U.S. Department of Homeland Security

 Washington, DC 20472 

Grant Programs Directorate Information Bulletin

No. 437

November 28, 2018

MEMORANDUM FOR: All State Administrative Agency Heads 

All State Administrative Agency Points of Contact 

All State Homeland Security Directors 

All State Emergency Management Agency Directors 

All Urban Area Security Initiative Points of Contact 

All Eligible Regional Transit Agencies

All Public Sector Transportation Security Partners

All Public and Private Sector Port Security Partners

FROM: Christopher Logan

Acting Assistant Administrator for Grant Programs

Federal Emergency Management Agency 

SUBJECT: Use of Preparedness Grant Funds for Contracting for Work 

Performed by Federally Funded Research and Development 

Centers (FFRDC)

I. Purpose

This Information Bulletin (IB) explains FEMA’s policy on the use of preparedness grants 

funds for work performed by Federally Funded Research and Development Centers 

(FFDRC). It explains when grant recipients may contract with FFDRCs and the requirements 

that apply to such contracts. 

This IB updates and supersedes FEMA Policy 205-081-1, Use of Preparedness Grant funds 

for reimbursing work performed by Federally Funded Research and Development Centers 

(FFRDC), dated November 4, 2013. With exception of a change to the implementation 

authority, there are no significant changes to the original policy.

II. Applicability

This IB is applicable to all open and future awards issued under the following grant 

programs:

• Homeland Security Grant Program (HSGP) 

o State Homeland Security Program (SHSP) 

o Urban Area Security Initiative (UASI) 
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• Tribal Homeland Security Grant Program (THSGP)

• Emergency Management Performance Grant (EMPG) Program 

• Transit Security Grant Program (TSGP) 

• Intercity Passenger Rail Security Grant Program (IPR) 

• Port Security Grant Program (PSGP) 

• Fire Prevention and Safety (FP&S)

III.Guidance

A. Authorities

1. In accordance with section 2008(a) of the Homeland Security Act of 2002, Pub. L. 

No. 107-296 (codified as amended at 6 U.S.C. § 609(a)), FEMA shall permit a 

recipient of a SHSP, UASI, or THSGP grant to use grant funds to achieve target 

capabilities related to preventing, preparing for, protecting against, and responding to 

acts of terrorism. This includes permitting a recipient to work in conjunction with a 

National Laboratory as defined in section 2(3) of the Energy Policy Act of 2005, Pub. 

L. No. 109-58 (codified at 42 U.S.C. § 15801(3)). Such use of grant funds must be 

consistent with a State homeland security plan and relevant local, tribal, and regional 

homeland security plans. 

2. Working in conjunction with a National Laboratory also may be allowable for 

preparedness grants awarded under the following:

a. EMPG per section 662 of the Post-Katrina Emergency Management Reform 

Act of 2006, Pub. L. No. 109-295 (codified as amended at 6 U.S.C. § 762); 

the Robert T. Stafford Disaster Relief and Emergency Assistance Act, Pub. L. 

No. 93-288 (codified as amended at 42 U.S.C. §§ 5121 et seq.); the 

Earthquake Hazards Reduction Act of 1977, Pub. L. No. 95-124 (codified as 

amended at 42 U.S.C. §§ 7701 et seq.); and the National Flood Insurance Act 

of 1968, as amended (Pub. L. No. 90-448) (42 U.S.C. §§ 4001 et seq.)

b. TSGP per section 1406 of the Implementing Recommendations of the 9/11 

Commission Act of 2007, Pub. L. No. 110-53 (codified at 6 U.S.C. § 1135)

c. IPR per section 1513 of the Implementing Recommendations of the 9/11 

Commission Act of 2007, Pub. L. No. 110-53 (codified at 6 U.S.C. § 1163)

d. PSGP per section 102 of the Maritime Transportation Security Act of 2002, 

Pub. L. No. 107-295 (codified as amended at 46 U.S.C. § 70107)

e. FP&S per section 33 of the Federal Fire Prevention and Control Act of 1974, 

Pub. L. No. 93-498 (codified as amended at 15 U.S.C. § 2229)

B. Requirements

1. In keeping with the preparedness grant programs’ statutory provisions, grant 

recipients and subrecipients may use grant funds to execute a contract with a FFRDC 

to conduct research and development projects that are within or in support of the 
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scope and allowable costs of the applicable grant award. Such projects would also 

need to comply with applicable guidance in the respective grant program’s Funding 

Opportunity Announcement or Notice of Funding Opportunity.

2. Dependent upon the agreement between the FFRDC and its Federal agency sponsor, 

FFRDCs may accept work from non-sponsors such as FEMA preparedness grant 

recipients and subrecipients. A grant recipient or subrecipient that wishes to issue a 

contract to a FFRDC must follow all applicable laws and regulations when utilizing 

Federal grant funds, including the requirements set forth in 44 C.F.R. § 13.36 for 

procurement under grants to states, local governments, and tribes before December 

26, 2014; 2 C.F.R. §§ 215.40 – 215.48 for procurement under grants to institutions of 

higher education, hospitals, or other nonprofit organizations before December 26, 

2014; 2 C.F.R. §§ 200.317 – 200.326 for procurement under grants to all non-Federal 

entities on or after December 26, 2014; and 48 C.F.R. §§ 35.017 – 35.017-7 regarding 

the use of FFDRCs.

3. Nothing in this Policy changes or impacts the legal responsibilities of FFRDCs and 

their sponsoring agencies, including the regulations of 48 C.F.R. §§ 35.017 – 35.017-

7.

4. Grantees should reference the National Science Foundation (NSF) master list of 

FFRDCs to identify an appropriate FFRDC to support the scope and objectives of the 

grant program. Grant recipients and subrecipients are responsible for selecting a 

FFRDC prior to issuance of a contract using FEMA preparedness grant funds. The 

Federal Acquisition Regulation (FAR) requires the NSF to maintain a master list of 

FFRDCs. The list is available at: http://www.nsf.gov/statistics/ffrdclist/.

5. FEMA Grant Programs Directorate (GPD) and Regional staff are responsible for 

reviewing program applications and determining allowability of costs, as well as 

ensuring grantee expenditures are warranted under this policy. 

C. Definitions

1. FFRDC: Federally Funded Research and Development Center, as defined at 48 

C.F.R. §§ 2.101 and 35.017(a)(2)-(3). An FFRDC is an activity sponsored under a 

broad charter by a Federal government agency (or agencies) for the purpose of 

performing, analyzing, integrating, supporting, and/or managing basic or applied 

research and/or development, and that receives 70 percent or more of its financial 

support from the Federal government; and –

1. A long-term relationship is contemplated; 

2. Most or all of the facilities are owned or funded by the Federal government; and 

3. The FFRDC has access to Federal government and supplier data, employees, and 

facilities beyond that common in a normal contractual relationship.

The purpose of a FFRDC is to meet some special long-term research or development 

need which cannot be met as effectively by existing in-house or contractor resources. 
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FFRDCs are operated, managed, and/or administered by either a university or 

consortium of universities, other not-for-profit or nonprofit organization, or an 

industrial firm, as an autonomous organization or as an identifiable separate operating 

unit of a parent organization.

2. Nonsponsor: As defined by 48 C.F.R. § 35.017(b). Any other organization, in or 

outside of the Federal Government, which funds specific work to be performed by the 

FFRDC and is not a party to the sponsoring agreement establishing the FFRDC.

3. Primary Sponsor: As defined by 48 C.F.R. § 35.017(b). The lead agency responsible 

for managing, administering, or monitoring overall use of the FFRDC under a 

multiple sponsorship agreement.

4. Sponsor: As defined by 48 C.F.R. § 35.017(b). The executive agency that manages, 

administers, monitors, funds, and is responsible for the overall use of an FFRDC. 

Multiple agency sponsorship is possible as long as one agency agrees to act as the 

“primary sponsor.” In the event of multiple sponsors, “sponsor” refers to the primary 

sponsor.

D. Abbreviations

1. C.F.R.: Code of Federal Regulations.

2. FAR: Federal Acquisition Regulations. The FAR is codified in Title 48 of the C.F.R.

3. FEMA: Federal Emergency Management Agency.

4. GPD: Grant Programs Directorate.

5. NSF: National Science Foundation. 

IV.Questions

Questions regarding this IB may be directed to: AskCSID@fema.dhs.gov.

V. Review Date

This IB will be reviewed five years from the date of issuance.