# 61 FR 43867: DoD Grant and Agreement Regulations > Federal · Regulations · In force URL: https://www.frixlaw.com/law-library/statutes/FR_PRORULE_96-20777 ## Section - **Citation:** 61 FR 43867 - **Heading:** DoD Grant and Agreement Regulations - **Jurisdiction:** Federal - **Kind:** Regulations - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Federal Register / Vol. 61 / 61 FR 43867 ## Text Proposed Rules DEPARTMENT OF DEFENSE Office of the Secretary 32 CFR Parts 21, 22, 28, 32, 33, and 34 RIN 0790-AG28 DoD Grant and Agreement Regulations AGENCY: Office of the Secretary, DoD. ACTION: Proposed rule. ----------------------------------------------------------------------- SUMMARY: The Department of Defense is taking the next step toward establishing the DoD Grant and Agreement Regulations. They are being established to satisfy a need for uniform policies and procedures for DoD Components' award and administration of grants and cooperative agreements. The Department of Defense proposes to add four new parts and to make minor amendments that update two of the four existing parts of the DoD Grant and Agreement Regulations. The four proposed new parts: address DoD Components' overall management of grant and agreement functions; set forth DoD Components' and grants officers' responsibilities related to the award and administration of grants and agreements; implement administrative requirements in OMB Circular A-110 for grants and agreements awarded to institutions of higher education and other nonprofit organizations; and establish administrative requirements for awards to commercial organizations. The proposed minor amendments to two existing parts: provide DoD-specific procedures related to Governmentwide restrictions on lobbying; and update administrative requirements for awards to State and local governments, to conform with recent changes in statutes and statutory implementation. DATES: Comments are due on or before October 25, 1996. ADDRESSES: Forward comments to ODDR&E(R), ATTN: Mark Herbst, 3080 Defense Pentagon, Washington, DC 20301-3080. FOR FURTHER INFORMATION CONTACT: Mark Herbst, (703) 614-0205. SUPPLEMENTARY INFORMATION: Steps Taken to Date To Establish the DoD Grant and Agreement Regulations rm with recent changes in statutes and statutory implementation. DATES: Comments are due on or before October 25, 1996. ADDRESSES: Forward comments to ODDR&E(R), ATTN: Mark Herbst, 3080 Defense Pentagon, Washington, DC 20301-3080. FOR FURTHER INFORMATION CONTACT: Mark Herbst, (703) 614-0205. SUPPLEMENTARY INFORMATION: Steps Taken to Date To Establish the DoD Grant and Agreement Regulations In 1992, the Department of Defense (DoD) took the first step toward establishing the DoD Grant and Agreement Regulations. At that time (see 57 FR 6199, February 21, 1992), DoD redesignated into Subchapter B of Chapter I of Title 32 of the Code of Federal Regulations three Governmentwide rules: debarment, suspension, and drug-free workplace requirements, now at 32 CFR Part 25; lobbying restrictions, now at 32 CFR Part 28; and administrative requirements for grants and cooperative agreements to State and local governments, now at 32 CFR Part 33. The Department of Defense now takes the second step toward establishing the regulations. In this second step, the Department proposes to make minor amendments to update the existing parts 28 and 33 in Subchapter B of Chapter I, and to adopt the new parts 21, 22, 32, and 34. Additional Information About Proposed Amendments to Parts 28 and 33 The proposed amendments to part 28, ``New Restrictions on Lobbying,'' would implement the DoD-specific statutory authority to waive certain restrictions. The proposed amendments to part 33, ``Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments,'' are needed to implement the Resource Conservation and Recovery Act (42 U.S.C. 6962) and statutory changes made by the Federal Acquisition Streamlining Act of 1994. Additional Information About Proposed Parts 21 and 22 o waive certain restrictions. The proposed amendments to part 33, ``Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments,'' are needed to implement the Resource Conservation and Recovery Act (42 U.S.C. 6962) and statutory changes made by the Federal Acquisition Streamlining Act of 1994. Additional Information About Proposed Parts 21 and 22 Parts 21 and 22 primarily establish internal DoD policies and procedures. Part 21 addresses DoD Components' overall management of grant and cooperative agreement functions. Part 22 outlines grants officers' and DoD Components' responsibilities related to the award and administration of grants and cooperative agreements. In addition to establishing internal policies and procedures, the proposed parts 21 and 22 implement several statutes that apply to DoD grants and agreements, including: requirements in 31 U.S.C. 6101, et seq., to report data on assistance awards and programs (implemented in subpart C, part 21); provisions of 31 U.S.C. 6301, et seq., concerning the appropriate use of grants and cooperative agreements (implemented in subpart B, part 22); and statutes concerning the use of competitive procedures, such as 10 U.S.C. 2374 (implemented in subpart C, part 22), which was enacted by the Federal Acquisition Streamlining Act of 1994. To reduce burdens on recipients, section 22.510 of the proposed part 22 allows a streamlined certification method that reduces the paperwork associated with obtaining required certifications. This is consistent with the National Performance Review's recommendation that the Government explore methods for eliminating needless paperwork by simplifying the compliance certification process, a recommendation that the Department of Defense heartily supports sed part 22 allows a streamlined certification method that reduces the paperwork associated with obtaining required certifications. This is consistent with the National Performance Review's recommendation that the Government explore methods for eliminating needless paperwork by simplifying the compliance certification process, a recommendation that the Department of Defense heartily supports. The Department expects that initiatives to increase the use of electronic commerce in agency announcements of programs, recipients' submission of proposals, and transmission of award documents, ultimately will enable even less burdensome means for obtaining required certifications than the method proposed in part 22. One section within subpart E of the proposed part 22 is reserved, because DoD intends to redesignate an existing rule into that section when part 22 is finalized. That rule, currently codified at 32 CFR Part 23, implements a law concerning military recruiters' access to university campuses. Additional Information About Proposed Part 32 The proposed part 32 specifies administrative requirements for grants and cooperative agreements with universities and other non- profit organizations. It thereby implements the Governmentwide guidance in the updated, OMB Circular A-110, ``Uniform Administrative Requirements for Grants and Agreements With Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations.'' During the comment period on the proposed part 32, and until DoD adopts a final version as its implementation of the November, 1993, version of OMB Circular A-110 [58 FR 62992], DoD Components will incorporate terms and conditions in grants and cooperative agreements to universities and other nonprofit entities that provide for recipients' administration of those awards in accordance with that updated version of the Circular. Most DoD Components' awards already do so, an interim practice that was authorized in February, 1994 rsion of OMB Circular A-110 [58 FR 62992], DoD Components will incorporate terms and conditions in grants and cooperative agreements to universities and other nonprofit entities that provide for recipients' administration of those awards in accordance with that updated version of the Circular. Most DoD Components' awards already do so, an interim practice that was authorized in February, 1994. By standardizing this interim practice within the remaining DoD Components, DoD will provide uniform requirements that parallel those of other Federal agencies, thereby alleviating unnecessary burdens on recipients. Award terms and conditions will provide for compliance with part 32 when it is finalized, superseding the interim practice. The proposed part 32 adopts the language of the updated OMB Circular, except for clarifying changes and a few changes to reduce paperwork requirements and conform the rule to recent changes in regulation and statute. None of the clarifying changes are intended to deviate from the substance in the Circular. The few other changes are as follows: In keeping with the spirit of the National Performance Review and the Circular, the proposed section 32.44 would reduce reporting and record keeping burdens on small entities. It provides that recipients that receive less than $10 million annually in contract and grant funding will not be required to have written procurement procedures. With this change, the requirements of part 32 will be more comparable to those applicable to contractors under the Federal Acquisition Regulations. The proposed part 32 deletes provisions of the Circular concerning the Cash Management Improvement Act (CMIA). The Circular language was based on the Department of Treasury's original implementation of CMIA, which applied the Act's provisions to some state universities. Subsequent to OMB's issuance of the Circular, however, the Department of Treasury amended its regulations implementing CMIA, to exclude state universities from the coverage rcular concerning the Cash Management Improvement Act (CMIA). The Circular language was based on the Department of Treasury's original implementation of CMIA, which applied the Act's provisions to some state universities. Subsequent to OMB's issuance of the Circular, however, the Department of Treasury amended its regulations implementing CMIA, to exclude state universities from the coverage. The proposed part 32 updates references to the small purchase threshold (previously $25,000) fixed at 41 U.S.C. 403(11), to reflect the simplified acquisition threshold (currently $100,000) established at 41 U.S.C. 403(11) by the Federal Acquisition Streamlining Act of 1994. The proposed section 32.25 deletes Circular language that authorizes a Federal agency to waive the requirement for recipients to obtain the agency's approval before initiating a one-time, no-cost extension of an award for a 12-month period. The language is deleted because DoD incremental funding policies are to use a given fiscal year's appropriations to support programmatic effort for specified periods (e.g., research funds usually are for effort only through the first three months of the next fiscal year). DoD Components therefore must scrutinize requests for no-cost extensions, when those extensions could lengthen by a year the period during which a given fiscal year's appropriations would be used. Additional Information About Proposed Part 34 rt programmatic effort for specified periods (e.g., research funds usually are for effort only through the first three months of the next fiscal year). DoD Components therefore must scrutinize requests for no-cost extensions, when those extensions could lengthen by a year the period during which a given fiscal year's appropriations would be used. Additional Information About Proposed Part 34 The proposed part 34 specifies administrative requirements for grants and for most cooperative agreements with commercial organizations. Consistent with the updated OMB Circular A-110, which states that ``Federal agencies may apply the provisions of this Circular to commercial organizations . . . ,'' the proposed part 34 uses the Circular as its basis. It necessarily differs from Circular A- 110 in areas (e.g., exempt property) where the Circular's provisions are specifically written for educational and nonprofit organizations. In some other areas, such as procurement standards, the proposed part 34 lessens requirements and reduces administrative burdens that otherwise would be applied to commercial organizations. Remaining Step To Establish the DoD Grant and Agreement Regulations The final major step in establishing the DoD Grant and Agreement Regulations will be to adopt one additional part on selected research agreements with commercial organizations. That part, which currently is being prepared, is intended to provide more flexible administrative requirements than those in the proposed part 34. The greater flexibility would be available for a certain class of research agreements that is designed to help integrate the defense and non- defense portions of the U.S. technology and industrial bases. Executive Order 12866 mercial organizations. That part, which currently is being prepared, is intended to provide more flexible administrative requirements than those in the proposed part 34. The greater flexibility would be available for a certain class of research agreements that is designed to help integrate the defense and non- defense portions of the U.S. technology and industrial bases. Executive Order 12866 The proposed part 32 was determined to be a ``significant regulatory action,'' as defined by Executive Order 12866, by the Administrator of OMB's Office of Information and Regulatory Affairs. The Department of Defense believes that none of the proposed rules will: (1) have an annual effect on the economy of $100 million or more or adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or State, local, or tribal governments or communities; (2) create a serious inconsistency or otherwise interfere with an action taken or planned by another agency; (3) materially alter the budgetary impact of entitlements, grants, user fees, or loan programs or the rights and obligations of recipients thereof; or (4) raise novel legal or policy issues arising out of legal mandates, the President's priorities, or the principles set forth in Executive Order 12866. Regulatory Flexibility Act of 1980 [5 U.S.C. 605(b)] These regulatory actions will not have a significant adverse impact on a substantial number of small entities. Paperwork Reduction Act of 1995 (44 U.S.C. 3500 et seq.) These regulatory actions will not impose any new reporting or recordkeeping requirements under the Paperwork Reduction Act. Reporting and recordkeeping requirements in the proposed parts 32 and 34 are those promulgated by the updated OMB Circular A-110, which the Office of Mangement and Budget proposed in August, 1992 [57 FR 39018], asking for public comments, and finalized in November, 1993 [58 FR 62992]. List of Subjects 32 CFR Part 21 reporting or recordkeeping requirements under the Paperwork Reduction Act. Reporting and recordkeeping requirements in the proposed parts 32 and 34 are those promulgated by the updated OMB Circular A-110, which the Office of Mangement and Budget proposed in August, 1992 [57 FR 39018], asking for public comments, and finalized in November, 1993 [58 FR 62992]. List of Subjects 32 CFR Part 21 Grant programs, Grants administration. 32 CFR Part 22 - Accounting, Grant programs, Grants administration, Intergovernmental relations, Reporting and recordkeeping requirements. 32 CFR Part 28 - Grant programs, Loan programs, Lobbying, Penalties, Reporting and recordkeeping requirements. 32 CFR Part 32 - Accounting, Colleges and universities, Grant programs, Grants administration, Hospitals, Nonprofit organizations, Reporting and recordkeeping requirements. 32 CFR Part 33 - Accounting, Grant programs, Grants administration, Indians, Intergovernmental relations, Reporting and recordkeeping requirements. 32 CFR Part 34 - Accounting, Business and industry, Grant programs, Grants administration, Reporting and recordkeeping requirements. Accordingly, Title 32 of the Code of Federal Regulations, Chapter I, Subchapter B, is proposed to be amended as follows. 1. The heading of Subchapter B is proposed to be revised to read as follows: SUBCHAPTER B--DoD GRANT AND AGREEMENT REGULATIONS 2. Part 21 is proposed to be added to read as follows: PART 21--DoD GRANTS AND AGREEMENTS--GENERAL MATTERS Subpart A--Defense Grant and Agreement Regulatory System Sec. 21.100 Scope. 21.105 Authority, purpose, and issuance. 21.110 Applicability and relationship to acquisition regulations. 21.115 Compliance and implementation. 21.120 Publication and maintenance. 21.125 Deviations. 21.130 Definitions. Subpart B--Authorities and Responsibilities 21.200 Purpose. 21.205 DoD Components' authorities. 21.210 Vesting and delegation of authority. 21.215 Contracting activities. 21.220 Grants officers. , purpose, and issuance. 21.110 Applicability and relationship to acquisition regulations. 21.115 Compliance and implementation. 21.120 Publication and maintenance. 21.125 Deviations. 21.130 Definitions. Subpart B--Authorities and Responsibilities 21.200 Purpose. 21.205 DoD Components' authorities. 21.210 Vesting and delegation of authority. 21.215 Contracting activities. 21.220 Grants officers. Subpart C--Grants Information 21.300 Purpose. 21.305 Defense Assistance Awards Data System. 21.310 Catalog of Federal Domestic Assistance. 21.315 Uniform grants and agreements numbering system. Authority: 5 U.S.C. 301 and 10 U.S.C. 113. Subpart A--Defense Grant and Agreement Regulatory System Sec. 21.100 Scope. The purposes of this part, which is one portion of the DoD Grant and Agreement Regulations (DoDGARs), are to: - (a) Provide general information about the DoDGARs. - (b) Set forth general policies and procedures related to DoD Components' overall management of functions related to grants and cooperative agreements. Sec. 21.105 Authority, purpose, and issuance. (a) DoD Directive 3210.6 \1\ established the Defense Grant and Agreement Regulatory System (DGARS). The directive authorized publication of policies and procedures comprising the DGARS in the DoD Grant and Agreement Regulations (DoDGARs), in DoD instructions, and in other DoD publications, as appropriate. Thus, the DoDGARs are one element of the DGARS. --------------------------------------------------------------------------- \1\ Copies may be obtained, at cost, from the National Technical Information Service, 5285 Port Royal Road, Springfield, VA 22161. Authorized users may also obtain copies from the Defense Technical Information Center, 8725 John J. Kingman Rd., Suite 0944, Fort Belvoir, VA 22060-6218. --------------------------------------------------------------------------- --------------------------------- \1\ Copies may be obtained, at cost, from the National Technical Information Service, 5285 Port Royal Road, Springfield, VA 22161. Authorized users may also obtain copies from the Defense Technical Information Center, 8725 John J. Kingman Rd., Suite 0944, Fort Belvoir, VA 22060-6218. --------------------------------------------------------------------------- (b) The purposes of the DoDGARs, in conjunction with other elements of the DGARS, are to provide uniform policies and procedures for grants and cooperative agreements awarded by DoD Components, in order to meet DoD needs for: (1) Efficient program execution, effective program oversight, and proper stewardship of Federal funds. (2) Compliance with relevant statutes; Executive orders; and applicable guidance, such as Office of Management and Budget (OMB) circulars. (3) Collection from DoD Components, retention, and dissemination of management and fiscal data related to grants and agreements. (c) The Director of Defense Research and Engineering, or his or her designee: (1) Develops and implements DGARS policies and procedures. (2) Issues and maintains the DoD Grant and Agreement Regulations and other DoD publications that comprise the DGARS. Sec. 21.110 Applicability and relationship to acquisition regulations. (a) Applicability to grants and cooperative agreements. The DoD Grant and Agreement Regulations (DoDGARs) apply to all DoD grants and cooperative agreements.- and implements DGARS policies and procedures. (2) Issues and maintains the DoD Grant and Agreement Regulations and other DoD publications that comprise the DGARS. Sec. 21.110 Applicability and relationship to acquisition regulations. (a) Applicability to grants and cooperative agreements. The DoD Grant and Agreement Regulations (DoDGARs) apply to all DoD grants and cooperative agreements.- (b) Applicability to other nonprocurement instruments. (1) In accordance with DoD Directive 3210.6, the DoDGARs may include rules that apply to other nonprocurement instruments, when specifically required in order to implement a statute, Executive order, or Governmentwide rule that applies to other nonprocurement instruments, as well as to grants and cooperative agreements. For example, the rule on nonprocurement debarment and suspension in 32 CFR part 25, subparts A through E, applies to all nonprocurement transactions, including grants, cooperative agreements, contracts of assistance, loans and loan guarantees (see definition of ``primary covered transaction'' at 32 CFR 25.110(a)(1)(i)). - (2) The following is a list of DoDGARs rules that apply not only to grants and cooperative agreements, but also to other types of nonprocurement instruments: - (i) Requirements for reporting to the Defense Assistance Award Data System, in subpart C of this part. - (ii) The rule on nonprocurement debarment and suspension in 32 CFR part 25, subparts A through E. - (iii) Drug-free workplace requirements in 32 CFR part 25, subpart F. - (iv) Restrictions on lobbying in 32 CFR part 28. - eements, but also to other types of nonprocurement instruments: - (i) Requirements for reporting to the Defense Assistance Award Data System, in subpart C of this part. - (ii) The rule on nonprocurement debarment and suspension in 32 CFR part 25, subparts A through E. - (iii) Drug-free workplace requirements in 32 CFR part 25, subpart F. - (iv) Restrictions on lobbying in 32 CFR part 28. - (v) Administrative requirements for grants, cooperative agreements, and other financial assistance to: - (A) Universities and other nonprofit organizations, in 32 CFR part 32. - (B) State and local governments, in 32 CFR part 33. - (3) Grants officers should be aware that each rule that applies to other types of nonprocurement instruments (i.e., other than grants and cooperative agreements) states its applicability to such instruments. However, grants officers must exercise caution when determining the applicability of some Governmentwide rules that are included in the DoDGARs, because a term may be defined differently in a Governmentwide rule than it is defined elsewhere in the DoDGARs. For example, the Governmentwide implementation of the Drug-Free Workplace Act of 1988 (32 CFR part 25, subpart F) states that it applies to grants, but defines ``grants'' to include cooperative agreements and other forms of financial assistance. - (c) Relationship to acquisition regulations. The Federal Acquisition Regulation (FAR) (48 CFR parts 1-53), the Defense Federal Acquisition Regulation Supplement (DFARS) (48 CFR parts 201-270), and DoD Component supplements to the FAR and DFARS apply to DoD Components' procurement contracts used to acquire goods and services for the direct benefit or use of the Federal Government. Policies and procedures in the FAR and DFARS do not apply to grants, cooperative agreements, or other nonprocurement transactions unless the DoDGARs specify that they apply. Sec. 21.115 Compliance and implementation. - ent supplements to the FAR and DFARS apply to DoD Components' procurement contracts used to acquire goods and services for the direct benefit or use of the Federal Government. Policies and procedures in the FAR and DFARS do not apply to grants, cooperative agreements, or other nonprocurement transactions unless the DoDGARs specify that they apply. Sec. 21.115 Compliance and implementation. - The Head of each DoD Component that awards or administers grants and cooperative agreements, or his or her designee: - (a) Is responsible for ensuring compliance with the DoDGARs within that DoD Component. - (b) May authorize the issuance of regulations, procedures, or instructions that are necessary to implement DGARS policies and procedures within the DoD Component, or to supplement the DoDGARs to satisfy needs that are specific to the DoD Component, as long as such regulations, procedures, or instructions do not impose additional costs or administrative burdens on recipients or potential recipients. Heads of DoD Components or their designees shall establish policies and procedures in areas where uniform policies and procedures throughout the DoD Component are required, such as for: - (1) Requesting class deviations from the DoDGARs (see Sec. 21.125) or exemptions from the provisions of 31 U.S.C. 6301 et seq., that govern the appropriate use of contracts, grants, and cooperative agreements (see 32 CFR 22.220). - (2) Designating one or more Grant Appeal Authorities to resolve claims, disputes, and appeals (see 32 CFR 22.815). - (3) Reporting data on assistance awards and programs, as required by 31 U.S.C. chapter 61 (see subpart C of this part). - (4) Prescribing requirements for use and disposition of real property acquired under awards, if the DoD Component makes any awards to institutions of higher education or to other nonprofit organizations under which real property is acquired in whole or in part with Federal funds (see 32 CFR 32.32). Sec. 21.120 Publication and maintenance. - 1 U.S.C. chapter 61 (see subpart C of this part). - (4) Prescribing requirements for use and disposition of real property acquired under awards, if the DoD Component makes any awards to institutions of higher education or to other nonprofit organizations under which real property is acquired in whole or in part with Federal funds (see 32 CFR 32.32). Sec. 21.120 Publication and maintenance. - (a) The DoDGARs are published as Chapter I, Subchapter B, Title 32 of the Code of Federal Regulations (CFR) and in a separate loose-leaf edition. The loose-leaf edition is divided into parts, subparts, and sections, to parallel the CFR publication. Cross-references within the DoDGARs are stated as CFR citations (e.g., a reference to section 21.115 in part 21 would be to 32 CFR 21.115). - (b) Updates to the DoDGARs are published in the Federal Register. When finalized, updates also are published as Defense Grant and Agreement Circulars, with revised pages for the separate, loose-leaf edition. - (c) Revisions to the DoDGARs are recommended to the Director of Defense Research and Engineering (DDR&E) by a standing working group. The DDR&E, Director of Defense Procurement, and each Military Department shall be represented on the working group. Other DoD Components that use grants or cooperative agreements may also nominate representatives. The working group meets when necessary. Sec. 21.125 Deviations. (a) The Head of the DoD Component or his or her designee may authorize individual deviations from the DoDGARs, which are deviations that affect only one grant or agreement, if such deviations are not prohibited by statute, executive order or regulation. (b) Class deviations that affect more than one grant or agreement must be approved in advance by the Director, Defense Research and Engineering (DDR&E) or his or her designee. Note that OMB concurrence also is required for deviations from two parts of the DoDGARs, 32 CFR parts 32 and 33, in accordance with 32 CFR 32.4 and 33.6, respectively. ohibited by statute, executive order or regulation. (b) Class deviations that affect more than one grant or agreement must be approved in advance by the Director, Defense Research and Engineering (DDR&E) or his or her designee. Note that OMB concurrence also is required for deviations from two parts of the DoDGARs, 32 CFR parts 32 and 33, in accordance with 32 CFR 32.4 and 33.6, respectively. (c) Copies of justifications and agency approvals for individual deviations and written requests for class deviations shall be submitted to:--Deputy Director, Defense Research and Engineering, ATTN: Research, 3080 Defense Pentagon, Washington D.C. 20301-3080. (d) Copies of requests and approvals for individual and class deviations shall be maintained in award files. Sec. 21.130 Definitions. Acquisition. The acquiring (by purchase, lease, or barter) of property or services for the direct benefit or use of the United States Government (see more detailed definition at 48 CFR 2.101). In accordance with 31 U.S.C. 6303, procurement contracts are the appropriate legal instruments for acquiring such property or services. Assistance. The transfer of a thing of value to a recipient to carry out a public purpose of support or stimulation authorized by a law of the United States (see 31 U.S.C. 6101(3)). Grants and cooperative agreements are examples of legal instruments used to provide assistance. Contract. See the definition for procurement contract in this section. Contracting activity. An activity to which the Head of a DoD Component has delegated broad authority regarding acquisition functions, pursuant to 48 CFR 1.601. Contracting officer. A person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. A more detailed definition of the term appears at 48 CFR 2.101. Cooperative agreement. A legal instrument which, consistent with 31 U.S.C a DoD Component has delegated broad authority regarding acquisition functions, pursuant to 48 CFR 1.601. Contracting officer. A person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. A more detailed definition of the term appears at 48 CFR 2.101. Cooperative agreement. A legal instrument which, consistent with 31 U.S.C. 6305, is used to enter into the same kind of relationship as a grant (see definition ``grant''), except that substantial involvement is expected between the Department of Defense and the recipient when carrying out the activity contemplated by the cooperative agreement. The term does not include ``cooperative research and development agreements'' as defined in 15 U.S.C. 3710a. Deviation. The issuance or use of a policy or procedure that is inconsistent with the DoDGARs. DoD Components. The Office of the Secretary of Defense, the Military Departments, the Defense Agencies, and DoD Field Activities. Grant. A legal instrument which, consistent with 31 U.S.C. 6304, is used to enter into a relationship: (1) The principal purpose of which is to transfer a thing of value to the recipient to carry out a public purpose of support or stimulation authorized by a law of the United States, rather than to acquire property or services for the Department of Defense's direct benefit or use. (2) In which substantial involvement is not expected between the Department of Defense and the recipient when carrying out the activity contemplated by the grant. Grants officer. An official with the authority to enter into, administer, and/or terminate grants or cooperative agreements. Nonprocurement instrument. A legal instrument other than a procurement contract. Examples include instruments of financial assistance, such as grants or cooperative agreements, and those of technical assistance, which provide services in lieu of money. Procurement contract. A legal instrument which, consistent with 31 U.S.C nto, administer, and/or terminate grants or cooperative agreements. Nonprocurement instrument. A legal instrument other than a procurement contract. Examples include instruments of financial assistance, such as grants or cooperative agreements, and those of technical assistance, which provide services in lieu of money. Procurement contract. A legal instrument which, consistent with 31 U.S.C. 6303, reflects a relationship between the Federal Government and a State, a local government, or other person when the principal purpose of the instrument is to acquire property or services for the direct benefit or use of the Federal Government. See the more detailed definition for contract at 48 CFR 2.101. Recipient. An organization or other entity receiving a grant or cooperative agreement from a DoD Component. Subpart B--Authorities and Responsibilities Sec. 21.200 Purpose. This subpart describes the sources and flow of authority to use grants and cooperative agreements, and assigns the broad responsibilities associated with DoD Components' use of such instruments. Sec. 21.205 DoD Components' authorities. (a) In accordance with 31 U.S.C. 6301 et seq., DoD Components shall use grants and cooperative agreements as legal instruments reflecting assistance relationships between the United States Government and recipients. (b) Unlike the use of procurement contracts (for which Federal agencies have inherent, Constitutional authority), use of grants or cooperative agreements requires specific statutory authority. DoD Components may award grants and cooperative agreements under a number of statutory authorities that fall into three categories: ce relationships between the United States Government and recipients. (b) Unlike the use of procurement contracts (for which Federal agencies have inherent, Constitutional authority), use of grants or cooperative agreements requires specific statutory authority. DoD Components may award grants and cooperative agreements under a number of statutory authorities that fall into three categories: (1) Authorities that statutes provide to the Secretary of Defense. These authorities generally are delegated by the Secretary of Defense to Heads of DoD Components, usually through DoD directives, instructions, or policy memoranda that are not part of the Defense Grant and Agreement Regulatory System. Examples of statutory authorities in this category are: (i) Authority under 10 U.S.C. 2391 to make grants or conclude cooperative agreements to assist State and local governments in planning and carrying out community adjustments and economic diversification required by changes in military installations or in DoD contracts or spending that may have a direct and significant adverse consequence on the affected community. (ii) Authority under 10 U.S.C. 2413 to enter into cooperative agreements with entities that furnish procurement technical assistance to businesses. (2) Authorities that statutes may provide directly to Heads of DoD Components. For example, 10 U.S.C. 2358 authorizes the Secretaries of the Military Departments, in addition to the Secretary of Defense, to perform research and development projects through grants and cooperative agreements. A Military Department's use of the authority of 10 U.S.C. 2358 therefore requires no delegation by the Secretary of Defense. (3) Authorities that arise indirectly as the result of statute. For example, authority to use a grant or cooperative agreement may result from: ddition to the Secretary of Defense, to perform research and development projects through grants and cooperative agreements. A Military Department's use of the authority of 10 U.S.C. 2358 therefore requires no delegation by the Secretary of Defense. (3) Authorities that arise indirectly as the result of statute. For example, authority to use a grant or cooperative agreement may result from: (i) A federal statute authorizing a program that is consistent with an assistance relationship (i.e., the support or stimulation of a public purpose, rather than the acquisition of a good or service for the direct benefit of the Department of Defense). In accordance with 31 U.S.C. chapter 63, such a program would appropriately be carried out through the use of grants or cooperative agreements. (ii) Exemptions requested by the Department of Defense and granted by the Office of Management and Budget under 31 U.S.C. 6307, as described in 32 CFR 22.220. Sec. 21.210 Vesting and delegation of authority. (a) The authority and responsibility for awarding grants and cooperative agreements is vested in the Head of each DoD Component that has such authority. (b) The Head of each such DoD Component, or his or her designee, may delegate to the heads of contracting activities (HCAs) within that Component, authority to award grants or cooperative agreements, to appoint grants officers (see Sec. 21.220(c)), and to broadly manage the DoD Component's functions related to grants and agreements. An HCA is the same official (or officials) designated as the head of the contracting activity for procurement contracts, as defined at 48 CFR 2.101--the intent is that overall management responsibilities for a DoD Component's functions related to nonprocurement instruments be assigned only to officials that have similar responsibilities for procurement contracts. Sec. 21.215 Contracting activities. s the same official (or officials) designated as the head of the contracting activity for procurement contracts, as defined at 48 CFR 2.101--the intent is that overall management responsibilities for a DoD Component's functions related to nonprocurement instruments be assigned only to officials that have similar responsibilities for procurement contracts. Sec. 21.215 Contracting activities. When designated by the Head of the DoD Component or his or her designee (see 32 CFR 22.210(b)), the HCA is responsible for the grants and cooperative agreements made by or assigned to that activity. He or she shall supervise and establish internal policies and procedures for that activity's assistance awards. Sec. 21.220 Grants officers. - (a) Authority. Only grants officers are authorized to sign grants or cooperative agreements, or to administer or terminate such legal instruments on behalf of the Department of Defense. Grants officers may bind the Government only to the extent of the authority delegated to them. - (b) Responsibilities. Grants officers should be allowed wide latitude to exercise judgment in performing their responsibilities. Grants officers are responsible for ensuring that: -- (1) Individual grants and cooperative agreements are used effectively in the execution of DoD programs, and are awarded and administered in accordance with applicable laws, Executive orders, regulations, and DoD policies. -- (2) Sufficient funds are available for obligation. -- (3) Recipients of grants and cooperative agreements receive impartial, fair, and equitable treatment. - g that: -- (1) Individual grants and cooperative agreements are used effectively in the execution of DoD programs, and are awarded and administered in accordance with applicable laws, Executive orders, regulations, and DoD policies. -- (2) Sufficient funds are available for obligation. -- (3) Recipients of grants and cooperative agreements receive impartial, fair, and equitable treatment. - (c) Selection, appointment and termination of appointment of grants officers. Each DoD Component that awards grants or enters into cooperative agreements shall have a formal process (see Sec. 21.210(b)) to select and appoint grants officers and terminate their appointments. DoD Components are not required to maintain a selection process for grants officers separate from the selection process for contracting officers, and written statements of appointment or termination for grants officers may be integrated into the necessary documentation for contracting officers, as appropriate. -- (1) Selection. In selecting grants officers, appointing officials shall consider the complexity and dollar value of the grants and agreements to be assigned and judge whether candidates possess the necessary experience, training, education, business acumen, judgment, and knowledge of contracts and assistance instruments to function effectively as grants officers. -- (2) Appointment. Statements of appointment shall be in writing and shall clearly state the limits of grants officers' authority, other than limits contained in applicable laws or regulations. Information on the limits of a grants officer's authority shall be readily available to the public and agency personnel. -- acts and assistance instruments to function effectively as grants officers. -- (2) Appointment. Statements of appointment shall be in writing and shall clearly state the limits of grants officers' authority, other than limits contained in applicable laws or regulations. Information on the limits of a grants officer's authority shall be readily available to the public and agency personnel. -- (3) Termination. Written statements of termination are required, unless the written statement of appointment provides for automatic termination. No termination shall be retroactive. Subpart C--Grants Information Sec. 21.300 Purpose. - This subpart prescribes policies and procedures for compiling and reporting data related to grants, cooperative agreements, and other nonprocurement instruments subject to information reporting requirements of 31 U.S.C. chapter 61. Sec. 21.305 Defense Assistance Awards Data System. - (a) Purposes of the system. Data from the Defense Assistance Awards Data System (DAADS) are used to provide: -- (1) DoD inputs to meet statutory requirements for Federal Governmentwide reporting of data related to obligations of funds by grant, cooperative agreement, or other nonprocurement instrument. -- (2) A basis for meeting Governmentwide requirements to report to the Federal Assistance Awards Data System maintained by the Department of Commerce and for preparing other recurring and special reports to the President, the Congress, the General Accounting Office, and the public. -- (3) Information to support policy formulation and implementation and to meet management oversight requirements related to the use of grants, cooperative agreements, and other nonprocurement instruments. - Data System maintained by the Department of Commerce and for preparing other recurring and special reports to the President, the Congress, the General Accounting Office, and the public. -- (3) Information to support policy formulation and implementation and to meet management oversight requirements related to the use of grants, cooperative agreements, and other nonprocurement instruments. - (b) Responsibilities. (1) The Deputy Director, Defense Research and Engineering (DDDR&E), or his or her designee, shall issue the manual described in paragraph (b)(2)(ii) of this section. -- (2) The Director for Information Operations and Reports, Washington Headquarters Services (DIOR, WHS) shall, consistent with guidance issued by the DDDR&E:---- (i) Process DAADS information on a quarterly basis and prepare recurring and special reports using such information. ---- (ii) Prepare, update, and disseminate ``Department of Defense Assistance Awards Data System,'' an instruction manual for reporting information to DAADS. The manual, which shall be issued by the office of the DDR&E, shall specify procedures, formats, and editing processes to be used by DoD Components, including magnetic tape layout and error correction schedules. -- (3) The following offices shall serve as central points for collecting DAADS information from contracting activities within the DoD Components: ---- (i) For the Army: As directed by the U.S. Army Contracting Support Agency. ---- (ii) For the Navy: As directed by the Office of Naval Research. --- - (iii) For the Air Force: As directed by SAF/AQCP. ---- (iv) For the Office of the Secretary of Defense, Defense Agencies, and DoD Field Activities: Each Defense Agency shall identify a central point for collecting and reporting DAADS information to the DIOR, WHS, at the address given in paragraph (c)(2) of this section. DIOR, WHS shall serve as the central point for offices and activities within the Office of the Secretary of Defense and for DoD Field Activities. -- of the Secretary of Defense, Defense Agencies, and DoD Field Activities: Each Defense Agency shall identify a central point for collecting and reporting DAADS information to the DIOR, WHS, at the address given in paragraph (c)(2) of this section. DIOR, WHS shall serve as the central point for offices and activities within the Office of the Secretary of Defense and for DoD Field Activities. -- (4) The office that serves, in accordance with paragraph (b)(3) of this section, as the central point for collecting DAADS information from contracting activities within each DoD Component shall: ---- (i) Establish internal procedures to ensure reporting by contracting activities that use grants, cooperative agreements or other nonprocurement instruments subject to 31 U.S.C. chapter 61. ---- (ii Collect information required by DD Form 2566, ``DoD Assistance Award Action Report,'' from those contracting activities, and report it to DIOR, WHS, in accordance with paragraph (d) of this section. ---- (iii) Submit to the DDDR&E, at the address given in Sec. 21.125(c), any recommended changes to the DAADS or to the instruction manual described in paragraph (b)(2)(ii) of this section. - (c) Reporting procedures. The data required by the DD Form 2566 shall be: -- (1) Collected for each individual grant, cooperative agreement, or other nonprocurement action that is subject to 31 U.S.C. chapter 61 and involves the obligation or deobligation of Federal funds. Each action is reported as an obligation under a specific program listed in the Catalog of Federal Domestic Assistance (CFDA, see Sec. 21.310). The program to be shown is the one that provided the funds being obligated (i.e., if a grants officer in one DoD Component obligates appropriations of another DoD Component's program, the grants officer would show the CFDA program of the second DoD Component on the DD Form 2566). -- igation under a specific program listed in the Catalog of Federal Domestic Assistance (CFDA, see Sec. 21.310). The program to be shown is the one that provided the funds being obligated (i.e., if a grants officer in one DoD Component obligates appropriations of another DoD Component's program, the grants officer would show the CFDA program of the second DoD Component on the DD Form 2566). -- (2) Reported on a quarterly basis to DIOR, WHS by the offices that are designated pursuant to paragraph (b)(3) of this section. For the first three quarters of the Federal fiscal year, the data are due by close-of-business (COB) on the 15th day after the end of the quarter (i.e., first-quarter data are due by COB on January 15th, second- quarter data by COB April 15th, and third-quarter data by COB July 15th). Fourth-quarter data are due by COB October 25th, the 25th day after the end of the quarter. If any due date falls on a weekend or holiday, the data are due on the next regular workday. The mailing address for DIOR, WHS is 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302. -- (3) Reported on a computer tape, floppy diskette or by other means permitted by the instruction manual described in paragraph (b)(2)(ii) of this section. The data shall be reported in the format specified in the instruction manual. - (d) Report control symbol. DoD Components' reporting of DAADS data is used by DoD to satisfy Governmentwide requirements to report to the Federal Assistance Awards Data System, which is assigned Interagency Report Control Number 0252-DOC-QU. Sec. 21.310 Catalog of Federal Domestic Assistance. i) of this section. The data shall be reported in the format specified in the instruction manual. - (d) Report control symbol. DoD Components' reporting of DAADS data is used by DoD to satisfy Governmentwide requirements to report to the Federal Assistance Awards Data System, which is assigned Interagency Report Control Number 0252-DOC-QU. Sec. 21.310 Catalog of Federal Domestic Assistance. (a) Purpose and scope of the reporting requirement. (1) Under the Federal Program Information Act (31 U.S.C. 6101 et seq.), as implemented through OMB Circular A-89,\2\ the Department of Defense is required to provide certain information about its domestic assistance programs to OMB and the General Services Administration (GSA). GSA makes this information available to the public by publishing it in the Catalog of Federal Domestic Assistance (CFDA) and maintaining the Federal Assistance Programs Retrieval System, a computerized data base of the information. --------------------------------------------------------------------------- \2\ Contact the Office of Management and Budget, EOP Publications, 725 17th St. N.W., New Executive Office Building, Washington, D.C. 20503. --------------------------------------------------------------------------- (2) The CFDA covers all domestic assistance programs and activities, regardless of the number of awards made under the program, the total dollar value of assistance provided, or the duration. In addition to programs using grants and cooperative agreements, covered programs include those providing assistance in other forms, such as payments in lieu of taxes or indirect assistance resulting from Federal operations. (b) Responsibilities. (1) Each DoD Component that provides domestic financial assistance shall: program, the total dollar value of assistance provided, or the duration. In addition to programs using grants and cooperative agreements, covered programs include those providing assistance in other forms, such as payments in lieu of taxes or indirect assistance resulting from Federal operations. (b) Responsibilities. (1) Each DoD Component that provides domestic financial assistance shall: (i) Report to the Director for Information Operations and Reports, Washington Headquarters Services (DIOR, WHS) all new programs and changes as they occur, or as DIOR, WHS requests annual updates to existing CFDA information. (ii) Identify to the DIOR, WHS a point-of-contact who will be responsible for reporting such program information and for responding to inquiries related to it. (2) The DIOR, WHS shall act as the Department of Defense's single office for collecting, compiling and reporting such program information to OMB and GSA. Sec. 21.315 Uniform grants and agreements numbering system. DoD Components shall assign identifying numbers to all nonprocurement instruments subject to this subpart, including grants and cooperative agreements. The numbering system parallels the procurement instrument identification (PII) numbering system specified in 48 CFR 204.70 (in the ``Defense Federal Acquisition Regulation Supplement''), as follows: (a) The first six alphanumeric characters of the assigned number shall be identical to those specified by 48 CFR 204.7003(a)(1) to identify the DoD Component and contracting activity. (b) The seventh and eighth positions shall be the last two digits of the fiscal year in which the number is assigned to the grant, cooperative agreement, or other nonprocurement instrument. (c) The 9th position shall be a number: ``1'' for grants; ``2'' for cooperative agreements; and ``3'' for other nonprocurement instruments. 03(a)(1) to identify the DoD Component and contracting activity. (b) The seventh and eighth positions shall be the last two digits of the fiscal year in which the number is assigned to the grant, cooperative agreement, or other nonprocurement instrument. (c) The 9th position shall be a number: ``1'' for grants; ``2'' for cooperative agreements; and ``3'' for other nonprocurement instruments. (d) The 10th through 13th positions shall be the serial number of the instrument. DoD Components and contracting activities need not follow any specific pattern in assigning these numbers and may create multiple series of letters and numbers to meet internal needs for distinguishing between various sets of awards. 3. Part 22 is proposed to be added to read as follows: PART 22--DoD GRANTS AND AGREEMENTS--AWARD AND ADMINISTRATION Subpart A--General Sec. 22.100 Purpose, relation to other parts, and organization. 22.105 Definitions. Subpart B--Selecting the Appropriate Instrument 22.200 Purpose. 22.205 Distinguishing assistance from procurement. 22.210 Authority for providing assistance. 22.215 Distinguishing grants and cooperative agreements. 22.220 Exemptions. Subpart C--Competition 22.300 Purpose. 22.305 General policy and requirement for competition. 22.310 Statutes concerning certain research, development, and facilities construction grants. 22.315 Merit-based, competitive procedures. 22.320 Special competitions. Subpart D--Recipient Qualification Matters--General Policies and Procedures 22.400 Purpose. 22.405 Policy. 22.410 Grants officers' responsibilities. 22.415 Standards. 22.420 Pre-award procedures. Subpart E--National Policy Matters 22.505 Purpose. 22.510 Certifications, representations, and assurances. 22.515 Provisions of annual appropriations acts. 22.520 Military recruiting on campus. [Reserved] 22.525 Paperwork Reduction Act. 22.530 Metric system of measurement. Subpart F--Award 22.600 Purpose. 22.605 Grants officers' responsibilities. 22.610 Award instruments. Pre-award procedures. Subpart E--National Policy Matters 22.505 Purpose. 22.510 Certifications, representations, and assurances. 22.515 Provisions of annual appropriations acts. 22.520 Military recruiting on campus. [Reserved] 22.525 Paperwork Reduction Act. 22.530 Metric system of measurement. Subpart F--Award 22.600 Purpose. 22.605 Grants officers' responsibilities. 22.610 Award instruments. Subpart G--Field Administration 22.700 Purpose. 22.705 Policy. 22.710 Assignment of grants administration offices. 22.715 Grants administration office functions. Subpart H--Post-Award Administration 22.800 Purpose and relation to other parts. 22.805 Post-award requirements in other parts. 22.810 Payments. 22.815 Claims, disputes, and appeals. 22.820 Debt collection. 22.825 Closeout audits. Appendix A to Part 22--Suggested Proposal Provision for Required Certifications Appendix B to Part 22--Suggested Award Provisions for National Policy Requirements That Often Apply Appendix C to Part 22--Administrative Requirements and Issues To Be Addressed in Award Terms and Conditions Authority: 5 U.S.C. 301 and 10 U.S.C. 113. Subpart A--General Sec. 22.100 Purpose, relation to other parts, and organization. (a) This part outlines grants officers' and DoD Components' responsibilities related to the award and administration of grants and cooperative agreements. (b) In doing so, it also supplements other parts of the DoD Grant and Agreement Regulations (DoDGARs) that are either Governmentwide rules or DoD implementation of Governmentwide guidance in Office of Management and Budget (OMB) Circulars. Those other parts of the DoDGARs, which are referenced as appropriate in this part, are: (1) Governmentwide rules on debarment, suspension and drug-free workplace requirements, in 32 CFR part 25. (2) The Governmentwide rule on lobbying restrictions, in 32 CFR part 28. (3) Administrative requirements for grants and agreements awarded to specific types of recipients: d Budget (OMB) Circulars. Those other parts of the DoDGARs, which are referenced as appropriate in this part, are: (1) Governmentwide rules on debarment, suspension and drug-free workplace requirements, in 32 CFR part 25. (2) The Governmentwide rule on lobbying restrictions, in 32 CFR part 28. (3) Administrative requirements for grants and agreements awarded to specific types of recipients: (i) For State and local governmental organizations, in the Governmentwide rule at 32 CFR part 33. (ii) For institutions of higher education and other nonprofit organizations, at 32 CFR part 32. (iii) For commercial organizations, at 32 CFR part 34. (c)-The organization of this part parallels the award and administration process, from pre-award through post-award matters. It therefore is organized in the same manner as the parts of the DoDGARs (32 CFR parts 32, 33, and 34) that prescribe administrative requirements for specific types of recipients. Sec. 22.105 Definitions. Other than the terms defined in this section, terms used in this part are defined in 32 CFR 21.130. Administrative offset. An action whereby money payable by the United States Government to, or held by the Government for, a recipient is withheld to satisfy a delinquent debt the recipient owes the Government. Advanced research. Advanced technology development that creates new technology or demonstrates the viability of applying existing technology to new products and processes in a general way. Advanced research is most closely analogous to precompetitive technology development in the commercial sector (i.e., early phases of research and development on which commercial competitors are willing to collaborate, because the work is not so coupled to specific products and processes that the results of the work must be proprietary). It does not include development of military systems and hardware where specific requirements have been defined titive technology development in the commercial sector (i.e., early phases of research and development on which commercial competitors are willing to collaborate, because the work is not so coupled to specific products and processes that the results of the work must be proprietary). It does not include development of military systems and hardware where specific requirements have been defined. It is typically funded in Budget Activity 3 (6.3, Advanced Development, which formerly was category ``6.3A,'' Advanced Technology Development), within Research, Development, Test and Evaluation (RDT&E). Applied research. Efforts that attempt to determine and exploit the potential of scientific discoveries or improvements in technology such as new materials, devices, methods and processes. It typically is funded within Budget Activity 2 (6.2, Exploratory Development) within Research, Development, Test and Evaluation (RDT&E). Applied research normally follows basic research but may not be fully distinguishable from the related basic research. The term does not include efforts whose principal aim is the design, development, or testing of specific products, systems or processes to be considered for sale or acquisition; these efforts are within the definition of ``development.'' Basic research. Efforts directed toward increasing knowledge and understanding in science and engineering, rather than the practical application of that knowledge and understanding. It typically is funded within Budget Activity 1 (6.1, Basic Research) within Research, Development, Test and Evaluation (RDT&E). For the purposes of this part, basic research includes: (1) Research-related, science and engineering education, including graduate fellowships and research traineeships. ce and engineering, rather than the practical application of that knowledge and understanding. It typically is funded within Budget Activity 1 (6.1, Basic Research) within Research, Development, Test and Evaluation (RDT&E). For the purposes of this part, basic research includes: (1) Research-related, science and engineering education, including graduate fellowships and research traineeships. (2) Research instrumentation and other activities designed to enhance the infrastructure for science and engineering research. Claim. A written demand or written assertion by one of the parties to a grant or cooperative agreement seeking as a matter of right, the payment of money in a sum certain, the adjustment or interpretation of award terms, or other relief arising under or relating to a grant or cooperative agreement. A routine request for payment that is not in dispute when submitted is not a claim. The submission may be converted to a claim by written notice to the grants officer if it is disputed either as to liability or amount, or is not acted upon in a reasonable time. Debt. Any amount of money or any property owed to a Federal Agency by any person, organization, or entity except another United States Federal agency. Debts include any amounts due from insured or guaranteed loans, fees, leases, rents, royalties, services, sales of real or personal property, or overpayments, penalties, damages, interest, fines and forfeitures, and all other claims and similar sources. Amounts due a nonappropriated fund instrumentality are not debts owed the United States, for the purposes of this subchapter. Delinquent debt. A debt: (1) That the debtor fails to pay by the date specified in the initial written notice from the agency owed the debt, normally within 30 days, unless the debtor makes satisfactory payment arrangements with the agency by that date; and sources. Amounts due a nonappropriated fund instrumentality are not debts owed the United States, for the purposes of this subchapter. Delinquent debt. A debt: (1) That the debtor fails to pay by the date specified in the initial written notice from the agency owed the debt, normally within 30 days, unless the debtor makes satisfactory payment arrangements with the agency by that date; and (2) With respect to which the debtor has elected not to exercise any available appeals or has exhausted all agency appeal processes. Development. The systematic use of scientific and technical knowledge in the design, development, testing, or evaluation of potential new products, processes, or services to meet specific performance requirements or objectives. It includes the functions of design engineering, prototyping, and engineering testing. Electronic commerce. A wide range of functions related to grants and cooperative agreements which are performed using data communications techniques. Electronic data interchange. The exchange of standardized information communicated electronically between business partners, typically between computers. It is DoD policy that DoD Component EDI applications conform to the American National Standards Institute (ANSI), Accredited Standards Committee (ASC) X-12 standard.\1\ --------------------------------------------------------------------------- \1\ Available from Accredited Standards Committee, X-12 Secretariat, Data Interchange Standards Association, 1800 Diagonal Road, Suite 355, Alexandria, VA 22314-2852; Attention: Manager Maintenance and Publications. --------------------------------------------------------------------------- tee (ASC) X-12 standard.\1\ --------------------------------------------------------------------------- \1\ Available from Accredited Standards Committee, X-12 Secretariat, Data Interchange Standards Association, 1800 Diagonal Road, Suite 355, Alexandria, VA 22314-2852; Attention: Manager Maintenance and Publications. --------------------------------------------------------------------------- Electronic funds transfer. A system that provides the authority to debit or credit accounts in financial institutions by electronic means rather than source documents (e.g., paper checks). Processing typically occurs through the Federal Reserve System and/or the Automated Clearing House (ACH) computer network. It is DoD policy that DoD Component EFT transmissions conform to the American National Standards Institute (ANSI), Accredited Standards Committee (ASC) X-12 standard. Historically Black colleges and universities. Institutions of higher education determined by the Secretary of Education to meet the requirements of 34 CFR 608.2. Each DoD Component's contracting activities and grants officers may obtain a list of historically Black colleges and universities from that DoD Component's Small and Disadvantaged Business Utilization office. Institution of higher education. An educational institution that meets the criteria in section 1201(a) of the Higher Education Act of 1965 (20 U.S.C. 1141(a)). Minority institutions. Institutions of higher education that meet the criteria for minority institutions specified in 10 U.S.C. 2323. Each DoD Component's contracting activities and grants officers may obtain copies of a current list of institutions that qualify as minority institutions under 10 U.S.C. 2323 from that DoD Component's Small and Disadvantaged Business Utilization office (the list of minority institutions changes periodically, based on Department of Education data on institutions' enrollments of minority students). Research nent's contracting activities and grants officers may obtain copies of a current list of institutions that qualify as minority institutions under 10 U.S.C. 2323 from that DoD Component's Small and Disadvantaged Business Utilization office (the list of minority institutions changes periodically, based on Department of Education data on institutions' enrollments of minority students). Research. Basic, applied, and advanced research, as defined in this section. Subaward. An award of financial assistance in the form of money, or property in lieu of money, made under a DoD grant or cooperative agreement by a recipient to an eligible subrecipient. The term includes financial assistance for substantive program performance by the subrecipient of a portion of the program for which the DoD grant or cooperative agreement was made. It does not include the recipient's procurement of goods and services needed to carry out the program. Subpart B--Selecting the Appropriate Instrument Sec. 22.200 Purpose. This subpart provides the bases for determining the appropriate type of instrument in a given situation. Sec. 22.205 Distinguishing assistance from procurement. Before using a grant or cooperative agreement, the grants officer shall make a positive judgment that an assistance instrument, rather than a procurement contract, is the appropriate instrument, based on the following: (a) Purpose. (1) The grants officer must judge that the principal purpose of the activity to be carried out under the instrument is to stimulate or support a public purpose (i.e., to provide assistance), rather than acquisition (i.e., to acquire goods and services for the direct benefit of the United States Government). If the principal purpose is acquisition, then the grants officer shall judge that a procurement contract is the appropriate instrument, in accordance with 31 U.S.C. chapter 63 (``Using Procurement Contracts and Grant and Cooperative Agreements'') i.e., to provide assistance), rather than acquisition (i.e., to acquire goods and services for the direct benefit of the United States Government). If the principal purpose is acquisition, then the grants officer shall judge that a procurement contract is the appropriate instrument, in accordance with 31 U.S.C. chapter 63 (``Using Procurement Contracts and Grant and Cooperative Agreements''). Assistance instruments shall not be used in such situations, except: (i) When a statute specifically provides otherwise; or (ii) When an exemption is granted, in accordance with Sec. 22.220. (2) For research and development, the appropriate use of grants and cooperative agreements therefore is almost exclusively limited to the performance of selected basic, applied, and advanced research projects. Development projects nearly always shall be performed by contract because their principal purpose is the acquisition of specific deliverable items (e.g., prototypes or other hardware) for the benefit of the Department of Defense. (b) Fee or profit. Payment of fee or profit is consistent with an activity whose principal purpose is the acquisition of goods and services for the direct benefit or use of the United States Government, rather than an activity whose principal purpose is assistance. Therefore, the grants officer shall use a procurement contract, rather than an assistance instrument, in all cases where: (1) Fee or profit is to be paid to the recipient of the instrument; or (2) The instrument is to be used to carry out a program where fee or profit is necessary to achieving program objectives. Sec. 22.210 Authority for providing assistance. (a) Before a grant or cooperative agreement may be used, the grants officer must: (1) Identify the program statute, the statute that authorizes the DoD Component to carry out the activity the principal purpose of which is assistance (see 32 CFR 21.205(b)). (2) Review the program statute to determine if it contains requirements that affect the: ec. 22.210 Authority for providing assistance. (a) Before a grant or cooperative agreement may be used, the grants officer must: (1) Identify the program statute, the statute that authorizes the DoD Component to carry out the activity the principal purpose of which is assistance (see 32 CFR 21.205(b)). (2) Review the program statute to determine if it contains requirements that affect the: (i) Solicitation, selection, and award processes. For example, program statutes may authorize assistance to be provided only to certain types of recipients; may require that recipients meet certain other criteria to be eligible to receive assistance; or require that a specific process shall be used to review recipients' proposals. (ii) Terms and conditions of the award. For example, some program statutes require a specific level of cost sharing or matching. (b) The grants officer shall ensure that the award of any grant or cooperative agreement for a research project complies with the requirements of 10 U.S.C. 2358, DoD's broad authority to carry out research, even if the research project is authorized under a statutory authority other than 10 U.S.C. 2358. This broadening of the applicability of 10 U.S.C. 2358 to all research awards is a matter of DoD policy. The requirements of 10 U.S.C. 2358 are that, in the opinion of the Head of the DoD Component or his or her designee, the projects must be: (1) Necessary to the responsibilities of the DoD Component. (2) Related to weapons systems and other military needs or of potential interest to the DoD Component. Sec. 22.215 Distinguishing grants and cooperative agreements. s is a matter of DoD policy. The requirements of 10 U.S.C. 2358 are that, in the opinion of the Head of the DoD Component or his or her designee, the projects must be: (1) Necessary to the responsibilities of the DoD Component. (2) Related to weapons systems and other military needs or of potential interest to the DoD Component. Sec. 22.215 Distinguishing grants and cooperative agreements. (a) Once a grants officer judges, in accordance with Secs. 22.205 and 22.210, that either a grant or cooperative agreement is the appropriate instrument, the grants officer shall distinguish between the two instruments as follows: (1) Grants shall be used when the grants officer judges that substantial involvement is not expected between the Department of Defense and the recipient when carrying out the activity contemplated in the agreement. (2) Cooperative agreements shall be used when the grants officer judges that substantial involvement is expected. Under no circumstances are cooperative agreements to be used solely to obtain the stricter controls typical of a contract. The grants officer should document the nature of the substantial involvement that led to selection of a cooperative agreement. (b) In judging whether substantial involvement is expected, grants officers should recognize that ``substantial involvement'' is a relative, rather than an absolute, concept, and that it is primarily based on programmatic factors, rather than requirements for grant or agreement award or administration. For example, substantial involvement may include collaboration, participation, or intervention in the program or activity to be performed under the award. Sec. 22.220 Exemptions. nize that ``substantial involvement'' is a relative, rather than an absolute, concept, and that it is primarily based on programmatic factors, rather than requirements for grant or agreement award or administration. For example, substantial involvement may include collaboration, participation, or intervention in the program or activity to be performed under the award. Sec. 22.220 Exemptions. Under 31 U.S.C. 6307, the Director of the OMB is authorized to exempt an agency transaction or program from the requirements of 31 U.S.C. chapter 63. Grants officers shall request such exemptions only in exceptional circumstances. Each request shall specify for which individual transaction or program the exemption is sought; the reasons for requesting an exemption; the anticipated consequences if the exemption is not granted; and the implications for other transactions and programs if the exemption is granted. The procedures for requesting exemptions shall be: (a) In cases where 31 U.S.C. chapter 63 would require use of a contract and an exemption from that requirement is desired: (1) The grants officer shall submit a request for exemption, through appropriate channels established by his or her DoD Component (see 32 CFR 21.115(b)(1)), to the Director of Defense Procurement (DDP). (2) The DDP, after coordination with the Director of Defense Research and Engineering (DDR&E), shall transmit the request to OMB or notify the DoD Component that the request has been disapproved. (b) In other cases, the DoD Component shall submit a request for the exemption through appropriate channels to the DDR&E. The DDR&E shall transmit the request to OMB or notify the DoD Component that the request has been disapproved. th the Director of Defense Research and Engineering (DDR&E), shall transmit the request to OMB or notify the DoD Component that the request has been disapproved. (b) In other cases, the DoD Component shall submit a request for the exemption through appropriate channels to the DDR&E. The DDR&E shall transmit the request to OMB or notify the DoD Component that the request has been disapproved. (c) Where an exemption is granted, documentation of the approval shall be maintained in the award file. Subpart C--Competition Sec. 22.300 Purpose. This subpart establishes DoD policy and implements statutes related to the use of competitive procedures in the award of grants and cooperative agreements. Sec. 22.305 General policy and requirement for competition. (a) It is DoD policy to maximize use of competition in the award of grants and cooperative agreements. This also conforms with: (1) 31 U.S.C. 6301(3), which encourages the use of competition in awarding all grants and cooperative agreements. (2) 10 U.S.C. 2374(a), which sets out Congressional policy that any new grant for research, development, test, or evaluation be awarded through merit-based selection procedures. (b) Grants officers shall use merit-based, competitive procedures (as defined by Sec. 22.315) to award grants and cooperative agreements: (1) In every case where required by statute (e.g., 10 U.S.C. 2361, as implemented in Sec. 22.310, for certain grants to institutions of higher education). (2) To the maximum extent practicable in all cases where not required by statute. Sec. 22.310 Statutes concerning certain research, development, and facilities construction grants. Sec. 22.315) to award grants and cooperative agreements: (1) In every case where required by statute (e.g., 10 U.S.C. 2361, as implemented in Sec. 22.310, for certain grants to institutions of higher education). (2) To the maximum extent practicable in all cases where not required by statute. Sec. 22.310 Statutes concerning certain research, development, and facilities construction grants. (a) Definitions specific to this section. For the purposes of implementing the requirements of 10 U.S.C. 2374 in this section, the following terms are defined: (1) Follow-on grant. A grant that provides for continuation of research and development performed by a recipient under a preceding grant. Note that follow-on grants are distinct from incremental funding actions during the period of execution of a multi-year award. (2) New grant. A grant that is not a follow-on grant. (b) Statutory requirement to use competitive procedures. (1) A grants officer shall not award a grant by other than merit-based, competitive procedures (as defined by Sec. 22.315) to an institution of higher education for the performance of research and development or for the construction of research or other facilities, unless: (i) In the case of a new grant for research and development, there is a statute meeting the criteria in paragraph (c)(1) of this section; (ii) In the case of a follow-on grant for research and development, or of a grant for the construction of research or other facilities, there is a statute meeting the criteria in paragraph (c)(2) of this section; and (iii) The Secretary of Defense submits to Congress a written notice of intent to make the grant. The grant may not be awarded until 180 days have elapsed after the date on which Congress received the notice of intent. Contracting activities must submit a draft notice of intent with supporting documentation through channels to the Deputy Director, Defense Research and Engineering. ection; and (iii) The Secretary of Defense submits to Congress a written notice of intent to make the grant. The grant may not be awarded until 180 days have elapsed after the date on which Congress received the notice of intent. Contracting activities must submit a draft notice of intent with supporting documentation through channels to the Deputy Director, Defense Research and Engineering. (2) Because subsequently enacted statutes may, by their terms, impose different requirements than set out in paragraph (b)(1) of this section, grants officers shall consult legal counsel on a case-by-case basis, when grants for the performance of research and development or for the construction of research or other facilities are to be awarded to institutions of higher education by other than merit-based competitive procedures. (c) Subsequent statutes. In accordance with 10 U.S.C. 2361 and 10 U.S.C. 2374, a provision of law may not be construed as requiring the award of a grant through other than the merit-based, competitive procedures described in Sec. 22.315, unless: (1) Institutions of higher education--new grants for research and development. In the case of a new grant for research and development to an institution of higher education, such provision of law specifically: (i) Identifies the particular institution of higher education involved; (ii) States that such provision of law modifies or supersedes the provisions of 10 U.S.C. 2361 (a requirement that applies only if the statute authorizing or requiring award by other than competitive procedures was enacted after September 30, 1989); and (iii) States that the award to the institution of higher education involved is required by such provision of law to be made in contravention of the policy set forth in 10 U.S.C. 2374(a). or supersedes the provisions of 10 U.S.C. 2361 (a requirement that applies only if the statute authorizing or requiring award by other than competitive procedures was enacted after September 30, 1989); and (iii) States that the award to the institution of higher education involved is required by such provision of law to be made in contravention of the policy set forth in 10 U.S.C. 2374(a). (2) Institutions of higher education--follow-on grants for research and development and grants for the construction of any research or other facility. In the case of any such grant to an institution of higher education, such provision of law specifically: (i) Identifies the particular institution of higher education involved; and (ii) States that such provision of law modifies or supersedes the provisions of 10 U.S.C. 2361 (a requirement that applies only if the statute authorizing or requiring award by other than competitive procedures was enacted after September 30, 1989). (3) Other entities--new grants for research and development--(i) General. In the case of a new grant for research and development to an entity other than an institution of higher education, such provision of law specifically: (A) Identifies the particular entity involved; (B) States that the award to that entity is required by such provision of law to be made in contravention of the policy set forth in 10 U.S.C. 2374(a). (ii) Exception. The requirement of paragraph (c)(3)(i) of this section does not apply to any grant that calls upon the National Academy of Sciences to: (A) Investigate, examine, or experiment upon any subject of science or art of significance to the Department of Defense or any Military Department; and (B) Report on such matters to the Congress or any agency of the Federal Government. Sec. 22.315 Merit-based, competitive procedures. (c)(3)(i) of this section does not apply to any grant that calls upon the National Academy of Sciences to: (A) Investigate, examine, or experiment upon any subject of science or art of significance to the Department of Defense or any Military Department; and (B) Report on such matters to the Congress or any agency of the Federal Government. Sec. 22.315 Merit-based, competitive procedures. Competitive procedures are methods that encourage participation in DoD programs by a broad base of the most highly qualified performers. These procedures are characterized by competition among as many eligible proposers as possible, with a published or widely disseminated notice. Competitive procedures include, as a minimum: (a) Notice to prospective proposers. The notice may be a notice of funding availability or Broad Agency Announcement published in the Federal Register or Commerce Business Daily, respectively, or a notice that is made available broadly by electronic means. Alternatively, it may take the form of a specific notice that is distributed to eligible proposers (a specific notice must be distributed to at least two eligible proposers to be considered as part of a competitive procedure). Notices must include, as a minimum, the following information: (1) Programmatic area(s) of interest, in which proposals or applications are sought. (2) Eligibility criteria for potential recipients (see subpart D of this part). (3) Criteria that will be used to select the applications or proposals that will be funded, and the method for conducting the evaluation. (4) The type(s) of funding instruments (e.g., grants, cooperative agreements, other assistance instruments, or procurement contracts) that are anticipated to be awarded pursuant to the announcement. (5) Instructions for preparation and submission of a proposal or application, including the time by which it must be submitted. (b) At least two eligible, prospective proposers. the evaluation. (4) The type(s) of funding instruments (e.g., grants, cooperative agreements, other assistance instruments, or procurement contracts) that are anticipated to be awarded pursuant to the announcement. (5) Instructions for preparation and submission of a proposal or application, including the time by which it must be submitted. (b) At least two eligible, prospective proposers. (c) Impartial review of the merits of applications or proposals received in response to the notice, using the evaluation method and selection criteria described in the notice. For research and development awards, in order to be considered as part of a competitive procedure, the two principal selection criteria, unless statute provides otherwise, must be the: (1) Technical merits of the proposed research and development; and (2) Potential relationship of the proposed research and development to Department of Defense missions. Sec. 22.320 Special competitions. (a) General. Some programs may be competed for programmatic or policy reasons among specific classes of potential recipients. An example would be a program to enhance U.S. capabilities for academic research and research-coupled graduate education in defense-critical, science and engineering disciplines, a program that would be competed specifically among institutions of higher education. All such special competitions shall be consistent with program representations in the President's budget submission to Congress and with subsequent Congressional authorizations and appropriations for the programs. d research-coupled graduate education in defense-critical, science and engineering disciplines, a program that would be competed specifically among institutions of higher education. All such special competitions shall be consistent with program representations in the President's budget submission to Congress and with subsequent Congressional authorizations and appropriations for the programs. (b) Historically Black colleges and universities (HBCUs) and other minority institutions (MIs). Increasing the ability of HBCUs and MIs to participate in federally funded, university programs is an objective of Executive Order 12876 (3 CFR, 1993 Comp., p. 671) and 10 U.S.C. 2323. Whenever practicable, grants officers shall reserve appropriate programmatic areas for exclusive competition among HBCUs and MIs when preparing Broad Agency Announcements or other announcements as notices for programs in which grants or cooperative agreements are to be awarded to institutions of higher education. Subpart D--Recipient Qualification Matters--General Policies and Procedures Sec. 22.400 Purpose. The purpose of this subpart is to specify policies and procedures for grants officers' determination of recipient qualifications prior to award. Sec. 22.405 Policy. (a) General. Grants officers normally shall award grants or cooperative agreements only to qualified recipients that meet the standards in Sec. 22.415. This practice conforms with the Governmentwide policy, stated at 32 CFR 25.115(a), to do business only with responsible persons. procedures for grants officers' determination of recipient qualifications prior to award. Sec. 22.405 Policy. (a) General. Grants officers normally shall award grants or cooperative agreements only to qualified recipients that meet the standards in Sec. 22.415. This practice conforms with the Governmentwide policy, stated at 32 CFR 25.115(a), to do business only with responsible persons. (b) Exception. In exceptional circumstances, grants officers may make awards to recipients that do not fully meet the standards in Sec. 22.415 and include special award conditions that are appropriate to the particular situation, in accordance with 32 CFR 32.14, 33.12, or 34.4. Sec. 22.410 Grants officers' responsibilities. The grants officer is responsible for determining a recipient's qualification prior to award. The grants officer's signature on the award document shall signify his or her determination that either: (a) The potential recipient meets the standards in Sec. 22.415 and is qualified to receive the grant or cooperative agreement; or (b) An award is justified to a recipient that does not fully meet the standards, pursuant to Sec. 22.405(b). In such cases, grants officers shall document in the award file the rationale for making an award to a recipient that does not fully meet the standards. Sec. 22.415 Standards. To be qualified, a potential recipient must: (a) Have the management capability and adequate financial and technical resources, given those that would be made available through the grant or cooperative agreement, to execute the program of activities envisioned under the grant or cooperative agreement. (b) Have a satisfactory record of executing such programs or activities. (c) Have a satisfactory record of integrity and business ethics. (d) Be otherwise qualified and eligible to receive a grant or cooperative agreement under applicable laws and regulations (see Sec. 22.420(c)). Sec. 22.420 Pre-award procedures. program of activities envisioned under the grant or cooperative agreement. (b) Have a satisfactory record of executing such programs or activities. (c) Have a satisfactory record of integrity and business ethics. (d) Be otherwise qualified and eligible to receive a grant or cooperative agreement under applicable laws and regulations (see Sec. 22.420(c)). Sec. 22.420 Pre-award procedures. (a) The appropriate method to be used and amount of effort to be expended in deciding the qualification of a potential recipient will vary. In deciding on the method and level of effort, the grants officer should consider factors such as: (1) DoD's past experience with the recipient; (2) Whether the recipient has previously received cost-type contracts, grants, or cooperative agreements from the Federal Government; and (3) The amount of the prospective award and complexity of the project to be carried out under the award. (b) There is no DoD-wide requirement to obtain a pre-award credit report, audit, or any other specific piece of information. On a case- by-case basis, the grants officer will decide whether there is a need to obtain any such information to assist in deciding whether the recipient meets the standards in Sec. 22.415(a), (b), and (c). (1) Should the grants officer in a particular case decide that a pre-award credit report, audit, or survey is needed, he or she should consult first with the appropriate grants administration office (identified in Sec. 22.710), and decide whether pre-existing surveys or audits of the recipient, such as those of the recipient's internal control systems under OMB Circular A-133 \2\ or A-128 \3\ will satisfy the need (see Sec. 22.715(a)(1)). --------------------------------------------------------------------------- she should consult first with the appropriate grants administration office (identified in Sec. 22.710), and decide whether pre-existing surveys or audits of the recipient, such as those of the recipient's internal control systems under OMB Circular A-133 \2\ or A-128 \3\ will satisfy the need (see Sec. 22.715(a)(1)). --------------------------------------------------------------------------- \2\ Contact the Office of Management and Budget, EOP Publications, 725 17th St. N.W., New Executive Office Building, Washington, D.C. 20503. \3\ See footnote 2 to paragraph (b)(1) of this section. --------------------------------------------------------------------------- (2) If, after consulting with the grants administration office, the grants officer decides to obtain a credit report, audit, or other information, and the report or other information discloses that a potential recipient is delinquent on a debt to an agency of the United States Government, then: (i) The grants officer shall take such information into account when determining whether the potential recipient is qualified with respect to the grant or cooperative agreement; and (ii) If the grants officer decides to make the award to the recipient, unless there are compelling reasons to do otherwise, the grants officer shall delay the award of the grant or cooperative agreement until payment is made or satisfactory arrangements are made to repay the debt. (c) In deciding whether a recipient is otherwise qualified and eligible in accordance with the standard in Sec. 22.415(d), the grants officer shall ensure that the potential recipient: -- (1) Is not identified on the Governmentwide ``List of Parties Excluded from Federal Procurement and Nonprocurement Programs'' as being debarred, suspended, or otherwise ineligible to receive the award. The grants officer shall check the list of such parties for: --- - eligible in accordance with the standard in Sec. 22.415(d), the grants officer shall ensure that the potential recipient: -- (1) Is not identified on the Governmentwide ``List of Parties Excluded from Federal Procurement and Nonprocurement Programs'' as being debarred, suspended, or otherwise ineligible to receive the award. The grants officer shall check the list of such parties for: --- - (i) Potential recipients of prime awards, as described at 32 CFR 25.505(d); ---- (ii) A recipient's principals (e.g., officers, directors, or other key employees, as defined at 32 CFR 25.105); and ---- (iii) Potential recipients of subawards, where DoD Component approval of such principals or lower-tier recipients is required under the terms of the award (see 32 CFR 25.505(e)). -- (2) Has provided all certifications and assurances required by Federal statute, Executive order, or codified regulation, unless they are to be addressed in award terms and conditions at the time of award (see Sec. 22.510). -- (3) Meets any eligibility criteria that may be specified in the statute authorizing the specific program under which the award is being made (see Sec. 22.210(a)(2)). - (d) Grants officers shall obtain recipients' Taxpayer Identification Numbers (these may be Social Security Numbers for individuals and Employer Identification Numbers for businesses or non- profit entities) to facilitate later collection of delinquent debts, if necessary. Subpart E--National Policy Matters Sec. 22.505 Purpose. - The purpose of this subpart is to supplement other regulations that implement national policy requirements, to the extent that it is necessary to provide additional guidance to DoD grants officers. The other regulations that implement national policy requirements include: - litate later collection of delinquent debts, if necessary. Subpart E--National Policy Matters Sec. 22.505 Purpose. - The purpose of this subpart is to supplement other regulations that implement national policy requirements, to the extent that it is necessary to provide additional guidance to DoD grants officers. The other regulations that implement national policy requirements include: - (a) The other parts of the DoDGARs (32 CFR parts 32, 33, and 34) that implement the Governmentwide guidance in OMB Circulars A-102 \4\ and A-110 \5\ on administrative requirements for grants and cooperative agreements. Those parts address some national policy matters that appear in the OMB Circulars. --------------------------------------------------------------------------- \4\ See footnote 2 to Sec. 22.420(b)(1). \5\ See footnote 2 to Sec. 22.420(b)(1).- --------------------------------------------------------------------------- (b) DoD regulations other than the DoDGARs. - (c) Other Federal agencies' regulations. Sec. 22.510 Certifications, representations, and assurances. - (a) Certifications--(1) Policy. Certifications of compliance with national policy requirements are to be obtained from recipients only for those national policies where a statute, Executive order, or codified regulation specifically states that a certification is required. Other national policy requirements may be addressed by obtaining representations or assurances (see paragraph (b) of this section). Grants officers should utilize methods for obtaining certifications, in accordance with Executive Order 12866 (3 CFR, 1993 Comp., p. 638), that minimize administration and paperwork. r, or codified regulation specifically states that a certification is required. Other national policy requirements may be addressed by obtaining representations or assurances (see paragraph (b) of this section). Grants officers should utilize methods for obtaining certifications, in accordance with Executive Order 12866 (3 CFR, 1993 Comp., p. 638), that minimize administration and paperwork. (2) Procedures. (i) When necessary, grants officers may obtain individual, written certifications. (ii) Whenever possible, however, grants officers should identify the certifications that are required for the particular type of recipient and program, and consolidate them into a single certification provision that cites them by reference. (A) Appendix A to this part lists the common certifications and cites their applicability. Because some certifications (e.g., the certification on lobbying in Appendix A to this part) are required by law to be submitted at the time of proposal, rather than at the time of award, Appendix A to this part includes suggested language for incorporating common certifications by reference into a proposal. (B) If a grants officer elects to have proposers incorporate certifications by reference into their proposals, the solicitation either must include the full text of the certifications that proposers are to provide by reference, or must inform the proposers where the full text may be found (e.g., in documents or computer network sites that are readily available to the public) and offer to provide it to proposers upon request. (C) Grants officers may incorporate certifications by reference in award documents when doing so is consistent with statute and codified regulation. Note that a statute requires submission of the lobbying certification in Appendix A to this part at the time of proposal ments or computer network sites that are readily available to the public) and offer to provide it to proposers upon request. (C) Grants officers may incorporate certifications by reference in award documents when doing so is consistent with statute and codified regulation. Note that a statute requires submission of the lobbying certification in Appendix A to this part at the time of proposal. Grants officers may incorporate the other certifications listed in Appendix A to this part in award documents, notwithstanding the regulatory requirement stated in 32 CFR 25.510(a) for obtaining certifications regarding debarment and suspension at the time of proposal submission. The provision that a grants officer would use to incorporate certifications in award documents would be similar to the suggested provision in Appendix A to this part, except that it would be modified to state that the recipient is providing the required certifications by signing the award document or by accepting funds under the award. (b) Representations and assurances. Many national policies, either in statute or in regulation, require recipients of grants and cooperative agreements to make representations or provide assurances (rather than certifications) that they are in compliance with the policies. As discussed in Sec. 22.610(b), Appendix B to this part suggests award terms and conditions that may be used to address several of the more commonly applicable national policy requirements. These terms and conditions may be used to obtain required assurances and representations, if the grants officer wishes to do so at the time of award, rather than through the use of the standard application form (SF-424) or other means at the time of proposal. Sec. 22.515 Provisions of annual appropriations acts. - address several of the more commonly applicable national policy requirements. These terms and conditions may be used to obtain required assurances and representations, if the grants officer wishes to do so at the time of award, rather than through the use of the standard application form (SF-424) or other means at the time of proposal. Sec. 22.515 Provisions of annual appropriations acts. - An annual appropriations act can include general provisions stating national policy requirements that apply to the use of funds (e.g., obligation through a grant or cooperative agreement) appropriated by the act. Because these requirements are of limited duration (the period during which a given year's appropriations are available for obligation), and because they can vary from year to year and from one agency's appropriations act to another agency's, the grants officer must know the agency(ies) and fiscal year(s) of the appropriations being obligated by a given grant or cooperative agreement, and may need to consult legal counsel if he or she does not know the requirements applicable to those appropriations. Sec. 22.520 Military recruiting on campus. [Reserved] Sec. 22.525 Paperwork Reduction Act. - Grants officers shall include appropriate award terms or conditions, if a recipient's activities under an award will be subject to the Paperwork Reduction Act of 1995 (44 U.S.C. 3500, et seq.):- (a) Generally, the Act only applies to Federal agencies--it requires agencies to obtain clearance from the Office of Management and Budget before collecting information using forms, schedules, questionnaires, or other methods calling either for answers to: --- (1) Identical questions from ten or more persons other than agencies, instrumentalities, or employees of the United States. --- (2) Questions from agencies, instrumentalities, or employees of the United States which are to be used for statistical compilations of general public interest. -- information using forms, schedules, questionnaires, or other methods calling either for answers to: --- (1) Identical questions from ten or more persons other than agencies, instrumentalities, or employees of the United States. --- (2) Questions from agencies, instrumentalities, or employees of the United States which are to be used for statistical compilations of general public interest. -- (b) The Act applies to similar collections of information by recipients of grants or cooperative agreements only when: --- (1) A recipient collects information at the specific request of the awarding Federal agency; or --- (2) The terms and conditions of the award require specific approval by the agency of the information collection or the collection procedures. Sec. 22.530 Metric system of measurement. -- (a) Statutory requirement. The Metric Conversion Act of 1975, as amended by the Omnibus Trade and Competitiveness Act of 1988 (15 U.S.C. 205) and implemented by Executive Order 12770 (3 CFR, 1991 Comp., p. 343), states that: --- (1) The metric system is the preferred measurement system for U.S. trade and commerce. --- (2) The metric system of measurement will be used, to the extent economically feasible, in federal agencies' procurements, grants, and other business-related activities. --- (3) Metric implementation shall not be required to the extent that such use is likely to cause significant inefficiencies or loss of markets to United States firms. -- measurement system for U.S. trade and commerce. --- (2) The metric system of measurement will be used, to the extent economically feasible, in federal agencies' procurements, grants, and other business-related activities. --- (3) Metric implementation shall not be required to the extent that such use is likely to cause significant inefficiencies or loss of markets to United States firms. -- (b) Responsibilities. DoD Components shall ensure that the metric system is used, to the maximum extent practicable, in measurement- sensitive activities supported by programs that use grants and cooperative agreements, and in measurement-sensitive outputs of such programs. Subpart F--Award Sec. 22.600 Purpose. -- This subpart sets forth grants officers' responsibilities relating to the award document and other actions at the time of award. Sec. 22.605 Grants officers' responsibilities. -- At the time of award, the grants officer is responsible for ensuring that: -- (a) The award instrument contains the appropriate terms and conditions, in accordance with Sec. 22.610. -- (b) Information about the award is provided to the office responsible for preparing reports for the Defense Assistance Award Data System (DAADS), to ensure timely and accurate reporting of data required by 31 U.S.C. 6101-6106 (see 32 CFR part 21, subpart C). -- (c) In addition to the copy of the award document provided to the recipient, a copy is forwarded to the office designated to administer the grant or cooperative agreement, and another copy is forwarded to the finance and accounting office designated to make the payments to the recipient. Sec. 22.610 Award instruments. -- ta required by 31 U.S.C. 6101-6106 (see 32 CFR part 21, subpart C). -- (c) In addition to the copy of the award document provided to the recipient, a copy is forwarded to the office designated to administer the grant or cooperative agreement, and another copy is forwarded to the finance and accounting office designated to make the payments to the recipient. Sec. 22.610 Award instruments. -- (a) Each award document shall include terms and conditions that: -- - (1) Address programmatic requirements (e.g., a statement of work or other appropriate terms or conditions that describe the specific goals and objectives of the project). The grants officer shall develop such terms and conditions in coordination with program officials. --- (2) Provide for the recipient's compliance with: ----- (i) Pertinent Federal statutes or Executive orders that apply broadly to Federal or DoD assistance awards. ----- (ii) Any program-specific requirements that are prescribed in the program statute (see Sec. 22.210(a)(2)), or appropriation-specific requirements that are stated in the pertinent Congressional appropriations (see Sec. 22.515). ----- (iii) Pertinent portions of the DoDGARs or other Federal regulations, including those that implement the Federal statutes or Executive orders described in paragraphs (a)(2) (i) and (ii) of this section. --- (3) Specify the grants officer's instructions for post-award administration, for any matter where the post-award administration provisions in 32 CFR part 32, 33, or 34 give the grants officer options for handling the matter. For example, under 32 CFR 32.24(b), the grants officers must choose among possible methods for the recipient's disposition of program income. It is essential that the grants officer identify the option selected in each case, to provide clear instructions to the recipient and the grants officer responsible for post-award administration of the grant or cooperative agreement. -- ling the matter. For example, under 32 CFR 32.24(b), the grants officers must choose among possible methods for the recipient's disposition of program income. It is essential that the grants officer identify the option selected in each case, to provide clear instructions to the recipient and the grants officer responsible for post-award administration of the grant or cooperative agreement. -- (b) To assist grants officers: --- (1) Appendix B to this part provides model clauses to implement certain Federal statutes, Executive orders, and regulations (see paragraph (a)(2)(i) of this section) that frequently apply to DoD grants and cooperative agreements. Grants officers may incorporate the model clauses into award terms and conditions, as appropriate. It should be noted that Appendix B to this part is an aid, and not an exhaustive list of all requirements that apply in all cases. Depending on the circumstances of a given award, other statutes, Executive orders, or codified regulations also may apply (e.g., Appendix B to this part does not list program-specific requirements described in paragraph (a)(2)(ii) of this section). (2) Appendix C to this part is a list of administrative requirements that apply to awards to different types of recipients. It also identifies post-award administration issues that the grants officer must address in the award terms and conditions. Subpart G--Field Administration Sec. 22.700 Purpose. --- This subpart prescribes policies and procedures for administering grants and cooperative agreements. It does so in conjunction with 32 CFR parts 32, 33, and 34, which prescribe administrative requirements for particular types of recipients. Sec. 22.705 Policy. --- at the grants officer must address in the award terms and conditions. Subpart G--Field Administration Sec. 22.700 Purpose. --- This subpart prescribes policies and procedures for administering grants and cooperative agreements. It does so in conjunction with 32 CFR parts 32, 33, and 34, which prescribe administrative requirements for particular types of recipients. Sec. 22.705 Policy. --- (a) DoD policy is to have each recipient deal with a single office, to the maximum extent practicable, for post-award administration of its grants and agreements. This reduces burdens on recipients that can result when multiple DoD offices separately administer grants and agreements they award to a given recipient. It also minimizes unnecessary duplication of field administration services. --- (b) To further reduce burdens on recipients, the office responsible for performing field administration services for grants and agreements to a particular recipient shall be the same office that is assigned responsibility for performing field administration services for contracts awarded to that recipient. -- (c) Contracting activities and grants officers therefore shall use cross-servicing arrangements whenever practicable and, to the maximum extent possible, delegate responsibility for post-award administration to the cognizant grants administration offices identified in Sec. 22.710. Sec. 22.710 Assignment of grants administration offices. In accordance with the policy stated in Sec. 22.705(b), the DoD offices (referred to in this part as ``grants administration offices'') that are assigned responsibility for performing field administration services for grants and agreements are (see the ``DoD Directory of Contract Administration Services Components,'' DLAH 4105.4,\6\ for specific addresses of administration offices): - --------------------------------------------------------------------------- ices (referred to in this part as ``grants administration offices'') that are assigned responsibility for performing field administration services for grants and agreements are (see the ``DoD Directory of Contract Administration Services Components,'' DLAH 4105.4,\6\ for specific addresses of administration offices): - --------------------------------------------------------------------------- \6\ Copies may be obtained from the Defense Logistics Agency, Publications Distribution Division (DASC-WDM), 8725 John J. Kingman Rd., Suite 0119, Fort Belvoir, VA 22060-6220. --------------------------------------------------------------------------- (a) Regional offices of the Office of Naval Research, for grants and agreements with: ---- (1) Institutions of higher education and laboratories affiliated with such institutions, to the extent that such organizations are subject to the university cost principles in OMB Circular A-21.\7\ --------------------------------------------------------------------------- \7\ See footnote 2 to Sec. 22.420(b)(1). --------------------------------------------------------------------------- (2) Nonprofit organizations that are subject to the cost principles in OMB Circular A-122,\8\ if their principal business with the Department of Defense is research and development. --------------------------------------------------------------------------- \8\ See footnote 2 to Sec. 22.420(b)(1). - --------------------------------------------------------------------------- ----------------- (2) Nonprofit organizations that are subject to the cost principles in OMB Circular A-122,\8\ if their principal business with the Department of Defense is research and development. --------------------------------------------------------------------------- \8\ See footnote 2 to Sec. 22.420(b)(1). - --------------------------------------------------------------------------- (b) Field offices of the Defense Contract Management Command, for grants and agreements with all other entities, including: -- (1) Commercial organizations. -- (2) Nonprofit organizations identified in Attachment C of OMB Circular A-122 that are subject to commercial cost principles in 48 CFR part 31. -- (3) Nonprofit organizations subject to the cost principles in OMB Circular A-122, if their principal business with the Department of Defense is other than research and development. (4) State and local governments. Sec. 22.715 Grants administration office functions. The primary responsibility of cognizant grants administration offices shall be to advise and assist grants officers and recipients prior to and after award, and to help ensure that recipients fulfill all requirements in law, regulation, and award terms and conditions. Specific functions include: (a) Conducting reviews and coordinating reviews, audits, and audit requests. This includes: (1) Advising grants officers on the extent to which audits by independent auditors (i.e., public accountants or Federal auditors) have provided the information needed to carry out their responsibilities. If a recipient has had an independent audit in accordance with OMB Circular A-128 or OMB Circular A-133, and the audit report disclosed no material weaknesses in the recipient's financial management and other management and control systems, additional preaward or closeout audits usually will not be needed (see Secs. 22.420(b) and 22.825(b)). mation needed to carry out their responsibilities. If a recipient has had an independent audit in accordance with OMB Circular A-128 or OMB Circular A-133, and the audit report disclosed no material weaknesses in the recipient's financial management and other management and control systems, additional preaward or closeout audits usually will not be needed (see Secs. 22.420(b) and 22.825(b)). (2) Performing pre-award surveys, when requested by a grants officer, after providing advice described in paragraph (a)(1) of this section. (3) Reviewing recipients' systems and compliance with Federal requirements, in coordination with any reviews and compliance audits performed by independent auditors under OMB Circular A-128 or A-133. This includes: (i) Reviewing recipients' financial management, property management, and purchasing systems, to determine the adequacy of such systems. (ii) Determining that recipients have drug-free workplace programs, as required under 32 CFR part 25. (4) Notifying the Office of the Assistant Inspector General for Audit Policy and Oversight (OAIG(APO)), 400 Army-Navy Drive, Arlington, VA 22202, if either of the following is not available within a reasonable period of time (e.g., six months) after the date on which a recipient of DoD grants and agreements was to have submitted its audit report under OMB Circular A-128 or A-133 to the OAIG(APO): (i) The recipient's audit report under OMB Circular A-128 or A-133. (ii) The OAIG(APO)'s desk review of the recipient's audit report, or a letter stating that the OAIG(APO) has decided not to conduct a desk review. (b) Performing property administration services for Government- owned property, and for any property acquired by a recipient, with respect to which the recipient has further obligations to the Government. (c) Ensuring timely submission of required reports. (d) Executing administrative closeout procedures. port, or a letter stating that the OAIG(APO) has decided not to conduct a desk review. (b) Performing property administration services for Government- owned property, and for any property acquired by a recipient, with respect to which the recipient has further obligations to the Government. (c) Ensuring timely submission of required reports. (d) Executing administrative closeout procedures. (e) Establishing recipients' indirect cost rates, where the Department of Defense is the cognizant or oversight Federal agency with the responsibility for doing so. (f) Performing other administration functions (e.g., receiving recipients' payment requests and transmitting approved payment authorizations to payment offices) as delegated by applicable cross- servicing agreements or letters of delegation. Subpart H--Post-Award Administration Sec. 22.800 Purpose and relation to other parts. This subpart sets forth grants officers' and DoD Components' responsibilities for post-award administration, by providing DoD- specific requirements on payments; debt collection; claims, disputes and appeals; and closeout audits. Sec. 22.805 Post-award requirements in other parts. Grants officers responsible for post-award administration of grants and cooperative agreements shall administer such awards in accordance with the following parts of the DoDGARs, as supplemented by this subpart: (a) Awards to domestic recipients. Standard administrative requirements for grants and cooperative agreements with domestic recipients are specified in other parts of the DoDGARs, as follows: (1) For awards to domestic institutions of higher education and other nonprofit organizations, requirements are specified in 32 CFR part 32, which is the DoD implementation of OMB Circular A-110. (2) For awards to State and local governments, specifies requirements are specified in 32 CFR part 33, which is the DoD codification of the Governmentwide common rule to implement OMB Circular A-102. 1) For awards to domestic institutions of higher education and other nonprofit organizations, requirements are specified in 32 CFR part 32, which is the DoD implementation of OMB Circular A-110. (2) For awards to State and local governments, specifies requirements are specified in 32 CFR part 33, which is the DoD codification of the Governmentwide common rule to implement OMB Circular A-102. (3) For awards to domestic commercial organizations, requirements are specified in 32 CFR part 34, which is modeled on the requirements in OMB Circular A-110. (b) Awards to foreign recipients. DoD Components shall use the administrative requirements specified in paragraph (a) of this section, to the maximum extent practicable, for grants and cooperative agreements to foreign recipients. Sec. 22.810 Payments. (a) Purpose. This section prescribes policies and grants officers' post-award responsibilities, with respect to payments to recipients of grants and cooperative agreements. (b) Policy. It is Governmentwide policy to minimize the time elapsing between any payment of funds to a recipient and the recipient's disbursement of the funds for program purposes (see 32 CFR 32.22(a) and 33.21(b), and the implementation of the Cash Management Improvement Act at 31 CFR part 205). Expanding on the Governmentwide policy, DoD policy is to: (1) Use electronic commerce, to the maximum extent practicable, in the payment process for grants and cooperative agreements, to improve timeliness and accuracy of payments. (2) Make authorized payments expeditiously. (see 32 CFR 32.22(a) and 33.21(b), and the implementation of the Cash Management Improvement Act at 31 CFR part 205). Expanding on the Governmentwide policy, DoD policy is to: (1) Use electronic commerce, to the maximum extent practicable, in the payment process for grants and cooperative agreements, to improve timeliness and accuracy of payments. (2) Make authorized payments expeditiously. (i) When grants or agreements provide for payments, either advances or reimbursements, to be made in response to recipients' requests, authorized payments shall be made as soon as possible after receipt of the requests. Authorized payments normally shall not be made more than: (A) Seven days after receipt of recipients' requests, whenever grants officers, payment offices, and recipients are able to use electronic commerce (i.e., electronic data interchange (EDI) to request and authorize payments and electronic funds transfer (EFT) to make payments). (B) Thirty days after receipt of recipients' requests, when it is not possible to use electronic commerce and offices must process paper to receive recipients' requests, or to authorize and make payments (note, however, that Governmentwide guidance implemented at 32 CFR 32.22(e)(1) makes payment within 30 days a firm requirement, not just the norm, for payments to institutions of higher education and other nonprofit organizations, when the reimbursement method of payment is used). Payments shall be made as expeditiously as processing of paper transactions allows--this policy is intended neither to delay payments nor to make them as close as possible to the 30th day. (ii) When payments are authorized in advance, based on a predetermined schedule, the payment office should make each payment within 7 days of the date specified, if the schedule was provided to the payment office at least 30 days in advance of the date of the scheduled payment. ns allows--this policy is intended neither to delay payments nor to make them as close as possible to the 30th day. (ii) When payments are authorized in advance, based on a predetermined schedule, the payment office should make each payment within 7 days of the date specified, if the schedule was provided to the payment office at least 30 days in advance of the date of the scheduled payme [Text truncated at 120,000 characters. 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Check the current official text before relying on it. Not legal advice.