§ 200.201 - Use of grants, cooperative agreements, fixed amount awards, and contracts.

§ 200.201 Use of grant agreements (including grants, cooperative agreements, fixed amount awards), cooperative agreements, and contracts.

(a) Federal award instrumentawards. The Federal awarding agency or pass-through entity must decide on the appropriate instrument type of agreement for the a Federal award (i.e., grant agreementfor example, a grant, cooperative agreement, subaward, or contract) in accordance with this guidance. See the Federal Grant and Cooperative Agreement Act (31 U.S.C. 6301-086309).

(b) Fixed amount awards. In addition to the options described in paragraph (a) of this section, Federal awarding agencies, The Federal agency or pass-through entities as permitted in entity (see § 200.333, ) may use fixed amount awards (see Fixed the definition of fixed amount awards in § 200.1) to for which the following conditions apply:

(1) The Federal award amount is negotiated using the cost principles (or other pricing information) as a guide. See § 200.101(b)(4)(ii) for further information on which provisions in subpart E (cost principles) apply to fixed amount awards. The Federal awarding agency or pass-through entity may use fixed amount awards if the project scope has measurable goals and objectives and if adequate accurate cost, historical, or unit pricing data is available to establish a fixed amount award budget based on a reasonable estimate of actual cost. Payments are based on meeting specific requirements of the Federal award. Accountability is costs. Budgets for fixed amount awards are negotiated with the recipient or subrecipient and the total amount of Federal funding is determined in accordance with the recipient's or subrecipient's proposal, available pricing data, and subpart E. Accountability must be based on performance and results. Except in the case of termination before completion of the Federal award, there is no governmental review , which can be communicated in performance reports or through routine monitoring. There is no expected routine monitoring of the actual costs incurred by the non-Federal entity in performance of the recipient or subrecipient under the Federal award. Therefore, no financial reporting is required. This does not absolve the recipient or subrecipient from the record retention requirements contained in §§ 200.334 through 200.338; nor does it absolve the recipient or subrecipient of the responsibilities of making records available for review during an audit. See § 200.101(b)(5)(i). Payments must be based on meeting specific requirements of the Federal award. Some of the ways in which the Federal award may be paid include, but are not limited to:

(i) In several partial payments, the . The amount of each agreed upon in advance, and payment as well as the “milestone” or event triggering the payment also , should be agreed upon to in advance , and set forth included in the Federal award;

(ii) On a unit price basis, for a . The defined unit or units, at a defined price or prices, (s) or price(s) should be agreed to in advance of performance of the Federal award and set forth and included in the Federal award; or,

(iii) In one payment at the completion of the Federal award completion.

(2) A fixed amount award cannot must not be used in programs which that require mandatory cost sharing or match.

(3) The non-Federal entity A fixed amount award may generate and use program income in accordance with the terms and conditions of the Federal award; however, the requirements of § 200.307 do not apply.

(4) At the end of a fixed amount award, the recipient or subrecipient must certify in writing to the Federal

awarding

agency or pass-through entity

at the end of

that the project was completed as agreed to in the Federal award

that the project or activity was completed or the level of effort was expended. If the required level of activity or effort was not carried out,

, or identify those activities that were not completed, and that all expenditures were incurred in accordance with § 200.403. When the required activities were not carried out, including fixed amount awards paid on a unit price basis under 200.201(b)(1)(ii), the amount of the Federal award must be

adjusted.

(4reduced by the amount that reflects the activities that were not completed in accordance with the Federal award. When the required activities were completed in accordance with the terms and conditions of the Federal award, the recipient or subrecipient is entitled to any unexpended funds.

(5) Periodic reports may be established for

each Federal award

fixed amount awards.

(

5) Changes in principal investigator, project leader, project partner, or scope of effort must receive the prior written approval of the Federal awarding agency or pass-through entity.

6) Prior approval requirements that apply to fixed amount awards are § 200.308(f) (paragraphs 1 through 3, 6 through 8, and 10) and § 200.333.