tions,

as appropriate in the circumstances:

(1) Temporarily withhold cash payments pending correction of the deficiency by the grantee or subgrantee or more severe enforcement action by the awarding agency,

(2) Disallow (that is, deny both use of funds and matching credit for) all or part of the cost of the activity or action not in compliance,

(3) Wholly or partly suspend or terminate the current award for the grantee's or subgrantee's program,

(4) Withhold further awards for the program, or

(5) Take other remedies that may be legally available.

(b) Hearings, appeals. In taking an enforcement action, the awarding agency will provide the grantee or subgrantee an opportunity for such hearing, appeal, or other administrative proceeding to which the grantee or subgrantee is entitled under any statute or regulation applicable to the action involved.

(c) Effects of suspension and termination. Costs of grantee or subgrantee resulting from obligations incurred by the grantee or subgrantee during a suspension or after termination of an award are not allowable unless the awarding agency expressly authorizes them in the notice of suspension or termination or subsequently. Other grantee or subgrantee costs during suspension or after termination which are necessary and not reasonably avoidable are allowable if:

(1) The costs result from obligations which were properly incurred by the grantee or subgrantee before the effective date of suspension or termination, are not in anticipation of it, and, in the of a termination, are noncancellable, and,

case

(2) The costs would be allowable if the award were not suspended or expired normally at the end of the funding period in which the termination takes effect.

(d) Relationship to debarment and suspension. The enforcement remedies identified in this section, including suspension and termination, do not preclude grantee or subgrantee from being subject to "Debarment and Suspension" under E.O. 12549 (see § 600.435).

§ 600.244 Termination for convenience. Except as provided in §600.443 awards may be terminated in whole or in part only as follows:

(a) By the awarding agency with the consent of the grantee or subgrantee in which case the two parties shall agree upon the termination conditions, including the effective date and in the case of partial termination, the portion to be terminated, or

(b) By the grantee or subgrantee upon written notification to the awarding agency, setting forth the reasons for such termination, the effective date, and in the case of partial termination, the portion to be terminated. However, if, in the case of a partial termination, the awarding agency determines that the remaining portion of the award will not accomplish the purposes for which the award was made, the awarding agency may terminate the award in its entirety under either § 600.443 or paragraph (a) of this section.

(a) General. The Federal agency will close out the award when it determines that all applicable administrative actions and all required work of the grant has been completed.

(b) Reports. Within 90 days after the expiration or termination of the grant, the grantee must submit all financial, performance, and other reports required as a condition of the grant. Upon request by the grantee, Federal agencies may extend this timeframe. These may include but are not limited to:

(1) Final performance or progress report.

(2) Financial Status Report (SF 269) or Outlay Report and Request for Reimbursement for Construction Programs (SF-271) (as applicable).

(3) Final request for payment (SF-270) (if applicable).

(4) Invention disclosure (if applicable). (5) Federally-owned property report: In accordance with §600.432(f), a grantee must submit an inventory of all federally owned property (as distinct from property acquired with grant funds) for which it is accountable and request dis

position instructions from the Federal agency of property no longer needed.

(c) Cost adjustment. The Federal agency will, within 90 days after receipt of reports in paragraph (b) of this section, make upward or downward adjustments to the allowable costs.

(d) Cash adjustments. (1) The Federal agency will make prompt payment to the grantee for allowable reimbursable costs.

(2) The grantee must immediately refund to the Federal agency any balance of unobligated (unencumbered) cash advanced that is not authorized to be retained for use on other grants.

§600.251 Later disallowances and adjustments.

The closeout of a grant does not affect:

(a) The Federal agency's right to disallow costs and recover funds on the basis of a later audit or other review;

(b) The grantee's obligation to return any funds due as a result of later refunds, corrections, or other transactions;

(c) Records retention as required in § 600.442;

(d) Property management requirements in §§600.431 and 600.432; and

(e) Audit requirements in § 600.426. $600.252 Collection of amounts due.

(a) Any funds paid to a grantee in excess of the amount to which the grantee is finally determined to be entitled under the terms of the award constitute a debt to the Federal Government. If not paid within a reasonable period after demand, the Federal agency may reduce the debt by:

(1) Making an adminstrative offset against other requests for reimbursements,

(2) Withholding advance payments otherwise due to the grantee, or

(3) Other action permitted by law.

(b) Except where otherwise provided by statutes or regulations, the Federal agency will charge interest on an overdue debt in accordance with the Federal Claims Collection Standards (4 CFR Ch. II). The date from which interest is computed is not extended by litigation or the filing of any form of appeal.

Entitlements [Reserved]

Subpart D-Cooperative Agreements

SOURCE: 53 FR 5262, Feb. 22, 1988, unless otherwise noted. Redesignated at 59 FR 53265, Oct. 21, 1994.

$600.300 Scope and applicability.

(a) This subpart establishes policies and procedures for the award and administration of cooperative agreements.

(b) The requirements of this subpart shall apply as indicated in § 600.2 except that this subpart shall not apply to any new award resulting from a solicitation issued before February 22, 1988.

(c) The noncompliance procedures of §600.162 and §600.243, and the suspension and termination procedures of $600.29 which are specified for cooperative agreement use in §600.305 shall apply, with the concurrence of the affected parties, to any applicable action initiated before February 22, 1988, and shall apply to any applicable action initiated after February 22, 1988, under an active cooperative agreement. The closeout procedures of §§ 600.170 through 600.173 and §§ 600.250 through 600.252 which are specified in §600.305 shall apply to any terminated or expired cooperative agreement which has not been closed out prior to February 22, 1988.

[53 FR 5262, Feb. 22, 1988, as amended at 53 FR 8047, Mar. 11, 1988; 59 FR 53266, Oct. 21, 1994]

$600.301 Definitions.

The definitions contained in §600.101 except for "formula grant" and "subgrant" shall apply to all cooperative agreements. In addition, for purposes of this subpart, participant means the organization, individual, or other entity that receives a cooperative agreement award from DOE and is financially accountable for the use of any DOE funds or property provided for the performance of the project, and is legally responsible for carrying out the terms and conditions of the award.

§ 600.303 Application budgetary information.

For cooperative agreement application subject to the SEB process, DOE may require that applicants, other than governmental entities, submit budget information in a different format and in greater detail than that specified in §§ 600.10, 600.112 and 600.410 only when that information is essential to evaluation under the SEB process. State, local, and Indian tribal governments shall continue to provide budget information as specified in §§ 600.10, 600.112 and 600.410 and shall be excluded from this requirement. (Also see §§ 600.10, 600.112 and 600.410 for the other requirements pertinent to application contents.)

[53 FR 5262, Feb. 22, 1988, as amended at 53 FR 8047, Mar. 11, 1988; 59 FR 53266, Oct. 21, 1994]

§ 600.304 Instrument conversion.

(a) Conversion of a grant to a cooperative agreement. Subsequent to the award of a grant, it may be necessary for DOE to become substantially involved with the participant in the performance of the project. However, the introduction of substantial involvement does not by itself constitute a conversion from a grant to a cooperative agreement relationship nor does it necessarily require tht a change be made in instrument type.

(1) Determination. When DOE determines in accordance with §600.202 that a cooperative agreement would be the appropriate instrument because of the necessity for substantial involvement between the parties, and the substantial involvement is necessary for a period of at least twelve months beyond the expiration date of the current budget period, DOE will initiate action to convert the grant to a cooperative agreement.

(2) Conversion. DOE shall notify the grantee of its intention to convert from a grant to a cooperative agreement as soon as the decision is made, but no later than sixty days prior to the expiration date of the current budget period. Conversion of a grant to a cooperative agreement shall be effected at the time of negotiation of the continuation or renewal award or any extension of twelve months or more. A

grant may also be converted to a cooperative agreement at any time after award when it is mutually agreed that DOE should be substantially involved in the performance of the project. The conversion shall be accomplished by an amendment to the award. The amendment documents shall:

(i) Change the instrument-type designation in the award document from "Grant" to "Cooperative Agreement";

(ii) Indicate that thereafter subpart C of this part shall apply to the agreement in lieu of subpart B of this part; (iii) Add a statement of substantial involvement between DOE and the participant in accordance with §600.202(c); and

(iv) Change any other terms, as appropriate (e.g., special provisions, reporting), to reflect the increased involvement by DOE.

(3) In the event DOE determines substantial involvement between the parties is necessary for at least twelve months after the expiration date of the current budget period and the grantee does not agree to conversion of the instrument at the time of negotiation, the grantee's refusal to agree to the conversion will be the basis for not making a continuation award, renewal award, or extension and the recipient shall have no right of appeal under §600.26. Any refusal to accept a cooperative agreement award shall be treated in accordance with §600.22.

(b) Conversion of a cooperative agreement to a grant. A cooperative agreement may be converted to a grant if DOE determines after award of a cooperative agreement that the anticipated substantial involvement between the parties will not be necessary. Conversion of a cooperative agreement to a grant shall be accomplished by a bilateral amendment to the award as soon as possible after it is determined that no substantial involvement will be necessary between DOE and the participant during performance of the activity. The amendment shall:

(1) Change the instrument type designation in the award document from "Cooperative Agreement" to "Grant";

(2) Indicate that thereafter subpart B of this part will apply to the agreement in lieu of subpart C of this part;

(3) Delete the "Substantial Involvement Between DOE and Participant” section from the agreement; and

(4) As necessary, change any other administrative terms which relate to the substantial involvement between DOE and the participant. If the participant does not agree to the conversion, DOE shall initiate a termination of the agreement in accordance with §600.29.

[53 FR 5262, Feb. 22, 1988, as amended at 53 FR 8047, Mar. 11, 1988]

§ 600.305 Application, funding, and administrative requirements.

Unless otherwise specified in this subpart or subpart A of this part, the application, funding, and administrative requirements for cooperative agreements are specified in subpart B of this part for recipients who are other than State, local, or Indian tribal governments and subpart C of this part for State, local and Indian tribal governments. Furthermore, the audit requirements set forth in subpart D of this part shall apply to cooperative agreements with State and local governments.

[53 FR 8047, Mar. 11, 1988, as amended at 59 FR 53266, Oct. 21, 1994]

§ 600.306 Cost sharing.

In addition to the requirements of §600.123 or $600.224, the following requirements apply to research, development, and demonstration projects:

(a) When DOE awards cooperative agreements for research, development, and demonstration projects where the primary purpose of the project is the ultimate commercialization and utilization of technology by the private sector and when there are reasonable expectations that the participant will receive significant present or future economic benefits beyond the instant award as a result of the performance of the cooperative agreement, cost sharing shall be required unless waived by the cognizant Program Assistant Secretary or designee.

(b) DOE will decide, on a case-by-case basis, the amount of cost sharing required for a particular project.

(c) Factors in addition to those specified in §600.123 or §600.224, which may be considered when negotiating cost

sharing for research, development, and demonstration projects include the potential benefits to a participant resulting from the project and the length of time before a project is likely to be commercially successful.

[53 FR 5265 Feb. 22, 1988 as amended at 53 FR 8047, Mar. 11, 1988; 59 FR 53266, Oct. 21, 1994]

§ 600.307 Patents, data, and copyrights.

(a) General. Cooperative agreements shall be awarded and administered by DOE in compliance with the patent, data, and copyright provisions of this section and 48 CFR part 927. DOE shall specify in each award, the applicable patent, data, and copyright provisions.

(b) Required clauses. DOE shall determine which of the clauses listed in this paragraph or in 48 CFR part 927 apply, based on DOE review of the application, other information submitted by the applicant, and any negotiations. These clauses may be modified by DOE Patent Counsel, in accordance with the procedures of 48 CFR part 927, for a particular cooperative agreement or for a class of cooperative agreements. In each patent, data, and copyright clause selected for inclusion in the cooperative agreement, the terms "grant" or "contract" shall be read as "cooperative agreement" or "agreement," the terms "grantee" or "contractor” shall be read as “participant,” the term "subgrant" shall be read as "subaward," and "subcontract" "contract" awarded under a grant shall be read as "contract" under a cooperative agreement.

or

(1) Patent Rights (Small Business Firm or Nonprofit Organization). The clause set forth in §600.33(b)(1) shall be included in cooperative agreements with small business firms and nonprofit organizations where such cooperative agreements have as a purpose the conduct of experimental, developmental, demonstration, or research work. The policies and procedures of §600.33(b)(1) require the small business firm or nonprofit organization to state in writing that it qualifies as a small business firm or nonprofit organization. In exceptional circumstances, DOE may, as determined by Patent Counsel, use a patent rights clause other than the clause specified in paragraph (b)(1) of