20702 Federal Register / Vol. 72, No. 80 / Thursday, April 26, 2007 / Rules and Regulations 

E.O. 12866, Regulatory Review 

This rule has been reviewed by the 

Office of Management and Budget in 

accordance with E.O. 12866. 

Regulatory Flexibility Act 

I certify that these regulations would 

not have a significant economic impact 

on a substantial number of small entities 

because they would apply only to 

Federal agencies and employees. 

List of Subjects in 5 CFR Part 591 

Government employees, Travel and 

transportation expenses, Wages. 

Office of Personnel Management. 

Linda M. Springer, 

Director. 

■ Accordingly, OPM is amending 5 CFR 

part 591 as follows: 

PART 591—ALLOWANCES AND 

DIFFERENTIALS 

Subpart A—Uniform Allowances 

■ 1. The authority citation for subpart A 

of part 591 continues to read as follows: 

Authority: 5 U.S.C. 5903; E.O. 12748, 3 

CFR 1991 Comp., p. 316. Source: 59 FR 

43705, Aug. 25, 1994, unless otherwise 

noted. 

■ 2. In § 591.103, paragraphs (a) and (b) 

are revised and a new paragraph (c) is 

added to read as follows: 

§ 591.103 Governmentwide maximum 

uniform allowance rate. 

* * * * * 

(a) Pay an allowance for a uniform not 

to exceed $800 a year; or 

(b) Furnish a uniform at a cost not to 

exceed $800 a year. 

(c) Any agency which provides a 

uniform allowance under paragraph (a) 

of this section must establish policies to 

administer the uniform allowance 

program, including uniform standards 

acceptable to the agency. 

[FR Doc. E7–7959 Filed 4–25–07; 8:45 am] 

BILLING CODE 6325–39–P 

DEPARTMENT OF AGRICULTURE 

Cooperative State Research, 

Education, and Extension Service 

7 CFR Part 3403 

RIN 0524–AA31 

Small Business Innovation Research 

Grants Program 

AGENCY: Cooperative State Research, 

Education, and Extension Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: The Cooperative State 

Research, Education, and Extension 

Service (CSREES) is revising the Small 

Business Innovation Research (SBIR) 

Grants Program Administrative 

Regulations to implement changes and 

be compliant with the Small Business 

Innovation Research Policy Directive 

(67 FR 60072, September 24, 2002). 

DATES: This rule is effective April 26, 

2007. 

FOR FURTHER INFORMATION CONTACT: Dr. 

Deborah Sheely, Director, Integrated 

Programs, Competitive Programs Unit, 

Cooperative State Research, Education, 

and Extension Service, USDA, STOP 

2241, 1400 Independence Avenue, SW., 

Washington, DC 20250–2241; 

Telephone: (202) 401–1924; E-mail: 

dsheely@csrees.usda.gov. 

SUPPLEMENTARY INFORMATION: 

Background and Purpose 

On May 18, 2006, CSREES published 

a Proposed Rule (71 FR 28780, May 18, 

2006) to revise the Small Business 

Innovation Research Grants Program 

Administrative Regulations. In the 

Proposed Rule, CSREES invited 

comments which were due to the 

Agency contact by June 19, 2006. We 

did not receive any comments. In 

section 3403.8, we have deleted 

reference to ‘‘the project period 

normally should not exceed six 

months’’ in anticipation of potential 

changes of a similar requirement in the 

SBA Policy Directive. Changes were 

made to sections 3403.7 and 3403.8 in 

accordance with the new application 

forms. In section 3404.11, 

‘‘resubmission’’ has been added as one 

of the factors in the final decisions that 

will be made by USDA. 

In 1982, Congress enacted the Small 

Business Innovation Development Act 

of 1982, Public Law 97–219 (15 U.S.C. 

638), which established the Small 

Business Innovation Research (SBIR) 

Program. The statutory purpose of the 

SBIR Program is to strengthen the role 

of innovative small business concerns in 

Federally-funded research and research 

and development (R/R&D). The SBIR 

Program is a phased process, uniform 

throughout the Federal Government, of 

soliciting proposals and awarding 

funding agreements for R/R&D to meet 

stated agency needs or missions. To 

stimulate and foster scientific and 

technological innovation, including 

increasing commercialization of Federal 

R/R&D, the program must follow a 

uniform competitive process. 

In December of 2000, Congress 

enacted the Small Business Innovation 

Research Program Reauthorization Act 

of 2000, Public Law 106–554. The 

Reauthorization Act extends the SBIR 

Program through September 30, 2008, 

and requires the Small Business 

Administration (SBA) to clarify that 

rights to data generated during the 

performance of an SBIR award apply to 

all SBIR awards. In addition, the Act 

requires that each application for a 

Phase II award contain a succinct 

commercialization plan. 

On September 24, 2002, the SBA 

revised the SBIR Program Policy 

Directive to reflect statutory 

amendments to the SBIR Program, and 

provided guidance to Federal agencies 

for the general conduct of the program. 

The U.S. Department of Agriculture 

participates in the SBIR Program 

through the issuance of competitive 

research grants by CSREES. The Agency 

proposed revising the existing rule, at 7 

CFR Part 3403, to comply with recent 

statutory revisions and changes to the 

SBA Policy Directive. 

The following definitions have been 

added to clarify the provisions and in 

compliance with the Policy Directive: 

Intellectual Property; Innovation; Joint 

Venture; Outcomes and Outputs; 

Authorized Departmental Officer; 

Authorized Organizational 

Representative; Essentially Equivalent 

Work; SBIR Technical Data Rights; SBIR 

Technical Data; SBIR Participants; 

Prototype; Research Project Grant; Small 

Business Concern; and Socially and 

Economically Disadvantaged Small 

Business Concern. In addition, in Part 

3403.4, language was added to clarify 

the eligibility of Phase I recipients, 

specifically allowing those 

organizations receiving Phase I rights 

via successor-in-interest or novation 

agreements to be eligible to receive 

Phase II awards. In addition, language 

clarifying the timing of the submission 

of Phase II proposals during the funding 

cycle was added. In Part 3403.5 the 

mention of specific forms was deleted in 

anticipation of electronic submission of 

proposals. The requirement was 

inserted into Part 3403.7 that a small 

business concern that is submitting a 

proposal for a Phase I award must 

document the extent to which it was 

able to secure Phase III funding if it has 

received more than 15 Phase II awards 

during the preceding five years. 

Classification 

This rule has been reviewed under 

Executive Order 12866, and it has been 

determined that it is not a ‘‘significant 

regulatory action’’ rule because it will 

not have an annual effect on the 

economy of $100 million or more or 

adversely affect a sector of the economy, 

productivity, competition, jobs, the 

environment, public health or safety, or 


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Federal Register / Vol. 72, No. 80 / Thursday, April 26, 2007 / Rules and Regulations 20703 

State, local, or tribal governments or 

communities. This rule will not create 

any serious inconsistencies or otherwise 

interfere with any actions taken or 

planned by another agency. It will not 

materially alter the budgetary impact of 

entitlements, grants, user fees or loan 

programs and does not raise novel legal 

or policy issues arising out of legal 

mandates, the President’s priorities, or 

principles set forth in Executive Order 

No. 12866. 

Regulatory Flexibility Act 

Pursuant to section 605(b) of the 

Regulatory Flexibility Act, 5 U.S.C. 

605(b), this rule will not have a 

significant economic impact on a 

substantial number of small entities for 

the rule only applies to awards issued 

under the SBIR program. 

CSREES issues SBIR awards to small 

business concerns (SBC). SBC means a 

concern that, on the date of award for 

both Phase I and Phase II funding 

agreements: (1) Is organized for profit, 

with a place of business located in the 

United States, which operates primarily 

within the United States, or which 

makes a significant contribution to the 

United States economy through the 

payment of taxes or use of American 

products, materials or labor; (2) is in the 

legal form of an individual 

proprietorship, partnership, limited 

liability company, corporation, joint 

venture, association, trust or 

cooperative, except that where the form 

is a joint venture, there can be no more 

than 49 percent participation by foreign 

business entities in the joint venture; (3) 

is at least 51 percent owned and 

controlled by one or more individuals 

who are citizens of, or permanent 

resident aliens in, the United States, 

except in the case of a joint venture, 

where each entity in the venture must 

be 51 percent owned and controlled by 

one or more individuals who are 

citizens of, or permanent resident aliens 

in the United States; and (4) has, 

including its affiliates, not more than 

500 employees. The term ‘‘affiliates’’ is 

defined in greater detail in 13 CFR 

121.103. The term ‘‘number of 

employees’’ is defined in 13 CFR 

121.106. 

The Small Business Administration 

(SBA) was given the responsibility of 

issuing policy directives for the general 

conduct of the SBIR Program. In 

September 1984, the SBA issued a 

Policy Directive, which was 

subsequently revised in January 1993. 

To implement statutory changes in the 

Reauthorization Act and to streamline 

the Policy Directive, SBA modified the 

Policy Directive in 2002 (67 FR 60072, 

Sept. 24, 2002). This rule is compliant 

with the 2002 Policy Directive. The 

2002 Policy Directive provides guidance 

to the SBIR participatory Federal 

agencies for the general operation of the 

program. Since such agencies are 

compliant with the Policy Directive 

there is a reduction of burden inherent 

in the consistency amongst the agencies. 

Furthermore, awardees are able to use 

amounts awarded for indirect costs to 

meet the costs of implementing the 

regulations. In FY 2007 funds awarded 

by CSREES under the SBIR program are 

available to pay full allowable indirect 

costs. As of April 6, 2006, CSREES has 

151 active SBIR awards which are 

subject to this rule. 

Paperwork Reduction Act 

In accordance with the Office of 

Management and Budget (OMB) 

regulations (5 CFR part 1320) which 

implements the Paperwork Reduction 

Act of 1995 (44 U.S.C. Chapter 35), the 

information collection and 

recordkeeping requirements that will be 

imposed in the implementation of this 

Final Rule have been approved under 

OMB No. 0524–0024, Grant Application 

Forms for the Small Business 

Innovation Research Grants Programs. 

Federalism 

We have analyzed this rule under 

Executive Order 13132, Federalism, and 

have determined that it does not have 

federalism implications to warrant the 

preparation of a Federalism assessment 

under that order. 

Intergovernmental Review 

The Department published notice of 

the exclusion of this program from the 

scope of Executive Order 12372 which 

requires intergovernmental consultation 

with State and local officials in the 

Final Rule-Related Notice for 7 CFR part 

3015, subpart V, (48 FR 29115, June 24, 

1983). 

Environmental Impact Statement 

This proposed regulation does not 

significantly affect the environment. 

Therefore an environmental impact 

statement is not required under the 

National Environmental Policy Act of 

1969, as amended. 

Regulatory Analysis 

This proposed rule has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. All State and local laws 

and regulations that are in conflict with 

this rule are preempted. No retroactive 

effect is to be given to this rule. This 

rule does not require administrative 

proceedings before parties may file suit 

in court. 

Unfunded Mandates Reform Act 

Pursuant to Title II of the Unfunded 

Mandates Reform Act of 1995 (Pub. L. 

104–4), the Department assessed the 

effects of this rulemaking action on 

State, local, and Tribal governments, 

and the public. This action does not 

compel the expenditure of $100 million 

or more by any State, local, or Tribal 

government, or anyone in the private 

sector. Therefore, a statement under 

section 202 of the Unfunded Mandates 

Reform Act of 1995 is not required. 

Consultation and Coordination with 

Indian Tribal Governments 

This rule does not have tribal 

implications and thus no further action 

is required under Executive Order 

13175. 

Energy Supply 

The Final Rule is not a significant 

energy action for purposes of Executive 

Order 13211, Actions Concerning 

Regulations that Significantly Affect 

Supply (May 18, 2001). 

List of Subjects in 7 CFR Part 3403 

Small Business Innovation Research, 

Small Business, Research, Research and 

Development. 

■ For the reasons stated in the preamble, 

CSREES revises 7 CFR part 3403 to read 

as follows: 

PART 3403—SMALL BUSINESS 

INNOVATION RESEARCH GRANTS 

PROGRAM 

Subpart A—General Information 

Sec. 

3403.1 Applicability of regulations. 

3403.2 Definitions. 

3403.3 Eligibility requirements. 

Subpart B—Program Description 

3403.4 Three-phase program. 

Subpart C—Preparation of Proposals 

3403.5 Program solicitation. 

3403.6 Content of proposals. 

3403.7 Proposal format for phase I 

applications. 

3403.8 Proposal format for phase II 

applications. 

Subpart D—Submission and Evaluation of 

Proposals 

3403.9 Submission of proposals. 

3403.10 Proposal review. 

3403.11 Availability of information. 

Subpart E—Supplementary Information 

3403.12 Terms and conditions of grant 

awards. 

3403.13 Notice of grant awards. 

3403.14 Use of funds; changes. 

3403.15 Other Federal statutes and 

regulations that apply. 

3404.16 Other considerations. 

Authority: 15 U.S.C. 638. 


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20704 Federal Register / Vol. 72, No. 80 / Thursday, April 26, 2007 / Rules and Regulations 

Subpart A—General Information 

§ 3403.1 Applicability of regulations. 

(a) The regulations of this part apply 

to small business innovation research 

grants awarded under the general 

authority of section 630 of the Act 

making appropriations for Agriculture, 

Rural Development, and Related 

Agencies’ programs for fiscal year 

ending 1987, and for other purposes as 

made applicable by section 101(a) of 

Pub. L. 99–591, 100 Stat. 3341, and the 

provisions of the Small Business 

Innovation Development Act of 1982, as 

amended (15 U.S.C. 638), and the Small 

Business Innovation Research Program 

Reauthorization Act of 2000, Pub. L. 

106–554, which extends the SBIR 

Program through September 30, 2008. 

The Small Business Innovation 

Development Act of 1982, as amended, 

mandates that each Federal agency with 

an annual extramural budget for 

research or research and development in 

excess of $100 million participate in a 

Small Business Innovation Research 

(SBIR) program by reserving a statutory 

percentage of its annual extramural 

budget for award to small business 

concerns for research or research and 

development in order to stimulate 

technological innovation, use small 

business to meet Federal research and 

development needs, increase private 

sector commercialization of innovations 

derived from Federal research and 

development, and foster and encourage 

the participation of socially and 

economically disadvantaged small 

business concerns and women-owned 

small business concerns in 

technological innovation. The 

Department will participate in this 

program through the issuance of 

competitive research grants which will 

be administered by the Office of 

Extramural Programs, CSREES. 

(b) The regulations of this part do not 

apply to research grants awarded by the 

Department under any other authority. 

§ 3403.2 Definitions. 

As used in this part: 

Ad hoc reviewers means experts or 

consultants, qualified by training and 

experience in particular scientific or 

technical fields to render expert advice 

on the scientific technical merit of the 

grant applications in those fields, who 

review on an individual basis one or 

several of the eligible proposals 

submitted to this program in their area 

of expertise and who submit to the 

Department written evaluations of such 

proposals. 

Applicant is the organizational entity 

that, at the time of award, will qualify 

as a small business concern and that 

submits a grant application for a 

funding agreement under the SBIR 

Program. 

Authorized departmental officer 

(ADO) means the Secretary or any 

employee of the Department who has 

the authority to issue or modify grant 

instruments on behalf of the Secretary. 

The ADO is also referred to as the 

Funding Agreement Officer. 

Authorized organizational 

representative (AOR) means the 

president, director, or chief executive 

officer or other designated official of the 

applicant organization who has the 

authority to commit the resources of the 

organization. 

Budget Period means the interval of 

time into which the project period is 

divided for budgetary and reporting 

purposes. 

Commercialization is the process of 

developing marketable products or 

services and producing and delivering 

products or services for sale (whether by 

the originating party or by others) to 

Government or commercial markets. 

CSREES means the Cooperative State 

Research, Education and Extension 

Service. 

Department means the U.S. 

Department of Agriculture. 

Essentially equivalent work occurs 

when: 

(1) Substantially the same research is 

proposed for funding in more than one 

grant application submitted to the same 

Federal agency; 

(2) Substantially the same research is 

submitted to two or more different 

Federal agencies for review and funding 

consideration; or 

(3) A specific research objective and 

the research design for accomplishing 

an objective are the same or closely 

related in two or more proposals or 

awards, regardless of the funding 

source. 

Funding agreement is any contract, 

grant, or cooperative agreement entered 

into between any Federal agency and 

any small business concern for the 

performance of experimental, 

developmental, or research work, 

including products or services funded 

in whole or in part by the Federal 

Government. 

A grant is a financial assistance 

mechanism providing money, property, 

or both to an eligible entity to carry out 

the approved project or activity, and 

substantial programmatic involvement 

by Government is not anticipated. 

Grantee means the small business 

concern designated in the grant award 

document as the responsible legal entity 

to whom the grant is awarded under this 

part. 

Innovation is something new or 

improved, having marketable potential 

including: 

(1) Development of new technologies; 

(2) Refinement of existing 

technologies; or 

(3) Development of new applications 

for existing technologies. 

Intellectual property means the 

separate and distinct types of intangible 

property that are referred to collectively 

as ‘‘intellectual property,’’ including but 

not limited to: Patents, trademarks, 

copyrights, trade secrets, SBIR technical 

data (as defined in this section), ideas, 

designs, know-how, business, technical 

and research methods, other types of 

intangible business assets, and all types 

of intangible assets either proposed or 

generated by a small business concern 

as a result of its participation in the 

SBIR Program. 

Joint venture is an association of 

concerns with interests in any degree or 

proportion by way of contract, express 

or implied, consorting to engage in and 

carry out a single specific business 

venture for joint profit, for which 

purpose they combine their efforts, 

property, money, skill, or knowledge, 

but not on a continuing or permanent 

basis for conducting business generally. 

A joint venture is viewed as a business 

entity in determining power to control 

its management. 

Outcomes are the measure of longterm, eventual, program impact. 

Outputs are the measures of near-term 

program impact. 

Peer review group means experts or 

consultants, qualified by training and 

experience in particular scientific or 

technical fields to give expert advice on 

the scientific and technical merit of 

grant applications to those fields, who 

assemble as a group to discuss and 

evaluate all of the eligible proposals 

submitted to this program in their area 

of expertise. 

Principal investigator/project director 

is the one individual designated by the 

applicant to provide the scientific and 

technical direction to a project 

supported by the funding agreement. 

Professional Employer Organization is 

an organization that provides an 

integrated approach to the management 

and administration of the human 

resources and employer risk of its 

clients, by contractually assuming 

substantial employer rights, 

responsibilities, and risk, through the 

establishment and maintenance of an 

employer relationship with the workers 

assigned to its clients. 

Program solicitation is a formal 

request for proposals whereby an agency 

notifies the small business community 

of its research or research and 


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development needs and interests in 

broad and selected areas, as appropriate 

to the agency, and requests proposals 

from small business concerns in 

response to these needs and interests. 

Project period means the total length 

of time that is approved by the 

Department for conducting the research 

project as outlined in an approved grant 

application. 

Prototype is a model of something to 

be further developed, which includes 

designs, protocols, questionnaires, 

software, and devices. 

Research or research and 

development (R/R&D) means any 

activity which is: 

(1) A systematic, intensive study 

directed toward greater knowledge or 

understanding of the subject studied; 

(2) A systematic study directed 

specifically toward applying new 

knowledge to meet a recognized need; 

or 

(3) A systematic application of 

knowledge toward the production of 

useful materials, devices, and systems 

or methods, including design, 

development, and improvement of 

prototypes and new processes to meet 

specific requirements. 

Research project grant means the 

award by the Department of funds to a 

grantee to assist in meeting the costs of 

conducting for the benefit of the public 

an identified project which is intended 

and designed to establish, discover, 

elucidate, or confirm information or the 

underlying mechanisms relating to a 

research topic area identified in the 

annual solicitation of applications. 

SBIR Participants are business 

concerns that have received SBIR 

awards or that have submitted SBIR 

proposals/applications. 

SBIR Technical Data is defined as all 

data generated during the performance 

of an SBIR award. 

SBIR Technical Data Rights are the 

rights a small business concern obtains 

in data generated during the 

performance of any SBIR award that an 

awardee delivers to the Government 

during or upon completion of a 

Federally-funded project, and to which 

the government receives a license. 

Small business concern (SBC) means 

a concern that, on the date of award for 

both Phase I and Phase II funding 

agreements: 

(1) Is organized for profit, with a place 

of business located in the United States, 

which operates primarily within the 

United States, or which makes a 

significant contribution to the United 

States economy through the payment of 

taxes or use of American products, 

materials or labor; 

(2) Is in the legal form of an 

individual proprietorship, partnership, 

limited liability company, corporation, 

joint venture, association, trust or 

cooperative, except that where the form 

is a joint venture, there can be no more 

than 49 percent participation by foreign 

business entities in the joint venture; 

(3) Is at least 51 percent owned and 

controlled by one or more individuals 

who are citizens of, or permanent 

resident aliens in, the United States, 

except in the case of a joint venture, 

where each entity in the venture must 

be 51 percent owned and controlled by 

one or more individuals who are 

citizens of, or permanent resident aliens 

in the United States; and 

(4) Has, including its affiliates, not 

more than 500 employees. The term 

‘‘affiliates’’ is defined in greater detail in 

13 CFR 121.103. The term ‘‘number of 

employees’’ is defined in 13 CFR 

121.106. 

Socially and economically 

disadvantaged small business concern 

is defined in 13 CFR part 124–8(A) 

Business Development/Small 

Disadvantaged Business Status 

Determinations, § 124.103 (Who is 

socially disadvantaged?) and § 124.104 

(Who is economically disadvantaged?). 

United States means the 50 states, the 

territories and possessions of the 

Federal Government, the 

Commonwealth of Puerto Rico, the 

District of Columbia, the Republic of the 

Marshall Islands, the Federated States of 

Micronesia, and the Republic of Palau. 

Women-owned small business 

concern means a small business concern 

that is at least 51 percent owned by one 

or more women, or in the case of any 

publicly owned business, at least 51 

percent of the stock is owned by 

women, and women control the 

management and daily business 

operations. 

§ 3403.3 Eligibility requirements. 

(a) Eligibility of organization. (1) To 

receive SBIR funds, each awardee of a 

SBIR Phase I or Phase II must qualify as 

a small business concern. 

(2) For Phase I, a minimum of twothirds of the research or analytical 

effort, as measured by the budget, must 

be performed by the awardee. 

Occasionally, deviations from this 

requirement may occur, and must be 

approved in writing by the ADO after 

consultation with the agency SBIR 

National Program Leader. 

(3) For Phase II, a minimum of onehalf of the research or analytical effort, 

as measured by the budget, must be 

performed by the awardee. 

Occasionally, deviations from this 

requirement may occur, and must be 

approved in writing by the ADO after 

consultation with the agency SBIR 

National Program Leader. 

(4) For both Phase I and Phase II, the 

primary employment of the principal 

investigator must be with the SBC at the 

time of award and during the conduct 

of the proposed project. Primary 

employment means that more than onehalf of the principal investigator’s time 

is spent in the employ of the SBC. This 

precludes full-time employment with 

another organization. Occasionally, 

deviations from this requirement may 

occur, and must be approved in writing 

by the ADO after consultation with the 

agency SBIR National Program Leader. 

Further, an SBC may replace the 

principal investigator on an SBIR Phase 

I or Phase II award, subject to approval 

in writing by the ADO after consultation 

with the SBIR National Program Leader. 

For purposes of the SBIR Program, 

personnel obtained through a 

Professional Employer Organization or 

other similar personnel leasing 

company must be considered employees 

of the awardee. This is consistent with 

SBA’s size regulations, 13 CFR 

121.106—Small Business Size 

Regulations. 

(5) For both Phase I and Phase II, the 

R/R&D must be performed in the United 

States. However, based on a rare and 

unique circumstance, ADO approval 

may be granted to perform a particular 

portion of the research or research and 

development work outside of the United 

States, for example, if a supply of 

material or other item or project 

requirement is not available in the 

United States. The ADO, after 

consultation with the agency SBIR 

National Program Leader, must approve 

each such specific condition in writing. 

(b) [Reserved]. 

Subpart B—Program Description 

§ 3403.4 Three-phase program. 

The Small Business Innovation 

Research Grants Program is carried out 

in three separate phases described in 

this section. The first two phases are 

designed to assist USDA in meeting its 

research or research and development 

objectives and will be supported with 

SBIR Program funds. The purpose of the 

third phase is to pursue the commercial 

applications or objectives of the 

research carried out in Phases I and II 

through the use of private or Federal 

non-SBIR funds. 

(a) Phase I. Phase I involves a 

solicitation of grant applications 

(hereinafter referred to as proposals) to 

conduct feasibility-related experimental 

research and development related to 

described agency requirements. These 


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requirements, as defined by agency 

topics contained in the solicitation, may 

be general or narrow in scope, 

depending on USDA needs. The object 

of this phase is to determine the 

scientific and technical merit and 

feasibility of the proposed effort and the 

quality of performance of the small 

business concern with a relatively small 

agency investment before consideration 

of further Federal support in Phase II. 

(b) Phase II is the principal research 

or research and development effort in 

which the results from Phase I are 

expanded upon and further pursued, 

normally for a period not to exceed 24 

months. Only SBIR awardees in Phase I 

are eligible to participate in Phase II. 

This includes those awardees identified 

via a ‘‘novated’’ or ‘‘successor in 

interest’’ or similarly-revised funding 

agreement, or those that have 

reorganized with the same key staff, 

regardless of whether they have been 

assigned a different tax identification 

number. For each Phase I project 

funded, the awardee may apply for a 

Phase II award only once. Phase I 

awardees who for valid reasons cannot 

apply for Phase II support in the next 

fiscal year funding cycle may normally 

apply for support no later than the 

second fiscal year funding cycle. 

(c) Phase III refers to work that 

derives from, extends, or logically 

concludes effort(s) performed under 

prior SBIR funding agreements, but is 

funded by sources other than the SBIR 

Program. Phase III work is typically 

oriented towards commercialization of 

SBIR research or technology. This 

portion of a project is funded by a nonSBIR source through the use of a followon funding commitment. A follow-on 

funding commitment is an agreement 

between the small business concern and 

a provider of the follow-on capital for a 

specified amount of funds to be made 

available to the small business concern 

for future development of their effort 

upon achieving certain mutually agreed 

upon technical objectives. 

Subpart C—Preparation of Proposals 

§ 3403.5 Program solicitation. 

(a) Phase I. A program solicitation 

requesting Phase I proposals will be 

prepared each fiscal year in which 

funds are made available for this 

purpose. This solicitation will contain 

information sufficient to enable eligible 

applicants to prepare grant proposals 

and will include descriptions of specific 

research topic areas which the 

Department will support during the 

fiscal year involved. A notice of 

solicitation, and the entire contents of 

the program solicitation will be 

published, at a minimum, on the 

agency’s Web site. 

(b) Phase II. For each fiscal year in 

which funds are made available for this 

purpose, the Department will send 

correspondence requesting Phase II 

proposals from the Phase I grantees 

eligible to apply for Phase II funding in 

that fiscal year. The correspondence 

will contain information sufficient to 

enable eligible applicants to prepare 

grant proposals. 

§ 3403.6 Content of proposals. 

(a) The proposed research must be 

responsive to one of the USDA program 

interests stated in the research topic 

descriptions of the program solicitation. 

(b) Proposals must cover only 

scientific/technological research 

activities. A small business concern 

must not propose product development, 

technical assistance, demonstration 

projects, classified research, or patent 

applications. Many of the research 

projects supported by the SBIR program 

lead to the development of new 

products based upon the research 

results obtained during the project. 

However, projects that seek funding 

solely for product development where 

no research is involved, i.e., funds are 

needed to permit the development of a 

project based on previously completed 

research, will not be accepted. 

Literature surveys should be conducted 

prior to preparing proposals for 

submission and must not be proposed as 

a part of the SBIR Phase I or Phase II 

effort. Proposals principally for the 

development of proven concepts toward 

commercialization or for market 

research should not be submitted since 

such efforts are considered the 

responsibility of the private sector and 

therefore are not supported by USDA. 

(c) A proposal must be limited to only 

one topic. The same proposal may not 

be submitted under more than one topic 

as defined in the solicitation. However, 

an organization may submit separate 

proposals on the same topic. Where 

similar research is discussed under 

more than one topic, the proposer 

should choose that topic whose 

description appears most relevant to the 

proposer’s research concept. USDA will 

not consider funding duplicate 

(essentially equivalent work) proposals. 

In addition, essentially equivalent work 

funded by another entity will be 

returned to the applicant without 

review. 

§ 3403.7 Proposal format for phase I 

applications. 

(a) The following items relate to Phase 

I applications. Further instructions or 

descriptions for these items as well as 

any additional items to be included will 

be provided in the annual solicitation, 

as necessary. 

(1) SF–424 R&R Cover. Applicants 

must submit basic proposal 

identification information on the first 

page of the proposals. Applicants must 

also certify on the first page of the 

proposals that they meet the definition 

of a small business concern as stated in 

the solicitation, and must certify as to 

whether or not they qualify as socially 

and economically disadvantaged small 

business concerns, or women-owned 

small business concerns. 

(2) Project Summary/Abstract. The 

technical abstract should include a brief 

description of the problem or 

opportunity, project objectives, and a 

description of the effort. Anticipated 

results and potential commercial 

applications of the proposed research 

also should be summarized in the space 

provided. Keywords should characterize 

the most important aspects of the 

project. The project summary of 

successful proposals may be published 

by USDA and therefore should not 

contain proprietary information. 

(3) Project Narrative. The main body 

of the proposal should include: 

(i) Identification and significance of 

the problem or opportunity. 

(ii) Background and rationale. 

(iii) Relationship with future research 

or research and development. 

(iv) Phase I technical objectives. 

(v) Phase I work plan. 

(vi) Related research or research and 

development. 

(vii) References. For each reference 

cited in the Proposal, provide the 

complete name for each author, the date 

of publication, the full title of the 

article, name of the journal, etc. 

(4) Key personnel and bibliography. 

Identify key personnel involved in the 

effort, including information on their 

directly related education and 

experience. For each key person, 

provide a chronological list of the most 

recent representative publications in the 

topic area. 

(5) Facilities and equipment. Describe 

the types, location, and availability of 

instrumentation and physical facilities 

necessary to carry out the work 

proposed. Items of equipment to be 

purchased must be fully justified under 

this section. 

(6) Outside services. Involvement of 

university or other consultants in the 

planning and research stages of the 

project as consultants or through 

subcontracting arrangements is 

permitted and may be particularly 

helpful to small business concerns that 

have not previously received Federal 

research awards. If such involvement is 


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intended, it should be described in 

detail. 

(7) Satisfying the public interest. 

Specify how the proposed research will 

satisfy one or more of the following 

objectives: 

(i) Develops sustainable agriculture 

production systems; 

(ii) Protects natural resources and the 

environment; 

(iii) Creates a safe, nutritious and 

affordable food supply; 

(iv) Develops value-added food and 

non-food products from agricultural 

materials; 

(v) Enhances global competitiveness; 

and 

(vi) Enhances economic opportunity 

and quality of life, especially for people 

in rural areas. 

(8) Potential post applications. Briefly 

describe the commercialization 

potential of the proposed research. 

Indicate whether and by what means 

there appears to be a potential for the 

Federal Government to use the proposed 

research. Include a brief description of 

the proposing company (e.g., date 

founded, number of employees) and its 

field of interest. What are the major 

competitive products in this field, and 

what advantages will the proposed 

research have over existing technology 

(in application, performance, technique, 

efficiency or cost)? 

(9) Similar Proposals or Awards. (i) 

WARNING—While it is permissible 

with proposal notification to submit 

identical proposals containing a 

significant amount of essentially 

equivalent work for consideration under 

numerous Federal program solicitations, 

it is unlawful to enter into funding 

agreements requiring essentially 

equivalent work. If there is any question 

concerning this, it must be disclosed to 

the soliciting agency or agencies before 

award. If an applicant elects to submit 

identical proposals or proposals 

containing a significant amount of 

essentially equivalent work under other 

Federal program solicitations, a 

statement must be included in each 

such proposal indicating: 

(A) Name and address of the 

agency(ies) to which the proposal was 

submitted, or will be submitted, or from 

which an award is expected or has been 

received. 

(B) Date of actual or anticipated 

proposal submission or date of award, 

as appropriate. 

(C) Title of proposal or award, 

identifying number assigned to the 

solicitation or proposal by the agency 

involved, and the date the proposal(s) 

were submitted or the award was 

received. 

(D) Applicable research topic area for 

each proposal submitted or award 

received. 

(E) Titles of research projects. 

(F) Name and title of principal 

investigator for each proposal submitted 

or award received. 

(ii) USDA will not make awards that 

duplicate research funded (or to be 

funded) by other Federal agencies. 

(10) Cost breakdown on proposal 

budget. Complete a budget form for the 

phase under which you are currently 

applying. (An applicant for Phase I 

funding should not submit both Phase I 

and Phase II budgets.) A budget 

narrative with supporting detail for each 

budget category must be included. 

(11) Special Considerations. If the 

proposed research will include 

laboratory animals or human subjects at 

risk, the applicant may be required to 

have the research plan reviewed and 

approved by an Institutional Animal 

Care and Use Committee (IACUC) or 

Institutional Review Board (IRB) prior to 

commencing actual substantive work. If 

such approval is required, USDA may 

not release funds for the award until 

proper documentation is submitted and 

accepted by USDA. It is suggested that 

applicants contact local universities, 

colleges, or nonprofit research 

organizations which have established 

reviewing mechanisms to have this 

service performed. 

(12) Proprietary information. (i) If 

proprietary information is provided by 

an applicant in a proposal which 

constitutes a trade secret, proprietary 

commercial or financial information, 

confidential personal information, or 

data affecting the national security, it 

will be treated in confidence to the 

extent permitted by law. This 

information must be clearly marked by 

the applicant with the term 

‘‘confidential proprietary information’’

and the following legend must appear 

on the title page of the proposal: ‘‘These 

data shall not be disclosed outside the 

Government and shall not be 

duplicated, used, or disclosed in whole 

or in part for any purpose other than 

evaluation of this proposal. If a funding 

agreement is awarded to this applicant 

as a result of or in connection with the 

submission of these data, the 

Government shall have the right to 

duplicate, use, or disclose the data to 

the extent provided in the funding 

agreement and pursuant to applicable 

law. This restriction does not limit the 

Government’s right to use information 

contained in the data if it is obtained 

from another source without restriction. 

The data subject to this restriction are 

contained on pages ll of this 

proposal.’’

(ii) USDA, by law, is required to make 

the final decision as to whether the 

information is required to be kept in 

confidence. Information contained in 

unsuccessful proposals will remain the 

property of the applicant. However, 

USDA will retain for three years one 

copy of all proposals received; extra 

copies will be destroyed. Public release 

of information for any proposal 

submitted will be subject to existing 

statutory and regulatory requirements. 

Any proposal which is funded will be 

considered an integral part of the award 

and normally will be made available to 

the public upon request through the 

Freedom of Information Act, except for 

designated proprietary information. 

(iii) The inclusion of proprietary 

information is discouraged unless it is 

necessary for the proper evaluation of 

the proposal. If proprietary information 

is to be included, it should be limited, 

set apart from other text on a separate 

page, and keyed to the text by numbers. 

It should be confined to a few critical 

technical items which, if disclosed, 

could jeopardize the obtaining of foreign 

or domestic patents. Trade secrets, 

salaries, or other information which 

could jeopardize commercial 

competitiveness should be similarly 

keyed and presented on a separate page. 

Proposals or reports which attempt to 

restrict dissemination of large amounts 

of information may be found 

unacceptable by USDA. 

(13) Rights in data developed under 

SBIR funding agreement. The legend (or 

statements) in the SBIR datarights 

clause included in the SBIR award must 

be affixed to any submissions of 

technical data. Where such legend is 

affixed, rights in technical data, 

including software developed under the 

terms of any funding agreement 

resulting from a proposal submitted in 

response to the program solicitation 

shall remain with the grantee. The 

Government may not use, modify, 

reproduce, release, perform, display, or 

disclose technical data or computer 

software marked with this legend for 4 

years. After expiration of the 4-year 

period, the Government has a royaltyfree license to use, and to authorize 

others to use on its behalf, these data for 

Government purposes, and is relieved of 

all disclosure prohibitions and assumes 

no liability for unauthorized use of 

these data by third parties, except that 

any such data that is also protected and 

referenced under a subsequent SBIR 

award shall remain protected through 

the protection of that subsequent SBIR 

award. 

(14) Patents and Inventions. 

Allocation of rights to inventions shall 

be in accordance with 35 U.S.C. 202 


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through 206 and the Department of 

Commerce implementing regulations 

entitled ‘‘Rights to Inventions Made by 

Nonprofit Organizations and Small 

Business Firms under Government 

Grants, Contracts and Cooperative 

Agreements’’ at 37 CFR part 401. These 

regulations provide that small 

businesses normally may retain the 

principal worldwide patent rights to any 

invention developed with USDA 

support. USDA receives a royalty-free 

license for Federal Government use, 

reserves the right to require the patentee 

to license others in certain 

circumstances, and requires that anyone 

exclusively licensed to sell the 

invention in the United States must 

normally manufacture it domestically. 

To the extent authorized by 35 U.S.C. 

205, USDA will not make public any 

information disclosing a USDAsupported invention for a four-year 

period. SBIR awardees must report 

inventions to the awarding agency 

within two months of the inventor’s 

report to the awardee. The reporting of 

inventions shall be made through 

submission to Interagency Edison as 

specified in the terms and conditions of 

the grant. 

(15) Organizational management 

information. Before the award of an 

SBIR funding agreement, USDA requires 

the submission of certain organizational 

management, personnel, and financial 

information to assure responsibility of 

the applicant. This information is not 

required unless a project is 

recommended for funding, and then it is 

submitted on a one-time basis only. 

However, new information should be 

submitted if a small business concern 

has undergone significant changes in 

organization, personnel, finance or 

policies, including those relating to civil 

rights. 

(16) Documentation of 

commercialization record of firms with 

multiple phase II awards. A small 

business concern submitting a proposal 

for a Phase I award that has received 

more than 15 Phase II SBIR awards 

during the preceding five fiscal years 

must document the extent to which it 

was able to secure Phase III funding to 

develop concepts resulting from 

previous Phase II SBIR awards. 

(b) [Reserved]. 

§ 3403.8 Proposal format for phase II 

applications. 

(a) The following items relate to Phase 

II applications. Further instructions or 

descriptions for these items as well as 

any additional items to be included will 

be identified in the annual program 

solicitation as necessary. See § 3403.9. 

(1) SF–424 R&R cover sheet. Follow 

instructions found in § 3403.7(a)(1). 

(2) Project summary. Follow 

instructions found at § 3403.7(a)(2). 

(3) Phase I results. The proposal 

should contain an extensive section that 

lists Phase I objectives and makes 

detailed presentation of the Phase I 

results. This section should establish 

the degree to which Phase I objectives 

were met and feasibility of the proposed 

research project was established. 

(4) Proposal. Since Phase II is the 

principal research and development 

effort, proposals should be more 

comprehensive than those submitted 

under Phase I. However, the outline and 

information contained in § 3403.7(a)(3)–

(9) and § 3403.7(a)(11)–(14) should be 

followed, tailoring the information 

requested to the Phase II project. 

(5) Cost breakdown on proposal 

budget. For Phase II, a detailed budget 

is required for each year of requested 

support. In addition, a summary budget 

is required detailing the requested 

support for the overall project period. A 

budget narrative, with supporting 

budget detail for each budget category 

must be included. 

(6) Organizational management 

information. Each Phase II awardee will 

be asked to submit an updated 

statement of financial condition (such as 

the latest audit report, financial 

statements or balance sheet) and report 

any changes in management or 

principals. 

(7) Commercialization Plan. A 

succinct commercialization plan must 

be included in each SBIR Phase II 

proposal moving toward 

commercialization. Elements of a 

commercialization plan may include the 

following: 

(i) Company information. Focused 

objectives/core competencies; size; 

specialization area(s); products with 

significant sales; and history of previous 

Federal and non-Federal funding; 

regulatory experience; and subsequent 

commercialization. 

(ii) Customer and competition. Clear 

description of key technology 

objectives, current competition, and 

advantages compared to competing 

products or services; description of 

hurdles to acceptance of the innovation. 

(iii) Market. Milestone, target dates, 

analyses of market size, and estimated 

market share after first year sales and 

after five years; explanation of plan to 

obtain market share. 

(iv) Intellectual property. Patent 

status, technology lead, trade secrets or 

other demonstration of a plan to achieve 

sufficient protection to realize the 

commercialization state and attain at 

least a temporary competitive 

advantage. 

(v) Financing. Plans for securing 

necessary funding in Phase III. 

(vi) Assistance and mentoring. Plans 

for securing needed technical or 

business assistance through mentoring, 

partnering, or through arrangements 

with state assistance programs, Small 

Business Development Centers, 

Federally-funded research laboratories, 

manufacturing extension Partnership 

Centers, or other assistance providers. 

(8) Data Collection. Each Phase II 

applicant will be required to provide 

information to the Tech-Net Database 

System (http://technet.sba.gov) per 

OMB No. 3245–03356. The following 

are examples of the data to be entered 

by applicants into Tech-Net: 

(i) Any business concern or subsidiary 

established for the commercial 

application of a product or service for 

which an SBIR award is made; 

(ii) Revenue from the sale of new 

products or services resulting from the 

research conducted under each Phase II 

award; 

(iii) Additional investment from any 

source, other than Phase I or Phase II 

awards, to further the research and 

development conducted under each 

Phase II award; and 

(iv) Updates to information in the 

Tech-Net database for any prior Phase II 

award received by the small business 

concern. 

(b) [Reserved]. 

Subpart D—Submission and 

Evaluation of Proposals 

§ 3403.9 Submission of proposals. 

The SBIR program solicitation for 

Phase I proposals and the 

correspondence requesting Phase II 

proposals will provide the deadline date 

for submitting proposals, and 

instructions for submitting the proposal 

to CSREES for funding consideration. 

§ 3403.10 Proposal review. 

(a) The receipt of all proposals will be 

acknowledged. 

(b) All Phase I and II proposals will 

be evaluated and judged on a 

competitive basis. Proposals will be 

initially screened to determine 

responsiveness. Proposals passing this 

initial screening will be technically 

evaluated by scientists to determine the 

most promising technical and scientific 

approaches. Each proposal will be 

judged on its own merit. USDA is under 

no obligation to fund any proposal or 

any specific number of proposals in a 

given topic. It also may elect to fund 

several or none of the proposed 

approaches to the same topic or 

subtopic. 


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(c) Phase I and II proposal evaluation 

criteria will be published in the 

‘‘Method of Selection and Evaluation 

Criteria’’ section of the program 

solicitation. 

(d) External peer reviewers may be 

used during the technical evaluation 

stage of this process. Selections will be 

made from among recognized specialists 

who are uniquely qualified by training 

and experience in their respective fields 

to render expert advice on the merit of 

proposals received. It is anticipated that 

such experts will include those located 

in universities, government, and 

nonprofit research organizations. If 

possible, USDA intends that peer review 

groups shall be balanced with minority 

and female representation and with an 

equitable age distribution. 

(e) Reviewers will base their 

conclusions and recommendations on 

information contained in the Phase I or 

Phase II proposal. It cannot be assumed 

that reviewers are acquainted with any 

experiments referred to within a 

proposal, with key individuals, or with 

the firm itself. Therefore, the proposals 

should be self-contained and written 

with the care and thoroughness 

accorded papers for publication. 

(f) Final decisions will be made by 

USDA based upon the rating assigned 

by reviewers in consideration of the 

technical and commercial potential of 

the application, duplication of research, 

any critical USDA requirements, 

resubmission and budget limitation. In 

the event that two or more proposals are 

of approximately equal merit, the 

existence of a cooperative research and 

development agreement (CRADA) with 

a USDA laboratory will be an important 

consideration. The existence of a followon funding commitment for continued 

development in Phase III will also be an 

important consideration. The value of 

any commitment will depend upon the 

degree of financial commitment made 

by investors, with the maximum value 

resulting from a signed agreement with 

reasonable terms for an amount at least 

equal to funding requested from USDA 

in Phase II. 

§ 3403.11 Availability of information. 

Information regarding the peer review 

process will be made available to the 

extent permitted under the Freedom of 

Information Act (5 U.S.C. 552), the 

Privacy Act (5 U.S.C. 552a), the SBIR 

Policy Directive, and implementing 

Departmental and other Federal 

regulations. Implementing Departmental 

regulations are found at 7 CFR part 1. 

Subpart E—Supplementary 

Information 

§ 3403.12 Terms and conditions of grant 

awards. 

Within the limit of funds available for 

such purposes, the Authorized 

Departmental Officer shall make 

research project grants to those 

responsible, eligible applicants whose 

proposals are judged most meritorious 

in the announced program areas under 

the evaluation criteria and procedures 

set forth in the annual program 

solicitation. The beginning of the project 

period shall be no later than September 

30 of the Federal fiscal year in which 

the project is approved for support. All 

funds granted under this part shall be 

expended solely for the purpose for 

which funds are granted in accordance 

with the approved application and 

budget, the regulations of this part, the 

terms and conditions of award, the 

Federal Acquisition Regulations (48 

CFR part 31), and the Department’s 

Uniform Federal Assistance Regulations 

(7 CFR part 3015). 

§ 3403.13 Notice of grant awards. 

(a) The grant award document may 

include the following: 

(1) Legal name and address of 

performing organization or institution; 

(2) Title of project; 

(3) Name and institution of Project 

Director’s chosen to direct and control 

approved activities; 

(4) Identifying grant number assigned 

by the Department; 

(5) Project period, specifying the 

amount of time the Department intends 

to support the project; 

(6) Total amount of Departmental 

financial assistance approved for the 

project period; 

(7) Legal authority(ies) under which 

the grant is awarded; 

(8) Appropriate Catalog of Federal 

Domestic Assistance (CFDA) number; 

(9) Applicable award terms and 

conditions; 

(10) Approved budget plan for 

categorizing allocable project funds to 

accomplish the stated purpose of the 

grant award; and 

(11) Other information or provisions 

deemed necessary by CSREES to carry 

out its respective granting activities or 

to accomplish the purpose of a 

particular grant. 

(b) [Reserved]. 

§ 3403.14 Use of funds; changes. 

(a) Delegation of fiscal responsibility. 

Unless the terms and conditions of the 

grant state otherwise, the grantee may 

not in whole or in part delegate or 

transfer to another person, institution, 

or organization the responsibility for use 

or expenditure of grant funds. 

(b) Changes in Project Plans. (1) The 

permissible changes by the grantee, 

Project Director, or other key project 

personnel in the approved project grant 

shall be limited to changes in 

methodology, techniques, or other 

similar aspects of the project to expedite 

achievement of the project’s approved 

goals. If the grantee or the Project 

Director (PD) is uncertain as to whether 

a change complies with this provision, 

the question must be referred to the 

Authorized Departmental Officer (ADO) 

for a final determination. The signatory 

of the award document is the ADO, not 

the program contact. 

(2) Changes in approved goals or 

objectives shall be requested by the 

grantee and, in consultation with the 

CSREES SBIR National Program Leader, 

approved in writing by the ADO prior 

to effecting such changes. In no event 

shall requests for such changes be 

approved which are outside the scope of 

the original approved project. 

(3) Changes in approved project 

leadership or the replacement or 

reassignment of other key project 

personnel shall be requested by the 

grantee and, in consultation with the 

CSREES SBIR National Program Leader, 

approved in writing by the ADO prior 

to effecting such changes. 

(4) Transfers of actual performance of 

the substantive programmatic work in 

whole or in part and provisions for 

payment of funds, whether or not 

Federal funds are involved, shall be 

requested by the grantee and, in 

consultation with the CSREES SBIR 

National Program Leader, approved in 

writing by the ADO prior to effecting 

such transfers, unless prescribed 

otherwise in the terms and conditions of 

the grant. 

(c) Changes in Project Period. The 

project period may be extended by 

CSREES without additional financial 

support, for such additional period(s) as 

the ADO determines may be necessary 

to complete or fulfill the purposes of an 

approved project provided Federal 

funds remain. Any extension of time 

shall be conditioned upon prior request 

by the grantee and approval in writing 

by the ADO unless otherwise noted in 

the award terms and conditions. In such 

cases the extension will not normally 

exceed 12 months. The Phase I award 

will still be limited to the approved 

award amount, and the submission of a 

Phase II proposal will normally be 

delayed by no more than one year. The 

extension allows the grantee to continue 

expending the remaining Federal funds 

for the intended purpose over the 

extension period. In instances where no 


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Federal funds remain, it is unnecessary 

to approve an extension since the 

purpose of the extension is to continue 

using Federal funds. The grantee may 

opt to continue the Phase I project after 

the grant’s termination and closeout, 

however, the grantee would have to do 

so without additional Federal funds. In 

the latter case, no communication with 

USDA is necessary. 

(d) Changes in approved budget. 

Changes in an approved budget must be 

requested by the grantee and approved 

in writing by the ADO prior to 

instituting such changes if the revision 

will involve transfers or expenditures of 

amounts requiring prior approval as set 

forth in the applicable Federal cost 

principles, Departmental regulations, or 

grant award. 

(e) Use of Change of Name and 

Novation Agreement. (1) Occasionally, 

after an award has been made the name 

of the Awardee may change. CSREES 

requires execution of a ‘‘Change of 

Name Agreement’’ in such instances. 

The specific circumstances of each 

situation will determine which kind of 

agreement should be executed. This 

decision will be determined by the 

ADO. 

(i) A Change of Name Agreement is a 

legal instrument executed by the 

Awardee and the Government that 

recognizes a change of the legal name of 

the Awardee without disturbing the 

original rights and obligations of the 

parties. If only a change of the 

Awardee’s name is involved and the 

Government’s and Awardee’s rights and 

obligations remain unaffected, the 

parties should execute an agreement to 

reflect the name change. 

(ii) In order to execute the actual 

Change of Name Agreement with USDA, 

the Awardee is required to submit the 

following information: 

(A) The document effecting the name 

change, authenticated by a proper 

official of the State having jurisdiction; 

(B) The opinion of the Grantee’s legal 

counsel stating that the change of name 

was properly effected under applicable 

law and showing the effective date; 

(C) A list of all affected awards 

between the Grantee and CSREES. 

(iii) When CSREES is notified that a 

change of name has taken place, the 

ADO will request the aforementioned 

information from the Grantee. Upon 

receipt and review of this information, 

parties will properly execute a Change 

of Name Agreement and the appropriate 

changes will be made to the Agency’s 

records. The following suggested format 

for an agreement may be adapted for 

specific cases: 

CHANGE OF NAME AGREEMENT 

THE ABC CORPORATION (Grantee), a 

corporation duly organized and existing 

under the laws of llllll (insert State), 

and the COOPERATIVE STATE RESEARCH, 

EDUCATION, AND EXTENSION SERVICE, 

USDA (Government) enter into this 

Agreement as of llllll (insert date 

when the change of name became effective 

under applicable State law). 

(a) THE PARTIES AGREE TO THE 

FOLLOWING FACTS: 

1. The Government, represented by the 

ADO, has entered into certain awards with 

XYZ CORPORATION, namely llllll 

(insert award number or delete ‘‘namely’’ and 

insert ‘‘as shown in the attached list marked 

‘Exhibit A’ and incorporated in this 

Agreement by reference.’’) The term ‘‘the 

awards,’’ as used in this Agreement, means 

the above awards and all other awards, 

including all modifications, made by the 

Government and the Grantee before the 

effective date of this Agreement (whether or 

not performance and payment have been 

completed and releases executed if the 

Government or the Grantee has any 

remaining rights, duties, or obligations under 

these awards.) 

2. The XYZ CORPORATION, by an 

amendment to its certificate of incorporation, 

dated llll, 20ll, has changed its 

corporate name to ABC CORPORATION. 

3. This amendment accomplishes a change 

of corporate name only and all rights and 

obligations of the Government and of the 

Grantee under the awards are unaffected by 

this change. 

4. Documentary evidence of this change of 

corporate name has been filed with the 

Government. 

(b) IN CONSIDERATION OF THESE FACTS, 

THE PARTIES AGREE THAT: 

1. The awards covered by this Agreement 

are amended by substituting the name ‘‘ABC 

CORPORATION’’ for the name ‘‘XYZ 

CORPORATION’’ wherever it appears in the 

awards; and 

2. Each party has executed this Agreement 

as of the day and year first above written. 

COOPERATIVE STATE RESEARCH, 

EDUCATION, AND EXTENSION SERVICE, 

USDA 

BY: lllllllllllllllllll

TITLE: lllllllllllllllll

ABC CORPORATION 

BY: lllllllllllllllllll

TITLE: lllllllllllllllll

CERTIFICATE 

I, llllll, certify that I am the 

Secretary of ABC CORPORATION, that 

llllll , who signed this Agreement for 

this corporation, was then llllll of 

this corporation; and that this Agreement was 

duly signed for and on behalf of this 

corporation by authority of its governing 

body and within the scope of its corporation 

powers. 

WITNESS MY HAND, and the seal of this 

corporation, this lll day of llllll, 

20ll. 

BY: lllllllllllllllllll

(CORPORATE SEAL) 

(2) From time to time the legal entity 

performing the research under the 

award may have to be changed. In such 

instances, USDA will ensure that all 

parties properly execute a Novation 

Agreement (Successor in Interest 

Agreement). 

(i) A Novation Agreement is a legal 

instrument executed by the Grantee 

(transferor), the successor in interest 

(transferee), and the Government by 

which, among other things, the 

transferor guarantees performance of the 

award, the transferee assumes all 

obligations under the award, and the 

Government recognizes the transfer of 

the award and related assets. This 

occurs when the third party’s interest in 

the award arises out of the transfer of all 

the Grantee’s assets or the entire portion 

of the assets involved in performing the 

award. Examples include, but are not 

limited to: the sale of these assets with 

a provision for assuming liabilities; the 

transfer of these assets incident to a 

merger or corporate consolidation; and 

the incorporation of a proprietorship or 

partnership, or the formation of a 

partnership. 

(ii) When a Grantee asks the 

Government to recognize a successor in 

interest, the responsible ADO shall 

obtain the following from the Grantee: 

(A) An authenticated copy of the 

instrument effecting the transfer of 

assets; e.g., bill of sale, certificate of 

merger, contract, deed, agreement, or 

court decree; 

(B) A list of all affected awards; 

(C) A certified copy of each resolution 

of the corporate parties’ boards of 

directors authorizing the transfer of 

assets; 

(D) A certified copy of the minutes of 

each corporate party’s stockholder 

meeting necessary to approve the 

transfer of assets; 

(E) The opinion of legal counsel for 

the transferor and transferee stating that 

the transfer was properly effected under 

applicable law and the effective date of 

transfer; 

(F) An authenticated copy of the 

transferee’s certificate and articles of 

incorporation, if a corporation was 

formed for the purpose of receiving the 

assets involved in performing the 

Government award; 

(G) Evidence of transferee’s capability 

to perform the award; and 

(H) Balance sheets of the transferor 

and transferee as of the dates 

immediately before and after the 

transfer of assets, certified for accuracy 

by independent accountants. 

(iii) The ADO will review the 

Agency’s financial records concerning 


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Federal Register / Vol. 72, No. 80 / Thursday, April 26, 2007 / Rules and Regulations 20711 

the correct cash-on-hand balances held 

by the transferor to ensure that they are 

properly accounted for in the transfer 

process. If recognizing a successor in 

interest to a Government award is 

consistent with the Government’s 

interest, the ADO will prepare a 

Novation Agreement for execution by all 

three parties. The agreement will 

provide that: 

(A) The transferee assumes all the 

transferor’s obligations under the 

award(s); 

(B) The transferor waives all rights 

under the award against the 

Government; 

(C) The transferor guarantees 

performance of the award by the 

transferee (a satisfactory performance 

bond may be accepted instead of the 

guarantee); and 

(D) Nothing in the agreement shall 

relieve the transferor or transferee from 

compliance with any Federal law. 

(E) The following suggested format for 

an agreement may be adapted for 

specific cases: 

NOVATION AGREEMENT (SUCCESSOR IN 

INTEREST AGREEMENT) 

THE ABC CORPORATION (Transferor), a 

corporation duly organized and existing 

under the laws of llllll (insert state) 

with its principal office in llllll 

(insert city); the XYZ CORPORATION 

(Transferee), a corporation duly organized 

and existing under the laws of llllll 

(insert state) with its principal office in 

llllll (insert city); and the 

COOPERATIVE STATE RESEARCH, 

EDUCATION, AND EXTENSION SERVICE, 

USDA (Government) enter into this 

Agreement as of llllll (insert the date 

transfer of assets became effective under 

applicable State law). 

(a) THE PARTIES AGREE TO THE 

FOLLOWING FACTS: 

1. The Government, represented by the 

ADO has entered into certain awards with 

the Transferor, namely: llllll (insert 

award number or delete ‘‘namely’’ and insert 

‘‘as shown in the attached list marked 

‘Exhibit A’ and incorporated in this 

Agreement by reference.’’) The term ‘‘the 

awards,’’ as used in this Agreement, means 

the above awards and all other awards, 

including all modifications, made between 

the Government and Transferor before the 

effective date of this Agreement (whether or 

not performance and payment have been 

completed and releases executed if the 

Government or the Transferor has any 

remaining rights, duties, or obligations under 

these awards.) Included in the term ‘‘award’’

are also all modifications made under the 

terms and conditions of these awards 

between the Government and the Transferor, 

on or after the effective date of this 

Agreement. 

2. As of llllll, 20ll, the 

Transferor has transferred to the Transferee 

all the assets of the Transferor by virtue of 

a llllll (insert terms or legal 

transaction involved) between the Transferor 

and the Transferee. 

3. The Transferee has acquired all the 

assets of the Transferor by virtue of the above 

transfer. 

4. The Transferee has assumed all 

obligations and liabilities of the Transferor 

under the awards by virtue of the above 

transfer. 

5. The Transferee is in a position to fully 

perform all obligations that may exist under 

the awards. 

6. It is consistent with the Government’s 

interest to recognize the Transferee as the 

successor party to the awards. 

7. Evidence of the above transfer has been 

filed with the Government. 

(b) IN CONSIDERATION OF THESE FACTS, 

THE PARTIES AGREE THAT BY THIS 

AGREEMENT: 

1. The Transferor confirms the transfer to 

the Transferee, and waives any claims and 

rights against the Government that it now has 

or may have in the future in connection with 

the awards. 

2. The Transferee agrees to be bound by 

and to perform each award in accordance 

with the conditions contained in the awards. 

The Transferee also assumes all obligations 

and liabilities of, and all claims against, the 

Transferor under the awards as if the 

Transferee were the original party to the 

awards. 

3. The Transferee ratifies all previous 

actions taken by the Transferor with respect 

to the awards, with the same force and effect 

as if the action had been taken by the 

Transferee. 

4. The Government recognizes the 

Transferee as the Transferor’s successor in 

interest in and to the awards. The Transferee 

by this Agreement becomes entitled to all 

rights, titles, and interests of the Transferor 

in and to the awards as if the Transferee were 

the original party to the awards. Following 

the effective date of this Agreement, the term 

Grantee, as used in the awards, shall refer to 

the Transferee. 

5. Except as expressly provided in this 

Agreement, nothing in it shall be construed 

as a waiver of any rights of the Government 

against the Transferor. 

6. All payments and reimbursements 

previously made by the Government to the 

Transferor, and all other previous actions 

taken by the Government under the awards, 

shall be considered to have discharged those 

parts of the Government’s obligations under 

the awards. All payments and 

reimbursements made by the Government 

after the date of this Agreement in the name 

of or to the Transferor shall have the same 

force and effect as if made to the Transferee, 

and shall constitute a complete discharge of 

the Government’s obligations under the 

awards, to the extent of the amounts paid or 

reimbursed. 

7. The Transferor and the Transferee agree 

that the Government is not obligated to pay 

or reimburse either of them for, or otherwise 

give effect to, any costs, taxes, or other 

expenses, or any related increases, directly or 

indirectly arising out of or resulting from the 

transfer or this Agreement, other than those 

that the Government in the absence of this 

transfer or Agreement would have been 

obligated to pay or reimburse under the terms 

of the awards. 

8. The Transferor guarantees payment of all 

liabilities and the performance of all 

obligations that the Transferee (i) assumes 

under this Agreement or (ii) may undertake 

in the future should these awards be 

modified under their terms and conditions. 

The Transferor waives notice of, and 

consents to, any such future modifications. 

9. The awards shall remain in full force 

and effect, except as modified by this 

Agreement. Each party has executed this 

Agreement as of the day and year first above 

written. 

COOPERATIVE STATE RESEARCH, 

EDUCATION AND EXTENSION SERVICE, 

USDA 

BY: lllllllllllllllllll

TITLE: lllllllllllllllll

ABC CORPORATION 

BY: lllllllllllllllllll

TITLE: lllllllllllllllll

XYZ CORPORATION 

BY: lllllllllllllllllll

TITLE: lllllllllllllllll

CERTIFICATE 

I, llllll, certify that I am the 

Secretary of ABC CORPORATION, that 

llllll, who signed this Agreement for 

this corporation, was thenllllll of 

this corporation; and that this Agreement was 

duly signed for and on behalf of this 

corporation by authority of its governing 

body and within the scope of its corporation 

powers. WITNESS MY HAND, and the seal 

of this corporation, this llllllday of 

llllll, 20ll 

BY: lllllllllllllllllll

(CORPORATE SEAL) 

CERTIFICATE 

I, llllll, certify that I am the 

Secretary of XYZ CORPORATION, that 

llllll, who signed this Agreement for 

this corporation, was thenllllll of 

this corporation; and that this Agreement was 

duly signed for and on behalf of this 

corporation by authority of its governing 

body and within the scope of its corporation 

powers. WITNESS MY HAND, and the seal 

of this corporation, this llllllday of 

llllll, 20ll 

BY: lllllllllllllllllll

(CORPORATE SEAL) 

§ 3403.15 Other Federal statues and 

regulations that apply. 

Several other Federal statutes and 

regulations apply to grant proposals 

considered for review or to research 

project grants awarded under this part. 

These include but are not limited to: 

7 CFR part 1, subpart A—USDA 

implementation of the Freedom of 

Information Act. 

7 CFR part 1c—USDA 

implementation of the Federal Policy for 

the Protection of Human Subjects. 

7 CFR part 3—USDA implementation 

of the Debt Collection Act. 


pwalker on PROD1PC71 with RULES
20712 Federal Register / Vol. 72, No. 80 / Thursday, April 26, 2007 / Rules and Regulations 

7 CFR part 15, subpart A—USDA 

implementation of Title VI of the Civil 

Rights Act of 1964, as amended. 

7 CFR part 331 and 9 CFR part 121—

USDA implementation of the 

Agricultural Bioterrorism Protection Act 

of 2002. 

7 CFR part 3015—USDA Uniform 

Federal Assistance Regulations, 

implementing OMB directives (i.e., 

OMB Circular Nos. A–21 and A–122) 

and incorporating provisions of 31 

U.S.C. 6301–6308 (formerly the Federal 

Grant and Cooperative Agreement Act of 

1977, Pub. L. 95–224), as well as general 

policy requirements applicable to 

recipients of Departmental financial 

assistance. 

7 CFR part 3017—USDA 

implementation of Governmentwide 

Debarment and Suspension 

(Nonprocurement) and 

Governmentwide Requirements for 

Drug-Free Workplace (Grants). 

7 CFR part 3018—USDA 

implementation of Restrictions on 

Lobbying. Imposes prohibitions and 

requirements for disclosure and 

certification related to lobbying on 

recipients of Federal contracts, grants, 

cooperative agreements, and loans. 

7 CFR part 3019—USDA 

implementation of OMB Circular A–

110, Uniform Administrative 

Requirements for Grants and Other 

Agreements With Institutions of Higher 

Education, Hospitals, and Other 

Nonprofit Organizations. 

7 CFR part 3052—USDA 

implementation of OMB Circular No. A–

133, Audits of States, Local 

Governments, and Non-profit 

Organizations. 

7 CFR part 3407—CSREES procedures 

to implement the National 

Environmental Policy Act of 1969, as 

amended. 

9 CFR parts 1, 2, 3, and 4—USDA 

implementation of the Act of August 24, 

1966, Pub. L. 89–544, as amended 

(commonly known as the Laboratory 

Animal Welfare Act). 

48 CFR part 31—Contract Cost 

Principles and Procedures of the Federal 

Acquisition Regulations. 

29 U.S.C. 794 (section 504, 

Rehabilitation Act of 1973) and 7 CFR 

part 15b (USDA implementation of 

statute)—prohibiting discrimination 

based upon physical or mental handicap 

in Federally assisted programs. 

35 U.S.C. 200 et seq.—Bayh-Dole Act, 

controlling allocation of rights to 

inventions made by employees of small 

business firms and domestic nonprofit 

organizations, including universities, in 

Federally assisted programs 

(implementing regulations are contained 

in 37 CFR part 401). 

§ 3403.16 Other considerations. 

The Department may, with respect to 

any research project grant, impose 

additional conditions prior to or at the 

time of any award when, in the 

Department’s judgment, such conditions 

are necessary to assure or protect 

advancement of the approved project, 

the interests of the public, or the 

conservation of grant funds. 

Done at Washington, DC, on this 22nd day 

of April, 2007. 

Colien Hefferan, 

Administrator, Cooperative State Research, 

Education, and Extension Service. 

[FR Doc. E7–7934 Filed 4–25–07; 8:45 am] 

BILLING CODE 3410–22–P 

NUCLEAR REGULATORY 

COMMISSION 

10 CFR Part 72 

RIN 3150–AH98 

List of Approved Spent Fuel Storage 

Casks: HI-STORM 100 Revision 3 

AGENCY: Nuclear Regulatory 

Commission. 

ACTION: Final rule. 

SUMMARY: The Nuclear Regulatory 

Commission (NRC) is amending its 

regulations by revising the Holtec 

International HI-STORM 100 cask 

system listing within the ‘‘List of 

approved spent fuel storage casks’’ to 

include Amendment No. 3 to Certificate 

of Compliance Number 1014. 

Amendment No. 3 revises Technical 

Specification (TS) 3.1.3, to eliminate 

cooling of the Multi-Purpose Canister 

(MPC) cavity prior to reflood with 

water, as part of cask unloading 

operations; TS 3.3.1, to allow linear 

interpolation between minimal soluble 

boron concentrations, for certain fuel 

enrichments in the MPC–32/32F; 

Appendix B, Section 1 to the CoC, to 

make modifications to the definitions of 

fuel debris, damaged fuel assembly, and 

non-fuel hardware; and Appendix B, 

Section 2 to the CoC, to permit the 

storage of pressurized water reactor fuel 

assemblies with annular fuel pellets in 

the top and bottom 12 inches of the 

active fuel length. Other changes are 

made to incorporate minor editorial 

corrections. This final rule allows the 

holders of power reactor operating 

licenses to store spent fuel in this 

approved cask in accordance with the 

revised conditions, under the NRC’s 

general license provisions. 

DATES: The final rule is effective on May 

29, 2007. 

ADDRESSES: Publicly available 

documents related to this rulemaking 

may be viewed electronically on the 

public computers located at the NRC’s 

Public Document Room (PDR), Room 

O1F21, One White Flint North, 11555 

Rockville Pike, Rockville, Maryland. 

The PDR reproduction contractor will 

copy documents for a fee. Selected 

documents can be viewed and 

downloaded electronically via the 

NRC’s rulemaking Web site at http:// 

ruleforum.llnl.gov. 

Publicly available documents created 

or received at the NRC are available 

electronically at the NRC’s Electronic 

Reading Room at http://www.nrc.gov/ 

reading-rm/adams.html. From this site, 

the public can gain entry into the NRC’s 

Agencywide Document Access and 

Management System (ADAMS), which 

provides text and image files of NRC’s 

public documents. If you do not have 

access to ADAMS or if there are any 

problems in accessing the documents 

located in ADAMS, contact the NRC 

PDR Reference staff at (800) 397–4209, 

(301) 415–4737, or by e-mail to 

pdr@nrc.gov. 

FOR FURTHER INFORMATION CONTACT: 

Jayne M. McCausland, Office of Federal 

and State Materials and Environmental 

Management Programs, U.S. Nuclear 

Regulatory Commission, Washington, 

DC 20555–0001, telephone (301) 415–

6219, e-mail: jmm2@nrc.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

Section 218(a) of the Nuclear Waste 

Policy Act of 1982 (NWPA), as 

amended, requires that ‘‘[t]he Secretary 

[of the Department of Energy (DOE)] 

shall establish a demonstration program, 

in cooperation with the private sector, 

for the dry storage of spent nuclear fuel 

at civilian nuclear power reactor sites, 

with the objective of establishing one or 

more technologies that the [Nuclear 

Regulatory] Commission may, by rule, 

approve for use at the sites of civilian 

nuclear power reactors without, to the 

maximum extent practicable, the need 

for additional site-specific approvals by 

the Commission.’’ Section 133 of the 

NWPA states, in part, that ‘‘[t]he 

Commission shall, by rule, establish 

procedures for the licensing of any 

technology approved by the 

Commission under Section 218(a) for 

use at the site of any civilian nuclear 

power reactor.’’

To implement this mandate, the NRC 

approved dry storage of spent nuclear 

fuel in NRC-approved casks under a 

general license by publishing a final 

rule in 10 CFR Part 72 entitled ‘‘General 

License for Storage of Spent Fuel at 


pwalker on PROD1PC71 with RULES