PROPOSED RULES

(b) If the amount involved exceeds $100, he shall be fined not more than $10,000 or imprisoned for not more than two years, or both.

§ 401.51 Federal contracting laws and regulations.

(a) Contracts with a tribal organization under this Part shall comply with the Bureau procurement regulations contained in 41 CFR 14H-70, except as provided in paragraph (b) of this section.

(b) The Commissioner may waive any Federal contracting laws, executive orders, regulations, rules and other administrative requirements which he determines are not appropriate for the purposes of the contract involved or are inconsistent with the Act. Regulations and clauses which are deemed inconsistent or inappropriate for inclusion in contracts entered into under the Act may be waived, modified or supplemented in 41 CFR 14H-70 of the Bureau's procurement regulations. Requests for waivers may be made as follows:

(1) Tribal organizations may submit written requests for a waiver or modification of contract regulations on specific contracts to the Commissioner through, or jointly with, the contracting officer. The contracting officer will promptly transmit the request and his recommendations on it to the Commissioner, who shall issue a ruling within 15 days after receipt of the request.

(2) When the waiver or modification requested is determined by the Commissioner to apply in general, it will be made a part of 41 CFR 14H-70. When the Commissioner determines that the request for modification or waiver should not apply in general but is warranted for the contract to which the request pertains, the tribal organization and the contracting officer will be so advised in writing.

(3) If the request for waiver or modification is determined by the Commissioner not to be appropriate, the tribal organization will be notified in writing.

(c) Contracts will be negotiated on a sole source basis without advertising when the contracts are requested by a tribal governing body in accordance with $ 401.18.

(d) A tribal organization is not required to furnish performance and payment bonds before carrying out 8 contract under this Part for the construction of public buildings or works as required by the Miller Act of August 24, 1935 (49 Stat. 793), as amended. However, the tribal organization shall require each of its subcontractors to furnish both performance and payment bonds as follows:

(1) A performance bond with a surety or sureties satisfactory to the approving official, and in an amount he deems adequate, for the protection of the United States.

(2) A payment bond with a surety or sureties satisfactory to the approving official for the protection of all persons

cumstances:

(1) The services provided under the contract can reasonably be expected to be continuing in nature and, as a result, a longer contract term would be advantageous.

(2) The Indian tribe(s) to be served by the contract request that the term be more than one year. The tribal organization will indicate the desired term of the contract on the application form. When the Indian tribe(s) request that the contract be approved as provided in § 401.18, that will also be deemed a request for the longer term indicated in the application. (b) Contracts made for a term of more than one year may be renegotiated annually to reflect factors including, but not limited to, cost increases beyond the control of the tribal contractor. Proposed changes in the services provided under the contract which reflect changes in program emphasis may be considered during the annual renegotiation if the changes fall within the general scope of the contract. Such changes may be initiated by either the tribal contractor or the Bureau but must be agreed to by

both.

40991

not be less than the Bureau would have provided if the Bureau operated the program or part during the contract, and shall include funds to plan, administer, control and evaluate the program or part. (b) Direct costs under contracts for

operation of programs or parts operated by the Bureau before contract operations shall be not less than the funds that are programmed and available for the program or part at the time of the contract application, except as limited in paragraph (g) of this section.

(c) Direct costs under contracts for the operation of programs or parts authorized to be operated by the Bureau, but not operated by the Bureau, for the benefit of the Indians to be served under the contract shall be determined by mutual agreement based on a comparison of similar programs operated by the applicant, the requesting tribe, other tribes, other governmental, public or private organizations.

(d) Direct costs for programs or parts level shall be based on the funds availto be contracted at the Agency Office able at that level.

(e) Direct costs for programs or parts shall be based on funds available at that to be contracted at the Area Office level level.

(f) Allowability of costs under contracts shall be determined under Appendix A of Part 406 of this chapter.

(g) Funds provided under contract for direct or indirect costs shall not cause a reduction in funds provided for other programs or parts not under contract, except as agreed to by the affected tribe(s) and within the existing authorities of the Bureau. § 401.55

Savings under contract.

(a) If it becomes apparent during the contract term that the estimated amount of a contract under this Part will be in excess of actual expenditures under the contract, the identified savings shall be used to provide additional services or benefits within the scope and limitations of the contract.

(b) When both the triba! organization and the Bureau agree that it is not practicable to spend the savings during the contract term and the contract funds were appropriated pursuant to the Act of November 2, 1921 (42 Stat. 208), the savings may be carried over into the succeeding fiscal year contract, except as otherwise specifically provided in appropriation acts. Savings carried over into a succeeding fiscal year shall be added to the contract amount for that fiscal year. The savings shall not reduce the amount that would have been made available if there had been no savings.

(c) If there are savings under a contract that is retroceded as provided in $401.71, the savings shall be used by the Bureau to operate the program or part of a program covered by the retroceded contract. The savings may be carried over and used for such operations during the succeeding fiscal year, except as otherwise specifically provided in appropriation acts.

(a) Any contract made under this Part may be revised or amended as deemed necessary to carry out the purposes of the program, project or function being contracted.

(b) The contractor shall submit proposed revisions and amendments to the Bureau as follows:

(1) To the contracting officer in the Area Office when the tribe(s) or Indians served by the contract are within the jurisdiction of that Area Office.

(2) To the contracting officer in the Bureau's headquarters in Washington, D.C. when the tribe(s) or Indians served are within the jurisdiction of more than one Area Office.

(c) The contractor shall send copies of all requests for revisions or amendments to the designated representative of the tribal governing body at the same time as they are sent to the appropriate contracting officer.

401.62 Review and action by contracting officer.

Upon receipt of the proposed revision or amendment from the contractor, the contracting officer shall:

(a) Within five days, notif, in writing the contractor and the tribal governing body (s) if different from the contractor, of receipt of the proposed revision or amendment and that the tribal governing body (s) shall have 15 days from receipt of the notice to send any written objections to the contracting officer. If the tribal governing body (s) object to the proposed revision or amendment, the contracting officer shall so notify the contractor and the proceedings under this subpart shall cease.

(b) Within 30 days after the tribal governing body (s) received the notice, if no objections are received, review the proposed revision or amendment and the criteria for declination given in § 401.15. At the completion of the review, the following action will be taken as appropriate:

(1) If there are no declination issues, the contracting officer will notify the contractor and the tribal governing body(s) in writing of this fact and offer to revise or amend the contract within 30 days of issuing the notice or at their convenience.

(2) If it is felt that there are declination issues that must be resolved, the contracting officer will notify the contractor and the tribal governing body (s) of this fact and the extent of the issues, recommend a course of action to resolve the issues and offer technical assistance to resolve the issues within 30 days after Issuing the notice.

(1) If the contractor and the tribal governing body (s) accept the technical assistance, it shall continue in accordance with their request. At such time as the issues are thus resolved the contracting officer will so advise the contractor and the tribal governing body (s) and

PROPOSED RULES

recom

(a) If the contracting officer, the contractor, and the tribal governing body fail to resolve the declination issues, the contracting officer shall prepare a written recommendation to decline.

(b) This recommendation shall contain, at a minimum, the following information:

(1) Identification of specific objections, categorized under one or more of the declination factors set forth in § 401.15.

(2) Specific recommendations on actions required by the contractor or tribe(s) to overcome objections.

(3) Description of the nature, scope, and source of the technical assistance which has been provided or offered by the Bureau to assist the contractor and the tribal governing body (s) to overcome the declination objections.

(4) Copies of all correspondence between the contracting officer and contractor and tribal governing body (s) and all responses thereto, including any reports of meetings between the parties relative to the proposed revision or amendment.

(5) Copy of original proposed revision or amendment.

(c) The contracting officer shall make written recommendations to:

(1) The Area Director when the tribe(s) or Indians served by the contract are within the jurisdiction of that Area Office.

(2) The Commissioner when the tribes or Indians served are within the jurisdiction of more than one Area Office.

(b) Within 15 days after receiving the contracting officer's recommendations. the Area Director or Commissioner shall review the application, the contracting officer's recommendations, and the declination criteria in 401.15.

(c) Within 15 days after receiving the contracting officer's recommendations, the Area Director or Commissioner shall notify the contractor, the appropriate tribal governing body (s), and the contracting office of one of the following:

(1) When the Area Director or Commissioner does not accept the contracting officer's recommendations to decline, notice shall be given that the recommendations are not accepted and that the Bureau shall revise or amend the contract as requested by the contractor and the tribal governing body (s).

(2) When the Area Director or Commissioner accepts the contracting offcer's recommendations and believes the Bureau should not revise or amend the contract as requested, notice shall be given that the Area Director or Commissioner plans to issue a declination notice and that the contractor and the tribal governing body (s) have the following rights:

(1) The contractor and the tribal governing body(s) may submit a written rebuttal to the Area Director's or Commissioner's plan to issue a declination notice.

(1) The contractor and the tribal governing body (s) may request to appear before the Area Director or Commissioner or their representatives under paragraph (d) of this section.

(ii) The contractor and the tribal governing body (s) must exercise these rights within 30 days after receiving the notice required in paragraph (c) (2) of this section.

(d) If the contractor and the tribal governing body (s) request to appear before the Area Director or Commissioner under paragraph (c) (2) (11) of this section, the Area Director or Commissioner shall:

(1) Select a site for a meeting between the contractor, the tribal governing body(s), and the Area Director or Commissioner. The Area Director or Commissioner may designate a representative from his office to attend the meeting.

(2) Authorize payment of transportation costs and per diem under terms he may make to allow adequate representation of the contractor and the appropriate tribe(s), if the meeting is more than 50 miles from the office of the contractor.

(3) Notify the contractor and the appropriate tribe(s) of the time, location and other terms of the meeting.

(4) Hold the meeting within 30 days of the request, unless the contractor and the tribal governing body (s) request a

§ 401.64 Review and action by Area Di- later day.

rector or Commissioner.

(a) Within five days after receiving a proposed revision or amendment and the contracting officer's recommendations to decline, the Area Director or Commissioner as given in 401.61 shall notify the contractor and the tribal governing body (s) in writing of the receipt of the proposed revision or amendment.

(e) (1) The Area Director or Commissioner shall issue a declination notice as follows:

(1) Within 15 days after receiving the contractor's and tribal governing body (s)' rebuttal submitted under paragraph (c) (2) (1) of this section or after the conclusion of the meeting under paragraph (d) of this section.

64-882 O 763

(1) Within 45 days after issuing the notice under paragraph (c) (2) of this section when the contractor and tribal governing body (s) have not used the rights under paragraph (c) (2) of this section.

(2) The declination notice shall be in writing and shall contain:

(1) Identification of specific objections, categorized under one or more of the declination criteria set forth in 401.15.

(i) Specific recommendations on actions required by the contractor or tribe to overcome the objections.

(111) Description of the nature, scope, and source of the technical assistance which has been provided or offered by the Bureau to assist the contractor and the tribal governing body (s) to overcome declination objections.

(iv) Copies of all correspondence between the Bureau, the contractor and/ or tribe, and all responses thereto, including any reports or meetings between the parties relative to the application.

(v) Copy of original proposed revision or amendment.

(vi) The appeal of rights of the contractor and the tribal governing body (s) under 401.82 or 401.83 as given in § 401.65.

401.65 Appeal of Area Director's or

Commissioner's decision to decline. (a) The contractor and/or the tribal governing body (s) shall have 60 days to appeal the decision by the Area Director or Commissioner to decline to amend the

§ 401.66 Revisions or amendments proposed by Bureau.

(a) Where the Bureau proposes a revision or amendment to a specific contract, it shall notify the contractor and the tribal governing body (s) in writing of the following:

(1) The specific revision or amendment which is proposed.

(2) The rationale for the proposal. (b) All amendments proposed by the Bureau must be agreed to, in writing, by the contractor, the tribal governing body(s) and the Bureau. If such agreement cannot be obtained, the proposed amendment shall not be adopted by the Bureau.

Subpart F-Retrocession and
Reassumption

PROPOSED RULES

the Bureau for any reason they deem appropriate. Retrocession specifically recognizes the Federal Government's unique and continuing relationship with and responsibility to Indian people.

(b) When a tribal organization experiences specific problems with the operation of a contract and is considering the possibility of retrocession, it may request the Bureau to assist it to avoid retrocession. In the event of such a request, the Bureau will:

(1) Meet with appropriate officials of the tribal organization and the tribe, where the tribal governing body is not the contractor, to develop a plan to avoid retrocession.

(2) Provide, to the extent possible, special technical assistance to assist the tribal organization to satisfactorily operate the program and enable it to avoid

retrocession.

§ 401.72 Full retrocession procedures.

(a) Whenever an Indian tribe requests retrocession of a contract, whether operated directly by the tribal governing body or a tribal organization, or in the case of a contract with a tribal organization which is performing services benefiting more than one Indian tribe and all of the benefiting tribes

request retrocession, retrocession shall be effective upon a date specified by the Commissioner or Area Director as appropriate but no later than 120 days after the date of the request from the tribe(s), except when the tribe(s) and the Commissioner mutually agree on a later date. When the contract is with a tribal organization other than the tribal governing body and the tribal resolution required under $401.18 (c) (2) does not vest in the tribal governing body the sole right to request retrocession, the tribal governing body shall consult with the tribal organization and, if so requested, offer it an opportunity to be heard in accordance with

tribal procedures before requesting retrocession of the contract.

(b) Within 15 days after receipt by the Commissioner or Area Director of a request for retrocession, representatives of the tribe (s), the tribal organization when appropriate, and the Commissioner or Area Director as appropriate shall meet and take the following actions:

(1) Mutually agree on a plan for orderly transfer of responsibilities.

(2) Mutually agree on a plan for inventorying and accounting for materials and supplies on hand, equipment, facilities and real property.

(3) Establish an accounting of funds, current and anticipated obligations, and costs of operation until the retrocession date.

(4) Identify all records relating to the contract and to the contracted function. (c) On the date of retrocession, the tribal contractor will deliver to the Bureau all property that was acquired with contract funds and all materials, supplies and records of whatever nature which have been identified as necessary for the continuation of the program, project or function.

40993

(d) Within 60 days after retrocession, the tribe(s) and the Bureau will jointly develop a report to the Commissioner outlining the reasons why retrocession was requested.

(e) Retrocession of a contract by an Indian tribe shall be without prejudice to:

(1) Any other contract to which it is & party.

(2) Any other contracts it may request.

(3) Any future request to contract for the programs or services covered by the retroceded contract, insofar as the conditions which led to retrocession are no longer a factor and the tribal organization is the same one that held the retroceded contract.

$401.73 Tribal assumption of retro

ceded contracts.

Wherever an Indian tribe chooses to retrocede a contract operated by a tribal organization other than the tribal governing body, the tribal governing body pursuant to § 401.18 may request to contract for the program. In such a case, the tribal governing body shall submit a contract application pursuant to § 401.14. $401.74 Reassumption.

(a) A contract made under this Part may be terminated, and control or operation of the program or function assumed by the Commissioner or Area Director as appropriate, in whole or in part, when the Commissioner or Area Director determines that the tribal organization's performance under the contract involves:

(1) The violation of the rights, or endangerment of the health, safety or welfare of any persons, or

(2) Gross negligence or mismanagement in the handling or misuse of funds provided under the contract.

(b) If the Commissioner or Area Director as appropriate finds there is an immediate threat to safety, he may, upon written notice to the tribal organization, immediately terminate the contract and resume control or operation of the program. In such an event, the Commissioner or Area Director will schedule a hearing within 10 days at which time he shall state the corrective action needed to be taken by the tribal organization and the time in which the corrective action must occur before it can continue operations under the contract. The hearing shall be conducted as provided in § 401.81.

(c) If there is no immediate threat to safety, the Commissioner or Area Director as appropriate shall provide written notice to the tribal organization of intent to terminate the contract. The notice shall give the reasons for termination, the corrective measures necessary, and a reasonable time period in which corrective action must be taken. The Commissioner or Area Director shall also schedule a hearing in accordance with § 401.81.

(d) Upon failure by the tribal organization to take the necessary corrective measures in the time given, the Commissioner or Area Director as appropriate shall terminate the contract and re

(a) Any contract with a tribal organization entered into under this Part may be cancelled for cause when the tribal organization fails to perform within the terms and conditions of the contract.

(b) (1) Before cancellation of the contract, the contracting officer shall advise the tribal organization in writing of the following:

(1) The reasons why the contracting officer is considering cancelling the contract.

(1) That the tribal organization will be given an opportunity to bring its work up to an acceptable level of performance within a specified period of time.

(1) That the Bureau will furnish technical advice and assistance to help overcome the deficiencies in the contract performance, when requested.

(2) When the contract is with other than the governing body of the Indian tribe, the tribe(s) receiving services or benefits under the contract will be notifled when a cancellation for cause is contemplated. The notice shall include the reasons why a cancellation for cause is contemplated and any supporting documents used by the contracting officer to reach his conclusions. The notice shall also offer to hold a meeting with the tribe(s) to discuss the issues and explore any options available to the tribe(s). The contracting officer and the tribe(s) will mutually consider the relevant issues before the contracting officer proceeds with any cancellation action.

(c) If the tribal organization does not overcome the deficiencies in its contract performance within 45 days of its receipt of the notice of deficiencies and the Indian tribe(s) affected do not advise the contracting officer within that time that they consider the services provided under the contract to be satisfactory, the contracting officer shall cancel the contract for cause. The contracting officer will notify the tribal organization, in writing, of the cancellation. The notice shall give the reasons for the cancellation and the right of the tribal organization to appeal under 401.84.

(d) When a contract is cancelled for cause, the Bureau will either perform the work with its own forces or by another contract, as appropriate. When the Bureau does not have sufficient forces on hand to immediately perform the work, it may, for temporary periods of the shortest duration possible, contract

PROPOSED RULES

with a contractor that is not a tribal organization or who is not approved by the governing body of the tribe(s). However, in such cases, the advice of the tribe(s) will be obtained to determine how they desire the services to be rendered.

(e) Excess costs resulting from a cancellation that are required to operate the program will be provided by the Bureau to the extent that funds are available. However, if current funds are not suffplanned level, the program may be recient to maintain the program at its

duced until funds become available.

for cause may be appealed in accordance (f) The decision to cancel a contract with 401.84.

a contract cancelled for cause must dem(g) Any tribal organization that has cancellation have been cured before it onstrate that the causes which led to the will be considered for another contract. In addition, there must be a new resolution and a new request from the Indian tribe(s) that will receive services or benefits under the contract.

$401.76 Bureau operation of retro

ceded, reassumed or cancelled for

cause contracts.

under contract with a tribal organization under this Part, the Buy Indian Act or any other authority, the positions and ceilings shall be reserved. The posttions and ceiling reserved shall be available only for the same program or parts of a program at the same locations if the Bureau must operate the program or parts of a program because a tribe has retroceded the contract or because the Bureau has reassumed or cancelled the contract for cause.

(b) Upon the effective date of these regulations, the Bureau shall establish a position and ceiling reserve for all contracts for the operation of all or parts of Bureau programs in effect as of the date of enactment of the Act, January 4, 1975, or entered into thereafter.

§ 401.81 Hearings.
Subpart G-Hearings and Appeals

Hearings required by § 401.74 shall be conducted as follows:

(a) The tribal organization and the Indian tribe(s) shall be notified, in writing, of the hearing. The notice shall give the date, time, place, and purpose of the hearing.

(b) A writter record of the hearing shall be made. The record shall include written statements submitted at the hearing or within five days following the hearing.

(c) The hearing will be conducted on as informal a basis as possible.

§ 401.82 Appeals from decision or netion by Area Director.

A tribal organization or tribal governing body may appeal any decision made or action taken by an Area Director under this Part. Such appeal shall be made to the Commissioner as provided in Part 2 of this chapter.

§ 401.83 Appeals from decision or action by Commissioner.

(a) A tribal organization or tribal governing body may appeal the Commissioner's decision to decline to contract or to decline to amend a contract under

401.25 or 401.64 to the Board of Indian Appeals, Department of the Interior, as provided in Subpart D of 43 CFR Part 4.

(b) A tribal organization or tribal governing body may appeal any other declsion made, action taken, or action not taken within the time limits required by this Part, by the Commissioner if authorized and as provided in Part 2 of this chapter. A decision by the Commissioner concerning funding levels for a program or part of a program to be contracted is considered to be an exercise of the Commissioner's discretionary authority and, therefore, is final for the Secretary.

§ 401.84

Appeals from Bureau decision to cancel contract for cause.

A tribal organization may appeal the Bureau's decision to cancel for cause any contract made under this Part. Such appeal shall be made to the Director of the Office of Hearings and Appeals as provided in Subpart G of 43 CFR Part 4.

402.3 402.4

402.5

402.11

402.12

402.13

402.14

402.15

402.16

402.17 402.18 402.19

402.20

402.21 402.22 402.23 402.24 402.25 402.26 402.27

Effect on existing Indian rights. Revision or amendment of regulations.

Statement of policy.

Subpart B-Application Process
Eligibility requirements.
Purpose of grants.

Obtaining application forms.
Content of application.

Assistance in completing form.
Tribal request.

Grant approval limitations.

Submitting application to Agency.
Agency Office review and recommen-
dation.

Deadline for Agency Office action.
Area Office review and action.

Deadline for Area Office action.
Central Office review and decision.
Deadline for Central Office action.
Grant execution and administration.
Subgrants and subcontracts.

Acceptance of tribal plans for the operation of Bureau programs. Subpart C-General Grant Requirements Applicability.

402.31

402.32

402.33

402.34

402.35

Reports and availability of information to Indians.

Matching share.

Performing personal services. Fair and uniform services. 402.36 Penalties.

Subpart D-Grant Revision, Cancellation, or
Assumption

402.41 Revisions or amendments of grants. 402.42 Assumption.

AUTHORITY: Sec. 104, Pub. L. 93-638, 88 Stat. 2203, unless otherwise noted.

Subpart A-General Provisions

§ 402.1 Purpose and scope.

The purpose of the regulations in this Part is to provide the application and approval procedures for the award by the Bureau of grants under section 104(a) of Title I of the Indian Self-Determination and Education Assistance Act (Public Law 93-638, 88 Stat. 2203). Title I is known as the Indian Self-Determination Act.

PROPOSED RULES

(d) "Bureau" means the Bureau of Indian Affairs.

(e) "Commissioner" means the Commissioner of Indian Affairs.

(f) "Days" means calendar days. (g) "Economic enterprise" means any commercial, industrial, agricultural or business activity that is at least 51 per cent Indian owned, established or organized for the purpose of profit.

(h) "Grant" means a written agreement between the Bureau and a tribal governing body where the Bureau provides funds to carry out specified programs, services or activities and where the administrative and programmatic provisions are specified.

(1) "Grantee" means the tribal governing body which is responsible for administration of the grant.

(1) "Indian" means a person who is a member of an Indian tribe.

(k) "Indian tribe" means any Indian Tribe, Band, Nation, Rancheria, Pueblo, Colony or Community, including any Alaska Native village or regional or village corporation as defined in or established pursuant to the Alaska Native Claims Settlement Act (85 Stat. 688) which is recognized as eligible by the Secretary for the special programs and services provided by the Secretary to Indians because of their status as Indians.

(1) "Resolution" means the formal manner in which the tribal government expresses its legislative will pursuant to its organic documents. In the absence of formal organization written expression adopted pursuant to current practices will be aceptable.

(m) "Secretary" means the Secretary of the Interior.

(n) "Superintendent" means the official in charge of a Bureau of Indian Affairs Agency Office.

(o) "Subcontracts" means contracts undertaking some of the obligations of primary grants.

(p), "Subgrants" means secondary grants undertaking some of the obligations of primary grants.

(q) "Trust resources" means land, water, minerals, funds or property, asset, or claim, and any right or interest in any of the foregoing, which is held by the United States in trust for any Indian tribe or Indian individual subject to a restriction on alienation imposed by the United States.

(r) "Trust responsibility" means any right or power vested by law in the United States, or any official or employee thereof, to approve or otherwise regulate the alienation, disposition, encumbrance, management, development, or use of trust resources.

40995

§ 402.4 Revision or amendment of reg

ulations.

Before making any substantive revisions or amendments to the regulations in this part, the Secretary shall take the following actions:

(a) Consult with Indian tribes and national and regional Indian organizations to the extent practicable about the need for revision or amendment and consider their views in preparing the proposed revision or amendment.

(b) Present the proposed revision or amendment to the Committees on Interior and Insular Affairs of the United States Senate and House of Representatives.

(c) Publish any proposed revisions or amendments in the FEDERAL REGISTER as proposed rulemaking to provide adequate notice to, and receive comments from all interested parties.

(d) After consideration of all comnents received, publish the regulations in the FEDERAL REGISTER in final form not less than 30 days before the date they are made effective.

§ 402.5 Statement of policy.

(a)

The Indian Self-Determination and Education Assistance Act (Pub. L. 93-638) is intended to facilitate increased self-determination for American Indians by providing a means through which they may plan, conduct and administer programs and services to Indian people. These programs and services are essentially those authorized by the Act of April 16, 1934 (JohnsonO'Malley Act); the Act of November 2. 1921 Snyder Act) and other subsequent Acts.

(b) A most important aid available to assist Indians in achieving this objective of increased self-determmation is the grant authority provided in section 104 of the Act. This grant authority will assist Indian tribes in improving their governing capabilities, increase their ability to effectively administer programs under contract, and enable them to provide direction to the Federal programs intended to serve Indian people.

(C) Under this grant authority the Bureau of Indian Affairs will administer a program of Indian self-determination grants which shall be subject to Parts 402 and 406 of this chapter. In the administration of this grant program, it shall be the Bureau's policy that approval of applications for these grants shall include a determination that there is a direct and reasonable relationship between the applicant's proposal and the provisions of section 104a of the Act and of $402.12.

shall be the responsibility of the appli(d) In accordance with this policy. it cant to establish that such a grant will improve the tribe's governing capabilities, enhance the tribe's ability to administer Federal programs under contract, or enable the tribe to provide direction to Bureau programs and to other Federal programs serving it.

(e) Emphasis on planning and training in relation to the purposes of a grant