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RESILIENT FOOD SYSTEMS INFRASTRUCTURE 

PROGRAM 

PROGRAM SPECIFIC TERMS AND CONDITIONS

In addition to the AMS General Terms and Conditions, the following program specific terms and conditions apply to 

the Resilient Food Systems Infrastructure Program (RFSI) Cooperative Agreements. If there are any differences 

between the AMS General Terms and Conditions and the RFSI Program-specific Terms and Conditions, the RFSI 

Program Specific Terms and Conditions 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 any subrecipients. (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: 

• USDA will maintain engagement to ensure that implementation maintains consistency across states and in 

alignment with RFSI program purpose while also being responsive to the specific needs of the producers in 

the state. This may include coordinating state partner meetings.

• Sharing expertise and resources on local and regional food systems, market development, value chain 

coordination or other topics identified as useful to support state RFSI activities.

• Providing specific direction or redirection of work during the period of performance, including reallocation 

of Infrastructure Grant funds or supply chain coordination funds to alternative projects or uses, as needed.

• Developing and disseminating clear and consistent branding for this program. USDA will coordinate with 

states on all award announcements to ensure they are amplified at the federal level and provide 

opportunities for USDA officials to attend announcement events if feasible. States will also coordinate 

with USDA on events or ribbon-cuttings or other events to highlight success of Infrastructure Grant 

projects.

• Collaborating with States on data collection methods and data analysis for performance reports.
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2.0 ALLOWABLE AND UNALLOWABLE COST AND ACTIVITIES FOR INFRASTRUCTURE GRANTS

Cost Category Description, Guidance and Exceptions

Buildings and Land—

Construction and/or 

Renovation

Allowable:

• Additions, improvements, modifications, replacements, rearrangements, 

reinstallations, renovations, alterations, or construction on an existing 

building or facility. The construction of new buildings at an existing facility 

and of wastewater management structures. This also includes 

construction and construction-related materials, which may include, but 

are not limited to, the purchase of building materials such as wood, nails, 

concrete, asphalt, roofing, gravel, sand, paint, insulation, drywall, or

plumbing.

Equipment Special purpose equipment purchases are allowable when provided in the 

approved budget or with prior written approval for acquisitions costs and rental 

costs of special purpose equipment provided the following criteria are met: 

Allowable: 

• Purchases of special purpose equipment (such as, canners, hulling 

processors, reverse osmosis systems, egg packing machines, flotation 

tanks, roasters, or other processing equipment, packing and labeling 

equipment, or delivery vehicles) are allowable when approved in the 

agreement budget or with prior written approval. All equipment 

purchases must meet the following criteria: 

o Equipment is necessary for the technical activities of the 

agreement and is not otherwise reasonably available and 

accessible. 

o Equipment is normally charged as a direct cost by the 

organization and is acquired in accordance with organizational 

practices.

o Equipment must be used solely to meet the purpose of the 

program and objectives of the agreement. 

o Equipment is subject to the full range of acquisition, use, 

management, and disposition requirements under 2 CFR § 

200.313 as applicable. 

Unallowable: 

• Purchases of general-purpose equipment (e.g., general use motor

vehicles, office furniture, office air conditioners, printers, and copiers) or 

lease agreements to own (i.e., lease-to-own or rent-to-own).

Compensation for Damage Unallowable:

• Compensation for injuries or damage to property arising from project

activities. 

Purchases of Land, 

Buildings, and Facilities

Unallowable:

• Purchase of land, new buildings, and new facilities 

Marketing Costs Unallowable: 

• Recipients to use funds for marketing their product(s)/services(s) or 

organization.
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3.0 DISPOSITION OF IMPROVED PROPERTIES

The recipient cannot encumber property improved as part of the cooperative agreement award and must follow 

the requirements of 2 CFR §200.311 before disposing of the property. The real property will be used for the 

originally authorized purpose as long as needed for that purpose. When real property is no longer needed for the 

originally authorized purpose, the recipient must obtain disposition instructions from AMS. The following 

alternatives will apply:

1. Retain title after compensating the Federal awarding agency as described in 2 CFR Part 200.311(c)(1);

2. Sell the property and compensate the federal awarding agency as specified in 2 CFR Part 200.311(c)(2); 

or

3. Transfer the title to the Federal awarding agency or to a third Party designated/approved by the 

Federal awarding agency as specified in 2 CFR Part 200.311(c)(3).

4.0 REPORTING AND COMMUNICATION

Recipients are expected to provide annual performance reports (every 12 months) throughout the period of 

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

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

• The annual performance reports and SF-425 Federal Financial Reports are due annually (every 12 

months), no later than 90 calendar days after each performance reports reporting period end date.

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

5.0 ACKNOWLEDGEMENT OF SUPPORT

In addition to the AMS General Terms and Conditions section 11.0 Acknowledgement of Support, this program also 

requires that the recipient follow AMS requirements for signage and acknowledgement of funding from the 

American Rescue Plan Act. AMS will provide guidance on necessary signage.

6.0 NATIONAL ENVIRONMENTAL POLICY ACT (NEPA)

States must ensure Infrastructure Grant recipients comply with the National Environmental Policy Act (NEPA), 

National Historic Preservation Act (NHPA), Endangered Species Act (ESA), and all other federal environmental laws 

and regulations. States are required to review projects for NEPA compliance prior to the award of Infrastructure 

Grant subaward funds. States are responsible for assisting Infrastructure Grant recipients with obtaining any 

authorities, permits, easements or other approvals necessary for the implementation of the activities in 

accordance with applicable laws and regulations.

7.0 BUILD AMERICA, BUY AMERICA ACT

Any public infrastructure project funded under this cooperative agreement must coordinate with AMS to ensure 

adherence to BABA guidance. For such projects, the recipient must comply with the Buy America Sourcing 

requirements outlined in the Build America, Buy America (BABA) provisions of the Infrastructure Investment and 

Jobs Act.