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OMB No. 0581-0335

PROGRAM SPECIFIC TERMS AND CONDITIONS

USDA REGIONAL FOOD BUSINESS CENTERS PROGRAM

In addition to the AMS General Terms and Conditions, the following terms and conditions apply to Regional Food 

Business Centers awards, due to the specific requirements of this program. In the event of an inconsistency 

between the AMS General Terms and Conditions and the Regional Food Business Centers program specific terms 

and conditions, this document will take precedence.

1.0 SUBSTANTIAL INVOLVEMENT

A cooperative agreement means a legal instrument of financial assistance between a Federal awarding agency and 

a recipient or a pass-through entity and a subrecipient. (See 2 CFR § 200.1.) A cooperative agreement is 

distinguished from a grant in that it provides for substantial involvement of the Federal awarding agency in 

carrying out the activity contemplated by the Federal award.

AMS will be substantially involved throughout the period of performance of the award. Substantial involvement 

may include, but is not limited to, the following:

• Specification of the manner, method, performance, or timing of the work in an approved work plan;

• Ensuring work plans maintain consistency across the Regional Food Centers while also being responsive to 

the needs of the region;

• Review and approval of one stage of work before a subsequent stage may begin during the period of 

performance;

• Participation in the selection and approval of new partners;

• Participation in potential geographic expansion or adjustment and approval of geographic reach;

• Review and approval of an evaluation plan;

• Participation in the selection and approval of individuals or organizations that will conduct all required 

evaluations;

• Participation in the selection and approval of individuals or organizations that are considered for funding in 

subagreements, contracts, or subawards;

• Participation in data collection and analysis for required evaluations and other performance reports; 

• Provision of specific direction or redirection of work during the period of performance; and

• Establishing guidelines to ensure funds are distributed equitably and driven by the region’s priorities and 

needs.
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2.0 ALLOWABLE AND UNALLOWABLE COSTS AND ACTIVITIES

2.1 DEVIATIONS FROM THE GENERAL TERMS AND CONDITIONS

Outlined below are where this program deviates from AMS General Terms and Conditions:

Special purpose equipment purchases are allowable when provided in the approved budget or with prior written 

approval for acquisition costs and rental costs of special purpose equipment provided the following criteria are 

met:

1. Necessary for the research, scientific, or other technical activities of the cooperative agreement;

2. Not otherwise reasonably available and accessible;

3. The type of equipment is normally charged as a direct cost by the organization;

4. Acquired in accordance with organizational practices;

5. Must be used solely to meet the legislative purpose of the program and objectives of the agreement;

6. Equipment is subject to the full range of acquisition, use, management, and disposition requirements 

under 2 CFR § 200.313 as applicable.

Costs associated with advisory councils and committees are allowable.

2.2 INDIRECT COSTS

Indirect costs (also known as “facilities and administrative costs”—defined at 2 CFR § 200.1) are those costs 

incurred for a common or joint purpose benefitting more than one cost objective, and not readily assignable to the 

cost objectives specifically benefitted, without effort disproportionate to the results achieved.

As stated in 2 CFR § 200.413 and 414 any non-Federal entity that does not have a current negotiated (including 

provisional) indirect cost rate, except State and Local Government and Indian Tribe Indirect Cost Proposals, may 

elect to charge a de minimis rate of 10 percent of modified total direct costs (MTDC) that may be used indefinitely. 

No documentation is required to justify the 10% de minimis indirect cost rate. As described in 2 CFR § 200.403, 

costs must be consistently charged as either indirect or direct costs, but may not be double charged or 

inconsistently charged as both. If chosen, this methodology once elected must be used consistently for all Federal 

awards until such time as a recipient chooses to negotiate for a rate, which the recipient may apply to do at any 

time.

All applicants who elect to charge a de minimis rate of 10 percent must use the MTDC as the base. MTDC are 

defined in 2 CFR § 200.1 as all direct salaries and wages, applicable fringe benefits, materials and supplies, services, 

travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards 

under the award). MTDCs exclude equipment, capital expenditures, charges for patient care, rental costs, tuition 

remission, scholarships and fellowships, participant support costs, and the portion of each subaward in excess of 

$25,000. Other items may be excluded only when necessary to avoid a serious inequity in the distribution of 

indirect costs, and with the approval of the cognizant agency for indirect costs.

If an applicant has a negotiated indirect cost rate approved by its cognizant agency, the applicant must submit a 

copy of its approved NICRA with its application. Entities that would like to negotiate an indirect cost rate must 
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contact their cognizant agency. For assignments of cognizant agencies, see 2 CFR § 200.1. Allowable and 

Unallowable Costs and Activities.

3.0 REPORTING AND COMMUNICATION

Recipients are expected to provide semi-annual performance reports (every 6 months) throughout the period of

performance. As described in the General Terms and Conditions, performance reports must be formatted and 

submitted using the approved templates or guidance, and be machine-readable. 

• The semi-annual performance reports and SF-425 Federal Financial Reports are due semi-annually (every 

six months), no later than 30 calendar days after each performance reporting period end date.

• The final reports, including performance and financial, are due 120 days after the end of the agreement.

Recipients are required to submit an SF-425 Federal Financial Report with each performance report to account for 

their financial expenditures during that reporting period. The required Report Templates, and the SF-425 Federal 

Financial Report, along with instructions and a sample financial report, can be found at 

www.ams.usda.gov/regionalfoodcenters. 

The content of the performance reports will include success stories, videos, pictures, and other materials that 

highlight the outcomes and accomplishments of their cooperative agreement. If these materials become available 

before reports are due, AMS encourages the Regional Food Centers to send them to their AMS Point of Contact in 

their Notice of Award.

3.2 COMMUNICATIONS

The Regional Food Centers are expected to communicate extensively with USDA and with the other Regional Food 

Centers. At minimum, USDA will host monthly calls with each cooperator individually and as a cohort. 

Communication with USDA and the other Regional Food Centers may be more frequent during the first year of the 

agreement. 

4.0 ACKNOWLEDGEMENT OF SUPPORT

As described in 2 CFR § 415.2, recipients must acknowledge USDA-AMS support through oral or written 

presentations, and USDA must be listed and named as the funder on all external communications. Materials 

bearing the USDA logo must be reviewed by AMS.

For materials where the USDA logo is not appropriate, the recipient must include an acknowledgment of support,

as follows: 

Funding for the USDA Regional Food Business Center was made possible by the U.S. Department of 

Agriculture’s (USDA) Agricultural Marketing Service. Its contents are solely the responsibility of the 

authors and do not necessarily represent the official views of the USDA. 

The USDA logo may not be used to imply endorsement of a commercial product or service. The use of the USDA 

symbol or logo must be approved by AMS. 
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5.0 CHANGES REQUIRING WRITTEN APPROVAL

The process for making changes to agreements is outlined in the AMS General Terms and Conditions. The only 

deviation from this process is that given the substantial involvement required in cooperative agreements, Regional 

Food Business Centers should discuss all potential changes with USDA prior to written submission.