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8 600.111 Pre-award policies.
(a) Use of Grants and Cooperative Agreements, and Contracts. In each instance, the DOE shall decide on the appropriate award instrument (i.e., grant, cooperative agreement, or 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. DOE will, whenever practical, notify the public of its intended funding priorities for discretionary grant programs, unless funding priorities are established by Federal statute. 8 600.112 Forms for applying for Fed.
eral assistance. (a) General. An application for an award shall be on the form or in the format specified in a program rule, in the solicitation, or in these regulations (see $ 600.10). When the SF-424 form is not used, DOE shall indicate whether the application is subject to review by the State under E.O. 12372. DOE may also require applicants to complete
(1) The Notice of Energy RD&D Project (DOE Form 538) if the application is for a research, development, or demonstration project; or
(2) The Federal Assistance Management Summary Report (DOE F 4600.5) or the Federal Assistance Milestone Plan (DOE F 4600.3) as a baseline plan in accordance with the terms and conditions of award if required by program rule or the solicitation. If a solicitation other than a program rule requires the use of one or both of these forms, the solicitation shall contain an expla
nation of how the information to be provided relates to the objectives of the program.
(b) Budgetary information. DOE may request and the applicant shall submit the minimum budgetary information necessary to evaluate the costs of the proposed project.
(1) Applicants for research awards, other than State, local, or Indian tribal governments, will use DOE budget forms ERF 4620.1 and ERF 4620.1A. All other applicants shall use the budget formats established in the solicitation or program regulations.
(2) DOE may, subsequent to receipt of an application, request additional information from an applicant when necessary for clarification or to make informed preaward determinations.
(c) Continuation and renewal applications. DOE may require that an application for a continuation or renewal award (see $600.31 (b) and (c)) be made in the format or on the forms authorized by paragraphs (a) and (b) of this section. $ 600.113 Debarment and suspension.
Recipients shall comply with the nonprocurement debarment and suspension common rule implementing E.O.'s 12549 and 12689, “Debarment and Suspension," 10 CFR part 1036. This common rule restricts subawards and contracts with certain parties that are debarred, suspended or otherwise cluded from or ineligible for participation in Federal assistance programs or activities. 8600.114 Special award conditions.
(a) 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, DOE may impose additional requirements as needed, without regard to the deviation provisions of $ 600.4. 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, and the time allowed for completing the corrective
actions. Reconsideration of the addi- funds to the purchase of recycled prodtional requirements may be requested ucts pursuant to the EPA guidelines. at any time. Any special conditions shall be promptly removed once the
$ 600.117 Certifications and represenconditions that prompted them have
tations. been corrected.
Unless prohibited by statute or codi(b) A recipient may place a special fied regulation, each Federal awarding restrictive condition, as specified in
agency is authorized and encouraged to paragraph (a) of this section. in a allow recipients to submit certifisubaward. In any such case, the recipi
cations and representations required ent must notify DOE in writing within
by statute, executive order, or regula15 days of the subaward. DOE shall de
tion on an annual basis, if the recipicide whether to notify OMB and other
ents have ongoing and continuing relainterested parties.
tionships with the agency. Annual cer
tifications and representations shall be $ 600.115 Metric system of measure
signed by responsible officials with the ment.
authority to ensure recipients' compli
ance with the pertinent requirements. The Metric Conversion Act, as amended by the Omnibus Trade and
POST-AWARD REQUIREMENTS Competitiveness Act (15 U.S.C. 205) declares that the metric system is the Financial and Program Management preferred measurement system for U.S. trade and commerce. The Act requires
8600.120 Purpose of financial and pro
gram management. each Federal agency to establish a date or dates in consultation with the Sec
Sections 600.121 through 600.128 preretary of Commerce, when the metric
scribe standards for financial managesystem of measurement will be used in
ment systems, methods for making the agency's procurements, grants, and
payments and rules for satisfying cost other business-related activities. Met
sharing and matching requirements, ric implementation may take longer
accounting for program income, budget where the use of the system is initially
revision approvals, making audits, deimpractical or likely to cause signifi
termining allowability of cost, and escant inefficiencies in the accomplish
tablishing fund availability. ment of federally-funded activities.
8600.121 Standards for financial manDOE will follow the provisions of E.O.
agement systems. 12770, "Metric Usage in Federal Gov
(a) Recipients shall relate financial ernment Programs."
data to performance data and develop $ 600.116 Resource Conservation and
unit cost information whenever pracRecovery Act.
tical. For awards that support re
search, it should be noted that it is Under the Act (Pub. L. 94-580 codified
generally not appropriate to develop at 42 U.S.C. 6962), any State agency or unit cost information. agency of a political subdivision of a (b) Except for the provisions of State which is using appropriated Fed 600.121(f) and 600.181, recipients' finaneral funds must comply with section cial management systems shall provide 6002. Section 6002 requires that pref- for the following: erence be given in procurement pro (1) Accurate, current and complete grams to the purchase of specific prod- disclosure of the financial results of ucts containing recycled materials each federally-sponsored project or identified in guidelines developed by program in accordance with the reportthe Environmental Protection Agency ing requirements set forth in $ 600.152. (EPA) (40 CFR parts 247-254). Accord- If a DOE award requires reporting on ingly, State and local institutions of an accrual basis from a recipient that higher education, hospitals, and non- maintains its records on other than an profit organizations that receive direct accrual basis, the recipient shall not be Federal awards or other Federal funds required to establish an accrual acshall give preference in their procure- counting system. These recipients may ment programs funded with Federal develop such accrual data for their re
ports on the basis of an analysis of the (d) The Contracting Officer may redocumentation on hand.
quire adequate fidelity bond coverage (2) Records that identify adequately where the recipient lacks sufficient the source and application of funds for coverage to protect the Federal Govfederally-sponsored activities. These
ernm records shall contain information per (e) Where bonds are required in the taining to Federal awards, authoriza situations described in $$ 600.121 (c) and tions, obligations, unobligated bal (d), the bonds shall be obtained from ances, assets, outlays, income and in companies holding certificates of auterest.
thority as acceptable sureties, as pre(3) Effective control over and ac
scribed in 31 CFR part 223, "Surety countability for all funds, property and Companies Doing Business with the other assets. Recipients shall ade
United States." quately safeguard all such assets and (1) Individuals whose financial manassure they are used solely for author
agement systems do not meet the miniized purposes.
mum standards of $600.121 (b) shall (4) Comparison of outlays with budg
maintain a separate bank account for et amounts for each award. Whenever
deposit of award or subaward funds. appropriate, financial information
Disbursements by the recipient or subshould be related to performance and
recipient from this account shall be unit cost data. As discussed in para
supported by source documentation graph (a) of this section, unit cost data
such as canceled checks, paid bills, reis generally not appropriate for awards
ceipts, payrolls, etc. that support research.
(5) Written procedures to minimize 8600.122 Payment. the time elapsing between the transfer of funds to the recipient from the U.S.
(a) Payment methods shall minimize Treasury and the issuance or redemp
the time elapsing between the transfer tion of checks, warrants or payments
of funds from the United States Treasby other means for program purposes
ury and the issuance or redemption of by the recipient. To the extent that the checks, warrants, or payment by other provisions of the Cash Management Im
means by the recipients. Payment provement Act (CMIA) (Pub. L. 101-453)
methods of State agencies or instrugovern, payment methods of State
mentalities shall be consistent with agencies, instrumentalities, and fiscal
Treasury-State CMIA agreements or agents shall be consistent with CMIA default procedures codified at 31 CFR Treasury-State Agreements or the part 205. CMIA default procedures codified at 31 (b) Recipients will be paid in adCFR part 205, “Withdrawal of Cash vance, provided they maintain or demfrom the Treasury for Advances under onstrate the willingness to maintain: Federal Grant and Other Programs."
(1) Written procedures that minimize (6) Written procedures for determin the time elapsing between the transfer ing the reasonableness, allocability of funds and disbursement by the recipand allowability of costs in accordance ient, and with the provisions of the applicable (2) Financial management systems Federal cost principles and the terms that meet the standards for fund conand conditions of the award.
trol and accountability as established (7) Accounting records including cost in $600.121. Cash advances to a recipiaccounting records that are supported ent organization shall be limited to the by source documentation.
minimum amounts needed and be (c) Where the Federal Government timed to be in accordance with the acguarantees or insures the repayment of tual, immediate cash requirements of money borrowed by the recipient, the the recipient organization in carrying Contracting Officer, at his or her dis out the purpose of the approved procretion, may require adequate bonding gram or project. The timing and and insurance if the bonding and insur amount of cash advances shall be as ance requirements of the recipient are close as is administratively feasible to not deemed adequate to protect the in the actual disbursements by the recipiterest of the Federal Government.
ent organization for direct program or
project costs and the proportionate unwilling or unable to provide timely share of any allowable indirect costs. advances to their subrecipient to meet
(c) Whenever possible, advances shall the subrecipient's actual cash disbursebe consolidated to cover anticipated ments. cash needs for all awards made by the (g) To the extent available, recipiDOE to the recipient.
ents shall disburse funds available from (1) Advance payment mechanisms in repayments to and interest earned on a clude, but are not limited to, Treasury revolving fund, program income, recheck and electronic funds transfer. bates, refunds, contract settlements,
(2) Advance payment mechanisms are audit recoveries and interest earned on subject to 31 CFR part 205.
such funds before requesting additional (3) Recipients may submit requests cash payments. for advances and reimbursements at (h) Unless otherwise required by statleast monthly when electronic fund ute, DOE will not withhold payments transfers are not used.
for proper charges made by recipients (d) Requests for Treasury check ad at any time during the project period vance payment shall be submitted on unless paragraph (h)(1) or (h)(2) of this SF-270, “Request for Advance or Reimbursement," or other forms as may be (1) A recipient has failed to comply authorized by OMB. This form is not to with the project objectives, the terms be used when Treasury check advance and conditions of the award, or DOE repayments are made to the recipient porting requirements. automatically through the use of a pre (2) The recipient or subrecipient is determined payment schedule or if pre delinquent in a debt to the United cluded by special DOE instructions for States. Under such conditions, the Fedelectronic funds transfer.
eral awarding agency may, upon rea(e) Reimbursement is the preferred sonable notice, inform the recipient method when the requirements in para that payments shall not be made for graph (b) of this section cannot be met. obligations incurred after a specified DOE may also use this method on any date until the conditions are corrected construction agreement, or if the or the indebtedness to the Federal Govmajor portion of the construction ernment is liquidated. Before withholdproject is accomplished through pri- ing any payment, DOE shall notify the vate market financing or Federal recipient that payments shall not be loans, and the Federal assistance con made for obligations incurred after a stitutes a minor portion of the project. specified date, which shall ordinarily
(1) When the reimbursement method be no sooner than 30 days from the date is used, DOE shall make payment with of the notice, until the recipient corin 30 days after receipt of the billing, rects the noncompliance or pays the inunless the billing is improper.
debtedness to the Federal government. (2) Recipients are authorized to sub (1) Standards governing the use of mit requests for reimbursement at banks and other institutions as deposileast monthly when electronic funds tories of funds advanced under awards transfers are not used.
are as follows. (1) If a recipient cannot meet the cri (1) Except for situations described in teria for advance payments and DOE paragraph (i)(2) of this section, DOE has determined that reimbursement is shall not require separate depository not feasible because the recipient lacks accounts for funds provided to a recipisufficient working capital, DOE may ent or establish any eligibility requireprovide cash on a working capital ad- ments for depositories for funds provance basis. Under this procedure, DOE vided to a recipient. However, recipiadvances cash to the recipient to cover ents must be able to account for the reIts estimated disbursement needs for ceipt, obligation and expenditure of an initial period generally geared to funds. the recipient's disbursing cycle. There (2) Advances of Federal funds shall be after, DOE reimburses the recipient for deposited and maintained in insured its actual cash disbursements. The accounts whenever possible. working capital advance method of (j) Consistent with the national goal payment will not be used for recipients of expanding the opportunities for women-owned and minority-owned cies, however, have the option of using business enterprises, recipients are en- this form for construction programs in couraged to use women-owned and mi- lieu of the SF-271, "Outlay Report and nority-owned banks (a bank which is Request for Reimbursement for Conowned at least 50 percent by women or struction Programs." minority group members).
(2) SF-271, Outlay Report and Re(k) Recipients shall maintain ad- quest for Reimbursement for Construcvances of Federal funds in interest tion Programs. Each Federal awarding bearing accounts, unless paragraph (k) agency shall adopt the SF-271 as the (1), (2) or (3) of this section apply.
standard form to be used for requesting (1) The recipient receives less than reimbursement for construction pro$120,000 in Federal awards per year. grams. However, a Federal awarding
(2) The best reasonably available in agency may substitute the SF-270 terest bearing account would not be ex when the Federal awarding agency depected to earn interest in excess of $250 termines that it provides adequate inper year on Federal cash balances.
formation to meet Federal needs. (3) The depository would require an (n) The DOE may convert a recipient average or minimum balance so high from advance payment to reimbursethat it would not be feasible within the ment whenever the recipient no longer expected Federal and non-Federal cash meets the criteria for advance payment resources.
specified in paragraph (b) of this sec(1) For those entities where CMIA tion. Any such conversion may be acand its implementing regulations do complished only after the DOE has adnot apply, interest earned on Federal vised the recipient in writing of the advances deposited in interest bearing reasons for the proposed action and has accounts shall be remitted annually to provided a period of at least 30 days the HHS Payment Management Sys- within which the recipient may take tem through an electronic medium corrective action or provide satisfacsuch as the FEDWIRE Deposit system. tory assurances of its intention to take Recipients which do not have this ca- such action. pability should use a check. The ad (0) With prior DOE approval and in dress is the Department of Health and accordance with written DOE instrucHuman Services, Payment Manage- tions, a recipient may assign to a bank, ment System, P.O. Box 6021, Rockville, trust company or other financing instiMD 20852. Interest amounts up to $250 tution, including any Federal lending per year may be retained by the recipi- agency, reimbursement by Treasury ent for administrative expense. State check due from DOE under the followuniversities and hospitals shall complying conditions: with CMIA, as it pertains to interest. If (1) The award provides for reimbursean entity subject to CMIA uses its own ment totaling $1,000 or more; funds to pay pre-award costs for discre- (2) The assignment covers all tionary awards without prior written amounts payable under the award that approval from the Federal awarding have not already been paid; agency, it waives its right to recover (3) Reassignment is prohibited; and the interest under CMIA.
(4) The assignee files a written notice (m) Except as noted elsewhere in this of award payment assignment and a subpart, only the following forms shall true copy of the instrument of assignbe authorized for the recipients in re- ment with DOE. Any interest costs requesting advances and reimburse sulting from a loan obtained on the ments. Federal agencies shall not re basis of an assignment are unallowable quire more than an original and two charges to DOE award funds or any recopies of these forms.
quired cost sharing. (1) SF-270, Request for Advance or (p) Recipients shall observe the reReimbursement. Each Federal award quirements of this section in making ing agency shall adopt the SF-270 as a or withholding payments to standard form for all nonconstruction subrecipients except that the forms programs when electronic funds trans- used by recipients are not required to fer or predetermined advance methods be used by subrecipients when requestare not used. Federal awarding agen- ing advances or reimbursement.