81 FR 78442 - DoD Grant and Agreement Regulations
DEPARTMENT OF DEFENSE
Office of the Secretary Federal Register Volume 81, Issue 215 (November 7, 2016)
Office of the Secretary
Federal Register Volume 81, Issue 215 (November 7, 2016)
| Page Range | 78442-78453 | |
| FR Document | 2016-25717 |
[Federal Register Volume 81, Number 215 (Monday, November 7, 2016)] [Proposed Rules] [Pages 78442-78453] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-25717] ----------------------------------------------------------------------- DEPARTMENT OF DEFENSE Office of the Secretary 32 CFR Parts 21, 22, 32, 33, 34, and 37 [DOD-2016-OS-0055] RIN 0790-AJ50 DoD Grant and Agreement Regulations AGENCY: Office of the Secretary, DoD. ACTION: Proposed rule. ----------------------------------------------------------------------- SUMMARY: This notice of proposed rulemaking (NPRM) is the last in a sequence of six NPRM documents in this Federal Register that collectively establishes for DoD grants and cooperative agreements an updated interim implementation of Governmentwide guidance on administrative requirements, cost principles, and audit requirements for Federal awards and make other needed updates to the DoD Grant and Agreement Regulations (DoDGARs). This NPRM removes two existing DoDGARs parts and revises four others in order to conform them with the 11 parts of the DoDGARs proposed in the NPRMs preceding this one in this section of this Federal Register. 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 received 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 As explained in the Supplementary Information section of the first of the sequence of six NPRMs in this section of this Federal Register, these NPRMs collectively make a major portion of the updates to the Department of Defense Grant and Agreement Regulations (DoDGARs) that are needed in order to implement OMB guidance at 2 CFR part 200 and for other purposes. The first five NPRMs in the sequence propose eleven new DoDGARs parts located in chapter XI of title 2 of the Code of Federal Regulations (CFR), which will ultimately be the location in the CFR for all of the DoDGARs. This sixth and final NPRM in the sequence proposes conforming changes to the portion of the DoDGARs that will remain for an interim period in subchapter C of chapter I of title 32 of the CFR, which is where all of the DoDGARs were originally located. A second round of DoDGARs updates to be proposed for comment in the future will relocate the [[Page 78443]] content of the remaining portion of the DoDGARs from title 32 to title 2 of the CFR. The conforming changes proposed by this NPRM are essential to ensuring internal consistency within the DoDGARs during this interim period of transition. 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 This NPRM proposes to remove two of the eight DoDGARs parts currently located in subchapter C of chapter I of 32 CFR, revise four parts in that subchapter, and make no changes to the other two parts. Specifically, it: Removes existing DoDGARs parts 32 and 33 (32 CFR parts 32 and 33). Section I.B.1 of this Supplementary Information section provides further information about the proposed removal of parts 32 and 33. Revises existing DoDGARs parts 21, 22, 34, and 37 (32 CFR parts 21, 22, 34, and 37). Section I.B.2 of this Supplementary Information section describes some of the more significant revisions to those four parts that: (1) Update outdated references; and (2) eliminate internal inconsistencies between the portion of the DoDGARs that will remain in 32 CFR for an interim period and the new DoDGARs parts in chapter XI of 2 CFR that are proposed in the five NPRMs preceding this one in this Federal Register. Makes no revisions to existing DoDGARs parts 26 and 28 (32 CFR parts 26 and 28). Part 26 is the part in which DoD adopted a Governmentwide common rule on drug-free workplace requirements for financial assistance awards. Part 28 is the part in which it adopted the Governmentwide common rule implementing statutory restrictions on lobbying. There are no changes needed in either of these parts in order to conform them with the DoDGARs parts proposed in the other NPRMs in this section of this Federal Register. The drug-free workplace requirements and lobbying restrictions in these parts ultimately will be relocated from 32 CFR to chapter XI of 2 CFR. 1. Removal of DoDGARs Parts 32 and 33 Part 32 of the DoDGARs (32 CFR part 32) is the CFR part in which DoD implemented OMB Circular A-110, which governed the administrative requirements for grant and cooperative agreement awards to institutions of higher education, hospitals, and other nonprofit organizations. Part 33 is the part in which DoD adopted the Governmentwide common rule implementing OMB Circular A-102, which governed the administrative requirements for grant and cooperative agreement awards to States, local governments, and Indian tribal governments. Both Circulars A-110 and A-102 were superseded by Governmentwide guidance for grants and cooperative agreements that OMB issued at 2 CFR part 200, ``Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.'' DoD therefore issued an interim final rule, pending updates to the DoDGARs to implement that OMB guidance, on December 19, 2014, at 2 CFR part 1103, to: (1) Direct DoD Components to conform requirements for recipients in their award terms and conditions with those in 2 CFR part 200,; and (2) grant a deviation from the administrative requirements in DoDGARs parts 32 and 33. The third and fourth of the six NPRMs in this section of today's Federal Register propose new DoDGARs parts that take the next major step in the interim implementation of the OMB guidance. They do so by establishing standard wording of general terms and conditions for awards to institutions of higher education, nonprofit organizations, States, local governments, and Indian tribes, including terms and conditions addressing administrative requirements. This NPRM's proposed removal of DoDGARs parts 32 and 33 from title 32 of the CFR precludes any apparent conflict between the administrative requirements in parts 32 and 33 and the administrative requirements in the proposed new DoDGARs parts addressing general terms and conditions. 2. Revisions to DoDGARs Parts 21, 22, 34, and 37 Since the proposed new parts of the DoDGARs to be created in 2 CFR chapter XI supersedes parts 32 and 33 of 32 CFR, various references to parts 32 and 33 found in the remaining parts 21, 22, 34, and 37 of 32 CFR must be updated to their new locations in 2 CFR chapter XI. Related changes are necessary to eliminate other internal inconsistencies between parts 21, 22, 34, and 37 and the new proposed parts of the DoDGARs in Chapter XI that implement 2 CFR part 200. The following are examples of these latter types of changes: Replacing references to the superseded OMB Circulars A-21, A-87, A-89, A-102, A-110, A-122, and A-133 with the new locations in 2 CFR part 200. Removing Appendix B to 32 CFR part 22 that provided suggested award provisions for national policy requirements that often apply as they are superseded by the requirements in the proposed 2 CFR part 1122. Removing appendix C to 32 CFR part 22 that discussed administrative requirements and issues to be addressed in award terms and conditions as they are superseded by the requirements in the proposed parts in Subchapter D of 2 CFR chapter XI. Removing 32 CFR 22.610 that covered requirements for the content of awards as those requirements are superseded by 2 CFR part 1120. The amendatory language in this notice updates other references and language in these remaining parts that are not related to the deletion of parts 32 and 33 or generally to the implementation of the guidance at 2 CFR part 200. Some of these changes are necessary mainly to conform these four remaining parts of the DoDGARs in 32 CFR to statutes, regulations, or policy that were issued, revised, or repealed subsequent to the last revision of those parts. The following are examples of such changes: Removing references to the separate internal DoD document for the DoDGARs issued under DoD 3210.6-R. Previously, the DoD published the DoDGARs in both the CFR and a separate internal DoD document. The separate internal document was cancelled by the February 6, 2014 update to DoD Directive 3210.06. This directive establishes policy and assigns responsibilities for the Defense Grant and Agreement Regulatory System (DGARS) and, as a part of this system, provides for DoD Components' use of the policies and procedures in the DoDGARs. Replacing the outdated references to Director of Defense Research and Engineering (DDR&E) with Assistant Secretary of Defense for Research and Engineering (ASD(R&E)). Replacing references to the Excluded Parties List System (EPLS) with the System for Award Management (SAM). Replacing the references to the Director of Information, Operations and Reports, Washington Headquarters [[Page 78444]] Services (DIOR, WHS), which was the entity previously responsible for reporting Catalog of Federal Domestic Assistance (CFDA) program information to OMB and GSA and for operating the Defense Assistance Awards Data System (DAADS), with the DAADS Administrator, which is a function that is now part of the Defense Manpower Data Center. Revising the requirements related to when DoD Components must report obligating actions to DAADS from quarterly reporting to reporting each individual obligating action within 15 days after action execution. This change is necessary to allow sufficient time for the DAADS System Administrator to comply with Federal Funding Accountability and Transparency Act reporting requirements. Because they generally derive from the same source requirements, revising the contract provisions in appendix A to part 34, which applies to for-profit organizations, to align with the contract provisions for national policy requirements proposed in 2 CFR part 1132, which applies to States, local governments, Indian tribes, institutions of higher education, and nonprofit organizations. The amended appendix A to part 34 includes 10 of the 11 national policy requirements proposed in 2 CFR part 1132. In addition to several revisions to the national policy requirements previously included in this appendix to part 34, there are also three additional national policy requirements proposed for inclusion in this appendix that are commonly applicable to certain types of contracts issued by for-profit recipients. Since appendix B to 32 CFR part 22 is proposed for removal under this NPRM, incorporating language in appendices D and E to part 37 related to national policy requirements for Technology Investment Agreements (TIAs) that was previously only incorporated into part 37 by reference to appendix B of 32 CFR part 22. Other changes to appendices D and E to part 37 include: (1) Incorporating language that generally requires DoD Components to use the standard wording found in 2 CFR part 1122 for the terms and conditions of those national policy requirements that are applicable to TIAs; (2) updating the description of the scope of the equal employment opportunity requirements (41 CFR chapter 60) referenced in Section C of appendix D; (3) incorporating language into Section C of appendix D related to the National Environmental Policy Act and other environmental requirements by referencing appendix B of the proposed 2 CFR part 1122; (4) incorporating an additional national policy requirement (Archaeological and Historic Preservation Act of 1974) in Section C of appendix D that applies in certain circumstances; and (5) also incorporating the three national policy requirements added to appendix A of part 34 in Section C of appendix E. Removing from various locations in 32 CFR part 37 a requirement in 10 U.S.C. 2371 that is no longer in effect to report annually to Congress information on cooperative agreements or transactions other than contracts, cooperative agreements, and grants that employ certain provisions of 10 U.S.C. 2371. C. Costs and Benefits The primary benefit of the regulatory action proposed in this NPRM results from allowing DoD to more quickly implement the portions of OMB's Governmentwide guidance on uniform administrative requirements, cost principles, and audit requirements that have an impact on its grant and cooperative agreement terms and conditions. If DoD were to wait until all parts of the DoDGARs affected by OMB's uniform guidance were revised before proposing them for public comment, it would delay the implementation of the portion of OMB's uniform guidance most directly affecting States, local governments, Indian tribes, institutions of higher education, and nonprofit organizations. Therefore, this NPRM proposes conforming changes, updating of references, and other minor changes and technical corrections in four of the existing parts of DoDGARs in title 32 until all remaining parts can be fully implemented in 2 CFR chapter XI at a later date. Thus, the administrative burdens and associated costs to recipients due to the regulatory action proposed in this NPRM are essentially the same as those resulting from the Governmentwide guidance to agencies contained in 2 CFR part 200. However, two of the proposed changes in this NPRM, not directly related to the implementation of 2 CFR part 200, provide notable benefits and reductions in costs to recipients. The first of those two changes relates to the audit requirements for grants and agreements with for-profit organizations, which are found in 32 CFR part 34. Although this part is not subject to the guidance in 2 CFR part 200, it was modeled on administrative requirements for grants and agreements with institutions of higher education, hospitals, and other non-profit organizations found in the superseded OMB Circular A-110. This NPRM proposes an increase to the dollar threshold at which for-profit organizations are required to receive an annual audit. Currently, 32 CFR 34.16 requires for-profit organizations to have an independent auditor perform an audit in a year in which it expends $500,000 or more under Federal awards. This regulatory action proposes to increase that threshold from $500,000 to $750,000 to parallel the threshold for States, local governments, Indian tribes, institutions of higher education, and nonprofit organizations located in 2 CFR 200.501. This threshold increase is expected to reduce administrative burden to for-profit organizations, as well as to decrease the associated costs to those organizations and to the Government. The other of those two proposed changes relates to the part of the DoDGARs dealing with TIAs, 32 CFR part 37. This change benefits DoD Components and reduces costs by removing from this regulation a requirement in 10 U.S.C. 2371 that is no longer in effect to report annually to Congress information on cooperative agreements or transactions other than contracts, cooperative agreements, and grants that employ certain provisions of 10 U.S.C. 2371. Public Law 113-291 removed this annual reporting requirement from 10 U.S.C. 2371. II. 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; to the extent feasible, specify performance objectives 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 this regulatory implementation, which includes proposed changes that largely conform existing parts of the DoDGARs to the new proposed parts implementing 2 CFR part 200, will maximize long-term benefits in relation to costs and burdens for recipients of those awards in the same fashion as those resulting from that Governmentwide guidance to agencies. [[Page 78445]] This rule has been designated a ``significant regulatory action'' under section 3(f) of Executive Order 12866, although not an economically 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 32 CFR Parts 21, 22, 32, 33, 34, and 37 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, 32 CFR chapter I, subchapter C is proposed to be amended as follows: PART 21--[AMENDED] 0 1. The authority citation for part 21 continues to read as follows: Authority: 5 U.S.C. 301 and 10 U.S.C. 113. Sec. 21.215 [Amended] 0 2. Section 21.215 is amended by removing ``Director of Defense Research and Engineering'' and adding ``Assistant Secretary of Defense for Research and Engineering (ASD(R&E))'' in its place. 0 3. Section 21.220 is revised to read as follows: Sec. 21.220 What publications are in the DGARS? The DoD Grant and Agreement Regulations comprise the principal element of the DGARS. The ASD(R&E) also may publish DGARS policies and procedures in DoD instructions and other DoD publications, as appropriate. 0 4. Section 21.300 is amended by: 0 a. In paragraph (a), removing ``subpart D'' and adding ``subpart F'' in its place; and 0 c. Revising paragraph (b). The revision reads as follows: Sec. 21.300 What instruments are subject to the DoD Grant and Agreement Regulations (DoDGARs)? * * * * * (b) Note that each portion of the DoDGARs identifies the types of instruments to which it applies. * * * * * Sec. 21.320 [Amended] 0 5. Section 21.320 is amended by removing paragraph (d). 0 6. Revise Sec. 21.330 to read as follows: Sec. 21.330 How are the DoDGARs published and maintained? (a) The DoD publishes the DoDGARs in the Code of Federal Regulations (CFR). (b) The location of the DoDGARs in the CFR currently is in transition. The regulations are moving from chapter I, subchapter C, title 32, to a new location in chapter XI, title 2 of the CFR. During the transition, there will be some parts of the DoDGARs in each of the two titles. (c) The DoD publishes updates to the DoDGARs in the Federal Register for public comment. (d) A standing working group recommends revisions to the DoDGARs to the ASD(R&E). The ASD(R&E), Director of Defense Procurement, and each Military Department must be represented on the working group. Other DoD Components that make or administer awards may also nominate representatives. The working group meets when necessary. 0 7. Section 21.335 is amended by revising paragraph (b) to read as follows: Sec. 21.335 Who can authorize deviations from the DoDGARs? * * * * * (b) The ASD(R&E) or his or her designee must approve in advance any deviation for a class of awards. Note that, as described at 2 CFR 1126.3, OMB concurrence also is required for some class deviations from requirements included in awards to institutions of higher education, nonprofit organizations, States, local governments, and Indian tribes. 0 8. Section 21.340 is amended by revising paragraph (a) to read as follows: Sec. 21.340 What are the procedures for requesting and documenting deviations? (a) DoD Components must submit copies of justifications and agency approvals for individual deviations and written requests for class deviations to: Principal Deputy Assistant Secretary of Defense for Research and Engineering, ATTN: Basic Research, 3030 Defense Pentagon, Washington, DC 20301-3030. * * * * * Sec. 21.505 [Amended] 0 9. Section 21.505 is amended by removing ``domestic assistance programs'' and adding ``assistance programs'' in its place. Sec. 21.510 [Amended] 0 10. Section 21.510 is amended by: 0 a. Removing ``OMB Circular A-89'' and adding ``OMB guidance at 2 CFR 200.202'' in its place; 0 b. Removing ``domestic assistance programs'' and adding ``assistance programs'' in its place; 0 c. Removing ``and maintaining the Federal Assistance Programs Retrieval System, a computerized data base of the information''; and 0 d. Removing footnote 4. 0 11. Section 21.515 is revised to read as follows: Sec. 21.515 Who reports the information for the CFDA? (a) Each DoD Component that provides financial assistance must: (1) Report to the Defense Assistance Awards Data System (DAADS) Administrator all new programs and changes as they occur or as the DoD Component submits its annual updates to existing CFDA information. DAADS is further described in Sec. Sec. 21.520 through 21.555. [[Page 78446]] (2) Identify to the DAADS Administrator a point-of-contact who will be responsible for reporting the program information and for responding to inquiries related to it. (b) The DAADS Administrator is the Department of Defense's single liaison with whom DoD Components that collect and compile such program information work to report the information to the OMB and GSA. 0 12. Section 21.520 is amended by revising paragraph (b) to read as follows: Sec. 21.520 What are the purposes of the Defense Assistance Awards Data System (DAADS)? * * * * * (b) A basis for meeting Governmentwide requirements to report to USASpending.gov (or any successor site designated by OMB) and for preparing other recurring and special reports to the President, the Congress, the Government Accountability Office, and the public. * * * * * Sec. 21.525 [Amended] 0 13. Section 21.525 is amended by removing ``Deputy Director, Defense Research and Engineering (DDDR&E)'' and adding ``Principal Deputy Assistant Secretary of Defense for Research and Engineering (PDASD(R&E))'' in its place. 0 14. Section 21.530 is revised to read as follows: Sec. 21.530 Who operates the DAADS? (a) The Defense Manpower Data Center operates and maintains the DAADS for the ASD(R&E). (b) The DAADS Administrator, consistent with guidance issued by the PDASD(R&E): (1) Processes DAADS information twice a month and prepares recurring and special reports using such information. (2) Prepares, updates, and disseminates instructions for reporting information to the DAADS. The instructions are to specify procedures, formats, and editing processes to be used by DoD Components, including record layout, submission deadlines, media, methods of submission, and error correction schedules. Sec. 21.535 [Amended] 0 15. Section 21.535 is amended in paragraph (d) by removing ``to the DIOR, WHS, at the address given in Sec. 21.555(a). DIOR, WHS serves as the central point'' and adding ``to the DAADS administrator. The DAADS Administrator serves as the central point'' in its place. 0 16. Section 21.540 is amended by revising paragraphs (b) and (c) to read as follows: Sec. 21.540 What are the duties of the DoD Components' central points for the DAADS? * * * * * (b) Collect information required by the DAADS User Guide from those contracting activities, and report it to the DAADS Administrator, in accordance with Sec. Sec. 21.545 through 21.555. Note that the DAADS User Guide, which a registered DAADS user may find at the Resources section of the DAADS Web site (https://www.dmdc.osd.mil/daads/), provides further information about required data elements and instructions for submitting data. (c) Submit to the DAADS Administrator any recommended changes to the DAADS. 0 17. Section 21.555 is revised to read as follows: Sec. 21.555 When and how must DoD Components report to the DAADS? DoD Components must report: (a) Each obligating or deobligating action no later than 15 days after the date of the obligation or deobligation. Doing so enables DAADS to comply with the deadline in the Federal Funding Accountability and Transparency Act of 2006 (Pub. L. 109-282; 31 U.S.C. 6101 note) to report to the Governmentwide data system (USASpending.gov) established to implement requirements of that Act. (b) Using a method and in a format permitted either by the DAADS User Guide described in Sec. 21.540(b) or by agreement with the DAADS Administrator. Sec. 21.565 [Amended] 0 18. Section 21.565 is amended by: 0 a. Redesignating footnote number 6 as footnote number 2; and 0 b. Removing ``Director for Basic Sciences, ODDR&E'' and adding ``Director for Basic Research, OASD(R&E)'' in its place. 0 19. Appendix A is revised to read as follows: Appendix A to Part 21--Instruments To Which DoDGARs Portions Apply I. For each DoDGARs part that DoD already has adopted in chapter XI of title 2 of the Code of Federal Regulations (CFR), the following table summarizes the general subject area that the part addresses and its applicability. All of the DoDGARs ultimately will be located in chapter XI of 2 CFR. ------------------------------------------------------------------------ which addresses . DoDGARs . . . . . applies to . . . ------------------------------------------------------------------------ Part 1104..................... DoD's interim grants and implementation cooperative of the OMB agreements other guidance in 2 than TIAs. CFR part 200. Part 1108 (2 CFR part 1108)... Definitions of terms used throughout terms. the DoDGARs in chapter XI of 2 CFR other than the portion containing regulations implementing specific national policy requirements that provide their own definitions of terms. Part 1120 (2 CFR part 1120)... Award format..... grants and cooperative agreements, other than TIAs. Part 1122 (2 CFR part 1122)... National policy grants and requirements cooperative general award agreements other terms and than TIAs. Portions conditions. of this part apply to TIAs, but only as 32 CFR part 37 refers to them and makes them apply. Part 1125 (2 CFR part 1125)... Governmentwide nonprocurement debarment and generally, including suspension grants, cooperative requirements. agreements, TIAs, and any other instruments that are ``covered transactions'' under OMB guidance in 2 CFR 180.210 and 180.215, as implemented by 2 CFR part 1125, except acquisition transactions to carry out prototype projects (see 2 CFR 1125.20). Parts 1126, 1128, 1130, 1132, Administrative cost-type grants and 1134, 1136, and 1138 Requirements cooperative (subchapter D of 2 CFR Terms and agreements other chapter XI). Conditions for than TIAs. Portions Cost[dash]type of this subchapter Awards to apply to TIAs, but Nonprofit and only as 32 CFR part Governmental 37 refers to them Entities. and makes them apply. ------------------------------------------------------------------------ [[Page 78447]] II. For each DoDGARs part that will remain in subchapter C of chapter I of title 32 of the CFR, pending completion of the DoDGARs updating needed to fully implement OMB guidance in 2 CFR part 200 and for other purposes, the following table summarizes the general subject area that the part addresses and its applicability. All of the substantive content of these DoDGARs parts ultimately will be located in new parts in chapter XI of 2 CFR. ------------------------------------------------------------------------ which addresses . DoDGARs . . . . . applies to . . . ------------------------------------------------------------------------ Part 21 (32 CFR part 21), all The Defense Grant ``awards,'' which are but subparts D and E. and Agreement grants, cooperative Regulatory agreements, System and the technology DoD Grant and investment Agreement agreements (TIAs), Regulations. and other nonprocurement instruments subject to one or more parts of the DoDGARs. Part 21 (32 CFR part 21), Authorities and grants, cooperative subpart D. responsibilities agreements, and for assistance TIAs. award and administration. Part 21 (32 CFR part 21), DoD Components' grants, cooperative subpart E. information agreements, TIAs, reporting and other requirements. nonprocurement instruments subject to reporting requirements in 31 U.S.C. chapter 61. Part 22 (32 CFR part 22)...... DoD grants grants and officers' cooperative responsibilities agreements other for award and than TIAs. Portions administration of this part apply of grants and to TIAs, but only as cooperative 32 CFR part 37 agreements. refers to them and makes them apply. Part 26 (32 CFR part 26)...... Governmentwide grants, cooperative drug[dash]free agreements and other workplace financial assistance requirements. instruments, including TIAs, that are included in the definition of ``award'' at 32 CFR 26.605. Part 28 (32 CFR part 28)...... Governmentwide grants, cooperative restrictions on agreements and other lobbying. financial assistance instruments, including TIAs, that are included in the definitions of ``Federal grant'' and ``Federal cooperative agreement'' at 32 CFR 28.105. Part 34 (32 CFR part 34)...... Administrative grants and requirements for cooperative grants and agreements other agreements with than TIAs for[dash]profit (``award,'' as organizations. defined in 32 CFR 34.2). Portions of this part apply to TIAs, but only as 32 CFR part 37 refers to them and makes them apply. Part 37 (32 CFR part 37)...... Agreements TIAs. Note that this officers' part refers to other responsibilities portions of DoDGARs for award and that apply to TIAs. administration of TIAs. ------------------------------------------------------------------------ PART 22--[Amended] 0 20. The authority citation for part 22 continues to read as follows: Authority: 5 U.S.C. 301 and 10 U.S.C. 113. 0 21. Section 22.100 is revised to read as follows: Sec. 22.100 Purpose. This part outlines grants officers' and DoD Components' responsibilities related to the award and administration of grants and cooperative agreements. Sec. 22.220 [Amended] 0 22. Section 22.220 is amended by: 0 a. In paragraph (a)(2), removing ``Director of Defense Research and Engineering (DDR&E)'' and adding ``Assistant Secretary of Defense for Research and Engineering (ASD(R&E))'' in its place; and 0 b. In paragraph (b), removing ``DDR&E'' everywhere it appears and adding ``ASD(R&E)'' in its place. Sec. 22.310 [Amended] 0 23. Section 22.310 is amended in paragraph (b)(1)(iii) by removing ``Deputy Director, Defense Research and Engineering'' and adding ``Principal Deputy Assistant Secretary of Defense for Research and Engineering'' in its place. Sec. 22.315 [Amended] 0 24. Section 22.315 is amended in paragraph (a)(3) by removing ``http://www.FedGrants.gov'' and adding ``http://www.Grants.gov'' in its place. Sec. 22.325 [Removed] 0 25. Section 22.325 is removed. Sec. 22.405 [Amended] 0 26. Section 22.405 is amended in paragraph (b) by removing ``32 CFR 32.14, 33.12, or 34.4'' and adding ``32 CFR 34.4 for awards to for- profit organizations or as described in OMB guidance at 2 CFR 200.207 for awards to institutions of higher education, nonprofit organizations, States, local governments, and Indian tribes'' in its place. 0 27. Section 22.420 is amended by revising paragraphs (b)(1), (c)(1) introductory text, and (c)(1)(ii) to read as follows: Sec. 22.420 Pre-award procedures. * * * * * (b) * * * (1) Should the grants officer in a particular case decide that a pre-award credit report, audit, or survey is needed, he or she should consult first with the appropriate grants administration office (identified in Sec. 22.710), and decide whether pre-existing surveys or audits of the recipient, such as those of the recipient's internal control systems under OMB guidance in subpart F of 2 CFR part 200, will satisfy the need (see Sec. 22.715(a)(1)). * * * * * (c) * * * (1) Is not identified in the Exclusions area of the System for Award Management (SAM Exclusions) as being debarred, suspended, or otherwise ineligible to receive the award (SAM is at www.sam.gov). In addition to being a requirement for every new award, note that checking SAM Exclusions also is a requirement for subsequent obligations of additional funds, such as incremental funding actions, in the case of pre-existing awards to institutions of higher education, as described at Sec. 22.520(e)(5). The grants officer's responsibilities include (see the OMB guidance at 2 CFR 180.425 and 180.430, as implemented by the Department of Defense at 2 CFR 1125.425) checking SAM Exclusions for: * * * * * (ii) A recipient's principals (as defined in OMB guidance at 2 CFR 180.995, implemented by the Department of Defense in 2 CFR part 1125), potential recipients of subawards, and principals of those potential subaward recipients, if DoD Component approval of those principals or lower-tier recipients is required under the terms of the award. * * * * * 0 28. Section 22.505 is revised to read as follows: Sec. 22.505 Purpose. The purpose of this subpart is to supplement other regulations that [[Page 78448]] implement national policy requirements, to the extent that it is necessary to provide additional guidance to DoD grants officers. 0 29. Section 22.510 is amended by revising paragraph (b) to read as follows: Sec. 22.510 Certifications, representations, and assurances. * * * * * (b) Representations and assurances. Many national policies, either in statute or in regulation, require recipients of grants and cooperative agreements to make representations or provide assurances (rather than certifications) that they are in compliance with the policies. Part 1122 of the DoDGARs (2 CFR part 1122) provides standard wording of general award terms and conditions to address several of the more commonly applicable national policy requirements. These terms and conditions may be used to obtain required assurances and representations for national policy matters covered in part 1122 at the time of award, which is as effective and more efficient and less administratively burdensome than obtaining them at the time of each proposal. If any other assurances or representations must be obtained at the time of proposal, grants officers should use the most efficient method for doing so--e.g., for a program that has a program announcement and applications using the standard application form (SF- 424 \5\), the program announcement should include the texts of the required assurances and representations and clearly state that the applicant's electronic signature of the SF-424 will serve to affirm its agreement with each representation or assurance. \5\ For copies of Standard Forms listed in this part, contact regional grants administration offices of the Office of Naval Research. Addresses for the offices are listed in the ``Federal Directory of Contract Administration Services (CAS) Components,'' which may be accessed through the Defense Contract Management Agency homepage at: http://www.dcma.mil. 0 30. Section 22.520 is amended by: 0 a. In paragraph (d)(2): 0 i. Removing ``Director of Defense Research and Engineering'' and adding ``Assistant Secretary of Defense for Research and Engineering'' in its place. 0 ii. Removing ``Director for Basic Sciences, ODUSD(LABS)'' and adding ``Director for Basic Research, OASD(R&E)'' in its place. 0 b. Revising paragraph (e)(1). 0 c. In paragraph (e)(5) introductory text, removing ``on the EPLS'' and adding ``in SAM Exclusions'' in its place. 0 d. In paragraph (e)(5)(i): 0 i. Removing ``check the EPLS'' and adding ``check SAM Exclusions'' in its place. 0 ii. Removing ``an institution's EPLS listing'' and adding ``an institution's SAM Exclusions listing'' in its place. 0 e. In paragraph (e)(5)(iii)(A), removing ``removed from the EPLS'' and adding ``removed from SAM Exclusions'' in its place. The revision reads as follows: Sec. 22.520 Campus access for military recruiting and Reserve Officer Training Corps (ROTC). * * * * * (e) Grants officers' responsibility. (1) A grants officer shall not award any grant or cooperative agreement to an institution of higher education that has been identified pursuant to the procedures of 32 CFR part 216. Such institutions are identified as being ineligible in the Exclusions area of the System for Award Management (SAM Exclusions). The exclusion types in SAM Exclusions broadly indicate the nature of an institution's ineligibility, as well as the effect of the exclusion, and the Additional Comments field may have further details about the exclusion. Note that OMB guidance in 2 CFR 180.425 and 180.430, as implemented by the Department of Defense at 2 CFR part 1125, require a grants officer to check the SAM Exclusions prior to determining that a recipient is qualified to receive an award. * * * * * 0 31. Section 22.605 is amended by: 0 a. Revising the introductory text and paragraphs (a) and (b). 0 b. In paragraph (c)(2), redesignating footnote number 9 as footnote number 6 and revising newly redesignated footnote 6. The revisions read as follows: Sec. 22.605 Grants officers' responsibilities. At the time of award, the grants officer is responsible for ensuring that: (a) The award: (1) Conforms to the award format specified in 2 CFR part 1120. (2) Includes appropriate general terms and conditions and any program-specific and award-specific terms and conditions needed to specify applicable administrative, national policy, and programmatic requirements. These requirements include: (i) Federal statutes or Executive orders that apply broadly to Federal or DoD grants and cooperative agreements; and (ii) Any requirements specific to the program, as prescribed in the program statute (see Sec. 22.210(a)(2)), or specific to the funding, as stated in pertinent Congressional appropriations (see Sec. 22.515). (b) Information about the award is reported to the Defense Assistance Award Data System (DAADS), in accordance with Subpart E of 32 CFR part 21. (c) * * * (2) * * * \6\ See footnote 5 to Sec. 22.510(b). Sec. 22.610 [Removed] 0 32. Section 22.610 is removed. Sec. 22.700 [Amended] 0 33. Section 22.700 is amended by removing ``32 CFR parts 32, 33, and 34'' and adding ``32 CFR part 34 and subchapter D of 2 CFR chapter XI'' in its place. 0 34. Section 22.710 is amended by: 0 a. In the introductory text, redesignating footnote number 10 as footnote number 7 and revising newly redesignated footnote 7; 0 b. In paragraph (a)(1): 0 i. Removing ``the university cost principles in OMB Circular A-21'' and adding ``the cost principles in subpart E of 2 CFR part 200'' in its place; 0 ii. Removing footnote 11; 0 c. In paragraph (a)(2): 0 i. Removing ``OMB Circular A-122'' and adding ``subpart E of 2 CFR part 200'' in its place; 0 ii. Removing footnote 12; 0 d. In paragraph (b) introductory text, removing ``Defense Contract Management Command'' and adding ``Defense Contract Management Agency'' in its place; 0 e. In paragraph (b)(2), removing ``Attachment C of OMB Circular A-122'' and adding ``appendix VIII to 2 CFR part 200'' in its place; and 0 f. In paragraph (b)(3), removing ``OMB Circular A-122'' and adding ``subpart E of 2 CFR part 200'' in its place. The revision reads as follows: Sec. 22.710 Assignment of grants administration offices. * * * * * \7\ The ``Federal Directory of Contract Administration Services (CAS) Components'' may be accessed through the Defense Contract Management Agency homepage at http://www.dcma.mil. * * * * * 0 35. Section 22.715 is amended by: 0 a. In paragraph (a)(1) and paragraph (a)(3) introductory text, removing ``OMB Circular A-133'' and adding ``subpart F of 2 CFR part 200'' in its place. 0 b. In paragraph (a)(3)(iii): 0 i. Removing ``OMB Circular A-133, as implemented at 32 CFR 32.26 and 33.26'' and adding ``subpart F of 2 CFR part 200, as implemented at subpart E of 2 CFR part 1128'' in its place. [[Page 78449]] 0 ii. Removing ``400 Army-Navy Drive, Arlington, VA 22202'' and adding ``4800 Mark Center Drive, Alexandria, VA 22350-1500'' in its place. 0 c. In paragraph (a)(4): 0 i. Removing ``DoD Directive 7640.2'' and adding ``DoD Instruction 7640.02'' in its place. 0 ii. Removing ``DoD Directive 7600.10'' and adding ``DoD Instruction 7600.10'' in its place. 0 iii. Redesignating footnote numbers 13 and 14 as footnote numbers 8 and 9, respectively, and revising newly redesignated footnote 9. Sec. 22.715 Grants administration office functions. * * * * * (a) * * * (4) * * * \9\ See footnote 8 to this section. * * * * * 0 36. Section 22.805 is amended by revising the introductory text and paragraph (a) to read as follows: Sec. 22.805 Post-award requirements in other parts. Grants officers responsible for post-award administration of grants and cooperative agreements shall administer such awards in accordance with the following parts of the DoDGARs, as supplemented by this subpart: (a) Awards to domestic recipients. Standard administrative requirements for grants and cooperative agreements with domestic recipients are specified in other parts of the DoDGARs, as follows: (1) For awards to domestic institutions of higher education, nonprofit organizations, States, local governments, and Indian tribes, requirements are specified in subchapter D of 2 CFR chapter XI. (2) For awards to domestic for-profit organizations, requirements are specified in 32 CFR part 34. * * * * * 0 37. Section 22.810 is amended by: 0 a. Revising paragraphs (b)(1) and (2). 0 b. Removing and reserving paragraph (c)(1). 0 c. In paragraph (c)(3)(i), redesignating footnote number 15 as footnote number 10 and revising newly redesignated footnote 10. 0 d. In paragraph (c)(3)(iii), removing ``ensure that the recipients' Taxpayer Identification Number (TIN)'' and adding ``ensure that, for recipients not required to register in the System for Award Management, the recipients' Taxpayer Identification Number (TIN)'' in its place. The revisions read as follows: Sec. 22.810 Payments. * * * * * (b) Policy. (1) It is Governmentwide policy to minimize the time elapsing between any payment of funds to a recipient and the recipient's disbursement of the funds for program purposes. (2) It also is a Governmentwide requirement to use electronic funds transfer (EFT) in the payment of any grant unless the recipient has obtained a waiver in accordance with Department of the Treasury regulations at 31 CFR part 208. As a matter of DoD policy, this requirement applies to cooperative agreements, as well as grants. Within the Department of Defense, the Defense Finance and Accounting Service implements this EFT requirement, and grants officers have collateral responsibilities at the time of award, as described in Sec. 22.605(c), and in postaward administration, as described in paragraph (c)(3)(iv) of this section. * * * * * (c) * * * (3) * * * (i) * * * \10\ See footnote 8 to Sec. 22.715(a)(4). * * * * * 0 38. Section 22.825 is amended by: 0 a. Revising paragraph (a). 0 b. In paragraph (b)(2)(ii), removing ``OMB Circular A-133, where that Circular is applicable'' and adding ``OMB guidance in subpart F of 2 CFR part 200, where that guidance is applicable'' in its place. The revision reads as follows: Sec. 22.825 Closeout audits. (a) Purpose. This section establishes DoD policy for obtaining audits at closeout of individual grants and cooperative agreements. * * * * * APPENDIX B TO PART 22--[REMOVED] 0 39. Appendix B to part 22 is removed. APPENDIX C TO PART 22--[REMOVED] 0 40. Appendix C to part 22 is removed. PART 32--[REMOVED] 0 41. Under the authority of 5 U.S.C. 301 and 10 U.S.C. 113, part 32 is removed. PART 33--[REMOVED] 0 42. Under the authority of 5 U.S.C. 301 and 10 U.S.C. 113, part 33 is removed. PART 34--[Amended] 0 43. The authority citation for part 34 continues to read as follows: Authority: 5 U.S.C. 301 and 10 U.S.C. 113. Sec. 34.1 [Amended] 0 44. Section 34.1 is amended in paragraph (b)(2)(ii) by removing ``(e.g., 32 CFR part 33 specifies requirements for subrecipients that are States or local governments, and 32 CFR part 32 contains requirements for universities or other nonprofit organizations)''. 0 45. Section 34.2 is amended by revising the definition of ``Small award'' to read as follows: Sec. 34.2 Definitions. * * * * * Small award. See the definition for this term in 2 CFR part 1108. * * * * * Sec. 34.3 [Amended] 0 46. Section 34.3 is amended in paragraph (c) by removing ``Director, Defense Research and Engineering'' and adding ``Assistant Secretary of Defense for Research and Engineering'' in its place. 0 47. Section 34.12 is amended in paragraph (d) by revising footnote 1 to read as follows: Sec. 34.12 Payment. * * * * * (d) * * * \1\ For copies of Standard Forms listed in this part, contact regional grants administration offices of the Office of Naval Research. Addresses for the offices are listed in the ``Federal Directory of Contract Administration Services (CAS) Components,'' which is available through the ``CAS Directory'' link at the Defense Contract Management Agency homepage (http://www.dcma.mil). * * * * * Sec. 34.15 [Amended] 0 48. Section 34.15 is amended in paragraph (c)(3)(i) by removing ``$100,000'' and adding ``the simplified acquisition threshold'' in its place. Sec. 34.16 [Amended] 0 49. Section 34.16 is amended by: 0 a. In paragraph (a), removing ``$500,000'' and adding ``$750,000'' in its place; and 0 b. In paragraph (d)(2)(ii): 0 i. In the second sentence, removing ``Defense Contract Management Command (DCMC)'' and adding ``Defense Contract Management Agency (DCMA)'' in its place; and 0 ii. In the third sentence, removing ``DCMC'' and adding ``DCMA'' in its place. [[Page 78450]] 0 50. Section 34.17 is amended by revising paragraph (b) to read as follows: Sec. 34.17 Allowable costs. * * * * * (b) Other types of organizations. Allowability of costs incurred by other types of organizations that may be subrecipients under a prime award to a for-profit organization is determined as follows: (1) Institutions of higher education, nonprofit organizations, States, local governments, and Indian tribes. Allowability is determined in accordance with the cost principles in subpart E of OMB guidance in 2 CFR part 200. Note that 2 CFR 200.401(c) provides that a nonprofit organization listed in appendix VIII to 2 CFR part 200 is subject to the FAR and DFARS cost principles specified in paragraph (a)(1) of this section for for-profit organizations. (2) Hospitals. Allowability is determined in accordance with the cost principles identified in appendix IX to 2 CFR part 200 (currently 45 CFR part 75). Sec. 34.41 [Amended] 0 51. Section 34.41 is amended in the introductory text by removing ``32 CFR 32.51 and 32.52'' and adding ``subparts A and B of 2 CFR part 1134'' in its place. 0 52. Appendix A to part 34 is amended by: 0 a. In paragraph 2, removing ``40 U.S.C. 276c'' and adding ``40 U.S.C. 3145'' in its place. 0 b. In paragraph 3, removing ``40 U.S.C. 327-333'' in both places it appears and adding ``40 U.S.C., chapter 37'' in their places. 0 c. In paragraph 5, removing ``$100,000'' and adding ``$150,000'' in its place. 0 d. Revising paragraph 7. 0 e. Adding paragraphs 8 through 10. The revision and additions read as follows: Appendix A to Part 34--Contract Provisions * * * * * 7. Debarment and Suspension (E.O.s 12549 and 12689)--A contract award with an amount expected to equal or exceed $25,000 and certain other contract awards (see 2 CFR 1125.220, which implements OMB guidance at 2 CFR 180.220) shall not be made to parties identified in the Exclusions area of the System for Award Management (SAM Exclusions) as being currently debarred, suspended, or otherwise excluded. This restriction is in accordance with the DoD adoption at 2 CFR part 1125 of the OMB guidance implementing E.O.s 12549 (3 CFR, 1986 Comp., p. 189) and 12689 (3 CFR, 1989 Comp., p. 235), ``Debarment and Suspension.'' 8. Wage Rate Requirements (Construction), formerly the Davis Bacon Act. When required by Federal program legislation, you must take the following actions with respect to each construction contract for more than $2,000 to be awarded using funding provided under this award: a. Place in the solicitation under which the contract will be awarded a copy of the current prevailing wage determination issued by the Department of Labor; b. Condition the decision to award the contract upon the contractor's acceptance of that prevailing wage determination; c. Include in the contract the clauses specified at 29 CFR 5.5(a) in Department of Labor regulations (29 CFR part 5, ``Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction'') to require the contractor's compliance with the Wage Rate Requirements (Construction), as amended (40 U.S.C. 3141-44, 3146, and 3147); and d. Report all suspected or reported violations to the award administration office identified in this award. 9. Fly America requirements. In each contract under which funds provided under this award might be used to participate in costs of international air travel or transportation for people or property, you must include a clause to require the contractor to: a. Comply with the International Air Transportation Fair Competitive Practices Act of 1974 (49 U.S.C. 40118, also known as the ``Fly America'' Act), as implemented by the General Services Administration at 41 CFR 301-10.131 through 301-10.143, which provides that U.S Government financed international air travel and transportation of personal effects or property must use a U.S. Flag air carrier or be performed under a cost sharing arrangement with a U.S. carrier, if such service is available; and b. Include the requirements of the Fly America Act in all subcontracts that might involve international air transportation. 10. Cargo preference for United States flag vessels. In each contract under which equipment, material, or commodities may be shipped by oceangoing vessels, you must include the clause specified in Department of Transportation regulations at 46 CFR 381.7(b) to require that at least 50 percent of equipment, materials or commodities purchased or otherwise obtained with Federal funds under this award, and transported by ocean vessel, be transported on privately owned U.S. flag commercial vessels, if available. PART 37 [Amended] 0 53. The authority citation for part 37 continues to read as follows: Authority: 5 U.S.C. 301 and 10 U.S.C. 113. 0 54. Section 37.130 is amended by revising paragraph (c) to read as follows: Sec. 37.130 Which other parts of the DoD Grant and Agreement Regulations apply to TIAs? * * * * * (c) Portions of other DoDGARs parts apply to TIAs only as cited by reference in this part. Sec. 37.225 [Amended] 0 55. Section 37.225 is amended in the introductory text by removing ``In accordance with Sec. 37.1030, you will report your answers to these questions to help the DoD measure the Department-wide benefits of using TIAs and meet requirements to report to the Congress.'' and adding ``In accordance with Sec. 37.1020, you must document your answers to these questions in the award file.'' in its place. 0 56. Section 37.620 is revised to read as follows: Sec. 37.620 What financial management standards do I include for participants that are nonprofit? So as not to force system changes for any State, local government, institution of higher education, or other nonprofit organization, your expenditure-based TIA's requirements for the financial management system of any nonprofit participant are the same as those that apply to the participant's other Federal assistance awards. 0 57. Section 37.635 is revised to read as follows: Sec. 37.635 What cost principles do I require a nonprofit participant to use? So as not to force financial system changes for any nonprofit participant, your expenditure-based TIA will provide that costs to be charged to the research project by any nonprofit participant must be determined to be allowable in accordance with: (a) Subpart E of OMB guidance in 2 CFR part 200, if the participant is a State, local government, Indian tribe, institution of higher education, or nonprofit organization. In conformance with 2 CFR 200.401(c) of that OMB guidance, a nonprofit organization listed in appendix VIII to 2 CFR part 200 is subject to the cost principles in the Federal Acquisition Regulation (48 CFR subpart 31.2) and Defense Federal Acquisition Regulation Supplement (48 CFR subpart 231.2). (b) The cost principles identified in appendix IX to the OMB guidance in 2 CFR part 200 (see 45 CFR part 75), if the participant is a hospital. Sec. 37.645 [Amended] 0 58. Section 37.645 is amended in paragraph (b)(1) by removing ``$500,000'' and adding ``$750,000'' in its place. Sec. 37.650 [Amended] 0 59. Section 37.650 is amended in paragraph (c) by removing ``400 Army- [[Page 78451]] Navy Drive, Arlington, VA 22202'' and adding ``4800 Mark Center Drive, Alexandria, VA 22350-1500'' in its place. Sec. 37.660 [Amended] 0 60. Section 37.660 is amended by redesignating footnote number 4 as footnote number 2. 0 61. Section 37.665 is revised to read as follows: Sec. 37.665 Must I require nonprofit participants to have periodic audits? Yes, expenditure-based TIAs are assistance instruments subject to the Single Audit Act (31 U.S.C. 7501-7507), so nonprofit participants are subject to their usual requirements under that Act, as implemented by subpart F of 2 CFR part 200. Specifically, the requirements are the same as those in subpart E of 2 CFR part 1128 for grants and cooperative agreements to institutions of higher education, nonprofit organizations, States, local governments, and Indian tribes. Note that those requirements also apply to Federally Funded Research and Development Centers (FFRDCs) and other Government-owned, Contractor- Operated (GOCO) facilities administered by nonprofit organizations, because nonprofit FFRDCs and GOCOs are subject to the Single Audit Act. Sec. 37.675 [Removed] 0 62. Section 37.675 is removed. Sec. 37.680 [Removed] 0 63. Section 37.680 is removed. 0 64. Section 37.690 is revised to read as follows: Sec. 37.690 How are nonprofit participants to manage real property and equipment? For nonprofit participants, your TIA's requirements for vesting of title, use, management, and disposition of real property or equipment acquired under the award are the same as those that apply to the participant's other Federal assistance awards. 0 65. Section 37.695 is amended by: 0 a. Revising paragraph (b); and 0 b. Removing paragraph (c). The revision reads as follows: Sec. 37.695 What are the requirements for Federally owned property? * * * * * (b) The requirements that apply to the participant's other Federal awards, if it is an entity other than a for-profit firm. If the other Federal awards of a participant that is a GOCO or FFRDC administered by a nonprofit organization are procurement contracts, it is appropriate for you to specify the same property standards that apply to those Federal procurement contracts. 0 66. Section 37.710 is amended by revising paragraph (a) to read as follows: Sec. 37.710 What standards do I include for purchasing systems of nonprofit organizations? (a) So as not to force system changes for any nonprofit participant, your expenditure-based TIA will provide that each nonprofit participant's purchasing system comply with standards that conform as much as practicable with requirements that apply to the participant's other Federal awards. * * * * * Sec. 37.875 [Amended] 0 67. Section 37.875 is amended by redesignating footnote number 6 as footnote number 3. 0 68. Section 37.880 is revised to read as follows: Sec. 37.880 What requirements must I include for periodic reports on program and business status? Your TIA must include requirements that, as a minimum, include periodic reports addressing program and, if it is an expenditure-based award, business status. You must require submission of the reports at least annually, and you may require submission as frequently as quarterly (this does not preclude a recipient from electing to submit more frequently than quarterly the financial information that is required to process payment requests if the award is an expenditure- based TIA that uses reimbursement or advance payments under Sec. 37.810(a)). The requirements for the content of the reports are as follows: (a) The program portions of the reports must address progress toward achieving program performance goals, including current issues, problems, or developments. (b) The business portions of the reports, applicable only to expenditure-based awards, must provide summarized details on the status of resources (federal funds and non-federal cost sharing), including an accounting of expenditures for the period covered by the report. The report should compare the resource status with any payment and expenditure schedules or plans provided in the original award; explain any major deviations from those schedules; and discuss actions that will be taken to address the deviations. You may require a recipient to separately identify in these reports the expenditures for each participant in a consortium and for each programmatic milestone or task, if you, after consulting with the program official, judge that those additional details are needed for good stewardship. 0 69. Section 37.890 is amended by redesignating footnote number 7 as footnote number 4 and revising newly redesignated footnote 4 to read as follows: Sec. 37.890 Must I require a final performance report? * * * * * \4\ See footnote 3 to Sec. 37.875(b)(1). Sec. 37.895 [Amended] 0 70. Section 37.895 is amended by redesignating footnote number 8 as footnote number 5. 0 71. Section 37.920 is revised to read as follows: Sec. 37.920 What requirement for access to a nonprofit participant's records do I include in a TIA? Your TIA must include for any nonprofit participant, including any FFRDC or GOCO administered by a nonprofit organization, the standard access-to-records requirement that subpart B of 2 CFR part 1136 specifies in Section F of OAR Article II (the standard wording for Section F of OAR Article II is provided in appendix B to 2 CFR part 1136). Sec. 37.1000 [Amended] 0 72. Section 37.1000 is amended in paragraph (c) by removing ``Sec. Sec. 37.1025 through 37.1035'' and adding ``Sec. 37.1025'' in its place. Sec. 37.1010 [Amended] 0 73. Section 37.1010 is amended in paragraph (l) by removing ``and Sec. 37.680.'' Sec. 37.1030 [Removed] 0 74. Section 37.1030 is removed. Sec. 37.1035 [Removed] 0 75. Section 37.1035 is removed. Sec. 37.1040 [Removed] 0 76. Section 37.1040 is removed. Sec. 37.1100 [Amended] 0 77. Section 37.1100 is amended by removing paragraph (g). 0 78. Appendix D to part 37 is amended by revising Sections B and C to read as follows: Appendix D to Part 37--What Common National Policy Requirements May Apply and Need to be Included in TIAS? * * * * * B. Assurances That Apply to All TIAs DoD policy is to use a certification, as described in the preceding paragraph, only for a national policy requirement that specifically requires one. The usual approach to communicating other national policy [[Page 78452]] requirements to recipients is to incorporate them as award terms or conditions, or assurances. Part 1122 of 2 CFR lists national policy requirements that commonly apply to DoD grants and cooperative agreements. It also has standard wording of general terms and conditions to incorporate the requirements in award documents. Of those requirements, the following six apply to all TIAs. (Note that TIAs must generally use the standard wording in 2 CFR part 1122 for the terms and conditions of these six requirements, but not the standard format.) 1. Requirements concerning debarment and suspension in the OMB guidance in 2 CFR part 180, as implemented by the DoD at 2 CFR part 1125. The requirements apply to all nonprocurement transactions. 2. Requirements concerning drug-free workplace in the Governmentwide common rule that the DoD has codified at 32 CFR part 26. The requirements apply to all financial assistance. 3. Prohibitions on discrimination on the basis of race, color, or national origin in Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d, et seq.), as implemented by DoD regulations at 32 CFR part 195. These apply to all financial assistance. They require recipients to flow down the prohibitions to any subrecipients performing a part of the substantive research program (as opposed to suppliers from whom recipients purchase goods or services). 4. Prohibitions on discrimination on the basis of age, in the Age Discrimination Act of 1975 (42 U.S.C. 6101, et seq.). They apply to all financial assistance and require flow down to subrecipients, as implemented by Department of Health and Human Services regulations at 45 CFR part 90. 5. Prohibitions on discrimination on the basis of handicap, in section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), as implemented by Department of Justice regulations at 28 CFR part 41 and DoD regulations at 32 CFR part 56. They apply to all financial assistance recipients and require flow down to subrecipients. 6. Preferences for use of U.S.-flag air carriers in the International Air Transportation Fair Competitive Practices Act of 1974 (49 U.S.C. 40118), commonly referred to as the ``Fly America Act,'' and implementing regulations at 41 CFR 301-10.131 through 301-10.143, which apply to uses of U.S. Government funds. C. Other National Policy Requirements Additional national policy requirements may apply in certain circumstances, as follows: 1. If construction work is to be done under a TIA or its subawards, it is subject to the prohibitions in Executive Order 11246, as amended, on discrimination on the basis of race, color, religion, sex, sexual orientation, gender identity, or national origin. You must include the clause provided in 41 CFR 60-1.4(b) in any ``federally assisted construction contract'' (as defined in 41 CFR 60-1.3) under this award unless provisions of 41 CFR part 60-1 exempt the contract from the requirement. The clause will require the contractor to comply with equal opportunity requirements in 41 CFR chapter 60. 2. If the research involves human subjects or animals, it is subject to the applicable requirements identified in appendix C of 2 CFR part 1122. 3. If the research involves actions that may affect the human environment, it is subject to the requirements of the National Environmental Policy Act in paragraph A.4.a of NP Article II, which is found in appendix B of 2 CFR part 1122. It also may be subject to one or more of the other requirements in paragraphs A.4.b through A.4.f, A.5, and A.6 of NP Article II, which concern flood-prone areas, coastal zones, coastal barriers, wild and scenic rivers, underground sources of drinking water, endangered species, and marine mammal protection. 4. If the project may impact any property listed or eligible for listing on the National Register of Historic Places, it is subject to the National Historic Preservation Act of 1966 (54 U.S.C. 306108) as specified in paragraph 11.a of NP Article IV, which is found in appendix D of 2 CFR part 1122. 5. If the project has potential under this award for irreparable loss or destruction of significant scientific, prehistorical, historical, or archeological data, it is subject to the Archaeological and Historic Preservation Act of 1974 (54 U.S.C. Chapter 3125) as specified in paragraph 11.b of NP Article IV, which is found in appendix D of 2 CFR part 1122. 0 79. Appendix E to part 37 is revised to read as follows: Appendix E To Part 37--What Provisions May a Participant Need to Include When Purchasing Goods or Services Under a TIA? A. As discussed in Sec. 37.705, you must inform recipients of any national policy requirements that flow down to their purchases of goods or services (e.g., supplies or equipment) under their TIAs. Note that purchases of goods or services differ from subawards, which are for substantive research program performance. B. Appendix A to 32 CFR part 34 lists ten national policy requirements that commonly apply to firms' purchases under grants or cooperative agreements. Of those ten, two that apply to all recipients' purchases under TIAs are: 1. Byrd Anti-Lobbying Amendment (31 U.S.C. 1352). A contractor submitting a bid to the recipient for a contract award of $100,000 or more must file a certification with the recipient that it has not and will not use Federal appropriations for certain lobbying purposes. The contractor also must disclose any lobbying with non- Federal funds that takes place in connection with obtaining any Federal award. For further details, see 32 CFR part 28, the DoD's codification of the Governmentwide common rule implementing this amendment. 2. Debarment and suspension. A contract award with an amount expected to equal or exceed $25,000 and certain other contract awards (see 2 CFR 1125.220, which implements OMB guidance at 2 CFR 180.220) shall not be made to parties identified in the Exclusions area of the System for Award Management (SAM Exclusions) as being currently debarred, suspended, or otherwise excluded. This restriction is in accordance with the DoD adoption at 2 CFR part 1125 of the OMB guidance implementing E.O.s 12549 (3 CFR, 1986 Comp., p. 189) and 12689 (3 CFR, 1989 Comp., p. 235), ``Debarment and Suspension.'' C. The following requirements apply to recipient's purchases under TIAs in the situations specified below: 1. Equal Employment Opportunity. Although construction work should happen rarely under a TIA, the agreements officer in that case should inform the recipient that Department of Labor regulations at 41 CFR 60-1.4(b) prescribe a clause that must be incorporated into recipients' and subrecipients' construction contracts under their awards and subawards, respectively. Further details are provided in appendix B to part 22 of the DoDGARs (32 CFR part 22), in section b. under the heading ``Nondiscrimination.'' any ``federally assisted construction contract'' (as defined in 41 CFR 60-1.3) under the award unless provisions of 41 CFR part 60-1 exempt the contract from the requirement. The clause will require the contractor to comply with equal opportunity requirements in 41 CFR chapter 60. 2. Wage Rate Requirements (Construction), formerly the Davis Bacon Act. When required by Federal program legislation, you must take the following actions with respect to each construction contract for more than $2,000 to be awarded using funding provided under this award: a. Place in the solicitation under which the contract will be awarded a copy of the current prevailing wage determination issued by the Department of Labor; b. Condition the decision to award the contract upon the contractor's acceptance of that prevailing wage determination; c. Include in the contract the clauses specified at 29 CFR 5.5(a) in Department of Labor regulations (29 CFR part 5, ``Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction'') to require the contractor's compliance with the Wage Rate Requirements (Construction), as amended (40 U.S.C. 3141-44, 3146, and 3147); and d. Report all suspected or reported violations to the award administration office identified in this award. 3. Fly America requirements. In each contract under which funds provided under this award might be used to participate in costs of international air travel or transportation for people or property, you must include a clause to require the contractor to: a. Comply with the International Air Transportation Fair Competitive Practices Act of 1974 (49 U.S.C. 40118, also known as the ``Fly America'' Act), as implemented by the General Services Administration at 41 CFR 301-10.131 through 301-10.143, which provides that U.S Government financed international air travel and transportation of personal effects or property must use a U.S. Flag air carrier or be performed under a cost sharing arrangement with a U.S. carrier, if such service is available; and b. Include the requirements of the Fly America Act in all subcontracts that might involve international air transportation. [[Page 78453]] 4. Cargo preference for United States flag vessels. In each contract under which equipment, material, or commodities may be shipped by oceangoing vessels, you must include the clause specified in Department of Transportation regulations at 46 CFR 381.7(b) to require that at least 50 percent of equipment, materials or commodities purchased or otherwise obtained with Federal funds under this award, and transported by ocean vessel, be transported on privately owned U.S. flag commercial vessels, if available. Dated: October 19, 2016. Aaron Siegel, Alternate OSD Federal Register Liaison Officer, Department of Defense. [FR Doc. 2016-25717 Filed 11-4-16; 8:45 am] BILLING CODE 5001-06-P
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3. Property requirements. situations, a cost-type subaward that you NPRMs preceding this one in this
a. Federally owned property. If the make may authorize the subrecipient to use section of this Federal Register.
subrecipient will be accountable for federally fixed-amount subawards at the next lower
DATES: To ensure that they can be
owned property, you must include the tier in those same situations without our
property management system, use, and prior approval. considered in developing the final rule,
disposition requirements described in b. If you wish to allow a subrecipient of a comments must be received at either the
Sections C and F of SUB Article V that are cost-type subaward to use fixed-amount Web site or mailing address indicated
applicable to federally owned property. subawards at the next tier in other situations below by February 6, 2017.
b. Intangible property. You must include (i.e., situations in which this article requires ADDRESSES: You may submit comments
the applicable intangible property you to obtain our prior approval before using identified by docket number, or by
requirements described in Section G of SUB a fixed-amount type of subaward), your
Article V.
Regulatory Information Number (RIN)
subaward terms and conditions must require
4. Reporting requirements. You must and title, by either of the following
the subrecipient to submit a request through
include requirements for reporting that you you to obtain our prior approval for use of methods:
need in order to meet your responsibilities that type of subaward. The Web site: http://
under this award for reporting to us. 2. Subaward requirements. If your www.regulations.gov. Follow the
5. Other administrative requirements. subrecipient is authorized to use lower-tier instructions at that site for submitting
a. Integrity-related information. You must fixed-amount subawards, as described in comments.
include the substance of the provision in paragraphs 1.a and b of this section, your Mail: Department of Defense, Deputy
Section C of OAR Article I in any subaward subaward’s terms and conditions must: Chief Management Officer, Directorate
you make under this award. The provision a. Require the subrecipient, before it makes for Oversight and Compliance, 4800
must require the subrecipient’s disclosure of any lower-tier fixed-amount subaward, to:
any evidence directly to the Inspector
Mark Center Drive, ATTN: Box 24,
i. Ensure that the lower-tier transaction is Alexandria, VA 22350–1700.
General, DoD. a subaward, rather than a procurement, by
b. Records retention and access. Instructions: All submissions received
making the determination that SUB Article I
i. You must include the requirements for of this award requires you to make for your must include the agency name and
records retention and access in paragraph A.3 subawards. docket number or RIN for this Federal
and Sections B and F of OAR Article II, as ii. Conduct the pre-award risk assessment Register document. The general policy
applicable, if the subaward is to an of its intended subrecipient that Section B of for comments and other submissions
institution of higher education, nonprofit SUB Article II of this award requires you to from the public is to make the
organization, State, local government, or make for your subawards. submissions available for public
Indian tribe. You may not impose any other b. Include the requirements specified in viewing on the Internet at http://
records retention or access requirements on Sections A through F of this article.
the subrecipient. www.regulations.gov without change
ii. You must include the corresponding Dated: October 19, 2016. (i.e., as they are received, including any
requirements of 32 CFR 34.42 if the subaward Aaron Siegel, personal identifiers or contact
is to a for-profit entity. Alternate OSD Federal Register Liaison information).
c. Remedies and termination. You must Officer, Department of Defense. FOR FURTHER INFORMATION CONTACT:
include: [FR Doc. 2016–25701 Filed 11–4–16; 8:45 am] Wade Wargo, Basic Research Office,
i. The requirements concerning remedies
and termination that are described in BILLING CODE 5001–06–P telephone 571–372–2941.
paragraphs D.1 and 2 of SUB Article VIII; SUPPLEMENTARY INFORMATION:
ii. Provisions addressing any hearing and
DEPARTMENT OF DEFENSE I. Executive Summary
appeal rights the subrecipient has, as
described in Section E of SUB Article VIII; A. Purpose of the Regulatory Action
and Office of the Secretary
iii. Terms and conditions addressing 1. The Need for the Regulatory Action
adjustment of the amount of the subaward if 32 CFR Parts 21, 22, 32, 33, 34, and 37 and how the Action Meets That Need
it is terminated before the subrecipient As explained in the Supplementary
accomplishes all of the specified outcomes. [DOD–2016–OS–0055]
Information section of the first of the
d. Continuing responsibilities. You must RIN 0790–AJ50
include requirements concerning continuing sequence of six NPRMs in this section
responsibilities for audits and records of this Federal Register, these NPRMs
DoD Grant and Agreement Regulations
retention and access that are described in collectively make a major portion of the
paragraphs B.1 and 3 of OAR Article VII. AGENCY: Office of the Secretary, DoD. updates to the Department of Defense
e. Collection of amounts due. You should ACTION: Proposed rule. Grant and Agreement Regulations
consider including requirements concerning (DoDGARs) that are needed in order to
collection of amounts due, as described in SUMMARY: This notice of proposed implement OMB guidance at 2 CFR part
Section F of SUB Article VIII. rulemaking (NPRM) is the last in a 200 and for other purposes. The first
Section E. National policy requirements for
sequence of six NPRM documents in five NPRMs in the sequence propose
fixed-amount subawards. You must include
in the terms and conditions of each fixed- this Federal Register that collectively eleven new DoDGARs parts located in
amount subaward the national policy establishes for DoD grants and chapter XI of title 2 of the Code of
requirements that SUB Article IX of this cooperative agreements an updated Federal Regulations (CFR), which will
award specifies, as applicable. interim implementation of ultimately be the location in the CFR for
Section F. Subrecipient monitoring and Governmentwide guidance on all of the DoDGARs. This sixth and final
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other post-award administration. You must administrative requirements, cost NPRM in the sequence proposes
carry out the subrecipient monitoring and principles, and audit requirements for conforming changes to the portion of the
post-award administration actions specified Federal awards and make other needed DoDGARs that will remain for an
in SUB Article X, as applicable.
updates to the DoD Grant and interim period in subchapter C of
Section G. Fixed-amount subawards at
lower tiers. Agreement Regulations (DoDGARs). chapter I of title 32 of the CFR, which
1. Authority. This NPRM removes two existing is where all of the DoDGARs were
a. If Section B of this article authorizes you DoDGARs parts and revises four others originally located. A second round of
to use a fixed-amount type of subaward in order to conform them with the 11 DoDGARs updates to be proposed for
without our prior approval in some parts of the DoDGARs proposed in the comment in the future will relocate the
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This rule has been designated a Accordingly, under the authority of 5 represented on the working group.
‘‘significant regulatory action’’ under U.S.C. 301 and 10 U.S.C. 113, 32 CFR Other DoD Components that make or
section 3(f) of Executive Order 12866, chapter I, subchapter C is proposed to administer awards may also nominate
although not an economically be amended as follows: representatives. The working group
significant one. Accordingly, the rule meets when necessary.
has been reviewed by OMB. PART 21—[AMENDED] ■ 7. Section 21.335 is amended by
revising paragraph (b) to read as follows:
Unfunded Mandates Reform Act of 1995 ■ 1. The authority citation for part 21
continues to read as follows: § 21.335 Who can authorize deviations
Section 202 of the Unfunded from the DoDGARs?
Mandates Reform Act of 1995 Authority: 5 U.S.C. 301 and 10 U.S.C. 113.
(Unfunded Mandates Act) (2 U.S.C. * * * * *
§ 21.215 [Amended] (b) The ASD(R&E) or his or her
1532) requires that a Federal agency
■ 2. Section 21.215 is amended by designee must approve in advance any
prepare a budgetary impact statement
removing ‘‘Director of Defense Research deviation for a class of awards. Note
before issuing a rule that includes any
and Engineering’’ and adding ‘‘Assistant that, as described at 2 CFR 1126.3, OMB
Federal mandate that may result in the
Secretary of Defense for Research and concurrence also is required for some
expenditure in any one year by State,
Engineering (ASD(R&E))’’ in its place. class deviations from requirements
local, and tribal governments, in the
■ 3. Section 21.220 is revised to read as included in awards to institutions of
aggregate, or by the private sector, of
follows: higher education, nonprofit
$100 million or more in 1995 dollars,
organizations, States, local governments,
updated annually for inflation. In 2015, § 21.220 What publications are in the and Indian tribes.
that inflation-adjusted amount in DGARS?
■ 8. Section 21.340 is amended by
current dollars is approximately $146 The DoD Grant and Agreement revising paragraph (a) to read as follows:
million. The Department of Defense has Regulations comprise the principal
determined that this proposed element of the DGARS. The ASD(R&E) § 21.340 What are the procedures for
regulatory action will not result in also may publish DGARS policies and requesting and documenting deviations?
expenditures by State, local, and tribal procedures in DoD instructions and (a) DoD Components must submit
governments, or by the private sector, of other DoD publications, as appropriate. copies of justifications and agency
that amount or more in any one year. ■ 4. Section 21.300 is amended by: approvals for individual deviations and
Regulatory Flexibility Act ■ a. In paragraph (a), removing ‘‘subpart written requests for class deviations to:
D’’ and adding ‘‘subpart F’’ in its place; Principal Deputy Assistant Secretary of
The Regulatory Flexibility Act and Defense for Research and Engineering,
requires an agency that is proposing a ■ c. Revising paragraph (b). ATTN: Basic Research, 3030 Defense
rule to provide a regulatory flexibility The revision reads as follows: Pentagon, Washington, DC 20301–3030.
analysis or to certify that the rule will * * * * *
not have a significant economic impact § 21.300 What instruments are subject to
the DoD Grant and Agreement Regulations § 21.505 [Amended]
on a substantial number of small (DoDGARs)?
entities. The Department of Defense ■ 9. Section 21.505 is amended by
certifies that this proposed regulatory * * * * * removing ‘‘domestic assistance
action will not have a significant (b) Note that each portion of the programs’’ and adding ‘‘assistance
economic impact on substantial number DoDGARs identifies the types of programs’’ in its place.
of small entities beyond any impact due instruments to which it applies.
to provisions of it that implement OMB * * * * * § 21.510 [Amended]
guidance at 2 CFR part 200. ■ 10. Section 21.510 is amended by:
§ 21.320 [Amended] ■ a. Removing ‘‘OMB Circular A–89’’
Paperwork Reduction Act ■ 5. Section 21.320 is amended by and adding ‘‘OMB guidance at 2 CFR
removing paragraph (d). 200.202’’ in its place;
In accordance with the Paperwork
■ 6. Revise § 21.330 to read as follows: ■ b. Removing ‘‘domestic assistance
Reduction Act of 1995 (44 U.S.C.
Chapter 35; 5 CFR part 1320, appendix programs’’ and adding ‘‘assistance
§ 21.330 How are the DoDGARs published
A.1) (PRA), the Department of Defense and maintained? programs’’ in its place;
■ c. Removing ‘‘and maintaining the
has determined that there are no new (a) The DoD publishes the DoDGARs
collections of information contained in Federal Assistance Programs Retrieval
in the Code of Federal Regulations System, a computerized data base of the
this proposed regulatory action. (CFR). information’’; and
Executive Order 13132, ‘‘Federalism’’ (b) The location of the DoDGARs in ■ d. Removing footnote 4.
the CFR currently is in transition. The ■ 11. Section 21.515 is revised to read
Executive Order 13132 establishes regulations are moving from chapter I, as follows:
certain requirements that an agency subchapter C, title 32, to a new location
must meet when it proposes a regulation in chapter XI, title 2 of the CFR. During § 21.515 Who reports the information for
that has Federalism implications. This the transition, there will be some parts the CFDA?
proposed regulatory action does not of the DoDGARs in each of the two (a) Each DoD Component that
sradovich on DSK3GMQ082PROD with PROPOSALS2
have any Federalism implications. titles. provides financial assistance must:
(c) The DoD publishes updates to the (1) Report to the Defense Assistance
List of Subjects in 32 CFR Parts 21, 22,
DoDGARs in the Federal Register for Awards Data System (DAADS)
32, 33, 34, and 37
public comment. Administrator all new programs and
Business and Industry, Colleges and (d) A standing working group changes as they occur or as the DoD
universities, Cooperative agreements, recommends revisions to the DoDGARs Component submits its annual updates
Grants administration, Hospitals, to the ASD(R&E). The ASD(R&E), to existing CFDA information. DAADS
Indians, Nonprofit organizations, Small Director of Defense Procurement, and is further described in §§ 21.520 through
business, State and local governments. each Military Department must be 21.555.
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(2) Identify to the DAADS (1) Processes DAADS information (c) Submit to the DAADS
Administrator a point-of-contact who twice a month and prepares recurring Administrator any recommended
will be responsible for reporting the and special reports using such changes to the DAADS.
program information and for responding information. ■ 17. Section 21.555 is revised to read
to inquiries related to it. (2) Prepares, updates, and as follows:
(b) The DAADS Administrator is the disseminates instructions for reporting § 21.555 When and how must DoD
Department of Defense’s single liaison information to the DAADS. The Components report to the DAADS?
with whom DoD Components that instructions are to specify procedures,
collect and compile such program DoD Components must report:
formats, and editing processes to be (a) Each obligating or deobligating
information work to report the used by DoD Components, including
information to the OMB and GSA. action no later than 15 days after the
record layout, submission deadlines, date of the obligation or deobligation.
■ 12. Section 21.520 is amended by media, methods of submission, and
revising paragraph (b) to read as follows: Doing so enables DAADS to comply
error correction schedules. with the deadline in the Federal
§ 21.520 What are the purposes of the § 21.535 [Amended] Funding Accountability and
Defense Assistance Awards Data System Transparency Act of 2006 (Pub. L. 109–
(DAADS)? ■ 15. Section 21.535 is amended in 282; 31 U.S.C. 6101 note) to report to
* * * * * paragraph (d) by removing ‘‘to the DIOR, the Governmentwide data system
(b) A basis for meeting WHS, at the address given in (USASpending.gov) established to
Governmentwide requirements to report § 21.555(a). DIOR, WHS serves as the implement requirements of that Act.
to USASpending.gov (or any successor central point’’ and adding ‘‘to the (b) Using a method and in a format
site designated by OMB) and for DAADS administrator. The DAADS permitted either by the DAADS User
preparing other recurring and special Administrator serves as the central Guide described in § 21.540(b) or by
reports to the President, the Congress, point’’ in its place. agreement with the DAADS
the Government Accountability Office, ■ 16. Section 21.540 is amended by Administrator.
and the public. revising paragraphs (b) and (c) to read
§ 21.565 [Amended]
* * * * * as follows:
■ 18. Section 21.565 is amended by:
§ 21.525 [Amended] § 21.540 What are the duties of the DoD ■ a. Redesignating footnote number 6 as
Components’ central points for the footnote number 2; and
■ 13. Section 21.525 is amended by DAADS?
removing ‘‘Deputy Director, Defense ■ b. Removing ‘‘Director for Basic
Research and Engineering (DDDR&E)’’ * * * * * Sciences, ODDR&E’’ and adding
and adding ‘‘Principal Deputy Assistant (b) Collect information required by ‘‘Director for Basic Research,
Secretary of Defense for Research and the DAADS User Guide from those OASD(R&E)’’ in its place.
Engineering (PDASD(R&E))’’ in its place. contracting activities, and report it to ■ 19. Appendix A is revised to read as
■ 14. Section 21.530 is revised to read the DAADS Administrator, in follows:
as follows: accordance with §§ 21.545 through Appendix A to Part 21—Instruments To
21.555. Note that the DAADS User Which DoDGARs Portions Apply
§ 21.530 Who operates the DAADS? Guide, which a registered DAADS user
(a) The Defense Manpower Data may find at the Resources section of the I. For each DoDGARs part that DoD already
has adopted in chapter XI of title 2 of the
Center operates and maintains the DAADS Web site (https:// Code of Federal Regulations (CFR), the
DAADS for the ASD(R&E). www.dmdc.osd.mil/daads/), provides following table summarizes the general
(b) The DAADS Administrator, further information about required data subject area that the part addresses and its
consistent with guidance issued by the elements and instructions for submitting applicability. All of the DoDGARs ultimately
PDASD(R&E): data. will be located in chapter XI of 2 CFR.
DoDGARs . . . which addresses . . . applies to . . .
Part 1104 .................................. DoD’s interim implementation of the OMB grants and cooperative agreements other than TIAs.
guidance in 2 CFR part 200.
Part 1108 (2 CFR part 1108) .... Definitions of terms .......................................... terms used throughout the DoDGARs in chapter XI of 2 CFR
other than the portion containing regulations implementing
specific national policy requirements that provide their own
definitions of terms.
Part 1120 (2 CFR part 1120) .... Award format .................................................... grants and cooperative agreements, other than TIAs.
Part 1122 (2 CFR part 1122) .... National policy requirements general award grants and cooperative agreements other than TIAs. Portions
terms and conditions. of this part apply to TIAs, but only as 32 CFR part 37 re-
fers to them and makes them apply.
Part 1125 (2 CFR part 1125) .... Governmentwide debarment and suspension nonprocurement generally, including grants, cooperative
requirements. agreements, TIAs, and any other instruments that are
‘‘covered transactions’’ under OMB guidance in 2 CFR
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180.210 and 180.215, as implemented by 2 CFR part
1125, except acquisition transactions to carry out prototype
projects (see 2 CFR 1125.20).
Parts 1126, 1128, 1130, 1132, Administrative Requirements Terms and Con- cost-type grants and cooperative agreements other than
1134, 1136, and 1138 (sub- ditions for Cost-type Awards to Nonprofit TIAs. Portions of this subchapter apply to TIAs, but only as
chapter D of 2 CFR chapter and Governmental Entities. 32 CFR part 37 refers to them and makes them apply.
XI).
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II. For each DoDGARs part that will remain guidance in 2 CFR part 200 and for other content of these DoDGARs parts ultimately
in subchapter C of chapter I of title 32 of the purposes, the following table summarizes the will be located in new parts in chapter XI of
CFR, pending completion of the DoDGARs general subject area that the part addresses 2 CFR.
updating needed to fully implement OMB and its applicability. All of the substantive
DoDGARs . . . which addresses . . . applies to . . .
Part 21 (32 CFR part 21), all The Defense Grant and Agreement Regu- ‘‘awards,’’ which are grants, cooperative agreements, tech-
but subparts D and E. latory System and the DoD Grant and nology investment agreements (TIAs), and other non-
Agreement Regulations. procurement instruments subject to one or more parts of
the DoDGARs.
Part 21 (32 CFR part 21), sub- Authorities and responsibilities for assistance grants, cooperative agreements, and TIAs.
part D. award and administration.
Part 21 (32 CFR part 21), sub- DoD Components’ information reporting re- grants, cooperative agreements, TIAs, and other nonprocure-
part E. quirements. ment instruments subject to reporting requirements in 31
U.S.C. chapter 61.
Part 22 (32 CFR part 22) .......... DoD grants officers’ responsibilities for award grants and cooperative agreements other than TIAs. Portions
and administration of grants and coopera- of this part apply to TIAs, but only as 32 CFR part 37 re-
tive agreements. fers to them and makes them apply.
Part 26 (32 CFR part 26) .......... Governmentwide drug-free workplace require- grants, cooperative agreements and other financial assist-
ments. ance instruments, including TIAs, that are included in the
definition of ‘‘award’’ at 32 CFR 26.605.
Part 28 (32 CFR part 28) .......... Governmentwide restrictions on lobbying ........ grants, cooperative agreements and other financial assist-
ance instruments, including TIAs, that are included in the
definitions of ‘‘Federal grant’’ and ‘‘Federal cooperative
agreement’’ at 32 CFR 28.105.
Part 34 (32 CFR part 34) .......... Administrative requirements for grants and grants and cooperative agreements other than TIAs (‘‘award,’’
agreements with for-profit organizations. as defined in 32 CFR 34.2). Portions of this part apply to
TIAs, but only as 32 CFR part 37 refers to them and
makes them apply.
Part 37 (32 CFR part 37) .......... Agreements officers’ responsibilities for award TIAs. Note that this part refers to other portions of DoDGARs
and administration of TIAs. that apply to TIAs.
PART 22—[Amended] www.FedGrants.gov’’ and adding (c) * * *
‘‘http://www.Grants.gov’’ in its place. (1) Is not identified in the Exclusions
■ 20. The authority citation for part 22 area of the System for Award
continues to read as follows: § 22.325 [Removed] Management (SAM Exclusions) as being
Authority: 5 U.S.C. 301 and 10 U.S.C. 113. ■ 25. Section 22.325 is removed. debarred, suspended, or otherwise
■ 21. Section 22.100 is revised to read § 22.405 [Amended] ineligible to receive the award (SAM is
as follows: ■ 26. Section 22.405 is amended in at www.sam.gov). In addition to being a
paragraph (b) by removing ‘‘32 CFR requirement for every new award, note
§ 22.100 Purpose. that checking SAM Exclusions also is a
32.14, 33.12, or 34.4’’ and adding ‘‘32
This part outlines grants officers’ and CFR 34.4 for awards to for-profit requirement for subsequent obligations
DoD Components’ responsibilities organizations or as described in OMB of additional funds, such as incremental
related to the award and administration guidance at 2 CFR 200.207 for awards to funding actions, in the case of pre-
of grants and cooperative agreements. institutions of higher education, existing awards to institutions of higher
nonprofit organizations, States, local education, as described at § 22.520(e)(5).
§ 22.220 [Amended] The grants officer’s responsibilities
■ 22. Section 22.220 is amended by: governments, and Indian tribes’’ in its
place. include (see the OMB guidance at 2 CFR
■ a. In paragraph (a)(2), removing 180.425 and 180.430, as implemented
■ 27. Section 22.420 is amended by
‘‘Director of Defense Research and by the Department of Defense at 2 CFR
Engineering (DDR&E)’’ and adding revising paragraphs (b)(1), (c)(1)
introductory text, and (c)(1)(ii) to read 1125.425) checking SAM Exclusions for:
‘‘Assistant Secretary of Defense for
as follows: * * * * *
Research and Engineering (ASD(R&E))’’
(ii) A recipient’s principals (as
in its place; and § 22.420 Pre-award procedures. defined in OMB guidance at 2 CFR
■ b. In paragraph (b), removing
* * * * * 180.995, implemented by the
‘‘DDR&E’’ everywhere it appears and (b) * * * Department of Defense in 2 CFR part
adding ‘‘ASD(R&E)’’ in its place. (1) Should the grants officer in a 1125), potential recipients of subawards,
§ 22.310 [Amended] particular case decide that a pre-award and principals of those potential
credit report, audit, or survey is needed, subaward recipients, if DoD Component
■ 23. Section 22.310 is amended in
he or she should consult first with the approval of those principals or lower-
paragraph (b)(1)(iii) by removing
appropriate grants administration office
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‘‘Deputy Director, Defense Research and tier recipients is required under the
(identified in § 22.710), and decide terms of the award.
Engineering’’ and adding ‘‘Principal
whether pre-existing surveys or audits * * * * *
Deputy Assistant Secretary of Defense
of the recipient, such as those of the ■ 28. Section 22.505 is revised to read
for Research and Engineering’’ in its
recipient’s internal control systems as follows:
place.
under OMB guidance in subpart F of 2
§ 22.315 [Amended] CFR part 200, will satisfy the need (see § 22.505 Purpose.
■ 24. Section 22.315 is amended in § 22.715(a)(1)). The purpose of this subpart is to
paragraph (a)(3) by removing ‘‘http:// * * * * * supplement other regulations that
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implement national policy ■ d. In paragraph (e)(5)(i): Congressional appropriations (see
requirements, to the extent that it is ■ i. Removing ‘‘check the EPLS’’ and § 22.515).
necessary to provide additional adding ‘‘check SAM Exclusions’’ in its (b) Information about the award is
guidance to DoD grants officers. place. reported to the Defense Assistance
■ 29. Section 22.510 is amended by ■ ii. Removing ‘‘an institution’s EPLS Award Data System (DAADS), in
revising paragraph (b) to read as follows: listing’’ and adding ‘‘an institution’s accordance with Subpart E of 32 CFR
SAM Exclusions listing’’ in its place. part 21.
§ 22.510 Certifications, representations, ■ e. In paragraph (e)(5)(iii)(A), removing (c) * * *
and assurances. (2) * * *
‘‘removed from the EPLS’’ and adding
* * * * * ‘‘removed from SAM Exclusions’’ in its 6 See footnote 5 to § 22.510(b).
(b) Representations and assurances. place.
Many national policies, either in statute The revision reads as follows: § 22.610 [Removed]
or in regulation, require recipients of ■ 32. Section 22.610 is removed.
grants and cooperative agreements to § 22.520 Campus access for military
make representations or provide recruiting and Reserve Officer Training § 22.700 [Amended]
assurances (rather than certifications) Corps (ROTC). ■ 33. Section 22.700 is amended by
that they are in compliance with the * * * * * removing ‘‘32 CFR parts 32, 33, and 34’’
policies. Part 1122 of the DoDGARs (2 (e) Grants officers’ responsibility. (1) and adding ‘‘32 CFR part 34 and
CFR part 1122) provides standard A grants officer shall not award any subchapter D of 2 CFR chapter XI’’ in its
wording of general award terms and grant or cooperative agreement to an place.
conditions to address several of the institution of higher education that has ■ 34. Section 22.710 is amended by:
more commonly applicable national been identified pursuant to the ■ a. In the introductory text,
policy requirements. These terms and procedures of 32 CFR part 216. Such redesignating footnote number 10 as
conditions may be used to obtain institutions are identified as being footnote number 7 and revising newly
required assurances and representations ineligible in the Exclusions area of the redesignated footnote 7;
for national policy matters covered in System for Award Management (SAM ■ b. In paragraph (a)(1):
Exclusions). The exclusion types in ■ i. Removing ‘‘the university cost
part 1122 at the time of award, which
is as effective and more efficient and SAM Exclusions broadly indicate the principles in OMB Circular A–21’’ and
less administratively burdensome than nature of an institution’s ineligibility, as adding ‘‘the cost principles in subpart E
obtaining them at the time of each well as the effect of the exclusion, and of 2 CFR part 200’’ in its place;
the Additional Comments field may ■ ii. Removing footnote 11;
proposal. If any other assurances or
have further details about the exclusion. ■ c. In paragraph (a)(2):
representations must be obtained at the ■ i. Removing ‘‘OMB Circular A–122’’
time of proposal, grants officers should Note that OMB guidance in 2 CFR
180.425 and 180.430, as implemented and adding ‘‘subpart E of 2 CFR part
use the most efficient method for doing 200’’ in its place;
so—e.g., for a program that has a by the Department of Defense at 2 CFR
■ ii. Removing footnote 12;
program announcement and part 1125, require a grants officer to ■ d. In paragraph (b) introductory text,
applications using the standard check the SAM Exclusions prior to removing ‘‘Defense Contract
application form (SF–424 5), the determining that a recipient is qualified Management Command’’ and adding
program announcement should include to receive an award. ‘‘Defense Contract Management
the texts of the required assurances and * * * * * Agency’’ in its place;
representations and clearly state that the ■ 31. Section 22.605 is amended by: ■ e. In paragraph (b)(2), removing
applicant’s electronic signature of the ■ a. Revising the introductory text and ‘‘Attachment C of OMB Circular A–122’’
SF–424 will serve to affirm its paragraphs (a) and (b). and adding ‘‘appendix VIII to 2 CFR part
agreement with each representation or ■ b. In paragraph (c)(2), redesignating 200’’ in its place; and
assurance. footnote number 9 as footnote number 6 ■ f. In paragraph (b)(3), removing ‘‘OMB
5 For copies of Standard Forms listed in and revising newly redesignated Circular A–122’’ and adding ‘‘subpart E
this part, contact regional grants footnote 6. of 2 CFR part 200’’ in its place.
administration offices of the Office of Naval The revisions read as follows: The revision reads as follows:
Research. Addresses for the offices are listed
in the ‘‘Federal Directory of Contract § 22.605 Grants officers’ responsibilities. § 22.710 Assignment of grants
Administration Services (CAS) At the time of award, the grants administration offices.
Components,’’ which may be accessed officer is responsible for ensuring that: * * * * *
through the Defense Contract Management (a) The award: 7 The
‘‘Federal Directory of Contract
Agency homepage at: http://www.dcma.mil. (1) Conforms to the award format Administration Services (CAS) Components’’
■ 30. Section 22.520 is amended by: specified in 2 CFR part 1120. may be accessed through the Defense
■ a. In paragraph (d)(2): (2) Includes appropriate general terms Contract Management Agency homepage at
■ i. Removing ‘‘Director of Defense and conditions and any program- http://www.dcma.mil.
Research and Engineering’’ and adding specific and award-specific terms and * * * * *
‘‘Assistant Secretary of Defense for conditions needed to specify applicable ■ 35. Section 22.715 is amended by:
Research and Engineering’’ in its place. administrative, national policy, and ■ a. In paragraph (a)(1) and paragraph
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■ ii. Removing ‘‘Director for Basic programmatic requirements. These (a)(3) introductory text, removing ‘‘OMB
Sciences, ODUSD(LABS)’’ and adding requirements include: Circular A–133’’ and adding ‘‘subpart F
‘‘Director for Basic Research, (i) Federal statutes or Executive orders of 2 CFR part 200’’ in its place.
OASD(R&E)’’ in its place. that apply broadly to Federal or DoD ■ b. In paragraph (a)(3)(iii):
■ b. Revising paragraph (e)(1). grants and cooperative agreements; and ■ i. Removing ‘‘OMB Circular A–133, as
■ c. In paragraph (e)(5) introductory (ii) Any requirements specific to the implemented at 32 CFR 32.26 and
text, removing ‘‘on the EPLS’’ and program, as prescribed in the program 33.26’’ and adding ‘‘subpart F of 2 CFR
adding ‘‘in SAM Exclusions’’ in its statute (see § 22.210(a)(2)), or specific to part 200, as implemented at subpart E
place. the funding, as stated in pertinent of 2 CFR part 1128’’ in its place.
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■ ii. Removing ‘‘400 Army-Navy Drive, § 22.810 Payments. PART 34—[Amended]
Arlington, VA 22202’’ and adding ‘‘4800 * * * * *
Mark Center Drive, Alexandria, VA ■ 43. The authority citation for part 34
(b) Policy. (1) It is Governmentwide continues to read as follows:
22350–1500’’ in its place. policy to minimize the time elapsing
■ c. In paragraph (a)(4): between any payment of funds to a Authority: 5 U.S.C. 301 and 10 U.S.C. 113.
■ i. Removing ‘‘DoD Directive 7640.2’’ recipient and the recipient’s § 34.1 [Amended]
and adding ‘‘DoD Instruction 7640.02’’ disbursement of the funds for program
in its place. ■ 44. Section 34.1 is amended in
purposes. paragraph (b)(2)(ii) by removing ‘‘(e.g.,
■ ii. Removing ‘‘DoD Directive 7600.10’’ (2) It also is a Governmentwide
and adding ‘‘DoD Instruction 7600.10’’ 32 CFR part 33 specifies requirements
requirement to use electronic funds for subrecipients that are States or local
in its place. transfer (EFT) in the payment of any
■ iii. Redesignating footnote numbers 13
governments, and 32 CFR part 32
grant unless the recipient has obtained contains requirements for universities or
and 14 as footnote numbers 8 and 9, a waiver in accordance with Department
respectively, and revising newly other nonprofit organizations)’’.
of the Treasury regulations at 31 CFR ■ 45. Section 34.2 is amended by
redesignated footnote 9. part 208. As a matter of DoD policy, this revising the definition of ‘‘Small award’’
§ 22.715 Grants administration office requirement applies to cooperative to read as follows:
functions. agreements, as well as grants. Within
the Department of Defense, the Defense § 34.2 Definitions.
* * * * *
(a) * * * Finance and Accounting Service * * * * *
(4) * * * implements this EFT requirement, and Small award. See the definition for
grants officers have collateral this term in 2 CFR part 1108.
9 See footnote 8 to this section. responsibilities at the time of award, as * * * * *
* * * * * described in § 22.605(c), and in
■ 36. Section 22.805 is amended by postaward administration, as described § 34.3 [Amended]
revising the introductory text and in paragraph (c)(3)(iv) of this section. ■ 46. Section 34.3 is amended in
paragraph (a) to read as follows: * * * * * paragraph (c) by removing ‘‘Director,
(c) * * * Defense Research and Engineering’’ and
§ 22.805 Post-award requirements in other
adding ‘‘Assistant Secretary of Defense
parts. (3) * * *
for Research and Engineering’’ in its
Grants officers responsible for post- (i) * * * place.
award administration of grants and 10 See footnote 8 to § 22.715(a)(4). ■ 47. Section 34.12 is amended in
cooperative agreements shall administer paragraph (d) by revising footnote 1 to
* * * * *
such awards in accordance with the read as follows:
■ 38. Section 22.825 is amended by:
following parts of the DoDGARs, as
supplemented by this subpart: ■ a. Revising paragraph (a). § 34.12 Payment.
(a) Awards to domestic recipients. ■ b. In paragraph (b)(2)(ii), removing * * * * *
Standard administrative requirements ‘‘OMB Circular A–133, where that (d) * * *
for grants and cooperative agreements Circular is applicable’’ and adding 1 For copies of Standard Forms listed in
with domestic recipients are specified ‘‘OMB guidance in subpart F of 2 CFR this part, contact regional grants
in other parts of the DoDGARs, as part 200, where that guidance is administration offices of the Office of Naval
follows: applicable’’ in its place. Research. Addresses for the offices are listed
(1) For awards to domestic The revision reads as follows: in the ‘‘Federal Directory of Contract
institutions of higher education, Administration Services (CAS)
§ 22.825 Closeout audits. Components,’’ which is available through the
nonprofit organizations, States, local
(a) Purpose. This section establishes ‘‘CAS Directory’’ link at the Defense Contract
governments, and Indian tribes,
Management Agency homepage (http://
requirements are specified in DoD policy for obtaining audits at
www.dcma.mil).
subchapter D of 2 CFR chapter XI. closeout of individual grants and
(2) For awards to domestic for-profit cooperative agreements. * * * * *
organizations, requirements are * * * * *
§ 34.15 [Amended]
specified in 32 CFR part 34.
APPENDIX B TO PART 22— ■ 48. Section 34.15 is amended in
* * * * * [REMOVED] paragraph (c)(3)(i) by removing
■ 37. Section 22.810 is amended by:
39. Appendix B to part 22 is removed. ‘‘$100,000’’ and adding ‘‘the simplified
■ a. Revising paragraphs (b)(1) and (2). ■
acquisition threshold’’ in its place.
■ b. Removing and reserving paragraph
APPENDIX C TO PART 22—
(c)(1). [REMOVED] § 34.16 [Amended]
■ c. In paragraph (c)(3)(i), redesignating ■ 49. Section 34.16 is amended by:
footnote number 15 as footnote number ■ 40. Appendix C to part 22 is removed. ■ a. In paragraph (a), removing
10 and revising newly redesignated ‘‘$500,000’’ and adding ‘‘$750,000’’ in
footnote 10. PART 32—[REMOVED] its place; and
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■ d. In paragraph (c)(3)(iii), removing ■ b. In paragraph (d)(2)(ii):
■ 41. Under the authority of 5 U.S.C.
‘‘ensure that the recipients’ Taxpayer ■ i. In the second sentence, removing
301 and 10 U.S.C. 113, part 32 is
Identification Number (TIN)’’ and ‘‘Defense Contract Management
removed.
adding ‘‘ensure that, for recipients not Command (DCMC)’’ and adding
required to register in the System for PART 33—[REMOVED] ‘‘Defense Contract Management Agency
Award Management, the recipients’ (DCMA)’’ in its place; and
Taxpayer Identification Number (TIN)’’ ■ 42. Under the authority of 5 U.S.C. ■ ii. In the third sentence, removing
in its place. 301 and 10 U.S.C. 113, part 33 is ‘‘DCMC’’ and adding ‘‘DCMA’’ in its
The revisions read as follows: removed. place.
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■ 50. Section 34.17 is amended by Comp., p. 235), ‘‘Debarment and (c) Portions of other DoDGARs parts
revising paragraph (b) to read as follows: Suspension.’’ apply to TIAs only as cited by reference
8. Wage Rate Requirements (Construction), in this part.
§ 34.17 Allowable costs. formerly the Davis Bacon Act. When required
* * * * * by Federal program legislation, you must take § 37.225 [Amended]
the following actions with respect to each
(b) Other types of organizations. construction contract for more than $2,000 to
■ 55. Section 37.225 is amended in the
Allowability of costs incurred by other be awarded using funding provided under introductory text by removing ‘‘In
types of organizations that may be this award: accordance with § 37.1030, you will
subrecipients under a prime award to a a. Place in the solicitation under which the report your answers to these questions
for-profit organization is determined as contract will be awarded a copy of the to help the DoD measure the
follows: current prevailing wage determination issued Department-wide benefits of using TIAs
(1) Institutions of higher education, by the Department of Labor; and meet requirements to report to the
b. Condition the decision to award the Congress.’’ and adding ‘‘In accordance
nonprofit organizations, States, local contract upon the contractor’s acceptance of
governments, and Indian tribes. that prevailing wage determination; with § 37.1020, you must document
Allowability is determined in c. Include in the contract the clauses your answers to these questions in the
accordance with the cost principles in specified at 29 CFR 5.5(a) in Department of award file.’’ in its place.
subpart E of OMB guidance in 2 CFR Labor regulations (29 CFR part 5, ‘‘Labor ■ 56. Section 37.620 is revised to read
part 200. Note that 2 CFR 200.401(c) Standards Provisions Applicable to Contracts as follows:
provides that a nonprofit organization Governing Federally Financed and Assisted
Construction’’) to require the contractor’s § 37.620 What financial management
listed in appendix VIII to 2 CFR part 200 standards do I include for participants that
compliance with the Wage Rate
is subject to the FAR and DFARS cost Requirements (Construction), as amended (40 are nonprofit?
principles specified in paragraph (a)(1) U.S.C. 3141–44, 3146, and 3147); and So as not to force system changes for
of this section for for-profit d. Report all suspected or reported any State, local government, institution
organizations. violations to the award administration office of higher education, or other nonprofit
(2) Hospitals. Allowability is identified in this award.
9. Fly America requirements. In each
organization, your expenditure-based
determined in accordance with the cost TIA’s requirements for the financial
principles identified in appendix IX to contract under which funds provided under
this award might be used to participate in management system of any nonprofit
2 CFR part 200 (currently 45 CFR part participant are the same as those that
costs of international air travel or
75). transportation for people or property, you apply to the participant’s other Federal
§ 34.41 [Amended] must include a clause to require the assistance awards.
contractor to: ■ 57. Section 37.635 is revised to read
■ 51. Section 34.41 is amended in the a. Comply with the International Air as follows:
introductory text by removing ‘‘32 CFR Transportation Fair Competitive Practices
32.51 and 32.52’’ and adding ‘‘subparts Act of 1974 (49 U.S.C. 40118, also known as § 37.635 What cost principles do I require
A and B of 2 CFR part 1134’’ in its the ‘‘Fly America’’ Act), as implemented by a nonprofit participant to use?
place. the General Services Administration at 41 So as not to force financial system
■ 52. Appendix A to part 34 is amended CFR 301–10.131 through 301–10.143, which
provides that U.S Government financed
changes for any nonprofit participant,
by: international air travel and transportation of your expenditure-based TIA will
■ a. In paragraph 2, removing ‘‘40 U.S.C. personal effects or property must use a U.S. provide that costs to be charged to the
276c’’ and adding ‘‘40 U.S.C. 3145’’ in Flag air carrier or be performed under a cost research project by any nonprofit
its place. sharing arrangement with a U.S. carrier, if participant must be determined to be
■ b. In paragraph 3, removing ‘‘40 such service is available; and allowable in accordance with:
U.S.C. 327–333’’ in both places it b. Include the requirements of the Fly (a) Subpart E of OMB guidance in 2
appears and adding ‘‘40 U.S.C., chapter America Act in all subcontracts that might CFR part 200, if the participant is a
37’’ in their places. involve international air transportation.
State, local government, Indian tribe,
10. Cargo preference for United States flag
■ c. In paragraph 5, removing institution of higher education, or
vessels. In each contract under which
‘‘$100,000’’ and adding ‘‘$150,000’’ in equipment, material, or commodities may be nonprofit organization. In conformance
its place. shipped by oceangoing vessels, you must with 2 CFR 200.401(c) of that OMB
■ d. Revising paragraph 7. include the clause specified in Department of guidance, a nonprofit organization listed
■ e. Adding paragraphs 8 through 10. Transportation regulations at 46 CFR 381.7(b) in appendix VIII to 2 CFR part 200 is
The revision and additions read as to require that at least 50 percent of subject to the cost principles in the
follows: equipment, materials or commodities Federal Acquisition Regulation (48 CFR
purchased or otherwise obtained with
subpart 31.2) and Defense Federal
Appendix A to Part 34—Contract Federal funds under this award, and
transported by ocean vessel, be transported Acquisition Regulation Supplement (48
Provisions
on privately owned U.S. flag commercial CFR subpart 231.2).
* * * * * vessels, if available. (b) The cost principles identified in
7. Debarment and Suspension (E.O.s 12549 appendix IX to the OMB guidance in 2
and 12689)—A contract award with an PART 37 [Amended] CFR part 200 (see 45 CFR part 75), if the
amount expected to equal or exceed $25,000 participant is a hospital.
and certain other contract awards (see 2 CFR ■ 53. The authority citation for part 37
sradovich on DSK3GMQ082PROD with PROPOSALS2
1125.220, which implements OMB guidance continues to read as follows: § 37.645 [Amended]
at 2 CFR 180.220) shall not be made to
Authority: 5 U.S.C. 301 and 10 U.S.C. 113. ■ 58. Section 37.645 is amended in
parties identified in the Exclusions area of
the System for Award Management (SAM ■ 54. Section 37.130 is amended by paragraph (b)(1) by removing
Exclusions) as being currently debarred, revising paragraph (c) to read as follows: ‘‘$500,000’’ and adding ‘‘$750,000’’ in
suspended, or otherwise excluded. This its place.
restriction is in accordance with the DoD § 37.130 Which other parts of the DoD
adoption at 2 CFR part 1125 of the OMB Grant and Agreement Regulations apply to § 37.650 [Amended]
guidance implementing E.O.s 12549 (3 CFR, TIAs? ■ 59. Section 37.650 is amended in
1986 Comp., p. 189) and 12689 (3 CFR, 1989 * * * * * paragraph (c) by removing ‘‘400 Army-
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![Federal Register / Vol. 81, No. 215 / Monday, November 7, 2016 / Proposed Rules 78451
Navy Drive, Arlington, VA 22202’’ and ■ 66. Section 37.710 is amended by ■ 69. Section 37.890 is amended by
adding ‘‘4800 Mark Center Drive, revising paragraph (a) to read as follows: redesignating footnote number 7 as
Alexandria, VA 22350–1500’’ in its footnote number 4 and revising newly
place. § 37.710 What standards do I include for redesignated footnote 4 to read as
purchasing systems of nonprofit
organizations?
follows:
§ 37.660 [Amended]
■ 60. Section 37.660 is amended by (a) So as not to force system changes § 37.890 Must I require a final performance
redesignating footnote number 4 as for any nonprofit participant, your report?
footnote number 2. expenditure-based TIA will provide that * * * * *
■ 61. Section 37.665 is revised to read each nonprofit participant’s purchasing 4 See footnote 3 to § 37.875(b)(1).
as follows: system comply with standards that
conform as much as practicable with § 37.895 [Amended]
§ 37.665 Must I require nonprofit
participants to have periodic audits?
requirements that apply to the ■ 70. Section 37.895 is amended by
participant’s other Federal awards. redesignating footnote number 8 as
Yes, expenditure-based TIAs are
assistance instruments subject to the * * * * * footnote number 5.
■ 71. Section 37.920 is revised to read
Single Audit Act (31 U.S.C. 7501–7507), § 37.875 [Amended]
so nonprofit participants are subject to as follows:
■ 67. Section 37.875 is amended by
their usual requirements under that Act, § 37.920 What requirement for access to a
redesignating footnote number 6 as
as implemented by subpart F of 2 CFR nonprofit participant’s records do I include
footnote number 3.
part 200. Specifically, the requirements in a TIA?
■ 68. Section 37.880 is revised to read
are the same as those in subpart E of 2 Your TIA must include for any
as follows:
CFR part 1128 for grants and nonprofit participant, including any
cooperative agreements to institutions of § 37.880 What requirements must I include FFRDC or GOCO administered by a
higher education, nonprofit for periodic reports on program and nonprofit organization, the standard
organizations, States, local governments, business status? access-to-records requirement that
and Indian tribes. Note that those Your TIA must include requirements subpart B of 2 CFR part 1136 specifies
requirements also apply to Federally that, as a minimum, include periodic in Section F of OAR Article II (the
Funded Research and Development reports addressing program and, if it is standard wording for Section F of OAR
Centers (FFRDCs) and other an expenditure-based award, business Article II is provided in appendix B to
Government-owned, Contractor- status. You must require submission of 2 CFR part 1136).
Operated (GOCO) facilities administered the reports at least annually, and you
by nonprofit organizations, because may require submission as frequently as § 37.1000 [Amended]
nonprofit FFRDCs and GOCOs are quarterly (this does not preclude a ■ 72. Section 37.1000 is amended in
subject to the Single Audit Act. recipient from electing to submit more paragraph (c) by removing ‘‘§§ 37.1025
§ 37.675 [Removed]
frequently than quarterly the financial through 37.1035’’ and adding
information that is required to process ‘‘§ 37.1025’’ in its place.
■ 62. Section 37.675 is removed.
payment requests if the award is an
§ 37.1010 [Amended]
§ 37.680 [Removed] expenditure-based TIA that uses
reimbursement or advance payments ■ 73. Section 37.1010 is amended in
■ 63. Section 37.680 is removed.
■ 64. Section 37.690 is revised to read under § 37.810(a)). The requirements for paragraph (l) by removing ‘‘and
as follows: the content of the reports are as follows: § 37.680.’’
(a) The program portions of the § 37.1030 [Removed]
§ 37.690 How are nonprofit participants to reports must address progress toward
manage real property and equipment? ■ 74. Section 37.1030 is removed.
achieving program performance goals,
For nonprofit participants, your TIA’s including current issues, problems, or § 37.1035 [Removed]
requirements for vesting of title, use, developments.
management, and disposition of real ■ 75. Section 37.1035 is removed.
(b) The business portions of the
property or equipment acquired under reports, applicable only to expenditure- § 37.1040 [Removed]
the award are the same as those that based awards, must provide ■ 76. Section 37.1040 is removed.
apply to the participant’s other Federal summarized details on the status of
assistance awards. resources (federal funds and non-federal § 37.1100 [Amended]
■ 65. Section 37.695 is amended by: cost sharing), including an accounting ■ 77. Section 37.1100 is amended by
■ a. Revising paragraph (b); and removing paragraph (g).
of expenditures for the period covered
■ b. Removing paragraph (c).
by the report. The report should ■ 78. Appendix D to part 37 is amended
The revision reads as follows:
compare the resource status with any by revising Sections B and C to read as
§ 37.695 What are the requirements for payment and expenditure schedules or follows:
Federally owned property? plans provided in the original award; Appendix D to Part 37—What Common
* * * * * explain any major deviations from those National Policy Requirements May
(b) The requirements that apply to the schedules; and discuss actions that will Apply and Need to be Included in
sradovich on DSK3GMQ082PROD with PROPOSALS2
participant’s other Federal awards, if it be taken to address the deviations. You TIAS?
is an entity other than a for-profit firm. may require a recipient to separately
If the other Federal awards of a identify in these reports the * * * * *
participant that is a GOCO or FFRDC expenditures for each participant in a B. Assurances That Apply to All TIAs
administered by a nonprofit consortium and for each programmatic DoD policy is to use a certification, as
organization are procurement contracts, milestone or task, if you, after described in the preceding paragraph, only
it is appropriate for you to specify the consulting with the program official, for a national policy requirement that
same property standards that apply to judge that those additional details are specifically requires one. The usual approach
those Federal procurement contracts. needed for good stewardship. to communicating other national policy
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![Federal Register / Vol. 81, No. 215 / Monday, November 7, 2016 / Proposed Rules 78453
4. Cargo preference for United States flag equipment, materials or commodities Dated: October 19, 2016.
vessels. In each contract under which purchased or otherwise obtained with Aaron Siegel,
equipment, material, or commodities may be Federal funds under this award, and Alternate OSD Federal Register Liaison
shipped by oceangoing vessels, you must transported by ocean vessel, be transported Officer, Department of Defense.
include the clause specified in Department of on privately owned U.S. flag commercial
Transportation regulations at 46 CFR 381.7(b) [FR Doc. 2016–25717 Filed 11–4–16; 8:45 am]
vessels, if available.
to require that at least 50 percent of BILLING CODE 5001–06–P
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Document Created: 2018-02-14 08:21:43
Document Modified: 2018-02-14 08:21:43
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Proposed Rules | |
| Action | Proposed rule. | |
| Dates | To ensure that they can be considered in developing the final rule, comments must be received at either the Web site or mailing | |
| Contact | Wade Wargo, Basic Research Office, telephone 571-372-2941. | |
| FR Citation | 81 FR 78442 | |
| RIN Number | 0790-AJ50 | |
| CFR Citation | 32
CFR
21 32 CFR 22 32 CFR 32 32 CFR 33 32 CFR 34 32 CFR 37 | |
| CFR Associated | Business and Industry; Colleges and Universities; Cooperative Agreements; Grants Administration; Hospitals; Indians; Nonprofit Organizations; Small Business and State and Local Governments |
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