eration should be given to independent basic research. (c) The military departments and other agencies of the Department of Defense authorized to conduct or support basic research will provide the Director of Defense Research and Engineering with such information as he may require in order to carry out his responsibilities under this part, including annual reports through established administrative and fiscal channels of the following, by contract or grant and dollar value: (1) Basic research performed in government laboratories. (2) Basic research grants to educational and nonprofit institutions. (3) Basic research contracts to educational and nonprofit institutions. (4) Basic research contracts to industrial contractors, including small busi (d) Implement the uniform administrative requirements contained in OMB Circular A-110. § 273.2 Applicability. The provisions of this part apply to the Office of the Secretary of Defense, the Military Departments, the Organization of the Joint Chiefs of Staff, the Defense Agencies, and the Unified and Specified Commands (hereafter referred to as "DoD Components"). § 273.3 Definitions. (a) Grant. An award of funds or equipment pursuant to a written agreement executed by a sponsoring agency of the Department of Defense under the authority of Pub. L. 85-934. The definition of a grant as stated herein falls within the definition of "other agreements" as set forth in OMB Circular A-110. (b) Sponsoring agency. A DoD Component or official research activity authorized under § 273.5 basic Directive, to make grants in support of research. (c) Research. Scientific study and experimentation directed toward: (1) Increasing knowledge and understanding in those fields of the physical, engineering, environmental and life sciences related to long-term national security needs. (2) Providing fundamental knowl edge required for the solution of mili tary problems. (3) Forming a part of the base for (i) subsequent exploratory and advanced developments in defense-related technologies; and (ii) new or improved mili tary functional capabilities in such areas as communications, detection, tracking, surveillance, propulsion, mobility, guidance and control, navigation, energy conversion, materials and structures, and personnel support. (d) Grantee organization or recipient. Any corporation, foundation, trust, or institution (1) operated for purposes of higher education or whose primary purpose is the conduct of scientific research; (2) not organized for profit; and (3) no part of whose net earnings inure to the profit of any private shareholder or individual. Grantee organizations located outside the U.S. and Canada are referred to as "foreign grantee organizations.' § 273.4 Policy. (a) General (1) Use of grants. A grant will be limited to the support of those research projects of excellence authorized by Pub. L. 85-934 which are performed by the type of recipients covered under OMB Circular A110 and which meet relevant research requirements related to the mission of the DoD. (2) Prior to awarding a grant. (i) The grantee organization (defined in § 273.3) must furnish a letter of assurance that it is complying with the provisions of 32 CFR part 300. (ii) Environmental factors involved in research programs or projects will be considered, pursuant to the guidelines of 32 CFR part 214. (iii) A determination must be made that the grantee organization is not in violation of the statutory limitations contained in section 606, Pub. L. 92436 or any similar enactment of a later date. (iv) If the proposed grant to a foreign grantee organization is more than $10,000, the Secretary of the Military Department concerned, or his designee, must determine in advance that the research cannot be performed by a U.S. or Canadian organization, and that it is not feasible to forego performance. (3) Special instructions—(i) Cost sharing. Sponsoring agencies shall encourage grantee organizations to contribute to the cost of performing research, unless the grantee organization has little or no non-Federal sources of funds from which to make a cost contribution. Guidelines applicable to cost contribution by grantee organizations are contained in FMC 73-3 and supplemented by OMB Circular A-110. 1 Section 606 requires that no funds be expended at any institution of higher learning whose policies bar military recruiting personnel from their premises, unless the Secretary of Defense, or his designee, specifically determines that a renewal or continuation of previous grants to such institutions is likely to contribute significantly to the Defense effort. (ii) Vesting of equipment. Title to equipment purchased or acquired under a grant shall be vested in the grantee organization in accordance with OMB Circular A-110 and Pub. L. 94-519. (b) Grant agreements. These shall be brief and contain only those provisions which accurately reflect the nature of the grant relationship and which are required by statute or are necessary for the protection of the fundamental interests of the Department of Defense. Provision shall be made for: (1) The maintenance of records adequate to (i) document the actual amount of any participation and (ii) determine whether or not grant funds have been properly expended. (2) Appropriate patent, property, and data rights. (3) The suspension or revocation of grants. (4) The receipt by the sponsoring agency of technical reports and the results of all research performed by the grantee organization. (c) Administration of grants. (1) Grants shall be administered by the cognizant contract administration office using the ASPR provisions as a guide and in accordance with the provisions of OMB Circular A-110 except for grants to recipients excluded by paragraph 6.b. of the Circular. To the extent practical, the substance of the policies in the Circular will be applied to recipients not covered by it, except that where any statute expressly prescribes policies or specific requirements that differ from the standards in the Circular, the provisions of the statute will govern. (2) Applicable cost principles of parts 2 or 3 of section XV of ASPR will be used in establishing the grant amount. Costs which are not allowable under those parts may not be included in the grantee organization's cost contribution, if any. (3) A grantee organization contribution will be subject to audit (see § 273.5(d)). § 273.5 Responsibilities and authorities. (a) The Director, Defense Research and Engineering, shall administer the provisions of this Directive. filed notices of intent to bid or who have filed bids. (b) The term Loan Agreement means the proposed agreement between the foreign government and the private U.S. lender as described in the particular notice of Invitation to Bid. § 274.3 Public notice. (a) Bids hereunder will be invited through a public notice issued by the Secretary of Defense or his designee which will prescribe the amount of the loan for which bids are invited, the re payment schedule, the conditions under which bidders may specify the a rate of interest, and the date and clos ing hour for receipt of bids. (b) Accompanying the notice will be the form of the Loan Agreement which the successful bidder must execute with the borrower, except for those terms which will be subject to bidding. § 274.4 U.S. guaranty. Under section 24 of the Foreign Military Sales Act (22 U.S.C. 2764), any individual, corporation, partnership, or other juridical entity (excluding U.S. Government agencies) will be guaranteed against political and credit risks of nonpayment arising out of their fi nancing of credit sales of defense articles and defense services to friendly countries and international organiza. tions. Section 24 explicitly provides that guarantees thereunder are backed by the full faith and credit of the United States. Fees in the amount of one-fourth of 1 percent of the amount of credits agreed upon shall be charged for such guaranties. い § 274.6 Submission of bids. (a) General. Bids will be received only at the place specified and not later than the time designated in the public notice. Bids shall be irrevocable. (b) Interest rates. Bids must be expressed in terms of rates of interest not to exceed three decimals, for example, 5.125 percent. (c) Group bids. A syndicate or other group submitting a bid must act through a representative who must be a member of the group. The representative must warrant to the Secretary of Defense or his designee, that he has all necessary power and authority to act for each member and to bind the members jointly and severally. In addition to whatever other data may be required by the Secretary of Defense or his designee, in the case of a syndicate, the representative must file, within 1 hour after the time for opening bids, at the place specified in the public notice for receipt of bids a final statement of the composition of the syndicate membership and the amount of each member's underwriting participation. $274.7 Acceptance of bids. 4(a) Opening bids. Bids will be opened at the time and place specified in the public notice. (b) Acceptance of successful bid. The Secretary of Defense or his designee will notify any successful bidder of acceptance in the manner and form specified in the public notice. § 274.8 Bids-revocations-rejections postponements. The Secretary of Defense or his designee in his discretion, may (a) revoke the public notice of invitation to bid at any time before opening bids, (b) return all bids unopened either at or prior to the time specified for their opening, (c) reject any or all bids, (d) postpone the time for presentation and opening of bids, and (e) waive any immaterial or obvious defect in any bid. Any action the Secretary of Defense or his designee may take in these respects shall be final. In the event of a postponement, known bidSders will be advised thereof and their bids returned unopened. 8 274.9 Delegation of authority to the Secretary of the Treasury. There is hereby delegated to the Secretary or Acting Secretary of the Treasury the authority, in the name of and title of the Secretary of the Treasury, to invite bids under this memorandum, to issue, modify and revoke public notices, notices, and announcements concerning such bids, to prescribe additional terms and conditions with respect thereto, consistent with this memorandum, to receive, return, open, reject, and accept bids, and to take such other actions as may be necessary and proper to execute this delegation of authority to implement this memorandum, excluding, however, the issuance of guaranties under § 274.4. (hereafter referred to collectively as "DoD Components"). § 277.3 Policy. It is DoD policy to redress fraud in DoD programs and operations through the nonexclusive use of Pub. L. 99-509. All DoD Components shall comply with the requirements of this part in using this new remedy. Changes or modifications to this part by implementing organizations are prohibited. Implementing regulations are authorized only to the extent necessary to effectively carry out the requirements of this part. § 277.4 Responsibilities. (a) The Inspector General, Department of Defense (IG, DoD), shall establish procedures for carrying out the duties and responsibilities of the "investigating official" as outlined in the Appendix of this part. (b) The General Counsel, Department of Defense (GC, DoD), shall: (1) Establish procedures for carrying out the duties and responsibilities of the authority head, Department of Defense, which have been delegated to the GC, DoD, as set forth in Appendix of this part. (2) Establish procedures for carrying out the duties and responsibilities for appointment and support of presiding officers, as set forth in Appendix of this part; and (3) Review and approve the regulations and instructions required by this section to be submitted for approval by the GC, DOD. (c) The Secretaries of the Military Departments shall: (1) Establish procedures for carrying out the duties and responsibilities of the "authority head" and of the "reviewing officials" for their respective Departments, and for obtaining and supporting presiding officers from other Agencies as specified in Office of Personnel Management (OPM) regulations; (see Appendix of this part). (2) Make all regulations or instructions promulgated subject to the approval of the GC, DoD; and (3) Delegate duties as appropriate. (d) The General Counsel of the National Security Agency (GC, NSA) and the General Counsel of the Defense Lo gistics Agency (GC, DLA) shall be responsible for establishing procedures for carrying out the duties and responsibilities of the reviewing officials that have been delegated to them, as stated in Appendix of this part. All Regulations or Instructions promulgated pursuant to this part shall be submitted to the GC, DOD. APPENDIX-PROGRAM FRAUD CIVIL REMEDIES A. Scope and Purpose 1. The Department of Defense has the authority to impose civil penalties and assessments against persons who make, submit or present, or cause to be made, submitted, or presented, false, fictitious, or fraudulent claims or written statements to authorities or to their agents. 2. This Appendix: a. Establishes administrative policies and procedures for imposing civil penalties and assessments against persons who make, submit, or present, or cause to be made, submitted, or presented, false, fictitious, or fraudulent claims or written statements to authorities or to their agents; b. Specifies the hearing and appeal rights of persons subject to allegations of liability for such penalties and assessments. 3. The uniform policies and procedures established by this enclosure are binding on the authorities and authority heads in the Department of Defense and Military Departments. Additional administrative regulations necessary to carry out the require ments of the PFCRA and this part may be written by the authority heads. Any such regulations shall be consistent with the provisions of this Appendix. B. Definitions 1. Adequate Evidence Information sufficient to support the rea sonable belief that a particular act or omis sion has occurred. 2. Authority a. The Department of Defense, which includes OSD, Organization of the Joint Chiefs of Staff (OJCS), Unified and Specified Commands, Defense Agencies, and DoD Field Activities. b. The Department of the Army. |