[Federal Register Volume 61, Number 142 (Tuesday, July 23, 1996)]
[Rules and Regulations]
[Pages 38058-38084]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-18363]
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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
14 CFR Part 1260
RIN 2700-AA95
Grants and Agreements With Institutions of Higher Education,
Hospitals, and Other Non-Profit Organizations, Uniform Administrative
Requirements (OMB A-110 Implementation)
AGENCY: Office of Procurement, National Aeronautics and Space
Administration (NASA).
ACTION: Interim rule.
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SUMMARY: This rule revises NASA's grant regulations in order to adopt
[[Page 38059]]
uniform administrative requirements. Institutions that receive grants
from more than one Federal agency may find it easier to follow the
format of these uniform requirements.
DATES: This rule is effective August 22, 1996. All comments on this
interim rule should be in writing and must be received by September 23,
1996.
ADDRESSES: Rich Kall, Code HK, NASA Headquarters, Washington, DC 20546.
FOR FURTHER INFORMATION CONTACT:
Rich Kall, (202) 358-0459.
SUPPLEMENTARY INFORMATION:
Background
This rule revises 14 CFR part 1260 to adopt the language of OMB
Circular No. A-110 by using a format similar to the Department of
Energy's regulation at 10 CFR part 600. A new subpart A provides the
text of provisions and special conditions for grants and cooperative
agreements and addresses NASA's authority, definitions, applicability,
amendments, publications, deviations, pre-award requirements, and post-
award requirements currently covered by 14 CFR part 1260. A new subpart
B adopts the uniform administrative requirements of OMB Circular No. A-
110 and includes NASA's choices in alternatives offered by A-110.
Because A-110 was already published for public comment, NASA's adoption
of the language is being done as an interim rule. NASA has added
subpart C, Administrative Requirements for State and Local Governments
(formerly in OMB Circular A-102 and currently in the agencies' Grants
Management Common Rule), which has been codified at 14 CFR part 1273,
FR 33694, 6-29-95.
Procedural Requirements
Review Under the Regulatory Flexibility Act
The rule was reviewed under the Regulatory Flexibility Act of 1980.
NASA certifies that the rule will not have a significant economic
impact on a substantial number of small entities.
Review Under the Paperwork Reduction Act
Under 5 CFR 1320.5(b)(2)(i), NASA is required to inform potential
persons who are to respond to the collection of information that such
persons are not required to respond to the collection of information
unless it displays a currently valid OMB control number. Under 5 CFR
1320.5(b)(2)(ii)(C), this paragraph meets that display requirement by
providing the following statement: information collection under 14 CFR
part 1260 is not changed by this rule and was previously approved under
OMB Control Numbers 2700-0047, 2700-0048, and 2700-0049.
Executive Order 12866
NASA has determined that this rule is significant under E.O. 12866.
This regulation is needed because OMB Circular No. A-110 encourages
agencies to adopt uniform administrative requirements for grants. The
regulation meets that need by adopting the requirements of A-110. The
potential costs and benefits of the regulatory action are that
institutions that receive grants from more than one Federal agency may
find it easier to follow the format of these uniform requirements.
These requirements implement several Federal statutes applicable to
grants, e.g., civil rights, clean air and water, and drug-free
workplace.
List of Subjects in 14 CFR Part 1260
Grant programs.
Tom Luedtke,
Deputy Associate Administrator for Procurement.
Accordingly, 14 CFR part 1260 is revised to read as follows:
PART 1260--GRANTS AND COOPERATIVE AGREEMENTS
Subpart A--General
Sec.
1260.1 Authority.
1260.2 Definitions.
1260.3 Applicability.
1260.4 Amendment.
1260.5 Publication.
1260.6 Deviations.
Pre-Award Requirements
1260.10 Proposals.
1260.11 Evaluation and selection.
1260.12 Choice of award instrument.
1260.13 Award procedures.
1260.14 Limitations.
1260.15 Format and numbering.
1260.16 Distribution.
Provisions
1260.20 Provisions.
1260.21 Publications and reports.
1260.22 Extensions.
1260.23 Termination and enforcement.
1260.24 Change in principal investigator or scope.
1260.25 Allowable costs.
1260.26 Financial management.
1260.27 Equipment and other property.
1260.28 Patent rights.
1260.29 Rights in data.
1260.30 National security.
1260.31 Nondiscrimination.
1260.32 Subcontracts.
1260.33 Clean air and water.
1260.34 Procurement standards.
1260.35 Foreign national employee investigative requirements.
1260.36 Travel and transportation.
Special Conditions
1260.50 Special conditions.
1260.51 Cooperative agreement special condition.
1260.52 Multiple year grant.
1260.53 Incremental funding.
1260.54 Cost sharing.
1260.55 Reports substitution.
1260.56 Withholding.
1260.57 Training grant reports.
1260.58 Interest bearing accounts.
1260.59 Choice of law.
1260.60 Invention reporting and rights.
1260.61 Public information.
1260.62 Allocation of risk/liability.
1260.63 Payment--to foreign organizations.
1260.64 Customs clearance and visas.
1260.65 Taxes.
1260.66 Exchange of technical data and goods.
Post-Award Requirements
1260.70 Delegation of administration.
1260.71 Supplements and renewals.
1260.72 Adherence to original budget estimates.
1260.73 Transfers, novations, and change of name agreements.
1260.74 Property use, disposition, and vesting of title.
1260.75 Reports.
1260.76 Suspension or termination.
1260.77 Closeout procedures.
Appendix to Subpart A to Part 1260--Listing of Exhibits
Subpart B--Uniform Administrative Requirements for Grants and
Cooperative Agreements With Institutions of Higher Education,
Hospitals, and Other Non-Profit Organizations
General
Sec.
1260.101 Purpose.
1260.102 Definitions.
1260.103 Effect on other issuances.
1260.104 Deviations.
1260.105 Subawards.
Pre-Award Requirements
1260.110 Purpose.
1260.111 Pre-award policies.
1260.112 Forms for applying for Federal assistance.
1260.113 Debarment and suspension.
1260.114 Special award conditions.
1260.115 Metric system of measurement.
1260.116 Resource Conservation and Recovery Act (RCRA).
1260.117 Certifications and representations.
Post-Award Requirements
Financial and Program Management
1260.120 Purpose of financial and program management.
1260.121 Standards for financial management systems.
1260.122 Payment.
1260.123 Cost sharing or matching.
1260.124 Program income.
1260.125 Revision of budget and program plans.
1260.126 Non-Federal audits.
1260.127 Allowable costs.
1260.128 Period of availability of funds.
[[Page 38060]]
Property Standards
1260.130 Purpose of property standards.
1260.131 Insurance coverage.
1260.132 Real property.
1260.133 Federally-owned and exempt property.
1260.134 Equipment.
1260.135 Supplies and other expendable property.
1260.136 Intangible property.
1260.137 Property trust relationship.
Procurement Standards
1260.140 Purpose of procurement standards.
1260.141 Recipient responsibilities.
1260.142 Codes of conduct.
1260.143 Competition.
1260.144 Procurement procedures.
1260.145 Cost and price analysis.
1260.146 Procurement records.
1260.147 Contract administration.
1260.148 Contract provisions.
Reports and Records
1260.150 Purpose of reports and records.
1260.151 Monitoring and reporting program performance.
1260.152 Financial reporting.
1260.153 Retention and access requirements for records.
Termination and Enforcement
1260.160 Purpose of termination and enforcement.
1260.161 Termination.
1260.162 Enforcement.
After-the-Award Requirements
1260.170 Purpose.
1260.171 Closeout procedures.
1260.172 Subsequent adjustments and continuing responsibilities.
1260.173 Collection of amounts due.
Appendix A to Subpart B of Part 1260--Contract Provisions
Authority: 42 U.S.C. 2473(c)(1), Pub. L. 97-258, 96 Stat. 1003
(31 U.S.C. 6301 et seq.), and OMB Circular A-110.
Subpart A--General
Sec. 1260.1 Authority.
(a) The National Aeronautics and Space Administration (NASA) awards
grants and cooperative agreements under the authority of 42 U.S.C.
2473(c)(5), the Space Act. This part 1260 is issued under the authority
of 42 U.S.C. 2473(c)(1).
(b) The Office of Management and Budget (OMB) approved information
collection under the Paperwork Reduction Act through September 30, 1998
and assigned OMB control numbers 2700-0047, Property Management and
Control; 2700-0048, Patents; and 2700-0049, Financial Management and
Control. OMB control number 2700-0047 applies to grants subject to
subparts A and B of this part.
Sec. 1260.2 Definitions.
Additional definitions can be found in Sec. 1260.102.
Administrative grant officer. A Federal employee delegated
responsibility for grant administration; e.g., under a delegation from
a NASA grant officer.
Effective date. The date work can begin and the recipient can start
spending grant funds. The effective date could be earlier or later than
the date of signature on a basic award or modification.
Extension. A modification of an award, which would otherwise
expire, to provide additional time, and if appropriate, additional
funds for completion of project activities.
Grant specialist. A Government employee who is assigned the
responsibility of negotiating and/or administering grants.
Historically Black Colleges and Universities. Institutions
determined by the Secretary of Education to meet the requirements of 34
CFR 608.2 and listed therein.
Minority educational institution. An institution determined by the
Secretary of Education to meet the requirements of 34 CFR 637.4.
Multiple year grant. A grant for which NASA obligates funds for an
initial period and states an intention to obligate funds for one or
more additional periods. The initial period together with the unfunded
periods exceeds one year (see Sec. 1260.13(b)).
Non-profit organization. An organization that qualifies for the
exemption from taxation under Sec. 501 of the Internal Revenue Code of
1954, as amended, 26 U.S.C. 501.
Performance Report. A concise statement of work accomplished during
the report period (see Sec. 1260.75(e)).
Provision. A term or condition applicable to grants awarded under
this part 1260 (see Sec. 1260.20).
Recipient acquired equipment. Equipment purchased or fabricated
with grant funds by a recipient for the performance of work under its
grant.
Small business concern. A concern, including its affiliates, which
is independently owned and operated, not dominant in the field of
operation in which it is bidding, and qualifies as a small business
under the criteria and size standards in 13 CFR part 121.
Small disadvantaged business concern. A small business concern
owned and controlled by individuals who are both socially and
economically disadvantaged (within the meaning of Sec. 8(a (5) and (6)
of the Small Business Act, as amended; 15 U.S.C. 637(a (5) and (6); and
13 CFR 24).
Special condition. A term or condition that is not applicable to
all grants or is temporary in nature (see Sec. 1260.50).
Summary of Research. A document summarizing the results of the
entire project, which includes bibliographies, abstracts, and lists of
other media in which the research was discussed (see
Sec. 1260.75(f)(1)).
Supplement. The document NASA uses to effect changes and renewals
to grants and cooperative agreements. They can be awarded unilaterally
at the discretion of the grant officer.
Women-owned small business concern. A small business concern that
is at least 51 percent owned by women who are U.S. citizens and who
also control and operate the business (15 U.S.C. 637(d)).
Sec. 1260.3 Applicability.
Subparts A and B of this part 1260 establish policies and
procedures for all grants and cooperative agreements awarded by NASA to
educational institutions and other non-profit organizations.
Sec. 1260.4 Amendment.
This part 1260 will be amended by publication of changes in the
Federal Register. Changes that require immediate dissemination may be
issued as Grant Notices.
Sec. 1260.5 Publication.
(a) The NASA Grant and Cooperative Agreement Handbook is published
as part 1260 of title 14 of the Code of Federal Regulations (CFR).
(b) Subscriptions to the NASA Grant and Cooperative Agreement
Handbook may be purchased from the Superintendent of Documents, United
States Government Printing Office, Washington, DC 20402, telephone
number (202) 512-1800. Requests should cite GPO Subscription Stock No.
933-001-00000-8. A subscription consists of the basic edition, plus all
changes issued for an indefinite period.
Sec. 1260.6 Deviations.
(a) A deviation is required for any of the following.
(1) When a prescribed provision (but not a special condition) set
forth verbatim in this part 1260 is modified or omitted.
(2) When a provision is set forth in this part 1260, but not for
use verbatim, and the Center substitutes a provision which is
inconsistent with the intent, principle, and substance of the
provision.
(3) When a form prescribed by this part 1260 is altered or another
form is used in its place.
[[Page 38061]]
(4) When limitations, imposed by this handbook upon the use of a
grant provision, form, procedure, or any other grant action, are
changed.
(5) When a form is created for recipient use that constitutes a
``Collection of Information'' within the meaning of the Paperwork
Reduction Act (44 U.S.C. 35) and its implementation in 5 CFR part 1320.
(b) Requests for authority to deviate from this part 1260 shall be
submitted to the Office of Procurement, NASA Headquarters, Contract
Management Division (Code HK). Requests, signed by the Procurement
Officer, shall contain:
(1) A full description of the deviation, the circumstances in which
it will be used, and identification of the requirement from which a
deviation is sought;
(2) The rationale for the request, pertinent background
information, and the intended effect of the deviation;
(3) The name of the recipient, identification of the grant
affected, and the dollar value;
(4) A statement as to whether the deviation has been requested
previously, and, if so, details of that request; and
(5) A copy of legal counsel's concurrence or comments.
(c) Where it is necessary to obtain a deviation on OMB Circular A-
110 (Subpart B of this part), Code HK will process all necessary
documents in accordance with Sec. 1260.104.
Pre-Award Requirements
Sec. 1260.10 Proposals.
(a) A grant can result from:
(1) An NRA, AO, CAN or BAA. A proposal submitted in response to a
broad agency announcement (BAA) such as a NASA Research Announcement
(NRA), Announcement of Opportunity (AO), Cooperative Agreement Notice
(CAN), an agencywide program announcement such as the Graduate Student
Research Program, or after approval by the Associate Administrator for
Procurement or designee. NRA's and BAA's are described in the NASA FAR
Supplement (NFGS) 48 CFR part 1835. AO's are described in 48 CFR part
1870, subpart 1870.1.
(2) An unsolicited proposal. Guidance on unsolicited proposals is
contained in the Federal Acquisition Regulation (FAR) 48 CFR subpart
15.5 and NFS 48 CFR subpart 1815.5. The synopsis requirement in FAR 48
CFR 15.507(b)(4), however, does not apply to the grant process. Contact
with NASA technical personnel prior to proposal submission is
encouraged to determine if preparation of a proposal is warranted.
These discussions should be limited to understanding NASA research
needs and do not jeopardize the unsolicited status of any subsequently
submitted proposal.
(b) The proposal shall contain a detailed narrative description of
the work to be undertaken, including the objectives of the project and
the applicant's plan for carrying it out.
(1) Budget content. All proposals shall include budget data as
prescribed in the Budget Summary in Exhibit C of the appendix to this
subpart A of this part 1260. Narrative detail must support the budgets
as designated in Exhibit C to Appendix to this subpart.
(i) Cost issues. The recipient institution is responsible for
ensuring that costs charged are allowable, allocable, and reasonable
under the applicable cost principles governed by OMB Circular Nos. A-21
and A-122. For other details see Sec. Sec. 1260.25 and 1260.127.
(ii) Indirect Costs. Subject to applicable cost principles, rates
are negotiated between recipients and the cognizant agencies assigned
under OMB Circular No. A-21. NASA is required to apply the negotiated
rate for all grants awarded.
(iii) Cost sharing. NASA may accept cost sharing when voluntarily
offered, and all awards including cost-sharing are subject to
Sec. Sec. 1260.13(c) and 1260.123. The amount of cost sharing will not
be a factor in determining whether to select a proposal for award.
However, recipients may be requested to secure nonfederal matching
funds equal to the program portion to training and education grants.
(2) Multiple year grants. In accordance with NASA policy to foster
continuity of research, multiple year grant proposals are encouraged,
where appropriate, for a period generally up to three years. Continuing
research programs will be subject to peer evaluation at least once
every three years. Proposals for multiple year grants shall describe
the entire research project and include a complete budget for year one
and separate estimates for each subsequent year (see Sec. 1260.13(b)).
(c) Certifications and assurances shall be made in accordance with
Sec. 1260.117, as follows.
(1) Civil rights requirements. Annually, recipients must furnish
assurances on NASA Form 1206 of compliance with civil rights statutes
specified in 14 CFR parts 1250 through 1252.
(2) Debarment and suspension, drug-free workplace, and lobbying.
NASA grants are subject to the provisions of: 14 CFR part 1265,
Governmentwide Debarment and Suspension (Nonprocurement);
Governmentwide requirements for Drug-Free Workplace (Grants), unless
excepted by Sec. 1265.110 or Sec. 1265.610; and 14 CFR part 1271 ``New
Restrictions on Lobbying.'' These certifications are required to be
submitted with each proposal, including extensions. NASA does not
require any particular form or format, but does require specific
language.
Sec. 1260.11 Evaluation and selection.
(a) General. Technical evaluation of proposals will be conducted by
the cognizant NASA technical office and may be based on peer reviews.
(b) Under NRA's, AO's, CAN's, and other BAA's. The selecting
official will furnish the grant officer a signed selection statement
and a technical evaluation based on the evaluation criteria stated in
the NRA, AO, CAN, or BAA. If a proposal is not selected, the proposer
will be notified in accordance with the NRA, AO, CAN, or BAA.
(c) Under unsolicited proposals. (1) The evaluation of unsolicited
proposals must consider:
(i) If the subject of the proposal is available to NASA from
another source without restriction.
(ii) If the proposal closely resembles a pending competitive
acquisition or a current, open BAA's under which the unsolicited
proposal could be evaluated.
(iii) If the research proposed demonstrates an innovative and
unique method, approach, or concept.
(iv) The proposals overall scientific or technical merit.
(v) The potential contribution to NASA's mission.
(vi) The offeror's capabilities, related experience, facilities,
techniques, or unique combinations of these which are integral factors
for achieving the proposal objectives.
(vii) The qualifications, capabilities, and experience of the
proposed principal investigator, team leader, or key personnel who are
critical in achieving the proposal objectives.
(2) An unsolicited proposal recommended for acceptance shall be
supported by a Justification for Acceptance of an Unsolicited Proposal
(JAUP) prepared by the cognizant technical office. The JAUP shall be
submitted for the approval of the grant officer after review and
concurrence at a level above the technical officer. The grant officer's
signature on the award document will indicate approval.
(3) NASA will promptly notify in writing each organization that
submitted a proposal that will not be funded.
[[Page 38062]]
Proposals will be returned only when requested.
(d) Equipment justification or travel justification. These
documents will be submitted by the technical office for grant officer
approval when more than half of the proposed budget is for equipment or
travel and associated indirect cost. The justification shall describe
the extent to which the equipment or travel is necessary.
(3) Proposal budget evaluation. (1) The technical officer will
review the budget for conformance to program requirements and fund
availability, indicating the results of this review in Column B of the
proposed budget.
(2) The grant officer will review the budget, and any changes made
by the technical officer, to identify any item which may be unallowable
under the cost principles, or which appear unreasonable or unnecessary.
The grant officer will complete Column C of the proposed budget after
discussing significant changes with the recipient. Any request for
details should be limited.
(f) Incremental funding. NASA reserves the right to either fully
fund or incrementally fund grants. Grants with anticipated annual
funding exceeding $50,000 may be funded for less than the amount stated
in the proposal, provided:
(1) Two increments per grant year are authorized. The second
increment will be the balance of funding for the year.
(2) The special condition Sec. 1260.53, Incremental Funding, is
included in the grant.
(g) Printing, binding, and duplicating. Proposals for efforts that
involve printing, binding, and duplicating in excess of 25,000 pages
are subject to the Government Printing and Binding Regulations, No. 26,
February 1990, S. Pub. 101-9, U.S. Government Printing Office,
Washington, DC 20402, (202) 512-1800, published by the Congressional
Joint Committee on Printing. The technical office will refer such
proposals to the Installation Central Printing Management Officer
(ICPMO). The grant officer will be advised in writing of the results of
the ICPMO review.
(h) Rights in data. Section 1260.29 is adequate only for grants for
basic or applied research where the principal purpose (or only expected
NASA involvement) is the publication or dissemination of the results,
such as in journals or NASA publications (see Sec. 1260.21).
(i) Clean Air and Federal Water Pollution Control Acts.
(1) By accepting a grant that contains Sec. 1260.33, the recipient
agrees that the expenditure of grant funds is in compliance with the
Acts.
(2) The Administrator may approve exemptions from this prohibition
under certain circumstances under E.O. 11738. Requests for exemptions
or renewals thereof shall be made to the Office of Procurement, NASA
Headquarters, Contract Management Division (Code HK), Washington, DC
20546.
Sec. 1260.12 Choice of award instrument.
(a) This section and Sec. 1260.111 provide guidance on the
appropriate choice of award instruments consistent with 31 U.S.C. 6301
to 6308. Throughout Sec. 1260.12, the term ``grant'' does not include
``cooperative agreements.''
(b) A procurement contract is a mutually binding legal relationship
obligating the seller to furnish supplies or services (including
construction), and the buyer pays for them.
(1) The principal purpose of a procurement contract is to acquire,
for NASA's direct use or benefit, a well-defined, specific effort
clearly required for the accomplishment of a scheduled NASA mission or
project.
(2) If it is determined that a procurement contract is the
appropriate type of funding instrument to meet NASA's purposes, the
procurement shall be conducted under the FAR and the NFS.
(c) A grant shall be used as the legal instrument to reflect a
relationship between NASA and a recipient whenever the principal
purpose is the transfer of a thing of value to the recipient to
accomplish a public purpose of support or stimulation authorized by
Federal statute. The following general characteristics meet the
statutory criteria for use of a grant:
(1) Substantial involvement is not expected between NASA and the
recipient when carrying out the activity.
(2) The exact course of the work and its outcome cannot be defined
precisely and specific points in time for achievement of significant
results cannot be realistically specified.
(3) Simplicity and economy in execution and administration are
mutually desirable.
(4) Grants are distinguished from contracts in that grants provide
financial or other tangible assistance to the recipient to carry on a
fairly autonomous research program.
(d) The following defines various types of NASA grants:
(1) A research grant is used to accomplish a NASA objective through
stimulating or supporting the acquisition of knowledge or understanding
of the subject or phenomena under study, or attempting to determine and
exploit the potential of scientific discoveries or improvements in
technology, materials, processes, methods, devices, or techniques and
advance the state of the art.
(i) The research requires long term support (i.e., in excess of one
year) for the study to mature to maximum scientific effectiveness (this
does not preclude shorter-term grants;
(ii) NASA desires, or the nature of the proposed investigation is
such, that the recipient will bear prime responsibility for the conduct
of research, and exercises judgment and original thought toward
attaining the scientific goals within broad parameters of the research
areas proposed and the resources provided;
(iii) Meaningful technical reports (as distinguished from
Performance Reports) can be prepared only as new findings are made,
rather than on a predetermined time schedule.
(2) An education grant is an agreement that provides funds to an
educational institution or other nonprofit organizations within one or
more of the following areas:
(i) Capturing student interest and/or improving student performance
in science, mathematics, technology, or related fields;
(ii) Enhancing the skill, knowledge, or ability of teachers or
faculty members in science, mathematics, or technology;
(iii) Supporting national educational reform movements;
(iv) Conducting pilot programs or research to increase
participation and/or to enhance performance in science, mathematics, or
technology education at all levels; and
(v) Developing instructional materials (e.g., teacher guides,
printed publications, computer software, and videotapes) or networked
information services for education.
(3) A training grant is an agreement that provides funds to an
educational institution or other non-profit organization solely by
providing scholarships, fellowships, or stipends to students, teachers,
and/or faculty.
(i) NASA training grants are awarded to colleges, universities, or
other non-profit organizations; not to individual students, teachers,
or faculty members. It is the responsibility of the institution
receiving the grant to approve the faculty, teachers, and/or students
who will participate in the specific program, in cooperation with NASA.
If a student, teacher, or faculty member ceases to participate in the
program for any reason, the institution, with prior NASA approval, may
appoint another student, teacher, or faculty member to complete
[[Page 38063]]
the remaining portion of the grant period. Replacement students,
teachers, and/or faculty electing to apply for the following program
year are not automatically entitled to an award and are subject to the
evaluation/selection procedures administered to new applicants. Any
participant receiving support under a NASA training grant may not
concurrently hold another Federal fellowship or traineeship.
(ii) No applicant shall be denied consideration or appointment on
the grounds of race, creed, color, national origin, age, sex, or
disability.
(iii) Students and faculty receiving direct support under a NASA
training grant must be U.S. citizens.
(iv) Duration of the award is program specific. Refer to program
policies and procedures for details. Renewal is contingent upon a
successful performance evaluation as prescribed by the program,
concurrence by the NASA technical officer, and the availability of
funds.
(v) No substantial involvement is expected between NASA and the
recipient. A student or faculty member receiving support under a NASA
training grant does not incur any formal obligation to the Government.
(vi) Unused funds may be carried over into the following program
year without further NASA approval. This carry-over amount need not be
shown in the budget for the next program year.
(vii) The use of training grant funds to acquire equipment,
passenger carrying vehicles, land (or any interest therein), or to
acquire or construct facilities will not be permitted. Government
furnished equipment will not be provided.
(viii) All foreign travel must be clearly essential to the research
effort and must, to be charged to a grant, have the prior written
approval of the NASA technical officer and the grant officer for each
trip, regardless of its inclusion in the proposal budget.
(ix) An Administrative Report must be submitted under the
guidelines described by the specific program policies and procedures.
(4) A facilities grant can be issued by NASA under the authority of
the Space Act, 42 U.S.C. 2473(c)(5). It is used to provide for the
acquisition, construction, use, maintenance, and disposition of
facilities. Facilities, as used in this subpart, means property used
for production, maintenance, research, development, or testing.
(i) Prior approval by the Associate Administrator of Procurement
and a review by legal counsel to assure legal sufficiency are required.
It is unlikely an award will be made unless Congressionally mandated.
(ii) To obtain approval, prior to proceeding with the award a
package will be forwarded to the Director, Contract Management Division
(HK), that includes pertinent background information, detailed
rationale for the request, dollar value, and name of the recipient.
(e) A cooperative agreement shall be used as the legal instrument
to reflect a relationship between NASA and a recipient whenever the
principal purpose is the transfer of a thing of value to the recipient
to accomplish a public purpose of support or stimulation authorized by
Federal statute and substantial involvement is expected between NASA
and the recipient during performance of the contemplated activity.
Under 31 U.S.C. 6305, characteristics inherent in a cooperative
agreement include those that apply to a grant, plus the following:
(1) Substantial NASA involvement in and contribution to the
technical aspects of the effort are necessary for its accomplishment.
This could involve an active NASA role in collaborative relations,
access to a NASA site or equipment, or sharing NASA facilities and
personnel;
(2) The project, conducted as proposed, would not be possible
without extensive NASA-recipient technical collaboration;
(3) The nature of the collaboration can be clearly defined and
specified in advance (special provision Sec. 1260.51 shall be used).
Cooperative agreements would be appropriate, for instance, where a
university investigator works for a substantial amount of time at a
NASA Center (or a NASA investigator works at a university), or when the
collaboration is such that a jointly authored report or education
curriculum product is appropriate.
(f) Grants and cooperative agreements with foreign organizations
are awarded under the authority of the Space Act, 42 U.S.C. 2473(c)(5).
(1) Before initiating action, the grant officer shall coordinate
with the Headquarters Office of External Relations, International
Relations Division (Code IR). Grants to other than foreign government
institutions require a review by the Office of General Counsel.
(2) It is NASA policy that, in general, research will be
accomplished on a no-exchange-of-funds basis with foreign entities. In
these cases, NASA enters into agreements undertaking projects of
international scientific collaboration. In rare instances, NASA may
enter into an international agreement under which funds will be
transferred to a foreign recipient.
Sec. 1260.13 Award procedures.
(a) Multiple year grant. NASA policy is to make maximum use of
multiple year grants to support research projects that may span several
years.
(1) At the time a research proposal is recommended for award, a
decision will be made whether to award a multiple year grant. Special
condition Sec. 1260.52, Multiple Year Grant, would be included at
award.
(i) For the periods approved in Sec. 1260.52, neither a new
proposal nor another technical evaluation is required unless a special
need for review is indicated through monitoring the project and its
reports, by the introduction of work outside the scope of the approved
proposal, or by the need for substantial unanticipated funding.
(ii) A funded extension beyond the period listed in Sec. 1260.52
may be made by using the provision Sec. 1269.22, Extensions. This
requires the submission of a new proposal, subject to full review as
discussed in Secs. 1260.11 and 1260.71(b), plus consideration of the
timely submission of reports as required in Sec. 1260.21.
(2) Normally, each year of a multiple year grant will be funded at
the approximate level in the original award instrument. However, NASA
program constraints and developments within the project may dictate
adjustment in the originally anticipated level. When the actual differs
from the planned funding, the technical officer shall mark up Column B
of the budget summary and send it to the grant officer with an
explanation. The recipient may rebudget under the grant provisions to
keep the project within the funding actually provided.
(b) Annual grant. Grants may be awarded for a short term (e.g., on
an annual basis) and may be extended, if appropriate, as described in
Sec. 1260.71. Extensions should be executed prior to the grant
expiration date.
(c) Cost sharing. NASA grant recipients usually gain no measurable
benefit from grants, other than conducting the research. Cost sharing
based on mutuality of interest applies to NASA grants where the grant
officer has reason to believe that the recipient will benefit from the
research results through sales to non-Federal entities (see
Sec. 1260.123) When cost sharing is used, the grant officer shall use a
Special Condition substantially as shown in Sec. 1260.54.
(d) Partial support. NASA may provide partial support for a
research project or conference where additional funding may be provided
by other Federal agencies. If the grant also involves cost sharing by
the recipient,
[[Page 38064]]
the grant officer will ensure that Sec. 1260.54 applies only to the
non-Federal funding.
Sec. 1260.14 Limitations.
(a) As a matter of policy, NASA does not award grants to commercial
firms. However, Cooperative Agreements may be awarded to commercial
firms in accordance with Sec. 1260.300.
(b) NASA does not award grants for donative assistance purposes,
but only to meet program objectives. Research in any academic
discipline related to NASA interests normally will qualify. However,
advice of legal counsel should be sought in unusual situations, or when
unusual project activities or organizational attributes are evident.
(c) It is NASA's policy that non-monetary (zero dollar) grants or
cooperative agreements shall not be used (except for no-cost
extensions). Loans of Government personal property not associated with
a contract, grant, or cooperative agreement under 31 U.S.C. 6301 to
6308, and made under the Space Act of 1958, should be consummated as
loan agreements.
(d) Grants and cooperative agreements shall not be used as legal
instruments for consulting service arrangements (see 48 CFR subpart
37.2 (FAR) and 48 CFR subpart 18237.2 (NFS)).
Sec. 1260.15 Format and numbering.
(a) General, A grant shall be brief, containing only those
provisions and special conditions necessary to protect the interests of
the Government.
(b) Formats. Those shown in Exhibit B of the appendix to this
subpart A shall be used for the award of all NASA grants and
cooperative agreements. Computer-generated versions are allowed.
Provisions for grants with U.S. organizations shall be incorporated by
reference, and preprinted checklists may be used. Special conditions
and provisions for grants with foreign organizations will be printed in
full text. An acceptance block may be added when the grant officer
finds it necessary to require bilateral execution of the grant. When
attaching detailed budgets, salaries will not be revealed.
(c) The identification numbering system. (1) For research,
education, and facilities grants, numbering shall conform to NFS 48 CFR
1804.7102-3, except that a NAG prefix will be used in lieu of the NAS
prefix The prefix designation will include the Center Identification
Number; e.g., NAG5 would be the Goddard prefix designation. They will
be sequentially numbered.
(2) Cooperative agreements will use the prefix NCC plus the Center
Identification Number. They will be sequentially numbered.
(3) Training grants will use the prefix NGT plus the Center
Identification Number. They will be sequentially numbered.
(4) The Catalog of Federal Domestic Assistance (CFDA) Numbers does
not apply to NASA grants.
Sec. 1260.16 Distribution.
Copies of grants and supplements will be provided to: payment
offices (original copy); technical officers; administrative grant
officers when delegated; the NASA Center for AeroSpace Information
(CASI), Attn: Document Processing Section, 800 Elkridge Landing Road,
Linthicum Heights, Maryland 21090-2934; and other appropriate offices.
The statement of work accepted by NASA and a copy of the approved
budget will be provided to the administrative grant officers. CASI will
also receive the statement of work. The file will record the addresses
for distribution.
Provisions
Sec. 1260.20 Provisions.
(a) The provisions set forth in Secs. 1260.21 through 1260.37 shall
be incorporated by reference and made a part of NASA research grants,
education grants, and cooperative agreements with U.S. educational
institutions and nonprofit organizations.
(b) In training grants, the provisions of the following section
will be incorporated: Secs. 1260.22, 1260.23, 1260.25, 1260.26, 126.28,
1260.29, 1260.31, and 1269.35.
(c) In facilities grants, provisions will be selected on a case-by-
case basis.
(d) In research grants awarded to foreign organizations, the
provisions of the following sections, modified as necessary, will be in
full text: Secs. 1260.21, 1260.22, 1260.23, 120.24, 1260.26, 1260.27,
1260.32, and 1260.36. References will not be used to handbooks,
statutes, or other regulations which the recipient may neither have
access to or can realistically be expected to comply.
(e) Whenever the word ``grant'' appears in sections Secs. 1260.21
through 1260.38, it shall be deemed to include, as appropriate, the
term ``cooperative agreement''.
(f) Section 1260.148 and Appendix A to subpart B to part 1260
address provisions to be used in contracts awarded by recipients.
Sec. 1260.21 Publications and reports.
Publications and Reports (July 1996)
(a) NASA encourages the widest practicable dissemination of
research results at any time during the course of the investigation.
All information disseminated as a result of the grant shall contain
a statement which acknowledges NASA's support and identifies the
grant by number (e.g., ``The material is based upon work supported
by NASA under award No(s) ________'').
(b) Reports shall be in the English language, informal in
nature, and ordinarily not exceed three pages (not counting
bibliographies, abstracts, and lists of other media). The recipient
shall submit the following reports:
(1) A Performance Report for all but the final year of the
grant. Each report is due 60 days before the anniversary date of the
grant and shall briefly describe what was accomplished during the
reporting period as outlined in Sec. 1260.151(d). A special
provision specifying more frequent reporting may be required.
(2) A Summary of Research (or Educational Activity Report in the
case of Education Grants) is due within 90 days after the expiration
date of the grant, regardless of whether or not support is continued
under another grant. This report shall be comprehensive summary of
significant accomplishments during the duration of the grant.
(c) Performance Reports, Summaries of Research, and Education
Activity Reports shall include the following on the first page:
(1) Title of the grant.
(2) Type of report.
(3) Name of the principal investigator.
(4) Period covered by the report.
(5) Name and address of the recipient's institution.
(6) Grant number.
(e) Performance Reports, Summaries of Research, and Education
Activity Reports shall be distributed as follows:
(1) The Original to the administration grant officer, with a
notice to the grant officer that a report was sent.
(2) One copy, in both hard copy and electronic format, to the
technical officer.
(f) For Summaries of Research and published reports, one Micro-
reproducible copy shall be sent to the NASA Center for AeroSpace
Information (CASI), Attn: Accessioning Department, 800 Elkridge
Landing Road, Linthicum Heights, Maryland 21090-2934.
Sec. 1260.22 Extensions.
Extensions (July 1996)
(a) It is NASA policy to provide maximum possible continuity in
funding grant--supported research and educational activities,
therefore, grants may be extended for additional periods of time.
Any extension requiring additional funding should be supported by a
proposal submitted at least three months is advance of the
expiration date of the grant.
(b) Recipients may extend the expiration date of a grant if
additional time beyond the established expiration date is required
to assure adequate completion of the original scope of work within
the funds already made available. For this purpose, in accordance
with Sec. 1260.125(e)(2), the recipient may unilaterally make a one-
time no-cost
[[Page 38065]]
extension, not to exceed 12 months, prior to the established
expiration date. Written notification of such an extension, with the
supporting reasons, must be received by the grant officer at least
ten days prior to the expiration of the award.
(c) Requests for approval for all other extensions (in excess of
30 days) must be submitted in writing to the grant officer.
Sec. 1260.23 Termination and Enforcement.
Termination and Enforcement (July 1996)
Termination and enforcement conditions of this award are
specified in Secs. 1260.160 through 1260.162. If NASA determines
that the recipient has materially failed to comply with the terms
and conditions of the grant, NASA may suspend or terminate the grant
in whole or in part after consultation with the recipient. However,
NASA may immediately suspend or terminate the award without prior
notice when it believes such action is necessary to protect the
interest of the Government.
Sec. 1260.24 Change in principal investigator or scope.
Change in Principal Investigator or Scope (July 1996)
The recipient organization and the principal investigator are
responsible for the effective conduct of the project or activity
supported by this award.
(a) The recipient shall obtain the approval of the NASA grant
officer to change the principal investigator or to continue the
research work during a continuous period in excess of three months
without the participation of an approved principal investigator.
Significantly reduced availability of the services of the principal
investigator(s) named in the grant instrument could be grounds for
termination, unless alternatives arrangements are made and approved
in writing by the grant officer.
(b) Prior written approval is required from NASA if there is to
be a significant change in the objective or scope.
Sec. 1260.25 Allowable costs.
Allowable Costs (July 1996)
(a) The recipient institution is responsible for ensuring that
costs charged to this award are allowable, allocable, and reasonable
under the applicable cost principles defined in Sec. 1260.127.
Sections 1260.24, 1260,27, 1260.32, and requests for additional
funding require prior approvals.
(b) Payments to individuals for consultant services under a NASA
grant shall not exceed the daily equivalent of the maximum rate paid
for Level IV of the Executive Schedule, exclusive of expenses and
indirect cost.
(c) Recipients may incur pre-award costs 90 calendar days prior
to award, provided the costs are necessary for the effective and
economical conduct of the project and are otherwise allowable under
the terms of the grant. All preaward costs are incurred at the
recipient's risk. NASA is under no obligation to reimburse such
costs if an award is not subsequently made, or if an award is made
for a lesser amount than the recipient anticipated and is
insufficient to cover the pre-award costs.
(d) Comptroller General decisions govern allowability of costs
for international air transportation (see Sec. 1260.37).
Sec. 1260.26 Financial management.
Financial Management (July 1996)
(a) Payment. Advance payments by electronic funds transfer will
be made by the Financial Management Office of the NASA Center which
issued the grant in accordance with procedures provided to the
recipient. The recipient shall submit Federal Cash Transaction
Reports (SF 272) to the aforementioned office and, if NASA has
delegated administration, to the administrative grant officer,
within 15 working days following the end of each Federal fiscal
quarter, containing current estimates of the cash requirements for
each of the four months following the quarter being reported. The
final SF 272 is due within 90 days after the expiration date of the
grant.
(b) Management and records. Financial and program management
requirements of Secs. 1260.120 through 1260.128 apply to all
recipients. Financial records, supporting documents, statistical
records, and all other records pertinent to this award shall be
retained in accordance with Sec. 1260.153. Provisions of
Sec. 1260.26(c) shall apply to subcontractors performing substantive
work under this grant.
(c) Unexpended balances. Any unexpended balance of funds which
remains at the end of any funding period, except the final funding
period of the grant, shall be carried over to the next funding
period, and may be used to defray costs of any funding period of the
grant. The estimated amount of unexpended funds shall be identified
in the grant budget section of the recipient's renewal proposal.
(d) Program income will be subject to Sec. 1260.124.
(e) Provisions of Sec. 1260.26(c) shall apply to subcontractors
performing substantive work under this grant.
Sec. 1260.27 Equipment and other property.
Equipment and Other Property (July 1996)
(a) NASA permits acquisition of special purpose equipment (as
defined in OMB Circulars A-21 and A-122) specifically required and
only used for research, medical, scientific or other technical
activities.
(1) Acquisition of special purpose equipment, costing in excess
of $5,000 and not included in the approved proposal budget, requires
the prior approval of the administrative grant officer (unless the
item is merely a different model of an item in the approved proposal
budget).
(2) Title to special purpose equipment acquired by the recipient
with grant funds, valued under $5,000 in acquisition cost, shall
vest in the recipient and will be considered ``exempt'' in
accordance with Sec. 1260.133(b).
(3) NASA may elect to take title to items of special purpose
equipment valued at more than $5,000 (acquisition cost each) or when
fabricated into a single coherent system (aggregate acquisition
cost). The recipient will be advised of the Government's intention
to take title in writing if the item is approved for recipient
purchase. If the Government does not exercise its right to take
title to property acquired by the recipient with grant funds at the
time of approval, the property will be considered exempt according
to Sec. 1260.133(b). The recipient shall hold title without further
obligation to the Federal Government.
(b) General purpose equipment items require the prior approval
of the Grant Officer to be a direct charge, shall be titled to NASA,
managed in accordance with Sec. 1260.134(f), and reported in
accordance with Sec. 1260.27(e).
(c) Grant funds may be expended for the acquisition of land or
interests therein or for the acquisition and construction of
facilities only under a facilities grant, as defined in
Sec. 1260.12(g).
(d) The recipient shall maintain a property management system
which meets the requirements of Secs. 1260.130 through 1260.137. The
cognizant property administration officer or property administrator
shall be notified of any major change to an approved system.
(e) The recipient shall submit an Inventory Report, to be
received no later than October 31 of each year, which lists all
Federally owned property in its custody as of September 30. A Final
Inventory Report of Federally Owned Property, including equipment
where title was taken by the Government, will be submitted by the
recipient no later than 60 days after the expiration date of the
grant.
(1) All reports will include the information listed in paragraph
(f)(1) of Sec. 1260.134, Equipment.
(2) Negative responses in the Final Inventory Report, when there
is no reportable equipment, are required.
(3) The original of each report shall be submitted to the Center
Deputy Chief Financial Officer (Finance). Copies shall be furnished
to the Center industrial property officer and to ONR .
Sec. 1260.28 Patent rights.
Patent Rights (July 1996)
This award is subject to the provisions of 37 CFR 401.3(a) which
requires use of the standard clause set out at 37 CFR 401.14
``Patent Rights (Small Business Firms and Nonprofit Organizations)''
and the following:
(a) Where the term ``contract'' or ``contractor'' is used in the
``Patent Rights'' clause, the term shall be replaced by the term
``grant'' or ``recipient,'' respectively.
(b) In each instance where the term ``Federal Agency,''
``agency,'' or ``funding Federal agency'' is used in the ``Patent
Rights'' clause, the term shall be replaced by the term ``NASA.''
(c) The NASA regulation applicable to paragraph (e) of the
``Patent Rights'' clause is at 37 CFR Part 404, Licensing of
Government-owned Inventions.
(d) The following item is added to the end of paragraph (f) of
the ``Patent Rights'' clause:
(5) The recipient shall include a list of all Subject Inventions
required to be disclosed during the preceding year in the
performance report, technical report, or renewal proposal, and a
complete list (or a negative statement)
[[Page 38066]]
for the entire award period shall be included in the summary of
research.
(e) The term ``subcontract'' in paragraph (g) of the ``Patent
Rights'' clause shall include purchase orders.
(f) The NASA implementing regulation for paragraph (g)(2) of the
``Patent Rights'' clause is at 48 CFR 1827.373(b).
(g) The following requirement constitutes paragraph (1) of the
``Patent Rights'' clause:
(1) Communications. A copy of all submissions or requests
required by this clause, plus a copy of any reports, manuscripts,
publications or similar material bearing on patent matters, shall be
sent to the Center Patent Counsel and the administrative grant
officer in addition to any other submission requirements in the
grant provisions. If any reports contain information describing a
``subject invention'' for which the recipient has elected or may
elect to retain title, NASA will use reasonable efforts to delay
public release by NASA or publication by NASA in a NASA technical
series until an application filing date has been established,
provided that the recipient identify the information and the
``subject invention'' to which it relates at the time of submittal.
If required by the administrative grant officer, the recipient shall
provide the filing date, serial number and title, a copy of the
patent application, and a patent number and issue date for any
``subject invention'' in any country in which the recipient has
applied for patents.
h. NASA Inventions. NASA will use reasonable efforts to report
inventions made by NASA employees as a consequence of, or which bear
a direct relation to, the performance of specified NASA activities
under this agreement and, upon timely request, will use reasonable
efforts to grant recipient an exclusive, or partially exclusive,
revocable, royalty-bearing license, subject to the retention of a
royalty-free right of the Government to practice or have practiced
the invention by or on behalf of the Government.
i. In the event NASA contractors are tasked to perform work in
support of specified activities under a cooperative agreement and
inventions are made by contractor employees, and NASA has the right
to acquire or has acquired title to such inventions, NASA will use
reasonable efforts to report such inventions and, upon timely
request, will use reasonable efforts to grant recipient an
exclusive, or partially exclusive, revocable, royalty-bearing
license, subject to the retention of a royalty-free right of the
Government to practice or have practiced the invention by or on
behalf of the Government.
Sec. 1260.29 Rights in data.
Rights in Data (July 1996)
(a) Fully Funded Efforts.
(1) ``Data'' means recorded information, regardless of form, the
media on which it may be recorded, or the method of recording,
created under the grant. The term includes, but is not limited to,
data of a scientific or technical nature, and any copyrightable work
in which the recipient asserts copyright, or for which copyright
ownership was purchased, under the grant.
(2) The recipient grants to the Federal Government, a royalty-
free, nonexclusive and irrevocable license to use, reproduce,
distribute (including distribution by transmission) to the public,
perform publicly, prepare derivative works, and display publicly,
data in whole or in part and in any manner for Federal purposes and
to have or permit others to do so for Federal purposes only. Federal
purposes include competitive procurement but do not include the
right to have or permit others to use data for commercial purposes.
(3) In order that the Federal Government may exercise its
license rights in data, the Federal Government, upon request to the
recipient, shall have the right to review and/or obtain delivery of
data resulting from the performance of work under this grant, and
authorize others to receive data to use for Federal purposes.
(4) If information which recipient considers to embody trade
secrets or to comprise commercial or financial information which is
privileged or confidential is disclosed orally or visually to NASA,
such information must be reduced to tangible, recorded form (i.e.,
converted into data as defined herein), identified and marked with a
suitable notice or legend and furnished to NASA within 10 days after
such oral or visual disclosure, or NASA shall have no duty to limit
or restrict, and shall not incur any liability for, any disclosure
and use of such information.
(b) Cost Sharing and/or Matching Efforts. When the recipient
cost shares with the Government on the effort, the following is
added:
(5) In the event data first produced by recipient in carrying
out recipient's responsibilities under an agreement is furnished to
NASA, and recipient considers such data to embody trade secrets or
to comprise commercial or financial information which is privileged
or confidential, and such data is so identified with a suitable
notice or legend, the data will be maintained in confidence and
disclosed and used by the Government and its contractors (under
suitable protective conditions) only for experimental, evaluation,
research and development purposes, by or on behalf of the Government
for an agreed to period of time, and thereafter for Federal purposes
as defined in Sec. 1260.29(a)(2).
c. Add the following paragraph in Cooperative Agreements. (#) As
to data first produced by NASA in carrying out NASA's
responsibilities under a cooperative agreement and which data would
embody trade secrets or would comprise commercial or financial
information that is privileged or confidential if it has been
obtained from the recipient, such data will be marked with an
appropriate legend and maintained in confidence for an agreed to
period of up to ____ years (insert a period of up to 5 years.) after
development of the information, with the express understanding that
during the aforesaid period such data may be disclosed and used
(under suitable protective conditions) by or on behalf of the
Government for Government purposes only, and thereafter for any
purpose whatsoever without restriction on disclosure and use.
Recipient agrees not to disclose such data to any third party
without NASA's written approval until the aforementioned restricted
period expires.
Sec. 1260.30 National security.
National Security (July 1996)
Normally, NASA grants do not involve classified information.
However, if information is sought or developed by the recipient that
should be classified in the interests of national security, the NASA
grant officer who issued the grant shall be notified immediately.
Sec. 1260.31 Nondiscrimination.
Nondiscrimination (July 1996)
(a) To the extent provided by law and any applicable agency
regulations, this award and any program assisted thereby are subject
to the provisions of Title VI of the Civil Rights Act of 1964 (Pub.
L. 88-352), Title IX of the Education amendments of 1972 (Pub. L.
92-318), 20 U.S.C. 1681 et seq.), Section 504 of the Rehabilitation
Act of 1973 (29 U.S.C. 794), the Age Discrimination Act of 1975
(Pub. L. 94-135), the implementing regulations issued pursuant
thereto by NASA, and the assurance of compliance which the recipient
has filed with NASA.
(b) The recipient shall obtain from each organization that
applies or serves as a subrecipient, contractor or subcontractor
under this award (for other than the provision of commercially
available supplies, materials, equipment, or general support
services) an assurance of compliance as required by NASA
regulations.
(c) Work on NASA grants is subject to the provisions of Title VI
of the Civil Rights Act of 1964 (Pub. L. 88-352; 42 U.S.C. 2000d-l),
Title IX of the Education Amendments of 1972 (20 U.S.C. 1680 et
seq.), section 504 of the Rehabilitation Act of 1973, as amended (29
U.S.C. 794), the Age Discrimination Act of 1975 (42 U.S.C. 6101 et
seq.), and the NASA implementing regulations (14 CFR parts 1250,
1251, and 1252).
Sec. 1260.32 Subcontracts.
Subcontracts (July 1996)
(a) For all subcontracts over $25,000 awarded by the recipient,
the recipient shall provide the following to the NASA grant office
for approval.
(1) A copy of the proposed subcontract.
(2) Basis for subcontractor selection.
(3) Justification for lack of competition when competitive bids
or offers are not obtained.
(4) The subcontract budget and basis for subcontract cost or
price.
(b) The recipient (with the exception of foreign organizations)
shall utilize small business concerns, small disadvantaged business
concerns, Historically Black Colleges and Universities, minority
educational institutions, and women-owned small business concerns as
subcontractors to the maximum extent practicable.
(c) All contracts awarded by a recipient, including small
purchases, shall contain the provisions found in appendix A to
subpart B of part 1260, as applicable.
[[Page 38067]]
Sec. 1260.33 Clean Air and Water.
Clean Air and Water (July 1996)
(Applicable only if the award exceeds $100,000, or a facility to
be used has been the subject of a conviction under the Clean Air Act
(42 U.S.C. 1857c-8(c)(1) or the Federal Water Pollution Control Act
(42 U.S.C. 1857c-8(c)(1) or the Federal Water Pollution Control Act
(33 U.S.C. 1319(c)), and 9s listed by EPA, or if the award is not
otherwise exempt).
The recipient agrees to he following:
(a) Comply with applicable standards, orders or regulations
issued pursuant to the Clean Air Act, as amended (42 U.S.C. 7401, et
seq.) and of the Federal Water Pollution Control Act (33 U.S.C. 1251
et seq.).
(b) That no portion of the work under this award will be
performed in a facility listed on the Environmental Protection
Agency (EPA) List of Violating Facilities on the date that this
award was effective unless and until the EPA eliminates the name of
such facility or facilities from such listings.
(c) Use its best efforts to comply with clear air standards and
clean water standards at the facility in which the award is being
preformed.
(b) Insert the substance of the provisions of this clause into
any nonexempt subward or contract under the award.
(e) Report violations to NASA or to EPA.
Sec. 1260.34 Procurement standards.
Procurement Standards (July 1996)
a. The recipient shall maintain a procurement system which, at a
minimum, meets the requirements set forth in Secs. 1260.140 through
1260.148.
b. Procurement programs funded with Federal funds shall give
preference to he purchase of recycled products pursuant to EOA
guidelines.
Sec. 1260.35 Foreign national employee investigative requirements.
Foreign National Employee Investigative Requirements (July 1966)
(a) The recipient agrees to provide the information requested by
NASA to allow the recipient's access to a NASA Center for
performance of this grant. All visit requests must be submitted in a
timely manner in accordance with instructions provided by the
Center(s) to be visited.
(b) The recipient acknowledges that NASA reserves the right to
perform security checks on foreign national visitors, and to deny or
restrict access to a NASA Center, facility, computer system, or
technical information in the interest of national security.
Sec. 1260.36 Travel and transportation.
Travel and Transportation (July 1996)
(a) The Fly America Act, 49 U.S.C. 40118, requires the recipient
to use U.S. flag air carriers for international air transportation
of personnel and property to he extent that service by those
carriers is available.
(b) Department of Transportation regulations, 49 CFR part 173,
govern recipient shipment of hazardous materials and other items.
Special Conditions
Sec. 1260.50 Special conditions.
(a) In addition to the provisions set forth in Secs. 1260.21
through 1260.37, NASA grants are subject to special conditions,
which either are not applicable to all awards or are temporary in
nature. Examples are found in Secs. 1260.51 through 1260.66, but
NASA may impose other conditions as discussed in Sec. 1260.114 or as
the requirements dictate. A deviation to this handbook is not
required for changes to special conditions.
(b) Special conditions will be printed in full text.
(c) For training grants, use Sec. 1260.57 plus any other special
conditions necessary.
(d) In facilities grants, special conditions will be selected on
a case-by-case basis. As appropriate, the requirements of the
following sections will apply: Secs. 1260.132, Real property;
1260.123(c), Cost sharing or matching; and 1260.125(h), Revision of
budget and program plans.
(e) Research grants with foreign organizations will include
special conditions Secs. 1260.58 through 1260.62, modified as
necessary, when not covered under a Memorandum of Agreement (MOA).
In addition, other clauses (e.g., Secs. 1260.63 through 1260.66)
will be written with the aid of General Counsel, and added when
necessary.
Sec. 1260.51 Cooperative agreement special condition.
Cooperative Agreement Special Condition (July 1996)
(a) This award is a cooperative agreement as it is anticipated
there will be substantial NASA involvement during performance of the
effort. NASA and the recipient mutually agree to the following
statement of anticipated cooperative interactions which may occur
during the performance of this effort:
(Reference the approved proposal that contains a detailed
description of the work and insert a concise statement of the exact
nature of the cooperative interactions that deals with existing
facts and not contingencies.)
(b) The terms ``grant'' and ``recipient'' mean ``cooperative
agreement'' and ``recipient of cooperative agreement,''
respectively, wherever the terms appear in provisions and special
conditions included in this agreement.
(c) NASA's ability participate and perform its collaborative
effort under this cooperative agreement is subject to the
availability of appropriated funds and nothing in this cooperative
agreement commits the United States Congress to appropriate funds
therefor.
Sec. 1260.52 Multiple year grant.
Multiple Year Grant (July 1996)
This is a multiple year grant. Contingent on the availability of
funds, scientific progress of the project, an continued relevance to
NASA programs, NASA anticipates continuing support at approximately
the following levels:
Second year $________, Anticipated funding date ________.
Third year $________, Anticipated funding date ________.
(Periods may be added or omitted, as applicable).
Sec. 1260.53 Incremental funding.
Incremental Funding (July 1996)
Only $________ of the amount indicated on the face of this award
is available for payment and allotted to this award. NASA
contemplates making an additional allotment in the amount of
$________ by ________. These funds will be obligated as appropriated
funds become available without any action required by the recipient.
The recipient will be given written notification by the NASA grant
officer. NASA is not obligated to reimburse the recipient for the
expenditure of amounts in excess of the total funds allotted by
NASA.
Sec. 1260.54 Cost sharing.
Cost Sharing (July 1996)
(a) NASA and the recipient will share in providing the resources
necessary to perform the agreement. NASA funding and non-cash
contributions (personnel, equipment, facilities, etc.) and the
dollar value of the recipient's cash and/or non-cash contribution
will be on a ____ percent NASA; ____ percent recipient basis.
Criteria and procedures for the allowability and allocability of
cash and non-cash contributions shall be governed by Sec. 1260.123,
Cost Sharing or Matching. The applicable Federal cost principles are
cited in Sec. 1260.127.
(b) The recipient's share shall not be charged to the Government
under this agreement or under any other contract, grant, or
cooperative agreement.
Sec. 1260.55 Reports substitution.
Reports Substitution (July 1996)
Technical Reports may be substituted for the required
Performance Reports. The title page of such reports shall clearly
indicate that the substitution has been made and will show the
period covered by the originally required Performance Report.
Sec. 1260.56 Withholding.
Withhold (July 1996)
Pending receipt of a satisfactorily completed Summary of
Research and/or other reports required under NASA grant No.
________, the Financial Management Office will withhold all payments
under this grant (including advance payments). The grant officer
will notify the NASA Financial Management Office when payments can
resume.
Sec. 1260.57 Training grant reports.
Training Grant Reports (July 1996)
No later than 60 days after the ending date of the grant, the
recipient will provide the NASA Headquarters Office of Human
Resources and Education an Administrative Report that details the
fellow's research and academic progress. Pertinent information
relating to the student, including the degree granted and employment
plans, are to be included. Students are required to submit a
[[Page 38068]]
Student Evaluation Form to the administrative contact at the Center
monitoring the work 90 days prior to the ending date of the
fellowship.
Sec. 1260.58 Interest bearing accounts.
Interest Bearing Accounts (July 1996)
Advances of federal funds shall be maintained in interest-
bearing accounts. Interest earned on federal advances deposited in
such accounts shall be remitted to DHHS at least quarterly, as
instructed by the Financial Management Office of the NASA Center
which issued the grant. Interest amounts up to $250 per year may be
retained by the recipient.
Sec. 1260.59 Choice of law.
Choice of Law (July 1996)
The rights and obligations of the parties to the grant (or
cooperative agreement) shall be ascertainable by recourse to the
laws of the United States of America. However, it is understood that
the laws of the recipient's country will generally apply to
recipient activities within that country.
Sec. 1260.60 Invention reporting and rights.
Invention Reporting and Rights (July 1996)
(a) As used in this provision:
(1) The term ``invention'' means any invention, discovery or
improvement:
(2) The term ``made'' means the conception or first actual
demonstration that the invention is useful and operable.
(b) The recipient shall report promptly to the grant officer
each invention made in the performance of work under this grant. The
report of such invention shall:
(1) Identify the inventor(s) by full name; and
(2) Include such full and complete technical information
concerning the invention as is necessary to enable an understanding
of the nature and operation thereof.
(c) The recipient hereby grants to the Government of the United
States of American, as represented by the Administrator of the
National Aeronautics and Space Administration, the full rights,
title, and interest in and to each such invention throughout the
world except ____________________.
Sec. 1260.61 Public information.
Public Information (July 1996)
Information regarding this grant (including a copy of this award
document) may be released by the recipient without restriction.
However, technical information relating to work performed under this
grant where there was a NASA contribution should be released by the
recipient only after consultation with the NASA Technical Officer.
Sec. 1260.62 Allocation of risk/liability.
Allocation of Risk/Liability (July 1996)
a. With respect to activities undertaken under this agreement,
the recipient agrees not to make any claim against NASA or the U.S.
Government with respect to the injury or death of its employees or
its contractors and subcontractor employees, or to the loss of its
property or that of its contractors and subcontractors, whether such
injury, death, damage or loss arises through negligence or
otherwise, except in the case of willful misconduct.
b. In addition, the recipient agrees to indemnify and hold the
U.S. Government and its contractors and subcontractors harmless from
any third party claim, judgment, or cost arising from the injury to
or death of any person, or for damage to or loss of any property,
arising as a result of its possession or use of any U.S. Government
property.
Sec. 1260.63 Payment--to foreign organizations.
Payment--To Foreign Organizations
(For grants or cooperative agreements with foreign
organizations, this clause will be developed on a case-by-case
basis.)
Sec. 1260.64 Customs clearance and visas.
Customs Clearance and Visas
(For grants or cooperative agreements with foreign
organizations, this clause will be developed on a case-by-case
basis.)
Sec. 1260.65 Taxes.
Taxes
(For grants or cooperative agreements with foreign
organizations, this clause will be developed on a case-by-case
basis.)
Sec. 1260.66 Exchange of technical data and goods.
Exchange of Technical Data and Goods
(For grants or cooperative agreements with foreign
organizations, this clause will be developed on a case-by-case
basis.)
Post-Award Requirements
Sec. 1260.70 Delegation of administration.
(a) Pursuant to the Government-wide ``cross-servicing'' policy,
NASA grants and cooperative agreements shall be delegated for full
administration (including property and closeout) to the Office of Naval
Research (ONR). Exceptions to this policy must be approved by the
Procurement Officer, documented, and made part of the file.
(b) Delegations will be made by using NASA Form NF 1671. The grant
officer will strike out any parts of the form that do not apply and
write in specific instructions regarding actions requiring ONR
involvement. The grant officer will inform the recipient, in writing,
that a delegation has been made.
(c) ONR will acknowledge this delegation by returning a NF 1431 to
the grant officer within five days of receipt.
Sec. 1260.71 Supplements and renewals.
(a) A NASA grant officer can unilaterally make minor or
administrative changes to a grant; e.g., Reports Substitution
(Sec. 1260.55), Withholding (Sec. 1260.56), and Novations
(Sec. 1260.74). Renewal of grant (Sec. 1260.22) is a unilateral
decision by NASA based upon availability of funds, continued research
relevance, and progress made by the recipient.
(b) To eliminate the paperwork burdens associated with closeout and
negotiations for a new grant, ongoing efforts to continue the same
effort at the same institution will be accomplished by modifying the
current instrument, unless there is a significant change in the nature
of the work or closure would be in the best interest of the Government.
(1) Grants should be renewed prior to their expiration date. When
possible, the period of performance should be continuous with the prior
grant. If otherwise acceptable, NASA may fund an extension through a
multiple year grant (Sec. 1260.13(a)) or by extending the existing
grant. Such extensions (other than no-cost extensions) must be
supported by a new proposal from the recipient.
(2) To insure continuation, the technical office should forward to
the grant office a complete technical evaluation, support
documentation, and/or a funded Procurement Request at least 45 days
before the expiration of the funded period.
Although the grant officer has little control over the timely
receipt of purchase requests, he/she is responsible for informing the
technical officer of current lead-time requirements and for timely
processing continuation agreements.
(3) The technical office will notify the recipient if the grant is
to be funded or if additional information is required. Alternatively,
if a grant is not to be renewed, the program office should give the
grant officer and the recipient 30-day notice.
(c) Requests by the recipient to modify a grant must be in writing
to the grant officer. Examples might include changes in principal
investigator or additional funding. After concurrence by the program
manager, a grant supplement will be unilaterally issued at the
discretion of the grant officer.
(d) A single no-cost extension for up to 12 months can be
unilaterally issued by the recipient as detailed in paragraph (b) of
the provision Sec. 1260.22, Extensions.
(e) When two or more actions are completed on a single supplement,
the supplement will reflect the effective date of the earliest action.
[[Page 38069]]
Sec. 1260.72 Adherence to original budget estimates.
(a) Although NASA assumes no responsibility for budget overruns,
the recipient may spend grant funds without strict adherence to
individual allocations within the proposed budgets, except as provided
in Secs. 1260.27 and 1260.32.
(b) The revision of budgets and program plans are covered in
Sec. 1260.125.
Sec. 1260.73 Transfers, novations, and change of name agreements.
(a) Transfer of grants. Novation as provided in Sec. 1260.73(b), is
the only means by which a grant may be transferred from one institution
to another. When the principal investigator changes organizational
affiliation and desires support for the research at a new location and
novation is not used, a new proposal must be submitted to NASA via the
appropriate officials of the new institution. Although such a proposal
will be reviewed in the normal manner, every effort will be made to
expedite a decision. Regardless of the action taken on the new
proposal, final reports on the original grant, describing the
scientific progress and expenditure to date, will be required.
(b) Novation and change of name. All novation agreements and change
of name agreements of the recipient, prior to execution, shall be
reviewed by legal counsel for legal sufficiency. When a change in
principal investigator from one institution to another occurs, novation
of the grant is preferable to termination.
Sec. 1260.74 Property use, disposition, and vesting of title.
(a) Administrative grant officers shall not approve the expenditure
of grant funds for the acquisition of general purpose equipment as
defined by OMB Circulars A-21 and A-122 unless the recipient's
justification for the equipment demonstrates that the equipment will be
used exclusively for research.
(b) Property administration and plant clearance for all grants and
cooperative agreements will be delegated to the appropriate DoD
property administration office.
(c) Administrative grant officers will provide copies of property
related grant documentation to the Center industrial property officer
(prior to award or modification) when the program office elects to
retain title to an existing item of Government property, to furnish the
property to the recipient in lieu of donation or to take title to
property acquired by the recipient. When NASA acquires title to items
of recipient acquired equipment or when NASA transfers an item of
Government property to a recipient as Federally owned property, the
administrative grant officer shall notify both the cognizant NASA
Center financial management officer and the equipment management
officer to ensure proper entries in financial and property accounting
records.
(d) NASA policy encourages titling as ``exempt'' all property
acquired by a nonprofit organization whose primary purpose is the
conduct of scientific research, without further obligation to the
Federal Government. Unless NASA takes title, equipment purchased with
grant funds vests in the recipient subject to Sec. 1260.134.
(1) If NASA elects to take title to recipient acquired property,
said decision will be subject to Sec. 1260.132(b)(3).
(2) Title to individual items or coherent systems (as defined in
Sec. 1260.74(f)) of recipient acquired equipment purchased at a cost of
more than $5,000 may revert back to NASA at NASA's discretion, subject
to the following conditions.
(i) NASA shall notify the recipient in writing as part of the
approval for retaining the item. If the item was requested as part of
the original budget, the award must specify NASA's intention to take
title.
(ii) Government titled property will be subject to the provisions
for other Federally owned property as stated in Sec. 1260.133.
(3) Title to equipment costing $5,000 or less is not subject to
transfer to the agency, except under the conditions of Sec. 1260.74(f).
(e) Title to Federally-owned property remains with the Government.
(1) In accordance with Pub. L. 94-519, NASA will not acquire
property from other agencies for use on NASA grants.
(2) When Federally-owned property is reported excess by a
recipient, the administrative grant officer will report the equipment
to the Center property disposal officer.
(3) NASA policy encourages the donation of existing, excess NASA
property to nonprofit organizations whose primary purpose is the
conduct of scientific research.
(f) When two or more components are fabricated into a single
coherent system in such a way that the components lose their separate
identities, and their separation would render the system useless for
its original purpose, the components will be considered as integral
parts of a single system. If such a system includes recipient-owned
components, the property will be considered to be exempt. The
requirement for agreement regarding NASA's retention of its option to
take title shall further apply where it is expected that one or more
recipient-acquired components costing $5,000 or less will be fabricated
into a single coherent system costing in excess of $5,000. However, an
item that is used ancillary to a system, without loss of its separate
identity and usefulness, will be considered as a separate item and not
as an integral component of the system.
Sec. 1260.75 Reports.
(a) The grant officer is responsible for submitting the Individual
Procurement Action Report (NASA Form 507) for all grant actions.
(b) The Committee on Academic Science and Engineering (CASE) Report
(NASA Form 1356), for research grants awarded to educational
institutions, is submitted with the basic award procurement request. In
the case of certain non-funded actions for educational institutions,
the NF 1356 is initiated by the grant officer.
(c) The Federal Cash Transactions Report (SF 272) shall be
submitted by the recipient within 15 working days following the end of
each Federal fiscal quarter, as a condition of receiving advance
payments. Instructions and answers to payment questions will be
provided by the Financial Management Office of the Center that issued
the grant. (see Sec. 1260.152.)
(d) The annual Inventory Report of Federally Owned Property in
Custody of the Recipient will be submitted by the recipient by October
31, as required by Sec. 1260.27(e). The listing shall include
information specified in Sec. 1260.134(f) together with beginning and
ending dollar value totals for the reporting period.
(e) A Performance Report shall be submitted in accordance with
Secs. 1260.21 and 1260.151(d). Recipients shall not be required to
submit more than the original and two copies of performance reports
(Sec. 1260.151(e)). At the request of the technical officer, this
requirement may be modified by use of special condition Sec. 1260.55
entitled ``Reports Substitution''.
(f) Final reports are as follows.
(1) A Summary of Research for research grants, an Education
Activity Report for education grants, or an Administrative Report for
training grants, shall be submitted as required by Sec. 1260.21 or
Sec. 1260.57. Citation of publications resulting from research, or
abstracts thereof, may serve as all or part of the summary. A separate
report is required if inventions and patents
[[Page 38070]]
resulted from the work. In addition, students are required to submit a
Student Evaluation Form to the administrative contact at the Center
monitoring the work 90 days prior to the ending date of a fellowship.
(2) A Final Inventory Report of Federally Owned Property, including
equipment where title was taken by the Government, shall be submitted
by the recipient no later than 60 days after the end of the grant, as
required by Sec. 1260.27.
(3) A properly certified Final Federal Cash Transactions Report, SF
272, is required from the recipient for each grant, as addressed in
Sec. 1260.26(a).
(g) One copy of each Disclosure of Lobbying Activities (SF LLL),
under 14 CFR 1271.110, shall be provided by the grant officer to the
Procurement Officer for transmittal to the Director, Contract
Management Division (Code HK). Suspected violations of the statutory
prohibitions implemented by 14 CFR part 1271 shall be reported to Code
HK.
(h) The Director, Program Operations Division (Code HS), shall
provide to the General Services Administration information concerning
all NASA debarments, suspensions, determinations of ineligibility, and
voluntary exclusions of persons in accordance with 14 CFR 1265.505.
(i) Remedies for Noncompliance are delineated in Sec. 1260.162.
(1) Failure of the recipient to provide a required grant report can
result in the Agency and the public being denied information about
grant activities, NASA officials having less information for making
decisions, grant closeout being delayed, and confidence being
undermined as to whether the recipient will meet the requirements under
other grants. Because NASA grants provide for advance payments, a
recipient could be fully paid before final reports are due. At this
point, it is too late to withhold payment on the existing grant.
(2) Consistent with Secs. 1260.122(h) and 1260.162(a), NASA does
not withhold payment until a recipient has failed to comply with report
requirements for more than 90 days. To remedy failure to furnish
reports, special condition Sec. 1260.56, Withholding, should be used
when awarding a new grant or modifying an existing grant with non-
responsive organizations.
(i) Special condition Sec. 1260.56 instructs the Financial
Management Office to withhold payment pending receipt of the
satisfactorily completed reports required in Sec. 1260.75.
(ii) The grant officer may waive the withholding requirement when
the recipient has taken corrective action that makes withholding
unnecessary. To release for payment the amount withheld, grant officers
shall send a memorandum to their Financial Management Office.
Sec. 1260.76 Suspension or termination.
Suspension of termination of a grant prior to the planned
expiration date must be reserved for exceptional situations that cannot
be handled any other way (see Secs. 1260.23 and 1260.160). Before
suspending or terminating any grant with a university, the NASA grant
officer and technical officer shall take into account the consequences
to graduate students working under the grant.
Sec. 1260.77 Closeout procedures.
The closeout of a grant is the process by which NASA determines
that all applicable administrative actions and all required work under
the instrument have been completed by both the recipient and NASA and
no further action is necessary (see Sec. 1260.171).
(a) Initiation. The NASA grant officer shall determine from the
technical officer that work under a particular grant will not be
continued or is completed. The NASA grant officer will promptly notify
ONR to begin closeout within 90 days of this determination. ONR will
inform the recipient of pending closeout and the final documentation
required, to the extent practicable, prior to the grant's expiration
date.
(1) To expedite closeout, NASA grant officers shall respond to ONR
inquiries within 30 days. The use of E-mail communication between ONR
and NASA is encouraged.
(2) Recipients shall not be requested to complete forms or supply
information other than discussed in Sec. 1260.75(c) through (f), except
in unusual situations.
(b) Reports submission. ONR will ensure that all reports required
from the recipient (see Sec. 1260.75) have been received by the
appropriate NASA offices.
(c) Reports certification. ONR will obtain from those that receive
NASA reports, written certification that the reports have been
satisfactorily completed. The property certification should indicate
that disposal of any remaining Government property has been made as
directed and that NASA has been compensated for any residual inventory
(see Sec. 1260.135). In reviewing the certifications, see
Secs. 1260.171 and 1260.172.
(d) Administrativly complete. A grant is administratively complete
when
(1) All reports have been received;
(2) All certifications have been received;
(3) Payments have been made for allowable reimbursable costs and
refunds have been received for any balance of unobligated cash advanced
that is not authorized to be retained for use on other grants; and
(4) A DD Form 1594 has been provided by ONR to the NASA grant
officer.
(e) Retention of documents. Records will be retained in accordance
with Sec. 1260.153.
Appendix to Subpart A to Part 1260--Listing of Exhibits
Exhibit A--Delegation of Administration
Exhibit B--Formats
Example 1--Research Grant
Example 2--Cooperative Agreement
Example 3--Training Grant
Example 4--Education Grant
Example 5--Grant or Cooperative Agreement with Foreign Organizations
Exhibit C--Budget Summary
Note: Exhibits are available at NASA Headquarters, Code HK,
Washington, DC 20546.
Subpart B--Uniform Administrative Requirements for Grants and
Cooperative Agreements with Institutions of Higher Education,
Hospitals, and Other Non-Profit Organizations
General
Sec. 1260.101 Purpose.
This subpart implements OMB Circular No. A-110 and establishes
uniform administrative requirements for NASA grants and agreements
awarded to institutions of higher education, hospitals, and other non-
profit organizations. NASA shall not impose additional or inconsistent
requirements, except as provided in Secs. 1260.104 and 1260.114 or
unless specifically required by Federal statute or executive order.
Non-profit organizations that implement Federal programs for the States
are also subject to State requirements.
Sec. 1260.102 Definitions.
(a) Accrued expenditures means the charges incurred by the
recipient during a given period requiring the provision of funds for:
(1) Goods and other tangible property received;
(2) Services performed by employees, contractors, subcontractors,
and other payees; and,
(3) Other amounts becoming owed under programs for which no current
services or performance is required.
(b) Accrued income means the sum of:
[[Page 38071]]
(1) Earnings during a given period from services performed by the
recipient, and goods and other tangible property delivered to
purchasers; and
(2) Amounts becoming owed to the recipient for which no current
services or performance is required by the recipient.
(c) Acquisition cost of equipment means the net invoice price of
the equipment, including the cost of modifications, attachments,
accessories, or auxiliary apparatus necessary to make the property
usable for the purpose for which it was acquired. Other charges, such
as the cost of installation, transportation, taxes, duty or protective
in-transit insurance, shall be included or excluded from the unit
acquisition cost in accordance with the recipient's regular accounting
practices.
(d) Advance means a payment made by Treasury check or other
appropriate payment mechanism to a recipient upon its request either
before outlays are made by the recipient or through the use of
predetermined payment schedules.
(e) Award means a grant or cooperative agreement that provides
support or stimulation to accomplish a public purpose. Awards include
research grants, training grants, facilities grants, educational
grants, and cooperative agreements in the form of money or property in
lieu of money, by NASA to an eligible recipient. The term does not
include: technical assistance, which provides services instead of
money; other assistance in the form of loans, loan guarantees, interest
subsidies, or insurance; direct payments of any kind of individuals;
and, contracts which are required to be entered into and administered
under procurement laws and regulations.
(f) Cash contributions means the recipient's cash outlay, including
the outlay of money contributed to the recipient by third parties.
(g) Closeout means the process by which NASA determines that all
applicable administrative actions and all required work of the award
have been completed by the recipient and NASA.
(h) Contract means a procurement contract under an award, and a
procurement subcontract under a recipient's contract.
(i) Cost sharing or matching means that portion of project or
program costs not borne by NASA.
(j) Date of completion means the date on which all work under an
award is completed or the date on the award document, or any supplement
or amendment thereto, on which NASA sponsorship ends.
(k) Disallowed costs means those charges to an award that NASA
determines to be unallowable, in accordance with the applicable Federal
cost principles or other terms and conditions contained in the award.
(l) Equipment means tangible nonexpendable personal property
including exempt property charged directly to the award having a useful
life of more than one year and an acquisition cost of $5,000 or more
per unit. However, consistent with recipient policy, lower limits may
be established.
(m) Excess property means property under the control of any Federal
awarding agency that, as determined by the head thereof, is no longer
required for its needs or the discharge of its responsibilities.
(n) Exempt property means tangible personal property acquired in
whole or in part with Federal funds, where a Federal awarding agency
has statutory authority to vest title in the recipient without further
obligation to the Federal Government. An example of exempt property
authority is contained in the Federal Grant and Cooperative Agreement
Act (31 U.S.C. 6306), for property acquired under an award to conduct
basic or applied research by a non-profit institution of higher
education or non-profit organization whose principal purpose is
conducting scientific research.
(o) NASA means the National Aeronautics and Space Administration
(NASA), including its authorized representatives.
(p) Federal funds authorized means the total amount of Federal
funds obligated by the Federal Government for use by the recipient.
This amount may include any authorized carryover of unobligated funds
from prior funding periods when permitted by agency regulations or
agency implementing instructions.
(q) Federal share of real property, equipment, or supplies means
that percentage of the property's acquisition costs and any improvement
expenditures paid with Federal funds.
(r) Funding period means the period of time when NASA funding is
available for obligation by the recipient.
(s) Intangible property and debt instruments means, but is not
limited to, trademarks, copyrights, patents and patent applications and
such property as loans, notes and other debt instruments, lease
agreements, stock and other instruments of property ownership, whether
considered tangible or intangible.
(t) Obligations mean the amounts of orders placed, contracts and
grants awarded, services received and similar transactions during a
given period that require payment by the recipient during the same or a
future period.
(u) Outlays or expenditures means charges made to the project or
program. They may be reported on a cash or accrual basis. For reports
prepared on a cash basis, outlays are the sum of cash disbursements for
direct charges for goods and services, the amount of indirect expense
charged, the value of third party in-kind contributions applied and the
amount of cash advances and payments made to subcontractors. For
reports prepared on an accrual basis, outlays are the sum of cash
disbursements for direct charges for goods and services, the amount of
indirect expense incurred, the value of in-kind contributions applied,
and the net increase (or decrease) in the amounts owed by the recipient
for good and other property received, for services performed by
employees, contractors, subcontractors and other payees and other
amounts becoming owed under programs for which no current services or
performance are required.
(v) Personal property means property of any kind except real
property. It may be tangible, having physical existence, or intangible,
having no physical existence, such as copyrights, patents, or
securities.
(w) Prior approval means written approval by an authorized official
evidencing prior consent.
(x) Program income means gross income earned by the recipient that
is directly generated by a supported activity or earned as a result of
the award (see exclusions in Sec. 1270.24(e) and (h). Program income
includes, but is not limited to, income from fees for services
performed, the use or rental of real or personal property acquired
under federally-funded projects, the sale of commodities or items
fabricated under an award, license fees and royalties on patents and
copyrights, and interest on loans made with award funds. Interest
earned on advances of NASA funds is not program income. Except as
otherwise provided in these regulations or the terms and conditions of
the award, program income does not include the receipt of principal on
loans, rebates, credits, discounts, etc., or interest earned on any of
them.
(y) Project costs means all allowable costs, as set forth in the
applicable Federal cost principles, incurred by a recipient and the
value of the contributions made by third parties in accomplishing the
objectives of the award during the project period.
(z) Project period means the period established in the award
document
[[Page 38072]]
during which NASA sponsorship begins and ends.
(aa) Property means, unless otherwise stated, real property,
equipment, intellectual property and debt instruments.
(bb) Real property means land, including land improvements,
structures and appurtenances thereto, but excludes movable machinery
and equipment.
(cc) Recipient means an organization receiving an award directly
from NASA to carry out a project or program. The term includes public
and private institutions of higher education, public and private
hospitals, and other quasi-public and private non-profit organizations
such as, but not limited to, community action agencies, research
institutes, educational associations, and health centers. The term may
include commercial organizations, foreign or international
organizations (such as agencies of the United Nations) which are
recipients, subcontractors, or contractors or subcontractors of
recipients. The term does not include government-owned contractor-
operated facilities or research centers providing continued support for
mission-oriented, large-scale programs that are government-owned or
controlled, or are designated as federally-funded research and
development centers.
(dd) Research and development means all research activities, both
basic and applied, and all development activities that are supported at
universities, colleges, and other nonprofit institutions. Research is
defined as a systematic study directed toward fuller scientific
knowledge or understanding of the subject studied. Development is the
systematic use of knowledge and understanding gained from research
directed toward the production of useful materials, devices, systems,
or methods, including design and development of prototypes and
processes. The term research also included activities involving the
training of individuals in research techniques where such activities
utilize the same facilities as other research and development
activities and where such activities are not included in the
instruction function.
(ee) Small awards means a grant or cooperative agreement not
exceeding the small purchase threshold.
(ff) Subaward means an award of financial assistance in the form of
money, or property in lieu of money, made under an award by a recipient
to an eligible subrecipient or by a subrecipient to a lower tier
subrecipient. The term includes financial assistance when provided by
any legal agreement, even if the agreement is called a contract, but
does not include procurement of goods and services nor does it include
any form of assistance which is excluded from the definition of
``award'' in paragraph (e) of this section.
(gg) Subrecipient means the legal entity to which a subaward is
made and which is accountable to the recipient for the use of the funds
provided. The term may include foreign or international organizations
(such as agencies of the United Nations).
(hh) Supplies means all personal property excluding equipment,
intellectual property, and debt instruments as defined in this section,
and inventions of a contractor conceived or first actually reduced to
practice in the performance of work under a funding agreement
(``subject inventions''), as defined in 37 CFR part 401, ``Rights to
Inventions Made by Nonprofit Organizations and Small Business Firms
Under Government Grants, Contracts, and Cooperative Agreements.''
(ii) Suspension means an action by NASA that temporarily withdraws
NASA sponsorship under an award, pending corrective action by the
recipient or pending a decision to terminate the award by NASA.
Suspension of an award is a separate action from suspension under
Federal agency regulations implementing Executive Orders 12549 and
12689, ``Debarment and Suspension.''
(jj) Termination means the cancellation of Federal sponsorship, in
whole or in part, under an agreement at any time prior to the date of
completion.
(kk) Third party in-kind contributions means the value of non-cash
contributions provided by non-Federal third parties. Third party in-
kind contributions may be in the form of real property, equipment,
supplies and other expendable property, and the value of goods and
services directly benefiting and specifically identifiable to the
project or program.
(ll) Unliquidated obligations, for financial reports prepared on a
cash basis, means the amount of obligations incurred by the recipient
that have not been paid. For reports prepared on an accrued expenditure
basis, they represent the amount of obligations incurred by the
recipient for which an outlay has not been recorded.
(mm) Unobligated balance means the portion of the funds authorized
by NASA that has not been obligated by the recipient and is determined
by deducting the cumulative obligations from the cumulative funds
authorized.
(nn) Unrecovered indirect cost means the difference between the
amount awarded and the amount which could have been awarded under the
recipient's approved negotiated indirect cost rate.
(oo) Working capital advance means a procedure whereby funds are
advanced to the recipient to cover its estimated disbursement needs for
a given initial period.
Sec. 1260.103 Effect on other issuances.
For awards subject to this subpart, all administrative requirements
of codified program regulations, program manuals, handbooks and other
nonregulatory materials which are inconsistent with the requirements of
this subpart shall be superseded, except to the extent they are
required by statute, or authorized in accordance with the deviations
provision in Sec. 1260.104.
Sec. 1260.104 Deviations.
The Office of Management and Budget (OMB) may grant exceptions for
classes of grants or recipients subject to the requirements of this
subpart when exceptions are not prohibited by statute. However, in the
interest of maximum uniformity, exceptions from the requirements of
this subpart shall be permitted only in unusual circumstances. NASA may
apply more restrictive requirements to a class of recipients when
approved by OMB. NASA may apply less restrictive requirements when
awarding small awards, except for those requirements which are
statutory. Exceptions on a case-by-case basis may also be made by NASA.
See Sec. 1260.6(c).
Sec. 1260.105 Subawards.
Unless sections of this subpart specifically exclude subrecipients
from coverage, the provisions of this subpart shall be applied to
subrecipients performing work under awards if such subrecipients are
institutions of higher education, hospitals or other non-profit
organizations. State and local government subrecipients are subject to
the provisions of 14 CFR part 1273, ``Uniform Administrative
Requirements for Grants and Cooperative Agreements to State and Local
Governments.''
Pre--Award Requirements
Sec. 1260.110 Purpose.
Sections 1260.111 through 1260.117 prescribe forms and instructions
and other pre-award matters to be used in applying for NASA awards.
Sec. 1260.111 Pre-award policies.
(a) Use of grants and cooperative agreements, and contracts. In
each instance, NASA shall decide on the appropriate award instrument
(i.e., grant, cooperative agreement, or
[[Page 38073]]
contract). The Federal Grant and Cooperative Agreement Act (31 U.S.C.
6301-08) governs the use of grants, cooperative agreements and
contracts. A grant or cooperative agreement shall be used only when the
principal purpose of a transaction is to accomplish a public purpose of
support or stimulation authorized by Federal statute. The statutory
criterion for choosing between grants and cooperative agreements is
that for the latter, ``substantial involvement is expected between the
executive agency and the State, local government, or other recipient
when carrying out the activity contemplated in the agreement.''
Contracts shall be used when the principal purpose is acquisition of
property or services for the direct benefit or use of the Federal
Government.
(b) Public Notice and Priority Setting. NASA shall notify the
public of its intended funding priorities for discretionary grant
programs, unless funding priorities are established by Federal statute.
Sec. 1260.112 Forms for applying for Federal assistance.
(a) NASA shall comply with the applicable report clearance
requirements of 5 CFR part 1320, ``Controlling Paperwork Burdens on the
Public,'' with regard to all forms used by the NASA in place of or as a
supplement to the Standard Form 424 (SF-424) series.
(b) Applicants shall use those forms and instructions prescribed by
NASA in Sec. 1260.
Sec. 1260.113 Debarment and suspension.
NASA and recipients shall comply with the nonprocurement debarment
and suspension rule, 14 CFR part 1265, ``Governmentwide Debarment and
Suspension (Nonprocurement) and Governmentwide Requirements for Drug-
Free Workplace (Grants),'' implementing Executive Orders 12549 and
12689, ``Debarment and Suspension.'' This rule restricts contracts with
certain parties that are debarred, suspended or otherwise excluded from
or ineligible for participation in Federal assistance programs or
activities.
Sec. 1260.114 Special award conditions.
If an applicant or recipient has a history of poor performance, is
not financially stable, has a management system that does not meet the
standards prescribed in this subpart, has not conformed to the terms
and conditions of a previous award, or is not otherwise responsible,
NASA may impose additional requirements as needed. Such applicant or
recipient will be notified in writing as to the nature of the
additional requirements, the reason why the additional requirements are
being imposed, the nature of the corrective action needed, the time
allowed for completing the corrective actions, and the method for
requesting reconsideration of the additional requirements imposed. Any
special conditions shall be promptly removed once the conditions that
prompted them have been corrected.
Sec. 1260.115 Metric system of measurement.
The Metric Conversion Act, as amended by the Omnibus Trade and
Competitiveness Act (15 U.S.C. 205) declares that the metric system is
the preferred measurement system for U.S. trade and commerce. The Act
requires each Federal agency to establish a date or dates in
consultation with the Secretary of Commerce, when the metric system of
measurement will be used in the agency's procurements, grants, and
other business-related activities. Metric implementation may take
longer where the use of the system is initially impractical or likely
to cause significant inefficiencies in the accomplishment of federally-
funded activities. NASA shall follow the provisions of Executive Order
12770, ``Metric Usage in Federal Government Programs.''
Sec. 1260.116 Resource Conservation and Recovery Act (RCRA).
Under the RCRA (Pub. L. 94-580 codified at 42 U.S.C. 6962), any
State agency or agency of a political subdivision of a State which is
using appropriated Federal funds must comply with Section 6002 of the
RCRA (42 U.S.C. 6962). Section 6002 requires that preference be given
in procurement programs to the purchase of specific products containing
recycled materials identified in guidelines developed by the
Environmental Protection Agency (EPA) (40 CFR parts 247-254).
Accordingly, State and local institutions of higher education,
hospitals, and non-profit organizations that receive direct Federal
awards or other Federal funds shall give preference in their
procurement programs funded with Federal funds to the purchase of
recycled products pursuant to the EPA guidelines.
Sec. 1260.117 Certifications and representations.
Unless prohibited by statute or codified regulation, NASA will
allow recipients to submit certain certifications and representations
required by statute, executive order, or regulation on an annual basis,
if the recipients have ongoing and continuing relationships with the
agency. Annual certifications and representations shall be signed by
responsible officials with the authority to ensure recipient's
compliance with the pertinent requirements.
Post Award Requirements
Financial and Program Management
Sec. 1260.120 Purpose of financial and program management.
Sections 1260.121 through 1260.128 prescribe standards for
financial management systems, methods for making payments and rules
for: satisfying cost sharing and matching requirements, accounting for
program income, budget revision approvals, making audits, determining
allowability of cost, and establishing fund availability.
Sec. 1260.121 Standards for financial management systems.
(a) Recipients shall relate financial data to performance data and
develop unit cost information whenever practical. For awards that
support research, it should be noted that it is generally not
appropriate to develop unit cost information.
(b) Recipients' financial management systems shall provide for the
following.
(1) Accurate, current and complete disclosure of the financial
results of each federally-sponsored project or program in accordance
with the reporting requirements set forth in Sec. 1260.152. If NASA
requires reporting on an accrual basis from a recipient that maintains
its records on other than an accrual basis, the recipient shall not be
required to establish an accrual accounting system. These recipients
may develop such accrual data for its reports on the basis of an
analysis of the documentation on hand.
(2) Records that identify adequately the source and application of
funds for federally-sponsored activities. These records shall contain
information pertaining to Federal awards, authorizations, obligations,
unobligated balances, assets, outlays, income and interest.
(3) Effective control over and accountability for all funds,
property and other assets. Recipients shall adequately safeguard all
such assets and assure they are used solely for authorized purposes.
(4) Comparison of outlays with budget amounts for each award.
Whenever appropriate, financial information should be related to
performance and unit cost data.
[[Page 38074]]
(5) Written procedures to minimize the time elapsing between the
transfer of funds to the recipient from the U.S. Treasury and the
issuance or redemption of checks, warrants or payments by other means
for program purposes by the recipient. To the extent that the
provisions of the Cash Management Improvement Act (CMIA) (Pub. L. 101-
453) govern, payment methods of State agencies, instrumentalities, and
fiscal agents shall be consistent with CMIA Treasury-State Agreements
or the CMIA default procedures codified at 31 CFR part 205,
``Withdrawal of Cash from the Treasury for Advances under Federal Grant
and Other Programs.''
(6) Written procedures for determining the reasonableness,
allocability and allowability of costs in accordance with the
provisions of the applicable Federal cost principles and the terms and
conditions of the award.
(7) Accounting records including cost accounting records that are
supported by source documentation.
(c) Where the Federal Government guarantees or insures the
repayment of money borrowed by the recipient, NASA, at its discretion,
may require adequate bonding and insurance if the bonding and insurance
requirements of the recipient are not deemed adequate to protect the
interest of the Federal Government.
(d) NASA may require adequate fidelity bond coverage where the
recipient lacks sufficient coverage to protect the Federal Government's
interest.
(e) Where bonds are required in the situations described above, the
bonds shall be obtained from companies holding certificates of
authority as acceptable sureties, as prescribed in 31 CFR part 223,
``Surety Companies Doing Business with the Unites States.''
Sec. 1260.122 Payment.
(a) Payment methods shall minimize the time elapsing between the
transfer of funds from the United States Treasury and the issuance or
redemption of checks, warrants, or payment by other means by the
recipients. Payment methods of State agencies or instrumentalities
shall be consistent with Treasury-State CMIA agreements or default
procedures codified at 31 CFR part 205.
(b)(1) Recipients are to be paid in advance, provided they maintain
or demonstrate the willingness to maintain:
(i) Written procedures that minimize the time elapsing between the
transfer of funds and disbursement by the recipient; and
(ii) Financial management systems that meet the standards for fund
control and accountability as established in Sec. 1260.121.
(2) Cash advances to a recipient organization shall be limited to
the minimum amounts needed and be timed to be in accordance with the
actual, immediate cash requirements of the recipient organization in
carrying out the purpose of the approved program or project. The timing
and amount of cash advances shall be as close as is administratively
feasible to the actual disbursements by the recipient organization for
direct program or project costs and the proportionate share of any
allowable indirect costs.
(c) Whenever possible, advances shall be consolidated to cover
anticipated cash needs for all awards made by NASA to the recipient.
(1) Advance payments will be made by electronic funds transfer.
(2) Advance payment mechanisms are subject to 31 CFR part 205.
(d) [Reserved. Not used by NASA.]
(e) Reimbursement is the preferred method when the requirements in
paragraph (b) of this section cannot be met. NASA may also use this
method on any construction agreement, or if the major portion of the
construction project is accomplished through private market financing
or Federal loans, and the Federal assistance constitutes a minor
portion of the project. When the reimbursement method is used, NASA
shall make payment within 30 days after receipt of the billing, unless
the billing is improper.
(f) If a recipient cannot meet the criteria for advance payments
and NASA has determined that reimbursement is not feasible because the
recipient lacks sufficient working capital, NASA may provide cash on a
working capital advance basis. Under this procedure, NASA shall advance
cash to the recipient to cover its estimated disbursement needs for an
initial period generally geared to the awardee's disbursing cycle.
Thereafter, NASA shall reimburse the recipient for its actual cash
disbursements. The working capital advance method of payment shall not
be used for recipients unwilling or unable to provide timely advances
to their subcontractor to meet the subcontractor's actual cash
disbursements.
(g) To the extent available, recipients shall disburse funds
available from repayments to and interest earned on a revolving fund,
program income, rebates, refunds, contract settlements, audit
recoveries and interest earned on such funds before requesting
additional cash payments.
(h) Unless otherwise required by statute, NASA will not withhold
payments for proper charges made by recipients at any time during the
project period unless the conditions in paragraph (h) (1) or (2) of
this section apply.
(1) A recipient has failed to comply with the project objectives,
the terms and conditions of the award, or NASA reporting requirements.
(2) The recipient is delinquent in a debt to the United States as
defined in OMB Circular A-129, ``Managing Federal Credit Programs.''
Under such conditions, NASA may, upon reasonable notice, inform the
recipient that payments shall not be made for obligations incurred
after a specified date until the conditions are corrected or the
indebtedness to the Federal Government is liquidated.
(i) Standards governing the use of banks and other institutions as
depositories of funds advanced under awards are as follows.
(1) Except for situations described in paragraph (i)(2) of this
section, NASA shall not require separate depository accounts for funds
provided to a recipient or establish any eligibility requirements for
depositories for funds provided to a recipient. However, recipients
must be able to account for the receipt, obligation and expenditure of
funds.
(2) Advances of Federal funds shall be deposited and maintained in
insured accounts whenever possible.
(j) Consistent with the national goal of expanding the
opportunities for women-owned and minority-owned business enterprises,
recipients shall be encouraged to use women-owned and minority-owned
banks (a bank which is owned at least 50 percent by women or minority
group members).
(k) Recipients shall maintain advances of Federal funds in interest
bearing accounts, unless the conditions in paragraph (k) (1), (2) or
(3) of this section apply.
(1) The recipient receives less than $120,000 in Federal awards per
year.
(2) The best reasonable available interest bearing account would
not be expected to earn interest in excess of $250 per year on Federal
cash balances.
(3) The depository would require an average or minimum balance so
high that it would not be feasible within the expected Federal and non-
Federal cash resources.
(l) Interest earned on Federal advances deposited in interest-
bearing accounts in excess of $250 per year shall be remitted annually
to Department of Health and Human Services (DHHS), Payment Management
System,
[[Page 38075]]
Rockville, MD 20852. Interest amounts up to $250 per year may be
retained by the recipient for administrative expense. In accordance
with 31 CFR part 206, interest should be remitted electronically
through the Automated Clearing House (ACT) to DHHS. Recipients without
this capability may make the remittance by check. In either case, the
remittance should be payable to DHHS and should indicate the
recipient's Entity Identification Number (EIN) and reason, i.e.,
``Interest earned.''
(m) Except as noted elsewhere in this subpart, only the following
forms shall be authorized for the recipients in requesting advances and
reimbursements. Federal agencies shall not require more than an
original and two copies of these forms.
(1) SF-270, Request for Advance or Reimbursement. [Reserved. Not
used by NASA.]
(2) SF-271, Outlay Report and Request for Reimbursement for
Construction Programs. The SF-271 may be used for requesting
reimbursement for NASA construction programs.
Sec. 1260.123 Cost sharing or matching.
(a) All contributions, including cash and third party in-kind,
shall be accepted as part of the recipient's cost sharing or matching
when such contributions meet all of the following criteria.
(1) Are verifiable from the recipient's records.
(2) Are not included as contributions for any other federally-
assisted project or program.
(3) Are necessary and reasonable for proper and efficient
accomplishment of project or program objectives.
(4) Are allowable under the applicable cost principles.
(5) Are not paid by the Federal Government under another award,
except where authorized by Federal statute to be used for cost sharing
or matching.
(6) Are provided for in the approved budget when required by NASA.
(7) Conform to other provisions of this subpart, as applicable.
(b) Unrecovered indirect costs may be included as part of cost
sharing or matching only with the prior approval of NASA.
(c) Values for recipient contributions of services and property
shall be established in accordance with the applicable cost principles.
If NASA authorizes recipients to donate buildings or land for
construction/facilities acquisition projects or long-term use, the
value of the donated property for cost sharing or matching shall be the
lesser of paragraph (c) (1) or (2) of this section.
(1) The certified value of the remaining life of the property
recorded in the recipient's accounting records at the time of donation.
(2) The current fair market value. However, when there is
sufficient justification, NASA may approve the use of the current fair
market value of the donated property, even if it exceeds the certified
value at the time of donation to the project.
(d) Volunteer services furnished by professional and technical
personnel, consultants, and other skilled and unskilled labor may be
counted as cost sharing or matching if the service is an integral and
necessary part of an approved project or program. Rates for volunteer
services shall be consistent with those paid for similar work in the
recipient's organization. In those instances in which the required
skills are not found in the recipient organization, rates shall be
consistent with those paid for similar work in the labor market in
which the recipient competes for the kind of services involved. In
either case, paid fringe benefits that are reasonable, allowable, and
allocable may be included in the valuation.
(e) When an employer other than the recipient furnishes the
services of an employee, these services shall be valued at the
employee's regular rate of pay (plus an amount of fringe benefits that
are reasonable, allowable, and allocable, but exclusive of overhead
costs), provided these services are in the same skill for which the
employee is normally paid.
(f) Donated supplies may include such items as expendable
equipment, office supplies, laboratory supplies or workshop and
classroom supplies. Value assessed to donated supplies included in the
cost sharing or matching share shall be reasonable and shall not exceed
the fair market value of the property at the time of the donation.
(g) The method used for determining cost sharing or matching for
donated equipment, buildings and land for which title passes to the
recipient may differ according to the purpose of the award, if the
conditions in paragraph (g) (1) or (2) of this section apply.
(1) If the purpose of the award is to assist the recipient in the
acquisition of equipment, buildings or land, the total value of the
donated property may be claimed as cost sharing or matching.
(2) If the purpose of the award is to support activities that
require the use of equipment, buildings or land, normally only
depreciation or use charges for equipment and buildings may be made.
However, the full value of equipment or other capital assets and fair
rental charges for land may be allowed, provided that NASA has approved
the charges.
(h) The value of donated property shall be determined in accordance
with the usual accounting policies of the recipient, with the following
qualifications.
(1) The value of donated land and buildings shall not exceed its
fair market value at the time of donation to the recipient as
established by an independent appraiser (e.g., certified real property
appraiser or General Services Administration representative) and
certified by a responsible official of the recipient.
(2) The value of donated equipment shall not exceed the fair market
value of equipment of the same age and condition at the time of
donation.
(3) The value of donated space shall not exceed the fair rental
value of comparable space as established by an independent appraisal of
comparable space and facilities in a privately-owned building in the
same locality.
(4) The value of loaned equipment shall not exceed its fair rental
value.
(5) The following requirements pertain to the recipient's
supporting records for in-kind contributions from third parties.
(i) Volunteer services shall be documented and, to the extent
feasible, supported by the same methods used by the recipient for its
own employees.
(ii) The basis for determining the valuation for personal service,
material, equipment, buildings and land shall be documented.
Sec. 1260.124 Program income.
(a) The standards set forth in this section shall be used to
account for program income related to projects financed in whole or in
part with Federal funds.
(b) Except as provided in paragraph (h) of this section, program
income earned during the project period shall be retained by the
recipient and, in accordance with the terms and conditions of the
award, shall be used in one or more of the ways listed in the
following.
(1) Added to funds committed to the project by NASA and recipient
and used to further eligible project or program objectives.
(2) Used to finance the non-Federal share of the project or
program.
(3) Deducted from the total project or program allowable cost in
determining the net allowable costs on which the Federal share of costs
is based.
(c) When NASA authorizes the disposition of program income as
[[Page 38076]]
described in paragraphs (b)(1) or (b)(2) of this section, program
income in excess of any limits stipulated shall be used in accordance
with paragraph (b)(3) of this section.
(d) In the event that the program regulations or the terms and
conditions of the award do not specify how program income is to be
used, paragraph (b)(3) of this section shall apply automatically to all
projects or programs except research. For awards that support research,
paragraph (b)(1) shall apply automatically unless the awarding agency
indicates in the terms and conditions another alternative on the award
or the recipient is subject to special award conditions, as indicated
in Sec. 1260.114.
(e) Unless program regulations or the terms and conditions of the
award provide otherwise, recipients shall have no obligation to the
Federal Government regarding program income earned after the end of the
project period.
(f) Unless program regulations or the terms and conditions of the
award provide otherwise, costs incident to the generation of program
income may be deducted from gross income to determine program income,
provided these costs have not been charged to the award.
(g) Proceeds from the sale of property shall be handled in
accordance with the requirements of the Property Standards (See
Secs. 1260.130 through 1260.137).
(h) Unless program regulations or the terms and condition of the
award provide otherwise, recipients shall have no obligation to the
Federal Government with respect to program income earned from license
fees and royalties for copyrighted material, patents, patent
applications, trademarks, and inventions produced under an award.
However, Patent and Trademark Amendments (35 U.S.C. 18) apply to
inventions made under an experimental, developmental, or research
award.
Sec. 1260.125 Revision of budget and program plans.
(a) The budget plan is the financial expression of the project or
program as approved during the award process. It may include either the
Federal and non-Federal share, or only the Federal share, depending
upon requirements in these regulations. It shall be related to
performance for program evaluation purposes whenever appropriate.
(b) Recipients are required to report deviations from budget and
program plans, and request prior approvals for budget and program plan
revisions, in accordance with this section.
(c) For nonconstruction awards, recipients shall request prior
approvals from NASA for one or more of the following program or budget
related reasons.
(1) Change in the scope or the objective of the project or program
(even if there is no associated budget revision requiring prior written
approval).
(2) Change in a key person specified in the application or award
document.
(3) The absence for more than three months, or a 25 percent
reduction in time devoted to the project, by the approved project
director or principal investigator.
(4) The need for additional Federal funding.
(5) The transfer of amounts budgeted for indirect costs to absorb
increases in direct costs, or vice versa, if approval is required by
NASA.
(6) The inclusion, unless waived by NASA, of costs that require
prior approval in accordance with OMB Circular A-21, ``Cost Principles
for Institutions of Higher Education;'' OMB Circular A-122, ``Cost
Principles for Non-Profit Organizations;'' 45 CFR part 74 Appendix E,
``Principles for Determining Costs Applicable to Research and
Development under Grants and Contracts with Hospitals;'' or 48 CFR part
31, ``Contract Cost Principles and Procedures,'' as applicable.
(7) The transfer of funds allotted for training allowances (direct
payment to trainees) to other categories of expense.
(8) Unless described in the application and funded in the approved
awards, the subaward, transfer or contracting out of any work under an
award. This provision does not apply to the purchase of supplies,
material, equipment or general support services.
(d) No other prior approval requirements for specific items may be
imposed unless a deviation has been approved by OMB.
(e) Except for requirements listed in paragraphs (c)(1) and (c)(4)
of this section, NASA is authorized, at its option, to waive cost-
related and administrative prior written approvals required by this
Part and OMB Circulars A-21 and A-122. Such waivers may include
authorizing recipients to do any one or more of the following.
(1) Incur pre-award costs 90 calendar days prior to award or more
than 90 calendar days with the prior approval of NASA. All pre-award
costs are incurred at the recipient's risk (i.e., NASA is under no
obligation to reimburse such costs if for any reason the recipient does
not receive an award or if the award is less than anticipate and
inadequate to cover such costs).
(2) Initiated a non-time extension of the expiration date of the
award of up to 12 months unless one or more of the following conditions
apply. For one-time extensions, the recipient must notify NASA in
writing with the supporting reasons and revised expiration date at
least 10 days before the expiration date specified in the award. This
one-time extension may not be exercised merely for the purpose of using
unobligated balances.
(i) The terms and conditions of award prohibit the extension.
(ii) The extension requires additional Federal funds.
(iii) The extension involves any change in the approved objectives
or scope of the project.
(3) Carry forward unobligated balances to subsequent funding
periods.
(4) For awards that support research, unless NASA provides
otherwise in the award or in the agency's regulations, the prior
approval requirements described in paragraph (e) of this section are
automatically waived (i.e., recipients need not obtain such prior
approvals) unless one of the conditions included in paragraph (e)(2) of
this section applies.
(f) Program regulations may restrict the transfer of funds among
direct cost categories or programs, functions and activities for awards
in which NASA's share of the project exceeds $100,000 and the
cumulative amount of such transfers exceeds or is expected to exceed 10
percent of the total budget as last approved by NASA. However, no
program regulation shall permit a transfer that would cause any Federal
appropriation or part thereof to be used for purposes other than those
consistent with the original intent of the appropriation.
(g) All other changes to nonconstruction budgets, except for the
changes described in paragraph (j), do not require prior approval.
(h) For construction awards, recipients shall request prior written
approval promptly from NASA for budget revisions whenever the
conditions in paragraphs (h)(1), (2) or (3) or this section apply.
(1) The revision results from changes in the scope or the objective
of the project or program.
(2) The need arises for additional Federal funds to complete the
project.
(3) A revision is desired which involves specific costs for which
prior written approval requirements may be imposed consistent with
applicable OMB cost principles listed in Sec. 1260.127.
(i) No other prior approval requirements for specific items may be
imposed unless a deviation has been approved by OMB.
[[Page 38077]]
(j) When NASA makes an award that provides support for both
construction and nonconstruction work, NASA may require the recipient
to request prior approval from NASA before making any fund or budget
transfers between the two types of work supported.
(k) For both construction and nonconstruction awards, NASA shall
require recipients to notify NASA in writing promptly whenever the
amount of Federal authorized funds is expected to exceed the needs of
the recipient for the project period by more than $5,000 or five
percent of the Federal award, whichever is greater. This notification
shall not be required if an application for additional funding is
submitted for a continuation award.
(l) When requesting approval for budget revisions, recipients shall
use the budget forms that were used in the application unless NASA
indicates a letter of request suffices.
(m) Within 30 calendar days from the date of receipt of the request
for budget revisions, NASA shall review the request and notify the
recipient whether the budget revisions have been approved. If the
revision is still under consideration at the end of 30 calendar days,
NASA shall inform the recipient in writing of the date when the
recipient may expect the decision.
Sec. 1260.126 Non-Federal audits.
(a) Recipients that are institutions of higher education or other
non-profit organizations shall be subject to the audit requirements
contained in OMB Circular A-133, ``Audits of Institutions of Higher
Education and Other Non-Profit Institutions.''
(b) State and local governments shall be subject to the audit
requirements contained in the Single Audit Act (31 U.S.C. 7501-7) and
NASA regulations implementing OMB Circular A-128, ``Audits of State and
Local Governments.''
(c) Hospitals not covered by the audit provisions of OMB Circular
A-133 shall be subject to the audit requirements of NASA.
(d) Commercial organizations shall be subject to the audit
requirements of NASA or the prime recipient as incorporated into the
award document.
Sec. 1260.127 Allowable costs.
For each kind of recipient, there is a set of Federal principles
for determining allowable costs. Allowability of costs shall be
determined in accordance with the cost principles applicable to the
entity incurring the costs. Thus, allowability of costs incurred by
State, local or federally-recognized Indian tribal governments is
determined in accordance with the provisions of OMB Circular A-87,
``Cost Principles for State and Local Governments.'' The allowability
of costs incurred by non-profit organizations is determined in
accordance with the provisions of OMB Circular A-122, ``Cost Principles
for Non-Profit Organizations.'' The allowability of costs incurred by
institutions of higher education is determined in accordance with the
provisions of OMB Circular A-21, ``Cost Principles for Educational
Institutions.'' The allowability of costs incurred by hospitals is
determined in accordance with the provisions of Appendix E of 45 CFR
part 74, ``Principles for Determining Costs Applicable to Research and
Development Under Grants and Contracts with Hospitals.'' The
allowability of costs incurred by commercial organizations and those
non-profit organizations listed in Attachment C to Circular A-122 is
determined in accordance with the provisions of the Federal Acquisition
Regulation (FAR) at 48 CFR part 31.
Sec. 1260.128 Period of availability of funds.
Where a funding period is specified, a recipient may charge to the
grant only allowable costs resulting from obligations incurred during
the funding period and any pre-award costs authorized by NASA.
Property Standards
Sec. 1260.130 Purpose of property standards.
Sections 1260.131 through 1260.137 set forth uniform standards
governing management and disposition of property furnished by the
Federal Government whose cost was charged to a project supported by a
Federal award. Recipients shall observe these standards under awards
and NASA will not impose additional requirements, unless specifically
required by Federal statue. The recipient may use its own property
management standards and procedures provided it observes the provisions
of Secs. 1260.131 through 1260.137.
Sec. 1260.131 Insurance coverage.
Recipients shall, at a minimum, provide the equivalent insurance
coverage for real property and equipment acquired with Federal funds as
provided for property owned by the recipient. Federally-owned property
need not be insured unless required by the terms and conditions of the
award.
Sec. 1260.132 Real property.
Unless otherwise provided by statue, the requirements concerning
the use and disposition of real property acquired in whole or in part
under awards are as follows:
(a) Title to real property shall vest in the recipient subject to
the condition that the recipient shall use the real property for the
authorized purpose of the project as long as it is needed and shall not
encumber the property without approval of NASA.
(b) The recipient shall obtain written approval by NASA for the use
of real property in other federally-sponsored projects when the
recipient determines that the property is no longer needed for the
purpose of the original project. Use in other projects shall be limited
to those under federally-sponsored projects (i.e., awards) or programs
that have purposes consistent with those authorized for support by
NASA.
(c) When the real property is no longer needed as provided in
paragraph (a) and (b), the recipient shall request disposition
instructions from NASA or its successor Federal awarding agency. NASA
shall observe one or more of the following disposition instructions.
(1) The recipient may be permitted to retain title without further
obligation to the Federal Government after it compensates the Federal
Government for the percentage of the current fair market value of the
property attributable to the Federal participation in the project.
(2) The recipient may be directed to sell the property under
guidelines provided by NASA and pay the Federal Government for that
percentage of the current fair market value of the property
attributable to the Federal participation in the project (after
deducting actual and reasonable selling and fix-up expenses, if any,
from the sales proceeds). When the recipient is authorized or required
to sell the property, proper sales procedures shall be established that
provide for competition to the extent practicable and result in the
highest possible return.
(3) The recipient may be directed to transfer title to the property
to the Federal Government or to an eligible third party provided that,
in such cases, the recipient shall be entitled to compensation for its
attributable percentage of the current fair market value of the
property.
Sec. 1260.133 Federally-owned and exempt property.
(a) Federally-owned property. (1) Title to federally-owned property
remains vested in the Federal Government. Recipients shall submit
annually an inventory listing of federally-owned property in their
custody to NASA. Upon completion of the award or when the property is
no longer needed, the recipient shall report the property to
[[Page 38078]]
NASA for further Federal agency utilization.
(2) If NASA has no further need for the property, it shall be
declared excess and reported to the General Services Admiration, unless
NASA has statutory authority to dispose of the property by alternative
methods (e.g, the authority provided by the Federal Technology Transfer
Act (15 U.S.C. 3710 (I)) to donate research equipment to educational
and non-profit organizations in accordance with E.O. 12821, ``Improving
Mathematics and Science Education in Support of the National Education
Goals.'') Appropriate instructions shall be issued to the recipient by
NASA.
(b) Exempt property. Title to nonexpendable personal property
acquired with grant funds shall be vested in the recipient upon
acquisition, unless it is determined that to do so is not in
furtherance of the objectives of NASA. When title is vested in the
recipient, the recipient shall have no other obligation or
accountability to the Federal Government for its use or disposition,
except as provided in Sec. 1260.27.
Sec. 1260.134 Equipment.
(a) Title to equipment acquired by a recipient with Federal funds
shall vest in the recipient, subject to conditions of this section.
(b) The recipient shall not use equipment acquired with Federal
funds to provide services to non-Federal outside organizations for a
fee that is less than private companies charge for equivalent services,
unless specifically authorized by Federal statute, for as long as the
Federal Government retains an interest in the equipment.
(c) The recipient shall use the equipment in the project or program
for which it was acquired as long as needed, whether nor not the
project or program continues to be supported by Federal funds and shall
not encumber the property without approval of NASA. When no longer
needed for the original project or program, the recipient shall use the
equipment in connection with its other federally-sponsored activities,
in the following order of priority:
(1) Activities sponsored by NASA, then
(2) Activities sponsored by other Federal agencies.
(d) During the time that equipment is used on the project or
program for which it was acquired, the recipient shall make it
available for use on other projects or programs if such other use will
not interfere with the work on the project or program for which the
equipment was originally acquired. First preference for such other use
shall be given to other projects or programs sponsored by NASA; second
preference shall be given to projects or programs sponsored by other
Federal agencies. If the equipment is owned by the Federal Government,
use on other activities not sponsored by the Federal Government shall
be permissible if authorized by NASA. User charges shall be treated as
program income.
(e) When acquiring replacement equipment, the recipient may use the
equipment to be replaced as trade-in or sell the equipment and use the
proceeds to offset the costs of the replacement equipment subject to
the approval of NASA.
(f) The recipients's property management standards for equipment
acquired with Federal funds and federally-owned equipment shall include
all of the following.
(1) Equipment records shall be maintained accurately and shall
include the following information.
(i) A description of the equipment.
(ii) Manufacturer's serial number, model number, Federal stock
number, national stock number, or other identification number.
(iii) Source of the equipment, including the award number.
(iv) Whether title vests in the recipient or the Federal
Government.
(v) Acquisition date (or date received, if the equipment was
furnished by the Federal Government) and cost.
(vi) Information from which one can calculate the percentage of
Federal participation in the cost of the equipment (not applicable to
equipment furnished by the Federal Government).
(vii) Location and condition of the equipment and the date the
information was reported.
(viii) Unit acquisition cost.
(ix) Ultimate disposition data, including date of disposal and
sales price or the method used to determine current fair market value
where a recipient compensates NASA for its share.
(2) Equipment owned by the Federal Government shall be identified
to indicate Federal ownership.
(3) A physical inventory of equipment shall be taken and the
results reconciled with the equipment records at least once every two
years. Any differences between quantities determined by the physical
inspection and those shown in the accounting records shall be
investigated to determine the causes of the difference. The recipient
shall, in connection with the inventory, verify the existence, current
utilization, and continued need for the equipment.
(4) A control system shall be in effect to insure adequate
safeguards to prevent loss, damage, or theft of the equipment. Any
loss, damage, or theft of equipment shall be investigated and fully
documented; if the equipment was owned by the Federal Government, the
recipient shall promptly notify NASA.
(5) Adequate maintenance procedures shall be implemented to keep
the equipment in good condition.
(6) Where the recipient is authorized or required to sell the
equipment, proper sales procedures shall be established which provide
for competition to the extent practicable and result in the highest
possible return.
(g) When the recipient no longer needs the equipment, the equipment
may be used for other activities in accordance with the following
standards. For equipment with a current per unit fair market value of
$5,000 or more, the recipient may retain the equipment for other uses
provided that compensation is made to the original Federal awarding
agency or its successor. The amount of compensation shall be computed
by applying the percentage of Federal participation in the cost of the
original project or program to the current fair market value of the
equipment. If the recipient has no need for the equipment, the
recipient shall request disposition instructions from NASA. NASA shall
determine whether the equipment can be used to meet NASA's
requirements. If no requirement exists within NASA, the availability of
the equipment shall be reported to the General Services Administration
by NASA to determine whether a requirement for the equipment exists in
other Federal agencies. NASA shall issue instructions to the recipient
no later than 120 calendar days after the recipient's request and the
following procedures shall govern.
(1) If so instructed or if disposition instructions are not issued
within 120 calendar days after the recipient's request, the recipient
shall sell the equipment and reimburse NASA an amount computed by
applying to the sales proceeds the percentage of Federal participation
in the cost of the original project or program. However, the recipient
shall be permitted to deduct and retain from the Federal share $500 or
ten percent of the proceeds, whichever is less, for the recipient's
selling and handling expenses.
(2) If the recipient is instructed to ship the equipment elsewhere,
the recipient shall be reimbursed by the Federal Government by an
amount which is computed by applying the percentage of the recipient's
[[Page 38079]]
participation in the cost of the original project or program to the
current fair market value of the equipment, plus any reasonable
shipping or interim storage costs incurred.
(3) If the recipient is instructed to otherwise dispose of the
equipment, the recipient shall be reimbursed by NASA for such costs
incurred in its disposition.
(4) NASA may reserve the right to transfer the title to the Federal
Government or to a third party named by NASA when such third party is
otherwise eligible under existing statutes. Such transfer shall be
subject to the following standards.
(i) The equipment shall be appropriately identified in the award or
otherwise made known to the recipient in writing.
(ii) NASA shall issue disposition instructions within 120 calendar
days after receipt of a final inventory. The final inventory shall list
all equipment acquired with grant funds and federally-owned equipment.
If NASA fails to issue disposition instructions within the 120 calendar
day period, the recipient shall apply the standards of this section, as
appropriate.
(iii) When NASA exercises its right to take title, the equipment
shall be subject to the provisions for federally-owned equipment.
Sec. 1260.135 Supplies and other expendable property.
(a) Title to supplies and other expendable property shall vest in
the recipient upon acquisition. If there is a residual inventory of
unused supplies exceeding $5,000 in total aggregate value upon
termination or completion of the project or program and the supplies
are not needed for any other federally-sponsored project or program,
the recipient shall retain the supplies for use on non-Federal
sponsored activities or sell them, but shall, in either case,
compensate the Federal Government for its share. The amount of
compensation shall be computed in the same manner as for equipment.
(b) The recipient shall not use supplies acquired with Federal
funds to provide services to non-Federal outside organizations for a
fee that is less than private companies charge for equivalent services,
unless specifically authorized by Federal statute as long as the
Federal Government retains an interest in the supplies.
Sec. 1260.136 Intangible property.
(a) The recipient may assert copyright in any work that is subject
to copyright and was created, or for which copyright ownership was
purchased, under an award. NASA is granted a royalty-free, nonexclusive
and irrevocable right to reproduce, publish, or otherwise use the work
for Federal purposes, and to authorize others to do so.
(b) Recipients are subject to applicable regulations governing
patents and inventions, including government-wide regulations issued by
the Department of Commerce at 37 CFR part 401, ``Rights to Inventions
Made by Nonprofit Organizations and Small Business Firms Under
Government Grants, Contracts and Cooperative Agreements.''
(c) NASA has the right to:
(1) Obtain, reproduce, publish or otherwise use the data first
produced under an award.
(2) Authorize others to receive, reproduce, publish, or otherwise
use such data for Federal purposes.
(d) Title to intellectual property and debt instruments acquired
under an award or subcontract vests upon acquisition in the recipient.
The recipient shall use that property for the originally-authorized
purpose, and the recipient shall not encumber the property without
approval of NASA. When no longer needed for the originally authorized
purpose, disposition of the intangible property shall occur in
accordance with the provisions of Sec. 1260.134(g).
(e) Due to the substantial involvement on the part of NASA under a
cooperative agreement, intellectual property may be produced by Federal
employees and NASA contractors tasked to perform NASA assigned
activities. Title to intellectual property created under the
cooperative agreement by NASA or its contractors will initially vest
with the creating party. Certain rights may be exchanged with the
recipient.
Sec. 1260.137 Property trust relationship.
Real property, equipment, intangible property and debt instruments
that are acquired or improved with Federal funds shall be held in trust
by the recipient as trustee for the beneficiaries of the project or
program under which the property was acquired or improved. NASA may
require recipients to record liens or other appropriate notices of
record to indicate that personal or real property has been acquired or
improved with Federal funds and that use and disposition conditions
apply to the property.
Procurement Standards
Sec. 1260.140 Purpose of procurement standards.
Sections 1260.141 through 1260.148 set forth standards for use by
recipients in establishing procedures for the procurement of supplies
and other expendable property, equipment, real property and other
services with Federal funds. These standards are furnished to ensure
that such materials and services are obtained in an effective manner
and in compliance with the provisions of applicable Federal statutes
and executive orders. No additional procurement standards or
requirements shall be imposed by NASA upon recipients, unless
specifically required by Federal statute or executive order or approved
in accordance with the deviation procedures of Sec. 1260.6.
Sec. 1260.141 Recipient responsibilities.
The standards contained in this section do not relieve the
recipient of the contractual responsibilities arising under its
contract(s). The recipient is the responsible authority, without
recourse to NASA, regarding the settlement and satisfaction of all
contractual and administrative issues arising out of procurements
entered into in support of an award or other agreement. This includes
disputes, claims, protests of award, source evaluation or other matters
of a contractual nature. Matters concerning violation of statute are to
be referred to such Federal, State or local authority as may have
proper jurisdiction.
Sec. 1260.142 Codes of conduct.
The recipient shall maintain written standards of conduct governing
the performance of its employees engaged in the award and
administration of contracts. No employee, officer, or agent shall
participate in the selection, award, or administration of a contract
supported by Federal funds if a real or apparent conflict of interest
would be involved. Such a conflict would arise when the employee,
officer, or agent, any member of his or her immediate family, his or
her partner, or an organization which employs or is about to employ any
of the parties indicated herein, has a financial or other interest in
the firm selected for an award. The officers, employees, and agents of
the recipient shall neither solicit nor accept gratuities, favors, or
anything of monetary value from contractors, or parties to
subagreements. However, recipients may set standards for situations in
which the financial interest is not substantial or the gift is an
unsolicited item of nominal value. The standards of conduct shall
provide for disciplinary actions to be applied for violations of such
standards by officers, employees, or agents of the recipient.
[[Page 38080]]
Sec. 1260.143 Competition.
All procurement transactions shall be conducted in a manner to
provide, to the maximum extent practical, open and free competition.
The recipient shall be alert to organizational conflicts of interest as
well as noncompetitive practices among contractors that may restrict or
eliminate competition or otherwise restrain trade. In order to ensure
objective contractor performance and eliminate unfair competitive
advantage, contractors that develop or draft specifications,
requirements, statements of work, invitations for bids and/or requests
for proposals shall be excluded from competing for such procurements.
Awards shall be made to the bidder or offeror whose bid or offer is
responsive to the solicitation and is most advantageous to the
recipient, price, quality and other factors considered. Solicitations
shall clearly set forth all requirements that the bidder or offeror
shall fulfill in order for the bid or offer to be evaluated by the
recipient. Any and all bids or offers may be rejected when it is in the
recipient's interest to do so.
Sec. 1260.144 Procurement procedures.
(a) All recipients shall establish written procurement procedures.
These procedures shall provide for, at a minimum, that the conditions
in paragraphs (a) (1), (2) and (3) of this section apply.
(1) Recipients avoid purchasing unnecessary items.
(2) Where appropriate, an analysis is made of lease and purchase
alternatives to determine which would be the most economical and
practical procurement for the Federal Government.
(3) Solicitations for goods and services provide for all of the
following.
(i) A clear and accurate description of the technical requirements
for the material, product or service to be procured. In competitive
procurements, such a description shall not contain features which
unduly restrict competition.
(ii) Requirements which the bidder/offeror must fulfill and all
other factors to be used in evaluating bids or proposals.
(iii) A description, whenever practicable, of technical
requirements in terms of functions to be performed or performance
required, including the range of acceptable characteristics or minimum
acceptable standards.
(iv) The specific features of ``brand name or equal'' descriptions
that bidders are required to meet when such items are included in the
solicitation.
(v) The acceptance, to the extent practicable and economically
feasible, of products and services dimensioned in the metric system of
measurement.
(vi) Preference, to the extent practicable and economically
feasible, for products and services that conserve natural resources and
protect the environment and are energy efficient.
(b) Positive efforts shall be made by recipients to utilize small
businesses, minority-owned firms, and women's business enterprises,
whenever possible. Recipients of NASA awards shall take all of the
following steps to further this goal.
(1) Ensure that small businesses, minority-owned firms, and women's
business enterprises are used to the fullest extent practicable.
(2) Make information on forthcoming opportunities available and
arrange time frames for purchases and contracts to encourage and
facilitate participation by small businesses, minority-owned firms, and
women's business enterprises.
(3) Consider in the contract process whether firms competing for
larger contracts intend to subcontract with small businesses, minority-
owned firms, and women's business enterprises.
(4) Encourage contracting with consortiums of small businesses,
minority-owned firms and women's business enterprises when a contract
is too large for one of these firms to handle individually.
(5) Use the services and assistance, as appropriate, of such
organizations as the Small Business Administration and the Department
of Commerce's Minority Business Development Agency in the solicitation
and utilization of small businesses, minority-owned firms and women's
business enterprises.
(c) The type of procuring instruments used (e.g., fixed price
contracts, cost reimbursable contracts, purchase orders, and incentive
contracts) shall be determined by the recipient but shall be
appropriate for the particular procurement and for promoting the best
interest of the program or project involved. The ``cost-plus-a-
percentage-of-cost'' or ``percentage of construction cost'' methods of
contracting shall not be used.
(d) Contracts shall be made only with responsible contractors who
possess the potential ability to perform successfully under the terms
and conditions of the proposed procurement. Consideration shall be
given to such matters as contractor integrity, record of past
performance, financial and technical resources or accessibility to
other necessary resources. In certain circumstances, contracts with
certain parties are restricted by 14 CFR part 1265, the implementation
of Executive Order 12549 and 12689, ``Debarment and Suspension.''
(e) Recipients shall, on request, make available for NASA, pre-
award review and procurement documents, such as request for proposals
or invitations for bids, independent cost estimates, etc., when any of
the following conditions apply.
(1) A recipient's procurement procedures or operation fails to
comply with the procurement standards in NASA's implementation of this
Regulation.
(2) The procurement is expected to exceed the small purchase
threshold and is to be awarded without competition or only one bid or
offer is received in response to a solicitation.
(3) The procurement, which is expected to exceed the small purchase
threshold, specifies a ``brand name'' product.
(4) The proposed award over the small purchase threshold is to be
awarded to other than the apparent low bidder under a sealed bid
procurement.
(5) A proposed contract modification changes the scope of a
contract or increases the contract amount by more than the amount of
the small purchase threshold.
Sec. 1260.145 Cost and price analysis.
Some form of cost or price analysis shall be made and documented in
the procurement files in connection with every procurement action.
Price analysis may be accomplished in various ways, including the
comparison of price quotations submitted, market prices and similar
indicia, together with discounts. Cost analysis is the review and
evaluation of each element of cost to determine reasonableness,
allocability and allowability.
Sec. 1260.146 Procurement records.
Procurement records and files for purchases in excess of the small
purchase threshold shall include the following at a minimum.
(a) Basis for contractor selection,
(b) Justification for lack of competition when competitive bids or
offers are not obtained, and
(c) Basis for award cost or price.
Sec. 1260.147 Contract administration.
A system for contract administration shall be maintained to ensure
contractor conformance with the terms, conditions and specifications of
the contract and to ensure adequate and timely follow up of all
purchases. Recipients shall evaluate contractor performance and
document, as appropriate, whether contractors have met the terms,
conditions and specifications of the contract.
[[Page 38081]]
Sec. 1260.148 Contract provisions.
The recipient shall include, in addition to provisions to define a
sound and complete agreement, the following provisions in all
contracts. The following provisions shall also be applied to
subcontracts.
(a) Contracts in excess of the small purchase threshold shall
contain contractual provisions or conditions that allow for
administrative, contractual, or legal remedies in instances in which a
contractor violates or breaches the contract terms, and provide for
such remedial actions as may be appropriate.
(b) All contracts in excess of the small purchase threshold shall
contain suitable provisions for termination by the recipient, including
the manner by which termination shall be effected and the basis for
settlement. In addition, such contracts shall describe conditions under
which the contract may be terminated for default as well as conditions
where the contract may be terminated because of circumstances beyond
the control of the contractor.
(c) Except as otherwise required by statute, an award that requires
the contracting (or subcontracting) for construction or facility
improvements shall provide for the recipient to follow its own
requirements relating to bid guarantees, performance bonds, and payment
bonds unless the construction contract or subcontract exceeds $100,000.
For those contracts or subcontracts exceeding $100,000, NASA may accept
the bonding policy and requirements of the recipient, provided the NASA
has made a determination that the Federal Government's interest is
adequately protected. If such a determination has not been made, the
minimum requirements shall be as follows.
(1) A bid guarantee from each bidder equivalent to five percent of
the bid price. The ``bid guarantee'' shall consist of a firm commitment
such as a bid bond, certified check, or other negotiable instrument
accompanying a bid as assurance that the bidder shall, upon acceptance
of his bid, execute such contractual documents as may be required
within the time specified.
(2) A performance bond on the part of the contractor for 100
percent of the contract price. A ``performance bond'' is one executed
in connection with a contract to secure fulfillment of all the
contractor's obligations under such contract.
(3) A payment bond on the part of the contractor for 100 percent of
the contract price. A ``payment bond'' is one executed in connection
with a contract to assure payment as required by statute of all persons
supplying labor and material in the execution of the work provided for
in the contract.
(4) Where bonds are required in the situations described herein,
the bonds shall be obtained from companies holding certificates of
authority as acceptable sureties pursuant to 31 CFR part 223, ``Surety
Companies Doing Business with the United States.''
(d) All negotiated contracts (except those for less than the small
purchase threshold) awarded by recipients shall include a provision to
the effect that the recipient, NASA, the Comptroller General of the
United States, or any of their duly authorized representatives, shall
have access to any books, documents, papers and records of the
contractor which are directly pertinent to a specific program for the
purpose of making audits, examinations, excerpts and transcriptions.
(e) All contracts, including small purchases, awarded by recipients
and their contractors shall contain the procurement provisions of
Appendix A to this subpart, as applicable.
Reports and Records
Sec. 1260.150 Purpose of reports and records.
Sections 1260.151 through 1260.153 set forth the procedures for
monitoring and reporting on the recipient's financial and program
performance and the necessary standard reporting forms. They also set
forth record retention requirements.
Sec. 1260.151 Monitoring and reporting program performance.
(a) Recipients are responsible for managing and monitoring each
project, program, subcontract, function or activity supported by the
award. Recipients shall monitor subcontracts to ensure subcontractors
have met the audit requirements as delineated in Sec. 1260.126.
(b) The terms and conditions of the award shall prescribe the
frequency with which the performance reports shall be submitted. Except
as provided in Sec. 1260.151(f), performance reports shall not be
required more frequently than quarterly or, less frequently than
annually. Annual reports shall be due 90 calendar days after the grant
year; quarterly or semi-annual reports shall be due 30 days after the
reporting period. NASA may require annual reports before the
anniversary dates of multiple year awards in lieu of these
requirements. The final performance reports are due 90 calendar days
after the expiration or termination of the award.
(c) If inappropriate, a final technical or performance report shall
not be required after completion of the project.
(d) When required, performance reports shall generally contain, for
each award, brief information on each of the following.
(1) A comparison of actual accomplishments with the goals and
objectives established for the period, the findings of the
investigator, or both. Whenever appropriate and the output of programs
or projects can be readily quantified, such quantitative data should be
related to cost data for computation of unit costs.
(2) Reasons why established goals were not met, if appropriate.
(3) Other pertinent information including, when appropriate,
analysis and explanation of cost overruns or high unit costs.
(e) Recipients shall not be required to submit more than the
original and two copies of performance reports.
(f) Recipients shall immediately notify NASA of developments that
have a significant impact on the award-supported activities. Also,
notification shall be given in the case of problems, delays, or adverse
conditions which materially impair the ability to meet the objectives
of the award. This notification shall include a statement of the action
taken or contemplated, and any assistance needed to resolve the
situation.
(g) NASA may make site visits, as needed.
(h) NASA shall comply with clearance requirements of 5 CFR part
1320 when requesting performance data from recipients.
Sec. 1260.152 Financial reporting.
(a) When funds are advanced to recipients, each recipient is
required to submit the SF-272, Report of Federal Cash Transactions,
and, when necessary, its continuation sheet, SF 272a. NASA uses this
report to monitor cash advanced to the recipient and obtain
disbursement information for each agreement with the recipient.
(b) NASA requires forecasts of the recipient's cash requirements
for each of the four months following the quarter being reported, in
the ``Remarks'' section of the report.
(c) Recipients are required to submit the original of the report
for the Financial Management Office of the NASA Center which issued the
agreement 15 working days following the end of each Federal fiscal
quarter. Copies will be furnished to the appropriate grants officer
(see Sec. 1260.26(c)).
[[Page 38082]]
Sec. 1260.153 Retention and access requirements for records.
(a) This section sets forth requirements for record retention and
access to records for awards to recipients. NASA shall not impose any
other record retention or access requirements upon recipients.
(b) Financial records, supporting documents, statistical records,
and all other records pertinent to an award shall be retained for a
period of three years from the date of submission of the final
expenditure report or, for awards that are renewed quarterly or
annually, from the date of the submission of the quarterly or annual
financial report, as authorized by NASA. The only exceptions are the
following.
(1) If any litigation, claim, or audit is started before the
expiration of the three-year period, the records shall be retained
until all litigation, claims or audit findings involving the records
have been resolved and final action taken.
(2) Records for real property and equipment acquired with Federal
funds shall be retained for 3 years after final disposition.
(3) When records are transfered to or maintained by NASA, the 3-
year retention requirement is not applicable to the recipient.
(4) Indirect cost rate proposals, cost allocations plans, etc. as
specified in section 1260.153(g).
(c) Copies of original records may be substituted for the original
records if authorized by NASA.
(d) NASA shall request transfer of certain records to its custody
from recipients when it determines that the records possess long term
retention value. However, in order to avoid duplicate record keeping,
NASA may make arrangements for recipients to retain any records that
are continuously needed for joint use.
(e) NASA, the Inspector General, Comptroller General of the United
States, or any of their duly authorized representatives, have the right
of timely and unrestricted access to any books, documents, papers, or
other records of recipients that are pertinent to the awards, in order
to make audits, examinations, excerpts, transcripts and copies of such
documents. This right also includes timely and reasonable access to a
recipient's personnel for the purpose of interview and discussion
related to such documents. The rights of access in this paragraph are
not limited to the required retention period, but shall last as long as
records are retained.
(f) Unless required by statute, NASA shall place no restrictions on
recipients that limit public access to the records of recipients that
are pertinent to an award, except when NASA can demonstrate that such
records shall be kept confidential and would have been exempted from
disclosure pursuant to the Freedom of Information Act (5 U.S.C. 552) if
the records have belonged to NASA.
(g) Indirect cost rate proposals, cost allocations plan, etc.
Paragraphs (g)(1) and (g)(2) of this section apply to the following
types of documents, and their supporting records: Indirect cost rate
computations or proposals, cost allocation plans, and any similar
accounting computations of the rate at which a particular group of
costs is chargeable (such as computer usage chargeback rates or
composite fringe benefit rates).
(1) If submitted for negotiation. If the recipient submits to NASA
or the subrecipient submits to the recipient the proposal, plan, or
other computation to form the basis for negotiation of the rate, then
the 3-year retention period for its supporting records starts on the
date of such submission.
(2) If not submitted for negotiation. If the recipient is not
required to submit to NASA or the subrecipient is not required to
submit to the recipient the proposal, plan, or other computation for
negotiation purposes, then the 3-year retention period for the
proposal, plan, or other computation and its supporting records starts
at the end of the fiscal year (or other accounting period) covered by
the proposal, plan, or other computation.
Termination and Enforcement
Sec. 1260.160 Purpose of termination and enforcement.
Sections 1260.161 and 1260.162 set forth uniform suspension,
termination and enforcement procedures.
Sec. 1260.161 Termination.
(a) Awards may be terminated in whole or in part only if the
conditions in paragraph (a)(1), (2) or (3) of this section apply.
(1) By NASA, if a recipient materially fails to comply with the
terms and conditions of an award.
(2) By NASA with the consent of the recipient, in which case the
two parties shall agree upon the termination conditions, including the
effective date and, in the case of partial termination, the portion to
be terminated.
(3) By the recipient upon sending to NASA written notification
setting forth the reasons for such termination, the effective date,
and, in the case of partial termination, the portion to be terminated.
However, if NASA determines in the case of partial termination that the
reduced or modified portion of the grant will not accomplish the
purposes for which the grant was made, it may terminate the grant in
its entirety under either paragraphs (a)(1) or (2) or this section.
(b) If costs are allowed under an award, the responsibilities of
the recipient referred to in Sec. 1260.171(a), including those for
property management as applicable, shall be considered in the
termination of the award, and provision shall be made for continuing
responsibilities of the recipient after termination, as appropriate.
Sec. 1260.162 Enforcement.
(a) Remedies for noncompliance. If a recipient materially fails to
comply with the terms and conditions of an award, whether stated in a
Federal statute, regulation, assurance, application, or notice of
award, NASA may, in addition to imposing any of the special conditions
outlined in Sec. 1260.114, take one or more of the following actions,
as appropriate in the circumstances.
(1) Temporarily withhold cash payments pending correction of the
deficiency by the recipient or more severe enforcement action by NASA.
(2) Disallow (that is, deny both use of funds and any applicable
matching credit for) all or part of the cost of the activity or action
not in compliance.
(3) Wholly or partly suspend or terminate the current award.
(4) Withhold further awards.
(5) Take other remedies that may be legally available.
(b) Hearings and appeals. In taking an enforcement action, NASA
shall provide the recipient an opportunity for hearing, appeal, or
other administrative proceeding to which the recipient is entitled
under any statue or regulation applicable to the action involved.
(c) Effects of suspension and termination. Costs of a recipient
resulting from obligations incurred by the recipient during a
suspension or after termination of an award are not allowable unless
NASA expressly authorizes them in the notice of suspension or
termination or subsequently. Other recipient costs during suspension or
after termination which are necessary and not reasonably avoidable are
allowable if the conditions in paragraphs (c) (1) and (2) of this
section apply.
(1) The costs results from obligations which were properly incurred
by the recipient before the effective date of suspension or
termination, are not in anticipation of it, and in the case of a
termination, are noncancellable.
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(2) The costs would be allowable if the award were not suspended or
expired normally at the end of the funding period in which the
termination takes effect.
(d) Relationship to debarment and suspension. The enforcement
remedies identified in this section, including suspension and
termination, do not preclude a recipient from being subject to
debarment and suspension under E.O.'s 12549 and 12689 and 14 CFR part
1265 (see Section 1260.113).
After-The Award Requirements
Sec. 1260.170 Purpose.
Sections 1260.171 through 1260.173 contain closeout procedures and
other procedures for subsequent disallowances and adjustments.
Sec. 1260.171 Closeout procedures.
(a) Recipients shall submit, within 90 calendar days after the date
of completion of the award, all financial, performance, and other
reports as required by the terms and conditions of the award. NASA may
approve extensions when requested by the recipient.
(b) Unless NASA authorizes an extension, a recipient shall
liquidate all obligations incurred under the award not later than 90
calendar days after the funding period or the date of completion as
specified in the terms and conditions of the award or in agency
implementing instructions.
(c) NASA shall make prompt payments to a recipient for allowable
reimbursable costs under the award being closed out.
(d) The recipient shall promptly refund any balances of unobligated
cash that NASA has advanced or paid and that is not authorized to be
retained by the recipient for use in other projects. OMB Circular A-129
governs unreturned amounts that become delinquent debts.
(e) When authorized by the terms and conditions of the award, NASA
shall make a settlement for any upward or downward adjustments to the
Federal share of costs after closeout reports are received.
(f) The recipient shall account for any real and personal property
acquired with Federal funds or received from the Federal Government in
accordance with Sec. Sec. 1260.131 through 1260.137.
(g) In the event a final audit has not been performed prior to the
closeout of an award, NASA shall retain the right to recover an
appropriate amount after fully considering the recommendations on
disallowed costs resulting from the final audit.
Sec. 1260.172 Subsequent adjustments and continuing responsibilities.
(a) The closeout of an award does not affect any of the following.
(1) The right of NASA to disallow costs and recover funds on the
basis of a later audit or other review.
(2) The obligation of the recipient to return any funds due as a
result of later refunds, corrections, or other transactions.
(3) Audit requirements in Sec. 1260.126.
(4) Property management requirements in Secs. 1260.131 through
1260.137.
(5) Records retention as required in Sec. 1260.153.
(b) After closeout of an award, a relationship created under an
award may be modified or ended in whole or in part with the consent of
the NASA and the recipient, provided the responsibilities of the
recipient referred to in Sec. 1260.173(a), including those for property
management as applicable, are considered and provisions made for
continuing responsibilities of the recipient, as appropriate.
Sec. 1260.173 Collection of amounts due.
(a) Any funds paid to a recipient in excess of the amount to which
the recipient is finally determined to be entitled under the terms and
conditions of the award constitute a debt to the Federal Government. If
not paid within a reasonable period after the demand for payment, NASA
may reduce the debt by the provisions of paragraph (a) (1), (2) or (3)
of this section.
(1) Making an administrative offset against other requests for
reimbursements.
(2) Withholding advance payments otherwise due to the recipient.
(3) Taking other action permitted by statute.
(b) Except as otherwise provided by law, NASA shall charge interest
on an overdue debt in accordance with 4 CFR chapter II, ``Federal
Claims Collection Standards.''
Appendix A to Subpart B of Part 1260--Contract Provisions
All contracts awarded by a recipient, including small purchases,
shall contain the following provisions as applicable:
1. Equal Employment Opportunity--All contracts shall contain a
provision requiring compliance with Executive Order 11246; ``Equal
Employment Opportunity,'' as amended by Executive Order 11375,
``Amending Executive Order 11246 Relating to Equal Employment
Opportunity,'' and as supplemented by regulations at 41 CFR part 60,
``Office of Federal Contract Compliance Programs, Equal Employment
Opportunity, Department of Labor.''
2. Copeland ``Anti-Kickback'' Act (18 U.S.C. 874 and 40 U.S.C.
276c)--All contracts in excess of $2,000 for construction or repair
awarded by recipients shall include a provision for compliance with
the Copeland ``Anti-Kickback'' Act (18 U.S.C. 874), as supplemented
by Department of Labor regulations (29 CFR part 3, ``Contractors and
Subcontractors on Public Building or Public Work Financed in Whole
or in Part by Loans or Grants from the United States''). The Act
provides that each contractor shall be prohibited from inducing, by
any means, any person employed in the construction, completion, or
repair of public work, to give up any part of the compensation to
which he is otherwise entitled. The recipient shall report all
suspected or reported violations to NASA.
3. Davis-Bacon Act, as amended (40 U.S.C. 276a to a-7)--When
required by Federal program legislation, all construction contracts
awarded by the recipients of more than $2,000 shall include a
provision for compliance with the Davis-Bacon Act (40 U.S.C. 276a to
a-7) and as supplemented by Department of Labor regulations (29 CFR
part 5, ``Labor Standards Provisions Applicable to Contracts
Governing Federally Financed and Assisted Construction''). Under
this Act, contractors shall be required to pay wages to laborers and
mechanics at a rate not less than the minimum wages specified in a
wage determination made by the Secretary of Labor. In addition,
contractors shall be required to pay wages not less than once a
week. The recipient shall place a copy of the current prevailing
wage determination issued by the Department of Labor in each
solicitation and the award of a contract shall be conditioned upon
the acceptance of the wage determination. The recipient shall report
all suspected or reported violations to the NASA.
4. Contract Work Hours and Safety Standards Act (40 U.S.C. 327-
333)--Where applicable, all contracts awarded by recipients in
excess of $2,000 for construction contracts and in excess of $2,500
for other contracts that involve the employment of mechanics or
laborers shall include a provision for compliance with sections 102
and 107 of the Contract Work Hours and Safety Standards Act (40
U.S.C. 327-333), as supplemented by Department of Labor regulations
(29 CFR part 5). Under Subsection 102 of the Act, each contractor
shall be required to compute the wages of every mechanic and laborer
on the basis of a standard work week of 40 hours. Work in excess of
the standard work week is permissible provided that the worker is
compensated at a rate of not less than 1\1/2\ times the basic rate
of pay for all hours worked in excess of 40 hours in the work week.
Section 107 of the Act is applicable to construction work and
provides that no laborer or mechanic shall be required to work in
surroundings or under working conditions which are unsanitary,
hazardous or dangerous. These requirements do not apply to the
purchases of supplies or materials or articles ordinarily available
on the open market, or contracts for transportation or transmission
of intelligence.
5. Rights to Inventions Made Under a Contract or Agreement--
Contracts or agreements for the performance of
[[Page 38084]]
experimental, developmental, or research work shall provide for the
rights of the Federal Government and the recipient in any resulting
invention in accordance with 37 CFR part 401, ``Rights to Inventions
Made by Nonprofit Organizations and Small Business Firms Under
Government Grants, Contracts and Cooperative Agreements,'' and any
implementing regulations issued by the awarding agency.
6. Clean Air Act (42 U.S.C. 7401 et seq.) and the Federal Water
Pollution Control Act (33 U.S.C. 1251 et seq.), as amended--
Contracts of amounts in excess of $100,000 shall contain a provision
that requires the recipient to agree to comply with all applicable
standards, orders or regulations issued pursuant to the Clean Air
Act (42 U.S.C. 7401 et seq.) and the Federal Water Pollution Control
Act as amended (33 U.S.C. 1251 et seq.) Violations shall be reported
to NASA and the Regional Office of the Environmental Protection
Agency (EPA).
7. Byrd Anti-Lobbying Amendment (31 U.S.C. 1352)--Contractors
who apply or bid for an award of $100,000 or more shall file the
required certification. Each tier certifies to the tier above that
it will not and has not used Federal appropriated funds to pay any
person or organization for influencing or attempting to influence an
officer or employee of any agency, a member of Congress, officer or
employee of Congress, or an employee of a member of Congress in
connection with obtaining any Federal contract, grant or any other
award covered by 31 U.S.C. 1352. Each tier shall also disclose any
lobbying with non-Federal funds that takes place in connection with
obtaining any Federal award. Such disclosures are forwarded from
tier to tier up to the recipient.
8. Debarment and Suspension (Executive Orders 12549 and 12689)--
No contract shall be made to parties listed on the General Services
Administration's List of Parties Excluded from Federal Procurement
or Nonprocurement Programs in accordance with Executive Orders 12549
and 12689, ``Debarment and Suspension.'' This list contains the
names of parties debarred, suspended, or otherwise excluded by
agencies, and contractors declared ineligible under statutory or
regulatory authority other than Executive Order 12549. Contractors
with awards that exceed the small purchase threshold shall provide
the required certification regarding its exclusion status and that
of its principal employees.
[FR Doc. 96-18363 Filed 7-22-96; 8:45 am]
BILLING CODE 7510-01-M
