used to accomplish a
NASA objective through stimulating or supporting the acquisition of
knowledge or understanding of the subject or phenomena under study, or
attempting to determine and exploit the potential of scientific
discoveries or improvements in technology, materials, processes,
methods, devices, or techniques and advance the state of the art. The
recipient will bear prime responsibility for the conduct of research,
and exercises judgment and original thought toward attaining the
scientific goals within broad parameters of the research areas proposed
and the resources provided;
(2) Education grant. An education grant is an agreement that
provides funds to an educational institution or other nonprofit
organizations within one or more of the following areas:
(i) Capturing student interest and/or improving student performance
in science, mathematics, technology, or related fields;
(ii) Enhancing the skill, knowledge, or ability of teachers or
faculty members in science, mathematics, or technology;
(iii) Supporting national educational reform movements;
(iv) Conducting pilot programs or research to increase
participation and/or to enhance performance in science, mathematics, or
technology education at all levels; and
(v) Developing instructional materials (e.g., teacher guides,
printed publications, computer software, and videotapes) or networked
information services for education;
(3) Training grant. A training grant is an agreement that provides
funds primarily for scholarships, fellowships, or stipends to students,
teachers, and/or faculty.
(i) NASA training grants are awarded to colleges, universities, or
other non-profit organizations; not to individual students, teachers,
or faculty members.

[[Page 50339]]

It is the responsibility of the institution receiving the grant to
approve the faculty, teachers, and/or students who will participate in
the specific program, in cooperation with NASA. If a student, teacher,
or faculty member ceases to participate in the program for any reason,
the institution, with prior NASA approval, may appoint another student,
teacher, or faculty member to complete the remaining portion of the
grant period. Replacement students, teachers, and/or faculty electing
to apply for the following program year are not automatically entitled
to an award and are subject to the evaluation/selection procedures
administered to new applicants. Any participant receiving support under
a NASA training grant may not concurrently hold another Federal
fellowship or traineeship.
(ii) No applicant shall be denied consideration or appointment on
the grounds of race, creed, color, national origin, age, sex, or
disability.
(iii) Students and faculty receiving direct support under a NASA
training grant must be U.S. citizens, except for those supported by the
NASA Earth System Science Fellowship Program, the Graduate Student
Fellowship in Global Change Research Program, and the GLOBE Program.
(iv) Duration of the award is program specific. Refer to program
policies and procedures for details. Renewal is contingent upon a
successful performance evaluation as prescribed by the program,
concurrence by the NASA technical officer, and the availability of
funds.
(v) No substantial involvement is expected between NASA and the
recipient. A student or faculty member receiving support under a NASA
training grant does not incur any formal obligation to the Government.
(vi) The use of training grant funds to acquire equipment, or to
acquire or construct facilities will not be permitted. Government
furnished equipment will not be provided.
(vii) An Administrative Report must be submitted under the
guidelines described by the specific program policies and procedures.
(4) Facilities grant. A facilities grant is used to provide for the
acquisition, construction, use, maintenance, and disposition of
facilities. Facilities, as used in this section, means property used
for production, maintenance, research, development, or testing. Prior
approval by the Associate Administrator of Procurement is required
before proceeding with a facilities grant. To obtain prior approval, a
package will be forwarded to the Director, Program Operations Division
(HS), during the planning phase of the grant, that includes pertinent
background information, details on Congressional Authorization, dollar
value, and name of the recipient. Other information, such as a copy of
the proposed facility grant award document, is not required. It is
unlikely an award will be approved unless specifically authorized by
Congress. A review by legal counsel to assure legal sufficiency is also
required.
(d) Cooperative agreement. A cooperative agreement shall be used as
the legal instrument reflecting a relationship between NASA and a
recipient whenever the principal purpose is the transfer of anything of
value to the recipient to accomplish a public purpose of support or
stimulation authorized by Federal statute, and substantial involvement
is anticipated between NASA and the recipient during performance of the
contemplated activity (31 U.S.C. 6305). Characteristics inherent in a
cooperative agreement include those that apply to a grant, plus the
following:
(1) Substantial NASA involvement in and contribution to the
technical aspects of the effort are necessary for its accomplishment.
This could involve an active NASA role in collaborative relations,
access to a NASA site or equipment, or sharing NASA facilities and
personnel. For example, a university investigator could work for a
substantial amount of time at a NASA Center, a NASA investigator could
work at a university, or when the collaboration is such that a jointly
authored report or education curriculum product is appropriate;
(2) The project, conducted as proposed, would not be possible
without extensive NASA-recipient technical collaboration;
(3) The nature of the collaboration shall be clearly defined and
specified in the special condition at Sec. 1260.51.
(e)(1) Grants and cooperative agreements with foreign
organizations. Grants and cooperative agreements with foreign
organizations provide for research to be performed in whole, or in
part, by a foreign organization, with funding being provided by NASA to
the foreign organization as reimbursement for the work performed.
(2) It is NASA policy that, in general, research with foreign
organizations will not be conducted through grants or cooperative
agreements, but instead will be accomplished on a no-exchange-of-funds
basis. In these cases, NASA enters into agreements undertaking projects
of international scientific collaboration. In rare instances, NASA may
enter into an international agreement under which funds will be
transferred to a foreign recipient.
(3) Grants and cooperative agreements to foreign organization are
made on an exceptional basis only. Awards require the prior approval of
the Headquarters Office of External Relations (Code I) and the
Headquarters Office of the General Counsel (Code G). Requests to award
foreign grants or cooperative agreements are to be coordinated through
the Office of Procurement, Program Operations Division (Code HS).
Requests for approval shall contain:
(i) The identity of the foreign entity, the country or countries
involved, and the purpose of the grant or cooperative agreement.
(ii) The Space Act Agreement(s) or underlying international
agreement involved, if any.
(iii) A description of the effort to be undertaken by the entity
described in paragraph (e)(3)(i) of this section, including their
dollar value.
(iv) The reason why the grant or cooperative agreement requires a
placement with a foreign organization.
(v) The reason why the work can not be accomplished on a no
exchange of funds basis.
(4) Grants and cooperative agreements to foreign organizations
require a review by the Office of General Counsel.
(5) The requirements of this section do not apply to the purchase
of supplies or services (excluding research) from non-U.S. sources by
U.S. grant or cooperative agreement recipients, when necessary to
support research efforts.
(f)(1) The decision whether to use a contract, grant or cooperative
agreement as an award instrument must be based on the principal purpose
of the relationship. When NASA, within its authority, enters into a
transaction where the principal purpose is to accomplish a public
purpose of support or stimulation authorized by Federal statute, a
grant or a cooperative agreement is the appropriate instrument.
Conversely, if the principal purpose of a transaction is to accomplish
a NASA requirement, i.e., to produce something for NASA's own use, a
procurement contract is the appropriate instrument. Two essential
questions must be asked to ensure that a grant or cooperative agreement
is the appropriate instrument. The first question is: Will NASA be
directly harmed in furthering a specific NASA mission requirement if
the effort is not accomplished? The answer to this question must be
``no.'' The second question is: Is the work being performed by the
recipient primarily for its own purposes, which NASA is merely
supporting with financial or other

[[Page 50340]]

assistance? The answer to this question must be ``yes.'' If these
criteria are met, then the effort is not a NASA requirement, and can
then be considered as to whether it supports or stimulates a public
purpose.
(2) In applying the principal purpose test, it must be determined
whether the Government is the direct beneficiary or user of the
activity. If NASA provides the specifications for the project; or is
having the project completed based on its own identified needs; or will
directly use the report or result of the project for a scheduled NASA
mission, then, in most cases, the principal purpose is to acquire
property or services for the direct benefit or use of NASA, and thus, a
contractual relationship exists. However, there may be cases where NASA
expects to derive some incidental use or benefit from funded
activities. In fact, any extramural expenditure that furthers the
Agency's goals or mission can be said to be of benefit or use to the
Government. But not every expenditure produces for the Government a
benefit or use that is direct; i.e., immediate, uninterrupted, or
specific. Where an expenditure will produce a benefit or use that is
only indirect in nature, a grant or cooperative agreement may be used.
(3) The status of the entity involved is not a primary factor in
determining the appropriate award instrument. For example, an entity
that operates on a non-profit basis may receive funding through a
contract, and is not limited to receiving grants or cooperative
agreements. Similarly, a profit-making firm may receive funding through
grants, cooperative agreements, or contracts.
(4) NASA offices may be mandated through their missions to support
specific scientific, educational, or training programs. The office may
be accountable to NASA management, the Administration, or Congress for
oversight and proper implementation of the program, may require direct
oversight, may be directly accountable for the results of the program
and that the work be successfully completed. Whenever the office
requesting the grant or cooperative agreement would be directly harmed
in performing its mission if an award was not made, a grant or
cooperative agreement is not appropriate. Specific examples of
situations requiring special scrutiny include--
(i) Education grants that for the administration of a program for
which the education office is directly responsible;
(ii) Research or education grants to establish and support
university laboratories on a non-competitive basis, with the resulting
work of direct benefit to NASA; or
(iii) Training grants that hire university students, on a non-
competitive basis, to perform work at a NASA Center in direct support
of NASA personnel, and perform work which is required in support of a
NASA mission.
(5) A grant may be used to provide funding to an association to
hold a conference (among its members and NASA officials) where the
benefits flow primarily to the association and its members, not to
NASA. The principal purpose will be to advance research or other
purposes of the association. Thus, NASA may not direct an association
in arranging the conference or in providing other services for NASA's
benefit. The conference should be run by the association, not by NASA.
Conferences sponsored or initiated by NASA primarily to meet a specific
NASA need or obtain information for the direct benefit of NASA must be
supported by means of a contract.

Sec. 1260.13 Award procedures.

(a) Award instruments are classified as follows:
(1) Annual grants are grants awarded for a short term (e.g., on an
annual basis).
(2) Multiple year grants support research projects that may span
several years.
NASA policy is to make maximum use of multiple year grants. A
Multiple Year Grant is generally selected for a period of three years
in keeping with NASA's policy calling for research to be peer reviewed
at least every three years. Grants with periods of performance in
excess of three years may be appropriate when the NASA technical office
determines at the inception of the grant that a period of performance
in excess of three years is necessary to complete a discrete research
effort.
(i) If the decision to provide multiple year funding to a research
proposal is made, the special condition at Sec. 1260.52, Multiple Year
Grant or Cooperative Agreement, will be included in the award.
(ii) Periods approved under the Multiple Year Grant or Cooperative
Agreement special condition at Sec. 1260.52, and funded at the levels
specified in the special condition, are not considered to be new
awards. Therefore, new proposals, new proposal-related certifications
(such as Disclosure of Lobbying Activities, and Debarment and
Suspension), new technical evaluations, and new budget proposals are
not required, as long as this information for the multiple year period
was reviewed and approved as part of the original proposal.
(iii) If NASA program constraints or developments within the
research project dictate a reduction in the funding level specified
under a Multiple Year Grant period, research may continue at the
reduced level under the terms of the provisions; however, the recipient
may rebudget under the grant provisions to keep the project within the
funding actually provided.
(3) An augmentation to a grant may be issued as a supplement at any
time when work is introduced which is outside the scope of the approved
proposal or when there is a need for substantial unanticipated funding.
Augmentations require the submission of revised budget proposals and
technical evaluations covering the additional work. Since augmentations
will be performed within the existing period of performance,
certifications will not normally be required.
(4) A grant extension may be placed to extend the grant beyond the
expiration date, in accordance with the provision at Sec. 1260.23,
Extensions, if additional time beyond the established period of
performance is required to assure adequate completion of the original
scope of work within the available funding.
(5) Grant renewals provide for continuation of research beyond the
original scope, period of performance and funding levels; therefore,
new proposals, certifications and technical evaluations are required
prior to the execution of a grant renewal. Grant renewals will be
awarded as new grants. Continued performance within a period specified
under the Multiple Year Grant provision does not constitute a renewal.
For research originally awarded through a competitive NRA, CAN, or
other competitive announcement that has completed its period of
performance, peer review of a proposal to continue the research should
be accomplished prior to selecting the research grant for renewal. If
the effort was originally awarded through an unsolicited proposal, a
new justification to accept the unsolicited proposal would be required
(however, also see Sec. 1260.12(g)(5)). Multiple year grant special
conditions may be incorporated into renewals.
(b) While NASA normally provides full funding support for research
grants, alternate methods of grant funding are as follows:
(1) Since NASA grant recipients usually gain no measurable
commercial or economic benefit from grants, other than conducting
research, cost sharing for research grants is not generally

[[Page 50341]]

required. NASA may, however, accept cost sharing when voluntarily
offered. Additionally, in instances when the grant officer determines
that the recipient will benefit from the research results through sales
to non-Federal entities, cost sharing based upon this mutuality of
interest will apply. See Sec. 1260.123. When cost sharing is used, the
grant officer shall insert a Special Condition substantially as shown
in Sec. 1260.54, Cost Sharing. (See 14 CFR part 1274 for grants and
cooperative agreements with commercial organizations involving cost
sharing.)
(2) NASA may provide partial support for a research project or
conference where additional funding is being provided by other Federal
agencies. If the grant also involves cost sharing by the recipient, the
grant officer will ensure that the recipient's share does not include
any Federal funds.

Sec. 1260.14 Limitations.

(a) NASA does not award grants merely to provide donative
assistance no matter how worthy the purpose, but to the extent that
appropriations are available to carry out authorized Agency programs.
Research in any academic discipline related to NASA interests normally
will qualify. However, advice of legal counsel should be sought in
unusual situations, or when unusual project activities or
organizational attributes are evident.
(b) It is NASA's policy that non-monetary (zero dollar) grants or
cooperative agreements shall not be used, except for no-cost
extensions.
(c) Loans of Government personal property not associated with a
contract, grant, or cooperative agreement under 31 U.S.C. 6301 to 6308,
and made under the Space Act of 1958, should be consummated as loan
agreements. Also, excess Government research property may be donated to
educational institutions and nonprofit organizations pursuant to 15
U.S.C. 3710(I). See Sec. 51260.133(a)(2).
(d) Neither grants nor cooperative agreements shall be used as
legal instruments for consulting service arrangements.

Sec. 1260.15 Format and numbering.

(a) A grant shall be brief, containing only those provisions and
special conditions necessary to protect the interests of the
Government.
(b) Cover page formats shown in Exhibit B to subpart A of part 1260
shall be used for all NASA grant and cooperative agreement award
documents. Provisions for grants with U.S. organizations shall be
incorporated by reference, and preprinted checklists may be used
(Exhibit C to subpart A of this part 1260). Both special conditions and
provisions for grants with foreign organizations will be printed in
full text. An acceptance block may be added when the grant officer
finds it necessary to require bilateral execution of the grant. Program
budgets are not generally attached to the award document. When it is
necessary to attach the budget due to revisions to the original
proposed budget or other reasons, this information should be suitably
marked as confidential, and is not be disclosed outside of the
Government without the consent of the grantee.
(c) The Identification Numbering System to be used prior to
Integrated Financial Management Project (IFMP) implementation will be
applied as follows:
(1) For research, education, and facilities grants, numbering shall
conform to (NFS) 48 CFR 1804.7102(a) by including the Center
Identification Number, except that a NAG prefix will be used in lieu of
the NAS prefix (e.g., NAG5 would be the Goddard prefix designation).
They will be sequentially numbered.
(2) Cooperative agreements will use the prefix NCC plus the Center
Identification Number. They will be sequentially numbered.
(3) Training grants will use the prefix NGT plus the Center
Identification Number. They will be sequentially numbered.
(4) The Catalog of Federal Domestic Assistance (CFDA) Numbers does
not apply to NASA grants.
(d) The Identification Numbering System will be revised after IFMP
implementation. There will be a phase-in term for Center implementation
of the IFMP. For centers using IFMP Performance Purchasing; the
following numbering system shall be used:
(1) Document Type for grants. For research, education, facilities,
and training grants, the document type prefix GR shall be used.
(2) Document Type for cooperative agreements. Cooperative
agreements will use the prefix CO.
(3) Agency Identifier. The Agency identifier NAS shall follow the
document number.
(4) Center Smart Codes. The Center identifier shall follow the
document type:

------------------------------------------------------------------------
Installation Smart code
------------------------------------------------------------------------
Ames Research Center......................... A
Dryden Flight Research Center................ D
Glenn Research Center........................ C
Goddard Space Flight Center.................. G
Headquarters................................. H
Johnson Space Center......................... J
Kennedy Space Center......................... K
Langley Research Center...................... L
Marshall Space Flight Center................. M
NASA Management Office-JPL................... P
Stennis Space Center......................... S
------------------------------------------------------------------------

(5) Fiscal Year. The fiscal year shall be represented as two
digits.
(6) Procurement Code. ``G'' will be used as the procurement code to
identify grants. Cooperative Agreements will be identified using ``A''
as the procurement code.
(7) Serial Numbers. Installations shall number grants and
cooperative agreements serially by fiscal year. The serial number shall
be six digits commencing with ``000001'' and continuing in succession.
(8) As an example of the above set forth methodology, the first two
grants awarded by Marshall Space Flight Center in fiscal year 1999
would be GRNASM99G000001 and GRNASM99G000002.
(9) The Catalog of Federal Domestic Assistance (CFDA) Numbers does
not apply to NASA grants.

Sec. 1260.16 Distribution.

(a) Copies of grants and supplements will be provided to--
(1) Payment offices (original copy);
(2) Technical officers;
(3) Administrative grant officers when delegated;
(4) The NASA Center for AeroSpace Information (CASI), Attn:
Document Processing Section, 7121 Standard Drive, Hanover, MD 21076;
and
(5) Other appropriate offices as determined by the grant officer.
(b) In addition to receipt of grants and supplements, the
administrative grant officer will receive a copy of the approved
budget.
(c) The file will record the addresses for distribution.

Provisions

Sec. 1260.20 Provisions.

(a) Research grants, education grants, and cooperative agreements
with U.S. educational institutions and nonprofit organizations shall
incorporate by reference the provisions set forth in Secs. 1260.21
through 1260.38. Training grants shall incorporate by reference the
provisions set forth in Secs. 1260.21 through 1260.38, except that the
grant officer will substitute Sec. 1260.22, Technical Publications and
Reports, with reporting requirements as specified by the program
office.

[[Page 50342]]

(b) Facilities grants provisions will be selected on a case-by-case
basis (please refer to Sec. 1260.50).
(c) Research grants awarded to foreign organizations, when approved
by Headquarters, will include the following provisions at a minimum:
Secs. 1260.21, 1260.22, 1260.23, 1260.24, 1260.25, 1260.26, 1260.27,
1260.29, 1260.33, 1260.35, 1260.36 and 1260.37. Additional special
conditions will be selected on a case by case basis (please refer to
1260.50). All provisions will be provided in full text. Referenced
handbooks, statutes, or other regulations, which the recipient may not
have access to, must be made available when requested by the foreign
organization.
(d) The provisions set forth at Sec. 1260.21 through 1260.38 do not
apply to awards made under the Federal Demonstration Partnership (FDP).
FDP awards are subject to the FDP Phase III General Terms and
Conditions and the NASA Agency Specific Requirements Modifications to
the General Terms and Conditions (Exhibit D to subpart A of this part
1260). Since these documents are provided directly to the FDP
institutions, they are not to be attached to FDP grants. However, the
grant officer will include a statement similar to the following on FDP
grants: ``The Federal Demonstration Partnership General Terms and
Conditions and NASA Agency-specific Requirements apply to this award.''
(e) Grants or cooperative agreements awarded by NASA to the
Commercial Space Centers under the Space Development and Commercial
Research (SDCR) Program require special conditions in addition to those
set forth at Secs. 1260.21 through 1260.38. SDCR Special Conditions are
required to be included in full text for all SDCR Grants and
Cooperative Agreements (Exhibit E to subpart A of this part 1260).
Changes or additions to these Special Conditions must be approved by
the Office of Space Utilization and Product Development (Code UM) prior
to the award of the grant. Requests for changes or additions are to be
coordinated through the Office of Procurement, Program Operations
Division (Code HS).
(f) Grants and cooperative agreements awarded by NASA to commercial
organizations where cost sharing is not required shall incorporate the
provisions set forth at Secs. 1260.21 through 1260.38, modified as set
forth under Sec. 1260.4(b).
(g) Grants and cooperative agreements not specifically classified
elsewhere in this section, but that are awarded for other authorized
purposes, shall include provisions selected on a case-by-case basis.
(h) Whenever the word ``grant'' appears in Secs. 1260.21 through
1260.38, it shall be deemed to include, as appropriate, the term
``cooperative agreement.''

Sec. 1260.21 Compliance with OMB Circular A-110.

Compliance With OMB Circular A-110 (Date)

This grant or cooperative agreement is subject to the
requirements set forth in OMB Circular A-110, Uniform Administrative
Requirements for Grants and Agreements with Institutions of Higher
Education, Hospitals, and Other Non-Profit Organizations. Recipients
are required to comply with the requirements of A-110, as adopted by
NASA as subpart B of part 1260 of title 14 of the Code of Federal
Regulations. Specific provisions set forth in this award document
are provided to supplement and clarify, not replace, the Circular,
except in circumstances where a waiver from Circular requirements
has been obtained by NASA.

[End of provision]

Sec. 1260.22 Technical publications and reports.

(This provision describes standard reporting requirements that
should be applied in most circumstances. The requirements set forth
under this provision may be modified by the grant officer based on
specific report needs for the grant or cooperative agreement, provided
that reporting requirements do not conflict with Sec. 1260.151. Any
special reporting requirements will be set forth as a special condition
in the award document.)

Technical Publications and Reports (Date)

(a) NASA encourages the widest practicable dissemination of
research results at any time during the course of the investigation.
All information disseminated as a result of the grant shall contain
a statement which acknowledges NASA's support and identifies the
grant by number (e.g., ``The material is based upon work supported
by NASA under award No(s) GRNASM99G000001, etc.'').
(b) Reports shall be in the English language, informal in
nature, and ordinarily not exceed three pages (not counting
bibliographies, abstracts, and lists of other media). The recipient
shall submit the following reports:
(1) A Progress Report for all but the final year of the grant.
Each report is due 60 days before the anniversary date of the grant
and shall briefly describe what was accomplished during the
reporting period as outlined in Sec. 1260.151(d). A special
condition specifying more frequent reporting may be required.
(2) A Summary of Research (or Educational Activity Report in the
case of Education Grants) is due within 90 days after the expiration
date of the grant, regardless of whether or not support is continued
under another grant. This report shall be a comprehensive summary of
significant accomplishments during the duration of the grant.
(c) Progress Reports, Summaries of Research, and Educational
Activity Reports shall include the following on the first page:
(1) Title of the grant.
(2) Type of report.
(3) Name of the principal investigator.
(4) Period covered by the report.
(5) Name and address of the recipient's institution.
(6) Grant number.
(d) Progress Reports, Summaries of Research, and Educational
Activity Reports shall be distributed as follows:
(1) The original report, in both hard copy and electronic
format, to the Technical Officer.
(2) One copy to the NASA Grant Officer, with a notice to the
Administrative Grant Officer, (when administration of the grant has
been delegated to ONR), that a report was sent.
(e) For Summaries of Research and published reports, one
microreproducible copy shall also be sent to the NASA Center for
AeroSpace Information (CASI), Attn: Document Processing Section, 7121
Standard Drive, Hanover, MD 21076.

[End of provision]

Sec. 1260.23 Extensions.

Extensions (Date)

(a) It is NASA policy to provide maximum possible continuity in
funding grant-supported research and educational activities,
therefore, grants may be extended for additional periods of time
when necessary to complete work that was part of the original award.
NASA generally only approves such extensions within funds already
made available. Any extension that would require additional funding
must be supported by a proposal submitted at least three months in
advance of the expiration date of the grant.
(b) In accordance with Sec. 1260.125(e)(2), Recipients may
extend the expiration date of a grant if additional time beyond the
established expiration date is required to assure adequate
completion of the original scope of work within the funds already
made available. For this purpose, the recipient may make a one-time
no-cost extension, not to exceed 12 months, prior to the established
expiration date. Written notification of such an extension request,
with the supporting reasons, must be received by the NASA Grant
Officer at least ten days prior to the expiration of the award. A
copy of the extension request must also be forwarded to cognizant
Office of Naval Research office. NASA reserves the right to
disapprove the extension if the requirements set forth at
Sec. 1260.125(e)(2) are not met.
(c) Requests for approval for all other no-cost extensions must
be submitted in writing to the NASA Grant Officer. Copies are to be
forwarded to the cognizant Office of Naval Research office.

[End of provision]

[[Page 50343]]

Sec. 1260.24 Termination and enforcement.

Termination and Enforcement (Date)

As a clarification to the termination and enforcement conditions
of this award specified in Secs. 1260.160 through 1260.162, although
NASA's policy is to consult with the recipient, NASA reserves the
right to suspend or terminate the award without prior notice when it
believes such action is necessary to protect the interest of the
Government.

[End of provision]

Sec. 1260.25 Change in principal investigator or scope.

Change in Principal Investigator or Scope (Date)

The following guidance is provided as an amplification to prior
approval requirements set forth at Sec. 1260.125(c):
(a) The Recipient shall obtain the approval of the NASA Grant
Officer for a change of the principal investigator, or for a
significant absence of the Principal Investigator from the project,
defined as a three month absence from the program or a 25 percent
reduction in time devoted to the project. Significantly reduced
availability of the services of the principal investigator(s) named
in the grant instrument could be grounds for termination, unless
alternative arrangements are made and approved in writing by the
Grant Officer.
(b) Prior written approval is required from NASA if there is to
be a significant change in the objective or scope.

[End of provision]

Sec. 1260.26 Financial management.

Financial Management (Date)

(a) Advance payments by electronic funds transfer will be made
by the Financial Management Office of the NASA Center which issued
the grant in accordance with procedures provided to the recipient.
The recipient shall submit Federal Cash Transaction Reports (SF 272)
to the aforementioned office and to the Administrative Grant Officer
(if NASA has delegated administration) within 15 working days
following the end of each Federal fiscal quarter, containing current
estimates of the cash requirements for each of the four months
following the quarter being reported. The final SF 272 is due within
90 days after the expiration date of the grant. The final SF 272
shall be submitted to the Financial Management Office, with copies
sent to the NASA Grant Officer, and to the Administrative Grant
Officer when the Office of Naval Research (ONR) has been delegated
grant closeout responsibilities.
(b) Unless otherwise directed by the Grant Officer, any
unexpended balance of funds which remains at the end of any funding
period, except the final funding period of the grant, shall be
carried over to the next funding period, and may be used to defray
costs of any funding period of the grant. This includes allowing the
carry over of funds to the second and subsequent years of a multiple
year grant. This provision also applies to subcontractors performing
substantive work under the grant. For grant renewals, the estimated
amount of unexpended funds shall be identified in the grant budget
section of the recipient's renewal proposal. NASA reserves the right
to remove unexpended balances from grants when insufficient efforts
have been made by the grantee to liquidate funding balances in a
timely fashion.

[End of provision]

Sec. 1260.27 Equipment and other property.

Equipment and Other Property (Date)

(a) On an exceptional basis, NASA permits acquisition of special
purpose and general purpose equipment specifically required for use
exclusively for research activities.
(1) Acquisition of special purpose or general purpose equipment
costing in excess of $5,000 (unless a lower threshold has been
established by the recipient) and not included in the approved
proposal budget, requires the prior approval of the NASA Grant
Officer. Requests to the NASA Grant Officer for the acquisition of
equipment shall be supported by written documentation setting forth
the description, purpose, and acquisition value of the equipment,
and including a written certification that the equipment will be
used exclusively for research, activities. (A change in the model
number of a prior approved piece of equipment does not require re-
submission for that item.)
(2) NASA may elect to take title to items of special purpose or
general purpose equipment after it is no longer necessary for
performance of the grant. The recipient will be advised of the
Government's intention to take title in writing if the item is
approved for recipient purchase. Generally, the notification is made
through inclusion of the special condition at 1260.66, Listing of
Reportable Equipment and Other Property. If the Government does not
exercise its right to take title to property acquired by the
recipient with grant funds at the time the acquisition is approved,
the property will be considered exempt according to 1260.133(b).
When property is classified as exempt, the recipient shall hold
title without further obligation to the Federal Government,
including reporting of the equipment.
(3) Special purpose or general purpose equipment acquired by the
recipient with grant funds, valued under $5,000 (unless a lower
threshold is established by the recipient) are classified as
``supplies,'' do not require the prior approval of the NASA Grant
Officer, shall vest in the recipient, and will be considered
``exempt'' in accordance with 1260.133(b).
(4) Grant funds may be expended for the acquisition of land or
interests therein or for the acquisition and construction of
facilities only under a facilities grant, as defined in 1260.12(g).
(b) The recipient shall submit an annual Inventory Report, to be
received no later than October 31 of each year, which lists all
reportable (non-exempt equipment and/or Federally owned property) in
its custody as of September 30. Negative responses for annual
Inventory Reports (when there is no reportable equipment) are not
required. A Final Inventory Report of Federally Owned Property,
including equipment where title was taken by the Government, will be
submitted by the recipient no later than 60 days after the
expiration date of the grant. Negative responses for Final Inventory
Reports are required.
(1) All reports will include the information listed in paragraph
(f)(1) of 1260.134, Equipment. No specific report form or format is
required, provided that all necessary information set forth at
1260.134(f)(1) is provided.
(2) The original of each report shall be submitted to the Center
Deputy Chief Financial Officer, Finance (DCFO(F)). Copies shall be
furnished to the Center Industrial Property Officer and to ONR.

[End of provision]

Sec. 1260.28 Patent rights.

Patent Rights (Date)

As stated at 1260.136, this award is subject to the provisions
of 37 CFR 401.3(a) which requires use of the standard clause set out
at 37 CFR 401.14 ``Patent Rights (Small Business Firms and Nonprofit
Organizations)'' and the following:
(a) Where the term ``contract'' or ``contractor'' is used in the
``Patent Rights'' clause, the term shall be replaced by the term
``grant'' or ``recipient,'' respectively.
(b) In each instance where the term ``Federal Agency,''
``agency,'' or ``funding Federal agency'' is used in the ``Patent
Rights'' clause, the term shall be replaced by the term ``NASA.''
(c) The NASA regulation applicable to paragraph (e) of the
``Patent Rights'' clause is at 37 CFR part 404, Licensing of
Government-owned Inventions.
(d) The following item is added to the end of paragraph (f) of
the ``Patent Rights'' clause: ``(5) The recipient shall include a
list of any Subject Inventions required to be disclosed during the
preceding year in the performance report, technical report, or
renewal proposal. A complete list (or a negative statement) for the
entire award period shall be included in the summary of research.''
(e) The term ``subcontract'' in paragraph (g) of the ``Patent
Rights'' clause shall include purchase orders.
(f) The NASA implementing regulation for paragraph (g)(2) of the
``Patent Rights'' clause is at 48 CFR 1827.304-4(a)(i)(B).
(g) The following requirement constitutes paragraph (l) of the
``Patent Rights'' clause:
``(l) Communications. A copy of all submissions or requests
required by this clause, plus a copy of any reports, manuscripts,
publications or similar material bearing on patent matters, shall be
sent to the Center Patent Counsel and the NASA Grant Officer in
addition to any other submission requirements in the grant
provisions. If any reports contain information describing a
``subject invention'' for which the recipient has elected or may
elect to retain title, NASA will use reasonable efforts to delay
public release by NASA or publication by NASA in a NASA technical
series until an application filing date has been established,
provided that the recipient identify the information and the
``subject invention'' to which it relates at the time of submittal.
If required by the NASA Grant Officer, the recipient shall

[[Page 50344]]

provide the filing date, serial number and title, a copy of the
patent application, and a patent number and issue date for any
``subject invention'' in any country in which the recipient has
applied for patents.''
(h) NASA Inventions. NASA will use reasonable efforts to report
inventions made by NASA employees as a consequence of, or which bear
a direct relation to, the performance of specified NASA activities
under this agreement and, upon timely request, will use reasonable
efforts to grant the recipient an exclusive, or partially exclusive,
revocable, royalty-bearing license, subject to the retention of a
royalty-free right of the Government to practice or have practiced
the invention by or on behalf of the Government.
(i) In the event NASA contractors are tasked to perform work in
support of specified activities under a cooperative agreement and
inventions are made by contractor employees, the recipient will
normally retain title to its employee inventions in accordance with
35 U.S.C. 202, 14 CFR part 1245, and Executive Order 12591. In the
event the recipient decides not to pursue rights to title in any
such invention and NASA obtains title to such inventions, NASA will
use reasonable efforts to report such inventions and, upon timely
request, will use reasonable efforts to grant the recipient an
exclusive, or partially exclusive, revocable, royalty-bearing
license, subject to the retention of a royalty-free right of the
Government to practice or have practiced the invention by or on
behalf of the Government.

[End of provision]

Sec. 1260.29 Invention reporting and rights.

(The grant officer may revise the language under paragraph (d) of
this provision to modify each party's rights based on the particular
circumstances of the program and/or the recipient's need to protect
specific proprietary information. Any modification to the standard
language set forth under the provision requires the concurrence of the
Center's Patent Counsel and the provision be printed in full text.)

Invention Reporting and Rights (Date)

(a) As used in this provision:
(1) The term ``invention'' means any invention or discovery
which is or may be patentable or otherwise protectable under Title
35 of the United States Code, or any novel variety of plant which is
or may be protected under the Plant Variety Protection Act (7 U.S.C.
2321 et seq.).
(2) The term ``made'' when used in relation to any invention
means the conception or first actual reduction to practice of such
invention.
(b) The recipient shall report promptly to the grant officer
each invention made in the performance of work under this grant. The
report of such invention shall--
(1) Identify the inventor(s) by full name; and
(2) Include such full and complete technical information
concerning the invention as is necessary to enable an understanding
of the nature and operation thereof.
(c) Reporting shall be made on NASA Form 1679 Disclosure of
Invention and New Technology (Including Software).
(d) The recipient hereby grants to the Government of the United
States of America, as represented by the Administrator of the
National Aeronautics and Space Administration, the full rights,
title, and interest in and to each such invention throughout the
world.

Sec. 1260.30 Rights in data.

(The grant officer may revise the language under this provision to
modify each party's rights based on the particular circumstances of the
program and/or the recipients need to protect specific proprietary
information. Any modification to the standard language set forth under
the provision requires the concurrence of the Center's Patent Counsel
and that the provision be printed in full text.)

Rights in Data (Date)

(a) Fully Funded Efforts.
(1) ``Data'' means recorded information, regardless of form, the
media on which it may be recorded, or the method of recording. The
term includes, but is not limited to, data of a scientific or
technical nature, computer software and documentation thereof, and
data comprising commercial and financial information.
(2) The recipient grants to the Federal Government, a royalty-
free, nonexclusive and irrevocable license to use, reproduce,
distribute (including distribution by transmission) to the public,
perform publicly, prepare derivative works, and display publicly,
data in whole or in part and in any manner for Federal purposes and
to have or permit others to do so for Federal purposes only.
(3) In order that the Federal Government may exercise its
license rights in data, the Federal Government, upon request to the
recipient, shall have the right to review and/or obtain delivery of
data resulting from the performance of work under this grant, and
authorize others to receive data to use for Federal purposes.
(b) Cost Sharing and/or Matching Efforts. When the recipient
cost shares with the Government on the effort, the following is
added:
``(5) In the event data first produced by recipient in carrying
out recipient's responsibilities under an agreement is furnished to
NASA, and recipient considers such data to embody trade secrets or
to comprise commercial or financial information which is privileged
or confidential, and such data is so identified with a suitable
notice or legend, the data will be maintained in confidence and
disclosed and used by the Government and its contractors (under
suitable protective conditions) only for experimental, evaluation,
research and development purposes, by or on behalf of the Government
for an agreed to period of time, and thereafter for Federal purposes
as defined in Sec. 1260.30(a)(2).''
(c) Add the following paragraph in Cooperative Agreements.
``(#) As to data first produced by NASA in carrying out NASA's
responsibilities under a cooperative agreement and which data would
embody trade secrets or would comprise commercial or financial
information that is privileged or confidential if it has been
obtained from the recipient, such data will be marked with an
appropriate legend and maintained in confidence for 5 years (unless
a shorter period has been agreed to between the Government and
recipient) after development of the information, with the express
understanding that during the aforesaid period such data may be
disclosed and used (under suitable protective conditions) by or on
behalf of the Government for Government purposes only, and
thereafter for any purpose whatsoever without restriction on
disclosure and use. Recipient agrees not to disclose such data to
any third party without NASA's written approval until the
aforementioned restricted period expires.''

[End of provision]

Sec. 1260.31 National security.

National Security (Date)

Normally, NASA grants do not involve classified information.
However, if it is known in advance that a grant involves classified
information or if the work on the grant is likely to develop
classified information, individuals performing on the grant who will
have access to the information must obtain the appropriate security
clearance in advance of performing on the grant, in accordance with
NASA Policy Guidance (NPG) 1620.1 Security Procedures and
Guidelines. When access to classified information is not originally
anticipated in the performance of a grant, but such information is
subsequently sought or potentially developed by the grant recipient,
the NASA Grant Officer who issued the grant shall be notified
immediately, and prior to work under the grant proceeding, to
implement the appropriate clearance requirements.

[End of provision]

Sec. 1260.32 Nondiscrimination.

Nondiscrimination (Date)

(a) To the extent provided by law and any applicable agency
regulations, this award and any program assisted thereby are subject
to the provisions of Title VI of the Civil Rights Act of 1964
(Public Law 88-352), Title IX of the Education amendments of 1972
(Public Law 92-318, 20 U.S.C. 1681 et seq.), Section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794), the Age Discrimination
Act of 1975 (Public Law 94-135), the implementing regulations issued
pursuant thereto by NASA, and the assurance of compliance which the
recipient has filed with NASA.
(b) The recipient shall obtain from each organization that
applies or serves as a subrecipient, contractor or subcontractor
under this award (for other than the provision of commercially
available supplies, materials, equipment, or general support
services) an assurance of compliance as required by NASA
regulations.
(c) Work on NASA grants is subject to the provisions of Title VI
of the Civil Rights Act

[[Page 50345]]

of 1964 (Public Law 88-352; 42 U.S.C. 2000d-l), Title IX of the
Education Amendments of 1972 (20 U.S.C. 1680 et seq.), Section 504
of the Rehabilitation Act of 1973, as amended (29 U.S.C. 794), the
Age Discrimination Act of 1975 (42 U.S.C. 6101 et seq.), and the
NASA implementing regulations (14 CFR parts 1250, 1251, 1252, and
1253).

[End of provision]

Sec. 1260.33 Subcontracts.

Subcontracts (Date)

(a) Recipients shall notify NASA when a subcontract award will
be made that falls within the thresholds established at
Sec. 1260.144(e). When pre-award review of a subcontract is
requested by the NASA Grant Officer in accordance with
Sec. 1260.144(e), the following specific documents will be made
available to the NASA Grant Officer. (The Grant Officer can request
additional documents):
(1) A copy of the proposed subcontract.
(2) The basis for subcontractor selection.
(3) Justification for lack of competition when competitive bids
or offers are not obtained.
(4) The subcontract budget and basis for subcontract cost or
price.
(b) The recipient (with the exception of foreign organizations)
shall utilize small business concerns, small disadvantaged business
concerns, Historically Black Colleges and Universities, minority
educational institutions, and women-owned small business concerns as
subcontractors to the maximum extent practicable.

[End of provision]

Sec. 1260.34 Clean air and water.

Clean Air and Water (Date)

(Applicable only if the award exceeds $100,000, or a facility to
be used has been the subject of a conviction under the Clean Air Act
(42 U.S.C. 1857c-8(c)(1) or the Federal Water Pollution Control Act
(33 U.S.C. 1319(c)), and is listed by EPA, or if the award is not
otherwise exempt). The recipient agrees to the following:
(a) Comply with applicable standards, orders or regulations
issued pursuant to the Clean Air Act, as amended (42 U.S.C. 7401 et
seq.) and of the Federal Water Pollution Control Act (33 U.S.C. 1251
et seq.).
(b) Ensure that no portion of the work under this award will be
performed in a facility listed on the Environmental Protection
Agency (EPA) List of Violating Facilities on the date that this
award was effective unless and until the EPA eliminates the name of
such facility or facilities from such listings.
(c) Use its best efforts to comply with clean air standards and
clean water standards at the facility in which the award is being
performed.
(d) Insert the substance of the provisions of this clause into
any nonexempt subaward or contract under the award.
(e) Report violations to NASA or to EPA.

[End of provision]

Sec. 1260.35 Investigative requirements.

Investigative Requirements (Date)

(a) As requested by NASA, the recipient of each grant, and any
other individuals to perform on the grant, agree to provide
sufficient personal/biographical information necessary to conduct an
investigation of the individual's background. The purpose of the
investigation is to allow access to a NASA Center, or to NASA
information, for performance of this grant. The recipient
acknowledges that NASA reserves the right to perform security
checks, and to deny or restrict access to a NASA Center, facility,
computer system, or technical information as appropriate.
(b) All visit requests must be submitted in a timely manner in
accordance with instructions provided by the Center(s) to be
visited.

[End of provision]

Sec. 1260.36 Travel and transportation.

Travel and Transportation (Date)

(a) The Fly American Act, 49 U.S.C. 1517, requires the recipient
to use U.S. flag air carriers for international air transportation
of personnel and property to the extent that service by those
carriers is available.
(b) Department of Transportation regulations, 49 CFR part 173,
govern recipient shipment of hazardous materials and other items.

[End of provision]

Sec. 1260.37 Safety.

Safety (Date)

(a) The recipient shall act responsibly in matters of safety and
shall take all reasonable safety measures in performing under this
grant or cooperative agreement. The recipient shall comply with all
applicable federal, state, and local laws relating to safety. The
recipient shall maintain a record of, and will notify the NASA Grant
Officer of any accident involving death, disabling injury or
substantial loss of property. The recipient will advise NASA of
hazards that come to its attention as a result of the work performed
through routine status reports furnished in compliance with this
grant or cooperative agreement.
(b) Where the work under this grant or cooperative agreement
involves flight hardware, the hazardous aspects, if any, of such
hardware will be identified, in writing, by the recipient.
Compliance with this provision by subcontractors shall be the
responsibility of the recipient.

[End of provision]

Sec. 1260.38 Drug-free workplace.

Drug-Free Workplace (Date)

(a) Definitions. As used in this provision--
Controlled substance means a controlled substance in schedules I
through V of section 202 of the Controlled Substances Act (21 U.S.C.
812) and as further defined in regulation at 21 CFR 1308.11 through
1308.15.
Conviction means a finding of guilt (including a plea of nolo
contendere) or imposition of sentence, or both, by any judicial body
charged with the responsibility to determine violations of the
Federal or State criminal drug statutes.
Criminal drug statute means a Federal or non-Federal criminal
statute involving the manufacture, distribution, dispensing,
possession, or use of any controlled substance.
Drug-free workplace means the site(s) for the performance of
work done by the Recipient in connection with a specific grant or
cooperative agreement at which employees of the Recipient are
prohibited from engaging in the unlawful manufacture, distribution,
dispensing, possession, or use of a controlled substance.
Employee means an employee of a Recipient directly engaged in
the performance of work under a Government grant or cooperative
agreement. ``Directly engaged'' is defined to include all direct
cost employees and any other Recipient employee who has other than a
minimal impact or involvement in performance of the grant or
cooperative agreement.
Individual means a proposer/recipient that has no more than one
employee including the proposer/recipient.
(b) The Recipient, if other than an individual, shall--within 30
days after award (unless a longer period is agreed to in writing),
or as soon as possible for grants and cooperative agreements of less
than 30 days performance duration--
(1) Publish a statement notifying its employees that the
unlawful manufacture, distribution, dispensing, possession, or use
of a controlled substance is prohibited in the Recipient's workplace
and specifying the actions that will be taken against employees for
violations of such prohibition;
(2) Establish an ongoing drug-free awareness program to inform
such employees about--
(i) The dangers of drug abuse in the workplace;
(ii) The Recipient's policy of maintaining a drug-free
workplace;
(iii) Any available drug counseling, rehabilitation, and
employee assistance programs; and
(iv) The penalties that may be imposed upon employees for drug
abuse violations occurring in the workplace;
(3) Provide all employees engaged in performance of the grant or
cooperative agreement with a copy of the statement required by
paragraph (b)(1) of this provision;
(4) Notify such employees in writing in the statement required
by paragraph (b)(1) of this provision that, as a condition of
continued employment on the grant or cooperative agreement, the
employee will--
(i) Abide by the terms of the statement; and
(ii) Notify the employer in writing of the employee's conviction
under a criminal drug statute for a violation occurring in the
workplace no later than 5 days after such conviction;
(5) Notify the Grant Officer in writing within 10 days after
receiving notice under paragraph (b)(4)(ii) of this provision, from
an employee or otherwise receiving actual notice of such conviction.
The notice shall include the position title of the employee;
(6) Within 30 days after receiving notice under paragraph
(b)(4)(ii) of this provision of

[[Page 50346]]

a conviction, take one of the following actions with respect to any
employee who is convicted of a drug abuse violation occurring in the
workplace:
(i) Taking appropriate personnel action against such employee,
up to and including termination; or
(ii) Require such employee to satisfactorily participate in a
drug abuse assistance or rehabilitation program approved for such
purposes by a Federal, State, or local health, law enforcement, or
other appropriate agency; and
(7) Make a good faith effort to maintain a drug-free workplace
through implementation of paragraphs (b)(1) though (b)(6) of this
provision.
(c) The Recipient, if an individual, agrees by acceptance of the
grant or cooperative agreement, not to engage in the unlawful
manufacture, distribution, dispensing, possession, or use of a
controlled substance during performance.
(d) In addition to other remedies available to the Government,
the Recipient's failure to comply with the requirements of paragraph
(b) or (c) of this provision may render the Recipient subject to
suspension of payments, termination of the grant or cooperative
agreement, and suspension or debarment.

[End of provision]

Special Conditions

Sec. 1260.50 Special conditions.

(a) In addition to the provisions set forth in Secs. 1260.21
through 1260.38, NASA grants and cooperative agreements are subject to
special conditions, which either are not applicable to all awards or
are temporary in nature. Examples are found in Secs. 1260.51 through
1260.69, but NASA may impose other conditions as discussed in
Sec. 1260.114 or as the requirements dictate. Deviations are not
required for changes made to special conditions.
(b) Special conditions will be printed in full text.
(c) In facilities grants, special conditions will be selected on a
case-by-case basis. As appropriate, the requirements of the following
sections will apply: Sec. 1260.123(c), Cost Sharing or Matching;
Sec. 1260.125(h), Revision of Budget and Program Plans; and
Sec. 1260.132, Real Property.
(d) Research grants with foreign organizations will include special
conditions at Secs. 1260.59 through 1260.61, modified as necessary,
when not covered under a Memorandum of Agreement (MOA). In addition,
other special conditions (e.g., Secs. 1260.62 through 1260.65) will be
written with the aid of legal counsel, and added when necessary.

Sec. 1260.51 Cooperative agreement special condition.

Cooperative Agreement Special Condition (Date)

(a) This award is a cooperative agreement as it is anticipated
there will be substantial NASA involvement during performance of the
effort. NASA and the recipient mutually agree to the following
statement of anticipated cooperative interactions which may occur
during the performance of this effort:
(Reference the approved proposal that contains a detailed
description of the work and insert a concise statement of the exact
nature of the cooperative interactions that deals with existing
facts and not contingencies.)
(b) The terms ``grant'' and ``recipient'' mean ``cooperative
agreement'' and ``recipient of cooperative agreement,''
respectively, wherever the terms appear in provisions and special
conditions included in this agreement.
(c) NASA's ability to participate and perform its collaborative
effort under this cooperative agreement is subject to the
availability of appropriated funds and nothing in this cooperative
agreement commits the United States Congress to appropriate funds
therefor.

Sec. 1260.52 Multiple year grant or cooperative agreement.

Multiple Year Grant or Cooperative Agreement (Date)

This is a multiple year grant or cooperative agreement.
Contingent on the availability of funds, scientific progress of the
project, and continued relevance to NASA programs, NASA anticipates
continuing support at approximately the following levels:
Second year $________, Anticipated funding date ________.
Third year $________, Anticipated funding date ________.
(Periods may be added or omitted, as applicable)

Sec. 1260.53 Incremental funding.

Incremental Funding (Date)

(a) Only $________ of the amount indicated on the face of this
award is available for payment and allotted to this award. NASA
contemplates making additional allotments of funds during
performance of this effort. It is anticipated that these funds will
be obligated as appropriated funds become available without any
action required by the recipient. The recipient will be given
written notification by the NASA Grant Officer.
(b) The recipient agrees to perform work up to the point at
which the total amount paid or payable by the Government
approximates but does not exceed the total amount actually allotted
to this grant or cooperative agreement. NASA is not obligated to
reimburse the recipient for the expenditure of amounts in excess of
the total funds allotted by NASA to this grant or cooperative
agreement. The recipient is not authorized to continue performance
beyond the amount allotted to this award.

Sec. 1260.54 Cost sharing.

Cost Sharing (Date)

(a) NASA and the recipient will share in providing the resources
necessary to perform the agreement. NASA funding and non-cash
contributions (personnel, equipment, facilities, etc.) and the
dollar value of the recipient's cash and/or non-cash contribution
will be on a ____ percent NASA; ____ percent recipient basis.
(b) The funding and non-cash contributions by both parties is
represented by the following dollar amounts:

Government Share-------------------------------------------------------
Recipient Share--------------------------------------------------------
Total Amount-----------------------------------------------------------
(c) Criteria and procedures for the allowability and
allocability of cash and non-cash contributions shall be governed by
Sec. 1260.123, Cost Sharing or Matching. The applicable Federal cost
principles are cited in Sec. 1260.127.
(d) The recipient's share shall not be charged to the Government
under this agreement or under any other contract, grant, or
cooperative agreement.

Sec. 1260.55 Reports substitution.

Reports Substitution (Date)

Technical Reports may be substituted for the required
Performance Reports. The title page of such reports shall clearly
indicate that the substitution has been made and will show the
period covered by the originally required Performance Report.

Sec. 1260.56 Withholding.

Withholding (Date)

If a recipient fails to comply with the terms and conditions of
this grant or cooperative agreement, including reporting
requirements, NASA may withhold advance payments under this award,
and may also withhold future awards to the recipient, pending
correction of the deficiency by the recipient. If advance payments
are withheld, the Grant Officer will notify the NASA Financial
Management Office when payments may resume.

Sec. 1260.57 New technology.

New Technology (Date)

(a) Definitions.
Administrator, as used in this special condition, means the
Administrator of the National Aeronautics and Space Administration
(NASA) or duly authorized representative.
Grant, as used in this special condition, means any actual or
proposed grant, cooperative agreement, understanding, or other
arrangement, and includes any assignment, substitution of parties,
or subcontract executed or entered into thereunder.
Made, as used in this special condition, means conception or
first actual reduction to practice; provided, that in the case of a
variety of plant, the date of determination (as defined in section
41(d) of the Plant Variety Protection Act, 7 U.S.C. 2401(d)) must
also occur during the period of grant performance.

[[Page 50347]]

Nonprofit organization, as used in this special condition, means
a domestic university or other institution of higher education or an
organization of the type described in section 501(c)(3) of the
Internal Revenue Code of 1954 (26 U.S.C. 501(c)) and exempt from
taxation under section 501(a) of the Internal Revenue Code (26
U.S.C. 501(a)), or any domestic nonprofit scientific or educational
organization qualified under a State nonprofit organization statute.
Practical application, as used in this special condition, means
to manufacture, in the case of a composition or product; to
practice, in the case of a process or method; or to operate, in case
of a machine or system; and, in each case, under such conditions as
to establish that the invention is being utilized and that its
benefits are, to the extent permitted by law or Government
regulations, available to the public on reasonable terms.
Reportable item, as used in this special condition, means any
invention, discovery, improvement, or innovation of the grantee,
whether or not patentable or otherwise protectable under Title 35 of
the United States Code, made in the performance of any work under
any NASA grant or in the performance of any work that is
reimbursable under any provision in any NASA grant providing for
reimbursement of costs incurred before the effective date of the
grant. Reportable items include, but are not limited to, new
processes, machines, manufactures, and compositions of matter, and
improvements to, or new applications of, existing processes,
machines, manufactures, and compositions of matter. Reportable items
also include new computer programs, and improvements to, or new
applications of, existing computer programs, whether or not
copyrightable or otherwise protectable under Title 17 of the United
States Code.
Small business firm, as used in this special condition, means a
domestic small business concern as defined at 15 U.S.C. 632 and
implementing regulations (see 13 CFR 121.401 through 121.413) of the
Administrator of the Small Business Administration.
Subject invention, as used in this special condition, means any
reportable item which is or may be patentable or otherwise
protectible under Title 35 of the United States Code, or any novel
variety of plant that is or may be protectable under the Plant
Variety Protection Act (7 U.S.C. 2321 et seq.).
(b) Allocation of principal rights.
(1) Presumption of title.
(i) Any reportable item that the Administrator considers to be a
subject invention shall be presumed to have been made in the manner
specified in paragraph (1) or (2) of section 305(a) of the National
Aeronautics and Space Act of 1958 (42 U.S.C. 2457(a)) (hereinafter
called ``the Act''), and that presumption shall be conclusive unless
at the time of reporting the reportable item the Recipient submits
to the Grant Officer a written statement, containing supporting
details, demonstrating that the reportable item was not made in the
manner specified in paragraph (1) or (2) of section 305(a) of the
Act.
(ii) Regardless of whether title to a given subject invention
would otherwise be subject to an advance waiver or is the subject of
a petition for waiver, the Recipient may nevertheless file the
statement described in paragraph (b)(1)(i) of this special
condition. The Administrator will review the information furnished
by the Recipient in any such statement and any other available
information relating to the circumstances surrounding the making of
the subject invention and will notify the Recipient whether the
Administrator has determined that the subject invention was made in
the manner specified in paragraph (1) or (2) of section 305(a) of
the Act.
(2) Property rights in subject inventions. Each subject
invention for which the presumption of paragraph (b)(1)(i) of this
special condition is conclusive or for which there has been a
determination that it was made in the manner specified in paragraph
(1) or (2) of section 305(a) of the Act shall be the exclusive
property of the United States as represented by NASA unless the
Administrator waives all or any part of the rights of the United
States, as provided in paragraph (b)(3) of this special condition.
(3) Waiver of rights.
(i) Section 305(f) of the Act provides for the promulgation of
regulations by which the Administrator may waive the rights of the
United States with respect to any invention or class of inventions
made or that may be made under conditions specified in paragraph (1)
or (2) of section 305(a) of the Act. The promulgated NASA Patent
Waiver Regulations, 14 CFR part 1245, subpart 1, have adopted the
Presidential Memorandum on Government Patent Policy of February 18,
1983, as a guide in acting on petitions (requests) for such waiver
of rights.
(ii) As provided in 14 CFR part 1245, subpart 1, Recipients may
petition, either prior to execution of the grant or within 30 days
after execution of the grant, for advance waiver of rights to any or
all of the inventions that may be made under a grant. If such a
petition is not submitted, or if after submission it is denied, the
Recipient (or an employee inventor of the Recipient) may petition
for waiver of rights to an identified subject invention within eight
months of first disclosure of the invention in accordance with
paragraph (e)(2) of this special condition, or within such longer
period as may be authorized in accordance with 14 CFR 1245.105.
(c) Minimum rights reserved by the Government.
(1) With respect to each subject invention for which a waiver of
rights is applicable in accordance with 14 CFR part 1245, subpart 1,
the Government reserves--
(i) An irrevocable, nonexclusive, nontransferable, royalty-free
license for the practice of such invention throughout the world by
or on behalf of the United States or any foreign government in
accordance with any treaty or agreement with the United States; and
(ii) Such other rights as stated in 14 CFR 1245.107.
(2) Nothing contained in this paragraph (c) shall be considered
to grant to the Government any rights with respect to any invention
other than a subject invention.
(d) Minimum rights to the Recipient.
(1) The Recipient is hereby granted a revocable, nonexclusive,
royalty-free license in each patent application filed in any country
on a subject invention and any resulting patent in which the
Government acquires title, unless the Recipient fails to disclose
the subject invention within the times specified in paragraph (e)(2)
of this special condition. The Recipient's license extends to its
domestic subsidiaries and affiliates, if any, within the corporate
structure of which the Recipient is a party and includes the right
to grant sublicenses of the same scope to the extent the Recipient
was legally obligated to do so at the time the grant was awarded.
The license is transferable only with the approval of the
Administrator except when transferred to the successor of that part
of the Recipient's business to which the invention pertains.
(2) The Recipient's domestic license may be revoked or modified
by the Administrator to the extent necessary to achieve expeditious
practical application of the subject invention pursuant to an
application for an exclusive license submitted in accordance with 37
CFR part 404, Licensing of Government Owned Inventions. This license
will not be revoked in that field of use or the geographical areas
in which the Recipient has achieved practical application and
continues to make the benefits of the invention reasonably
accessible to the public. The license in any foreign country may be
revoked or modified at the discretion of the Administrator to the
extent the Recipient, its licensees, or its domestic subsidiaries or
affiliates have failed to achieve practical application in that
foreign country.
(3) Before revocation or modification of the license, the
Recipient will be provided a written notice of the Administrator's
intention to revoke or modify the license, and the Recipient will be
allowed 30 days (or such other time as may be authorized by the
Administrator for good cause shown by the Recipient) after the
notice to show cause why the license should not be revoked or
modified. The Recipient has the right to appeal to the Administrator
any decision concerning the revocation or modification of its
license.
(e) Invention identification, disclosures, and reports.
(1) The Recipient shall establish and maintain active and
effective procedures to assure that reportable items are promptly
identified and disclosed to Recipient personnel responsible for the
administration of this New Technology special condition within six
months of conception and/or first actual reduction to practice,
whichever occurs first in the performance of work under this grant.
These procedures shall include the maintenance of laboratory
notebooks or equivalent records and other records as are reasonably
necessary to document the conception and/or the first actual
reduction to practice of the reportable items, and records that show
that the procedures for identifying and disclosing reportable items
are followed. Upon request, the Recipient shall furnish the Grant
Officer a description of such procedures for evaluation and for
determination as to their effectiveness.
(2) The Recipient will disclose each reportable item to the
Grant Officer within

[[Page 50348]]

two months after the inventor discloses it in writing to Recipient
personnel responsible for the administration of this New Technology
special condition or, if earlier, within six months after the
Recipient becomes aware that a reportable item has been made, but in
any event for subject inventions before any on sale, public use, or
publication of such invention known to the Recipient. The disclosure
to the agency shall be in the form of a written report and shall
identify the grant under which the reportable item was made and the
inventor(s) or innovator(s). It shall be sufficiently complete in
technical detail to convey a clear understanding, to the extent
known at the time of the disclosure, of the nature, purpose,
operation, and physical, chemical, biological, or electrical
characteristics of the reportable item. The disclosure shall also
identify any publication, on sale, or public use of any subject
invention and whether a manuscript describing such invention has
been submitted for publication and, if so, whether it has been
accepted for publication at the time of disclosure. In addition,
after disclosure to the agency, the Recipient will promptly notify
the agency of the acceptance of any manuscript describing a subject
invention for publication or of any on sale or public use planned by
the Recipient for such invention.
(3) The Recipient shall furnish the Grant Officer the following:
(i) Interim reports every 12 months (or such longer period as
may be specified by the Grant Officer) from the date of the grant,
listing reportable items during that period, and certifying that all
reportable items have been disclosed (or that there are no such
inventions) and that the procedures required by paragraph (e)(1) of
this special condition have been followed.
(ii) A final report, within 3 months after completion of the
grant work, listing all reportable items or certifying that there
were no such reportable items, and listing all subcontracts at any
tier containing a patent rights clause or certifying that there were
no such subcontracts.
(4) The Recipient agrees, upon written request of the Grant
Officer, to furnish additional technical and other information
available to the Recipient as is necessary for the preparation of a
patent application on a subject invention and for the prosecution of
the patent application, and to execute all papers necessary to file
patent applications on subject inventions and to establish the
Government's rights in the subject inventions.
(5) The Recipient agrees, subject to FAR 27.302(j), that the
Government may duplicate and disclose subject invention disclosures
and all other reports and papers furnished or required to be
furnished pursuant to this special condition.
(f) Examination of records relating to inventions.
(1) The Grant Officer or any authorized representative shall,
until 3 years after final payment under this grant, have the right
to examine any books (including laboratory notebooks), records, and
documents of the Recipient relating to the conception or first
actual reduction to practice of inventions in the same field of
technology as the work under this grant to determine whether--
(i) Any such inventions are subject inventions;
(ii) The Recipient has established and maintained the procedures
required by paragraph (e)(1) of this special condition; and
(iii) The Recipient and its inventors have complied with the
procedures.
(2) If the Grant Officer learns of an unreported Recipient
grantee invention that the Grant Officer believes may be a subject
invention, the Recipient may be required to disclose the invention
to the agency for a determination of ownership rights.
(3) Any examination of records under this paragraph will be
subject to appropriate conditions to protect the confidentiality of
the information involved.
(g) Withholding of payment (this paragraph does not apply to
subcontracts).
(1) Any time before final payment under this grant, the Grant
Officer may, in the Government's interest, withhold payment until a
reserve not exceeding $50,000 or 5 percent of the amount of this
grant, whichever is less, shall have been set aside if, in the Grant
Officer's opinion, the Recipient fails to--
(i) Establish, maintain, and follow effective procedures for
identifying and disclosing reportable items pursuant to paragraph
(e)(1) of this special condition;
(ii) Disclose any reportable items pursuant to paragraph (e)(2)
of this special condition;
(iii) Deliver acceptable interim reports pursuant to paragraph
(e)(3)(i) of this special condition; or
(iv) Provide the information regarding subcontracts pursuant to
paragraph (h)(4) of this special condition.
(2) Such reserve or balance shall be withheld until the Grant
Officer has determined that the Recipient has rectified whatever
deficiencies exist and has delivered all reports, disclosures, and
other information required by the grant.
(3) Final payment under the grant shall not be made before the
Recipient delivers to the Grant Officer all disclosures of
reportable items required by paragraph (e)(2) of this special
condition, and an acceptable final report pursuant to paragraph
(e)(3)(ii) of this special condition.
(4) The Grant Officer may decrease or increase the sums withheld
up to the maximum authorized in paragraph (g)(1) of this special
condition. No amount shall be withheld under this paragraph while
the amount specified by this paragraph is being withheld under other
provisions of the grant. The withholding of any amount or the
subsequent payment thereof shall not be construed as a waiver of any
Government rights.
(h) Subcontracts.
(1) Unless otherwise authorized or directed by the Grant
Officer, the Recipient shall--
(i) Include the clause at NASA FAR Supplement (NFS) 1852.227-70,
New Technology, (suitably modified to identify the parties) in any
subcontract hereunder (regardless of tier) with other than a small
business firm or nonprofit organization for the performance of
experimental, developmental, or research work; and
(ii) Include the clause at FAR 52.227-11 (suitably modified to
identify the parties) in any subcontract hereunder (regardless of
tier) with a small business firm or nonprofit organization for the
performance of experimental, developmental, or research work.
(2) In the event of a refusal by a prospective subcontractor to
accept such a clause the Recipient--
(i) Shall promptly submit a written notice to the Grant Officer
setting forth the subcontractor's reasons for such refusal and other
pertinent information that may expedite disposition of the matter;
and
(ii) Shall not proceed with such subcontract without the written
authorization of the Grant Officer.
(3) In the case of subcontracts at any tier, the agency,
subcontractor, and Recipient agree that the mutual obligations of
the parties created by this special condition constitute a contract
between the subcontractor and NASA with respect to those matters
covered by this grant.
(4) The Recipient shall promptly notify the Grant Officer in
writing upon the award of any subcontract at any tier containing a
patent rights clause by identifying the subcontractor, the
applicable patent rights clause, the work to be performed under the
subcontract, and the dates of award and estimated completion. Upon
request of the Grant Officer, the Recipient shall furnish a copy of
such subcontract, and, no more frequently than annually, a listing
of the subcontracts that have been awarded.
(5) The subcontractor will retain all rights provided for the
Recipient in paragraph (h)(1)(i) or (ii) of this special condition,
whichever is included in the subcontract, and the Recipient will
not, as part of the consideration for awarding the subcontract,
obtain rights in the subcontractor's subject inventions.
(i) Preference for United States industry. Unless provided
otherwise, no Recipient that receives title to any subject invention
and no assignee of any such Recipient shall grant to any person the
exclusive right to use or sell any subject invention in the United
States unless such person agrees that any products embodying the
subject invention will be manufactured substantially in the United
States. However, in individual cases, the requirement may be waived
by the Administrator upon a showing by the Recipient or assignee
that reasonable but unsuccessful efforts have been made to grant
licenses on similar terms to potential licensees that would be
likely to manufacture substantially in the United States or that
under the circumstances domestic manufacture is not commercially
feasible.

Sec. 1260.58 Designation of new technology representative and patent
representative.

Designation of New Technology Representative and Patent Representative
(Date)

(a) For purposes of administration of the special condition of
this grant entitled ``New Technology,'' the following named
representatives are hereby designated by the Grant Officer to
administer such special condition:

[[Page 50349]]

------------------------------------------------------------------------
Address (including
Title Office code zip code)
------------------------------------------------------------------------
New Technology Representative
Patent Representative
------------------------------------------------------------------------

(b) Reports of reportable items, and disclosure of subject
inventions, interim reports, final reports, utilization reports, and
other reports required by the special condition, as well as any
correspondence with respect to such matters, should be directed to
the New Technology Representative unless transmitted in response to
correspondence or request from the Patent Representative. Inquires
or requests regarding disposition of rights, election of rights, or
related matters should be directed to the Patent Representative.
This special condition shall be included in any subcontract
hereunder requiring a ``New Technology'' provision or ``Patent
Rights--Retention by the Contractor (Short Form)'' clause, unless
otherwise authorized or directed by the Grant Officer. The
respective responsibilities and authorities of the above-named
representatives are set forth in 1827.305-370 of the NASA FAR
Supplement.

Sec. 1260.59 Choice of law.

Choice of Law (Date)

The rights and obligations of the parties to the grant (or
cooperative agreement) shall be ascertainable by recourse to the
laws of the United States of America. However, it is understood that
the laws of the recipient's country will generally apply to
recipient activities within that country.

Sec. 1260.60 Public information.

Public Information (Date)

Information regarding this grant (including a copy of this award
document) may be released by the recipient without restriction.
However, technical information relating to work performed under this
grant where there was a NASA contribution should be released by the
recipient only after consultation with the NASA Technical Officer.

Sec. 1260.61 Allocation of risk/liability.

Allocation of Risk/Liability (Date)

(a) With respect to activities undertaken under this agreement,
the recipient agrees not to make any claim against NASA or the U.S.
Government with respect to the injury or death of its employees or
its contractors and subcontractor employees, or to the loss of its
property or that of its contractors and subcontractors, whether such
injury, death, damage or loss arises through negligence or
otherwise, except in the case of willful misconduct.
(b) In addition, the recipient agrees to indemnify and hold the
U.S. Government and its contractors and subcontractors harmless from
any third party claim, judgment, or cost arising from the injury to
or death of any person, or for damage to or loss of any property,
arising as a result of its possession or use of any U.S. Government
property.

Sec. 1260.62 Payment--to foreign organizations.

Payment--To Foreign Organizations

(For grants or cooperative agreements with foreign
organizations, this clause will be developed on a case-by-case
basis.)

Sec. 1260.63 Customs clearance and visas.

Customs Clearance and Visas

(For grants or cooperative agreements with foreign
organizations, this clause will be developed on a case-by-case
basis.)

Sec. 1260.64 Taxes.

Taxes

(For grants or cooperative agreements with foreign
organizations, this clause will be developed on a case-by-case
basis.)

Sec. 1260.65 Exchange of technical data and goods.

Exchange of Technical Data and Goods

(For grants or cooperative agreements with foreign
organizations, this clause will be developed on a case-by-case
basis.)

Sec. 1260.66 Listing of reportable equipment and other property.

Listing of Reportable Equipment and Other Property (Date)

(a) Title to federally-owned property provided to the recipient
remains vested in the Federal Government, and shall be managed in
accordance with 1260.133. The following items of federally-owned
property are being provided to the recipient for use in performance
of the work under this grant or cooperative agreement:

{List property or state ``not applicable.''}

(b) The following specific items of equipment acquired by the
recipient have been identified by NASA for transfer of title to the
Government when no longer required for performance under this grant
or cooperative agreement. This equipment will be managed in
accordance with Sec. 1260.134, and shall be transferred to NASA or
NASA's designee in accordance with the procedures set forth at
Sec. 1260.134(g):

{List property or state ``not applicable.''}

Sec. 1260.67 Equipment and other property under grants with commercial
firms.

Equipment and Other Property Under Grants With Commercial Firms (Date)

(a) This grant permits acquisition of special purpose equipment
required for the conduct of research. Acquisition of special purpose
equipment costing in excess of $5,000 and not included in the
approved proposal budget requires the prior approval of the Grant
Officer unless the item is merely a different model of an item shown
in the approved proposal budget.
(b) Recipients may not purchase, as a direct cost to the grant,
items of general purpose equipment, examples of which include but
are not limited to office equipment and furnishings, air
conditioning equipment, reproduction and printing equipment, motor
vehicles, and automatic data processing equipment. If the Recipient
requests an exception, the Recipient shall submit a written request
for Grant Officer

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A99-23031. Public record. Not legal advice.