[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3433 Reported in House (RH)]

                                                 Union Calendar No. 339
112th CONGRESS
   2d Session
                                H. R. 3433

                          [Report No. 112-484]

  To amend title 31, United States Code, to provide transparency and 
require certain standards in the award of Federal grants, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 16, 2011

  Mr. Lankford (for himself, Mr. Issa, Mr. Kelly, Mr. Meehan, and Mr. 
  Pierluisi) introduced the following bill; which was referred to the 
              Committee on Oversight and Government Reform

                              May 16, 2012

            Additional sponsor: Mr. Scott of South Carolina

                              May 16, 2012

Reported with amendments, committed to the Committee of the Whole House 
          on the State of the Union, and ordered to be printed
  [Omit the part struck through and insert the part printed in italic]


_______________________________________________________________________

                                 A BILL


 
  To amend title 31, United States Code, to provide transparency and 
require certain standards in the award of Federal grants, and for other 
                               purposes.


 


    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Grant Reform and New Transparency 
Act of 2011'' or the ``GRANT Act''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Grants transparency requirements.
Sec. 4. Report requirements relating to grants.
Sec. 5. Plan for improving the single audit process.

SEC. 3. GRANTS TRANSPARENCY REQUIREMENTS.

    (a) Grants Transparency Requirements.--
            (1) In general.--Subtitle V of title 31, United States 
        Code, is amended by inserting after chapter 73 the following 
        new chapter:

             ``CHAPTER 74--GRANTS TRANSPARENCY REQUIREMENTS

``Sec.
``7401. Definitions.
<DELETED>``7402. Competition requirements in awarding grants.
</DELETED>``7402. Merit-based selection procedure requirements in 
                            awarding grants.
``7403. Pre-award evaluation requirements.
``7404. Website relating to Federal grants.
``7405. Debriefing.
``Sec. 7401. Definitions
    ``In this chapter:
            ``(1) Grant.--The term `grant' means an award of Federal 
        financial assistance through a grant agreement or cooperative 
        agreement making payment in cash or in kind to a recipient to 
        carry out a public purpose authorized by law.
            ``(2) Competitive grant.--The term `competitive grant' 
        means a grant entered into through the use of merit-based 
        selection procedures for the purpose of allocating funds 
        authorized under a grant program of an Executive agency.
            ``(3) Executive agency.--The term `Executive agency' has 
        the meaning provided by section 105 of title 5, except the term 
        does not include the Government Accountability Office.
            ``(4) Board.--The term `Board' means the Recovery 
        Accountability and Transparency Board or any successor entity.
            ``(5) Proposal abstract.--The term `proposal abstract', 
        with respect to a grant proposal, means a summary containing 
        key elements of the grant proposal.
            ``(6) Grant reviewer.--The term `grant reviewer', with 
        respect to a grant--
                    ``(A) means any individual who reviews, evaluates, 
                or participates in the decision to select a grant 
                applicant for award of the grant; and
                    ``(B) includes--
                            ``(i) a peer reviewer;
                            ``(ii) a merit reviewer; and
                            ``(iii) a member of a technical evaluation 
                        panel or board or a special emphasis panel.
``Sec. 7402. Merit-based selection procedure requirements in awarding 
              grants
    ``(a) Merit-Based Selection Procedures Required.--
            ``(1) In general.--Except as provided in paragraph (2), an 
        Executive agency shall use merit-based selection procedures in 
        awarding grants.
            ``(2) Exception for certain grants.--An Executive agency is 
        not required to use merit-based selection procedures in 
        awarding a grant if the grant is a block grant or formula grant 
        for which Federal funds are required to be allocated in 
        accordance with a distribution formula prescribed by law or 
        regulation, or any other grant in which the allocation 
        methodology for the grant funds is mandated by law.
    ``(b) Requirement for Specific Merit-Based Selection Procedures.--
Each Executive agency shall establish and make publicly available 
specific merit-based selection procedures for each grant program of the 
agency required under subsection (a) to use such procedures.
    ``(c) Merit-Based Selection Procedures Described.--
            ``(1) In general.--The merit-based selection procedures 
        required under subsection (a) shall promote the use of 
        competition, and may be tailored to the particular 
        requirements, objectives, and authorities of the agency. The 
        procedures may address matters such as consideration of 
        unsolicited proposals, standards for obtaining a competitive 
        pool of applicants, and exceptions for safety, security, or 
        other circumstances.
            ``(2) Specific matters included.--The merit-based selection 
        procedures required under subsection (a) shall include, with 
        respect to a grant, the following:
                    ``(A) Advance notification of the grant 
                opportunity.
                    ``(B) A clear statement of the purpose, duration 
                (including anticipated grant continuations), and 
                eligibility requirements of the grant.
                    ``(C) A description of the manner in which 
                applications or proposals for the grant will be 
                evaluated, ranked, and selected for award, including 
                the weighting of any evaluation factors or criteria 
                that will be considered.
``Sec. 7403. Pre-award evaluation requirements
    ``(a) Evaluation Required.--Before awarding a competitive grant, an 
Executive agency shall conduct an evaluation of the ability of the 
prospective grantee to successfully carry out the grant.
    ``(b) Matters Covered.--The evaluation required by subsection (a) 
shall include a review of the following:
            ``(1) Financial management system.--The capability of the 
        financial management system of the applicant to account for 
        funds.
            ``(2) Internal controls.--The internal financial and 
        administrative control systems of the applicant.
            ``(3) Compliance with reporting.--The capability of the 
        applicant to comply with Federal reporting requirements for 
        recipients of Federal funds.
            ``(4) Past performance and integrity.--The past performance 
        and record of integrity of the applicant.
            ``(5) Other qualifications and competence.--The ability of 
        the applicant to successfully carry out the purposes of the 
        grant.
    ``(c) Simplified Evaluation Procedure for Certain Applicants.--In 
conducting the evaluation required under subsection (a) with respect to 
an applicant, an Executive agency shall minimize the burden on any 
applicant that has previously received a significant volume of Federal 
grants, and shall consider any existing findings with respect to that 
applicant under the single audit process under chapter 75 of title 31 
related to the matters in subsection (b).
``Sec. 7404. Website relating to Federal grants
    ``(a) Requirement.--The Director of the Office of Management and 
Budget shall upgrade any existing or proposed public website for 
finding Federal grant opportunities and applying for such grants so 
that such website may serve as a central point of information and 
provide full access for applicants for competitive grants. The website 
shall capture in one site, or provide electronic links to, other 
relevant databases.
    ``(b) Notice of Competitive Grant Funds Availability.--At the time 
an Executive agency issues a solicitation or otherwise announces the 
availability of funds for a competitive grant, the agency shall post on 
the grants website maintained under this section relevant information 
about the grant opportunity, including the following:
            ``(1) Announcement and purpose.--The grant announcement and 
        purpose of the grant.
            ``(2) Grant period.--The time period for performance of the 
        grant and whether the agency anticipates that the grant will be 
        continued.
            ``(3) Amount of available funds.--The amount of funds 
        available for the grant.
            ``(4) Eligibility.--A statement of eligibility requirements 
        of the grant.
            ``(5) Agency point of contact.--Contact information for the 
        Executive agency, including the name, telephone number, and 
        electronic mail address of a specific person or persons 
        responsible for answering questions about the grant and the 
        application process for the grant.
            ``(6) Evaluation factors or criteria.--A clear statement of 
        the evaluation factors or criteria that the agency intends to 
        use to evaluate and rank grant applications or proposals 
        submitted, including the weight to be applied to each factor or 
        criterion.
            ``(7) Disclosure of the process and standards for 
        safeguarding against conflicts.--A description of the process 
        and standards to be used by the agency to determine that each 
        grant reviewer does not have a prohibited conflict of interest, 
        as defined by applicable statute or regulation, with respect to 
        the evaluation or review of a grant application or proposal, or 
        the decision to award a grant.
            ``(8) Deadline.--The deadline for submission of grant 
        applications or proposals.
    ``(c) Use by Applicants.--The grants website maintained under this 
section shall, to the greatest extent practicable, allow grant 
applicants to--
            ``(1) use the website with any computer platform;
            ``(2) search the website for all competitive grants by 
        purpose, funding agency, program source, and other relevant 
        criteria;
            ``(3) apply for a competitive grant using the website;
            ``(4) manage, track, and report on the use of competitive 
        grants using the website; and
            ``(5) provide all required certifications and assurances 
        for a competitive grant using the website.
    ``(d) Grant Award Information.--
            ``(1) In general.--For each competitive grant awarded by an 
        Executive agency, the agency shall post on the grants website 
        maintained under this section the information described in 
        paragraph (2). Except as provided in paragraphs (2)(B) and (3), 
        the information shall be posted within 15 days after an 
        Executive agency notifies an applicant that the applicant has 
        been selected to receive a grant award and shall be updated as 
        necessary while the grant to the recipient is being performed.
            ``(2) Information posted.--For purposes of paragraph (1), 
        the information described in this section with respect to each 
        grant awarded by an Executive agency is the following:
                    ``(A) Executed grant agreement.--A copy of the 
                final grant agreement, including the terms and 
                conditions and the time period for performance of the 
                grant.
                    ``(B) Copy of proposal, application, or plan.--
                Subject to paragraph (3), a copy of any proposal, 
                application, or plan submitted for the awarded grant, 
                including any amendment to the proposal, application, 
                or plan (whether made before or after the award of the 
                grant).
                    ``(C) Award decision documentation and rankings.--
                Documentation explaining the basis for the selection 
                decision for the grant, the number of proposals 
                received for the grant, and, with respect to the 
                proposal that resulted in the grant award, the 
                numerical ranking of the proposal by grant reviewers, 
                if numerical rankings were assigned.
                    ``(D) Justification for deviating from rankings.--
                In any case in which the award of the grant is not 
                consistent with the numerical rankings or any other 
                recommendations made by grant reviewers, a written 
                justification explaining the rationale for the decision 
                not to follow the rankings or recommendations.
                    ``(E) Disclosure of peer reviewers.--The 
                <DELETED>name, title, and employer</DELETED> employer, 
                and either the name and title or a unique identifier, 
                of each individual who served as a peer reviewer for 
                the grant program concerned, during the six-month 
                period preceding the award of the grant.
                    ``(F) Disclosure of other grant reviewers.--The 
                name, title, and employer of each individual who served 
                as a reviewer (other than a peer reviewer) of proposals 
                or applications for the grant, regardless of whether 
                the individual is employed by the Federal government or 
                not.
            ``(3) Exception to posting requirement.--Notwithstanding 
        paragraphs (1) and (2)(B), if the head of the agency 
        determines, with respect to a particular grant award, that 
        posting the proposal, application, or plan at the time 
        described in paragraph (1) would adversely affect an applicant, 
        the agency--
                    ``(A) may post a proposal abstract or executive 
                summary; and
                    ``(B) shall post the complete proposal, 
                application, or plan by a date to be determined by the 
                head of the agency, in consultation with the applicant, 
                but not later than three years after the date of the 
                grant award.
    ``(e) Grant Performance Information.--Unless otherwise prohibited 
by law, with respect to each grant awarded by an Executive agency, 
within 60 days after the end of the period for completion of the grant, 
the agency shall post on the grants website maintained under this 
section the following information:
            ``(1) The final report or other final written product 
        required under the terms of the grant.
            ``(2) Other related data or results of the grant that the 
        agency considers to be of value to future researchers or in the 
        public interest.
    ``(f) Submission and Publication of Grant Solicitation Forecast on 
the Grants Website.--
            ``(1) Requirement.--Not later than November 30 of each 
        year, the head of each Executive agency shall post a forecast, 
        in accordance with paragraph (2), of all grant solicitations 
        that the agency expects to issue for the following calendar 
        year. The forecast shall be based on the best information 
        available and shall not be binding on the agency.
            ``(2) Matters included.--The forecast shall include, to the 
        extent practicable, the following for each expected grant 
        solicitation:
                    ``(A) Subject and purpose.--A brief description of 
                the subject and purpose of the grant, organized by the 
                organizational unit of the agency.
                    ``(B) Point of contact.--Contact information for 
                the organizational unit or individual responsible for 
                the grant, if known, including name, telephone number, 
                and electronic mail address.
                    ``(C) Notice publication date.--The expected or 
                actual dates for the issuance of the grant solicitation 
                and application and the grant application submission 
                deadline.
                    ``(D) Award amount.--The estimated amount of the 
                average grant award, the estimated maximum and minimum 
                amounts of the grant award, if applicable, and the 
                estimated total number of grant awards to be made.
    ``(g) Publication of Information.--Nothing in this section shall be 
construed as requiring the publication of information otherwise exempt 
under section 552 of title 5, United States Code (popularly referred to 
as the `Freedom of Information Act').
    ``(h) Transparency of Information.--To the extent practicable, the 
grants website maintained under this section shall--
            ``(1) make the information described in this section 
        available in its original format;
            ``(2) make the information described in this section 
        available without charge, license, or registration requirement;
            ``(3) permit the information described in this section to 
        be searched and aggregated;
            ``(4) permit the information described in this section to 
        be downloaded in bulk;
            ``(5) permit the information described in this section to 
        be disseminated via automatic electronic means;
            ``(6) permit the information described in this section to 
        be freely shared by the public, such as by social media;
            ``(7) use permanent uniform resource locators for the 
        information described in this section; and
            ``(8) provide an opportunity for the public to provide 
        input about the usefulness of the site and recommendations for 
        improvements.
``Sec. 7405. Debriefing
    ``If requested by an applicant for a competitive grant, for each 
grant award made in an amount in excess of $100,000 pursuant to a 
merit-based selection procedure, an Executive agency shall provide the 
applicant with a timely debriefing explaining the basis for the 
agency's award decision, including, if applicable, the decision not to 
award a grant to the applicant.''.
            (2) Clerical amendment.--The table of chapters at the 
        beginning of subtitle V of title 31, United States Code, is 
        amended by inserting after the item relating to chapter 73 the 
        following new item:

``74. Grant Transparency Requirements.......................    7401''.
    (b) Guidance for Merit-Based Selection Procedures for Grant 
Programs.--Not later than 60 days after the date of the enactment of 
this Act, the Director of the Office of Management and Budget shall 
issue and disseminate guidance to aid Executive agencies in 
establishing merit-based selection procedures for agency grant 
programs, as required by section 7402(c) of title 31, United States 
Code, as added by subsection (a).
    (c) Deadline for Merit-Based Selection Procedures for Grant 
Programs.--Not later than 180 days after the date of the enactment of 
this Act, each Executive agency shall carry out the requirement of 
section 7402(c) of such title, as so added.
    (d) Report on Merit-Based Selection Procedures for Grant 
Programs.--Not later than one year after the date of the enactment of 
this Act, the Comptroller General of the United States shall submit to 
the Committee on Oversight and Government Reform of the House of 
Representatives and the Committee on Homeland Security and Governmental 
Affairs of the Senate a report on the guidance issued by the Director 
of the Office of Management and Budget under subsection (b) and the 
actions taken by Executive agencies to establish merit-based selection 
procedures under subsection (c).

SEC. 4. REPORT REQUIREMENTS RELATING TO GRANTS.

    (a) Undisbursed Grant Funding Report.--
            (1) Guidance.--Not later than 90 days after the date of the 
        enactment of this Act, the Director of the Office of Management 
        and Budget shall issue guidance to Executive agencies 
        instructing each agency to identify amounts of undisbursed 
        grant funding remaining in grant accounts for which the period 
        of availability to the grantee has expired and report to the 
        Office of Management and Budget on the status and resolution of 
        such funding.
            (2) Report requirement.--Not later than 180 days after the 
        date of the enactment of this Act, the Director shall submit to 
        the Committee on Oversight and Government Reform of the House 
        of Representatives and the Committee on Homeland Security and 
        Governmental Affairs of the Senate a report summarizing the 
        information reported by Executive agencies under subsection (a) 
        and describing the actions the Director or Executive agencies 
        plan to take with respect to the undisbursed grant funding 
        identified in the information so reported.
    (b) Grants Workforce Report.--
            (1) Report requirement.--Not later than 180 days after the 
        date of the enactment of this Act, the Comptroller General of 
        the United States shall submit to the Committee on Oversight 
        and Government Reform of the House of Representatives and the 
        Committee on Homeland Security and Governmental Affairs of the 
        Senate a report on the Federal grants workforce.
            (2) Contents of report.--The report required under 
        subsection (a) shall address--
                    (A) the size of the Federal grants workforce and 
                expected trends in Federal employment;
                    (B) adequacy of training opportunities for the 
                Federal grants workforce;
                    (C) whether the Federal Acquisition Institute or 
                any other existing entity engaged in acquisition 
                workforce training should be made available for grant 
                training;
                    (D) whether a warrant system similar to that used 
                in the Federal acquisition system should be established 
                for Federal officials authorized to award grants;
                    (E) the use by executive agencies of suspension and 
                debarment actions taken against grantees during the 
                three-year period preceding the date of submission of 
                the report, and the level of agency resources assigned 
                to the suspension and debarment functions; and
                    (F) any recommendations for improving the Federal 
                grants workforce.
    (c) Definitions.--In this section:
            (1) Executive agency.--The term ``Executive agency'' has 
        the meaning provided by section 105 of title 5, United States 
        Code, except the term does not include the Government 
        Accountability Office.
            (2) Federal grants workforce defined.--The term ``Federal 
        grants workforce'', with respect to an Executive agency, means 
        all employees of the agency who spend some or all of their time 
        engaged in--
                    (A) grant planning;
                    (B) preparing grant solicitations, Notices of 
                Funding Availability, or other requests for grant 
                proposals;
                    (C) evaluating or reviewing grant applications, 
                including serving on a peer review board; or
                    (D) monitoring or administering grant performance 
                by grantees.

SEC. 5. PLAN FOR IMPROVING THE SINGLE AUDIT PROCESS.

    (a) Plan for Improving the Single Audit Process.--Not later than 
180 days after the date of the enactment of this Act, the Director of 
the Office of Management and Budget shall submit to the Committee on 
Oversight and Government Reform of the House of Representatives and the 
Committee on Homeland Security and Governmental Affairs of the Senate a 
plan on improving the single audit process required under chapter 75 of 
title 31, United States Code, that includes each of the following 
elements:
            (1) A centralized Federal Government oversight structure 
        for the single audit process to monitor Federal agency 
        implementation of single audit requirements under chapter 75 of 
        title 31, United States Code.
            (2) Simplified alternative single audit requirements for 
        non-Federal entities with expenditures for smaller Federal 
        awards.
            (3) A proposal to shorten the single audit cycle, including 
        the time periods for completing the audit and for Executive 
        agency resolution of the audit.
            (4) An identification of any necessary legislative changes 
        to implement any proposal under the plan.
            (5) A description of key milestones for implementation and 
        necessary steps to complete implementation.
    (b) Report.--Not later than 180 days after the plan is submitted 
under subsection (a), the Director of the Office of Management and 
Budget shall submit to the Committee on Oversight and Government Reform 
of the House of Representatives and the Committee on Homeland Security 
and Governmental Affairs of the Senate a report on the implementation 
of each element of the plan.
    (c) Definitions.--In this section:
            (1) Executive agency.--The term ``Executive agency'' has 
        the meaning provided by section 105 of title 5, United States 
        Code, except the term does not include the Government 
        Accountability Office.
            (2) Non-federal entity.--The term ``non-Federal entity'' 
        has the meaning given that term under section 7501 of title 31, 
        United States Code.
            (3) Single audit.--The term ``single audit'' has the 
        meaning provided by section 7501(a)(18) of title 31, United 
        States Code.
            (4) Smaller federal award.--The term ``smaller Federal 
        award'' means a Federal award of less than $1,000,000 or such 
        other amount specified by the Director of the Office of 
        Management and Budget.
                                                 Union Calendar No. 339

112th CONGRESS

   2d Session

                               H. R. 3433

                          [Report No. 112-484]

_______________________________________________________________________

                                 A BILL

  To amend title 31, United States Code, to provide transparency and 
require certain standards in the award of Federal grants, and for other 
                               purposes.

_______________________________________________________________________

                              May 16, 2012

Reported with amendments, committed to the Committee of the Whole House 
          on the State of the Union, and ordered to be printed