(1) Government furnished equipment. Equipment in the possession of, or acquired directly by, the Government and subsequently delivered or otherwise made available to a grantee.

(2) Acquired equipment. Equipment purchased or fabricated with grant or cooperative agreement funds by a recipient, for the performance of research under its grant or cooperative agreement.

(f) Grants officer. A contracting officer who has been delegated authority to award and administer grants and cooperative agreements.

(g) Grant specialist. Any employee of NASA who is assigned the responsibility of negotiating with potential grantees the terms and conditions of specific grants and cooperative agreements, and the administration of such grants or cooperative agreements.

(h) NASA. The National Aeronautics and Space Administration.

(i) Subcontract. A written agreement between a grantee and a third party for the furnishing of services or supplies necessary to carry out the research under a grant or cooperative agreement.

(j) Support. Funding of a research project meeting NASA mission objectives.

(k) Technical officer. The official of the cognizant NASA program office who is responsible for monitoring the technical aspects of the work under a grant or cooperative agreement.

Subpart 2-Basic Policies

§ 1260.200 Authority.

Under the Federal Grant and Cooperative Agreement Act of 1977, Pub. L. 95-224 (41 U.S.C. 501 et. seq.), NASA is authorized to award grants and cooperative agreements. Pub. L. 95-224 includes (as Section 7(b)) the substance of the repealed "Grants Act" (42 U.S.C. 1891, 1892) pertaining to the vesting of title to equipment purchased with Federal funds in a nonprofit organization. It expands this authority to other tangible personal property and applies to cooperative agreements and contracts as well as grants.

§ 1260.201 Policy.

(a) NASA policy is to use the grant instrument to sponsor required basic research at nonprofit institutions or organizations when it is desired (1) to accomplish a public purpose of support or stimulation in the area of basic research, (2) when no substantial NASA involvement in the technical performance is anticipated, (3) to provide latitude to investigators that will encourage maximum creativity, and (4) to have the minimum administration consistent with the public interest.

(b) NASA policy is to use the cooperative agreement for the same purpose as grants, except that substantial Federal involvement in significant aspects of the effort are necessary for its accomplishment.

(c) In addition, it is NASA policy to provide appropriate continuity of support in research sponsored under grants.

§ 1260.202 Proposals.

(a) General. An activity leading to a grant or cooperative agreement must be supported by a valid proposal from the prospective recipient organization. Proposals are not categorized as

"grant proposal" or "contract proposal." In many cases the proposals received will be unsolicited. However, instrument selection under the Federal Grant and Cooperative Agreement Act, Pub. L. 95-224, is independent of proposal type; therefore, some grants and cooperative agreements will be based on solicitations. This Subpart 2 provides information for the grants officer in processing actions based on either type of proposal.

(b) Unsolicited proposals-(1) References. 41 CFR Ch. 18, 4.9 contains basic agency guidance on unsolicited proposals applicable to all classes of performers. NASA Management Instruction 8330.1, "Unsolicited Proposals From Universities," provides additional guidance for educational institutions only. Proposal submission information for educational institutions is covered in "The NASA-University Program: A Guide to Policies and Procedures," which should be provided to

academic researchers in response to requests.

(2) Policy. It is NASA policy to foster and encourage the submission of unsolicited proposals and, in particular, to develop policies and procedures which not only encourage their submission, but which avoid, to the extent possible, those factors which tend to discourage the generation and acceptance of innovative ideas by the unsolicited proposal mechanism (see 41 CFR Ch. 18, 4.903).

(3) An unsolicited proposal, by definition, is a written offer to perform a proposed task or effort, initiated and submitted to NASA by an institution without a solicitation by NASA. It is important to note that contact with agency technical personnel prior to proposal submission is permissible and is encouraged to determine if preparation of a formal submission is warranted. Such discussions, confined to the limited objectives of conveying to the potential offeror an understanding of the agency mission and needs relative to the type of effort contemplated, do not jeopardize the unsolicited status of any subsequently submitted proposal. (See 41 CFR, Ch. 18, 4.904 and 4.905.)

(4) Proposal validity. The validity of a proposal received with a procurement package should be verified. In particular, it must have been approved by a responsible official or authorized representative of the organization submitting the proposal, or a person authorized to contractually obligate the organization. (See 41 CFR, Ch. 18, 4.909.) Incomplete or sketchy "informal" or "preliminary" proposals or technical correspondence, as defined by 41 CFR, Ch. 18, 4.904 and 4.908(d), do not qualify as unsolicited proposals.

(5) If any such invalid proposals are received for procurement action, the grants officer should give the institution an opportunity to provide the missing information. (See 41 CFR, Ch. 18, 4.909.) In the event excessive delay or possible cancellation of the procurement is contemplated, the procurement request initiator should be notified.

(6) Proposals from other agencies. NASA will not accept for formal evaluation unsolicited proposals initially

submitted to another agency or the Jet Propulsion Laboratory, Pasadena, CA without the express consent of the offeror. (See 41 CFR Ch. 18, 4.912(a).) In the event such a proposal is reIceived as the basis for a procurement action and the required consent is lacking, the grants officer should contact the institution to determine if conversion to a formal submission to NASA is desired. The institution may at that time submit any desired revisions or other material necessary. The procurement initiator should be notified of any substantive changes.

(7) Use of data. Some proposals may have a notice on the cover intended to maintain trade secret rights. The notice set forth in 41 CFR, Ch. 18, 1.304-2 is:

Data on pages

of this proposal constitute a trade secret. It is furnished to the Government in confidence with the understanding that it will not, without permission of the offeror, be used or disclosed other than for evaluation purposes: Provided, however, In the event a contract is awarded on this proposal, the Government may obtain in the contract additional rights to use and disclose this data.

If the grants officer receives an unsolicited proposal containing a notice and the terms are more restrictive than those provided in the notice above, the grants officer shall inquire whether the offeror is willing to accept the conditions of the notice set forth in 41 CFR, Ch. 18, 1.304-2. Should the offeror not agree, local counsel should be consulted concernng the legal effect of the more restrictive conditions imposed by the offeror. (See 41 CFR, Ch. 18, 4.913.) This situation should rarely occur in actions with universities.

(8) Prohibitions. NASA shall not permit all or any part of an unsolicited proposal to be used as the basis, or portion of, a solicitation, or in negotiation with other organizations unless the offeror is notified of and agrees to the intended use. However, nothing herein precludes the Government from using any data, concept or idea which it could have used had the unsolicited proposal not been submitted. (See 41 CFR, Ch. 18, 4.911.)

(9) Foreign proposals. Proposals from foreign sources are additionally

require either or both recipient to take remedial action.

(3) The Director may, where necessary to overcome the effects of discrimination in violation of section 504 of this part, require a recipient to take remedial action (i) with respect to handicapped persons who are no longer participants in the recipient's program but who were participants in the program when such discrimination occurred or (ii) with respect to handicapped persons who would have been participants in the program had the discrimination not occurred, or (iii) with respect to handicapped persons presently in the program, but not receiving full benefits or equal and integrated treatment within the program.

(b) Voluntary action. A recipient may take steps, in addition to any action that is required by this part, to overcome the effects of conditions that resulted in limited participation in the recipient's program or activity by qualified handicapped persons.

(c) Self-evaluation. (1) A recipient shall, within one year of the effective date of this part; or within one year of first becoming a recipient;

(i) Evaluate, with the assistance of interested persons, including handicapped persons or organizations representing handicapped persons, its current policies and practices and the effects thereof that do not or may not meet the requirements of this part; (ii) Modify, after consultation with interested persons, including handicapped persons or organizations representing handicapped persons, any policies and practices that do not meet the requirements of this part; and

(iii) Take, after consultation with interested persons, including handicapped persons or organizations representing handicapped persons, appropriate remedial steps to eliminate the effects of any discrimination that resulted from adherence to these policies and practices.

(2) A recipient that employs fifteen or more persons shall, for at least three years follow completion of the evaluation required under paragraph (c)(1) of this section, maintain on file, make available for public inspection,

and provide to the Director upon request:

(i)A list of the interested persons consulted,

(ii) A description of areas examined and any problems identified, and

(iii) A description of any modifications made and of any remedial steps taken.

§ 1251.106 Designation of responsible employee and adoption of grievance procedures.

(a) Designation of responsible employee. A recipient that employs fifteen or more persons shall designate at least one person to coordinate its efforts to comply with this part.

(b) Adoption of grievance procedures. A recipient that employs fifteen or more persons shall adopt grievance procedures that incorporate appropriate due process standards and that provide for the prompt and equitable resolution of complaints alleging any action prohibited by this part. Such procedures need not be established with respect to complaints from applicants for employment or from applicants for admission to postsecondary educational institutions.

(a) A recipient that employs fifteen or more persons shall take appropriate initial and continuing steps to notify participants, beneficiaries, applicants, and employees, including those with impaired vision or hearing, and unions or professional organizations holding collective bargaining or professional agreements with the recipient that it does not discriminate on the basis of handicap in violation of section 504 and this part. The notification shall state, where appropriate, that the recipient does not discriminate in admission or access to, or treatment or employment in, its programs and activities. The notification shall also include an identification of the responsible employee designated pursuant to § 1251.106(a). A recipient shall make the initial notification required by this paragraph within 90 days of the effective date of this part. Methods of initial and continuing notification may include the posting of notices, publica

§ 1251.109 Effect of state or local law or other requirements and effect of employment opportunities.

(a) The obligation to comply with this part is not obviated or alleviated by the existence of any State or local law or other requirement that, on the basis of handicap, imposes prohibitions or limits upon the eligibility of qualified handicapped persons to receive services or to practice any occupation or profession.

(b) The obligation to comply with this part is not obviated or alleviated because employment opportunities in any occupation or profession are or may be more limited for handicapped persons than for nonhandicapped per

sons.

Subpart 1251.2-Employment Practices

§ 1251.200 Discrimination prohibited. (a) General. (1) No qualified handicapped person shall, on the basis of handicap, be subjected to discrimination in employment under any program or activity to which this part applies.

to

(2) A recipient that receives assistance shall take positive steps employ and advance in employment qualified handicapped persons in programs assisted under the Act.

(3) A recipient shall make all decisions concerning employment under any program or activity to which this part applies in a manner which ensures that discrimination on the basis of handicap does not occur and may not limit, segregate, or classify applicants or employees in any way that adversely affects their opportunities or status because of handicap.

(4) A recipient may not participate in a contractual or other relationship that has the effect of subjecting qualified handicapped applicants or employees to discrimination prohibited by this subpart. The relationships referred to in this subparagraph include relationships with employment and referral agencies, with labor unions, with organizations providing or administering fringe benefits to employees of the recipient and with organizations providing training and apprenticeship programs.

(b) Specific activities. The provisions of this subpart apply to:

(1) Recruitment, advertising, and the processing of applications for employment;

(2) Hiring, upgrading, promotion, award of tenure, demotion, transfer, layoff, termination, right of return from layoff, and rehiring;

(3) Rates of pay or any other form of compensation and changes in compensation;

(4) Job assignments, job classifications, organizational structures, position descriptions, lines of progression, and seniority lists;

(5) Leaves of absence, sick leave, or any other leave;

(6) Fringe benefits available by virtue of employment, whether or not administered by the recipient;

(7) Selection and financial support for training, including apprenticeship, professional meetings, conferences, and other related activities, and selection for leaves of absence to pursue training;

(8) Employer sponsored activities, including social or recreational programs; and

(9) Any other term, condition, or privilege of employment.

(c) A recipient's obligation to comply with this subpart is not affected by any inconsistent term of any collective bargaining agreement to which it is a party.

(d) A recipient may not participate in a contractual or other relationship that has the effect of subjecting qualified handicapped applicants or employees to discrimination prohibited by this subpart. The relationships referred to in this paragraph include relationships with employment and referral agencies, with labor unions, with organizations providing or administering fringe benefits to employees of the recipient, and with organizations providing training and apprenticeship programs.

§ 1251.201 Reasonable accommodation.

(a) A recipient shall make reasonable accommodation to the known physical or mental limitations of an otherwise qualified handicapped applicant or employee unless the recipient can demonstrate that the accommodation would impose an undue hardship on the operation of its program.

(b) Reasonable accommodation may include:

(1) Making facilities used by employees readily accessible to and usable by handicapped persons, and

(2) Job restructuring, part-time or modified work schedules, acquisition or modification of equipment or devices, the provision of readers or interpreters, and other similar actions.

(c) In determining pursuant to paragraph (a) of this section whether an accommodation would impose an undue hardship on the operation of a recipient's program, factors to be considered include:

(1) The overall size of the recipient's program with respect to number of employees, number and type of facilities, and size of budget;

(2) The type of the recipient's operation, including the composition and structure of the recipient's workforce; and

(3) The nature and cost of the accommodation needed.

(d) A recipient may not deny any employment opportunity to a qualified handicapped employee or applicant if the basis for the denial is the need to make reasonable accommodation to the physical or mental limitations of the employee or applicant.

§ 1251.202 Employment criteria.

(a) A recipient may not make use of any employment test or other selection criterion that screens out or tends to screen out handicapped persons or any class of handicapped persons unless:

(1) The test score or other selection criterion, as used by the recipient, is shown to be job-related for the position in question, and

(2) Alternative job-related tests or criteria that do not screen out or tend to screen out as many handicapped persons are not shown by the Director to be available.

(b) A recipient shall select and administer tests concerning employment so as best to ensure that, when administered to an applicant or employee who has a handicap that impairs sensory, manual, or speaking skills, the test results accurately reflect the applicant's or employee's job skills, aptitude, or whatever other factor the test purports, to measure, rather than reflecting the applicant's or employee's impaired sensory, manual, or speaking skills (except where those skills are the factors that the test purports to measure).

§ 1251.203 Preemployment inquiries.

(a) Except as provided in paragraphs (b) and (c) of this section, a recipient may not conduct a preemployment medical examination or may not make preemployment inquiry of an applicant as to whether the applicant is a handicapped person or as to the