81 FR 78356 - Revised Interim Implementation of Governmentwide Guidance for Grants and Cooperative Agreements

DEPARTMENT OF DEFENSE
Office of the Secretary

Federal Register Volume 81, Issue 215 (November 7, 2016)

This notice of proposed rulemaking (NPRM) is the first of a sequence of six NPRM documents in this issue of the Federal Register that collectively establish for DoD grants and cooperative agreements an updated interim implementation of Governmentwide guidance on administrative requirements, cost principles, and audit requirements for Federal awards. This NPRM removes a part of the DoD Grant and Agreement Regulations (DoDGARs) and replaces it with a new DoDGARs part containing a revised interim implementation of the guidance and establishes seven subchapters within DoD's chapter of the Grants and Agreements title of the Code of Federal Regulations. The purpose of this NPRM is to provide an organizing framework for the DoDGARs to make it easier for users of the regulations to locate the content that they need.

[Federal Register Volume 81, Number 215 (Monday, November 7, 2016)]
[Proposed Rules]
[Pages 78356-78360]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-25702]



[[Page 78355]]

Vol. 81

Monday,

No. 215

November 7, 2016

Part IV





Department of Defense





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2 CFR Parts 1103, 1104, et al. and 32 CFR Parts 21, 22, et al.





Revised Interim Implementation of Governmentwide Guidance for Grants 
and Cooperative Agreements; Definitions for DoD Grant and Agreement 
Regulations in Subchapters A through F; Format for DoD Grant and 
Cooperative Agreement Awards; National Policy Requirements: General 
Award Terms and Conditions; Administrative Requirements Terms and 
Conditions for Cost-Type Awards to Nonprofit and Governmental Entities; 
and DoD Grant and Agreement Regulations; Proposed Rules

Federal Register / Vol. 81 , No. 215 / Monday, November 7, 2016 / 
Proposed Rules

[[Page 78356]]


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DEPARTMENT OF DEFENSE

Office of the Secretary

2 CFR Parts 1103, 1104, and 1125

[DOD-2016-OS-0048]
RIN 0790-AJ45


Revised Interim Implementation of Governmentwide Guidance for 
Grants and Cooperative Agreements

AGENCY: Office of the Secretary, Department of Defense (DoD).

ACTION: Proposed rule.

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SUMMARY: This notice of proposed rulemaking (NPRM) is the first of a 
sequence of six NPRM documents in this issue of the Federal Register 
that collectively establish for DoD grants and cooperative agreements 
an updated interim implementation of Governmentwide guidance on 
administrative requirements, cost principles, and audit requirements 
for Federal awards. This NPRM removes a part of the DoD Grant and 
Agreement Regulations (DoDGARs) and replaces it with a new DoDGARs part 
containing a revised interim implementation of the guidance and 
establishes seven subchapters within DoD's chapter of the Grants and 
Agreements title of the Code of Federal Regulations. The purpose of 
this NPRM is to provide an organizing framework for the DoDGARs to make 
it easier for users of the regulations to locate the content that they 
need.

DATES: To ensure that they can be considered in developing the final 
rule, comments must be received at either the Web site or mailing 
address indicated below by February 6, 2017.

ADDRESSES: You may submit comments identified by docket number, or by 
Regulatory Information Number (RIN) and title, by either of the 
following methods:
    The Web site: http://www.regulations.gov. Follow the instructions 
at that site for submitting comments.
    Mail: Department of Defense, Deputy Chief Management Officer, 
Directorate for Oversight and Compliance, 4800 Mark Center Drive, ATTN: 
Box 24, Alexandria, VA 22350-1700.
    Instructions: All submissions must include the agency name and 
docket number or RIN for this Federal Register document. The general 
policy for comments and other submissions from the public is to make 
the submissions available for public viewing on the Internet at http://www.regulations.gov without change (i.e., as they are received, 
including any personal identifiers or contact information).

FOR FURTHER INFORMATION CONTACT: Wade Wargo, Basic Research Office, 
telephone 571-372-2941.

SUPPLEMENTARY INFORMATION: 

I. Executive Summary

A. Purpose of the Regulatory Action

1. The Need for the Regulatory Action and How the Action Meets That 
Need
    The Department of Defense Grant and Agreement Regulations (DoDGARs) 
need to be updated. Much of the updating is required to implement 
Office of Management and Budget guidance to Federal agencies on 
administrative requirements, cost principles, and audit requirements 
applicable to Federal grants, cooperative agreements, and other 
assistance instruments (2 CFR part 200). DoD established an interim 
implementation of that guidance at 2 CFR part 1103 in December 2014, 
pending needed updates to the DoDGARs.
    The current regulatory action, which is in this NPRM and five 
additional NPRMs immediately following it in this issue of the Federal 
Register, implements the OMB guidance as it applies to general terms 
and conditions of DoD grants and cooperative agreements. It thereby 
takes a major step toward the needed updating of the DoDGARs.
2. Legal Authorities for the Regulatory Action
    There are two statutory authorities for this NPRM:
     10 U.S.C. 113, which establishes the Secretary of Defense 
as the head of the Department of Defense; and
     5 U.S.C. 301, which authorizes the head of an Executive 
department to prescribe regulations for the governance of that 
department and the performance of its business.

B. Summary of the Major Provisions of the Regulatory Action

    The six NPRMs propose to establish eleven new DoDGARs parts and 
make conforming changes to existing DoDGARs parts. This NPRM, the first 
of the six, proposes a new part 2 CFR part 1104 to serve as the central 
hub to direct DoD Components on the portions of the DoDGARs that apply 
to DoD grants and cooperative agreements for various pre-award, time-
of-award, and post-award purposes, pending completion of the remaining 
updates to the DoDGARs that are needed to fully implement the OMB 
guidance. It also proposes to remove the interim implementation of the 
guidance published in December 2014 at 2 CFR part 1103, as that 
implementation is superseded by the proposed 2 CFR part 1104. As 
described more fully in Section II.C of this Supplementary Information 
section, the other five NPRMs following this one propose:
     A new 2 CFR part 1120 to establish a standard format for 
organizing the content of DoD Components' grant and cooperative 
agreement awards;
     New 2 CFR parts 1126, 1128, 1130, 1132, 1134, 1136, and 
1138 to standardize the organization and, to the extent practicable, 
the wording of the administrative requirements portion of the general 
terms and conditions of awards to types of recipients covered by the 
OMB guidance in 2 CFR part 200;
     A new 2 CFR part 1122 to standardize the organization and, 
to the extent practicable, the wording of the national policy 
requirements portion of the general terms and conditions of awards to 
all types of recipients;
     A new 2 CFR part 1108 with definitions of terms used in 
the other new DoDGARs parts proposed in this regulatory action; and
     Conforming changes to portions of the DoDGARs in title 32 
of the CFR, including the removal of the DoD implementations of OMB 
Circulars A-110 and A-102 in 32 CFR parts 32 and 33, respectively, as 
both of those OMB circulars were superseded by the new OMB guidance in 
2 CFR part 200.

C. Costs and Benefits

    By increasing uniformity in the form and content of awards across 
DoD, the regulatory action in the six NPRMs benefit both recipient 
entities who receive awards from multiple DoD Component awarding 
offices and auditors of DoD awards. The standard format should enable 
them to more easily and quickly find requirements in different offices' 
awards, as any particular requirement should appear in a standard 
location. Standard wording and use of plain language should reduce the 
time that otherwise would be spent reading and interpreting the 
offices' differently worded terms and conditions for the same 
requirements. Based on comments DoD has received from recipients since 
it established the DoDGARs in the 1990s, we expect that the standard 
format, standard wording for general terms and conditions, and use of 
plain language would lessen administrative burdens for recipients and 
improve both transparency and ease of compliance.
    These changes also benefit offices within DoD that are responsible 
for post-award administration of grants and cooperative agreements made 
by DoD Components' awarding offices. Having

[[Page 78357]]

greater uniformity in the location and wording of terms and conditions, 
and having those terms and conditions written in plain language, will 
enable them to more quickly find and more easily understand 
requirements within different offices' awards that are relevant to 
their compliance monitoring functions.
    The uniformity across DoD that is promoted by this regulatory 
action also should help to lessen administrative burdens and costs for 
recipients, thereby providing added benefits by increasing the 
productivity of the defense programs supported by the awards. While it 
is difficult to quantify the amount by which burdens and associated 
costs will be reduced, it is pertinent to note that benefits of 
establishing, for the first time, a uniform implementation of OMB 
guidance, national policy requirements, and DoD policy through general 
terms and conditions extend to more than 15,000 obligating actions each 
year that:
     Are taken by 100 awarding offices located across the 
United States and abroad that are under the Departments of the Army, 
Navy, and Air Force and 11 other DoD Components.
     Provide support to various types of recipients, including 
institutions of higher education, nonprofit organizations, States, 
local governments, and for-profit entities.
     Provide $4-6 billion to carry out diverse programs, 
including defense research, support to States for the National Guard, 
and economic assistance to communities impacted by defense downsizing 
or costs associated with education of military dependents.
    The following portion of this Supplementary Information section 
provides additional background information and a more complete overview 
of the six NPRMs.

II. Additional Background and Overview of the Six NPRMs

    This NPRM removes a part of the DoD Grant and Agreement Regulations 
(DoDGARs) that DoD adopted on December 19, 2014, as its interim 
implementation of the guidance, pending completion of more extensive 
updates to the DoDGARs needed to implement the guidance on a longer-
term basis. It replaces that part with a new DoDGARs part containing a 
revised interim implementation of the guidance.
    The revised implementation in the new part incorporates ten other 
proposed new DoDGARs parts. Those ten other new parts, proposed in NPRM 
documents following this one, do several things. First, they provide 
standard wording of general terms and conditions governing 
administrative requirements for DoD grant and cooperative agreement 
awards to educational, nonprofit, and governmental entities subject to 
the Governmentwide guidance. Second, they provide standard wording for 
general terms and conditions addressing national policy requirements 
for DoD grant and cooperative agreement awards to all types of 
entities. Third, they establish a standard format for DoD grant and 
cooperative agreement awards. Finally, they establish a central DoDGARs 
part with definitions of terms used in those regulations.
    In conjunction with establishing the revised implementation of the 
Governmentwide guidance, this NPRM proposes to establish seven 
subchapters within DoD's chapter of the Grants and Agreements title of 
the Code of Federal Regulations. The purpose of the proposed 
subchapters is to provide an organizing framework for the DoDGARs to 
make it easier for users of the regulations to locate the content that 
they need.

A. Background on the DoDGARs

    The DoDGARs are the rules on which DoD Component awarding offices 
rely as the primary source of requirements governing their award and 
administration of grants and cooperative agreements. While the 
regulations are intended to primarily address DoD Components, direction 
to DoD Components in the DoDGARs impacts requirements for DoD award 
recipients and is used by auditors and others outside the DoD when 
carrying out their responsibilities related to DoD awards.
    When DoD established the DoDGARs in the 1990s, it did so in part as 
an integrated and comprehensive regulatory implementation of pertinent 
Governmentwide guidance. The pertinent guidance that the DoDGARs 
implemented at that time included the administrative requirements in 
OMB Circulars A-110 and A-102 and, as they applied to grants and 
cooperative agreements, the cost principles in OMB Circulars A-21, A-
87, and A-122, and the single audit requirements in OMB Circular A-133.
    To fully meet its needs, DoD established some portions of the 
DoDGARs to address awards that were outside the scope of the 
Governmentwide guidance. For example, it established a DoDGARs part to 
address grant and cooperative agreement awards to for-profit entities 
and another part to address Technology Investment Agreements, which 
include assistance awards other than grants and cooperative agreements. 
For optimal effectiveness, those additional portions of the DoDGARs 
were interconnected with portions that implemented Governmentwide 
guidance in OMB circulars.

B. Background on the DoDGARs Implementation of the New Governmentwide 
Guidance

    On December 26, 2013, the Office of Management and Budget (OMB) 
issued updated Governmentwide guidance on grants and cooperative 
agreements in 2 CFR part 200, ``Uniform Administrative Requirements, 
Cost Principles, and Audit Requirements for Federal Awards.'' The new 
guidance merged content previously contained in OMB Circulars A-110, A-
102, A-21, A-87, A-122, and A-133 that DoD had implemented in the 
DoDGARs. In superseding those circulars, the new guidance altered the 
organization and content of those circulars in ways that necessitated 
significant updating of the DoDGARs.
    As the guidance called for Federal agencies' regulatory 
implementations to be in effect within 12 months--i.e., by December 26, 
2014--DoD adopted a rule on December 19, 2014, to implement the new 
guidance on an interim basis, pending the more comprehensive update to 
the DoDGARs that was needed but would take longer to put in effect.
    DoD is proposing the rules contained in the sequence of NPRMs in 
this issue of the Federal Register as the first major portion of the 
needed updates to the DoDGARs. That updating enables recipients, DoD 
Components, and others who use the DoDGARs to begin to benefit from 
these updates without delay, while DoD finishes preparing the 
additional rules to be proposed for public comment, as needed to 
complete its implementation of the guidance and make other updates to 
the DoDGARs.
    This first set of updates to the DoDGARs focuses on the 
establishment of:
     A standard award format for DoD grants and cooperative 
agreement awards; and
     Standard wording for general terms and conditions of 
awards, including: (1) Administrative requirements for awards to types 
of recipients subject to 2 CFR part 200; and (2) national policy 
requirements for awards to all types of entities. The proposed terms 
and conditions are written in plain language. The associated regulatory 
text with proposed prescriptions for DoD Components' use of the 
standard wording provides limited flexibility to vary from the standard 
wording when appropriate.

[[Page 78358]]

C. Overview of the Six NPRMs in This Issue of the Federal Register

1. The Proposed 2 CFR Part 1104 as the Successor to 2 CFR Part 1103
    The DoD is proposing to remove 2 CFR part 1103, the rule it adopted 
in December 2014 as its initial interim implementation of the 
Governmentwide guidance in 2 CFR part 200, and replace it with a new 2 
CFR part 1104. The proposed part 1104 serves as the central hub to 
direct DoD Components' use of the other ten new parts that the 
documents following this one in this issue of the Federal Register 
propose for adoption in chapter XI of 2 CFR, as well as parts of the 
DoDGARs that will remain for the time being in subchapter C, chapter I 
of title 32 of the CFR. This document also proposes to subdivide 
chapter XI of title 2 of the CFR into seven subchapters corresponding 
to subject matter areas into which the proposed new DoDGARs parts will 
be organized.
2. Standard Award Format
    The document immediately following this one in this issue of the 
Federal Register proposes a new 2 CFR part 1120 to establish a standard 
format for DoD Components' grant and cooperative agreement awards, as 
discussed in Section I.C of this Supplementary Information section.
3. General Terms and Conditions Addressing Administrative Requirements
    The third document in this sequence of NPRMs in this issue of the 
Federal Register proposes seven new parts of the DoDGARs that 
collectively establish a standard organization of articles of general 
terms and conditions addressing administrative requirements for awards 
to educational, nonprofit, and governmental entities subject to the 
guidance in 2 CFR part 200, as well as standard wording for the content 
of those articles. Administrative requirements are those in areas such 
as recipient program and financial management; property administration; 
recipient procurement procedures; and reporting. They include 
implementation of cost principles through terms and conditions 
addressing allowable costs, as well as audit requirements. The seventh 
of the proposed new parts addresses requirements for recipients 
concerning subawards, including the administrative and national policy 
requirements that flow down to subrecipients at lower tiers below DoD 
awards.
4. General Terms and Conditions Addressing National Policy Requirements
    The fourth in the sequence of six NPRM documents proposes a new 2 
CFR part 1122 on national policy requirements. National policy 
requirements are those in areas such as nondiscrimination, the 
environment, and labor standards that originate in Federal statutes, 
Executive orders, or regulations. The proposed new part specifies a 
standard organization of general terms and conditions addressing 
national policy requirements into four articles. It also provides 
standard wording of terms and conditions for national policy 
requirements that are commonly applicable to DoD Components' grants and 
cooperative agreements. This standard format and wording are for DoD 
Components' awards to all types of recipient entities, including for-
profit and other entities not subject to the Governmentwide guidance in 
2 CFR part 200 to the extent that the national policy requirements 
apply to them.
5. Definitions
    The fifth NPRM in this sequence proposes a new 2 CFR part 1108 with 
definitions of terms to be used throughout all portions of the DoDGARs 
in chapter XI of title 2 of the CFR other than the portion containing 
regulations implementing specific national policy requirements that 
provide their own definitions of terms. Examples of the latter 
regulations are DoD implementations of nonprocurement suspension and 
debarment, lobbying, and drug-free workplace requirements.
6. Conforming Amendments to Parts of the DoDGARs in Title 32 of the CFR
    The final NPRM in this sequence removes two existing parts of the 
DoDGARs in subchapter C, chapter I of title 32 of the CFR. The two 
parts removed are 32 CFR part 32, which was the DoD implementation of 
the 1993 issuance of OMB Circular A-110, and 32 CFR part 33, which was 
DoD's adoption of the common rule implementing OMB Circular A-102. The 
parts are proposed for removal because OMB's issuance of the new 
Governmentwide guidance in 2 CFR part 200 superseded both of those 
circulars. That final NPRM in this issue of the Federal Register also 
proposes amendments to other parts of the DoDGARs that will remain for 
now in title 32 of the CFR, in order to: (1) Conform them to the 
proposed new DoDGARs parts in Title 2 of the CFR that are described in 
sections II.C.1 through 5 of this Supplementary Information section; 
and (2) update other outdated references and make other minor changes 
that are needed.

III. Future Steps

    DoD will complete the remaining needed updates of the DoDGARs in a 
subsequent set of proposals for public comment. Those proposals will 
focus on portions of the DoDGARs that specify pre-award and time-of-
award requirements for DoD Component awarding offices and post-award 
requirements for DoD administering offices. All portions of the DoDGARs 
remaining in chapter I, subchapter C of title 32 of the CFR will be 
relocated at that time to chapter XI of title 2 of the CFR, with any 
updating that may be needed.

IV. Regulatory Analysis

Executive Order 12866, ``Regulatory Planning and Review,'' and 
Executive Order 13563, ``Improving Regulation and Regulatory Review''

    Executive Order 12866, as supplemented by Executive Order 13563, 
directs each Federal agency to: Propose regulations only after 
determining that benefits justify costs; tailor regulations to minimize 
burdens on society, consistent with achieving regulatory objectives; 
maximize net benefits when selecting among regulatory approaches; 
specify performance objectives, to the extent feasible, rather than the 
behavior or manner of compliance; and seek the views of those likely to 
be affected before issuing a notice of proposed rulemaking, where 
feasible and appropriate. The Department of Defense has determined that 
a regulatory implementation of 2 CFR part 200 that includes standard 
wording of general terms and conditions for DoD Components' grant and 
cooperative agreement awards will maximize long-term benefits in 
relation to costs and burdens for recipients of those awards. In 
providing--for the first time--uniformity across research and other 
awards, the approach will benefit institutions of higher education and 
other types of recipients that receive awards from diverse defense 
programs and numerous DoD Component awarding offices. The Department 
informally consulted representatives of the most affected recipient 
community during development of this regulatory proposal. This rule has 
been designated a ``significant regulatory action'' under section 3(f) 
of Executive Order 12866, although not an economically

[[Page 78359]]

significant one. Accordingly, the rule has been reviewed by OMB.

Unfunded Mandates Reform Act of 1995

    Section 202 of the Unfunded Mandates Reform Act of 1995 (Unfunded 
Mandates Act) (2 U.S.C. 1532) requires that a Federal agency prepare a 
budgetary impact statement before issuing a rule that includes any 
Federal mandate that may result in the expenditure in any one year by 
State, local, and tribal governments, in the aggregate, or by the 
private sector, of $100 million or more in 1995 dollars, updated 
annually for inflation. In 2015, that inflation-adjusted amount in 
current dollars is approximately $146 million. The Department of 
Defense has determined that this proposed regulatory action will not 
result in expenditures by State, local, and tribal governments, or by 
the private sector, of that amount or more in any one year.

Regulatory Flexibility Act

    The Regulatory Flexibility Act requires an agency that is proposing 
a rule to provide a regulatory flexibility analysis or to certify that 
the rule will not have a significant economic impact on a substantial 
number of small entities. The Department of Defense certifies that this 
proposed regulatory action will not have a significant economic impact 
on substantial number of small entities beyond any impact due to 
provisions of it that implement OMB guidance at 2 CFR part 200.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35; 5 CFR part 1320, appendix A.1) (PRA), the Department of 
Defense has determined that there are no new collections of information 
contained in this proposed regulatory action.

Executive Order 13132, ``Federalism''

    Executive Order 13132 establishes certain requirements that an 
agency must meet when it proposes a regulation that has Federalism 
implications. This proposed regulatory action does not have any 
Federalism implications.

List of Subjects in 2 CFR Parts 1103, 1104, and 1125

    Business and industry, Colleges and universities, Cooperative 
agreements, Grants administration, Hospitals, Indians, Nonprofit 
organizations, Small business, State and local governments.

    Accordingly, under the authority of 5 U.S.C. 301 and 10 U.S.C. 113, 
2 CFR chapter XI is proposed to be amended as follows:

PART 1103--[REMOVED]

0
1. Part 1103 is removed.
0
2. Subchapter A to chapter XI, consisting of parts 1100 through 1109, 
is added to read as follows:

Subchapter A--General Matters and Definitions

PARTS 1100-1103--[RESERVED]

PART 1104--REVISED INTERIM IMPLEMENTATION OF GOVERNMENTWIDE 
GUIDANCE FOR GRANTS AND COOPERATIVE AGREEMENTS

Sec.
1104.1 Purpose of this part.
1104.100 Format of DoD Components' grant and cooperative agreement 
awards.
1104.105 Regulations governing DoD Components' general terms and 
conditions.
1104.110 Regulations governing DoD Components' award-specific terms 
and conditions.
1104.115 Regulations governing DoD Components' internal procedures.
1104.120 Definitions.

    Authority:  5 U.S.C. 301 and 10 U.S.C. 113.


Sec.  1104.1  Purpose of this part.

    This part provides an update to the DoD interim implementation of 
OMB guidance in 2 CFR part 200. It supersedes the initial interim 
implementation of that guidance that DoD adopted in 2 CFR part 1103 on 
December 19, 2014.


Sec.  1104.100  Format of DoD Components' grant and cooperative 
agreement awards.

    DoD Components must conform the format of new grant and cooperative 
agreement awards to the standard format specified by part 1120 of the 
DoD Grant and Agreement Regulations (2 CFR part 1120). The standard 
format provides locations within the award for:
    (a) General terms and conditions, including the administrative and 
national policy requirements discussed in Sec.  1104.105(a) and (b), 
respectively.
    (b) Any award-specific terms and conditions discussed in Sec.  
1104.110.


Sec.  1104.105  Regulations governing DoD Components' general terms and 
conditions.

    (a) Administrative requirements. On an interim basis pending 
completion of the update of the DoD Grant and Agreement Regulations to 
implement Office of Management and Budget (OMB) guidance published in 2 
CFR part 200, the following regulatory provisions govern the 
administrative requirements to be included in general terms and 
conditions of DoD Components' new awards:
    (1) The provisions of parts 1126 through 1138 of the DoD Grant and 
Agreement Regulations (2 CFR parts 1126 through 1138, which comprise 
subchapter D of this chapter) govern the administrative requirements to 
be included in the general terms and conditions of DoD Components' new 
grant and cooperative agreement awards to institutions of higher 
education, nonprofit organizations, States, local governments, and 
Indian tribes.
    (2) Part 34 of the DoD Grant and Agreement Regulations (32 CFR part 
34) governs the administrative requirements to be included in general 
terms and conditions of DoD Components' new grant and cooperative 
agreement awards to for-profit entities.
    (b) National policy requirements. Part 1122 of the DoD Grant and 
Agreement Regulations (2 CFR part 1122) governs the national policy 
requirements to be included in DoD Components' new grant and 
cooperative agreement awards to all entities.


Sec.  1104.110  Regulations governing DoD Components' award-specific 
terms and conditions.

    On an interim basis pending completion of the update of the DoD 
Grant and Agreement Regulations to implement Office of Management and 
Budget (OMB) guidance published in 2 CFR part 200:
    (a) The guidance in 2 CFR part 200 governs administrative 
requirements to be included in any award-specific terms and conditions 
used to supplement the general terms and conditions of a new grant or 
cooperative agreement award to an institution of higher education, 
nonprofit organization, State, local government, or Indian tribe.
    (b) Part 34 of the DoD Grant and Agreement Regulations (32 CFR part 
34) governs the administrative requirements to be included in any 
award-specific terms and conditions of DoD Components' new grant and 
cooperative agreement awards to for-profit entities.


Sec.  1104.115  Regulations governing DoD Components' internal 
procedures.

    On an interim basis pending completion of the update of the DoD 
Grant and Agreement Regulations to implement Office of Management and 
Budget (OMB) guidance published in 2 CFR part 200, DoD Components' 
internal pre-award, time-of-award, and post-award procedures will 
continue to comply with requirements in parts 21 and 22 of the DoD 
Grant and Agreement Regulations (32 CFR parts 21 and 22).


Sec.  1104.120  Definitions.

    (a) DoD Grant and Agreement Regulations means the regulations in

[[Page 78360]]

chapter I, subchapter C of title 32, Code of Federal Regulations, and 
chapter XI of title 2, Code of Federal Regulations.
    (b) Other terms. See part 1108 of the DoD Grant and Agreement 
Regulations for definitions of other terms used in this part.

PARTS 1105-1109--[RESERVED]

0
3. Subchapter B to chapter XI, consisting of parts 1110 through 1119, 
is added and reserved to read as follows:

Subchapter B--[RESERVED]

PARTS 1110-1119--[RESERVED]

0
4. Subchapter C to chapter XI, consisting of parts 1120 through 1125, 
is added to read as follows:

Subchapter C--Award Format and National Policy Terms and Conditions for 
All Grants and Cooperative Agreements

PART 1120-1124--[RESERVED]

PART 1125--[TRANSFERRED TO SUBCHAPTER C]

0
5. Part 1125 is transferred to subchapter C.
0
6. Subchapter D to chapter XI, consisting of parts 1126 through 1140, 
is added to read as follows:

Subchapter D--Administrative Requirements Terms and Conditions for 
Cost-Type Grant and Cooperative Agreement Awards to Nonprofit and 
Governmental Entities

PART 1126-1140--[RESERVED]

0
7. Subchapter E to chapter XI, consisting of parts 1141 through 1155, 
is added and reserved to read as follows:

Subchapter E--[RESERVED]

PART 1141-1155--[RESERVED]

0
8. Subchapter F to chapter XI, consisting of parts 1156 through 1170, 
is added and reserved to read as follows:

Subchapter F--[RESERVED]

PART 1156-1170--[RESERVED]

0
9. Subchapter G to chapter XI, consisting of parts 1171 through 1199, 
is added and reserved to read as follows:

Subchapter G--[RESERVED]

PART 1171-1199--[RESERVED]

    Dated: October 19, 2016.
Aaron Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2016-25702 Filed 11-4-16; 8:45 am]
 BILLING CODE 5001-06-P