[Federal Register Volume 62, Number 230 (Monday, December 1, 1997)]
[Rules and Regulations]
[Pages 63452-63453]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-30972]


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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

14 CFR Part 1260


Miscellaneous Revisions to the NASA Grant and Cooperative 
Agreement Handbook, Section A

AGENCY: National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: The NASA Grant and Cooperative Agreement Handbook regulation 
is published in the Code of Federal Regulations. This is a final rule 
to amend the Handbook to: Redefine certain grant terms to eliminate 
ambiguities; clarify definitions and proposal and certification 
requirements relative to action type; raise the subcontract consent 
level from $25,000 to $100,000; clarify when it is necessary to obtain 
a revised budget proposal for competitively selected research grants; 
reduce the level of detail required for proposed travel costs; waive 
the requirement for Grant Officer approval of competitively selected 
research grants where 50 percent or more of the proposed funding is for 
equipment or travel; and clarify the requirements for proposal and 
approval procedures to permit the direct charge of general purpose 
equipment.

EFFECTIVE DATE: December 1, 1997.

FOR FURTHER INFORMATION CONTACT:
Donna Fortunat, NASA, Office of Procurement, Contract Analysis Division 
(Code HC), (202) 358-0426.

SUPPLEMENTARY INFORMATION:

Background

    The NASA Grant and Cooperative Agreement Handbook is the NASA 
regulation for awarding and administering grants and cooperative 
agreements (14 CFR part 1260). Subpart A provides the text of 
provisions and special conditions and addresses NASA's authority, 
definitions, applicability, amendments, publications, deviations, pre-
award requirements and post-award requirements.

Impact

    NASA certifies that this regulation will not have a significant 
economic impact on a substantial number of small business entities 
under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). This final 
rule does not impose any reporting or recordkeeping requirements 
subject to the Paper Reduction Act.

List of Subjects in 14 CFR Part 1260

    Grant programs--science and technology, Reporting and recordkeeping 
requirements, Research.
Tom Luedtke,
Deputy Associate Administrator for Procurement.

    Accordingly, 14 CFR Part 1260 is amended as follows:

PART 1260--GRANTS AND COOPERATIVE AGREEMENTS

    1. The authority citation for 14 CFR Part 1260 continues to read as 
follows:

    Authority: 42 U.S.C. 2473(c)(1), Pub. 2.97-258, 96 Stat. 1003 
(31 U.S.C. 6301 et seq.), and OMB Circular A-110.

    2. In section 1260.2, the definitions ``Extension'' and 
``Supplement'' are removed, and the following definition ``Amendment'' 
is added in alphabetical order to read as follows:


Sec. 1260.2  Definitions.

* * * * *
    Amendement. Any document used to effect modifications to grants and 
cooperative agreements. Amendments may be issued unilaterally at the 
discretion of the Grant Officer.
* * * * *
    3. In section 1260.11, paragraphs (d) and (e)(1) are revised and 
paragraph (e)(3) is added to read as follows:


Sec. 1260.11  Evaluation and selection.

* * * * *
    (d) Equipment justification on travel justification. Unless the 
proposal is selected using a competitive process, for example, a NASA 
Research Announcement or a Cooperative Agreement Notice, these 
documents will be submitted by the technical office for grant officer 
approval when more than half of the proposed budget is for equipment or 
travel and associated indirect cost. The justification shall describe 
the extent to which the equipment or travel is necessary.
    (e) Proposal budget evaluation. (1) The technical officer will 
review the recipients' estimated cost for conformance to program 
requirements and funds availability. The results of this review shall 
be recorded in Column B of the proposed Budget Summary Form (Exhibit 
C). New budgets are not required when the program office recommended 
funding is within 20 percent of the proposed amount, provided specific 
proposed objectives have not been added or deleted. However, when 
equipment and/or subcontracts are involved, the cognizant program 
office is required to identify the cost element(s) affected by the 
change in funding level.
* * * * *
    (3) The grant officer will address requests for direct charge of 
general purchase equipment in a negotiation summary and indicate 
whether the proposed purchase is approved as a direct cost.
* * * * *
    4. Section 1260.13 is revised to read as follows:


Sec. 1260.13  Award procedures.

    (a) Award instruments--(1) Annual grant. Grant may be awarded for a 
short term (e.g., on an annual basis).
    (2) Multiple year grant. NASA policy is to make maximum use of 
multiple year grants to support research projects that may span several 
years. A multiple year grant is generally selected for a period of 
three years in keeping with NASA's policy calling for research to be 
peer reviewed at least every three years.
    (i) If the decision to provide multiple year funding to a research 
proposal is made, the special condition in Sec. 1260.52, ``Multiple 
Year Grants'', will be included in the award.
    (ii) Periods approved under the Multiple Year Grants special 
condition in Sec. 1260.52, and funded at the levels specified in the 
special condition, are not considered to be new awards. Therefore, new 
proposals, new proposal-related certifications (such as Drug Free 
Workplace and Debarment and Suspension) and new technical evaluations 
are not required.

[[Page 63453]]

    (iii) If NASA program constraints or developments within the 
research project dictate a reduction in the funding level specified 
under a multiple year grant period, research may continue at the 
reduced level under the terms of the special condition; however, the 
recipient may rebudget under the grant provisions to keep the project 
within the funding actually provided.
    (3) Supplements. A supplement to a grant may be issued at any time 
when work is introduced which is outside the scope of the approved 
proposal; or when there is a need for substantial unanticipated 
funding. Supplements require the submission of revised budget proposals 
and technical evaluations. Since Supplements will be performed within 
the existing period of performance, certifications will not normally be 
required.
    (4) Extensions. Grant may be extended beyond the expiration date in 
accordance with Sec. 1260.22, ``Extensions'', if additional time beyond 
the established period of performance is required to assure adequate 
completion of the original scope of work within the available funding.
    (5) Renewals. Grant renewals provide for continuation of research 
beyond the original scope, period of performance and funding levels; 
therefore, new proposals, certifications and technical evaluations are 
required prior to the execution of a grant renewal. Continued 
performance within a period specified under the Multiple Year Grants 
special condition does not constitute a renewal. Peer review of the 
continuing research should be accomplished prior to selecting a 
research grant for renewal. The Multiple Year Grant special condition 
may be incorporated into renewals.
    (b) Funding arrangements. While NASA normally provides full funding 
support for research grants, alternate methods of grant funding are as 
follows:
    (1) Cost sharing. Since NASA grant recipients usually gain no 
measurable benefit from grants other than conducting research, cost 
sharing for research grants is not generally required. NASA may, 
however, accept cost sharing when voluntarily offered. Additionally, in 
instances when the Grant Officer determines that the recipient will 
benefit from research results through sales to non-Federal entities, 
cost sharing based upon this mutuality of interest will apply (see 
Sec. 1260.123). When cost sharing is used, the Grant Officer shall 
insert a special condition substantially as shown in Sec. 1260.54, 
``Cost Sharing.''
    (2) Partial support. NASA may provide partial support for a 
research project or conference where additional funding is being 
provided by other Federal agencies. If the grant also involves cost 
sharing by the recipient, the Grant Officer will ensure that the 
recipient's share does not include any Federal funds.
    5. In Sec. 1260.32 the clause heading and paragraphs (a) and (c) 
are revised and a bracket line is added at the end of the section to 
read as follows:


Sec. 1260.32  Subcontracts.

Subcontracts (November 1997)

    (a) For all subcontracts over $100,000, the recipient shall 
provide the following to the NASA grant officer for approval:
    (1) A copy of the proposed subcontract.
    (2) The basis for subcontractor selection.
    (3) Justification for lack of competition when competitive bids 
or offers are not obtained.
    (4) The subcontract budget and basis for subcontract cost or 
price.
* * * * *
    (c) All contracts awarded by a recipient, including small 
purchases, shall contain the provisions in appendix A of subpart B 
of this part.

[End of provision]

[FR Doc. 97-30972 Filed 11-28-97; 8:45 am]
BILLING CODE 7510-01-M