Page images

tions, as appropriate in the cir- $600.244 Termination for convenience. cumstances:

Except as provided in $600.443 awards (1) Temporarily withhold cash pay

may be terminated in whole or in part ments pending correction of the defi

only as follows: ciency by the grantee or subgrantee or (a) By the awarding agency with the more severe enforcement action by the

consent of the grantee or subgrantee in awarding agency,

which case the two parties shall agree (2) Disallow (that is, deny both use of upon the termination conditions, infunds and matching credit for) all or cluding the effective date and in the part of the cost of the activity or ac- case of partial termination, the portion tion not in compliance,

to be terminated, or (3) Wholly or partly suspend or ter- (b) By the grantee or subgrantee minate the current award for the upon written notification to the awardgrantee's or subgrantee's program, ing agency, setting forth the reasons

(4) Withhold further awards for the for such termination, the effective program, or

date, and in the case of partial termi(5) Take other remedies that may be

nation, the portion to be terminated. legally available.

However, if, in the case of a partial ter(b) Hearings, appeals. In taking an en- mination, the awarding agency deterforcement action, the awarding agency

mines that the remaining portion of will provide the grantee or subgrantee

the award will not accomplish the puran opportunity for such hearing, ap

poses for which the award was made, peal, or other administrative proceed

the awarding agency may terminate ing to which the grantee or subgrantee

the award in its entirety under either is entitled under any statute or regula

$ 600.443 or paragraph (a) of this section applicable to the action involved.

tion. (c) Effects of suspension and termi

After-The-Grant Requirements nation. Costs of grantee or subgrantee resulting from obligations incurred by $ 600.250 Closeout. the grantee or subgrantee during a sus

(a) General. The Federal agency will pension or after termination of an

close out the award when it determines award are not allowable unless the

that all applicable administrative acawarding agency expressly authorizes

tions and all required work of the them in the notice of suspension or ter

grant has been completed. mination or subsequently. Other grant

(b) Reports. Within 90 days after the ee or subgrantee costs during suspen

expiration or termination of the grant, sion or after termination which are

the grantee must submit all financial, necessary and not reasonably avoidable

performance, and other reports reare allowable if:

quired as a condition of the grant. (1) The costs result from obligations

Upon request by the grantee, Federal which were properly incurred by the

agencies may extend this timeframe. grantee or subgrantee before the effec

These may include but are not limited tive date of suspension or termination,

to: are not in anticipation of it, and, in the

(1) Final performance of progress recase of a termination, are

port. noncancellable, and,

(2) Financial Status Report (SF 269) OT (2) The costs would be allowable if

Outlay Report and Request for Reimthe award were not suspended or ex- bursement for Construction Programs pired normally at the end of the fund

(SF-271) (as applicable). ing period in which the termination (3) Final request for payment (SF-270) takes effect.

(if applicable). (d) Relationship to debarment and sus- (4) Invention disclosure (if applicable). pension. The enforcement remedies (5) Federally-owned property report: identified in this section, including In accordance with $600.432(f), a grantsuspension and termination, do not ee must submit an inventory of all fedpreclude grantee or subgrantee from erally owned property (as distinct from being subject to “Debarment and Sus- property acquired with grant funds) for pension" under E.O. 12549 (see $600.435). which it is accountable and request dis

Entitlements (Reserved]

Subpart D-Cooperative


SOURCE: 53 FR 5262, Feb. 22, 1988, unless otherwise noted. Redesignated at 59 FR 53265, Oct. 21, 1994.

position instructions from the Federal agency of property no longer needed.

(C) Cost adjustment. The Federal agency will, within 90 days after receipt of reports in paragraph (b) of this section, make upward or downward adjustments to the allowable costs.

(d) Cash adjustments. (1) The Federal agency will make prompt payment to the grantee for allowable reimbursable costs.

(2) The grantee must immediately refund to the Federal agency any balance of unobligated (unencumbered) cash advanced that is not authorized to be retained for use on other grants. $ 600.251 Later disallowances and ad

justments. The closeout of a grant does not affect:

(a) The Federal agency's right to disallow costs and recover funds on the basis of a later audit or other review;

(b) The grantee's obligation to return any funds due as a result of later refunds, corrections, other transactions;

(c) Records retention as required in $ 600.442;

(d) Property management requirements in 8$ 600.431 and 600.432; and

(e) Audit requirements in $600.426. $ 600.252 Collection of amounts due.

(a) Any funds paid to a grantee in excess of the amount to which the grantee is finally determined to be entitled under the terms of the award constitute a debt to the Federal Government. If not paid within a reasonable period after demand, the Federal agency may reduce the debt by:

(1) Making an adminstrative offset against other requests for reimbursements,

(2) Withholding advance payments otherwise due to the grantee, or

(3) Other action permitted by law.

(b) Except where otherwise provided by statutes or regulations, the Federal agency will charge interest on an overdue debt in accordance with the Federal Claims Collection Standards (4 CFR Ch. II). The date from which interest is computed is not extended by litigation or the filing of any form of ap peal.

$ 600.300 Scope and applicability.

(a) This subpart establishes policies and procedures for the award and administration of cooperative agreements.

(b) The requirements of this subpart shall apply as indicated in $ 600.2 except that this subpart shall not apply to any new award resulting from a solicitation issued before February 22, 1988.

(c) The noncompliance procedures of 8600.162 and $ 600.243, and the suspension and termination procedures of $ 600.29 which are specified for cooperative agreement use in $ 600.305 shall apply, with the concurrence of the affected parties, to any applicable action initiated before February 22, 1988, and shall apply to any applicable action initiated after February 22, 1988, under an active cooperative agreement. The closeout procedures of 88 600.170 through 600.173 and $$ 600.250 through 600.252 which are specified in $600.305 shall apply to any terminated or expired cooperative agreement which has not been closed out prior to February 22, 1988. (53 FR 5262, Feb. 22, 1988, as amended at 53 FR 8047, Mar. 11, 1988; 59 FR 53266, Oct. 21, 1994)


$ 600.301 Definitions.

The definitions contained in $600.101 except for "formula grant" and "subgrant” shall apply to all cooperative agreements. In addition, for purposes of this subpart, participant means the organization, individual, or other entity that receives a cooperative agreement award from DOE and is financially accountable for the use of any DOE funds or property provided for the performance of the project, and is legally responsible for carrying out the terms and conditions of the award.

8 600.302 Selection of cooperative

agreement as financial assistance

instrument. (a) Determinations. When DOE determines in accordance with the appropriate authorizing statute, the Federal Grant and Cooperative Agreement Act, Public Law 97–258, and $600.5 that the principal purpose of the relationship is assistance and it is anticipated that there will be substantial involvement between DOE and the participant during performance of the contemplated activity, the award instrument shall be a cooperative agreement.

(b) Substantial involvement. Anticipated substantial involvement between DOE and the participant during performance of the contemplated activity is the only criterion which distinguishes a grant relationship from a cooperative agreement relationship.

(1) Substantial involvement exists when:

(1) Responsibility for the management, control, or direction of the project is shared by DOE and the participant, or

(ii) Responsibility for the performance of the project is shared by DOE and the participant, or

(iii) DOE has the right to intervene in the conduct or performance of project activities for programmatic reasons. Intervention includes the interruption or modification of the conduct or performance of project activities. (Suspension or termination of the cooperative agreement under $8 600.160 through 600.162 and 88 600.243 through 600.244 do not constitute "intervention in the conduct or performance of project activities.")

(2) Providing technical assistance or guidance of programmatic nature to a recipient does not constitute substantial involvement if the recipient is not required to follow such guidance or if the technical assistance or guidance is provided at the request of the recipient, and such assistance or guidance is not expected to result in continuing DOE involvement in the performance of the project.

(3) Technical assistance or guidance which pertains to the administrative requirements of the award does not constitute substantial involvement.

(c) Statement of substantial involvement between DOE and the participant. Every cooperative agreement shall explicitly state the substantial involvement anticipated between DOE and the participant during performance of the project.

(1) The cooperative agreement award document shall affirmatively state, under the heading “Substantial Involvement between DOE and the Participant,” all relevant information concerning the substantial involvement anticipated between DOE and the participant during performance of the project. This statement shall describe the following:

(i) The project activities in which substantial involvement between DOE and the participant is anticipated;

(ii) The specific responsibilities and authorities of DOE and the participant in the conduct and/or performance of each of the project activities in which substantial involvement is anticipated;

(iii) Any limitations on DOE/participant responsibilities and authorities in the conduct and/or performance of each of the project activities;

(iv) The duration of DOE/participant responsibilities and authorities in the conduct and/or performance of each of the project activities.

(2) A statement of substantial involvement between DOE and the participant shall be developed so that it:

(i) Represents only the DOE involvement intended and does not unnecessarily increase DOE liability under the cooperative agreement;

(ii) Integrates, as appropriate, DOE's responsibilities and involvement in project activities with administrative requirements such as performance reporting and monitoring, property management, and suspension and termination; and

(iii) Specifies which general administrative requirements applicable to cooperative agreements are deleted or modified because they are inconsistent with the provisions related to substantial involvement. (53 FR 5262, Feb. 22, 1988, as amended at 59 FR 53266, Oct. 21, 1994)

$ 600.303 Application budgetary infor grant may also be converted to a coopmation.

erative agreement at any time after For cooperative agreement applica

award when it is mutually agreed that tion subject to the SEB process, DOE

DOE should be substantially involved may require that applicants, other in the performance of the project. The than governmental entities, submit

conversion shall be accomplished by an budget information in a different for- amendment to the award. The amendmat and in greater detail than that ment documents shall: specified in $$ 600.10, 600.112 and 600.410 (i) Change the instrument-type desonly when that information is essential ignation in the award document from to evaluation under the SEB process. “Grant" to "Cooperative Agreement”; State, local, and Indian tribal govern- (ii) Indicate that thereafter subpart C ments shall continue to provide budget of this part shall apply to the agreeinformation as specified in $$ 600.10, ment in lieu of subpart B of this part; 600.112 and 600.410 and shall be excluded

(iii) Add a statement of substantial from this requirement. (Also see

involvement between DOE and the par$$ 600.10, 600.112 and 600.410 for the other

ticipant in accordance with $600.202(c); requirements pertinent to application and contents.)

(iv) Change any other terms, as ap(53 FR 5262, Feb. 22, 1988, as amended at 53 propriate (e.g., special provisions, reFR 8047, Mar. 11, 1988; 59 FR 53266, Oct. 21, porting), to reflect the increased in1994)

volvement by DOE. 8600.304 Instrument conversion.

(3) In the event DOE determines sub

stantial involvement between the par(a) Conversion of a grant to a coopera

ties is necessary for at least twelve tive agreement. Subsequent to the award

months after the expiration date of the of a grant, it may be necessary for DOE

current budget period and the grantee to become substantially involved with

does not agree to conversion of the inthe participant in the performance of

strument at the time of negotiation, the project. However, the introduction of substantial involvement does not by

the grantee's refusal to agree to the

conversion will be the basis for not itself constitute a conversion from a

making a continuation award, renewal grant to a cooperative agreement relationship nor does it necessarily require

award, or extension and the recipient

shall have no right of appeal under tht a change be made in instrument type.

$600.26. Any refusal to accept a cooper(1) Determination. When DOE deter

ative agreement award shall be treated

in accordance with $600.22. mines in accordance with $ 600.202 that

(b) Conversion of a cooperative agreea cooperative agreement would be the appropriate instrument because of the

ment to a grant. A cooperative agreenecessity for substantial involvement

ment may be converted to a grant if between the parties, and the substan

DOE determines after award of a cooptial involvement is necessary for a pe

erative agreement that the anticipated riod of at least twelve months beyond

substantial involvement between the the expiration date of the current

parties will not be necessary. Converbudget period, DOE will initiate action

sion of a cooperative agreement to a to convert the grant to a cooperative

grant shall be accomplished by a bilatagreement.

eral amendment to the award as soon (2) Conversion. DOE shall notify the

as possible after it is determined that grantee of its intention to convert

no substantial involvement will be necfrom a grant to a cooperative agree

essary between DOE and the particiment as soon as the decision is made, pant during performance of the activbut no later than sixty days prior to

ity. The amendment shall: the expiration date of the current (1) Change the instrument type desbudget period. Conversion of a grant to ignation in the award document from a cooperative agreement shall be ef- "Cooperative Agreement” to “Grant”; fected at the time of negotiation of the (2) Indicate that thereafter subpart B continuation or renewal award or any of this part will apply to the agreement extension of twelve months or more. A in lieu of subpart C of this part;

(3) Delete the “Substantial Involve- sharing for research, development, and ment Between DOE and Participant" demonstration projects include the posection from the agreement; and

tential benefits to a participant result(4) As necessary, change any other ing from the project and the length of administrative terms which relate to time before a project is likely to be the substantial involvement between commercially successful. DOE and the participant. If the partici

(53 FR 5265 Feb. 22, 1988 as amended at 53 FR pant does not agree to the conversion, 8047, Mar. 11, 1988; 59 FR 53266, Oct. 21, 1994) DOE shall initiate a termination of the agreement in accordance with $600.29. $ 600.307 Patents, data, and copy

rights. (53 FR 5262, Feb. 22, 1988, as amended at 53 FR 8047, Mar. 11, 1988)

(a) General. Cooperative agreements

shall be awarded and administered by 8600.305 Application, funding, and ad- DOE in compliance with the patent, ministrative requirements.

data, and copyright provisions of this Unless otherwise specified in this

section and 48 CFR part 927. DOE shall subpart or subpart A of this part, the

specify in each award, the applicable application, funding, and administra

patent, data, and copyright provisions. tive requirements for cooperative

(b) Required clauses. DOE shall deteragreements are specified in subpart B

mine which of the clauses listed in this of this part for recipients who are

paragraph or in 48 CFR part 927 apply, other than State, local, or Indian tribal

based on DOE review of the applicagovernments and subpart C of this part

tion, other information submitted by for State, local and Indian tribal gov

the applicant, and any negotiations. ernments. Furthermore, the audit re

These clauses may be modified by DOE quirements set forth in subpart D of

Patent Counsel, in accordance with the this part shall apply to cooperative

procedures of 48 CFR part 927, for a agreements with State and local gov

particular cooperative agreement or ernments.

for a class of cooperative agreements.

In each patent, data, and copyright (53 FR 8047, Mar. 11, 1988, as amended at 59 clause selected for inclusion in the coFR 53266, Oct. 21, 1994)

operative agreement, the terms

"grant" or "contract" shall be read as 8600.306 Cost sharing.

"cooperative agreement” or “agreeIn addition to the requirements of ment,” the terms “grantee” or “con$600.123 or $600.224, the following re- tractor" shall be read as "participant," quirements apply to research, develop the term "subgrant" shall be read as ment, and demonstration projects: "subaward," and "subcontract" or

(a) When DOE awards cooperative “contract” awarded under a grant shall agreements for research, development, be read as “contract" under a cooperaand demonstration projects where the tive agreement. primary purpose of the project is the (1) Patent Rights (Small Business Firm ultimate commercialization and utili- of Nonprofit Organization). The clause zation of technology by the private sec- set forth in $600.33(b)(1) shall be intor and when there are reasonable ex- cluded in cooperative agreements with pectations that the participant will re- small business firms and nonprofit orceive significant present or future eco- ganizations where such cooperative nomic benefits beyond the instant agreements have as a purpose the conaward as a result of the performance of duct of experimental, developmental, the cooperative agreement, cost shar- demonstration, or research work. The ing shall be required unless waived by policies and procedures of $600.33(b)(1) the cognizant Program Assistant Sec- require the small business firm or nonretary or designee.

profit organization to state in writing (b) DOE will decide, on a case-by-case that it qualifies as a small business basis, the amount of cost sharing re- firm or nonprofit organization. In exquired for a particular project.

ceptional circumstances, DOE may, as (c) Factors in addition to those speci- determined by Patent Counsel, use a fied in $600.123 or $600.224, which may patent rights clause other than the be considered when negotiating cost clause specified in paragraph (b)(1) of

« PreviousContinue »