§ 503 1 Applications by institutes for grants of matching funds for specific projects.

(a) Manner of submission. An application for a matching grant under section 101 of the Act for a specific water resources research project should be submitted by an institute in 15 copies to the Director, Office of Water Resources Research, Department of the Interior, Washington, D.C., 20240.

(b) Definition of funds eligible for matching. Non-Federal funds which may be used to match a grant of Federal funds, on not less than a dollarfor-dollar basis, are those that have been or will be made available to an institute by State or other non-Federal sources during the duration of the project for which the grant is sought to meet the necessary expenses of a specific water resources research project, including the expenses of planning and coordinating regional water resources projects by two or more institutes. The fair value of services, facilities, property, or other contributions supplied from non-Federal sources, but excluding the cost of permanent buildings, may also be included. Title requirements for property purchased with non-Federal funds and used to match grants under the Act are set forth in section 505.5 of this chapter.

(c) Information required with application. Applications for matching grants shall be in the form of proposals to undertake specific water re

sources research projects. Such proposals shall set forth for each project

(1) The nature and scope of the project to be undertaken.

(2) The period during which it will be pursued,

(3) The name and qualifications of the person who will direct the project,

(4) The number and general qualifications of the personnel who will work on the project, with the name, education, experience, and accomplishments of the principal scientist who will be assigned to it,

(5) The location or locations at which the project will be pursued,

(6) The importance of the project to the water economy of the Nation, the region and the State concerned,

(7) The relation of the project to the over-all program of the institute.

(8) The relation of the project to other known research projects theretofore pursued or currently being pursued by the institute and by others (including but not limited to projects listed by the Science Information Exchange),

(9) The extent to which the project will provide opportunity for the training of scientists,

(10) A financial plan setting forth cash requirements, subdivided between grant and non-Federal funds

(i) For each quarter of the first fiscal year, and

(ii) For each subsequent fiscal year during the proposed life of the project,

(11) The facilities that will be devoted to the project,

(12) The salient points of the plan that will be followed in pursuing the project, including a financial plan in which expenditures are related to activity and rate of effort to be expended,

(13) The intended method of publishing the results of the project on a timely basis,

(14) The basis for a determination that the project could not be undertaken without the grant for which application is made,

(15) Evidence that all reports due under Part 506 of this chapter have been submitted,

(16) The names of other colleges or universities, if any, within the State with which arrangements have been made for their participation in the project, with indication of the nature and extent of such participation, an explanation of the arrangements by which such participation becomes a part of the work of the institute, and an acknowledgment of the institute's responsibility for the planning, work performance, and reporting for the entire project.

(17) Assurance that, if the grant is made, the required matching funds from non-Federal sources will be forthcoming, and

(18) Information as to whether the project has been or will be submitted to organizations other than the Office of Water Resources Research for the purpose of obtaining a contract or grant, with the names of any such organizations. Similar information, with the part (or parts) of the project appropriately identified, shall be provided when only a part (or parts) o the project has been or will be submitted to another organization.

of

(d) Additional requirement. There must be attached to the application an appropriate "Notice of Research Project", and supplementary documentation information as may be requested by the Director, for submission, if the project is approved, to the Science Information Exchange for publication in a catalog of water resources research.

§ 503.2 Applications for research grants, contracts, matching or other arrangements by entities other than institutes. (a) Eligible applicants. As provided in paragraph (b) of § 501.7 of this chapter, individuals and organizations other than an institute established under Title I of the Act and the educational institution with which the institute is identified are eligible to apply for Federal funds under section 200 of the Act to assist them in undertaking research into any aspects of water problems related to the mission of the Department of the Interior that are not otherwise being studied.

(b) Manner of submission. An application should be submitted in 15 copies to the Director, Office of Water

Resources Research, Department of the Interior, Washington, D.C. 20240. A separate application must be submitted for each project. If an application is signed by an authorized representative of an applicant, evidence of the authority of the representative must be attached.

(c) Information required with application. (1) If the applicant is an individual, the application should include a statement in reasonable detail of his education, experience, accomplishments, and special qualifications for conducting the project for which application is being made.

(2) If the applicant is an organization, the application should include a statement as to its nature, officers, principal business, experience, and special qualifications for conducting the project for which application is being made.

(3) Each application shall also set forth the information specified in paragraphs (c) and (d) of § 503.1 to the extent applicable. (There is no requirement that matching funds be supplied from non-Federal Sources in order to receive assistance under section 200 of the Act.)

PART 504-APPROVAL OF ALLOTMENTS AND APPLICATIONS

Sec.

504.1 Return of defective submissions. 504.2 Approval of initial allotments to institutes.

504.3 Approval of allotments to institutes after the first year.

504.4 Approval of grants to institutes of matching funds for specific projects. 504.5 Approval of grants to, and contracts,

matching or other arrangements with, entities other than institutes established pursuant to the Act.

AUTHORITY: Sec. 104, 78 Stat. 331; 42 U.S.C. 1961a-4.

SOURCE: 29 FR 16190, Dec. 3, 1964, unless otherwise noted.

§ 504.1 Return of defective submissions.

(a) Upon receipt of a request for approval of an allotment or upon receipt of an application for a grant, contract, matching or other arrangement pursuant to the Act, the Director shall determine whether the submission con

30-039 O 78 - 32

forms to the requirements of Part 502 or Part 503 of this chapter as appropriate. Non-conforming submissions will be returned with statements of the reasons for their return.

§ 504.2 Approval of initial allotments to institutes.

(a) The Director will approve the initial allotment to an institute when he has determined that the institute

(1) Has been organized in conformity with subsection 100(a) of the Act,

(2) Has, or may reasonably be expected to have, the capability of doing effective work under the Act,

(3) Is committed to a program of work and a plan of operation that conform with the provisions of the Act and provide for activities that will not duplicate established water research programs, and

(4) Has a financial plan in which proposed expenditures have a reasonable relationship to the probable value of the results of the institute's activities.

(b) When the Director has determined that the initial allotment should be made to an institute, he will draft and sign a proposed continuing agreement setting forth the general terms and conditions of allotments, and forward five copies of it to the institute. The institute shall sign and return to the Director three copies of the continuing agreement. Such continuing agreement will also apply to grants to institutes of matching funds for specific projects, pursuant to section 101 of the Act, if such grants are approved by the Director.

(c) The Director will also draft, sign, and forward to the institute five copies of an annual allotment agreement covering the initial annual allotment. The institute shall sign and return to the Director three copies of the annual allotment agreement.

§ 504.3 Approval of allotments to institutes after the first year.

(a) Each fiscal year after the first, the Director will approve an allotment to an institute when he has determined that the institute

(1) Has, since receiving its preceding allotment, undergone no changes in its

form of organization, finances, and plan of operation that disqualify it for an allotment pursuant to section 100 of the Act.

(2) Has submitted, in satisfactory form, all reports required in Part 506 of this chapter,

(3) Is committed to a program of work and a plan of operation that conform to the provisions of section 100 of the Act and provide for activities that will not duplicate established water research programs,

(4) Is engaged in, and is committed to a program of research, investigations and experiments and the training of scientists through such activities that represent competent and effective work of the types and in the manner provided for in the Act,

(5) Has properly accounted for all funds received pursuant to the Act and, if the Director has determined that any portion of such funds were improperly diminished, lost, or misapplied, has replaced them and supplied evidence that it has instituted safeguards that will assure proper handling of funds received under the Act in the future, and

(6) Has a financial plan in which proposed expenditures have a reasonable relationship to the probable value of the results of the institute's activities.

(b) In evaluating the plans of an institute the Director will give due regard to the varying conditions and needs of the respective States.

(c) The Director will draft, sign, and forward to the institute five copies of an annual allotment agreement. The institute shall sign and return to the Director three copies of the annual allotment agreement.

§ 504.4 Approval of grants to institutes of matching funds for specific projects.

(a) The Director will approve an institute's application for a matchingfund grant under section 101 of the Act to assist in financing a specific project after determining that—

(1) The applicant is a qualified institute,

(2) Satisfactory assurance has been furnished that funds from non-Federal sources that will be devoted to the

project will equal or exceed the amount of the proposed matching grant, and

(3) The proposed project is deserving of approval on the basis of its over-all merits, including consideration of

(i) The need for the knowledge it is expected to produce when completed, (ii) The opportunity it provides for the training of scientists,

(iii) The probability that it will be pursued with competence and completed within a reasonable time,

(iv) The relationship between the amount of the grant and the probable results to be achieved,

(v) Freedom from unnecessary duplication of work being performed by others, and

(vi) Evidence that the proposed project could not be undertaken without the aid of the requested grant.

(b) When the Director has determined that a matching grant should be made to an institute for a matching fund project, and if the institute has not previously executed the proposed continuing agreement required by paragraph (b) of § 504.2, he will forward such proposed continuing agreement to the institute for execution. The Director will also draft and sign a proposed matching grant agreement and forward five copies of it to the institute. The institute shall sign and return three copies of the proposed matching grant agreement, and, if one is submitted, three copies of the continuing agreement.

(c) If the proposed matching grant agreement, together with the continuing agreement if not previously executed, is not formally signed by the institute and returned to the Director within 30 days, the proposed matching grant agreement may be withdrawn by the Director.

§ 504.5 Approval of grants to, and contracts, matching or other arrangements with, entities other than institutes established pursuant to the Act.

The Director may approve proposals submitted under section 200 of the Act and § 503.2 of this chapter after determining that—

(a) The applicant for such grant, contract, matching or other arrange

ment is, as provided in paragraph (b) of § 501.7 of this chapter, a bona fide individual or organization, other than an institute established pursuant to the Act or the educational institution identified with such an institute, that has qualifications to perform work contemplated by section 200 of the

Act,

(b) The proposal was properly signed by the applicant or its duly authorized agent,

(c) The work to be undertaken represents research into aspects of water problems related to the mission of the Department of the Interior,

(d) Such research is desirable and covers aspects of water problems not otherwise being studied,

(e) A reasonable relationship exists between the cost to the Government and the probable results to be achieved, and

(f) The applicant has expressed a willingness to enter into a research project agreement acceptable to the Director.

§ 505.1 Procedure for obtaining payments. (a) Allotments. (1) After the Director has determined that an institute's qualifications and plans are acceptable, and after the applicable agreements required by paragraphs (b) and (c) of § 504.2 of this chapter and paragraph (c) of § 504.3 of this chapter have been executed, he will provide the institute with public vouchers that it may sign and return for certification by the Director and payment. Each voucher will be in five copies. Two copies may be retained by the insti

tute; three must be returned to the Director.

(2) The amounts and dates of such vouchers will be those that the Director decides, on the basis of the financial plan and reports the institute has submitted, will provide funds as they are needed by the institute to liquidate the liabilities it expects to incur. (b) Grants. (1) After the grant agreement has been formally signed, payments of grant funds to the grantee will be made on public vouchers prepared, signed, and submitted by the grantee in three copies to the Director. Such vouchers will provide for amounts to be paid to the grantee as funds are required for the liquidation of liabilities the grantee expects to incur pursuant to the terms of the grant.

(2) In support of each such voucher the grantee will relate it to the approved financial plan.

(3) In the case of matching grants, the grantee will also submit evidence that a proper relationship is being maintained between expenditures of grant and non-Federal funds.

(c) Contracts and other arrangements. Individuals and organizations that conduct research under contracts or other arrangements pursuant to section 200 of the Act will submit to the Director, not more frequently than monthly, public vouchers in three copies, claiming payment or reimbursement as called for by the terms of the contract or other arrangement. Such vouchers shall detail deliveries, performance, expenditure or such other criteria for payment as are required by or are appropriate under the contract or other arrangement. Educational institutions and non-profit organizations may obtain advance payments of initial expenses upon submission of a voucher in three copies when, in the opinion of the Director, such payment is necessary to facilitate the work being done under contracts or other arrangements pursuant to the Act.

§ 505.2 Cost computation principles.

(a) Applicability to allotments and grants. The cost-computation principles prescribed in this section shall be

utilized in the cost accounting required with respect to allotments and grants under the Act to provide evidence that the recipient has discharged the obligation it assumed, when accepting these funds, to expend them solely for costs necessary for the accomplishment of the work for which they were received. These principles will also be applied in accounting for funds from other sources to the extent that such funds are applied to meet the requirement that grants be matched with non-Federal funds.

(b) Applicability to contracts. Computation of costs in accordance with the principles prescribed in this section is a prerequisite of payments from funds provided under the Act to a contractor under cost-reimbursement-type contracts. Such cost computation is also necessary for fixed-price contracts if they are terminated prior to completion or contain price-redetermination, renegotiation, or similar clauses.

(c) Basic cost formulas. Costs will be computed:

(1) By institutes and educational institutions, in accordance with Bureau of the Budget Circular A-21, as revised, except as provided in section 505.3.

(2) By all entities other than educational institutions and institutes, in accordance with the Federal Procurement Regulations (second edition)

(Title 41, Code of Federal Regulations, Subpart 1-15.2) (29 FR 10288), except as provided in § 505.3.

§ 505.3 Capital and related expenditures.

(a) In no instance shall the Director approve payments pursuant to the Act which include any amounts representing, either directly or indirectly, the cost of permanent buildings. In no instance shall recipients of funds pursuant to the Act use such funds either directly or indirectly to pay the cost of permanent buildings.

(b) Payments received pursuant to the Act may be applied to capital expenditures, other than for permanent buildings, to the extent that such expenditures are provided for in plans for projects and other activities that have been approved by the Director.