amended (42 U.S.C. 1857 et seq. as amended by Pub. L. 91-604) and section 308 of the Federal Water Pollution Control Act, as amended (33 U.S.C. 1251 et seq. as amended by Pub. L. 92-500) relating to inspection, monitoring, entry, reports and information, and all other requirements specified in the aforementioned sections, as well as all regulations and guidelines issued thereunder after award of and applicable to the grant; and

(c) Agrees to include the criteria and requirements of this clause in every subgrant or subcontract hereunder in excess of $100,000, and to take such action as the Grants Officer may direct to enforce such criteria and requirements.

COOPERATIVE AGREEMENT SPECIAL PROVISION (OCTOBER 1983)

(a) This award is a Cooperative Agreement as it is anticipated that there will be substantial NASA involvement during performance of the effort. That is, the recipient can expect NASA collaboration or participation in the management of the project.

(b) NASA and the recipient mutually agree to the following statement of anticipated cooperative interactions which may occur during the performance of this effort. (Insert here a concise statement of the exact nature of the cooperative interactions. (See § 1260.203(b) for guidance). In addition, note that the statement must deal with ex; isting facts and not contingencies. Under no circumstances shall the statement be used as a work statement or an expanded grant title.)

§ 1260.420 Special conditions.

(a) In addition to the general provisions set forth in this Subpart, NASA grants and cooperative agreements are subject to various conditions which either are not applicable to all awards or are temporary in nature. Such conditions are not printed in NASA Form 1463A, "NASA Provisions for Research Grants and Cooperative Agreements" (Exhibit D), but are appended to specific grants, as applicable, in the format set forth in § 1260.302.

(b) The following special conditions clauses are authorized under the conditions set forth in the prescribing sections.

(c) All clauses inserted as "Special Conditions" shall be written out in full. Clauses shall not be incorporated by reference.

(d) Contemplated special conditions clauses which are not included in, or which differ in language from, the clauses referenced in paragraphs (b), (e), and (f) of this section, shall be considered as deviations and processed in accordance with § 1260.106.

(e) The following provision shall be appended to all grants and cooperative agreements as a special condition, pending its inclusion in NASA Form 1463A, NASA Provisions for Research Grants and Contracts:

INTEREST BEARING ACCOUNTS (APRIL 1987)

Advances of Federal funds shall be maintained in interest bearing accounts. Interest earned on Federal advances deposited in such accounts shall be remitted to NASA promptly, but at least quarterly, as instructed by the Financial Management Office of the NASA installation which issued the grant. Interest amounts up to $100 per year may be retained by the recipient for administrative expense.

(f)(1) The following provision shall be appended to all grants and cooperative agreements as a Special Condition.

(2) The grants officer is authorized to, and shall, upon request of an awardee institution, issue a letter agreement making the special condition immediately applicable to all current grants and cooperative agreements at that institution.

(3) Grantees are hereby offered the opportunity to substitute the final (February 1989) version of the Special Condition "Elimination of Unnecessary Administrative Burden" in all grants for which the interim (July 1988) version is in effect. The first grantee action in accordance with the final version will constitute grantee acceptance of the final version.

(4) Paragraphs (f) (1) and (2) of this section are valid only through December 31, 1989, and the procedures therein shall not be used after that time.

ELIMINATION OF UNNECESSARY ADMINISTRATIVE BURDEN (FEBRUARY 1989) The following special terms take precedence over NASA Form 1463A, Provisions for Research Grants and Cooperative Agreements and any other requirements in the Grant and Cooperative Agreement Handbook, NHB 5800.1 (14 CFR Part 1260).

(1) General

(a) Prior approvals

Cost related and administrative “prior approvals" required by OMB Circulars A-110 and A-21 are hereby waived, except for change in scope or objective and change in principal investigator. Subcontracting approvals are waived except for subcontracting or transferring substantive aspects of the research, if not provided for in the proposal. Other approvals and terms specifically required by the grant still apply, unless waived or modified elsewhere in this Special Condition. The grantee may maintain such internal prior approval systems as it considers necessary.

(2) Travel

The prior authorization requirement in NASA Form 1463A regarding domestic travel expenditures is waived. The costs of foreign travel are allowable charges to the grant provided that the travel is clearly essential to the research effort. Foreign travel to communist areas, foreign travel involving studies of foreign countries, per se, or foreign travel requiring special permits or licenses still requires prior approval by the

NASA Grants Officer, unless the travel has been described in an accepted proposal. (3) Equipment and Other Property

The prior approval requirement for acquiring property not included in the proposed budget is raised to $5,000. For approval purposes, an item of a "nontechnical nature" may be regarded as "technical property " if it is primarily used in and is essential to the actual conduct of the research.

(b) Preaward costs. Grantees may approve preaward costs of up to ninety (90) days prior to the effective date of a new award, provided the costs are necessary for the effective and economical conduct of the project and they are otherwise allowable under the terms of the grant. Any preaward expenditures are made at the grantee's risk. Approval by the grantee does not impose any obligations on NASA in the absence of appropriations, if an award is not subsequently made, or if an award is made for a lesser amount than the grantee anticipated. (c) No cost extensions. Grantees may extend the expiration date of a grant or a supplement thereto 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. A single extension, which shall not exceed twelve (12) months, may be made for this purpose, and must be made prior to the expiration date. The grantee must notify the grants officer in writing within 10 days of the extension. Absent timely notification, the prior approval requirement (Form 1463A) shall apply.

(d) Unobligated balances. Any unobligated balance of funds which remains at the end of any funding period, except the final funding period of the project, shall be carried over to the next funding period, and may be used to defray costs of any funding period of the project. If uncommitted carryover funds are likely to be substantial, the estimated amount shall be included in any continuation proposal.

(g) Effective October 1, 1988, the following provision shall be appended, as a special condition, to all grants and cooperative agreements entered into after that date (pending its inclusion in NASA Form 1463A, Provisions for Research Grants and Cooperative Agreements):

DEBARMENT AND SUSPENSION (OCT 1988)

NASA grants and cooperative agreements, except for those to foreign institutions, are subject to the provisions of 14 CFR Part 1265, Governmentwide Debarment and Suspension (Nonprocurement). The certification required by that regulation must also accompany extension proposals.

(h) The following provision shall be appended, as a special condition, to all grants and cooperative agreements (pending revisions to § 1260.409 and NASA Form 1463A, Provisions for Research Grants and Cooperative Agreements):

PATENT RIGHTS-CORRECT CITATIONS (JUNE

1989)

In the NASA Provisions for Research Grants and Cooperative Agreements (NASA Form 1463A), the correct statutory citations in the "Patent Rights-Retention by Grantee" provision are "Chapter 18 Title 35, United States Code (Pub. L. 95-517, Pub. L. 98-620)."

[51 FR 2626, Jan. 17, 1986, as amended at 52 FR 12378, Apr. 16, 1987; 53 FR 29328, Aug. 4, 1988; 53 FR 38286, Sept. 30, 1988; 54 FR 9427, Mar. 7, 1989; 54 FR 43052, Oct. 20, 1989]

within the policies of the grantee institution, is in the best position to determine the means by which the research may be conducted most effectively. The term "grantee" refers to recipients of both grants and cooperative agreements. NASA wishes to avoid any action that might diminish the responsibility of the grantee and the investigator for making sound scientific and administrative judgments. Grantees and investigators are encouraged to seek the advice and opinions of NASA on problems that may arise. Unless otherwise stated, the giving of such advice should not imply that the responsibility for final decisions has shifted to NASA. The primary concern of NASA is that granted funds be used in a manner that will make a maximum contribution to the scientific area under investigation. It is expected that grantees and investigators will also direct their efforts to this end. Therefore, the grantee may change the methods and procedures employed in performing the research as scientific judgment dictates without the need to obtain NASA approval. However, it

§ 1260.503 Instrument period.

(a) Normally, NASA grants and cooperative agreements are made or extended for periods of 1 to 3 years at a time. Longer periods may be appropriate in some instances, provided step (§ 1260.305(c)) continuing (§ 1260.305(b)) or full funding is used. in which Any other arrangements there is not at least partial funding throughout the period of performance are prohibited. Short periods should be avoided as noted in § 1260.305(d)(1). As stated in the instrument, the period is approximate; the beginning and ending dates are not specified with precision. The instrument period begins approximately on the date thereof and extends for approximately the length of time specified. However, when progress of research under the grant or cooperative agreement is delayed and circumstances make it necessary to request an extension of the period without additional funds, the policy of NASA is to permit extensions in time, upon written request.

(b) When it appears that the research contemplated will be completed within 30 days after the approximate ending date, a request for extension of the instrument period will be unnecessary. If it appears, however, that the additional time required for completion of the research will exceed 30 days, a request for extension must be made by the grantee. Any extension requiring additional funding must be

supported by an unsolicited proposal and submitted at least 4 months in advance of the expiration date of the grant or cooperative agreement.

§ 1260.504 Adherence to original budget estimates.

(a) NASA believes that the principal investigator, operating within the established policies of the grantee, is the individual best qualified to determine the manner in which the grant or cooperative agreement funds may be used most effectively to accomplish the proposed research. Although NASA assumes no responsibility for overspent budgets, the investigator and the grantee institution are free to spend grant or cooperative agreements funds for the proposed research without strict adherence to individual allocations within total budgets, except as provided in §§ 1260.404 and 1260.408. Under no circumstances, however, may grant or cooperative agreements funds be used to acquire land or any interest therein, to acquire or construct facilities or to procure passenger carrying vehicles. Purchase of furniture, furnishings, office equipment, or other items of a nontechnical nature require the prior approval of the NASA grants officer as provided in § 1260.408.

(b) Controls and limitations on expenditures for specific items under NASA grants or cooperative agreements shall be in accordance with the provisions of § 1260.405.

(c) If any of the actions requiring approval in accordance with § 1260.405 of this part have received specific NASA approval during the proposal and award process, a further approval shall not be required. Whenever practical, the approvals shall be given at the time of the project award or extension to avoid any delays during the course of the project.

(d) Approval requirements relating to expenditures under grants and cooperative agreements, in addition to those provided for in § 1260.405, shall not be imposed except in accordance with the deviation procedure of § 1260.106 or as specifically required by statute.

§ 1260.505 Use, disposition, and vesting of title to research equipment.

(a) Background. (1) Support of research in educational institutions provides substantial long-term and indirect benefits, as well as the immediate research results. In addition to the obvious academic advantages of such support, individual and institutional capabilities to perform relevant research are enhanced, and the number of scientists and graduates with research interests in areas of concern to the nation generally, and to NASA in particular, is increased. Adequate modern research equipment in universities serves to maximize these direct and supplemental benefits.

(2) NASA funds research in academic areas in which the university has, and expects to maintain, a capacity for research and education. The research equipment that it acquires has, therefore, an especially high potential for continuing effective use at the acquiring institution. The legitimate interest of both NASA and the university, as well as the long-term national interest, require that any decision by the agency to take title for the purpose of transferring grantee equipment to another location reflect careful consideration of all relevant factors. This should include comparison of the expected beneficial use at the present location with that expected at the new location possible deleterious effects of removal, and the administrative and relocation costs involved.

(b) Policy. The following policies will be reflected, as appropriate, in the negotiation and the documentation of NASA research grants, cooperative agreements and supplements thereto and in related correspondence.

(1) Title to equipment purchased with grant and cooperative agreement funds vests in the grantee institution, and the equipment does not automatically follow the principal investigator when he or she leaves the institution. Title to Government-furnished equipment remains with the Government. In accordance with Pub. L. 94-519, NASA policy is not to furnish acquired excess property to grantees as NASA would in such event have to pay 25% of the original acquisition cost of the

311-046 0-92--11

equipment to the Treasury. In the event application of this policy proves to be extremely disadvantageous to NASA in a specific situation, a deviation may be requested (§ 1260.106). When Government-furnished equipment is reported excess by a grantee, the grants officer will report the equipment to the installation property disposal officer for further NASA use. If NASA has no further need for the property, it shall be declared excess and reported to the General Services Administration. Appropriate disposition instructions will be issued to the recipient after completion of the Federal-wide review.

(2) NASA may require transfer to it of title to individual items on coherent systems (paragraph (b)(8) of this section) of major grantee acquired equipment purchased at a cost of more than $1,000 subject to the following conditons:

(i) The equipment shall be appropriately identified to the recipient in writing.

(ii) NASA shall issue disposition instruction within 120 calendar days after the end of the Federal support of the project for which it was acquired. If NASA fails to issue disposition instructions within the 120 calendar day period, the grantee shall apply the standards of subparagraphs 6b and 6c, Attachment N to OMB Circular A-110, as appropriate.

(iii) When NASA exercises its right to take title, the equipment shall be subject to the provisions for federallyowned nonexpendable property discussed in § 1260.408, paragraph (f) of the clause.

(iv) When title is transferred to the Federal Government, the provisions of subparagraph 6c(2)(b), Attachment N to OMB Circular A-110, shall be followed.

(3) Title to minor equipment items (costing individually $1,000 or less) is not subject to transfer to the agency, except under the conditions of paragraph (b)(8) of this section.

(4) NASA procedures does not require a grantee to transfer title to grant or cooperative agreement-acquired equipment directly to another actual or potential grantee or contractor. Such transfers are accomplished

by the Government's taking title and issuing the equipment to the second institution as Government-furnished equipment.

(5) NASA normally will not recover equipment that a grantee desires to retain for reissuance to another institution or to a NASA installation, unless it is specifically required for NASA work at the new location. Exceptions will be made only in highly unusual situations where title transfer is clearly in the best interest of the Government.

(6) Cost sharing by NASA and a grantee in the acquisition of individual items or coherent systems (paragraph (b)(8) of this section) of equipment, in response to a statutory requirement for cost-sharing or in any way that could result in joint ownership, shall normally be avoided.

(7) When cost sharing by NASA and a grantee in the acquisition of major equipment items or coherent systems cannot be avoided, and the NASA contribution will exceed $1,000, agreement regarding NASA retention of its option to take title and the conditions under which the option (if retained) will be exercised, shall be reached and documented prior to purchase. NASA shall have no option to take title if its contribution is $1,000 or less.

(8) 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 grantee-owned components (for cost sharing or other purposes), paragraph (b)(7) of this section applies. The requirement that NASA seek agreement to retain its option to take title shall further apply where it is expected that one or more grant-acquired components costing $1,000 or less will be fabricated into a single coherent system costing in excess of $1,000. 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.