[Federal Register Volume 61, Number 142 (Tuesday, July 23, 1996)]
[Rules and Regulations]
[Pages 38058-38084]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-18363]


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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

14 CFR Part 1260

RIN 2700-AA95


Grants and Agreements With Institutions of Higher Education, 
Hospitals, and Other Non-Profit Organizations, Uniform Administrative 
Requirements (OMB A-110 Implementation)

AGENCY: Office of Procurement, National Aeronautics and Space 
Administration (NASA).

ACTION: Interim rule.

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SUMMARY: This rule revises NASA's grant regulations in order to adopt

[[Page 38059]]

uniform administrative requirements. Institutions that receive grants 
from more than one Federal agency may find it easier to follow the 
format of these uniform requirements.

DATES: This rule is effective August 22, 1996. All comments on this 
interim rule should be in writing and must be received by September 23, 
1996.

ADDRESSES: Rich Kall, Code HK, NASA Headquarters, Washington, DC 20546.

FOR FURTHER INFORMATION CONTACT:
Rich Kall, (202) 358-0459.

SUPPLEMENTARY INFORMATION:

Background

    This rule revises 14 CFR part 1260 to adopt the language of OMB 
Circular No. A-110 by using a format similar to the Department of 
Energy's regulation at 10 CFR part 600. A new subpart A provides the 
text of provisions and special conditions for grants and cooperative 
agreements and addresses NASA's authority, definitions, applicability, 
amendments, publications, deviations, pre-award requirements, and post-
award requirements currently covered by 14 CFR part 1260. A new subpart 
B adopts the uniform administrative requirements of OMB Circular No. A-
110 and includes NASA's choices in alternatives offered by A-110. 
Because A-110 was already published for public comment, NASA's adoption 
of the language is being done as an interim rule. NASA has added 
subpart C, Administrative Requirements for State and Local Governments 
(formerly in OMB Circular A-102 and currently in the agencies' Grants 
Management Common Rule), which has been codified at 14 CFR part 1273, 
FR 33694, 6-29-95.

Procedural Requirements

Review Under the Regulatory Flexibility Act

    The rule was reviewed under the Regulatory Flexibility Act of 1980. 
NASA certifies that the rule will not have a significant economic 
impact on a substantial number of small entities.

Review Under the Paperwork Reduction Act

    Under 5 CFR 1320.5(b)(2)(i), NASA is required to inform potential 
persons who are to respond to the collection of information that such 
persons are not required to respond to the collection of information 
unless it displays a currently valid OMB control number. Under 5 CFR 
1320.5(b)(2)(ii)(C), this paragraph meets that display requirement by 
providing the following statement: information collection under 14 CFR 
part 1260 is not changed by this rule and was previously approved under 
OMB Control Numbers 2700-0047, 2700-0048, and 2700-0049.

Executive Order 12866

    NASA has determined that this rule is significant under E.O. 12866. 
This regulation is needed because OMB Circular No. A-110 encourages 
agencies to adopt uniform administrative requirements for grants. The 
regulation meets that need by adopting the requirements of A-110. The 
potential costs and benefits of the regulatory action are that 
institutions that receive grants from more than one Federal agency may 
find it easier to follow the format of these uniform requirements. 
These requirements implement several Federal statutes applicable to 
grants, e.g., civil rights, clean air and water, and drug-free 
workplace.

List of Subjects in 14 CFR Part 1260

    Grant programs.
Tom Luedtke,
Deputy Associate Administrator for Procurement.

    Accordingly, 14 CFR part 1260 is revised to read as follows:

PART 1260--GRANTS AND COOPERATIVE AGREEMENTS

Subpart A--General

Sec.
1260.1  Authority.
1260.2  Definitions.
1260.3  Applicability.
1260.4  Amendment.
1260.5  Publication.
1260.6  Deviations.

Pre-Award Requirements

1260.10  Proposals.
1260.11  Evaluation and selection.
1260.12  Choice of award instrument.
1260.13  Award procedures.
1260.14  Limitations.
1260.15  Format and numbering.
1260.16  Distribution.

Provisions

1260.20  Provisions.
1260.21  Publications and reports.
1260.22  Extensions.
1260.23  Termination and enforcement.
1260.24  Change in principal investigator or scope.
1260.25  Allowable costs.
1260.26  Financial management.
1260.27  Equipment and other property.
1260.28  Patent rights.
1260.29  Rights in data.
1260.30  National security.
1260.31  Nondiscrimination.
1260.32  Subcontracts.
1260.33  Clean air and water.
1260.34  Procurement standards.
1260.35  Foreign national employee investigative requirements.
1260.36  Travel and transportation.

Special Conditions

1260.50  Special conditions.
1260.51  Cooperative agreement special condition.
1260.52  Multiple year grant.
1260.53  Incremental funding.
1260.54  Cost sharing.
1260.55  Reports substitution.
1260.56  Withholding.
1260.57  Training grant reports.
1260.58  Interest bearing accounts.
1260.59  Choice of law.
1260.60  Invention reporting and rights.
1260.61  Public information.
1260.62  Allocation of risk/liability.
1260.63  Payment--to foreign organizations.
1260.64  Customs clearance and visas.
1260.65  Taxes.
1260.66  Exchange of technical data and goods.

Post-Award Requirements

1260.70  Delegation of administration.
1260.71  Supplements and renewals.
1260.72  Adherence to original budget estimates.
1260.73  Transfers, novations, and change of name agreements.
1260.74  Property use, disposition, and vesting of title.
1260.75  Reports.
1260.76  Suspension or termination.
1260.77  Closeout procedures.

Appendix to Subpart A to Part 1260--Listing of Exhibits

Subpart B--Uniform Administrative Requirements for Grants and 
Cooperative Agreements With Institutions of Higher Education, 
Hospitals, and Other Non-Profit Organizations

General

Sec.
1260.101  Purpose.
1260.102  Definitions.
1260.103  Effect on other issuances.
1260.104  Deviations.
1260.105  Subawards.

Pre-Award Requirements

1260.110  Purpose.
1260.111  Pre-award policies.
1260.112  Forms for applying for Federal assistance.
1260.113  Debarment and suspension.
1260.114  Special award conditions.
1260.115  Metric system of measurement.
1260.116  Resource Conservation and Recovery Act (RCRA).
1260.117  Certifications and representations.

Post-Award Requirements

Financial and Program Management

1260.120  Purpose of financial and program management.
1260.121  Standards for financial management systems.
1260.122  Payment.
1260.123  Cost sharing or matching.
1260.124  Program income.
1260.125  Revision of budget and program plans.
1260.126  Non-Federal audits.
1260.127  Allowable costs.
1260.128  Period of availability of funds.

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Property Standards

1260.130  Purpose of property standards.
1260.131  Insurance coverage.
1260.132  Real property.
1260.133  Federally-owned and exempt property.
1260.134  Equipment.
1260.135  Supplies and other expendable property.
1260.136  Intangible property.
1260.137  Property trust relationship.

Procurement Standards

1260.140  Purpose of procurement standards.
1260.141  Recipient responsibilities.
1260.142  Codes of conduct.
1260.143  Competition.
1260.144  Procurement procedures.
1260.145  Cost and price analysis.
1260.146  Procurement records.
1260.147  Contract administration.
1260.148  Contract provisions.

Reports and Records

1260.150  Purpose of reports and records.
1260.151  Monitoring and reporting program performance.
1260.152  Financial reporting.
1260.153  Retention and access requirements for records.

Termination and Enforcement

1260.160  Purpose of termination and enforcement.
1260.161  Termination.
1260.162  Enforcement.

After-the-Award Requirements

1260.170  Purpose.
1260.171  Closeout procedures.
1260.172  Subsequent adjustments and continuing responsibilities.
1260.173  Collection of amounts due.

Appendix A to Subpart B of Part 1260--Contract Provisions

    Authority: 42 U.S.C. 2473(c)(1), Pub. L. 97-258, 96 Stat. 1003 
(31 U.S.C. 6301 et seq.), and OMB Circular A-110.

Subpart A--General


Sec. 1260.1  Authority.

    (a) The National Aeronautics and Space Administration (NASA) awards 
grants and cooperative agreements under the authority of 42 U.S.C. 
2473(c)(5), the Space Act. This part 1260 is issued under the authority 
of 42 U.S.C. 2473(c)(1).
    (b) The Office of Management and Budget (OMB) approved information 
collection under the Paperwork Reduction Act through September 30, 1998 
and assigned OMB control numbers 2700-0047, Property Management and 
Control; 2700-0048, Patents; and 2700-0049, Financial Management and 
Control. OMB control number 2700-0047 applies to grants subject to 
subparts A and B of this part.


Sec. 1260.2  Definitions.

    Additional definitions can be found in Sec. 1260.102.
    Administrative grant officer. A Federal employee delegated 
responsibility for grant administration; e.g., under a delegation from 
a NASA grant officer.
    Effective date. The date work can begin and the recipient can start 
spending grant funds. The effective date could be earlier or later than 
the date of signature on a basic award or modification.
    Extension. A modification of an award, which would otherwise 
expire, to provide additional time, and if appropriate, additional 
funds for completion of project activities.
    Grant specialist. A Government employee who is assigned the 
responsibility of negotiating and/or administering grants.
    Historically Black Colleges and Universities. Institutions 
determined by the Secretary of Education to meet the requirements of 34 
CFR 608.2 and listed therein.
    Minority educational institution. An institution determined by the 
Secretary of Education to meet the requirements of 34 CFR 637.4.
    Multiple year grant. A grant for which NASA obligates funds for an 
initial period and states an intention to obligate funds for one or 
more additional periods. The initial period together with the unfunded 
periods exceeds one year (see Sec. 1260.13(b)).
    Non-profit organization. An organization that qualifies for the 
exemption from taxation under Sec. 501 of the Internal Revenue Code of 
1954, as amended, 26 U.S.C. 501.
    Performance Report. A concise statement of work accomplished during 
the report period (see Sec. 1260.75(e)).
    Provision. A term or condition applicable to grants awarded under 
this part 1260 (see Sec. 1260.20).
    Recipient acquired equipment. Equipment purchased or fabricated 
with grant funds by a recipient for the performance of work under its 
grant.
    Small business concern. A concern, including its affiliates, which 
is independently owned and operated, not dominant in the field of 
operation in which it is bidding, and qualifies as a small business 
under the criteria and size standards in 13 CFR part 121.
    Small disadvantaged business concern. A small business concern 
owned and controlled by individuals who are both socially and 
economically disadvantaged (within the meaning of Sec. 8(a (5) and (6) 
of the Small Business Act, as amended; 15 U.S.C. 637(a (5) and (6); and 
13 CFR 24).
    Special condition. A term or condition that is not applicable to 
all grants or is temporary in nature (see Sec. 1260.50).
    Summary of Research. A document summarizing the results of the 
entire project, which includes bibliographies, abstracts, and lists of 
other media in which the research was discussed (see 
Sec. 1260.75(f)(1)).
    Supplement. The document NASA uses to effect changes and renewals 
to grants and cooperative agreements. They can be awarded unilaterally 
at the discretion of the grant officer.
    Women-owned small business concern. A small business concern that 
is at least 51 percent owned by women who are U.S. citizens and who 
also control and operate the business (15 U.S.C. 637(d)).


Sec. 1260.3  Applicability.

    Subparts A and B of this part 1260 establish policies and 
procedures for all grants and cooperative agreements awarded by NASA to 
educational institutions and other non-profit organizations.


Sec. 1260.4   Amendment.

    This part 1260 will be amended by publication of changes in the 
Federal Register. Changes that require immediate dissemination may be 
issued as Grant Notices.


Sec. 1260.5   Publication.

    (a) The NASA Grant and Cooperative Agreement Handbook is published 
as part 1260 of title 14 of the Code of Federal Regulations (CFR).
    (b) Subscriptions to the NASA Grant and Cooperative Agreement 
Handbook may be purchased from the Superintendent of Documents, United 
States Government Printing Office, Washington, DC 20402, telephone 
number (202) 512-1800. Requests should cite GPO Subscription Stock No. 
933-001-00000-8. A subscription consists of the basic edition, plus all 
changes issued for an indefinite period.


Sec. 1260.6   Deviations.

    (a) A deviation is required for any of the following.
    (1) When a prescribed provision (but not a special condition) set 
forth verbatim in this part 1260 is modified or omitted.
    (2) When a provision is set forth in this part 1260, but not for 
use verbatim, and the Center substitutes a provision which is 
inconsistent with the intent, principle, and substance of the 
provision.
    (3) When a form prescribed by this part 1260 is altered or another 
form is used in its place.

[[Page 38061]]

    (4) When limitations, imposed by this handbook upon the use of a 
grant provision, form, procedure, or any other grant action, are 
changed.
    (5) When a form is created for recipient use that constitutes a 
``Collection of Information'' within the meaning of the Paperwork 
Reduction Act (44 U.S.C. 35) and its implementation in 5 CFR part 1320.
    (b) Requests for authority to deviate from this part 1260 shall be 
submitted to the Office of Procurement, NASA Headquarters, Contract 
Management Division (Code HK). Requests, signed by the Procurement 
Officer, shall contain:
    (1) A full description of the deviation, the circumstances in which 
it will be used, and identification of the requirement from which a 
deviation is sought;
    (2) The rationale for the request, pertinent background 
information, and the intended effect of the deviation;
    (3) The name of the recipient, identification of the grant 
affected, and the dollar value;
    (4) A statement as to whether the deviation has been requested 
previously, and, if so, details of that request; and
    (5) A copy of legal counsel's concurrence or comments.
    (c) Where it is necessary to obtain a deviation on OMB Circular A-
110 (Subpart B of this part), Code HK will process all necessary 
documents in accordance with Sec. 1260.104.

Pre-Award Requirements


Sec. 1260.10   Proposals.

    (a) A grant can result from:
    (1) An NRA, AO, CAN or BAA. A proposal submitted in response to a 
broad agency announcement (BAA) such as a NASA Research Announcement 
(NRA), Announcement of Opportunity (AO), Cooperative Agreement Notice 
(CAN), an agencywide program announcement such as the Graduate Student 
Research Program, or after approval by the Associate Administrator for 
Procurement or designee. NRA's and BAA's are described in the NASA FAR 
Supplement (NFGS) 48 CFR part 1835. AO's are described in 48 CFR part 
1870, subpart 1870.1.
    (2) An unsolicited proposal. Guidance on unsolicited proposals is 
contained in the Federal Acquisition Regulation (FAR) 48 CFR subpart 
15.5 and NFS 48 CFR subpart 1815.5. The synopsis requirement in FAR 48 
CFR 15.507(b)(4), however, does not apply to the grant process. Contact 
with NASA technical personnel prior to proposal submission is 
encouraged to determine if preparation of a proposal is warranted. 
These discussions should be limited to understanding NASA research 
needs and do not jeopardize the unsolicited status of any subsequently 
submitted proposal.
    (b) The proposal shall contain a detailed narrative description of 
the work to be undertaken, including the objectives of the project and 
the applicant's plan for carrying it out.
    (1) Budget content. All proposals shall include budget data as 
prescribed in the Budget Summary in Exhibit C of the appendix to this 
subpart A of this part 1260. Narrative detail must support the budgets 
as designated in Exhibit C to Appendix to this subpart.
    (i) Cost issues. The recipient institution is responsible for 
ensuring that costs charged are allowable, allocable, and reasonable 
under the applicable cost principles governed by OMB Circular Nos. A-21 
and A-122. For other details see Sec. Sec. 1260.25 and 1260.127.
    (ii) Indirect Costs. Subject to applicable cost principles, rates 
are negotiated between recipients and the cognizant agencies assigned 
under OMB Circular No. A-21. NASA is required to apply the negotiated 
rate for all grants awarded.
    (iii) Cost sharing. NASA may accept cost sharing when voluntarily 
offered, and all awards including cost-sharing are subject to 
Sec. Sec. 1260.13(c) and 1260.123. The amount of cost sharing will not 
be a factor in determining whether to select a proposal for award. 
However, recipients may be requested to secure nonfederal matching 
funds equal to the program portion to training and education grants.
    (2) Multiple year grants. In accordance with NASA policy to foster 
continuity of research, multiple year grant proposals are encouraged, 
where appropriate, for a period generally up to three years. Continuing 
research programs will be subject to peer evaluation at least once 
every three years. Proposals for multiple year grants shall describe 
the entire research project and include a complete budget for year one 
and separate estimates for each subsequent year (see Sec. 1260.13(b)).
    (c) Certifications and assurances shall be made in accordance with 
Sec. 1260.117, as follows.
    (1) Civil rights requirements. Annually, recipients must furnish 
assurances on NASA Form 1206 of compliance with civil rights statutes 
specified in 14 CFR parts 1250 through 1252.
    (2) Debarment and suspension, drug-free workplace, and lobbying. 
NASA grants are subject to the provisions of: 14 CFR part 1265, 
Governmentwide Debarment and Suspension (Nonprocurement); 
Governmentwide requirements for Drug-Free Workplace (Grants), unless 
excepted by Sec. 1265.110 or Sec. 1265.610; and 14 CFR part 1271 ``New 
Restrictions on Lobbying.'' These certifications are required to be 
submitted with each proposal, including extensions. NASA does not 
require any particular form or format, but does require specific 
language.


Sec. 1260.11  Evaluation and selection.

    (a) General. Technical evaluation of proposals will be conducted by 
the cognizant NASA technical office and may be based on peer reviews.
    (b) Under NRA's, AO's, CAN's, and other BAA's. The selecting 
official will furnish the grant officer a signed selection statement 
and a technical evaluation based on the evaluation criteria stated in 
the NRA, AO, CAN, or BAA. If a proposal is not selected, the proposer 
will be notified in accordance with the NRA, AO, CAN, or BAA.
    (c) Under unsolicited proposals. (1) The evaluation of unsolicited 
proposals must consider:
    (i) If the subject of the proposal is available to NASA from 
another source without restriction.
    (ii) If the proposal closely resembles a pending competitive 
acquisition or a current, open BAA's under which the unsolicited 
proposal could be evaluated.
    (iii) If the research proposed demonstrates an innovative and 
unique method, approach, or concept.
    (iv) The proposals overall scientific or technical merit.
    (v) The potential contribution to NASA's mission.
    (vi) The offeror's capabilities, related experience, facilities, 
techniques, or unique combinations of these which are integral factors 
for achieving the proposal objectives.
    (vii) The qualifications, capabilities, and experience of the 
proposed principal investigator, team leader, or key personnel who are 
critical in achieving the proposal objectives.
    (2) An unsolicited proposal recommended for acceptance shall be 
supported by a Justification for Acceptance of an Unsolicited Proposal 
(JAUP) prepared by the cognizant technical office. The JAUP shall be 
submitted for the approval of the grant officer after review and 
concurrence at a level above the technical officer. The grant officer's 
signature on the award document will indicate approval.
    (3) NASA will promptly notify in writing each organization that 
submitted a proposal that will not be funded.

[[Page 38062]]

Proposals will be returned only when requested.
    (d) Equipment justification or travel justification. These 
documents will be submitted by the technical office for grant officer 
approval when more than half of the proposed budget is for equipment or 
travel and associated indirect cost. The justification shall describe 
the extent to which the equipment or travel is necessary.
    (3) Proposal budget evaluation. (1) The technical officer will 
review the budget for conformance to program requirements and fund 
availability, indicating the results of this review in Column B of the 
proposed budget.
    (2) The grant officer will review the budget, and any changes made 
by the technical officer, to identify any item which may be unallowable 
under the cost principles, or which appear unreasonable or unnecessary. 
The grant officer will complete Column C of the proposed budget after 
discussing significant changes with the recipient. Any request for 
details should be limited.
    (f) Incremental funding. NASA reserves the right to either fully 
fund or incrementally fund grants. Grants with anticipated annual 
funding exceeding $50,000 may be funded for less than the amount stated 
in the proposal, provided:
    (1) Two increments per grant year are authorized. The second 
increment will be the balance of funding for the year.
    (2) The special condition Sec. 1260.53, Incremental Funding, is 
included in the grant.
    (g) Printing, binding, and duplicating. Proposals for efforts that 
involve printing, binding, and duplicating in excess of 25,000 pages 
are subject to the Government Printing and Binding Regulations, No. 26, 
February 1990, S. Pub. 101-9, U.S. Government Printing Office, 
Washington, DC 20402, (202) 512-1800, published by the Congressional 
Joint Committee on Printing. The technical office will refer such 
proposals to the Installation Central Printing Management Officer 
(ICPMO). The grant officer will be advised in writing of the results of 
the ICPMO review.
    (h) Rights in data. Section 1260.29 is adequate only for grants for 
basic or applied research where the principal purpose (or only expected 
NASA involvement) is the publication or dissemination of the results, 
such as in journals or NASA publications (see Sec. 1260.21).
    (i) Clean Air and Federal Water Pollution Control Acts.
    (1) By accepting a grant that contains Sec. 1260.33, the recipient 
agrees that the expenditure of grant funds is in compliance with the 
Acts.
    (2) The Administrator may approve exemptions from this prohibition 
under certain circumstances under E.O. 11738. Requests for exemptions 
or renewals thereof shall be made to the Office of Procurement, NASA 
Headquarters, Contract Management Division (Code HK), Washington, DC 
20546.


Sec. 1260.12  Choice of award instrument.

    (a) This section and Sec. 1260.111 provide guidance on the 
appropriate choice of award instruments consistent with 31 U.S.C. 6301 
to 6308. Throughout Sec. 1260.12, the term ``grant'' does not include 
``cooperative agreements.''
    (b) A procurement contract is a mutually binding legal relationship 
obligating the seller to furnish supplies or services (including 
construction), and the buyer pays for them.
    (1) The principal purpose of a procurement contract is to acquire, 
for NASA's direct use or benefit, a well-defined, specific effort 
clearly required for the accomplishment of a scheduled NASA mission or 
project.
    (2) If it is determined that a procurement contract is the 
appropriate type of funding instrument to meet NASA's purposes, the 
procurement shall be conducted under the FAR and the NFS.
    (c) A grant shall be used as the legal instrument to reflect a 
relationship between NASA and a recipient whenever the principal 
purpose is the transfer of a thing of value to the recipient to 
accomplish a public purpose of support or stimulation authorized by 
Federal statute. The following general characteristics meet the 
statutory criteria for use of a grant:
    (1) Substantial involvement is not expected between NASA and the 
recipient when carrying out the activity.
    (2) The exact course of the work and its outcome cannot be defined 
precisely and specific points in time for achievement of significant 
results cannot be realistically specified.
    (3) Simplicity and economy in execution and administration are 
mutually desirable.
    (4) Grants are distinguished from contracts in that grants provide 
financial or other tangible assistance to the recipient to carry on a 
fairly autonomous research program.
    (d) The following defines various types of NASA grants:
    (1) A research grant is used to accomplish a NASA objective through 
stimulating or supporting the acquisition of knowledge or understanding 
of the subject or phenomena under study, or attempting to determine and 
exploit the potential of scientific discoveries or improvements in 
technology, materials, processes, methods, devices, or techniques and 
advance the state of the art.
    (i) The research requires long term support (i.e., in excess of one 
year) for the study to mature to maximum scientific effectiveness (this 
does not preclude shorter-term grants;
    (ii) NASA desires, or the nature of the proposed investigation is 
such, that the recipient will bear prime responsibility for the conduct 
of research, and exercises judgment and original thought toward 
attaining the scientific goals within broad parameters of the research 
areas proposed and the resources provided;
    (iii) Meaningful technical reports (as distinguished from 
Performance Reports) can be prepared only as new findings are made, 
rather than on a predetermined time schedule.
    (2) An education grant is an agreement that provides funds to an 
educational institution or other nonprofit organizations within one or 
more of the following areas:
    (i) Capturing student interest and/or improving student performance 
in science, mathematics, technology, or related fields;
    (ii) Enhancing the skill, knowledge, or ability of teachers or 
faculty members in science, mathematics, or technology;
    (iii) Supporting national educational reform movements;
    (iv) Conducting pilot programs or research to increase 
participation and/or to enhance performance in science, mathematics, or 
technology education at all levels; and
    (v) Developing instructional materials (e.g., teacher guides, 
printed publications, computer software, and videotapes) or networked 
information services for education.
    (3) A training grant is an agreement that provides funds to an 
educational institution or other non-profit organization solely by 
providing scholarships, fellowships, or stipends to students, teachers, 
and/or faculty.
    (i) NASA training grants are awarded to colleges, universities, or 
other non-profit organizations; not to individual students, teachers, 
or faculty members. It is the responsibility of the institution 
receiving the grant to approve the faculty, teachers, and/or students 
who will participate in the specific program, in cooperation with NASA. 
If a student, teacher, or faculty member ceases to participate in the 
program for any reason, the institution, with prior NASA approval, may 
appoint another student, teacher, or faculty member to complete

[[Page 38063]]

the remaining portion of the grant period. Replacement students, 
teachers, and/or faculty electing to apply for the following program 
year are not automatically entitled to an award and are subject to the 
evaluation/selection procedures administered to new applicants. Any 
participant receiving support under a NASA training grant may not 
concurrently hold another Federal fellowship or traineeship.
    (ii) No applicant shall be denied consideration or appointment on 
the grounds of race, creed, color, national origin, age, sex, or 
disability.
    (iii) Students and faculty receiving direct support under a NASA 
training grant must be U.S. citizens.
    (iv) Duration of the award is program specific. Refer to program 
policies and procedures for details. Renewal is contingent upon a 
successful performance evaluation as prescribed by the program, 
concurrence by the NASA technical officer, and the availability of 
funds.
    (v) No substantial involvement is expected between NASA and the 
recipient. A student or faculty member receiving support under a NASA 
training grant does not incur any formal obligation to the Government.
    (vi) Unused funds may be carried over into the following program 
year without further NASA approval. This carry-over amount need not be 
shown in the budget for the next program year.
    (vii) The use of training grant funds to acquire equipment, 
passenger carrying vehicles, land (or any interest therein), or to 
acquire or construct facilities will not be permitted. Government 
furnished equipment will not be provided.
    (viii) All foreign travel must be clearly essential to the research 
effort and must, to be charged to a grant, have the prior written 
approval of the NASA technical officer and the grant officer for each 
trip, regardless of its inclusion in the proposal budget.
    (ix) An Administrative Report must be submitted under the 
guidelines described by the specific program policies and procedures.
    (4) A facilities grant can be issued by NASA under the authority of 
the Space Act, 42 U.S.C. 2473(c)(5). It is used to provide for the 
acquisition, construction, use, maintenance, and disposition of 
facilities. Facilities, as used in this subpart, means property used 
for production, maintenance, research, development, or testing.
    (i) Prior approval by the Associate Administrator of Procurement 
and a review by legal counsel to assure legal sufficiency are required. 
It is unlikely an award will be made unless Congressionally mandated.
    (ii) To obtain approval, prior to proceeding with the award a 
package will be forwarded to the Director, Contract Management Division 
(HK), that includes pertinent background information, detailed 
rationale for the request, dollar value, and name of the recipient.
    (e) A cooperative agreement shall be used as the legal instrument 
to reflect a relationship between NASA and a recipient whenever the 
principal purpose is the transfer of a thing of value to the recipient 
to accomplish a public purpose of support or stimulation authorized by 
Federal statute and substantial involvement is expected between NASA 
and the recipient during performance of the contemplated activity. 
Under 31 U.S.C. 6305, characteristics inherent in a cooperative 
agreement include those that apply to a grant, plus the following:
    (1) Substantial NASA involvement in and contribution to the 
technical aspects of the effort are necessary for its accomplishment. 
This could involve an active NASA role in collaborative relations, 
access to a NASA site or equipment, or sharing NASA facilities and 
personnel;
    (2) The project, conducted as proposed, would not be possible 
without extensive NASA-recipient technical collaboration;
    (3) The nature of the collaboration can be clearly defined and 
specified in advance (special provision Sec. 1260.51 shall be used). 
Cooperative agreements would be appropriate, for instance, where a 
university investigator works for a substantial amount of time at a 
NASA Center (or a NASA investigator works at a university), or when the 
collaboration is such that a jointly authored report or education 
curriculum product is appropriate.
    (f) Grants and cooperative agreements with foreign organizations 
are awarded under the authority of the Space Act, 42 U.S.C. 2473(c)(5).
    (1) Before initiating action, the grant officer shall coordinate 
with the Headquarters Office of External Relations, International 
Relations Division (Code IR). Grants to other than foreign government 
institutions require a review by the Office of General Counsel.
    (2) It is NASA policy that, in general, research will be 
accomplished on a no-exchange-of-funds basis with foreign entities. In 
these cases, NASA enters into agreements undertaking projects of 
international scientific collaboration. In rare instances, NASA may 
enter into an international agreement under which funds will be 
transferred to a foreign recipient.


Sec. 1260.13  Award procedures.

    (a) Multiple year grant. NASA policy is to make maximum use of 
multiple year grants to support research projects that may span several 
years.
    (1) At the time a research proposal is recommended for award, a 
decision will be made whether to award a multiple year grant. Special 
condition Sec. 1260.52, Multiple Year Grant, would be included at 
award.
    (i) For the periods approved in Sec. 1260.52, neither a new 
proposal nor another technical evaluation is required unless a special 
need for review is indicated through monitoring the project and its 
reports, by the introduction of work outside the scope of the approved 
proposal, or by the need for substantial unanticipated funding.
    (ii) A funded extension beyond the period listed in Sec. 1260.52 
may be made by using the provision Sec. 1269.22, Extensions. This 
requires the submission of a new proposal, subject to full review as 
discussed in Secs. 1260.11 and 1260.71(b), plus consideration of the 
timely submission of reports as required in Sec. 1260.21.
    (2) Normally, each year of a multiple year grant will be funded at 
the approximate level in the original award instrument. However, NASA 
program constraints and developments within the project may dictate 
adjustment in the originally anticipated level. When the actual differs 
from the planned funding, the technical officer shall mark up Column B 
of the budget summary and send it to the grant officer with an 
explanation. The recipient may rebudget under the grant provisions to 
keep the project within the funding actually provided.
    (b) Annual grant. Grants may be awarded for a short term (e.g., on 
an annual basis) and may be extended, if appropriate, as described in 
Sec. 1260.71. Extensions should be executed prior to the grant 
expiration date.
    (c) Cost sharing. NASA grant recipients usually gain no measurable 
benefit from grants, other than conducting the research. Cost sharing 
based on mutuality of interest applies to NASA grants where the grant 
officer has reason to believe that the recipient will benefit from the 
research results through sales to non-Federal entities (see 
Sec. 1260.123) When cost sharing is used, the grant officer shall use a 
Special Condition substantially as shown in Sec. 1260.54.
    (d) Partial support. NASA may provide partial support for a 
research project or conference where additional funding may be provided 
by other Federal agencies. If the grant also involves cost sharing by 
the recipient,

[[Page 38064]]

the grant officer will ensure that Sec. 1260.54 applies only to the 
non-Federal funding.


Sec. 1260.14  Limitations.

    (a) As a matter of policy, NASA does not award grants to commercial 
firms. However, Cooperative Agreements may be awarded to commercial 
firms in accordance with Sec. 1260.300.
    (b) NASA does not award grants for donative assistance purposes, 
but only to meet program objectives. Research in any academic 
discipline related to NASA interests normally will qualify. However, 
advice of legal counsel should be sought in unusual situations, or when 
unusual project activities or organizational attributes are evident.
    (c) It is NASA's policy that non-monetary (zero dollar) grants or 
cooperative agreements shall not be used (except for no-cost 
extensions). Loans of Government personal property not associated with 
a contract, grant, or cooperative agreement under 31 U.S.C. 6301 to 
6308, and made under the Space Act of 1958, should be consummated as 
loan agreements.
    (d) Grants and cooperative agreements shall not be used as legal 
instruments for consulting service arrangements (see 48 CFR subpart 
37.2 (FAR) and 48 CFR subpart 18237.2 (NFS)).


Sec. 1260.15  Format and numbering.

    (a) General, A grant shall be brief, containing only those 
provisions and special conditions necessary to protect the interests of 
the Government.
    (b) Formats. Those shown in Exhibit B of the appendix to this 
subpart A shall be used for the award of all NASA grants and 
cooperative agreements. Computer-generated versions are allowed. 
Provisions for grants with U.S. organizations shall be incorporated by 
reference, and preprinted checklists may be used. Special conditions 
and provisions for grants with foreign organizations will be printed in 
full text. An acceptance block may be added when the grant officer 
finds it necessary to require bilateral execution of the grant. When 
attaching detailed budgets, salaries will not be revealed.
    (c) The identification numbering system. (1) For research, 
education, and facilities grants, numbering shall conform to NFS 48 CFR 
1804.7102-3, except that a NAG prefix will be used in lieu of the NAS 
prefix The prefix designation will include the Center Identification 
Number; e.g., NAG5 would be the Goddard prefix designation. They will 
be sequentially numbered.
    (2) Cooperative agreements will use the prefix NCC plus the Center 
Identification Number. They will be sequentially numbered.
    (3) Training grants will use the prefix NGT plus the Center 
Identification Number. They will be sequentially numbered.
    (4) The Catalog of Federal Domestic Assistance (CFDA) Numbers does 
not apply to NASA grants.


Sec. 1260.16  Distribution.

    Copies of grants and supplements will be provided to: payment 
offices (original copy); technical officers; administrative grant 
officers when delegated; the NASA Center for AeroSpace Information 
(CASI), Attn: Document Processing Section, 800 Elkridge Landing Road, 
Linthicum Heights, Maryland 21090-2934; and other appropriate offices. 
The statement of work accepted by NASA and a copy of the approved 
budget will be provided to the administrative grant officers. CASI will 
also receive the statement of work. The file will record the addresses 
for distribution.

Provisions


Sec. 1260.20  Provisions.

    (a) The provisions set forth in Secs. 1260.21 through 1260.37 shall 
be incorporated by reference and made a part of NASA research grants, 
education grants, and cooperative agreements with U.S. educational 
institutions and nonprofit organizations.
    (b) In training grants, the provisions of the following section 
will be incorporated: Secs. 1260.22, 1260.23, 1260.25, 1260.26, 126.28, 
1260.29, 1260.31, and 1269.35.
    (c) In facilities grants, provisions will be selected on a case-by-
case basis.
    (d) In research grants awarded to foreign organizations, the 
provisions of the following sections, modified as necessary, will be in 
full text: Secs. 1260.21, 1260.22, 1260.23, 120.24, 1260.26, 1260.27, 
1260.32, and 1260.36. References will not be used to handbooks, 
statutes, or other regulations which the recipient may neither have 
access to or can realistically be expected to comply.
    (e) Whenever the word ``grant'' appears in sections Secs. 1260.21 
through 1260.38, it shall be deemed to include, as appropriate, the 
term ``cooperative agreement''.
    (f) Section 1260.148 and Appendix A to subpart B to part 1260 
address provisions to be used in contracts awarded by recipients.


Sec. 1260.21  Publications and reports.

Publications and Reports (July 1996)

    (a) NASA encourages the widest practicable dissemination of 
research results at any time during the course of the investigation. 
All information disseminated as a result of the grant shall contain 
a statement which acknowledges NASA's support and identifies the 
grant by number (e.g., ``The material is based upon work supported 
by NASA under award No(s) ________'').
    (b) Reports shall be in the English language, informal in 
nature, and ordinarily not exceed three pages (not counting 
bibliographies, abstracts, and lists of other media). The recipient 
shall submit the following reports:
    (1) A Performance Report for all but the final year of the 
grant. Each report is due 60 days before the anniversary date of the 
grant and shall briefly describe what was accomplished during the 
reporting period as outlined in Sec. 1260.151(d). A special 
provision specifying more frequent reporting may be required.
    (2) A Summary of Research (or Educational Activity Report in the 
case of Education Grants) is due within 90 days after the expiration 
date of the grant, regardless of whether or not support is continued 
under another grant. This report shall be comprehensive summary of 
significant accomplishments during the duration of the grant.
    (c) Performance Reports, Summaries of Research, and Education 
Activity Reports shall include the following on the first page:
    (1) Title of the grant.
    (2) Type of report.
    (3) Name of the principal investigator.
    (4) Period covered by the report.
    (5) Name and address of the recipient's institution.
    (6) Grant number.
    (e) Performance Reports, Summaries of Research, and Education 
Activity Reports shall be distributed as follows:
    (1) The Original to the administration grant officer, with a 
notice to the grant officer that a report was sent.
    (2) One copy, in both hard copy and electronic format, to the 
technical officer.
    (f) For Summaries of Research and published reports, one Micro-
reproducible copy shall be sent to the NASA Center for AeroSpace 
Information (CASI), Attn: Accessioning Department, 800 Elkridge 
Landing Road, Linthicum Heights, Maryland 21090-2934.


Sec. 1260.22  Extensions.

Extensions (July 1996)

    (a) It is NASA policy to provide maximum possible continuity in 
funding grant--supported research and educational activities, 
therefore, grants may be extended for additional periods of time. 
Any extension requiring additional funding should be supported by a 
proposal submitted at least three months is advance of the 
expiration date of the grant.
    (b) Recipients may extend the expiration date of a grant if 
additional time beyond the established expiration date is required 
to assure adequate completion of the original scope of work within 
the funds already made available. For this purpose, in accordance 
with Sec. 1260.125(e)(2), the recipient may unilaterally make a one-
time no-cost

[[Page 38065]]

extension, not to exceed 12 months, prior to the established 
expiration date. Written notification of such an extension, with the 
supporting reasons, must be received by the grant officer at least 
ten days prior to the expiration of the award.
    (c) Requests for approval for all other extensions (in excess of 
30 days) must be submitted in writing to the grant officer.


Sec. 1260.23  Termination and Enforcement.

Termination and Enforcement (July 1996)

    Termination and enforcement conditions of this award are 
specified in Secs. 1260.160 through 1260.162. If NASA determines 
that the recipient has materially failed to comply with the terms 
and conditions of the grant, NASA may suspend or terminate the grant 
in whole or in part after consultation with the recipient. However, 
NASA may immediately suspend or terminate the award without prior 
notice when it believes such action is necessary to protect the 
interest of the Government.


Sec. 1260.24  Change in principal investigator or scope.

Change in Principal Investigator or Scope (July 1996)

    The recipient organization and the principal investigator are 
responsible for the effective conduct of the project or activity 
supported by this award.
    (a) The recipient shall obtain the approval of the NASA grant 
officer to change the principal investigator or to continue the 
research work during a continuous period in excess of three months 
without the participation of an approved principal investigator. 
Significantly reduced availability of the services of the principal 
investigator(s) named in the grant instrument could be grounds for 
termination, unless alternatives arrangements are made and approved 
in writing by the grant officer.
    (b) Prior written approval is required from NASA if there is to 
be a significant change in the objective or scope.


Sec. 1260.25  Allowable costs.

Allowable Costs (July 1996)

    (a) The recipient institution is responsible for ensuring that 
costs charged to this award are allowable, allocable, and reasonable 
under the applicable cost principles defined in Sec. 1260.127. 
Sections 1260.24, 1260,27, 1260.32, and requests for additional 
funding require prior approvals.
    (b) Payments to individuals for consultant services under a NASA 
grant shall not exceed the daily equivalent of the maximum rate paid 
for Level IV of the Executive Schedule, exclusive of expenses and 
indirect cost.
    (c) Recipients may incur pre-award costs 90 calendar days prior 
to award, provided the costs are necessary for the effective and 
economical conduct of the project and are otherwise allowable under 
the terms of the grant. All preaward costs are incurred at the 
recipient's risk. NASA is under no obligation to reimburse such 
costs if an award is not subsequently made, or if an award is made 
for a lesser amount than the recipient anticipated and is 
insufficient to cover the pre-award costs.
    (d) Comptroller General decisions govern allowability of costs 
for international air transportation (see Sec. 1260.37).


Sec. 1260.26  Financial management.

Financial Management (July 1996)

    (a) Payment. Advance payments by electronic funds transfer will 
be made by the Financial Management Office of the NASA Center which 
issued the grant in accordance with procedures provided to the 
recipient. The recipient shall submit Federal Cash Transaction 
Reports (SF 272) to the aforementioned office and, if NASA has 
delegated administration, to the administrative grant officer, 
within 15 working days following the end of each Federal fiscal 
quarter, containing current estimates of the cash requirements for 
each of the four months following the quarter being reported. The 
final SF 272 is due within 90 days after the expiration date of the 
grant.
    (b) Management and records. Financial and program management 
requirements of Secs. 1260.120 through 1260.128 apply to all 
recipients. Financial records, supporting documents, statistical 
records, and all other records pertinent to this award shall be 
retained in accordance with Sec. 1260.153. Provisions of 
Sec. 1260.26(c) shall apply to subcontractors performing substantive 
work under this grant.
    (c) Unexpended balances. Any unexpended balance of funds which 
remains at the end of any funding period, except the final funding 
period of the grant, shall be carried over to the next funding 
period, and may be used to defray costs of any funding period of the 
grant. The estimated amount of unexpended funds shall be identified 
in the grant budget section of the recipient's renewal proposal.
    (d) Program income will be subject to Sec. 1260.124.
    (e) Provisions of Sec. 1260.26(c) shall apply to subcontractors 
performing substantive work under this grant.


Sec. 1260.27  Equipment and other property.

Equipment and Other Property (July 1996)

    (a) NASA permits acquisition of special purpose equipment (as 
defined in OMB Circulars A-21 and A-122) specifically required and 
only used for research, medical, scientific or other technical 
activities.
    (1) Acquisition of special purpose equipment, costing in excess 
of $5,000 and not included in the approved proposal budget, requires 
the prior approval of the administrative grant officer (unless the 
item is merely a different model of an item in the approved proposal 
budget).
    (2) Title to special purpose equipment acquired by the recipient 
with grant funds, valued under $5,000 in acquisition cost, shall 
vest in the recipient and will be considered ``exempt'' in 
accordance with Sec. 1260.133(b).
    (3) NASA may elect to take title to items of special purpose 
equipment valued at more than $5,000 (acquisition cost each) or when 
fabricated into a single coherent system (aggregate acquisition 
cost). The recipient will be advised of the Government's intention 
to take title in writing if the item is approved for recipient 
purchase. If the Government does not exercise its right to take 
title to property acquired by the recipient with grant funds at the 
time of approval, the property will be considered exempt according 
to Sec. 1260.133(b). The recipient shall hold title without further 
obligation to the Federal Government.
    (b) General purpose equipment items require the prior approval 
of the Grant Officer to be a direct charge, shall be titled to NASA, 
managed in accordance with Sec. 1260.134(f), and reported in 
accordance with Sec. 1260.27(e).
    (c) Grant funds may be expended for the acquisition of land or 
interests therein or for the acquisition and construction of 
facilities only under a facilities grant, as defined in 
Sec. 1260.12(g).
    (d) The recipient shall maintain a property management system 
which meets the requirements of Secs. 1260.130 through 1260.137. The 
cognizant property administration officer or property administrator 
shall be notified of any major change to an approved system.
    (e) The recipient shall submit an Inventory Report, to be 
received no later than October 31 of each year, which lists all 
Federally owned property in its custody as of September 30. A Final 
Inventory Report of Federally Owned Property, including equipment 
where title was taken by the Government, will be submitted by the 
recipient no later than 60 days after the expiration date of the 
grant.
    (1) All reports will include the information listed in paragraph 
(f)(1) of Sec. 1260.134, Equipment.
    (2) Negative responses in the Final Inventory Report, when there 
is no reportable equipment, are required.
    (3) The original of each report shall be submitted to the Center 
Deputy Chief Financial Officer (Finance). Copies shall be furnished 
to the Center industrial property officer and to ONR .


Sec. 1260.28   Patent rights.

Patent Rights (July 1996)

    This award is subject to the provisions of 37 CFR 401.3(a) which 
requires use of the standard clause set out at 37 CFR 401.14 
``Patent Rights (Small Business Firms and Nonprofit Organizations)'' 
and the following:
    (a) Where the term ``contract'' or ``contractor'' is used in the 
``Patent Rights'' clause, the term shall be replaced by the term 
``grant'' or ``recipient,'' respectively.
    (b) In each instance where the term ``Federal Agency,'' 
``agency,'' or ``funding Federal agency'' is used in the ``Patent 
Rights'' clause, the term shall be replaced by the term ``NASA.''
    (c) The NASA regulation applicable to paragraph (e) of the 
``Patent Rights'' clause is at 37 CFR Part 404, Licensing of 
Government-owned Inventions.
    (d) The following item is added to the end of paragraph (f) of 
the ``Patent Rights'' clause:
    (5) The recipient shall include a list of all Subject Inventions 
required to be disclosed during the preceding year in the 
performance report, technical report, or renewal proposal, and a 
complete list (or a negative statement)

[[Page 38066]]

for the entire award period shall be included in the summary of 
research.
    (e) The term ``subcontract'' in paragraph (g) of the ``Patent 
Rights'' clause shall include purchase orders.
    (f) The NASA implementing regulation for paragraph (g)(2) of the 
``Patent Rights'' clause is at 48 CFR 1827.373(b).
    (g) The following requirement constitutes paragraph (1) of the 
``Patent Rights'' clause:
    (1) Communications. A copy of all submissions or requests 
required by this clause, plus a copy of any reports, manuscripts, 
publications or similar material bearing on patent matters, shall be 
sent to the Center Patent Counsel and the administrative grant 
officer in addition to any other submission requirements in the 
grant provisions. If any reports contain information describing a 
``subject invention'' for which the recipient has elected or may 
elect to retain title, NASA will use reasonable efforts to delay 
public release by NASA or publication by NASA in a NASA technical 
series until an application filing date has been established, 
provided that the recipient identify the information and the 
``subject invention'' to which it relates at the time of submittal. 
If required by the administrative grant officer, the recipient shall 
provide the filing date, serial number and title, a copy of the 
patent application, and a patent number and issue date for any 
``subject invention'' in any country in which the recipient has 
applied for patents.
    h. NASA Inventions. NASA will use reasonable efforts to report 
inventions made by NASA employees as a consequence of, or which bear 
a direct relation to, the performance of specified NASA activities 
under this agreement and, upon timely request, will use reasonable 
efforts to grant recipient an exclusive, or partially exclusive, 
revocable, royalty-bearing license, subject to the retention of a 
royalty-free right of the Government to practice or have practiced 
the invention by or on behalf of the Government.
    i. In the event NASA contractors are tasked to perform work in 
support of specified activities under a cooperative agreement and 
inventions are made by contractor employees, and NASA has the right 
to acquire or has acquired title to such inventions, NASA will use 
reasonable efforts to report such inventions and, upon timely 
request, will use reasonable efforts to grant recipient an 
exclusive, or partially exclusive, revocable, royalty-bearing 
license, subject to the retention of a royalty-free right of the 
Government to practice or have practiced the invention by or on 
behalf of the Government.


Sec. 1260.29   Rights in data.

Rights in Data (July 1996)

    (a) Fully Funded Efforts.
    (1) ``Data'' means recorded information, regardless of form, the 
media on which it may be recorded, or the method of recording, 
created under the grant. The term includes, but is not limited to, 
data of a scientific or technical nature, and any copyrightable work 
in which the recipient asserts copyright, or for which copyright 
ownership was purchased, under the grant.
    (2) The recipient grants to the Federal Government, a royalty-
free, nonexclusive and irrevocable license to use, reproduce, 
distribute (including distribution by transmission) to the public, 
perform publicly, prepare derivative works, and display publicly, 
data in whole or in part and in any manner for Federal purposes and 
to have or permit others to do so for Federal purposes only. Federal 
purposes include competitive procurement but do not include the 
right to have or permit others to use data for commercial purposes.
    (3) In order that the Federal Government may exercise its 
license rights in data, the Federal Government, upon request to the 
recipient, shall have the right to review and/or obtain delivery of 
data resulting from the performance of work under this grant, and 
authorize others to receive data to use for Federal purposes.
    (4) If information which recipient considers to embody trade 
secrets or to comprise commercial or financial information which is 
privileged or confidential is disclosed orally or visually to NASA, 
such information must be reduced to tangible, recorded form (i.e., 
converted into data as defined herein), identified and marked with a 
suitable notice or legend and furnished to NASA within 10 days after 
such oral or visual disclosure, or NASA shall have no duty to limit 
or restrict, and shall not incur any liability for, any disclosure 
and use of such information.
    (b) Cost Sharing and/or Matching Efforts. When the recipient 
cost shares with the Government on the effort, the following is 
added:
    (5) In the event data first produced by recipient in carrying 
out recipient's responsibilities under an agreement is furnished to 
NASA, and recipient considers such data to embody trade secrets or 
to comprise commercial or financial information which is privileged 
or confidential, and such data is so identified with a suitable 
notice or legend, the data will be maintained in confidence and 
disclosed and used by the Government and its contractors (under 
suitable protective conditions) only for experimental, evaluation, 
research and development purposes, by or on behalf of the Government 
for an agreed to period of time, and thereafter for Federal purposes 
as defined in Sec. 1260.29(a)(2).
    c. Add the following paragraph in Cooperative Agreements. (#) As 
to data first produced by NASA in carrying out NASA's 
responsibilities under a cooperative agreement and which data would 
embody trade secrets or would comprise commercial or financial 
information that is privileged or confidential if it has been 
obtained from the recipient, such data will be marked with an 
appropriate legend and maintained in confidence for an agreed to 
period of up to ____ years (insert a period of up to 5 years.) after 
development of the information, with the express understanding that 
during the aforesaid period such data may be disclosed and used 
(under suitable protective conditions) by or on behalf of the 
Government for Government purposes only, and thereafter for any 
purpose whatsoever without restriction on disclosure and use. 
Recipient agrees not to disclose such data to any third party 
without NASA's written approval until the aforementioned restricted 
period expires.


Sec. 1260.30   National security.

National Security (July 1996)

    Normally, NASA grants do not involve classified information. 
However, if information is sought or developed by the recipient that 
should be classified in the interests of national security, the NASA 
grant officer who issued the grant shall be notified immediately.


Sec. 1260.31  Nondiscrimination.

Nondiscrimination (July 1996)

    (a) To the extent provided by law and any applicable agency 
regulations, this award and any program assisted thereby are subject 
to the provisions of Title VI of the Civil Rights Act of 1964 (Pub. 
L. 88-352), Title IX of the Education amendments of 1972 (Pub. L. 
92-318), 20 U.S.C. 1681 et seq.), Section 504 of the Rehabilitation 
Act of 1973 (29 U.S.C. 794), the Age Discrimination Act of 1975 
(Pub. L. 94-135), the implementing regulations issued pursuant 
thereto by NASA, and the assurance of compliance which the recipient 
has filed with NASA.
    (b) The recipient shall obtain from each organization that 
applies or serves as a subrecipient, contractor or subcontractor 
under this award (for other than the provision of commercially 
available supplies, materials, equipment, or general support 
services) an assurance of compliance as required by NASA 
regulations.
    (c) Work on NASA grants is subject to the provisions of Title VI 
of the Civil Rights Act of 1964 (Pub. L. 88-352; 42 U.S.C. 2000d-l), 
Title IX of the Education Amendments of 1972 (20 U.S.C. 1680 et 
seq.), section 504 of the Rehabilitation Act of 1973, as amended (29 
U.S.C. 794), the Age Discrimination Act of 1975 (42 U.S.C. 6101 et 
seq.), and the NASA implementing regulations (14 CFR parts 1250, 
1251, and 1252).


Sec. 1260.32  Subcontracts.

Subcontracts (July 1996)

    (a) For all subcontracts over $25,000 awarded by the recipient, 
the recipient shall provide the following to the NASA grant office 
for approval.
    (1) A copy of the proposed subcontract.
    (2) Basis for subcontractor selection.
    (3) Justification for lack of competition when competitive bids 
or offers are not obtained.
    (4) The subcontract budget and basis for subcontract cost or 
price.
    (b) The recipient (with the exception of foreign organizations) 
shall utilize small business concerns, small disadvantaged business 
concerns, Historically Black Colleges and Universities, minority 
educational institutions, and women-owned small business concerns as 
subcontractors to the maximum extent practicable.
    (c) All contracts awarded by a recipient, including small 
purchases, shall contain the provisions found in appendix A to 
subpart B of part 1260, as applicable.

[[Page 38067]]

Sec. 1260.33  Clean Air and Water.

Clean Air and Water (July 1996)

    (Applicable only if the award exceeds $100,000, or a facility to 
be used has been the subject of a conviction under the Clean Air Act 
(42 U.S.C. 1857c-8(c)(1) or the Federal Water Pollution Control Act 
(42 U.S.C. 1857c-8(c)(1) or the Federal Water Pollution Control Act 
(33 U.S.C. 1319(c)), and 9s listed by EPA, or if the award is not 
otherwise exempt).
    The recipient agrees to he following:
    (a) Comply with applicable standards, orders or regulations 
issued pursuant to the Clean Air Act, as amended (42 U.S.C. 7401, et 
seq.) and of the Federal Water Pollution Control Act (33 U.S.C. 1251 
et seq.).
    (b) That no portion of the work under this award will be 
performed in a facility listed on the Environmental Protection 
Agency (EPA) List of Violating Facilities on the date that this 
award was effective unless and until the EPA eliminates the name of 
such facility or facilities from such listings.
    (c) Use its best efforts to comply with clear air standards and 
clean water standards at the facility in which the award is being 
preformed.
    (b) Insert the substance of the provisions of this clause into 
any nonexempt subward or contract under the award.
    (e) Report violations to NASA or to EPA.


Sec. 1260.34  Procurement standards.

Procurement Standards (July 1996)

    a. The recipient shall maintain a procurement system which, at a 
minimum, meets the requirements set forth in Secs. 1260.140 through 
1260.148.
    b. Procurement programs funded with Federal funds shall give 
preference to he purchase of recycled products pursuant to EOA 
guidelines.


Sec. 1260.35  Foreign national employee investigative requirements.

Foreign National Employee Investigative Requirements (July 1966)

    (a) The recipient agrees to provide the information requested by 
NASA to allow the recipient's access to a NASA Center for 
performance of this grant. All visit requests must be submitted in a 
timely manner in accordance with instructions provided by the 
Center(s) to be visited.
    (b) The recipient acknowledges that NASA reserves the right to 
perform security checks on foreign national visitors, and to deny or 
restrict access to a NASA Center, facility, computer system, or 
technical information in the interest of national security.


Sec. 1260.36  Travel and transportation.

Travel and Transportation (July 1996)

    (a) The Fly America Act, 49 U.S.C. 40118, requires the recipient 
to use U.S. flag air carriers for international air transportation 
of personnel and property to he extent that service by those 
carriers is available.
    (b) Department of Transportation regulations, 49 CFR part 173, 
govern recipient shipment of hazardous materials and other items.
Special Conditions


Sec. 1260.50  Special conditions.

    (a) In addition to the provisions set forth in Secs. 1260.21 
through 1260.37, NASA grants are subject to special conditions, 
which either are not applicable to all awards or are temporary in 
nature. Examples are found in Secs. 1260.51 through 1260.66, but 
NASA may impose other conditions as discussed in Sec. 1260.114 or as 
the requirements dictate. A deviation to this handbook is not 
required for changes to special conditions.
    (b) Special conditions will be printed in full text.
    (c) For training grants, use Sec. 1260.57 plus any other special 
conditions necessary.
    (d) In facilities grants, special conditions will be selected on 
a case-by-case basis. As appropriate, the requirements of the 
following sections will apply: Secs. 1260.132, Real property; 
1260.123(c), Cost sharing or matching; and 1260.125(h), Revision of 
budget and program plans.
    (e) Research grants with foreign organizations will include 
special conditions Secs. 1260.58 through 1260.62, modified as 
necessary, when not covered under a Memorandum of Agreement (MOA). 
In addition, other clauses (e.g., Secs. 1260.63 through 1260.66) 
will be written with the aid of General Counsel, and added when 
necessary.


Sec. 1260.51  Cooperative agreement special condition.

Cooperative Agreement Special Condition (July 1996)

    (a) This award is a cooperative agreement as it is anticipated 
there will be substantial NASA involvement during performance of the 
effort. NASA and the recipient mutually agree to the following 
statement of anticipated cooperative interactions which may occur 
during the performance of this effort:
    (Reference the approved proposal that contains a detailed 
description of the work and insert a concise statement of the exact 
nature of the cooperative interactions that deals with existing 
facts and not contingencies.)
    (b) The terms ``grant'' and ``recipient'' mean ``cooperative 
agreement'' and ``recipient of cooperative agreement,'' 
respectively, wherever the terms appear in provisions and special 
conditions included in this agreement.
    (c) NASA's ability participate and perform its collaborative 
effort under this cooperative agreement is subject to the 
availability of appropriated funds and nothing in this cooperative 
agreement commits the United States Congress to appropriate funds 
therefor.


Sec. 1260.52  Multiple year grant.

Multiple Year Grant (July 1996)

    This is a multiple year grant. Contingent on the availability of 
funds, scientific progress of the project, an continued relevance to 
NASA programs, NASA anticipates continuing support at approximately 
the following levels:
    Second year $________, Anticipated funding date ________.
    Third year $________, Anticipated funding date ________.
    (Periods may be added or omitted, as applicable).


Sec. 1260.53  Incremental funding.

Incremental Funding (July 1996)

    Only $________ of the amount indicated on the face of this award 
is available for payment and allotted to this award. NASA 
contemplates making an additional allotment in the amount of 
$________ by ________. These funds will be obligated as appropriated 
funds become available without any action required by the recipient. 
The recipient will be given written notification by the NASA grant 
officer. NASA is not obligated to reimburse the recipient for the 
expenditure of amounts in excess of the total funds allotted by 
NASA.


Sec. 1260.54  Cost sharing.

Cost Sharing (July 1996)

    (a) NASA and the recipient will share in providing the resources 
necessary to perform the agreement. NASA funding and non-cash 
contributions (personnel, equipment, facilities, etc.) and the 
dollar value of the recipient's cash and/or non-cash contribution 
will be on a ____ percent NASA; ____ percent recipient basis. 
Criteria and procedures for the allowability and allocability of 
cash and non-cash contributions shall be governed by Sec. 1260.123, 
Cost Sharing or Matching. The applicable Federal cost principles are 
cited in Sec. 1260.127.
    (b) The recipient's share shall not be charged to the Government 
under this agreement or under any other contract, grant, or 
cooperative agreement.


Sec. 1260.55  Reports substitution.

Reports Substitution (July 1996)

    Technical Reports may be substituted for the required 
Performance Reports. The title page of such reports shall clearly 
indicate that the substitution has been made and will show the 
period covered by the originally required Performance Report.


Sec. 1260.56  Withholding.

Withhold (July 1996)

    Pending receipt of a satisfactorily completed Summary of 
Research and/or other reports required under NASA grant No. 
________, the Financial Management Office will withhold all payments 
under this grant (including advance payments). The grant officer 
will notify the NASA Financial Management Office when payments can 
resume.


Sec. 1260.57  Training grant reports.

Training Grant Reports (July 1996)

    No later than 60 days after the ending date of the grant, the 
recipient will provide the NASA Headquarters Office of Human 
Resources and Education an Administrative Report that details the 
fellow's research and academic progress. Pertinent information 
relating to the student, including the degree granted and employment 
plans, are to be included. Students are required to submit a

[[Page 38068]]

Student Evaluation Form to the administrative contact at the Center 
monitoring the work 90 days prior to the ending date of the 
fellowship.


Sec. 1260.58  Interest bearing accounts.

Interest Bearing Accounts (July 1996)

    Advances of federal funds shall be maintained in interest-
bearing accounts. Interest earned on federal advances deposited in 
such accounts shall be remitted to DHHS at least quarterly, as 
instructed by the Financial Management Office of the NASA Center 
which issued the grant. Interest amounts up to $250 per year may be 
retained by the recipient.


Sec. 1260.59  Choice of law.

Choice of Law (July 1996)

    The rights and obligations of the parties to the grant (or 
cooperative agreement) shall be ascertainable by recourse to the 
laws of the United States of America. However, it is understood that 
the laws of the recipient's country will generally apply to 
recipient activities within that country.


Sec. 1260.60  Invention reporting and rights.

Invention Reporting and Rights (July 1996)

    (a) As used in this provision:
    (1) The term ``invention'' means any invention, discovery or 
improvement:
    (2) The term ``made'' means the conception or first actual 
demonstration that the invention is useful and operable.
    (b) The recipient shall report promptly to the grant officer 
each invention made in the performance of work under this grant. The 
report of such invention shall:
    (1) Identify the inventor(s) by full name; and
    (2) Include such full and complete technical information 
concerning the invention as is necessary to enable an understanding 
of the nature and operation thereof.
    (c) The recipient hereby grants to the Government of the United 
States of American, as represented by the Administrator of the 
National Aeronautics and Space Administration, the full rights, 
title, and interest in and to each such invention throughout the 
world except ____________________.


Sec. 1260.61  Public information.

Public Information (July 1996)

    Information regarding this grant (including a copy of this award 
document) may be released by the recipient without restriction. 
However, technical information relating to work performed under this 
grant where there was a NASA contribution should be released by the 
recipient only after consultation with the NASA Technical Officer.


Sec. 1260.62  Allocation of risk/liability.

Allocation of Risk/Liability (July 1996)

    a. With respect to activities undertaken under this agreement, 
the recipient agrees not to make any claim against NASA or the U.S. 
Government with respect to the injury or death of its employees or 
its contractors and subcontractor employees, or to the loss of its 
property or that of its contractors and subcontractors, whether such 
injury, death, damage or loss arises through negligence or 
otherwise, except in the case of willful misconduct.
    b. In addition, the recipient agrees to indemnify and hold the 
U.S. Government and its contractors and subcontractors harmless from 
any third party claim, judgment, or cost arising from the injury to 
or death of any person, or for damage to or loss of any property, 
arising as a result of its possession or use of any U.S. Government 
property.


Sec. 1260.63  Payment--to foreign organizations.

Payment--To Foreign Organizations

    (For grants or cooperative agreements with foreign 
organizations, this clause will be developed on a case-by-case 
basis.)


Sec. 1260.64  Customs clearance and visas.

Customs Clearance and Visas

    (For grants or cooperative agreements with foreign 
organizations, this clause will be developed on a case-by-case 
basis.)


Sec. 1260.65  Taxes.

Taxes

    (For grants or cooperative agreements with foreign 
organizations, this clause will be developed on a case-by-case 
basis.)


Sec. 1260.66  Exchange of technical data and goods.

Exchange of Technical Data and Goods

    (For grants or cooperative agreements with foreign 
organizations, this clause will be developed on a case-by-case 
basis.)
Post-Award Requirements


Sec. 1260.70  Delegation of administration.

    (a) Pursuant to the Government-wide ``cross-servicing'' policy, 
NASA grants and cooperative agreements shall be delegated for full 
administration (including property and closeout) to the Office of Naval 
Research (ONR). Exceptions to this policy must be approved by the 
Procurement Officer, documented, and made part of the file.
    (b) Delegations will be made by using NASA Form NF 1671. The grant 
officer will strike out any parts of the form that do not apply and 
write in specific instructions regarding actions requiring ONR 
involvement. The grant officer will inform the recipient, in writing, 
that a delegation has been made.
    (c) ONR will acknowledge this delegation by returning a NF 1431 to 
the grant officer within five days of receipt.


Sec. 1260.71  Supplements and renewals.

    (a) A NASA grant officer can unilaterally make minor or 
administrative changes to a grant; e.g., Reports Substitution 
(Sec. 1260.55), Withholding (Sec. 1260.56), and Novations 
(Sec. 1260.74). Renewal of grant (Sec. 1260.22) is a unilateral 
decision by NASA based upon availability of funds, continued research 
relevance, and progress made by the recipient.
    (b) To eliminate the paperwork burdens associated with closeout and 
negotiations for a new grant, ongoing efforts to continue the same 
effort at the same institution will be accomplished by modifying the 
current instrument, unless there is a significant change in the nature 
of the work or closure would be in the best interest of the Government.
    (1) Grants should be renewed prior to their expiration date. When 
possible, the period of performance should be continuous with the prior 
grant. If otherwise acceptable, NASA may fund an extension through a 
multiple year grant (Sec. 1260.13(a)) or by extending the existing 
grant. Such extensions (other than no-cost extensions) must be 
supported by a new proposal from the recipient.
    (2) To insure continuation, the technical office should forward to 
the grant office a complete technical evaluation, support 
documentation, and/or a funded Procurement Request at least 45 days 
before the expiration of the funded period.
    Although the grant officer has little control over the timely 
receipt of purchase requests, he/she is responsible for informing the 
technical officer of current lead-time requirements and for timely 
processing continuation agreements.
    (3) The technical office will notify the recipient if the grant is 
to be funded or if additional information is required. Alternatively, 
if a grant is not to be renewed, the program office should give the 
grant officer and the recipient 30-day notice.
    (c) Requests by the recipient to modify a grant must be in writing 
to the grant officer. Examples might include changes in principal 
investigator or additional funding. After concurrence by the program 
manager, a grant supplement will be unilaterally issued at the 
discretion of the grant officer.
    (d) A single no-cost extension for up to 12 months can be 
unilaterally issued by the recipient as detailed in paragraph (b) of 
the provision Sec. 1260.22, Extensions.
    (e) When two or more actions are completed on a single supplement, 
the supplement will reflect the effective date of the earliest action.

[[Page 38069]]

Sec. 1260.72  Adherence to original budget estimates.

    (a) Although NASA assumes no responsibility for budget overruns, 
the recipient may spend grant funds without strict adherence to 
individual allocations within the proposed budgets, except as provided 
in Secs. 1260.27 and 1260.32.
    (b) The revision of budgets and program plans are covered in 
Sec. 1260.125.


Sec. 1260.73  Transfers, novations, and change of name agreements.

    (a) Transfer of grants. Novation as provided in Sec. 1260.73(b), is 
the only means by which a grant may be transferred from one institution 
to another. When the principal investigator changes organizational 
affiliation and desires support for the research at a new location and 
novation is not used, a new proposal must be submitted to NASA via the 
appropriate officials of the new institution. Although such a proposal 
will be reviewed in the normal manner, every effort will be made to 
expedite a decision. Regardless of the action taken on the new 
proposal, final reports on the original grant, describing the 
scientific progress and expenditure to date, will be required.
    (b) Novation and change of name. All novation agreements and change 
of name agreements of the recipient, prior to execution, shall be 
reviewed by legal counsel for legal sufficiency. When a change in 
principal investigator from one institution to another occurs, novation 
of the grant is preferable to termination.


Sec. 1260.74  Property use, disposition, and vesting of title.

    (a) Administrative grant officers shall not approve the expenditure 
of grant funds for the acquisition of general purpose equipment as 
defined by OMB Circulars A-21 and A-122 unless the recipient's 
justification for the equipment demonstrates that the equipment will be 
used exclusively for research.
    (b) Property administration and plant clearance for all grants and 
cooperative agreements will be delegated to the appropriate DoD 
property administration office.
    (c) Administrative grant officers will provide copies of property 
related grant documentation to the Center industrial property officer 
(prior to award or modification) when the program office elects to 
retain title to an existing item of Government property, to furnish the 
property to the recipient in lieu of donation or to take title to 
property acquired by the recipient. When NASA acquires title to items 
of recipient acquired equipment or when NASA transfers an item of 
Government property to a recipient as Federally owned property, the 
administrative grant officer shall notify both the cognizant NASA 
Center financial management officer and the equipment management 
officer to ensure proper entries in financial and property accounting 
records.
    (d) NASA policy encourages titling as ``exempt'' all property 
acquired by a nonprofit organization whose primary purpose is the 
conduct of scientific research, without further obligation to the 
Federal Government. Unless NASA takes title, equipment purchased with 
grant funds vests in the recipient subject to Sec. 1260.134.
    (1) If NASA elects to take title to recipient acquired property, 
said decision will be subject to Sec. 1260.132(b)(3).
    (2) Title to individual items or coherent systems (as defined in 
Sec. 1260.74(f)) of recipient acquired equipment purchased at a cost of 
more than $5,000 may revert back to NASA at NASA's discretion, subject 
to the following conditions.
    (i) NASA shall notify the recipient in writing as part of the 
approval for retaining the item. If the item was requested as part of 
the original budget, the award must specify NASA's intention to take 
title.
    (ii) Government titled property will be subject to the provisions 
for other Federally owned property as stated in Sec. 1260.133.
    (3) Title to equipment costing $5,000 or less is not subject to 
transfer to the agency, except under the conditions of Sec. 1260.74(f).
    (e) Title to Federally-owned property remains with the Government.
    (1) In accordance with Pub. L. 94-519, NASA will not acquire 
property from other agencies for use on NASA grants.
    (2) When Federally-owned property is reported excess by a 
recipient, the administrative grant officer will report the equipment 
to the Center property disposal officer.
    (3) NASA policy encourages the donation of existing, excess NASA 
property to nonprofit organizations whose primary purpose is the 
conduct of scientific research.
    (f) When two or more components are fabricated into a single 
coherent system in such a way that the components lose their separate 
identities, and their separation would render the system useless for 
its original purpose, the components will be considered as integral 
parts of a single system. If such a system includes recipient-owned 
components, the property will be considered to be exempt. The 
requirement for agreement regarding NASA's retention of its option to 
take title shall further apply where it is expected that one or more 
recipient-acquired components costing $5,000 or less will be fabricated 
into a single coherent system costing in excess of $5,000. However, an 
item that is used ancillary to a system, without loss of its separate 
identity and usefulness, will be considered as a separate item and not 
as an integral component of the system.


Sec. 1260.75  Reports.

    (a) The grant officer is responsible for submitting the Individual 
Procurement Action Report (NASA Form 507) for all grant actions.
    (b) The Committee on Academic Science and Engineering (CASE) Report 
(NASA Form 1356), for research grants awarded to educational 
institutions, is submitted with the basic award procurement request. In 
the case of certain non-funded actions for educational institutions, 
the NF 1356 is initiated by the grant officer.
    (c) The Federal Cash Transactions Report (SF 272) shall be 
submitted by the recipient within 15 working days following the end of 
each Federal fiscal quarter, as a condition of receiving advance 
payments. Instructions and answers to payment questions will be 
provided by the Financial Management Office of the Center that issued 
the grant. (see Sec. 1260.152.)
    (d) The annual Inventory Report of Federally Owned Property in 
Custody of the Recipient will be submitted by the recipient by October 
31, as required by Sec. 1260.27(e). The listing shall include 
information specified in Sec. 1260.134(f) together with beginning and 
ending dollar value totals for the reporting period.
    (e) A Performance Report shall be submitted in accordance with 
Secs. 1260.21 and 1260.151(d). Recipients shall not be required to 
submit more than the original and two copies of performance reports 
(Sec. 1260.151(e)). At the request of the technical officer, this 
requirement may be modified by use of special condition Sec. 1260.55 
entitled ``Reports Substitution''.
    (f) Final reports are as follows.
    (1) A Summary of Research for research grants, an Education 
Activity Report for education grants, or an Administrative Report for 
training grants, shall be submitted as required by Sec. 1260.21 or 
Sec. 1260.57. Citation of publications resulting from research, or 
abstracts thereof, may serve as all or part of the summary. A separate 
report is required if inventions and patents

[[Page 38070]]

resulted from the work. In addition, students are required to submit a 
Student Evaluation Form to the administrative contact at the Center 
monitoring the work 90 days prior to the ending date of a fellowship.
    (2) A Final Inventory Report of Federally Owned Property, including 
equipment where title was taken by the Government, shall be submitted 
by the recipient no later than 60 days after the end of the grant, as 
required by Sec. 1260.27.
    (3) A properly certified Final Federal Cash Transactions Report, SF 
272, is required from the recipient for each grant, as addressed in 
Sec. 1260.26(a).
    (g) One copy of each Disclosure of Lobbying Activities (SF LLL), 
under 14 CFR 1271.110, shall be provided by the grant officer to the 
Procurement Officer for transmittal to the Director, Contract 
Management Division (Code HK). Suspected violations of the statutory 
prohibitions implemented by 14 CFR part 1271 shall be reported to Code 
HK.
    (h) The Director, Program Operations Division (Code HS), shall 
provide to the General Services Administration information concerning 
all NASA debarments, suspensions, determinations of ineligibility, and 
voluntary exclusions of persons in accordance with 14 CFR 1265.505.
    (i) Remedies for Noncompliance are delineated in Sec. 1260.162.
    (1) Failure of the recipient to provide a required grant report can 
result in the Agency and the public being denied information about 
grant activities, NASA officials having less information for making 
decisions, grant closeout being delayed, and confidence being 
undermined as to whether the recipient will meet the requirements under 
other grants. Because NASA grants provide for advance payments, a 
recipient could be fully paid before final reports are due. At this 
point, it is too late to withhold payment on the existing grant.
    (2) Consistent with Secs. 1260.122(h) and 1260.162(a), NASA does 
not withhold payment until a recipient has failed to comply with report 
requirements for more than 90 days. To remedy failure to furnish 
reports, special condition Sec. 1260.56, Withholding, should be used 
when awarding a new grant or modifying an existing grant with non-
responsive organizations.
    (i) Special condition Sec. 1260.56 instructs the Financial 
Management Office to withhold payment pending receipt of the 
satisfactorily completed reports required in Sec. 1260.75.
    (ii) The grant officer may waive the withholding requirement when 
the recipient has taken corrective action that makes withholding 
unnecessary. To release for payment the amount withheld, grant officers 
shall send a memorandum to their Financial Management Office.


Sec. 1260.76  Suspension or termination.

    Suspension of termination of a grant prior to the planned 
expiration date must be reserved for exceptional situations that cannot 
be handled any other way (see Secs. 1260.23 and 1260.160). Before 
suspending or terminating any grant with a university, the NASA grant 
officer and technical officer shall take into account the consequences 
to graduate students working under the grant.


Sec. 1260.77  Closeout procedures.

    The closeout of a grant is the process by which NASA determines 
that all applicable administrative actions and all required work under 
the instrument have been completed by both the recipient and NASA and 
no further action is necessary (see Sec. 1260.171).
    (a) Initiation. The NASA grant officer shall determine from the 
technical officer that work under a particular grant will not be 
continued or is completed. The NASA grant officer will promptly notify 
ONR to begin closeout within 90 days of this determination. ONR will 
inform the recipient of pending closeout and the final documentation 
required, to the extent practicable, prior to the grant's expiration 
date.
    (1) To expedite closeout, NASA grant officers shall respond to ONR 
inquiries within 30 days. The use of E-mail communication between ONR 
and NASA is encouraged.
    (2) Recipients shall not be requested to complete forms or supply 
information other than discussed in Sec. 1260.75(c) through (f), except 
in unusual situations.
    (b) Reports submission. ONR will ensure that all reports required 
from the recipient (see Sec. 1260.75) have been received by the 
appropriate NASA offices.
    (c) Reports certification. ONR will obtain from those that receive 
NASA reports, written certification that the reports have been 
satisfactorily completed. The property certification should indicate 
that disposal of any remaining Government property has been made as 
directed and that NASA has been compensated for any residual inventory 
(see Sec. 1260.135). In reviewing the certifications, see 
Secs. 1260.171 and 1260.172.
    (d) Administrativly complete. A grant is administratively complete 
when
    (1) All reports have been received;
    (2) All certifications have been received;
    (3) Payments have been made for allowable reimbursable costs and 
refunds have been received for any balance of unobligated cash advanced 
that is not authorized to be retained for use on other grants; and
    (4) A DD Form 1594 has been provided by ONR to the NASA grant 
officer.
    (e) Retention of documents. Records will be retained in accordance 
with Sec. 1260.153.
Appendix to Subpart A to Part 1260--Listing of Exhibits

Exhibit A--Delegation of Administration

Exhibit B--Formats

Example 1--Research Grant
Example 2--Cooperative Agreement
Example 3--Training Grant
Example 4--Education Grant
Example 5--Grant or Cooperative Agreement with Foreign Organizations

Exhibit C--Budget Summary

    Note: Exhibits are available at NASA Headquarters, Code HK, 
Washington, DC 20546.

Subpart B--Uniform Administrative Requirements for Grants and 
Cooperative Agreements with Institutions of Higher Education, 
Hospitals, and Other Non-Profit Organizations

General


Sec. 1260.101  Purpose.

    This subpart implements OMB Circular No. A-110 and establishes 
uniform administrative requirements for NASA grants and agreements 
awarded to institutions of higher education, hospitals, and other non-
profit organizations. NASA shall not impose additional or inconsistent 
requirements, except as provided in Secs. 1260.104 and 1260.114 or 
unless specifically required by Federal statute or executive order. 
Non-profit organizations that implement Federal programs for the States 
are also subject to State requirements.


Sec. 1260.102  Definitions.

    (a) Accrued expenditures means the charges incurred by the 
recipient during a given period requiring the provision of funds for:
    (1) Goods and other tangible property received;
    (2) Services performed by employees, contractors, subcontractors, 
and other payees; and,
    (3) Other amounts becoming owed under programs for which no current 
services or performance is required.
    (b) Accrued income means the sum of:

[[Page 38071]]

    (1) Earnings during a given period from services performed by the 
recipient, and goods and other tangible property delivered to 
purchasers; and
    (2) Amounts becoming owed to the recipient for which no current 
services or performance is required by the recipient.
    (c) Acquisition cost of equipment means the net invoice price of 
the equipment, including the cost of modifications, attachments, 
accessories, or auxiliary apparatus necessary to make the property 
usable for the purpose for which it was acquired. Other charges, such 
as the cost of installation, transportation, taxes, duty or protective 
in-transit insurance, shall be included or excluded from the unit 
acquisition cost in accordance with the recipient's regular accounting 
practices.
    (d) Advance means a payment made by Treasury check or other 
appropriate payment mechanism to a recipient upon its request either 
before outlays are made by the recipient or through the use of 
predetermined payment schedules.
    (e) Award means a grant or cooperative agreement that provides 
support or stimulation to accomplish a public purpose. Awards include 
research grants, training grants, facilities grants, educational 
grants, and cooperative agreements in the form of money or property in 
lieu of money, by NASA to an eligible recipient. The term does not 
include: technical assistance, which provides services instead of 
money; other assistance in the form of loans, loan guarantees, interest 
subsidies, or insurance; direct payments of any kind of individuals; 
and, contracts which are required to be entered into and administered 
under procurement laws and regulations.
    (f) Cash contributions means the recipient's cash outlay, including 
the outlay of money contributed to the recipient by third parties.
    (g) Closeout means the process by which NASA determines that all 
applicable administrative actions and all required work of the award 
have been completed by the recipient and NASA.
    (h) Contract means a procurement contract under an award, and a 
procurement subcontract under a recipient's contract.
    (i) Cost sharing or matching means that portion of project or 
program costs not borne by NASA.
    (j) Date of completion means the date on which all work under an 
award is completed or the date on the award document, or any supplement 
or amendment thereto, on which NASA sponsorship ends.
    (k) Disallowed costs means those charges to an award that NASA 
determines to be unallowable, in accordance with the applicable Federal 
cost principles or other terms and conditions contained in the award.
    (l) Equipment means tangible nonexpendable personal property 
including exempt property charged directly to the award having a useful 
life of more than one year and an acquisition cost of $5,000 or more 
per unit. However, consistent with recipient policy, lower limits may 
be established.
    (m) Excess property means property under the control of any Federal 
awarding agency that, as determined by the head thereof, is no longer 
required for its needs or the discharge of its responsibilities.
    (n) Exempt property means tangible personal property acquired in 
whole or in part with Federal funds, where a Federal awarding agency 
has statutory authority to vest title in the recipient without further 
obligation to the Federal Government. An example of exempt property 
authority is contained in the Federal Grant and Cooperative Agreement 
Act (31 U.S.C. 6306), for property acquired under an award to conduct 
basic or applied research by a non-profit institution of higher 
education or non-profit organization whose principal purpose is 
conducting scientific research.
    (o) NASA means the National Aeronautics and Space Administration 
(NASA), including its authorized representatives.
    (p) Federal funds authorized means the total amount of Federal 
funds obligated by the Federal Government for use by the recipient. 
This amount may include any authorized carryover of unobligated funds 
from prior funding periods when permitted by agency regulations or 
agency implementing instructions.
    (q) Federal share of real property, equipment, or supplies means 
that percentage of the property's acquisition costs and any improvement 
expenditures paid with Federal funds.
    (r) Funding period means the period of time when NASA funding is 
available for obligation by the recipient.
    (s) Intangible property and debt instruments means, but is not 
limited to, trademarks, copyrights, patents and patent applications and 
such property as loans, notes and other debt instruments, lease 
agreements, stock and other instruments of property ownership, whether 
considered tangible or intangible.
    (t) Obligations mean the amounts of orders placed, contracts and 
grants awarded, services received and similar transactions during a 
given period that require payment by the recipient during the same or a 
future period.
    (u) Outlays or expenditures means charges made to the project or 
program. They may be reported on a cash or accrual basis. For reports 
prepared on a cash basis, outlays are the sum of cash disbursements for 
direct charges for goods and services, the amount of indirect expense 
charged, the value of third party in-kind contributions applied and the 
amount of cash advances and payments made to subcontractors. For 
reports prepared on an accrual basis, outlays are the sum of cash 
disbursements for direct charges for goods and services, the amount of 
indirect expense incurred, the value of in-kind contributions applied, 
and the net increase (or decrease) in the amounts owed by the recipient 
for good and other property received, for services performed by 
employees, contractors, subcontractors and other payees and other 
amounts becoming owed under programs for which no current services or 
performance are required.
    (v) Personal property means property of any kind except real 
property. It may be tangible, having physical existence, or intangible, 
having no physical existence, such as copyrights, patents, or 
securities.
    (w) Prior approval means written approval by an authorized official 
evidencing prior consent.
    (x) Program income means gross income earned by the recipient that 
is directly generated by a supported activity or earned as a result of 
the award (see exclusions in Sec. 1270.24(e) and (h). Program income 
includes, but is not limited to, income from fees for services 
performed, the use or rental of real or personal property acquired 
under federally-funded projects, the sale of commodities or items 
fabricated under an award, license fees and royalties on patents and 
copyrights, and interest on loans made with award funds. Interest 
earned on advances of NASA funds is not program income. Except as 
otherwise provided in these regulations or the terms and conditions of 
the award, program income does not include the receipt of principal on 
loans, rebates, credits, discounts, etc., or interest earned on any of 
them.
    (y) Project costs means all allowable costs, as set forth in the 
applicable Federal cost principles, incurred by a recipient and the 
value of the contributions made by third parties in accomplishing the 
objectives of the award during the project period.
    (z) Project period means the period established in the award 
document

[[Page 38072]]

during which NASA sponsorship begins and ends.
    (aa) Property means, unless otherwise stated, real property, 
equipment, intellectual property and debt instruments.
    (bb) Real property means land, including land improvements, 
structures and appurtenances thereto, but excludes movable machinery 
and equipment.
    (cc) Recipient means an organization receiving an award directly 
from NASA to carry out a project or program. The term includes public 
and private institutions of higher education, public and private 
hospitals, and other quasi-public and private non-profit organizations 
such as, but not limited to, community action agencies, research 
institutes, educational associations, and health centers. The term may 
include commercial organizations, foreign or international 
organizations (such as agencies of the United Nations) which are 
recipients, subcontractors, or contractors or subcontractors of 
recipients. The term does not include government-owned contractor-
operated facilities or research centers providing continued support for 
mission-oriented, large-scale programs that are government-owned or 
controlled, or are designated as federally-funded research and 
development centers.
    (dd) Research and development means all research activities, both 
basic and applied, and all development activities that are supported at 
universities, colleges, and other nonprofit institutions. Research is 
defined as a systematic study directed toward fuller scientific 
knowledge or understanding of the subject studied. Development is the 
systematic use of knowledge and understanding gained from research 
directed toward the production of useful materials, devices, systems, 
or methods, including design and development of prototypes and 
processes. The term research also included activities involving the 
training of individuals in research techniques where such activities 
utilize the same facilities as other research and development 
activities and where such activities are not included in the 
instruction function.
    (ee) Small awards means a grant or cooperative agreement not 
exceeding the small purchase threshold.
    (ff) Subaward means an award of financial assistance in the form of 
money, or property in lieu of money, made under an award by a recipient 
to an eligible subrecipient or by a subrecipient to a lower tier 
subrecipient. The term includes financial assistance when provided by 
any legal agreement, even if the agreement is called a contract, but 
does not include procurement of goods and services nor does it include 
any form of assistance which is excluded from the definition of 
``award'' in paragraph (e) of this section.
    (gg) Subrecipient means the legal entity to which a subaward is 
made and which is accountable to the recipient for the use of the funds 
provided. The term may include foreign or international organizations 
(such as agencies of the United Nations).
    (hh) Supplies means all personal property excluding equipment, 
intellectual property, and debt instruments as defined in this section, 
and inventions of a contractor conceived or first actually reduced to 
practice in the performance of work under a funding agreement 
(``subject inventions''), as defined in 37 CFR part 401, ``Rights to 
Inventions Made by Nonprofit Organizations and Small Business Firms 
Under Government Grants, Contracts, and Cooperative Agreements.''
    (ii) Suspension means an action by NASA that temporarily withdraws 
NASA sponsorship under an award, pending corrective action by the 
recipient or pending a decision to terminate the award by NASA. 
Suspension of an award is a separate action from suspension under 
Federal agency regulations implementing Executive Orders 12549 and 
12689, ``Debarment and Suspension.''
    (jj) Termination means the cancellation of Federal sponsorship, in 
whole or in part, under an agreement at any time prior to the date of 
completion.
    (kk) Third party in-kind contributions means the value of non-cash 
contributions provided by non-Federal third parties. Third party in-
kind contributions may be in the form of real property, equipment, 
supplies and other expendable property, and the value of goods and 
services directly benefiting and specifically identifiable to the 
project or program.
    (ll) Unliquidated obligations, for financial reports prepared on a 
cash basis, means the amount of obligations incurred by the recipient 
that have not been paid. For reports prepared on an accrued expenditure 
basis, they represent the amount of obligations incurred by the 
recipient for which an outlay has not been recorded.
    (mm) Unobligated balance means the portion of the funds authorized 
by NASA that has not been obligated by the recipient and is determined 
by deducting the cumulative obligations from the cumulative funds 
authorized.
    (nn) Unrecovered indirect cost means the difference between the 
amount awarded and the amount which could have been awarded under the 
recipient's approved negotiated indirect cost rate.
    (oo) Working capital advance means a procedure whereby funds are 
advanced to the recipient to cover its estimated disbursement needs for 
a given initial period.


Sec. 1260.103  Effect on other issuances.

    For awards subject to this subpart, all administrative requirements 
of codified program regulations, program manuals, handbooks and other 
nonregulatory materials which are inconsistent with the requirements of 
this subpart shall be superseded, except to the extent they are 
required by statute, or authorized in accordance with the deviations 
provision in Sec. 1260.104.


Sec. 1260.104  Deviations.

    The Office of Management and Budget (OMB) may grant exceptions for 
classes of grants or recipients subject to the requirements of this 
subpart when exceptions are not prohibited by statute. However, in the 
interest of maximum uniformity, exceptions from the requirements of 
this subpart shall be permitted only in unusual circumstances. NASA may 
apply more restrictive requirements to a class of recipients when 
approved by OMB. NASA may apply less restrictive requirements when 
awarding small awards, except for those requirements which are 
statutory. Exceptions on a case-by-case basis may also be made by NASA. 
See Sec. 1260.6(c).


Sec. 1260.105  Subawards.

    Unless sections of this subpart specifically exclude subrecipients 
from coverage, the provisions of this subpart shall be applied to 
subrecipients performing work under awards if such subrecipients are 
institutions of higher education, hospitals or other non-profit 
organizations. State and local government subrecipients are subject to 
the provisions of 14 CFR part 1273, ``Uniform Administrative 
Requirements for Grants and Cooperative Agreements to State and Local 
Governments.''
Pre--Award Requirements


Sec. 1260.110  Purpose.

    Sections 1260.111 through 1260.117 prescribe forms and instructions 
and other pre-award matters to be used in applying for NASA awards.


Sec. 1260.111  Pre-award policies.

    (a) Use of grants and cooperative agreements, and contracts. In 
each instance, NASA shall decide on the appropriate award instrument 
(i.e., grant, cooperative agreement, or

[[Page 38073]]

contract). The Federal Grant and Cooperative Agreement Act (31 U.S.C. 
6301-08) governs the use of grants, cooperative agreements and 
contracts. A grant or cooperative agreement shall be used only when the 
principal purpose of a transaction is to accomplish a public purpose of 
support or stimulation authorized by Federal statute. The statutory 
criterion for choosing between grants and cooperative agreements is 
that for the latter, ``substantial involvement is expected between the 
executive agency and the State, local government, or other recipient 
when carrying out the activity contemplated in the agreement.'' 
Contracts shall be used when the principal purpose is acquisition of 
property or services for the direct benefit or use of the Federal 
Government.
    (b) Public Notice and Priority Setting. NASA shall notify the 
public of its intended funding priorities for discretionary grant 
programs, unless funding priorities are established by Federal statute.


Sec. 1260.112  Forms for applying for Federal assistance.

    (a) NASA shall comply with the applicable report clearance 
requirements of 5 CFR part 1320, ``Controlling Paperwork Burdens on the 
Public,'' with regard to all forms used by the NASA in place of or as a 
supplement to the Standard Form 424 (SF-424) series.
    (b) Applicants shall use those forms and instructions prescribed by 
NASA in Sec. 1260.


Sec. 1260.113  Debarment and suspension.

    NASA and recipients shall comply with the nonprocurement debarment 
and suspension rule, 14 CFR part 1265, ``Governmentwide Debarment and 
Suspension (Nonprocurement) and Governmentwide Requirements for Drug-
Free Workplace (Grants),'' implementing Executive Orders 12549 and 
12689, ``Debarment and Suspension.'' This rule restricts contracts with 
certain parties that are debarred, suspended or otherwise excluded from 
or ineligible for participation in Federal assistance programs or 
activities.


Sec. 1260.114  Special award conditions.

    If an applicant or recipient has a history of poor performance, is 
not financially stable, has a management system that does not meet the 
standards prescribed in this subpart, has not conformed to the terms 
and conditions of a previous award, or is not otherwise responsible, 
NASA may impose additional requirements as needed. Such applicant or 
recipient will be notified in writing as to the nature of the 
additional requirements, the reason why the additional requirements are 
being imposed, the nature of the corrective action needed, the time 
allowed for completing the corrective actions, and the method for 
requesting reconsideration of the additional requirements imposed. Any 
special conditions shall be promptly removed once the conditions that 
prompted them have been corrected.


Sec. 1260.115  Metric system of measurement.

    The Metric Conversion Act, as amended by the Omnibus Trade and 
Competitiveness Act (15 U.S.C. 205) declares that the metric system is 
the preferred measurement system for U.S. trade and commerce. The Act 
requires each Federal agency to establish a date or dates in 
consultation with the Secretary of Commerce, when the metric system of 
measurement will be used in the agency's procurements, grants, and 
other business-related activities. Metric implementation may take 
longer where the use of the system is initially impractical or likely 
to cause significant inefficiencies in the accomplishment of federally-
funded activities. NASA shall follow the provisions of Executive Order 
12770, ``Metric Usage in Federal Government Programs.''


Sec. 1260.116  Resource Conservation and Recovery Act (RCRA).

    Under the RCRA (Pub. L. 94-580 codified at 42 U.S.C. 6962), any 
State agency or agency of a political subdivision of a State which is 
using appropriated Federal funds must comply with Section 6002 of the 
RCRA (42 U.S.C. 6962). Section 6002 requires that preference be given 
in procurement programs to the purchase of specific products containing 
recycled materials identified in guidelines developed by the 
Environmental Protection Agency (EPA) (40 CFR parts 247-254). 
Accordingly, State and local institutions of higher education, 
hospitals, and non-profit organizations that receive direct Federal 
awards or other Federal funds shall give preference in their 
procurement programs funded with Federal funds to the purchase of 
recycled products pursuant to the EPA guidelines.


Sec. 1260.117  Certifications and representations.

    Unless prohibited by statute or codified regulation, NASA will 
allow recipients to submit certain certifications and representations 
required by statute, executive order, or regulation on an annual basis, 
if the recipients have ongoing and continuing relationships with the 
agency. Annual certifications and representations shall be signed by 
responsible officials with the authority to ensure recipient's 
compliance with the pertinent requirements.
Post Award Requirements

Financial and Program Management


Sec. 1260.120  Purpose of financial and program management.

    Sections 1260.121 through 1260.128 prescribe standards for 
financial management systems, methods for making payments and rules 
for: satisfying cost sharing and matching requirements, accounting for 
program income, budget revision approvals, making audits, determining 
allowability of cost, and establishing fund availability.


Sec. 1260.121  Standards for financial management systems.

    (a) Recipients shall relate financial data to performance data and 
develop unit cost information whenever practical. For awards that 
support research, it should be noted that it is generally not 
appropriate to develop unit cost information.
    (b) Recipients' financial management systems shall provide for the 
following.
    (1) Accurate, current and complete disclosure of the financial 
results of each federally-sponsored project or program in accordance 
with the reporting requirements set forth in Sec. 1260.152. If NASA 
requires reporting on an accrual basis from a recipient that maintains 
its records on other than an accrual basis, the recipient shall not be 
required to establish an accrual accounting system. These recipients 
may develop such accrual data for its reports on the basis of an 
analysis of the documentation on hand.
    (2) Records that identify adequately the source and application of 
funds for federally-sponsored activities. These records shall contain 
information pertaining to Federal awards, authorizations, obligations, 
unobligated balances, assets, outlays, income and interest.
    (3) Effective control over and accountability for all funds, 
property and other assets. Recipients shall adequately safeguard all 
such assets and assure they are used solely for authorized purposes.
    (4) Comparison of outlays with budget amounts for each award. 
Whenever appropriate, financial information should be related to 
performance and unit cost data.

[[Page 38074]]

    (5) Written procedures to minimize the time elapsing between the 
transfer of funds to the recipient from the U.S. Treasury and the 
issuance or redemption of checks, warrants or payments by other means 
for program purposes by the recipient. To the extent that the 
provisions of the Cash Management Improvement Act (CMIA) (Pub. L. 101-
453) govern, payment methods of State agencies, instrumentalities, and 
fiscal agents shall be consistent with CMIA Treasury-State Agreements 
or the CMIA default procedures codified at 31 CFR part 205, 
``Withdrawal of Cash from the Treasury for Advances under Federal Grant 
and Other Programs.''
    (6) Written procedures for determining the reasonableness, 
allocability and allowability of costs in accordance with the 
provisions of the applicable Federal cost principles and the terms and 
conditions of the award.
    (7) Accounting records including cost accounting records that are 
supported by source documentation.
    (c) Where the Federal Government guarantees or insures the 
repayment of money borrowed by the recipient, NASA, at its discretion, 
may require adequate bonding and insurance if the bonding and insurance 
requirements of the recipient are not deemed adequate to protect the 
interest of the Federal Government.
    (d) NASA may require adequate fidelity bond coverage where the 
recipient lacks sufficient coverage to protect the Federal Government's 
interest.
    (e) Where bonds are required in the situations described above, the 
bonds shall be obtained from companies holding certificates of 
authority as acceptable sureties, as prescribed in 31 CFR part 223, 
``Surety Companies Doing Business with the Unites States.''


Sec. 1260.122   Payment.

    (a) Payment methods shall minimize the time elapsing between the 
transfer of funds from the United States Treasury and the issuance or 
redemption of checks, warrants, or payment by other means by the 
recipients. Payment methods of State agencies or instrumentalities 
shall be consistent with Treasury-State CMIA agreements or default 
procedures codified at 31 CFR part 205.
    (b)(1) Recipients are to be paid in advance, provided they maintain 
or demonstrate the willingness to maintain:
    (i) Written procedures that minimize the time elapsing between the 
transfer of funds and disbursement by the recipient; and
    (ii) Financial management systems that meet the standards for fund 
control and accountability as established in Sec. 1260.121.
    (2) Cash advances to a recipient organization shall be limited to 
the minimum amounts needed and be timed to be in accordance with the 
actual, immediate cash requirements of the recipient organization in 
carrying out the purpose of the approved program or project. The timing 
and amount of cash advances shall be as close as is administratively 
feasible to the actual disbursements by the recipient organization for 
direct program or project costs and the proportionate share of any 
allowable indirect costs.
    (c) Whenever possible, advances shall be consolidated to cover 
anticipated cash needs for all awards made by NASA to the recipient.
    (1) Advance payments will be made by electronic funds transfer.
    (2) Advance payment mechanisms are subject to 31 CFR part 205.
    (d) [Reserved. Not used by NASA.]
    (e) Reimbursement is the preferred method when the requirements in 
paragraph (b) of this section cannot be met. NASA may also use this 
method on any construction agreement, or if the major portion of the 
construction project is accomplished through private market financing 
or Federal loans, and the Federal assistance constitutes a minor 
portion of the project. When the reimbursement method is used, NASA 
shall make payment within 30 days after receipt of the billing, unless 
the billing is improper.
    (f) If a recipient cannot meet the criteria for advance payments 
and NASA has determined that reimbursement is not feasible because the 
recipient lacks sufficient working capital, NASA may provide cash on a 
working capital advance basis. Under this procedure, NASA shall advance 
cash to the recipient to cover its estimated disbursement needs for an 
initial period generally geared to the awardee's disbursing cycle. 
Thereafter, NASA shall reimburse the recipient for its actual cash 
disbursements. The working capital advance method of payment shall not 
be used for recipients unwilling or unable to provide timely advances 
to their subcontractor to meet the subcontractor's actual cash 
disbursements.
    (g) To the extent available, recipients shall disburse funds 
available from repayments to and interest earned on a revolving fund, 
program income, rebates, refunds, contract settlements, audit 
recoveries and interest earned on such funds before requesting 
additional cash payments.
    (h) Unless otherwise required by statute, NASA will not withhold 
payments for proper charges made by recipients at any time during the 
project period unless the conditions in paragraph (h) (1) or (2) of 
this section apply.
    (1) A recipient has failed to comply with the project objectives, 
the terms and conditions of the award, or NASA reporting requirements.
    (2) The recipient is delinquent in a debt to the United States as 
defined in OMB Circular A-129, ``Managing Federal Credit Programs.'' 
Under such conditions, NASA may, upon reasonable notice, inform the 
recipient that payments shall not be made for obligations incurred 
after a specified date until the conditions are corrected or the 
indebtedness to the Federal Government is liquidated.
    (i) Standards governing the use of banks and other institutions as 
depositories of funds advanced under awards are as follows.
    (1) Except for situations described in paragraph (i)(2) of this 
section, NASA shall not require separate depository accounts for funds 
provided to a recipient or establish any eligibility requirements for 
depositories for funds provided to a recipient. However, recipients 
must be able to account for the receipt, obligation and expenditure of 
funds.
    (2) Advances of Federal funds shall be deposited and maintained in 
insured accounts whenever possible.
    (j) Consistent with the national goal of expanding the 
opportunities for women-owned and minority-owned business enterprises, 
recipients shall be encouraged to use women-owned and minority-owned 
banks (a bank which is owned at least 50 percent by women or minority 
group members).
    (k) Recipients shall maintain advances of Federal funds in interest 
bearing accounts, unless the conditions in paragraph (k) (1), (2) or 
(3) of this section apply.
    (1) The recipient receives less than $120,000 in Federal awards per 
year.
    (2) The best reasonable available interest bearing account would 
not be expected to earn interest in excess of $250 per year on Federal 
cash balances.
    (3) The depository would require an average or minimum balance so 
high that it would not be feasible within the expected Federal and non-
Federal cash resources.
    (l) Interest earned on Federal advances deposited in interest-
bearing accounts in excess of $250 per year shall be remitted annually 
to Department of Health and Human Services (DHHS), Payment Management 
System,

[[Page 38075]]

Rockville, MD 20852. Interest amounts up to $250 per year may be 
retained by the recipient for administrative expense. In accordance 
with 31 CFR part 206, interest should be remitted electronically 
through the Automated Clearing House (ACT) to DHHS. Recipients without 
this capability may make the remittance by check. In either case, the 
remittance should be payable to DHHS and should indicate the 
recipient's Entity Identification Number (EIN) and reason, i.e., 
``Interest earned.''
    (m) Except as noted elsewhere in this subpart, only the following 
forms shall be authorized for the recipients in requesting advances and 
reimbursements. Federal agencies shall not require more than an 
original and two copies of these forms.
    (1) SF-270, Request for Advance or Reimbursement. [Reserved. Not 
used by NASA.]
    (2) SF-271, Outlay Report and Request for Reimbursement for 
Construction Programs. The SF-271 may be used for requesting 
reimbursement for NASA construction programs.


Sec. 1260.123   Cost sharing or matching.

    (a) All contributions, including cash and third party in-kind, 
shall be accepted as part of the recipient's cost sharing or matching 
when such contributions meet all of the following criteria.
    (1) Are verifiable from the recipient's records.
    (2) Are not included as contributions for any other federally-
assisted project or program.
    (3) Are necessary and reasonable for proper and efficient 
accomplishment of project or program objectives.
    (4) Are allowable under the applicable cost principles.
    (5) Are not paid by the Federal Government under another award, 
except where authorized by Federal statute to be used for cost sharing 
or matching.
    (6) Are provided for in the approved budget when required by NASA.
    (7) Conform to other provisions of this subpart, as applicable.
    (b) Unrecovered indirect costs may be included as part of cost 
sharing or matching only with the prior approval of NASA.
    (c) Values for recipient contributions of services and property 
shall be established in accordance with the applicable cost principles. 
If NASA authorizes recipients to donate buildings or land for 
construction/facilities acquisition projects or long-term use, the 
value of the donated property for cost sharing or matching shall be the 
lesser of paragraph (c) (1) or (2) of this section.
    (1) The certified value of the remaining life of the property 
recorded in the recipient's accounting records at the time of donation.
    (2) The current fair market value. However, when there is 
sufficient justification, NASA may approve the use of the current fair 
market value of the donated property, even if it exceeds the certified 
value at the time of donation to the project.
    (d) Volunteer services furnished by professional and technical 
personnel, consultants, and other skilled and unskilled labor may be 
counted as cost sharing or matching if the service is an integral and 
necessary part of an approved project or program. Rates for volunteer 
services shall be consistent with those paid for similar work in the 
recipient's organization. In those instances in which the required 
skills are not found in the recipient organization, rates shall be 
consistent with those paid for similar work in the labor market in 
which the recipient competes for the kind of services involved. In 
either case, paid fringe benefits that are reasonable, allowable, and 
allocable may be included in the valuation.
    (e) When an employer other than the recipient furnishes the 
services of an employee, these services shall be valued at the 
employee's regular rate of pay (plus an amount of fringe benefits that 
are reasonable, allowable, and allocable, but exclusive of overhead 
costs), provided these services are in the same skill for which the 
employee is normally paid.
    (f) Donated supplies may include such items as expendable 
equipment, office supplies, laboratory supplies or workshop and 
classroom supplies. Value assessed to donated supplies included in the 
cost sharing or matching share shall be reasonable and shall not exceed 
the fair market value of the property at the time of the donation.
    (g) The method used for determining cost sharing or matching for 
donated equipment, buildings and land for which title passes to the 
recipient may differ according to the purpose of the award, if the 
conditions in paragraph (g) (1) or (2) of this section apply.
    (1) If the purpose of the award is to assist the recipient in the 
acquisition of equipment, buildings or land, the total value of the 
donated property may be claimed as cost sharing or matching.
    (2) If the purpose of the award is to support activities that 
require the use of equipment, buildings or land, normally only 
depreciation or use charges for equipment and buildings may be made. 
However, the full value of equipment or other capital assets and fair 
rental charges for land may be allowed, provided that NASA has approved 
the charges.
    (h) The value of donated property shall be determined in accordance 
with the usual accounting policies of the recipient, with the following 
qualifications.
    (1) The value of donated land and buildings shall not exceed its 
fair market value at the time of donation to the recipient as 
established by an independent appraiser (e.g., certified real property 
appraiser or General Services Administration representative) and 
certified by a responsible official of the recipient.
    (2) The value of donated equipment shall not exceed the fair market 
value of equipment of the same age and condition at the time of 
donation.
    (3) The value of donated space shall not exceed the fair rental 
value of comparable space as established by an independent appraisal of 
comparable space and facilities in a privately-owned building in the 
same locality.
    (4) The value of loaned equipment shall not exceed its fair rental 
value.
    (5) The following requirements pertain to the recipient's 
supporting records for in-kind contributions from third parties.
    (i) Volunteer services shall be documented and, to the extent 
feasible, supported by the same methods used by the recipient for its 
own employees.
    (ii) The basis for determining the valuation for personal service, 
material, equipment, buildings and land shall be documented.


Sec. 1260.124  Program income.

    (a) The standards set forth in this section shall be used to 
account for program income related to projects financed in whole or in 
part with Federal funds.
    (b) Except as provided in paragraph (h) of this section, program 
income earned during the project period shall be retained by the 
recipient and, in accordance with the terms and conditions of the 
award, shall be used in one or more of the ways listed in the 
following.
    (1) Added to funds committed to the project by NASA and recipient 
and used to further eligible project or program objectives.
    (2) Used to finance the non-Federal share of the project or 
program.
    (3) Deducted from the total project or program allowable cost in 
determining the net allowable costs on which the Federal share of costs 
is based.
    (c) When NASA authorizes the disposition of program income as

[[Page 38076]]

described in paragraphs (b)(1) or (b)(2) of this section, program 
income in excess of any limits stipulated shall be used in accordance 
with paragraph (b)(3) of this section.
    (d) In the event that the program regulations or the terms and 
conditions of the award do not specify how program income is to be 
used, paragraph (b)(3) of this section shall apply automatically to all 
projects or programs except research. For awards that support research, 
paragraph (b)(1) shall apply automatically unless the awarding agency 
indicates in the terms and conditions another alternative on the award 
or the recipient is subject to special award conditions, as indicated 
in Sec. 1260.114.
    (e) Unless program regulations or the terms and conditions of the 
award provide otherwise, recipients shall have no obligation to the 
Federal Government regarding program income earned after the end of the 
project period.
    (f) Unless program regulations or the terms and conditions of the 
award provide otherwise, costs incident to the generation of program 
income may be deducted from gross income to determine program income, 
provided these costs have not been charged to the award.
    (g) Proceeds from the sale of property shall be handled in 
accordance with the requirements of the Property Standards (See 
Secs. 1260.130 through 1260.137).
    (h) Unless program regulations or the terms and condition of the 
award provide otherwise, recipients shall have no obligation to the 
Federal Government with respect to program income earned from license 
fees and royalties for copyrighted material, patents, patent 
applications, trademarks, and inventions produced under an award. 
However, Patent and Trademark Amendments (35 U.S.C. 18) apply to 
inventions made under an experimental, developmental, or research 
award.


Sec. 1260.125  Revision of budget and program plans.

    (a) The budget plan is the financial expression of the project or 
program as approved during the award process. It may include either the 
Federal and non-Federal share, or only the Federal share, depending 
upon requirements in these regulations. It shall be related to 
performance for program evaluation purposes whenever appropriate.
    (b) Recipients are required to report deviations from budget and 
program plans, and request prior approvals for budget and program plan 
revisions, in accordance with this section.
    (c) For nonconstruction awards, recipients shall request prior 
approvals from NASA for one or more of the following program or budget 
related reasons.
    (1) Change in the scope or the objective of the project or program 
(even if there is no associated budget revision requiring prior written 
approval).
    (2) Change in a key person specified in the application or award 
document.
    (3) The absence for more than three months, or a 25 percent 
reduction in time devoted to the project, by the approved project 
director or principal investigator.
    (4) The need for additional Federal funding.
    (5) The transfer of amounts budgeted for indirect costs to absorb 
increases in direct costs, or vice versa, if approval is required by 
NASA.
    (6) The inclusion, unless waived by NASA, of costs that require 
prior approval in accordance with OMB Circular A-21, ``Cost Principles 
for Institutions of Higher Education;'' OMB Circular A-122, ``Cost 
Principles for Non-Profit Organizations;'' 45 CFR part 74 Appendix E, 
``Principles for Determining Costs Applicable to Research and 
Development under Grants and Contracts with Hospitals;'' or 48 CFR part 
31, ``Contract Cost Principles and Procedures,'' as applicable.
    (7) The transfer of funds allotted for training allowances (direct 
payment to trainees) to other categories of expense.
    (8) Unless described in the application and funded in the approved 
awards, the subaward, transfer or contracting out of any work under an 
award. This provision does not apply to the purchase of supplies, 
material, equipment or general support services.
    (d) No other prior approval requirements for specific items may be 
imposed unless a deviation has been approved by OMB.
    (e) Except for requirements listed in paragraphs (c)(1) and (c)(4) 
of this section, NASA is authorized, at its option, to waive cost-
related and administrative prior written approvals required by this 
Part and OMB Circulars A-21 and A-122. Such waivers may include 
authorizing recipients to do any one or more of the following.
    (1) Incur pre-award costs 90 calendar days prior to award or more 
than 90 calendar days with the prior approval of NASA. All pre-award 
costs are incurred at the recipient's risk (i.e., NASA is under no 
obligation to reimburse such costs if for any reason the recipient does 
not receive an award or if the award is less than anticipate and 
inadequate to cover such costs).
    (2) Initiated a non-time extension of the expiration date of the 
award of up to 12 months unless one or more of the following conditions 
apply. For one-time extensions, the recipient must notify NASA in 
writing with the supporting reasons and revised expiration date at 
least 10 days before the expiration date specified in the award. This 
one-time extension may not be exercised merely for the purpose of using 
unobligated balances.
    (i) The terms and conditions of award prohibit the extension.
    (ii) The extension requires additional Federal funds.
    (iii) The extension involves any change in the approved objectives 
or scope of the project.
    (3) Carry forward unobligated balances to subsequent funding 
periods.
    (4) For awards that support research, unless NASA provides 
otherwise in the award or in the agency's regulations, the prior 
approval requirements described in paragraph (e) of this section are 
automatically waived (i.e., recipients need not obtain such prior 
approvals) unless one of the conditions included in paragraph (e)(2) of 
this section applies.
    (f) Program regulations may restrict the transfer of funds among 
direct cost categories or programs, functions and activities for awards 
in which NASA's share of the project exceeds $100,000 and the 
cumulative amount of such transfers exceeds or is expected to exceed 10 
percent of the total budget as last approved by NASA. However, no 
program regulation shall permit a transfer that would cause any Federal 
appropriation or part thereof to be used for purposes other than those 
consistent with the original intent of the appropriation.
    (g) All other changes to nonconstruction budgets, except for the 
changes described in paragraph (j), do not require prior approval.
    (h) For construction awards, recipients shall request prior written 
approval promptly from NASA for budget revisions whenever the 
conditions in paragraphs (h)(1), (2) or (3) or this section apply.
    (1) The revision results from changes in the scope or the objective 
of the project or program.
    (2) The need arises for additional Federal funds to complete the 
project.
    (3) A revision is desired which involves specific costs for which 
prior written approval requirements may be imposed consistent with 
applicable OMB cost principles listed in Sec. 1260.127.
    (i) No other prior approval requirements for specific items may be 
imposed unless a deviation has been approved by OMB.

[[Page 38077]]

    (j) When NASA makes an award that provides support for both 
construction and nonconstruction work, NASA may require the recipient 
to request prior approval from NASA before making any fund or budget 
transfers between the two types of work supported.
    (k) For both construction and nonconstruction awards, NASA shall 
require recipients to notify NASA in writing promptly whenever the 
amount of Federal authorized funds is expected to exceed the needs of 
the recipient for the project period by more than $5,000 or five 
percent of the Federal award, whichever is greater. This notification 
shall not be required if an application for additional funding is 
submitted for a continuation award.
    (l) When requesting approval for budget revisions, recipients shall 
use the budget forms that were used in the application unless NASA 
indicates a letter of request suffices.
    (m) Within 30 calendar days from the date of receipt of the request 
for budget revisions, NASA shall review the request and notify the 
recipient whether the budget revisions have been approved. If the 
revision is still under consideration at the end of 30 calendar days, 
NASA shall inform the recipient in writing of the date when the 
recipient may expect the decision.


Sec. 1260.126  Non-Federal audits.

    (a) Recipients that are institutions of higher education or other 
non-profit organizations shall be subject to the audit requirements 
contained in OMB Circular A-133, ``Audits of Institutions of Higher 
Education and Other Non-Profit Institutions.''
    (b) State and local governments shall be subject to the audit 
requirements contained in the Single Audit Act (31 U.S.C. 7501-7) and 
NASA regulations implementing OMB Circular A-128, ``Audits of State and 
Local Governments.''
    (c) Hospitals not covered by the audit provisions of OMB Circular 
A-133 shall be subject to the audit requirements of NASA.
    (d) Commercial organizations shall be subject to the audit 
requirements of NASA or the prime recipient as incorporated into the 
award document.


Sec. 1260.127  Allowable costs.

    For each kind of recipient, there is a set of Federal principles 
for determining allowable costs. Allowability of costs shall be 
determined in accordance with the cost principles applicable to the 
entity incurring the costs. Thus, allowability of costs incurred by 
State, local or federally-recognized Indian tribal governments is 
determined in accordance with the provisions of OMB Circular A-87, 
``Cost Principles for State and Local Governments.'' The allowability 
of costs incurred by non-profit organizations is determined in 
accordance with the provisions of OMB Circular A-122, ``Cost Principles 
for Non-Profit Organizations.'' The allowability of costs incurred by 
institutions of higher education is determined in accordance with the 
provisions of OMB Circular A-21, ``Cost Principles for Educational 
Institutions.'' The allowability of costs incurred by hospitals is 
determined in accordance with the provisions of Appendix E of 45 CFR 
part 74, ``Principles for Determining Costs Applicable to Research and 
Development Under Grants and Contracts with Hospitals.'' The 
allowability of costs incurred by commercial organizations and those 
non-profit organizations listed in Attachment C to Circular A-122 is 
determined in accordance with the provisions of the Federal Acquisition 
Regulation (FAR) at 48 CFR part 31.


Sec. 1260.128  Period of availability of funds.

    Where a funding period is specified, a recipient may charge to the 
grant only allowable costs resulting from obligations incurred during 
the funding period and any pre-award costs authorized by NASA.

Property Standards


Sec. 1260.130  Purpose of property standards.

    Sections 1260.131 through 1260.137 set forth uniform standards 
governing management and disposition of property furnished by the 
Federal Government whose cost was charged to a project supported by a 
Federal award. Recipients shall observe these standards under awards 
and NASA will not impose additional requirements, unless specifically 
required by Federal statue. The recipient may use its own property 
management standards and procedures provided it observes the provisions 
of Secs. 1260.131 through 1260.137.


Sec. 1260.131  Insurance coverage.

    Recipients shall, at a minimum, provide the equivalent insurance 
coverage for real property and equipment acquired with Federal funds as 
provided for property owned by the recipient. Federally-owned property 
need not be insured unless required by the terms and conditions of the 
award.


Sec. 1260.132  Real property.

    Unless otherwise provided by statue, the requirements concerning 
the use and disposition of real property acquired in whole or in part 
under awards are as follows:
    (a) Title to real property shall vest in the recipient subject to 
the condition that the recipient shall use the real property for the 
authorized purpose of the project as long as it is needed and shall not 
encumber the property without approval of NASA.
    (b) The recipient shall obtain written approval by NASA for the use 
of real property in other federally-sponsored projects when the 
recipient determines that the property is no longer needed for the 
purpose of the original project. Use in other projects shall be limited 
to those under federally-sponsored projects (i.e., awards) or programs 
that have purposes consistent with those authorized for support by 
NASA.
    (c) When the real property is no longer needed as provided in 
paragraph (a) and (b), the recipient shall request disposition 
instructions from NASA or its successor Federal awarding agency. NASA 
shall observe one or more of the following disposition instructions.
    (1) The recipient may be permitted to retain title without further 
obligation to the Federal Government after it compensates the Federal 
Government for the percentage of the current fair market value of the 
property attributable to the Federal participation in the project.
    (2) The recipient may be directed to sell the property under 
guidelines provided by NASA and pay the Federal Government for that 
percentage of the current fair market value of the property 
attributable to the Federal participation in the project (after 
deducting actual and reasonable selling and fix-up expenses, if any, 
from the sales proceeds). When the recipient is authorized or required 
to sell the property, proper sales procedures shall be established that 
provide for competition to the extent practicable and result in the 
highest possible return.
    (3) The recipient may be directed to transfer title to the property 
to the Federal Government or to an eligible third party provided that, 
in such cases, the recipient shall be entitled to compensation for its 
attributable percentage of the current fair market value of the 
property.


Sec. 1260.133  Federally-owned and exempt property.

    (a) Federally-owned property. (1) Title to federally-owned property 
remains vested in the Federal Government. Recipients shall submit 
annually an inventory listing of federally-owned property in their 
custody to NASA. Upon completion of the award or when the property is 
no longer needed, the recipient shall report the property to

[[Page 38078]]

NASA for further Federal agency utilization.
    (2) If NASA has no further need for the property, it shall be 
declared excess and reported to the General Services Admiration, unless 
NASA has statutory authority to dispose of the property by alternative 
methods (e.g, the authority provided by the Federal Technology Transfer 
Act (15 U.S.C. 3710 (I)) to donate research equipment to educational 
and non-profit organizations in accordance with E.O. 12821, ``Improving 
Mathematics and Science Education in Support of the National Education 
Goals.'') Appropriate instructions shall be issued to the recipient by 
NASA.
    (b) Exempt property. Title to nonexpendable personal property 
acquired with grant funds shall be vested in the recipient upon 
acquisition, unless it is determined that to do so is not in 
furtherance of the objectives of NASA. When title is vested in the 
recipient, the recipient shall have no other obligation or 
accountability to the Federal Government for its use or disposition, 
except as provided in Sec. 1260.27.


Sec. 1260.134  Equipment.

    (a) Title to equipment acquired by a recipient with Federal funds 
shall vest in the recipient, subject to conditions of this section.
    (b) The recipient shall not use equipment acquired with Federal 
funds to provide services to non-Federal outside organizations for a 
fee that is less than private companies charge for equivalent services, 
unless specifically authorized by Federal statute, for as long as the 
Federal Government retains an interest in the equipment.
    (c) The recipient shall use the equipment in the project or program 
for which it was acquired as long as needed, whether nor not the 
project or program continues to be supported by Federal funds and shall 
not encumber the property without approval of NASA. When no longer 
needed for the original project or program, the recipient shall use the 
equipment in connection with its other federally-sponsored activities, 
in the following order of priority:
    (1) Activities sponsored by NASA, then
    (2) Activities sponsored by other Federal agencies.
    (d) During the time that equipment is used on the project or 
program for which it was acquired, the recipient shall make it 
available for use on other projects or programs if such other use will 
not interfere with the work on the project or program for which the 
equipment was originally acquired. First preference for such other use 
shall be given to other projects or programs sponsored by NASA; second 
preference shall be given to projects or programs sponsored by other 
Federal agencies. If the equipment is owned by the Federal Government, 
use on other activities not sponsored by the Federal Government shall 
be permissible if authorized by NASA. User charges shall be treated as 
program income.
    (e) When acquiring replacement equipment, the recipient may use the 
equipment to be replaced as trade-in or sell the equipment and use the 
proceeds to offset the costs of the replacement equipment subject to 
the approval of NASA.
    (f) The recipients's property management standards for equipment 
acquired with Federal funds and federally-owned equipment shall include 
all of the following.
    (1) Equipment records shall be maintained accurately and shall 
include the following information.
    (i) A description of the equipment.
    (ii) Manufacturer's serial number, model number, Federal stock 
number, national stock number, or other identification number.
    (iii) Source of the equipment, including the award number.
    (iv) Whether title vests in the recipient or the Federal 
Government.
    (v) Acquisition date (or date received, if the equipment was 
furnished by the Federal Government) and cost.
    (vi) Information from which one can calculate the percentage of 
Federal participation in the cost of the equipment (not applicable to 
equipment furnished by the Federal Government).
    (vii) Location and condition of the equipment and the date the 
information was reported.
    (viii) Unit acquisition cost.
    (ix) Ultimate disposition data, including date of disposal and 
sales price or the method used to determine current fair market value 
where a recipient compensates NASA for its share.
    (2) Equipment owned by the Federal Government shall be identified 
to indicate Federal ownership.
    (3) A physical inventory of equipment shall be taken and the 
results reconciled with the equipment records at least once every two 
years. Any differences between quantities determined by the physical 
inspection and those shown in the accounting records shall be 
investigated to determine the causes of the difference. The recipient 
shall, in connection with the inventory, verify the existence, current 
utilization, and continued need for the equipment.
    (4) A control system shall be in effect to insure adequate 
safeguards to prevent loss, damage, or theft of the equipment. Any 
loss, damage, or theft of equipment shall be investigated and fully 
documented; if the equipment was owned by the Federal Government, the 
recipient shall promptly notify NASA.
    (5) Adequate maintenance procedures shall be implemented to keep 
the equipment in good condition.
    (6) Where the recipient is authorized or required to sell the 
equipment, proper sales procedures shall be established which provide 
for competition to the extent practicable and result in the highest 
possible return.
    (g) When the recipient no longer needs the equipment, the equipment 
may be used for other activities in accordance with the following 
standards. For equipment with a current per unit fair market value of 
$5,000 or more, the recipient may retain the equipment for other uses 
provided that compensation is made to the original Federal awarding 
agency or its successor. The amount of compensation shall be computed 
by applying the percentage of Federal participation in the cost of the 
original project or program to the current fair market value of the 
equipment. If the recipient has no need for the equipment, the 
recipient shall request disposition instructions from NASA. NASA shall 
determine whether the equipment can be used to meet NASA's 
requirements. If no requirement exists within NASA, the availability of 
the equipment shall be reported to the General Services Administration 
by NASA to determine whether a requirement for the equipment exists in 
other Federal agencies. NASA shall issue instructions to the recipient 
no later than 120 calendar days after the recipient's request and the 
following procedures shall govern.
    (1) If so instructed or if disposition instructions are not issued 
within 120 calendar days after the recipient's request, the recipient 
shall sell the equipment and reimburse NASA an amount computed by 
applying to the sales proceeds the percentage of Federal participation 
in the cost of the original project or program. However, the recipient 
shall be permitted to deduct and retain from the Federal share $500 or 
ten percent of the proceeds, whichever is less, for the recipient's 
selling and handling expenses.
    (2) If the recipient is instructed to ship the equipment elsewhere, 
the recipient shall be reimbursed by the Federal Government by an 
amount which is computed by applying the percentage of the recipient's

[[Page 38079]]

participation in the cost of the original project or program to the 
current fair market value of the equipment, plus any reasonable 
shipping or interim storage costs incurred.
    (3) If the recipient is instructed to otherwise dispose of the 
equipment, the recipient shall be reimbursed by NASA for such costs 
incurred in its disposition.
    (4) NASA may reserve the right to transfer the title to the Federal 
Government or to a third party named by NASA when such third party is 
otherwise eligible under existing statutes. Such transfer shall be 
subject to the following standards.
    (i) The equipment shall be appropriately identified in the award or 
otherwise made known to the recipient in writing.
    (ii) NASA shall issue disposition instructions within 120 calendar 
days after receipt of a final inventory. The final inventory shall list 
all equipment acquired with grant funds and federally-owned equipment. 
If NASA fails to issue disposition instructions within the 120 calendar 
day period, the recipient shall apply the standards of this section, as 
appropriate.
    (iii) When NASA exercises its right to take title, the equipment 
shall be subject to the provisions for federally-owned equipment.


Sec. 1260.135  Supplies and other expendable property.

    (a) Title to supplies and other expendable property shall vest in 
the recipient upon acquisition. If there is a residual inventory of 
unused supplies exceeding $5,000 in total aggregate value upon 
termination or completion of the project or program and the supplies 
are not needed for any other federally-sponsored project or program, 
the recipient shall retain the supplies for use on non-Federal 
sponsored activities or sell them, but shall, in either case, 
compensate the Federal Government for its share. The amount of 
compensation shall be computed in the same manner as for equipment.
    (b) The recipient shall not use supplies acquired with Federal 
funds to provide services to non-Federal outside organizations for a 
fee that is less than private companies charge for equivalent services, 
unless specifically authorized by Federal statute as long as the 
Federal Government retains an interest in the supplies.


Sec. 1260.136  Intangible property.

    (a) The recipient may assert copyright in any work that is subject 
to copyright and was created, or for which copyright ownership was 
purchased, under an award. NASA is granted a royalty-free, nonexclusive 
and irrevocable right to reproduce, publish, or otherwise use the work 
for Federal purposes, and to authorize others to do so.
    (b) Recipients are subject to applicable regulations governing 
patents and inventions, including government-wide regulations issued by 
the Department of Commerce at 37 CFR part 401, ``Rights to Inventions 
Made by Nonprofit Organizations and Small Business Firms Under 
Government Grants, Contracts and Cooperative Agreements.''
    (c) NASA has the right to:
    (1) Obtain, reproduce, publish or otherwise use the data first 
produced under an award.
    (2) Authorize others to receive, reproduce, publish, or otherwise 
use such data for Federal purposes.
    (d) Title to intellectual property and debt instruments acquired 
under an award or subcontract vests upon acquisition in the recipient. 
The recipient shall use that property for the originally-authorized 
purpose, and the recipient shall not encumber the property without 
approval of NASA. When no longer needed for the originally authorized 
purpose, disposition of the intangible property shall occur in 
accordance with the provisions of Sec. 1260.134(g).
    (e) Due to the substantial involvement on the part of NASA under a 
cooperative agreement, intellectual property may be produced by Federal 
employees and NASA contractors tasked to perform NASA assigned 
activities. Title to intellectual property created under the 
cooperative agreement by NASA or its contractors will initially vest 
with the creating party. Certain rights may be exchanged with the 
recipient.


Sec. 1260.137  Property trust relationship.

    Real property, equipment, intangible property and debt instruments 
that are acquired or improved with Federal funds shall be held in trust 
by the recipient as trustee for the beneficiaries of the project or 
program under which the property was acquired or improved. NASA may 
require recipients to record liens or other appropriate notices of 
record to indicate that personal or real property has been acquired or 
improved with Federal funds and that use and disposition conditions 
apply to the property.

Procurement Standards


Sec. 1260.140  Purpose of procurement standards.

    Sections 1260.141 through 1260.148 set forth standards for use by 
recipients in establishing procedures for the procurement of supplies 
and other expendable property, equipment, real property and other 
services with Federal funds. These standards are furnished to ensure 
that such materials and services are obtained in an effective manner 
and in compliance with the provisions of applicable Federal statutes 
and executive orders. No additional procurement standards or 
requirements shall be imposed by NASA upon recipients, unless 
specifically required by Federal statute or executive order or approved 
in accordance with the deviation procedures of Sec. 1260.6.


Sec. 1260.141  Recipient responsibilities.

    The standards contained in this section do not relieve the 
recipient of the contractual responsibilities arising under its 
contract(s). The recipient is the responsible authority, without 
recourse to NASA, regarding the settlement and satisfaction of all 
contractual and administrative issues arising out of procurements 
entered into in support of an award or other agreement. This includes 
disputes, claims, protests of award, source evaluation or other matters 
of a contractual nature. Matters concerning violation of statute are to 
be referred to such Federal, State or local authority as may have 
proper jurisdiction.


Sec. 1260.142  Codes of conduct.

    The recipient shall maintain written standards of conduct governing 
the performance of its employees engaged in the award and 
administration of contracts. No employee, officer, or agent shall 
participate in the selection, award, or administration of a contract 
supported by Federal funds if a real or apparent conflict of interest 
would be involved. Such a conflict would arise when the employee, 
officer, or agent, any member of his or her immediate family, his or 
her partner, or an organization which employs or is about to employ any 
of the parties indicated herein, has a financial or other interest in 
the firm selected for an award. The officers, employees, and agents of 
the recipient shall neither solicit nor accept gratuities, favors, or 
anything of monetary value from contractors, or parties to 
subagreements. However, recipients may set standards for situations in 
which the financial interest is not substantial or the gift is an 
unsolicited item of nominal value. The standards of conduct shall 
provide for disciplinary actions to be applied for violations of such 
standards by officers, employees, or agents of the recipient.

[[Page 38080]]

Sec. 1260.143  Competition.

    All procurement transactions shall be conducted in a manner to 
provide, to the maximum extent practical, open and free competition. 
The recipient shall be alert to organizational conflicts of interest as 
well as noncompetitive practices among contractors that may restrict or 
eliminate competition or otherwise restrain trade. In order to ensure 
objective contractor performance and eliminate unfair competitive 
advantage, contractors that develop or draft specifications, 
requirements, statements of work, invitations for bids and/or requests 
for proposals shall be excluded from competing for such procurements. 
Awards shall be made to the bidder or offeror whose bid or offer is 
responsive to the solicitation and is most advantageous to the 
recipient, price, quality and other factors considered. Solicitations 
shall clearly set forth all requirements that the bidder or offeror 
shall fulfill in order for the bid or offer to be evaluated by the 
recipient. Any and all bids or offers may be rejected when it is in the 
recipient's interest to do so.


Sec. 1260.144  Procurement procedures.

    (a) All recipients shall establish written procurement procedures. 
These procedures shall provide for, at a minimum, that the conditions 
in paragraphs (a) (1), (2) and (3) of this section apply.
    (1) Recipients avoid purchasing unnecessary items.
    (2) Where appropriate, an analysis is made of lease and purchase 
alternatives to determine which would be the most economical and 
practical procurement for the Federal Government.
    (3) Solicitations for goods and services provide for all of the 
following.
    (i) A clear and accurate description of the technical requirements 
for the material, product or service to be procured. In competitive 
procurements, such a description shall not contain features which 
unduly restrict competition.
    (ii) Requirements which the bidder/offeror must fulfill and all 
other factors to be used in evaluating bids or proposals.
    (iii) A description, whenever practicable, of technical 
requirements in terms of functions to be performed or performance 
required, including the range of acceptable characteristics or minimum 
acceptable standards.
    (iv) The specific features of ``brand name or equal'' descriptions 
that bidders are required to meet when such items are included in the 
solicitation.
    (v) The acceptance, to the extent practicable and economically 
feasible, of products and services dimensioned in the metric system of 
measurement.
    (vi) Preference, to the extent practicable and economically 
feasible, for products and services that conserve natural resources and 
protect the environment and are energy efficient.
    (b) Positive efforts shall be made by recipients to utilize small 
businesses, minority-owned firms, and women's business enterprises, 
whenever possible. Recipients of NASA awards shall take all of the 
following steps to further this goal.
    (1) Ensure that small businesses, minority-owned firms, and women's 
business enterprises are used to the fullest extent practicable.
    (2) Make information on forthcoming opportunities available and 
arrange time frames for purchases and contracts to encourage and 
facilitate participation by small businesses, minority-owned firms, and 
women's business enterprises.
    (3) Consider in the contract process whether firms competing for 
larger contracts intend to subcontract with small businesses, minority-
owned firms, and women's business enterprises.
    (4) Encourage contracting with consortiums of small businesses, 
minority-owned firms and women's business enterprises when a contract 
is too large for one of these firms to handle individually.
    (5) Use the services and assistance, as appropriate, of such 
organizations as the Small Business Administration and the Department 
of Commerce's Minority Business Development Agency in the solicitation 
and utilization of small businesses, minority-owned firms and women's 
business enterprises.
    (c) The type of procuring instruments used (e.g., fixed price 
contracts, cost reimbursable contracts, purchase orders, and incentive 
contracts) shall be determined by the recipient but shall be 
appropriate for the particular procurement and for promoting the best 
interest of the program or project involved. The ``cost-plus-a-
percentage-of-cost'' or ``percentage of construction cost'' methods of 
contracting shall not be used.
    (d) Contracts shall be made only with responsible contractors who 
possess the potential ability to perform successfully under the terms 
and conditions of the proposed procurement. Consideration shall be 
given to such matters as contractor integrity, record of past 
performance, financial and technical resources or accessibility to 
other necessary resources. In certain circumstances, contracts with 
certain parties are restricted by 14 CFR part 1265, the implementation 
of Executive Order 12549 and 12689, ``Debarment and Suspension.''
    (e) Recipients shall, on request, make available for NASA, pre-
award review and procurement documents, such as request for proposals 
or invitations for bids, independent cost estimates, etc., when any of 
the following conditions apply.
    (1) A recipient's procurement procedures or operation fails to 
comply with the procurement standards in NASA's implementation of this 
Regulation.
    (2) The procurement is expected to exceed the small purchase 
threshold and is to be awarded without competition or only one bid or 
offer is received in response to a solicitation.
    (3) The procurement, which is expected to exceed the small purchase 
threshold, specifies a ``brand name'' product.
    (4) The proposed award over the small purchase threshold is to be 
awarded to other than the apparent low bidder under a sealed bid 
procurement.
    (5) A proposed contract modification changes the scope of a 
contract or increases the contract amount by more than the amount of 
the small purchase threshold.


Sec. 1260.145  Cost and price analysis.

    Some form of cost or price analysis shall be made and documented in 
the procurement files in connection with every procurement action. 
Price analysis may be accomplished in various ways, including the 
comparison of price quotations submitted, market prices and similar 
indicia, together with discounts. Cost analysis is the review and 
evaluation of each element of cost to determine reasonableness, 
allocability and allowability.


Sec. 1260.146   Procurement records.

    Procurement records and files for purchases in excess of the small 
purchase threshold shall include the following at a minimum.
    (a) Basis for contractor selection,
    (b) Justification for lack of competition when competitive bids or 
offers are not obtained, and
    (c) Basis for award cost or price.


Sec. 1260.147   Contract administration.

    A system for contract administration shall be maintained to ensure 
contractor conformance with the terms, conditions and specifications of 
the contract and to ensure adequate and timely follow up of all 
purchases. Recipients shall evaluate contractor performance and 
document, as appropriate, whether contractors have met the terms, 
conditions and specifications of the contract.

[[Page 38081]]

Sec. 1260.148   Contract provisions.

    The recipient shall include, in addition to provisions to define a 
sound and complete agreement, the following provisions in all 
contracts. The following provisions shall also be applied to 
subcontracts.
    (a) Contracts in excess of the small purchase threshold shall 
contain contractual provisions or conditions that allow for 
administrative, contractual, or legal remedies in instances in which a 
contractor violates or breaches the contract terms, and provide for 
such remedial actions as may be appropriate.
    (b) All contracts in excess of the small purchase threshold shall 
contain suitable provisions for termination by the recipient, including 
the manner by which termination shall be effected and the basis for 
settlement. In addition, such contracts shall describe conditions under 
which the contract may be terminated for default as well as conditions 
where the contract may be terminated because of circumstances beyond 
the control of the contractor.
    (c) Except as otherwise required by statute, an award that requires 
the contracting (or subcontracting) for construction or facility 
improvements shall provide for the recipient to follow its own 
requirements relating to bid guarantees, performance bonds, and payment 
bonds unless the construction contract or subcontract exceeds $100,000. 
For those contracts or subcontracts exceeding $100,000, NASA may accept 
the bonding policy and requirements of the recipient, provided the NASA 
has made a determination that the Federal Government's interest is 
adequately protected. If such a determination has not been made, the 
minimum requirements shall be as follows.
    (1) A bid guarantee from each bidder equivalent to five percent of 
the bid price. The ``bid guarantee'' shall consist of a firm commitment 
such as a bid bond, certified check, or other negotiable instrument 
accompanying a bid as assurance that the bidder shall, upon acceptance 
of his bid, execute such contractual documents as may be required 
within the time specified.
    (2) A performance bond on the part of the contractor for 100 
percent of the contract price. A ``performance bond'' is one executed 
in connection with a contract to secure fulfillment of all the 
contractor's obligations under such contract.
    (3) A payment bond on the part of the contractor for 100 percent of 
the contract price. A ``payment bond'' is one executed in connection 
with a contract to assure payment as required by statute of all persons 
supplying labor and material in the execution of the work provided for 
in the contract.
    (4) Where bonds are required in the situations described herein, 
the bonds shall be obtained from companies holding certificates of 
authority as acceptable sureties pursuant to 31 CFR part 223, ``Surety 
Companies Doing Business with the United States.''
    (d) All negotiated contracts (except those for less than the small 
purchase threshold) awarded by recipients shall include a provision to 
the effect that the recipient, NASA, the Comptroller General of the 
United States, or any of their duly authorized representatives, shall 
have access to any books, documents, papers and records of the 
contractor which are directly pertinent to a specific program for the 
purpose of making audits, examinations, excerpts and transcriptions.
    (e) All contracts, including small purchases, awarded by recipients 
and their contractors shall contain the procurement provisions of 
Appendix A to this subpart, as applicable.

Reports and Records


Sec. 1260.150   Purpose of reports and records.

    Sections 1260.151 through 1260.153 set forth the procedures for 
monitoring and reporting on the recipient's financial and program 
performance and the necessary standard reporting forms. They also set 
forth record retention requirements.


Sec. 1260.151   Monitoring and reporting program performance.

    (a) Recipients are responsible for managing and monitoring each 
project, program, subcontract, function or activity supported by the 
award. Recipients shall monitor subcontracts to ensure subcontractors 
have met the audit requirements as delineated in Sec. 1260.126.
    (b) The terms and conditions of the award shall prescribe the 
frequency with which the performance reports shall be submitted. Except 
as provided in Sec. 1260.151(f), performance reports shall not be 
required more frequently than quarterly or, less frequently than 
annually. Annual reports shall be due 90 calendar days after the grant 
year; quarterly or semi-annual reports shall be due 30 days after the 
reporting period. NASA may require annual reports before the 
anniversary dates of multiple year awards in lieu of these 
requirements. The final performance reports are due 90 calendar days 
after the expiration or termination of the award.
    (c) If inappropriate, a final technical or performance report shall 
not be required after completion of the project.
    (d) When required, performance reports shall generally contain, for 
each award, brief information on each of the following.
    (1) A comparison of actual accomplishments with the goals and 
objectives established for the period, the findings of the 
investigator, or both. Whenever appropriate and the output of programs 
or projects can be readily quantified, such quantitative data should be 
related to cost data for computation of unit costs.
    (2) Reasons why established goals were not met, if appropriate.
    (3) Other pertinent information including, when appropriate, 
analysis and explanation of cost overruns or high unit costs.
    (e) Recipients shall not be required to submit more than the 
original and two copies of performance reports.
    (f) Recipients shall immediately notify NASA of developments that 
have a significant impact on the award-supported activities. Also, 
notification shall be given in the case of problems, delays, or adverse 
conditions which materially impair the ability to meet the objectives 
of the award. This notification shall include a statement of the action 
taken or contemplated, and any assistance needed to resolve the 
situation.
    (g) NASA may make site visits, as needed.
    (h) NASA shall comply with clearance requirements of 5 CFR part 
1320 when requesting performance data from recipients.


Sec. 1260.152   Financial reporting.

    (a) When funds are advanced to recipients, each recipient is 
required to submit the SF-272, Report of Federal Cash Transactions, 
and, when necessary, its continuation sheet, SF 272a. NASA uses this 
report to monitor cash advanced to the recipient and obtain 
disbursement information for each agreement with the recipient.
    (b) NASA requires forecasts of the recipient's cash requirements 
for each of the four months following the quarter being reported, in 
the ``Remarks'' section of the report.
    (c) Recipients are required to submit the original of the report 
for the Financial Management Office of the NASA Center which issued the 
agreement 15 working days following the end of each Federal fiscal 
quarter. Copies will be furnished to the appropriate grants officer 
(see Sec. 1260.26(c)).

[[Page 38082]]

Sec. 1260.153   Retention and access requirements for records.

    (a) This section sets forth requirements for record retention and 
access to records for awards to recipients. NASA shall not impose any 
other record retention or access requirements upon recipients.
    (b) Financial records, supporting documents, statistical records, 
and all other records pertinent to an award shall be retained for a 
period of three years from the date of submission of the final 
expenditure report or, for awards that are renewed quarterly or 
annually, from the date of the submission of the quarterly or annual 
financial report, as authorized by NASA. The only exceptions are the 
following.
    (1) If any litigation, claim, or audit is started before the 
expiration of the three-year period, the records shall be retained 
until all litigation, claims or audit findings involving the records 
have been resolved and final action taken.
    (2) Records for real property and equipment acquired with Federal 
funds shall be retained for 3 years after final disposition.
    (3) When records are transfered to or maintained by NASA, the 3-
year retention requirement is not applicable to the recipient.
    (4) Indirect cost rate proposals, cost allocations plans, etc. as 
specified in section 1260.153(g).
    (c) Copies of original records may be substituted for the original 
records if authorized by NASA.
    (d) NASA shall request transfer of certain records to its custody 
from recipients when it determines that the records possess long term 
retention value. However, in order to avoid duplicate record keeping, 
NASA may make arrangements for recipients to retain any records that 
are continuously needed for joint use.
    (e) NASA, the Inspector General, Comptroller General of the United 
States, or any of their duly authorized representatives, have the right 
of timely and unrestricted access to any books, documents, papers, or 
other records of recipients that are pertinent to the awards, in order 
to make audits, examinations, excerpts, transcripts and copies of such 
documents. This right also includes timely and reasonable access to a 
recipient's personnel for the purpose of interview and discussion 
related to such documents. The rights of access in this paragraph are 
not limited to the required retention period, but shall last as long as 
records are retained.
    (f) Unless required by statute, NASA shall place no restrictions on 
recipients that limit public access to the records of recipients that 
are pertinent to an award, except when NASA can demonstrate that such 
records shall be kept confidential and would have been exempted from 
disclosure pursuant to the Freedom of Information Act (5 U.S.C. 552) if 
the records have belonged to NASA.
    (g) Indirect cost rate proposals, cost allocations plan, etc. 
Paragraphs (g)(1) and (g)(2) of this section apply to the following 
types of documents, and their supporting records: Indirect cost rate 
computations or proposals, cost allocation plans, and any similar 
accounting computations of the rate at which a particular group of 
costs is chargeable (such as computer usage chargeback rates or 
composite fringe benefit rates).
    (1) If submitted for negotiation. If the recipient submits to NASA 
or the subrecipient submits to the recipient the proposal, plan, or 
other computation to form the basis for negotiation of the rate, then 
the 3-year retention period for its supporting records starts on the 
date of such submission.
    (2) If not submitted for negotiation. If the recipient is not 
required to submit to NASA or the subrecipient is not required to 
submit to the recipient the proposal, plan, or other computation for 
negotiation purposes, then the 3-year retention period for the 
proposal, plan, or other computation and its supporting records starts 
at the end of the fiscal year (or other accounting period) covered by 
the proposal, plan, or other computation.

Termination and Enforcement


Sec. 1260.160  Purpose of termination and enforcement.

    Sections 1260.161 and 1260.162 set forth uniform suspension, 
termination and enforcement procedures.


Sec. 1260.161  Termination.

    (a) Awards may be terminated in whole or in part only if the 
conditions in paragraph (a)(1), (2) or (3) of this section apply.
    (1) By NASA, if a recipient materially fails to comply with the 
terms and conditions of an award.
    (2) By NASA with the consent of the recipient, in which case the 
two parties shall agree upon the termination conditions, including the 
effective date and, in the case of partial termination, the portion to 
be terminated.
    (3) By the recipient upon sending to NASA written notification 
setting forth the reasons for such termination, the effective date, 
and, in the case of partial termination, the portion to be terminated. 
However, if NASA determines in the case of partial termination that the 
reduced or modified portion of the grant will not accomplish the 
purposes for which the grant was made, it may terminate the grant in 
its entirety under either paragraphs (a)(1) or (2) or this section.
    (b) If costs are allowed under an award, the responsibilities of 
the recipient referred to in Sec. 1260.171(a), including those for 
property management as applicable, shall be considered in the 
termination of the award, and provision shall be made for continuing 
responsibilities of the recipient after termination, as appropriate.


Sec. 1260.162  Enforcement.

    (a) Remedies for noncompliance. If a recipient materially fails to 
comply with the terms and conditions of an award, whether stated in a 
Federal statute, regulation, assurance, application, or notice of 
award, NASA may, in addition to imposing any of the special conditions 
outlined in Sec. 1260.114, take one or more of the following actions, 
as appropriate in the circumstances.
    (1) Temporarily withhold cash payments pending correction of the 
deficiency by the recipient or more severe enforcement action by NASA.
    (2) Disallow (that is, deny both use of funds and any applicable 
matching credit for) all or part of the cost of the activity or action 
not in compliance.
    (3) Wholly or partly suspend or terminate the current award.
    (4) Withhold further awards.
    (5) Take other remedies that may be legally available.
    (b) Hearings and appeals. In taking an enforcement action, NASA 
shall provide the recipient an opportunity for hearing, appeal, or 
other administrative proceeding to which the recipient is entitled 
under any statue or regulation applicable to the action involved.
    (c) Effects of suspension and termination. Costs of a recipient 
resulting from obligations incurred by the recipient during a 
suspension or after termination of an award are not allowable unless 
NASA expressly authorizes them in the notice of suspension or 
termination or subsequently. Other recipient costs during suspension or 
after termination which are necessary and not reasonably avoidable are 
allowable if the conditions in paragraphs (c) (1) and (2) of this 
section apply.
    (1) The costs results from obligations which were properly incurred 
by the recipient before the effective date of suspension or 
termination, are not in anticipation of it, and in the case of a 
termination, are noncancellable.

[[Page 38083]]

    (2) The costs would be allowable if the award were not suspended or 
expired normally at the end of the funding period in which the 
termination takes effect.
    (d) Relationship to debarment and suspension. The enforcement 
remedies identified in this section, including suspension and 
termination, do not preclude a recipient from being subject to 
debarment and suspension under E.O.'s 12549 and 12689 and 14 CFR part 
1265 (see Section 1260.113).
After-The Award Requirements


Sec. 1260.170  Purpose.

    Sections 1260.171 through 1260.173 contain closeout procedures and 
other procedures for subsequent disallowances and adjustments.


Sec. 1260.171  Closeout procedures.

    (a) Recipients shall submit, within 90 calendar days after the date 
of completion of the award, all financial, performance, and other 
reports as required by the terms and conditions of the award. NASA may 
approve extensions when requested by the recipient.
    (b) Unless NASA authorizes an extension, a recipient shall 
liquidate all obligations incurred under the award not later than 90 
calendar days after the funding period or the date of completion as 
specified in the terms and conditions of the award or in agency 
implementing instructions.
    (c) NASA shall make prompt payments to a recipient for allowable 
reimbursable costs under the award being closed out.
    (d) The recipient shall promptly refund any balances of unobligated 
cash that NASA has advanced or paid and that is not authorized to be 
retained by the recipient for use in other projects. OMB Circular A-129 
governs unreturned amounts that become delinquent debts.
    (e) When authorized by the terms and conditions of the award, NASA 
shall make a settlement for any upward or downward adjustments to the 
Federal share of costs after closeout reports are received.
    (f) The recipient shall account for any real and personal property 
acquired with Federal funds or received from the Federal Government in 
accordance with Sec. Sec. 1260.131 through 1260.137.
    (g) In the event a final audit has not been performed prior to the 
closeout of an award, NASA shall retain the right to recover an 
appropriate amount after fully considering the recommendations on 
disallowed costs resulting from the final audit.


Sec. 1260.172  Subsequent adjustments and continuing responsibilities.

    (a) The closeout of an award does not affect any of the following.
    (1) The right of NASA to disallow costs and recover funds on the 
basis of a later audit or other review.
    (2) The obligation of the recipient to return any funds due as a 
result of later refunds, corrections, or other transactions.
    (3) Audit requirements in Sec. 1260.126.
    (4) Property management requirements in Secs. 1260.131 through 
1260.137.
    (5) Records retention as required in Sec. 1260.153.
    (b) After closeout of an award, a relationship created under an 
award may be modified or ended in whole or in part with the consent of 
the NASA and the recipient, provided the responsibilities of the 
recipient referred to in Sec. 1260.173(a), including those for property 
management as applicable, are considered and provisions made for 
continuing responsibilities of the recipient, as appropriate.


Sec. 1260.173  Collection of amounts due.

    (a) Any funds paid to a recipient in excess of the amount to which 
the recipient is finally determined to be entitled under the terms and 
conditions of the award constitute a debt to the Federal Government. If 
not paid within a reasonable period after the demand for payment, NASA 
may reduce the debt by the provisions of paragraph (a) (1), (2) or (3) 
of this section.
    (1) Making an administrative offset against other requests for 
reimbursements.
    (2) Withholding advance payments otherwise due to the recipient.
    (3) Taking other action permitted by statute.
    (b) Except as otherwise provided by law, NASA shall charge interest 
on an overdue debt in accordance with 4 CFR chapter II, ``Federal 
Claims Collection Standards.''
Appendix A to Subpart B of Part 1260--Contract Provisions
    All contracts awarded by a recipient, including small purchases, 
shall contain the following provisions as applicable:
    1. Equal Employment Opportunity--All contracts shall contain a 
provision requiring compliance with Executive Order 11246; ``Equal 
Employment Opportunity,'' as amended by Executive Order 11375, 
``Amending Executive Order 11246 Relating to Equal Employment 
Opportunity,'' and as supplemented by regulations at 41 CFR part 60, 
``Office of Federal Contract Compliance Programs, Equal Employment 
Opportunity, Department of Labor.''
    2. Copeland ``Anti-Kickback'' Act (18 U.S.C. 874 and 40 U.S.C. 
276c)--All contracts in excess of $2,000 for construction or repair 
awarded by recipients shall include a provision for compliance with 
the Copeland ``Anti-Kickback'' Act (18 U.S.C. 874), as supplemented 
by Department of Labor regulations (29 CFR part 3, ``Contractors and 
Subcontractors on Public Building or Public Work Financed in Whole 
or in Part by Loans or Grants from the United States''). The Act 
provides that each contractor shall be prohibited from inducing, by 
any means, any person employed in the construction, completion, or 
repair of public work, to give up any part of the compensation to 
which he is otherwise entitled. The recipient shall report all 
suspected or reported violations to NASA.
    3. Davis-Bacon Act, as amended (40 U.S.C. 276a to a-7)--When 
required by Federal program legislation, all construction contracts 
awarded by the recipients of more than $2,000 shall include a 
provision for compliance with the Davis-Bacon Act (40 U.S.C. 276a to 
a-7) and as supplemented by Department of Labor regulations (29 CFR 
part 5, ``Labor Standards Provisions Applicable to Contracts 
Governing Federally Financed and Assisted Construction''). Under 
this Act, contractors shall be required to pay wages to laborers and 
mechanics at a rate not less than the minimum wages specified in a 
wage determination made by the Secretary of Labor. In addition, 
contractors shall be required to pay wages not less than once a 
week. The recipient shall place a copy of the current prevailing 
wage determination issued by the Department of Labor in each 
solicitation and the award of a contract shall be conditioned upon 
the acceptance of the wage determination. The recipient shall report 
all suspected or reported violations to the NASA.
    4. Contract Work Hours and Safety Standards Act (40 U.S.C. 327-
333)--Where applicable, all contracts awarded by recipients in 
excess of $2,000 for construction contracts and in excess of $2,500 
for other contracts that involve the employment of mechanics or 
laborers shall include a provision for compliance with sections 102 
and 107 of the Contract Work Hours and Safety Standards Act (40 
U.S.C. 327-333), as supplemented by Department of Labor regulations 
(29 CFR part 5). Under Subsection 102 of the Act, each contractor 
shall be required to compute the wages of every mechanic and laborer 
on the basis of a standard work week of 40 hours. Work in excess of 
the standard work week is permissible provided that the worker is 
compensated at a rate of not less than 1\1/2\ times the basic rate 
of pay for all hours worked in excess of 40 hours in the work week. 
Section 107 of the Act is applicable to construction work and 
provides that no laborer or mechanic shall be required to work in 
surroundings or under working conditions which are unsanitary, 
hazardous or dangerous. These requirements do not apply to the 
purchases of supplies or materials or articles ordinarily available 
on the open market, or contracts for transportation or transmission 
of intelligence.
    5. Rights to Inventions Made Under a Contract or Agreement--
Contracts or agreements for the performance of

[[Page 38084]]

experimental, developmental, or research work shall provide for the 
rights of the Federal Government and the recipient in any resulting 
invention in accordance with 37 CFR part 401, ``Rights to Inventions 
Made by Nonprofit Organizations and Small Business Firms Under 
Government Grants, Contracts and Cooperative Agreements,'' and any 
implementing regulations issued by the awarding agency.
    6. Clean Air Act (42 U.S.C. 7401 et seq.) and the Federal Water 
Pollution Control Act (33 U.S.C. 1251 et seq.), as amended--
Contracts of amounts in excess of $100,000 shall contain a provision 
that requires the recipient to agree to comply with all applicable 
standards, orders or regulations issued pursuant to the Clean Air 
Act (42 U.S.C. 7401 et seq.) and the Federal Water Pollution Control 
Act as amended (33 U.S.C. 1251 et seq.) Violations shall be reported 
to NASA and the Regional Office of the Environmental Protection 
Agency (EPA).
    7. Byrd Anti-Lobbying Amendment (31 U.S.C. 1352)--Contractors 
who apply or bid for an award of $100,000 or more shall file the 
required certification. Each tier certifies to the tier above that 
it will not and has not used Federal appropriated funds to pay any 
person or organization for influencing or attempting to influence an 
officer or employee of any agency, a member of Congress, officer or 
employee of Congress, or an employee of a member of Congress in 
connection with obtaining any Federal contract, grant or any other 
award covered by 31 U.S.C. 1352. Each tier shall also disclose any 
lobbying with non-Federal funds that takes place in connection with 
obtaining any Federal award. Such disclosures are forwarded from 
tier to tier up to the recipient.
    8. Debarment and Suspension (Executive Orders 12549 and 12689)--
No contract shall be made to parties listed on the General Services 
Administration's List of Parties Excluded from Federal Procurement 
or Nonprocurement Programs in accordance with Executive Orders 12549 
and 12689, ``Debarment and Suspension.'' This list contains the 
names of parties debarred, suspended, or otherwise excluded by 
agencies, and contractors declared ineligible under statutory or 
regulatory authority other than Executive Order 12549. Contractors 
with awards that exceed the small purchase threshold shall provide 
the required certification regarding its exclusion status and that 
of its principal employees.
[FR Doc. 96-18363 Filed 7-22-96; 8:45 am]
BILLING CODE 7510-01-M