Document ID: DOT-OST-2005-22602-0007
Agency: dot
Document Type: Rule
Title: Grants and Cooperative Agreements to State and Local Governments; Grants and Agreements with Institutions of Higher Education, Hospitals and Other Non-Profit Organizations
Posted Date: 2008-05-02T04:00Z

[Federal Register: May 2, 2008 (Volume 73, Number 86)]
[Proposed Rules]               
[Page 24188-24190]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02my08-26]                         

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DEPARTMENT OF TRANSPORTATION

Office of the Secretary

49 CFR Parts 18 and 19

[Docket OST-2005-22602]
RIN 2105-AD60

 
Grants and Cooperative Agreements to State and Local Governments; 
Grants and Agreements with Institutions of Higher Education, Hospitals 
and Other Non-Profit Organizations

AGENCY: Office of the Secretary (OST), DOT.

ACTION: Notice of proposed rulemaking (NPRM); request for comments.

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SUMMARY: This proposal would amend Department of Transportation 
regulations on uniform administrative requirements for grants and 
agreements with institutions of higher education, hospitals and other 
non-profit organizations. Specifically, the DOT proposes to make 
requirements for these grants and agreements consistent with the 
uniform administrative requirements for grants and cooperative 
agreements to state and local governments. In addition, this proposal 
would update references to applicable cost principles for grants and 
cooperative agreements with state and local governments and for grants 
and other agreements with institutions of higher education, hospitals 
and other non-profit organizations that appear in current Department of 
Transportation regulations.

DATES: Comments must be received on or before June 16, 2008

ADDRESSES: You may file comments identified by the docket number DOT-
OST-2007-0022 by any of the following methods:
    [cir] Federal eRulemaking Portal: go to http://www.regulations.gov 
and follow the online instructions for submitting comments.
    [cir] Mail: Docket Management Facility, U.S. Department of 
Transportation, 1200 New Jersey Ave., SE., West Building Ground Floor, 
Room W12-140, Washington, DC 20590-0001.
    [cir] Hand Delivery or Courier: West Building Ground Floor, Room 
W12-140, 1200 New Jersey Ave., SE., between 9 a.m. and 5 p.m. ET, 
Monday through Friday, except Federal Holidays.
    [cir] Fax: (202) 493-2251.
    Instructions: You must include the agency name and docket number 
DOT-OST-2007-0022 or the Regulatory Identification Number (RIN) for the 
rulemaking at the beginning of your comment. All comments received will 
be posted without change to http://www.regulations.gov, including any 
personal information provided.

FOR FURTHER INFORMATION CONTACT: Ellen Shields, Office of the Senior 
Procurement Executive, Office of Administration (M-61), (202) 366-4268, 
1200 New Jersey Avenue, SE., Washington, DC 20590-0001. Office hours 
are from 7:45 a.m. to 4:15 p.m. ET, Monday through Friday, except 
Federal holidays.

SUPPLEMENTARY INFORMATION: 

Electronic Access and Filing

    You may submit or retrieve comments online through the Document 
Management System (DMS) at: http://www.regulations.gov. Acceptable 
formats include: MS Word (versions 95 to 97), MS Word for Mac (versions 
6 to 8), Rich Text File (RTF), American Standard Code Information 
Interchange (ASCII)(TXT), Portable Document Format (PDF), and 
WordPerfect (versions 7 to 8). This site is available 24 hours each 
day, 365 days each year. Electronic submission and retrieval help and 
guidelines are available under the help section of the web site.
    An electronic copy of this document may also be downloaded by using 
a computer, modem and suitable communications software from the 
Government Printing Office's Electronic Bulletin Board Service at (202) 
512-1661. Internet users may also reach the Office of the Federal 
Register's home page at: http://www.nara.gov/fedreg and the Government 
Printing Office's Web page at: http://www.access.gpo.gov/nara.

Background

    Regulations governing two types of U.S. Department of 
Transportation grant and cooperative agreement recipients are found in 
Parts 18 and 19 of Title 49 of the Code of Federal Regulations:

    1. 49 CFR Part 18: Uniform Administrative Requirements for 
Grants and Cooperative Agreements to State and Local Governments.
    2. 49 CFR Part 19: Uniform Administrative Requirements for 
Grants and Agreements with Institutions of Higher Education, 
Hospitals, and Other Non-Profit Organizations

    Both of these parts contain a provision that governs allowable 
costs. However, while 49 CFR 18.22(a) identifies certain specific 
limitations on the use of grant or cooperative agreement funds by state 
or local governments receiving financial assistance from the U.S. 
Department of Transportation, 49 CFR 19.27 does not contain similar 
limitations. Specifically, under 49 CFR 18.22(a), grant funds may only 
be used for:

    (1) The allowable costs of the grantees, subgrantees and cost-
type contractors, including allowable costs in the form of payments 
to fixed-price contractors; and
    (2) Reasonable fees or profit to cost-type contractors but not 
any fee or profit (or other increment above allowable costs) to the 
grantee or subgrantee.

    This proposal would impose the same limitation on the use of funds 
used for grants and agreements with institutions of higher education, 
hospitals, and other non-profit organizations as there are on the use 
of funds used for uniform administrative requirements for grants and 
cooperative agreements to state and local governments, which are set 
forth above.
    In addition, this proposal would update references to applicable 
cost principles for grants and cooperative agreements with state and 
local governments that appear in 49 CFR 18.22(b) and include comparable 
updated references in 49 CFR 19.27(b) with regard to grants and 
agreements awarded to institutions of higher education, hospitals, and 
other non-

[[Page 24189]]

profit organizations. These updated references are necessary in light 
of the establishment of title 2 of the Code of Federal Regulations in 
2004. Subtitle A of title 2 of the Code of Federal Regulations consists 
of government-wide guidance from the Office of Management and Budget 
(OMB) to Federal agencies for grants and other financial assistance and 
nonprocurement agreements that previously had been contained in seven 
separate OMB circulars and other OMB policy documents. Currently, 49 
CFR 18.22(b) references three specific OMB circulars that are now 
codified in several Parts in chapter II, subtitle A of title 2 of the 
Code of Federal Regulations. This proposal would amend 49 CFR 18.22(b) 
by replacing the citations to these former OMB circulars with the 
appropriate references in title 2 of the Code of Federal Regulations 
and would reflect these same changes in 49 CFR 19.27(b).

Rulemaking Analyses and Notices

    All comments received before the close of business on the comment 
closing date indicated above will be considered and will be available 
for examination in the docket at the above address. Comments received 
after the comment closing date will be filed in the docket and will be 
considered to the extent practicable. In addition to late comments, the 
DOT will also continue to file relevant information in the docket as it 
becomes available after the comment period closing date, and interested 
persons should continue to examine the docket for new material. A final 
rule may be published at any time after close of the comment period.

Executive Order 12866

    The Department has determined that this rule is nonsignificant. It 
is purely administrative in nature and does not impose new burdens on 
any parties.

Regulatory Flexibility Act of 1980

    The Department certifies that this rule will not have a significant 
effect on a substantial number of small entities. This is because, as a 
purely administrative rule, it does not create economic effects on 
anyone. The amendment would not change or limit the potential 
eligibility of any small entity.

Unfunded Mandates Reform Act of 1995

    This regulatory action does not contain a Federal mandate that will 
result in the expenditure by State, local, and tribal governments, in 
aggregate, or by the private sector of $100 million or more in any one 
year, as adjusted for inflation.

Paperwork Reduction Act of 1995

    This regulatory action will not impose any additional reporting or 
recordkeeping requirements covered under the Paperwork Reduction Act.

Executive Order 13132 (Federalism)

    This regulatory action does not have Federalism implications, as 
set forth in Executive Order 13132. It will not have substantial direct 
effects on the States, on the relationship between the national 
government and the States, or on the distribution of power and 
responsibilities among the various levels of government.

List of Subjects in 49 CFR Parts 18 and 29

    Administrative practice and procedure, Grant programs, Allowable 
costs, Cooperative agreements.

    Issued on: April 14, 2008.
Mary E. Peters,
Secretary of Transportation.
    In consideration of the foregoing, the DOT proposes to amend, title 
49, Code of Federal Regulations, parts 18 and 19, as set forth below:

PART 18--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND 
COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS

    1. The authority citation for part 18 continues to read as follows:

    Authority: 49 U.S.C. 322(a).

    2. In Sec.  18.22(b), revise the table to read as follows:

Sec.  18.22  Allowable costs.

* * * * *
    (b) * * *

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           For the costs of a                Use the principles in--
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State, local or federal-recognized       2 CFR part 225.
 Indian tribal government.
Private non-profit organization other    2 CFR part 230.
 than an (1) institution of higher
 education, (2) hospital, or (3)
 organization named in 2 CFR part 230,
 Appendix C, as not subject to that
 part.
Institutions of higher education.......  2 CFR part 220.
For-profit organizations other than a    48 CFR part 31, Contract Cost
 hospital, commercial organization or a   Principles and Procedures, or
 non-profit organization listed in 2      uniform cost accounting
 CFR part 230, Appendix C, as not         standards that comply with
 subject to that part.                    cost principles acceptable to
                                          the Federal agency.
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* * * * *

PART 19--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND 
AGREEMENTS WITH INSTITUTIONS OF HIGER EDUCATION, HOSPITALS, AND 
OTHER NON-PROFIT ORGANIZATIONS

    3. The authority citation for part 19 continues to read as follows:

    Authority: 49 U.S.C. 322(a).

    4. Revise Sec.  19.27 to read as follows:

Sec.  19.27  Allowable costs.

    (a) Limitation on use of funds. Grant funds may be used only for:

    (1) The allowable costs of the grantees, subgrantees and cost-
type contractors, including allowable costs in the form of payments 
to fixed-price contractors; and
    (2) Reasonable fees or profit to cost-type contractors but not 
any fee or profit (or other increment above allowable costs) to the 
grantee or subgrantee.

    (b) Applicable cost principles. For each kind of recipient, there 
is a set of Federal principles for determining allowable costs. 
Allowability of costs shall be determined according to the cost 
principles applicable to the entity organization incurring the costs. 
The following chart lists the kinds of organization and the applicable 
cost principles:

------------------------------------------------------------------------
           For the costs of a                Use the principles in--
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State, local or federal-recognized       2 CFR part 225.
 Indian tribal government.

[[Page 24190]]

Private non-profit organization other    2 CFR part 230.
 than an (1) institution of higher
 education, (2) hospital, or (3)
 organization named in 2 CFR part 230,
 Appendix C, as not subject to that
 circular.
Institutions of higher education.......  2 CFR part 220.
Hospitals..............................  45 CFR part 74, Appendix E,
                                          ``Principles for Determining
                                          Costs Applicable to Research
                                          and Development under Grants
                                          and Contracts with
                                          Hospitals.''
For-profit organizations other than a    48 CFR part 31, Contract Cost
 hospital, commercial organization or a   Principles and Procedures, or
 non-profit organization listed in 2      uniform cost accounting
 CFR part 230, Appendix C, as not         standards that comply with
 subject to that part.                    cost principles acceptable to
                                          the Federal agency.
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[FR Doc. E8-8789 Filed 5-1-08; 8:45 am]

BILLING CODE 4910-9X-P