[Federal Register Volume 62, Number 140 (Tuesday, July 22, 1997)]
[Rules and Regulations]
[Pages 39316-39327]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-19027]



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Part II





Department of Agriculture





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Cooperative State Research, Education, and Extension Service



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7 CFR Part 3405



Higher Education Challenge Grants Program; Administrative Provisions; 
Final Rule

  Federal Register / Vol. 62, No. 140 / Tuesday, July 22, 1997 / Rules 
and Regulations  

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DEPARTMENT OF AGRICULTURE

Cooperative State Research, Education, and Extension Service

7 CFR Part 3405

RIN 0524-AA02


Higher Education Challenge Grants Program; Administrative 
Provisions

AGENCY: Cooperative State Research, Education, and Extension Service, 
USDA.

ACTION: Final rule.

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SUMMARY: The Cooperative State Research, Education, and Extension 
Service (CSREES) adds a new part 3405 to Title 7, subtitle B, chapter 
XXXIV of the Code of Federal Regulations, for the purpose of 
administering the Higher Education Challenge Grants Program conducted 
under the authority of section 1417(b)(1) of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977, as amended (7 
U.S.C. 3152). This action establishes and codifies the administrative 
procedures to be followed annually in the solicitation of competitive 
proposals, the evaluation of such proposals, and the award of grants 
under this program.

DATES: Effective August 21, 1997.

FOR FURTHER INFORMATION CONTACT: Dr. Jeffrey L. Gilmore at 202-720-1973 
(voice), 202-720-2030 (fax) or via electronic mail at 
[email protected].

SUPPLEMENTARY INFORMATION: CSREES published a Notice of Proposed 
Rulemaking (NPRM) on the administrative provisions for the Higher 
Education Challenge Grants Program in the Federal Register on December 
19, 1995 (60 FR 65444-65454).

Public Comments and Statutory Changes

    In the NPRM, CSREES invited comments on the proposed regulations 
for consideration in the formulation of a final rule. Four comments 
were received.
    One commenter generally endorsed the proposed rule but did not 
comment on any particular provisions.
    Another commenter questioned if college and university teaching 
programs at the master's and doctoral degree levels were eligible for 
grants. Both the NPRM and this final rule provide that the Higher 
Education Challenge Grants Program may support projects to strengthen 
undergraduate or graduate teaching programs. Projects at the master's 
and doctoral degree levels are eligible for grants. Based on the amount 
of funds appropriated in any fiscal year, CSREES determines and cites 
in the annual program announcement the degree level(s) to be supported.
    The third commenter asked if grants could be made to foundations 
associated or affiliated with colleges or universities. The Higher 
Education Challenge Grants Program operates under the authority of 
section 1417(b) of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977, as amended (NARETPA)(7 U.S.C. 3152 (b)). 
Section 805(b) of the Federal Agriculture Improvement and Reform Act of 
1996 (FAIR Act)(Pub. L. 104-127, April 4, 1996), amended the grant 
eligibility requirements of section 1417 of NARETPA to include a 
research foundation maintained by an eligible college or university. 
This final rule modifies the NPRM by incorporating the FAIR Act 
authorization for grants to research foundations of eligible 
institutions by including such foundations in the definition of 
``eligible institution'' in Sec. 3405.2(i) of this final rule.
    A fourth commenter asked if only four-year colleges and 
universities are eligible to apply for grants. The Higher Education 
Challenge Grants Program operates under the authority of section 
1417(b) of NARETPA. Community colleges and other two-year institutions 
are not eligible for grants awarded under this section. Section 1417(b) 
of NARETPA authorizes the Secretary of Agriculture to make competitive 
grants to certain ``colleges and universities.'' The terms ``college'' 
and ``university'' are defined in section 1404(4)(C) of NARETPA (7 
U.S.C. 3103(4)(C)) as educational institutions that provide ``an 
educational program for which a bachelor's degree or any other higher 
degree is awarded.''
    This final rule modifies the NPRM by incorporating the change in 
eligibility for a research foundation into the definition of ``eligible 
institution'' in Sec. 3405.2(i) and adding the word ``eligible'' before 
``institution'' in Sec. 3405.2(l). The reference in Sec. 3405.17(a) to 
7 CFR part 3015 has been changed to reflect the currently applicable 
USDA assistance regulations at 7 CFR part 3019. References to ``CSRS'' 
forms have been changed to ``CSREES'' forms.
    Minor changes have been made to the provisions for grant extensions 
in Sec. 3405.18(c). These changes reflect existing law and allow 
flexibility in defining the terms for extensions in each agreement. 
Thus, CSREES does not think further comment is required.
    There are no other substantive differences between the NPRM and 
this final rule.

Background and Purpose

    This document adds a new part 3405 to title 7, subtitle B, chapter 
XXXIV of the Code of Federal Regulations, for the purpose of 
administering the Higher Education Challenge Grants Program. Under the 
authority of section 1417(b)(1) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977, as amended (7 U.S.C. 
3152(b)(1)), the Secretary of Agriculture is authorized to conduct 
competitive grant programs to strengthen institutional capacities, 
including curriculum, faculty, scientific instrumentation, instruction 
delivery systems, and student recruitment and retention, to respond to 
identified State, regional, national, or international educational 
needs in the food and agricultural sciences. The issuance of this rule 
will establish and codify the administrative procedures to be followed 
annually in the solicitation of competitive grant proposals, the 
evaluation of such proposals, and the award of grants under this 
program.
    The Challenge Grants Program is intended to assist colleges and 
universities in the United States, having a demonstrable capacity to 
carry out the teaching of the food and agricultural sciences, in 
providing high quality educational programs in the food and 
agricultural sciences. These programs will, in turn, attract 
outstanding students and produce graduates capable of strengthening the 
Nation's food and agricultural scientific and professional work force.

Classification

Executive Order No. 12866

    This rule has been determined to be not significant for purposes of 
Executive Order 12866 and therefore has not been reviewed by the Office 
of Management and Budget. It has been determined that this rule is not 
a ``significant regulatory action'' rule because it will not have an 
annual effect on the economy of $100 million or more or adversely and 
materially affect a sector of the economy, productivity, competition, 
jobs, the environment, public health or safety, or State, local, or 
tribal governments or communities. This rule will not create any 
serious inconsistencies or otherwise interfere with actions taken or 
planned by another agency. It will not materially alter the budgetary 
impact of entitlements, grants, user fees, or loan programs, or the 
rights and obligations of recipients thereof, and does not raise novel 
legal or policy issues arising out of legal mandates, the President's

[[Page 39317]]

priorities, or principles set forth in Executive Order No. 12866.

Paperwork Reduction

    Under the provisions of the Paperwork Reduction Act of 1995, as 
amended (44 U.S.C. Chapter 35), the collection of information 
requirements contained in this final rule have been reviewed and 
approved by OMB and given the OMB Document Nos. 0524-0022, 0524-0024, 
and 0524-0030. The public reporting burden for the information 
collections contained in these regulations (Forms CSREES-663, CSREES-
708, CSREES-711, CSREES-712, and CSREES-713 as well as the Proposal 
Summary, Proposal Narrative, and the Budget Narrative) is estimated to 
be 39\1/2\ hours per response, including the time for reviewing 
instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information. Send comments regarding this burden estimate 
or any other aspect of this collection of information, including 
suggestions for reducing this burden, to the Department of Agriculture, 
Clearance Officer, Office of the Chief Information Officer, Stop 7603, 
1400 Independence Avenue, SW., Washington, DC 20250-7630, and to the 
Office of Management and Budget, Paperwork Reduction Project, 
Washington, DC 20503. This rule has no additional impact on any 
existing data collection burden.

Regulatory Flexibility Act

    The Administrator, CSREES, certifies that this rule will not have a 
significant impact on a substantial number of small entities as defined 
in the Regulatory Flexibility Act, Pub. L. 96-534, as amended (5 U.S.C. 
601 et seq.). Accordingly, a regulatory flexibility analysis is not 
required for this final rule.

Executive Order No. 12612

    This rule involves no policies that have federalism implications 
under Executive Order No. 12612, Federalism, dated October 26, 1987.

Catalog of Federal Domestic Assistance

    This program is listed in the Catalog of Federal Domestic 
Assistance under No. 10.217, Higher Education Challenge Grants Program. 
For the reasons set forth in the Final Rule related Notice to 7 CFR 
part 3015, subpart V, 57 FR 15278, April 27, 1992, this program is 
excluded from the scope of Executive Order 12372 which requires 
intergovernmental consultation with State and local officials.

List of Subjects in 7 CFR Part 3405

    Grant programs--agriculture. Agriculture Higher Education Programs.
    For the reasons set forth in the preamble, title 7, subtitle B, 
chapter XXXIV, of the Code of Federal Regulations is amended by adding 
part 3405 to read as follows:

PART 3405--HIGHER EDUCATION CHALLENGE GRANTS PROGRAM

Subpart A--General Information

Sec.
3405.1  Applicability of regulations.
3405.2  Definitions.
3405.3  Institutional eligibility.

Subpart B--Program Description

3405.4  Purpose of the program.
3405.5  Matching funds.
3405.6  Scope of program.
3405.7  Joint project proposals.
3405.8  Complementary project proposals.
3405.9  Use of funds for facilities.

Subpart C--Preparation of a Proposal

3405.10  Program application materials.
3405.11  Content of a proposal.

Subpart D--Submission of a Proposal

3405.12  Intent to submit a proposal.
3405.13  When and where to submit a proposal.

Subpart E--Proposal Review and Evaluation

3405.14  Proposal review.
3405.15  Evaluation criteria.

Subpart F--Supplementary Information

3405.16  Access to peer review information.
3405.17  Grant awards.
3405.18  Use of funds; changes.
3405.19  Monitoring progress of funded projects.
3405.20  Other Federal statutes and regulations that apply.
3405.21  Confidential aspects of proposals and awards.
3405.22  Evaluation of program.

    Authority: Sec. 1470, National Agricultural Research, Extension, 
and Teaching Policy Act of 1977, as amended (7 U.S.C. 3316).

Subpart A--General Information


Sec. 3405.1  Applicability of regulations.

    (a) The regulations of this part only apply to competitive Higher 
Education Challenge Grants awarded under the provisions of section 
1417(b)(1) of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977, as amended (NARETPA)(7 U.S.C. 3152(b)(1)), 
to strengthen institutional capacities, including curriculum, faculty, 
scientific instrumentation, instruction delivery systems, and student 
recruitment and retention. Section 1405 of NARETPA (7 U.S.C. 3121) 
designates the U.S. Department of Agriculture (USDA) as the lead 
Federal agency for agricultural research, extension, and teaching in 
the food and agricultural sciences. Section 1417 of NARETPA (7 U.S.C. 
3152) authorizes the Secretary of Agriculture, who has delegated the 
authority to the Administrator of the Cooperative State Research, 
Education, and Extension Service (CSREES), to make competitive grants 
to land-grant colleges and universities, to colleges and universities 
having significant minority enrollments and a demonstrable capacity to 
carry out the teaching of food and agricultural sciences, and to other 
colleges and universities having a demonstrable capacity to carry out 
the teaching of food and agricultural sciences, for a period not to 
exceed 5 years, to administer and conduct programs to respond to 
identified State, regional, national, or international educational 
needs in the food and agricultural sciences.
    (b) To the extent that funds are available, each year CSREES will 
publish a Federal Register notice announcing the program and soliciting 
grant applications.
    (c)(1) Based on the amount of funds appropriated in any fiscal 
year, CSREES will determine and cite in the program announcement:
    (i) The targeted need area(s) to be supported or, if the entire 
scope of a particular targeted need area is not to be supported, the 
specific special interest(s) within that targeted need area to be 
supported;
    (ii) The degree level(s) to be supported;
    (iii) The maximum project period a proposal may request;
    (iv) The maximum amount of funds that may be requested by an 
institution under a regular, complementary, or joint project proposal; 
and
    (v) The maximum total funds that may be awarded to an institution 
under the program in a given fiscal year, including how funds awarded 
for complementary and for joint project proposals will be counted 
toward the institutional maximum.
    (2) The program announcement will also specify the deadline date 
for proposal submission, the number of copies of each proposal that 
must be submitted, the address to which a proposal must be submitted, 
and whether or not Form CSREES-711, ``Intent to Submit a Proposal,'' is 
requested.
    (d)(1) If it is deemed by CSREES that, for a given fiscal year, 
additional determinations are necessary, each, as relevant, will be 
stated in the program announcement. Such determinations may include:

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    (i) Limits on the subject matter/emphasis areas to be supported;
    (ii) The maximum number of proposals that may be submitted on 
behalf of the same school, college, or equivalent administrative unit 
within an institution;
    (iii) The maximum total number of proposals that may be submitted 
by an institution;
    (iv) The minimum project period a proposal may request;
    (v) The minimum amount of funds that may be requested by an 
institution under a regular, complementary, or joint project proposal;
    (vi) The proportion of the appropriation reserved for, or available 
to, regular, complementary, and joint project proposals;
    (vii) The proportion of the appropriation reserved for, or 
available to, projects in each announced targeted need area;
    (viii) The proportion of the appropriation reserved for, or 
available to, each subject matter/emphasis area;
    (ix) The maximum number of grants that may be awarded to an 
institution under the program in a given fiscal year; and
    (x) Limits on the use of grant funds for travel or to purchase 
equipment, if any.
    (2) The program announcement also will contain any other 
limitations deemed necessary by CSREES for proper conduct of the 
program in the applicable year.
    (e) The regulations of this part do not apply to grants awarded by 
the Department of Agriculture under any other authority.


Sec. 3405.2  Definitions.

    As used in this part:
    (a) Authorized departmental officer means the Secretary or any 
employee of the Department who has the authority to issue or modify 
grant instruments on behalf of the Secretary.
    (b) Authorized organizational representative means the president of 
the institution or the official, designated by the president of the 
institution, who has the authority to commit the resources of the 
institution.
    (c) Budget period means the interval of time (usually 12 months) 
into which the project period is divided for budgetary and reporting 
purposes.
    (d) Cash contributions means the applicant's cash outlay, including 
the outlay of money contributed to the applicant by non-Federal third 
parties.
    (e) Citizen or national of the United States means: 
    (1) A citizen or native resident of a State; or,
    (2) A person defined in the Immigration and Nationality Act, 8 
U.S.C. 1101(a)(22), who, though not a citizen of the United States, 
owes permanent allegiance to the United States.
    (f) College or University means an educational institution in any 
State which:
    (1) Admits as regular students only persons having a certificate of 
graduation from a school providing secondary education, or the 
recognized equivalent of such a certificate;
    (2) Is legally authorized within such State to provide a program of 
education beyond secondary education;
    (3) Provides an educational program for which a baccalaureate 
degree or any other higher degree is awarded;
    (4) Is a public or other nonprofit institution; and
    (5) Is accredited by a nationally recognized accrediting agency or 
association.
    (g) Complementary project proposal means a proposal for a project 
which involves coordination with one or more other projects for which 
funding was awarded under this program in a previous fiscal year, or 
for which funding is requested under this program in the current fiscal 
year.
    (h) Department or USDA means the United States Department of 
Agriculture.
    (i) Eligible institution means a land-grant or other U.S. college 
or university offering a baccalaureate or first professional degree in 
at least one discipline or area of the food and agricultural sciences. 
The definition includes a research foundation maintained by an eligible 
college or university.
    (j) Eligible participant means, for purposes of Sec. 3405.6(b), 
Faculty Preparation and Enhancement for Teaching, and Sec. 3405.6(f), 
Student Recruitment and Retention, an individual who: Is a citizen or 
national of the United States, as defined in Sec. 3405.2(e); or is a 
citizen of the Federated States of Micronesia, the Republic of the 
Marshall Islands, or the Republic of Palau. Where eligibility is 
claimed under Sec. 3405.2(e)(2), documentary evidence from the 
Immigration and Naturalization Service as to such eligibility must be 
made available to CSREES upon request.
    (k) Food and agricultural sciences means basic, applied, and 
developmental research, extension, and teaching activities in the food, 
agricultural, renewable natural resources, forestry, and physical and 
social sciences, in the broadest sense of these terms, including but 
not limited to, activities concerned with the production, processing, 
marketing, distribution, conservation, consumption, research, and 
development of food and agriculturally related products and services, 
and inclusive of programs in agriculture, natural resources, 
aquaculture, forestry, veterinary medicine, home economics, rural 
development, and closely allied disciplines.
    (l) Grantee means the eligible institution designated in the grant 
award document as the responsible legal entity to which a grant is 
awarded.
    (m) Joint project proposal means a proposal for a project, which 
will involve the applicant institution and two or more other colleges, 
universities, community colleges, junior colleges, or other 
institutions, each of which will assume a major role in the conduct of 
the proposed project, and for which the applicant institution will 
transfer at least one-half of the awarded funds to the other 
institutions participating in the project. Only the applicant 
institution must meet the definition of ``eligible institution'' as 
specified in Sec. 3405.2(i); the other institutions participating in a 
joint project proposal are not required to meet the definition of 
``eligible institution'' as specified in Sec. 3405.2(i), nor required 
to meet the definition of ``college'' or ``university'' as specified in 
Sec. 3405.2(f).
    (n) Land-grant colleges and universities means those institutions 
eligible to receive funds under the Act of July 2, 1862 (12 Stat. 503-
505, as amended; 7 U.S.C. 301-305, 307 and 308), or the Act of August 
30, 1890 (26 Stat. 417-419, as amended; 7 U.S.C. 321-326 and 328), 
including Tuskegee University.
    (o) Matching or Cost-sharing means that portion of project costs 
not borne by the Federal Government, including the value of in-kind 
contributions.
    (p) Peer review panel means a group of experts or consultants, 
qualified by training and experience in particular fields of science, 
education, or technology to give expert advice on the merit of grant 
applications in such fields, who evaluate eligible proposals submitted 
to this program in their personal area(s) of expertise.
    (q) Prior approval means written approval evidencing prior consent 
by an authorized departmental officer as defined in Sec. 3405.2(a) of 
this part.
    (r) Project means the particular activity within the scope of one 
or more of the targeted areas supported by a grant awarded under this 
program.
    (s) Project director means the single individual designated by the 
grantee in the grant application and approved by the Secretary who is 
responsible for the

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direction and management of the project.
    (t) Project period means the period, as stated in the award 
document and modifications thereto, if any, during which Federal 
sponsorship begins and ends.
    (u) Secretary means the Secretary of Agriculture and any other 
officer or employee of the Department of Agriculture to whom the 
authority involved may be delegated.
    (v) State means any one of the fifty States, the Commonwealth of 
Puerto Rico, Guam, American Samoa, the Commonwealth of the Northern 
Marianas, the Virgin Islands of the United States, and the District of 
Columbia.
    (w) Teaching means formal classroom instruction, laboratory 
instruction, and practicum experience in the food and agricultural 
sciences and matters related thereto (such as faculty development, 
student recruitment and services, curriculum development, instructional 
materials and equipment, and innovative teaching methodologies) 
conducted by colleges and universities offering baccalaureate or higher 
degrees.
    (x) Third party in-kind contributions means non-cash contributions 
of property or services provided by non-Federal third parties, 
including real property, equipment, supplies and other expendable 
property, directly benefiting and specifically identifiable to a funded 
project or program.
    (y) United States means the several States, the territories and 
possessions of the United States, the Commonwealth of Puerto Rico, 
Guam, American Samoa, the Commonwealth of the Northern Marianas, the 
Virgin Islands of the United States, and the District of Columbia.


Sec. 3405.3  Institutional eligibility.

    Proposals may be submitted by land-grant and other U.S. colleges 
and universities offering a baccalaureate or first professional degree 
in at least one discipline or area of the food and agricultural 
sciences. Each applicant must have a demonstrable capacity for, and a 
significant ongoing commitment to, the teaching of food and 
agricultural sciences generally and to the specific need and/or subject 
area(s) for which a grant is requested. Awards may be made only to 
eligible institutions as defined in Sec. 3405.2(i).

Subpart B--Program Description


Sec. 3405.4  Purpose of the program.

    The Department of Agriculture is designated as the lead Federal 
agency for higher education in the food and agricultural sciences. In 
this context, CSREES has specific responsibility to initiate and 
support projects to strengthen college and university teaching programs 
in the food and agricultural sciences. One national initiative for 
carrying out this responsibility is the competitive Higher Education 
Challenge Grants Program. A primary goal of the program is to attract 
and ensure a continual flow of outstanding students into food and 
agricultural sciences higher education programs and to provide them 
with an education of the highest quality available anywhere in the 
world and which reflects the unique needs of the Nation. It is designed 
to stimulate and enable colleges and universities to provide the 
quality of education necessary to produce baccalaureate or higher 
degree level graduates capable of strengthening the Nation's food and 
agricultural scientific and professional work force. It is intended 
that projects supported by the program will:
    (a) Address a State, regional, national, or international 
educational need;
    (b) Involve a creative or nontraditional approach toward addressing 
that need which can serve as a model to others;
    (c) Encourage and facilitate better working relationships in the 
university science and education community, as well as between 
universities and the private sector, to enhance program quality and 
supplement available resources; and
    (d) Result in benefits which will likely transcend the project 
duration and USDA support.


Sec. 3405.5  Matching funds.

    Each application must provide for matching support from a non-
Federal source. CSREES will cite in the program announcement the 
required percentage of institutional cost sharing.


Sec. 3405.6  Scope of Program.

    This program supports projects related to strengthening 
undergraduate or graduate teaching programs as specified in the annual 
program announcement. Only proposals addressing one or more of the 
specific targeted need areas(s) identified in the program announcement 
will be funded. Proposals may focus on any subject matter area(s) in 
the food and agricultural sciences unless limited by determinations as 
specified in the annual program announcement. A proposal may address a 
single targeted need area or multiple targeted need areas, and may be 
focused on a single subject matter area or multiple subject matter 
areas, in any combination (e.g., curriculum development in 
horticulture; curriculum development, faculty enhancement, and student 
experiential learning in animal science; faculty enhancement in food 
science and agribusiness management; or instruction delivery systems 
and student experiential learning in plant science, horticulture, and 
entomology). Targeted need areas will consist of one or more of the 
following:
    (a) Curricula design and materials development. (1) The purpose of 
this initiative is to promote new and improved curricula and materials 
to increase the quality of, and continuously renew, the Nation's 
academic programs in the food and agricultural sciences. The overall 
objective is to stimulate the development and facilitate the use of 
exemplary education models and materials that incorporate the most 
recent advances in subject matter, research on teaching and learning 
theory, and instructional technology. Proposals may emphasize: the 
development of courses of study, degree programs, and instructional 
materials; the use of new approaches to the study of traditional 
subjects; or the introduction of new subjects, or new applications of 
knowledge, pertaining to the food and agricultural sciences.
    (2) Examples include, but are not limited to, curricula and 
materials that promote:
    (i) Raising the level of scholastic achievement of the Nation's 
graduates in the food and agricultural sciences.
    (ii) Addressing the special needs of particular groups of students, 
such as minorities, gifted and talented, or those with educational 
backgrounds that warrant enrichment.
    (iii) Using alternative instructional strategies or methodologies, 
including computer-assisted instruction or simulation modeling, media 
programs that reach large audiences efficiently and effectively, 
activities that provide hands-on learning experiences, and educational 
programs that extend learning beyond the classroom.
    (iv) Using sound pedagogy, particularly with regard to recent 
research on how to motivate students to learn, retain, apply, and 
transfer knowledge, skills, and competencies.
    (v) Building student competencies to integrate and synthesize 
knowledge from several disciplines.
    (b) Faculty preparation and enhancement for teaching. (1) The 
purpose of this initiative is to advance faculty development in the 
areas of teaching competency, subject matter expertise, or student 
recruitment and advising skills. Teachers are central to

[[Page 39320]]

education. They serve as models, motivators, and mentors--the catalysts 
of the learning process. Moreover, teachers are agents for developing, 
replicating, and exchanging effective teaching materials and methods. 
For these reasons, education can be strengthened only when teachers are 
adequately prepared, highly motivated, and appropriately recognized and 
rewarded.
    (2) Each faculty recipient of support for developmental activities 
under Sec. 3405.6(b) must be an ``eligible participant'' as defined in 
Sec. 3405.2(j) of this part.
    (3) Examples of developmental activities include, but are not 
limited to, those which enable teaching faculty to:
    (i) Gain experience with recent developments or innovative 
technology relevant to their teaching responsibilities.
    (ii) Work under the guidance and direction of experts who have 
substantial expertise in an area related to the developmental goals of 
the project.
    (iii) Work with scientists or professionals in government, 
industry, or other colleges or universities to learn new applications 
in a field.
    (iv) Obtain personal experience working with new ideas and 
techniques.
    (v) Expand competence with new methods of information delivery, 
such as computer-assisted or televised instruction.
    (vi) Increase understanding of the special needs of non-traditional 
students or students from groups that are underrepresented in the food 
and agricultural sciences workforce.
    (c) Instruction delivery systems. (1) The purpose of this 
initiative is to encourage the use of alternative methods of delivering 
instruction to enhance the quality, effectiveness, and cost efficiency 
of teaching programs. The importance of this initiative is evidenced by 
advances in educational research which have substantiated the theory 
that differences in the learning styles of students often require 
alternative instructional methodologies. Also, the rising costs of 
higher education strongly suggest that colleges and universities 
undertake more efforts of a collaborative nature in order to deliver 
instruction which maximizes program quality and reduces unnecessary 
duplication. At the same time, advancements in knowledge and technology 
continue to introduce new subject matter areas which warrant 
consideration and implementation of innovative instruction techniques, 
methodologies, and delivery systems.
    (2) Examples include, but are not limited to:
    (i) Use of computers.
    (ii) Teleconferencing.
    (iii) Networking via satellite communications.
    (iv) Regionalization of academic programs.
    (v) Mobile classrooms and laboratories.
    (vi) Individualized learning centers.
    (vii) Symposia, forums, regional or national workshops, etc.
    (d) Scientific instrumentation for teaching. (1) The purpose of 
this initiative is to provide students in science-oriented courses the 
necessary experience with suitable, up-to-date equipment in order to 
involve them in work central to scientific understanding and progress. 
This program initiative will support the acquisition of instructional 
laboratory and classroom equipment to assure the achievement and 
maintenance of outstanding food and agricultural sciences higher 
education programs. A proposal may request support for acquiring new, 
state-of-the-art instructional scientific equipment, upgrading existing 
equipment, or replacing non-functional or clearly obsolete equipment.
    (2) Examples include, but are not limited to:
    (i) Rental or purchase of modern instruments to improve student 
learning experiences in courses, laboratories, and field work.
    (ii) Development of new ways of using instrumentation to extend 
instructional capabilities.
    (iii) Establishment of equipment-sharing capability via consortia 
or centers that develop innovative opportunities, such as mobile 
laboratories or satellite access to industry or government 
laboratories.
    (e) Student experiential learning. (1) The purpose of this 
initiative is to further the development of student scientific and 
professional competencies through experiential learning programs which 
provide students with opportunities to solve complex problems in the 
context of real-world situations. Effective experiential learning is 
essential in preparing future graduates to advance knowledge and 
technology, enhance quality of life, conserve resources, and revitalize 
the Nation's economic competitiveness. Such experiential learning 
opportunities are most effective when they serve to advance decision-
making and communication skills as well as technological expertise.
    (2) Examples include, but are not limited to, projects which:
    (i) Provide opportunities for students to participate in research 
projects, either as a part of an ongoing research project or in a 
project designed especially for this program.
    (ii) Provide opportunities for students to complete 
apprenticeships, internships, or similar participatory learning 
experiences.
    (iii) Expand and enrich courses which are of a practicum nature.
    (iv) Provide career mentoring experiences that link students with 
outstanding professionals.
    (f) Student recruitment and retention. (1) The purpose of this 
initiative is to strengthen student recruitment and retention programs 
in order to promote the future strength of the Nation's scientific and 
professional work force. The Nation's economic competitiveness and 
quality of life rest upon the availability of a cadre of outstanding 
research scientists, university faculty, and other professionals in the 
food and agricultural sciences. A substantial need exists to supplement 
efforts to attract increased numbers of academically outstanding 
students to prepare for careers as food and agricultural scientists and 
professionals. It is particularly important to augment the racial, 
ethnic, and gender diversity of the student body in order to promote a 
robust exchange of ideas and a more effective use of the full breadth 
of the Nation's intellectual resources.
    (2) Each student recipient of monetary support for education costs 
or developmental purposes under Sec. 3405.6(f) must be enrolled at an 
eligible institution and meet the requirement of an ``eligible 
participant'' as defined in Sec. 3405.2(j) of this part.
    (3) Examples include, but are not limited to:
    (i) Special outreach programs for elementary and secondary students 
as well as parents, counselors, and the general public to broaden 
awareness of the extensive nature and diversity of career opportunities 
for graduates in the food and agricultural sciences.
    (ii) Special activities and materials to establish more effective 
linkages with high school science classes.
    (iii) Unique or innovative student recruitment activities, 
materials, and personnel.
    (iv) Special retention programs to assure student progression 
through and completion of an educational program.
    (v) Development and dissemination of stimulating career information 
materials.
    (vi) Use of regional or national media to promote food and 
agricultural sciences higher education.

[[Page 39321]]

    (vii) Providing financial incentives to enable and encourage 
students to pursue and complete an undergraduate or graduate degree in 
an area of the food and agricultural sciences.
    (viii) Special recruitment programs to increase the participation 
of students from non-traditional or underrepresented groups in courses 
of study in the food and agricultural sciences.


Sec. 3405.7  Joint project proposals.

    Applicants are encouraged to submit joint project proposals as 
defined in Sec. 3405.2(m), which address regional or national problems 
and which will result overall in strengthening higher education in the 
food and agricultural sciences. The goals of such joint initiatives 
should include maximizing the use of limited resources by generating a 
critical mass of expertise and activity focused on a targeted need 
area(s), increasing cost-effectiveness through achieving economies of 
scale, strengthening the scope and quality of a project's impact, and 
promoting coalition building likely to transcend the project's lifetime 
and lead to future ventures.


Sec. 3405.8  Complementary project proposals.

    Institutions may submit proposals that are complementary in nature 
as defined in Sec. 3405.2(g). Such complementary project proposals may 
be submitted by the same or by different eligible institutions.


Sec. 3405.9  Use of funds for facilities.

    Under the Higher Education Challenge Grants Program, the use of 
grant funds to plan, acquire, or construct a building or facility is 
not allowed. With prior approval, in accordance with the cost 
principles set forth in OMB Circular No. A-21, some grant funds may be 
used for minor alterations, renovations, or repairs deemed necessary to 
retrofit existing teaching spaces in order to carry out a funded 
project. However, requests to use grant funds for such purposes must 
demonstrate that the alterations, renovations, or repairs are 
incidental to the major purpose for which a grant is made.

Subpart C--Preparation of a Proposal


Sec. 3405.10  Program application materials.

    Program application materials in an application package will be 
made available to eligible institutions upon request. These materials 
include the program announcement, the administrative provisions for the 
program, and the forms needed to prepare and submit grant applications 
under the program.


Sec. 3405.11  Content of a proposal.

    (a) Proposal cover page. (1) Form CSREES-712, ``Higher Education 
Proposal Cover Page,'' must be completed in its entirety. Note that 
providing a Social Security Number is voluntary, but is an integral 
part of the CSREES information system and will assist in the processing 
of the proposal.
    (2) One copy of the Form CSREES-712 must contain the pen-and-ink 
signatures of the Project Director(s) and authorized organizational 
representative for the applicant institution.
    (3) The title of the project shown on the ``Higher Education 
Proposal Cover Page'' must be brief (80-character maximum) yet 
represent the major thrust of the project. This information will be 
used by the Department to provide information to the Congress and other 
interested parties.
    (4) In block 7. of Form CSREES-712, enter ``Higher Education 
Challenge Grants Program.''
    (5) In block 8.a. of Form CSREES-712, enter ``Teaching.'' In block 
8.b. identify the code for the targeted need area(s) as found on the 
reverse of the form. If a proposal focuses on multiple targeted need 
areas, enter each code associated with the project and place an 
asterisk (*) immediately following the code for the primary targeted 
need area. In block 8.c. identify the major area(s) of emphasis as 
found on the reverse of the form. If a proposal focuses on multiple 
areas of emphasis, enter each code associated with the project. This 
information will be used by program staff for the proper assignment of 
proposals to peer reviewers.
    (6) In block 9. of Form CSREES-712, indicate if the proposal is a 
complementary project proposal or a joint project proposal as defined 
in Sec. 3405.2(g) and Sec. 3405.2(m), respectively, of this part. If it 
is not a complementary project proposal or a joint project proposal, 
identify it as a regular project proposal.
    (7) In block 13. of Form CSREES-712, indicate if the proposal is a 
new, first-time submission or if the proposal is a resubmission of a 
proposal that has been submitted to, but not funded under, the Higher 
Education Challenge Grants Program in a previous competition.
    (b) Table of Contents. For ease in locating information, each 
proposal must contain a detailed table of contents just after the 
Proposal Cover Page. The Table of Contents should include page numbers 
for each component of the proposal. Pagination should begin immediately 
following the Table of Contents.
    (c) Project summary. (1) A Project Summary should immediately 
follow the Table of Contents. The information provided in the Project 
Summary may be used by the program staff for a variety of purposes, 
including the proper assignment of proposals to peer reviewers and 
providing information to peer reviewers prior to the peer panel 
meeting. The name of the institution, the targeted need area(s), and 
the title of the proposal must be identified exactly as shown on the 
``Higher Education Proposal Cover Page.''
    (2) If the proposal is a complementary project proposal, as defined 
in Sec. 3405.2(g) of this part, indicate such and identify the other 
complementary project(s) by citing the name of the submitting 
institution, the title of the project, the project director, and the 
grant number (if funded in a previous year) exactly as shown on the 
cover page of the complementary project so that appropriate 
consideration can be given to the interrelatedness of the proposals in 
the evaluation process.
    (3) If the proposal is a joint project proposal, as defined in 
Sec. 3405.2(m) of this part, indicate such and identify the other 
participating institutions and the key faculty member or other 
individual responsible for coordinating the project at each 
institution.
    (4) The Project Summary should be a concise description of the 
proposed activity suitable for publication by the Department to inform 
the general public about awards under the program. The text must not 
exceed one page, single-spaced. The Project Summary should be a self-
contained description of the activity which would result if the 
proposal is funded by USDA. It should include: The objectives of the 
project; a synopsis of the plan of operation; a description of how the 
project will strengthen higher education in the food and agricultural 
sciences in the United States; and the plans for disseminating project 
results. The Project Summary should be written so that a technically 
literate reader can evaluate the use of Federal funds in support of the 
project.
    (d) Resubmission of a proposal.--(1) Resubmission of previously 
unfunded proposals. If a proposal has been submitted previously, but 
was not funded, such should be indicated in block 13. on Form CSREES-
712, ``Higher Education Proposal Cover Page,'' and the following 
information should be included in the proposal: The fiscal year(s) in 
which the proposal was submitted previously; a summary of the peer 
reviewers' comments; and how these comments have been addressed in

[[Page 39322]]

the current proposal, including the page numbers in the current 
proposal where the peer reviewers' comments have been addressed. This 
information may be provided as a section of the proposal following the 
Project Summary and preceding the proposal narrative or it may be 
placed in the Appendix (see Sec. 3405.11(i)). In either case, the 
location of this information should be indicated in the Table of 
Contents. Further, when possible, the information should be presented 
in tabular format. Applicants who choose to resubmit proposals that 
were previously submitted, but not funded, should note that resubmitted 
proposals must compete equally with newly submitted proposals. 
Submitting a proposal that has been revised based on a previous peer 
review panel's critique of the proposal does not guarantee the success 
of the resubmitted proposal.
    (2) Resubmission of previously funded proposals. The Higher 
Education Challenge Grants Program is not designed to support 
activities that essentially are repetitive in nature over multiple 
grant awards. Project directors who have had their projects funded 
previously are discouraged from resubmitting relatively identical 
proposals for further funding. Proposals that are sequential 
continuations or new stages of previously funded Challenge Grants 
Program projects must compete with first-time proposals. Therefore, 
project directors should thoroughly demonstrate how the project 
proposed in the current application expands substantially upon a 
previously funded project (i.e., demonstrate how the new project will 
advance the former project to the next level of attainment or will 
achieve expanded goals). The proposal must also show the degree to 
which the new phase promotes innovativeness and creativity beyond the 
scope of the previously funded project.
    (e) Narrative of a proposal. The narrative portion of the proposal 
is limited to 20 pages in length. The one-page Project Summary is not 
included in the 20-page limitation. The narrative must be typed on one 
side of the page only, using a font no smaller than 12 point, and 
double-spaced. All margins must be at least one inch. All pages 
following the Table of Contents must be paginated. It should be noted 
that peer reviewers will not be required to read beyond 20 pages of the 
narrative to evaluate the proposal. The narrative should contain the 
following sections:
    (1) Potential for advancing the quality of education.--(i) Impact. 
(A) Identify the targeted need area(s).
    (B) Clearly state the specific instructional problem or opportunity 
to be addressed.
    (C) Describe how and by whom the focus and scope of the project 
were determined. Summarize the body of knowledge which substantiates 
the need for the proposed project.
    (D) Describe ongoing or recently completed significant activities 
related to the proposed project for which previous funding was received 
under this program.
    (E) Discuss how the project will be of value at the State, 
regional, national, or international level(s).
    (F) Discuss how the benefits to be derived from the project will 
transcend the applicant institution or the grant period. Also discuss 
the probabilities of the project being adapted by other institutions. 
For example, can the project serve as a model for others?
    (ii) Continuation plans. Discuss the likelihood of, or plans for, 
continuation or expansion of the project beyond USDA support. For 
example, does the institution's long-range budget or academic plan 
provide for the realistic continuation or expansion of the initiative 
undertaken by this project after the end of the grant period, are plans 
for eventual self-support built into the project, are plans being made 
to institutionalize the program if it meets with success, and are there 
indications of other continuing non-Federal support?
    (iii) Innovation. Describe the degree to which the proposal 
reflects an innovative or non-traditional approach to solving a higher 
education problem or strengthening the quality of higher education in 
the food and agricultural sciences.
    (iv) Products and results. Explain the expected products and 
results and their potential impact on strengthening food and 
agricultural sciences higher education in the United States.
    (2) Overall approach and cooperative linkages.--(i) Proposed 
approach.(A) Objectives. Cite and discuss the specific objectives to be 
accomplished under the project.
    (B) Plan of operation. (1) Describe procedures for accomplishing 
the objectives of the project.
    (2) Describe plans for management of the project to ensure its 
proper and efficient administration.
    (3) Describe the way in which resources and personnel will be used 
to conduct the project.
    (C) Timetable. Provide a timetable for conducting the project. 
Identify all important project milestones and dates as they relate to 
project start-up, execution, evaluation, dissemination, and close-out.
    (ii) Evaluation plans. (A) Provide a plan for evaluating the 
accomplishment of stated objectives during the conduct of the project. 
Indicate the criteria, and corresponding weight of each, to be used in 
the evaluation process, describe any data to be collected and analyzed, 
and explain the methodology that will be used to determine the extent 
to which the needs underlying the project are met.
    (B) Provide a plan for evaluating the effectiveness of the end 
results upon conclusion of the project. Include the same kinds of 
information requested in Sec. 3405.11(e)(2)(ii)(A).
    (iii) Dissemination plans. Discuss plans to disseminate project 
results and products. Identify target audiences and explain methods of 
communication.
    (iv) Partnerships and collaborative efforts. (A) Explain how the 
project will maximize partnership ventures and collaborative efforts to 
strengthen food and agricultural sciences higher education (e.g., 
involvement of faculty in related disciplines at the same institution, 
joint projects with other colleges or universities, or cooperative 
activities with business or industry). Also explain how it will 
stimulate academia, the States, or the private sector to join with the 
Federal partner in enhancing food and agricultural sciences higher 
education.
    (B) Provide evidence, via letters from the parties involved, that 
arrangements necessary for collaborative partnerships or joint 
initiatives have been discussed and realistically can be expected to 
come to fruition, or actually have been finalized contingent on an 
award under this program. Letters must be signed by an official who has 
the authority to commit the resources of the organization. Such letters 
should be referenced in the plan of operation, but the actual letters 
should be included in the Appendix section of the proposal. Any 
potential conflict(s) of interest that might result from the proposed 
collaborative arrangements must be discussed in detail.
    (3) Institutional commitment and resources.--(i) Institutional 
commitment. Discuss the institution's commitment to the project. For 
example, substantiate that the institution attributes a high priority 
to the project, discuss how the project will contribute to the 
achievement of the institution's long-term (five-to ten-year) goals, 
explain how the project will help satisfy the institution's high-
priority objectives, or show how this project is linked to and 
supported by the institution's strategic plan.

[[Page 39323]]

    (ii) Institutional resources. Document the commitment of 
institutional resources to the project, and show that the institutional 
resources to be made available to the project, when combined with the 
support requested from USDA, will be adequate to carry out the 
activities of the project. Discuss institutional facilities, equipment, 
computer services, and other appropriate resources available to the 
project.
    (f) Key personnel. A Form CSREES-708, ``Summary Vita--Teaching 
Proposal,'' should be included for each key person associated with the 
project.
    (g) Budget and cost-effectiveness.--(1) Budget form. (i) Prepare 
Form CSREES-713, ``Higher Education Budget,'' in accordance with 
instructions provided with the form. Proposals may request support for 
a period to be identified in each year's program announcement. A budget 
form is required for each year of requested support. In addition, a 
summary budget is required detailing the requested total support for 
the overall project period. Form CSREES-713 may be reproduced as needed 
by proposers. Funds may be requested under any of the categories listed 
on the form, provided that the item or service for which support is 
requested is allowable under the authorizing legislation, the 
applicable Federal cost principles, and these administrative 
provisions, and can be justified as necessary for the successful 
conduct of the proposed project.
    (ii) The approved negotiated instruction rate or the rate allowed 
by law should be used when computing indirect costs. If a reduced rate 
of indirect costs is voluntarily requested from USDA, the remaining 
allowable indirect costs may be used as matching funds.
    (2) Matching funds. When documenting matching contributions, use 
the following guidelines:
    (i) When preparing the column of Form CSREES-713 entitled 
``Applicant Contributions To Matching Funds,'' only those costs to be 
contributed by the applicant for the purposes of matching should be 
shown. The total amount of this column should be indicated in item M.
    (ii) In item N of Form CSREES-713, show a total dollar amount for 
Cash Contributions from both the applicant and any third parties; also 
show a total dollar amount (based on current fair market value) for 
Non-cash Contributions from both the applicant and any third parties.
    (iii) To be counted toward the matching requirements stated in 
Sec. 3405.5 of this part, proposals must include written verification 
of any actual commitments of matching support (including both cash and 
non-cash contributions) from third parties. Written verification 
means--
    (A) For any third party cash contributions, a separate pledge 
agreement for each donation, signed by the authorized organizational 
representative(s) of the donor organization and the applicant 
institution, which must include:
    (1) The name, address, and telephone number of the donor;
    (2) The name of the applicant institution;
    (3) The title of the project for which the donation is made;
    (4) The dollar amount of the cash donation; and
    (5) A statement that the donor will pay the cash contribution 
during the grant period; and
    (B) For any third party non-cash contributions, a separate pledge 
agreement for each contribution, signed by the authorized 
organizational representative(s) of the donor organization and the 
applicant institution, which must include:
    (1) The name, address, and telephone number of the donor;
    (2) The name of the applicant institution;
    (3) The title of the project for which the donation is made;
    (4) A good faith estimate of the current fair market value of the 
non-cash contribution; and
    (5) A statement that the donor will make the contribution during 
the grant period.
    (iv) All pledge agreements referenced in Sec. 3405.11(g)(2)(iii) 
(A) and (B) must be placed in the proposal immediately following Form 
CSREES-713. The sources and amounts of all matching support from 
outside the applicant institution should be summarized in the Budget 
Narrative section of the proposal.
    (v) Applicants should refer to OMB Circulars A-110, ``Uniform 
Administrative Requirements for Grants and Agreements With Institutions 
of Higher Education, Hospitals and Other Non-profit Organizations,'' 
and A-21, ``Cost Principles for Educational Institutions,'' for further 
guidance and other requirements relating to matching and allowable 
costs.
    (3) Chart on shared budget for joint project proposal. For a joint 
project proposal, a plan must be provided indicating how funds will be 
distributed to the participating institutions. The budget section of a 
joint project proposal should include a chart indicating: The names of 
the participating institutions; the amount of funds to be disbursed to 
those institutions; and the way in which such funds will be used in 
accordance with items A through L of Form CSREES-713, ``Higher 
Education Budget.'' If a proposal is not for a joint project, such a 
chart is not required.
    (4) Budget narrative. (i) Discuss how the budget specifically 
supports the proposed project activities. Explain how such budget items 
as professional or technical staff, travel, equipment, etc., are 
essential to achieving project objectives.
    (ii) Justify that the total budget, including funds requested from 
USDA and any matching support provided, will be adequate to carry out 
the activities of the project. Provide a summary of sources and amounts 
of all third party matching support.
    (iii) Justify the project's cost-effectiveness. Show how the 
project maximizes the use of limited resources, optimizes educational 
value for the dollar, achieves economies of scale, or leverages 
additional funds. For example, discuss how the project has the 
potential to generate a critical mass of expertise and activity focused 
on a targeted need area, or to promote coalition building that could 
lead to future ventures.
    (iv) Include the percentage of time key personnel will work on the 
project, both during the academic year and summer. When salaries of 
university personnel will be paid by a combination of USDA and 
institutional funds, the total compensation must not exceed the faculty 
member's regular annual compensation. In addition, the total commitment 
of time devoted to the project, when combined with time for teaching 
and research duties, other sponsored agreements, and other employment 
obligations to the institution, must not exceed 100 percent of the 
normal workload for which the employee is compensated, in accordance 
with established university policies and applicable Federal cost 
principles.
    (v) If the proposal addresses more than one targeted need area 
(e.g., student experiential learning and instruction delivery systems), 
estimate the proportion of the funds requested from USDA that will 
support each respective targeted need area.
    (h) Current and pending support. Each applicant must complete Form 
CSREES-663, ``Current and Pending Support,'' identifying any other 
current public- or private-sponsored projects, in addition to the 
proposed project, to which key personnel listed in the proposal under 
consideration have

[[Page 39324]]

committed portions of their time, whether or not salary support for the 
person(s) involved is included in the budgets of the various projects. 
This information should also be provided for any pending proposals 
which are currently being considered by, or which will be submitted in 
the near future to other possible sponsors, including other USDA 
programs or agencies. Concurrent submission of identical or similar 
projects to other possible sponsors will not prejudice the review or 
evaluation of a project under this program.
    (i) Appendix. Each project narrative is expected to be complete in 
itself and to meet the 20-page limitation. Inclusion of material in an 
Appendix should not be used to circumvent the 20-page limitation of the 
proposal narrative. However, in those instances where inclusion of 
supplemental information is necessary to guarantee the peer review 
panel's complete understanding of a proposal or to illustrate the 
integrity of the design or a main thesis of the proposal, such 
information may be included in an Appendix. Examples of supplemental 
material are photographs, journal reprints, brochures and other 
pertinent materials which are deemed to be illustrative of major points 
in the narrative but unsuitable for inclusion in the proposal narrative 
itself. Information on previously submitted proposals may also be 
presented in the Appendix (refer to Sec. 3405.11(d)). When possible, 
information in the Appendix should be presented in tabular format. A 
complete set of the Appendix material must be attached to each copy of 
the grant application submitted. The Appendix must be identified with 
the title of the project as it appears on Form CSREES-712 of the 
proposal and the name(s) of the project director(s). The Appendix must 
be referenced in the proposal narrative.

Subpart D--Submission of a Proposal


Sec. 3405.12  Intent to submit a proposal.

    To assist CSREES in preparing for the review of proposals, 
institutions planning to submit proposals may be requested to complete 
Form CSREES-711, ``Intent to Submit a Proposal,'' provided in the 
application package. CSREES will determine each year if Intent to 
Submit a Proposal forms will be requested and provide such information 
in the program announcement. If Intent to Submit a Proposal forms are 
required, one form should be completed and returned for each proposal 
an institution anticipates submitting. Submitting this form does not 
commit an institution to any course of action, nor does failure to send 
this form prohibit an institution from submitting a proposal.


Sec. 3405.13  When and where to submit a proposal.

    The program announcement will provide the deadline date for 
submitting a proposal, the number of copies of each proposal that must 
be submitted, and the address to which proposals must be submitted.

Subpart E--Proposal Review and Evaluation


Sec. 3405.14  Proposal review.

    The proposal evaluation process includes both internal staff review 
and merit evaluation by peer review panels comprised of scientists, 
educators, business representatives, and Government officials. Peer 
review panels will be selected and structured to provide optimum 
expertise and objective judgment in the evaluation of proposals.


Sec. 3405.15  Evaluation criteria.

    The maximum score a proposal can receive is 200 points. Unless 
otherwise stated in the annual solicitation published in the Federal 
Register, the peer review panel will consider the following criteria 
and weights to evaluate proposals submitted:

------------------------------------------------------------------------
              Evaluation Criterion                        Weight        
------------------------------------------------------------------------
(a) Potential for advancing the quality of                              
 education:                                                             
    This criterion is used to assess the                                
     likelihood that the project will have a                            
     substantial impact upon and advance the                            
     quality of food and agricultural sciences                          
     higher education by strengthening                                  
     institutional capacities through promoting                         
     education reform to meet clearly                                   
     delineated needs.                                                  
        (1) Impact--Does the project address a   20 points.             
         targeted need area(s)? Is the problem                          
         or opportunity clearly documented?                             
         Does the project address a State,                              
         regional, national, or international                           
         problem or opportunity? Will the                               
         benefits to be derived from the                                
         project transcend the applicant                                
         institution and/or the grant period?                           
         Is it probable that other institutions                         
         will adapt this project for their own                          
         use? Can the project serve as a model                          
         for others?                                                    
        (2) Continuation plans--Are there plans  10 points.             
         for continuation or expansion of the                           
         project beyond USDA support? Are there                         
         indications of external, non-Federal                           
         support? Are there realistic plans for                         
         making the project self-supporting?                            
        (3) Innovation--Are significant aspects  20 points.             
         of the project based on an innovative                          
         or a non-traditional approach toward                           
         solving a higher education problem or                          
         strengthening the quality of higher                            
         education in the food and agricultural                         
         sciences? If successful, is the                                
         project likely to lead to education                            
         reform?                                                        
        (4) Products and results--Are the        20 points.             
         expected products and results of the                           
         project clearly explained? Do they                             
         have the potential to strengthen food                          
         and agricultural sciences higher                               
         education? Are the products likely to                          
         be of high quality? Will the project                           
         contribute to a better understanding                           
         of or improvement in the quality,                              
         distribution, effectiveness, or                                
         racial, ethnic, or gender diversity of                         
         the Nation's food and agricultural                             
         scientific and professional expertise                          
         base?                                                          
(b) Overall approach and cooperative linkages:                          
    This criterion relates to the soundness of                          
     the proposed approach and the quality of                           
     the partnerships likely to evolve as a                             
     result of the project.                                             
        (1) Proposed approach--Do the            20 points.             
         objectives and plan of operation                               
         appear to be sound and appropriate                             
         relative to the targeted need area(s)                          
         and the impact anticipated? Are the                            
         procedures managerially,                                       
         educationally, and/or scientifically                           
         sound? Is the overall plan integrated                          
         with or does it expand upon other                              
         major efforts to improve the quality                           
         of food and agricultural sciences                              
         higher education? Does the timetable                           
         appear to be readily achievable?                               
        (2) Evaluation--Are the evaluation       10 points.             
         plans adequate and reasonable? Do they                         
         allow for continuous and/or frequent                           
         feedback during the life of the                                
         project? Are the individuals involved                          
         in project evaluation skilled in                               
         evaluation strategies and procedures?                          
         Can they provide an objective                                  
         evaluation? Do evaluation plans                                
         facilitate the measurement of project                          
         progress and outcomes?                                         
        (3) Dissemination--Does the proposed     10 points.             
         project include clearly outlined and                           
         realistic mechanisms that will lead to                         
         widespread dissemination of project                            
         results, including national electronic                         
         communication systems, publications,                           
         presentations at professional                                  
         conferences, and/or use by faculty                             
         development or research/teaching                               
         skills workshops                                               

[[Page 39325]]

                                                                        
        (4) Partnerships and collaborative       20 points.             
         efforts--Will the project expand                               
         partnership ventures among disciplines                         
         at a university, between colleges and                          
         universities, or with the private                              
         sector? Will the project lead to long-                         
         term relationships or cooperative                              
         partnerships that are likely to                                
         enhance program quality or supplement                          
         resources available to food and                                
         agricultural sciences higher                                   
         education?                                                     
(c) Institutional commitment and resources:                             
    This criterion relates to the institution's                         
     commitment to the project and the adequacy                         
     of institutional resources available to                            
     carry out the project.                                             
        (1) Institutional commitment--Is there   10 points.             
         evidence to substantiate that the                              
         institution attributes a high-priority                         
         to the project, that the project is                            
         linked to the achievement of the                               
         institution's long-term goals, that it                         
         will help satisfy the institution's                            
         high-priority objectives, or that the                          
         project is supported by the                                    
         institution's strategic plans?                                 
        (2) Institutional resources--Will the    10 points.             
         project have adequate support to carry                         
         out the proposed activities? Will the                          
         project have reasonable access to                              
         needed resources such as instructional                         
         instrumentation, facilities, computer                          
         services, library and other                                    
         instruction support resources?                                 
(d) Key personnel:                               20 points.             
    This criterion relates to the number and                            
     qualifications of the key persons who will                         
     carry out the project. Are designated                              
     project personnel qualified to carry out a                         
     successful project? Are there sufficient                           
     numbers of personnel associated with the                           
     project to achieve the stated objectives                           
     and the anticipated outcomes?                                      
(e) Budget and cost-effectiveness:                                      
    This criterion relates to the extent to                             
     which the total budget adequately supports                         
     the project and is cost-effective.                                 
        (1) Budget--Is the budget request        10 points.             
         justifiable? Are costs reasonable and                          
         necessary? Will the total budget be                            
         adequate to carry out project                                  
         activities? Are the source(s) and                              
         amount(s) of non-Federal matching                              
         support clearly identified and                                 
         appropriately documented? For a joint                          
         project proposal, is the shared budget                         
         explained clearly and in sufficient                            
         detail?                                                        
        (2) Cost-effectiveness--Is the proposed  10 points.             
         project cost-effective? Does it                                
         demonstrate a creative use of limited                          
         resources, maximize educational value                          
         per dollar of USDA support, achieve                            
         economies of scale, leverage                                   
         additional funds or have the potential                         
         to do so, focus expertise and activity                         
         on a targeted need area, or promote                            
         coalition building for current or                              
         future ventures?                                               
(f) Overall quality of proposal:                 10 points.             
    This criterion relates to the degree to                             
     which the proposal complies with the                               
     application guidelines and is of high                              
     quality. Is the proposal enhanced by its                           
     adherence to instructions (table of                                
     contents, organization, pagination, margin                         
     and font size, the 20-page limitation,                             
     appendices, etc.); accuracy of forms;                              
     clarity of budget narrative; well prepared                         
     vitae for all key personnel associated                             
     with the project; and presentation (are                            
     ideas effectively presented, clearly                               
     articulated, and thoroughly explained,                             
     etc.)?                                                             
------------------------------------------------------------------------

Subpart F--Supplementary Information


Sec. 3405.16  Access to peer review information.

    After final decisions have been announced, CSREES will, upon 
request, inform the project director of the reasons for its decision on 
a proposal. Verbatim copies of summary reviews, not including the 
identity of the peer reviewers, will be made available to respective 
project directors upon specific request.


Sec. 3405.17  Grant awards.

    (a) General. Within the limit of funds available for such purpose, 
the authorized departmental officer shall make project grants to those 
responsible, eligible applicants whose proposals are judged most 
meritorious in the announced targeted need areas under the evaluation 
criteria and procedures set forth in this part. The beginning of the 
project period shall be no later than September 30 of the Federal 
fiscal year in which the project is approved for support. All funds 
granted under this part shall be expended solely for the purpose for 
which the funds are granted in accordance with the approved application 
and budget, the regulations of this part, the terms and conditions of 
the award, the applicable Federal cost principles, and the Department's 
Uniform Administrative Requirements for Grants and Agreements With 
Institutions of Higher Education, Hospitals, and Other Non-Profit 
Organizations (7 CFR part 3019).
    (b) Organizational management information. Specific management 
information relating to a proposing institution shall be submitted on a 
one-time basis prior to the award of a project grant identified under 
this part if such information has not been provided previously under 
this or another program for which the sponsoring agency is responsible. 
Copies of the forms used to fulfill this requirement will be sent to 
the proposing institution by the sponsoring agency as part of the pre-
award process.
    (c) Notice of grant award. The grant award document shall include 
at a minimum the following:
    (1) Legal name and address of performing organization.
    (2) Title of project.
    (3) Name(s) and address(es) of project director(s).
    (4) Identifying grant number assigned by the Department.
    (5) Project period, which specifies how long the Department intends 
to support the effort without requiring reapplication for funds.
    (6) Total amount of Federal financial assistance approved during 
the project period.
    (7) Legal authority(ies) under which the grant is awarded.
    (8) Approved budget plan for categorizing allocable project funds 
to accomplish the stated purpose of the grant award.
    (9) Other information or provisions deemed necessary by the 
Department to carry out its granting activities or to accomplish the 
purpose of this particular project grant.
    (d) Obligation of the Federal Government. Neither the approval of 
any application nor the award of any project grant shall legally commit 
or obligate CSREES or the United States to provide further support of a 
project or any portion thereof.


Sec. 3405.18  Use of funds; changes.

    (a) Delegation of fiscal responsibility. The grantee may not in 
whole or in part delegate or transfer to another person, institution, 
or organization the responsibility for use or expenditure of grant 
funds.
    (b) Change in project plans. (1) The permissible changes by the 
grantee, project director(s), or other key project personnel in the 
approved project grant shall be limited to changes in methodology, 
techniques, or other aspects of the project to expedite

[[Page 39326]]

achievement of the project's approved goals. If the grantee or the 
project director(s) are uncertain as to whether a change complies with 
this provision, the question must be referred to the Department for a 
final determination.
    (2) Changes in approved goals, or objectives, shall be requested by 
the grantee and approved in writing by the authorized departmental 
officer prior to effecting such changes. In no event shall requests for 
such changes be approved that are outside the scope of the approved 
project.
    (3) Changes in approved project leadership or the replacement or 
reassignment of other key project personnel shall be requested by the 
grantee and approved in writing by the authorized departmental officer 
prior to effecting such changes.
    (4) Transfers of actual performance of the substantive programmatic 
work in whole or in part and provisions for payment of funds, whether 
or not Federal funds are involved, shall be requested by the grantee 
and approved in writing by the authorized departmental officer prior to 
effecting such transfers.
    (c) Changes in project period. The project period may be extended 
by the authorized departmental officer without additional financial 
support for such additional period(s) as the authorized departmental 
officer determines may be necessary to complete or fulfill the purposes 
of an approved project. However, due to statutory restriction, no grant 
may be extended beyond five years from the original start date of the 
grant, or pre-award date, if applicable. Grant extensions shall be 
conditioned upon prior request by the grantee and approval in writing 
by the authorized departmental officer, unless prescribed otherwise in 
the terms and conditions of a grant.
    (d) Changes in approved budget. Changes in an approved budget shall 
be requested by the grantee and approved in writing by the authorized 
departmental officer prior to instituting such changes if the revision 
will:
    (1) Involve transfers of amounts budgeted for indirect costs to 
absorb an increase in direct costs;
    (2) Involve transfers of amounts budgeted for direct costs to 
accommodate changes in indirect cost rates negotiated during a budget 
period and not approved when a grant was awarded; or
    (3) Involve transfers or expenditures of amounts requiring prior 
approval as set forth in the applicable Federal cost principles, 
Departmental regulations, or in the grant award.


Sec. 3405.19  Monitoring progress of funded projects.

    (a) During the tenure of a grant, project directors must attend at 
least one national project directors meeting, if offered, in 
Washington, DC or any other announced location. The purpose of the 
meeting will be to discuss project and grant management opportunities 
for collaborative efforts, future directions for education reform, and 
opportunities to enhance dissemination of exemplary end products/
results.
    (b) An Annual Performance Report must be submitted to the USDA 
program contact person within 90 days after the completion of the first 
year of the project and annually thereafter during the life of the 
grant. Generally, the Annual Performance Reports should include a 
summary of the overall progress toward project objectives, current 
problems or unusual developments, the next year's activities, and any 
other information that is pertinent to the ongoing project or which may 
be specified in the terms and conditions of the award.
    (c) A Final Performance Report must be submitted to the USDA 
program contact person within 90 days after the expiration date of the 
project. The expiration date is specified in the award documents and 
modifications thereto, if any. Generally, the Final Performance Report 
should be a summary of the completed project, including: A review of 
project objectives and accomplishments; a description of any products 
and outcomes resulting from the project; activities undertaken to 
disseminate products and outcomes; partnerships and collaborative 
ventures that resulted from the project; future initiatives that are 
planned as a result of the project; the impact of the project on the 
project director(s), the institution, and the food and agricultural 
sciences higher education system; and data on project personnel and 
beneficiaries. The Final Performance Report should be accompanied by 
samples or copies of any products or publications resulting from or 
developed by the project. The Final Performance Report must also 
contain any other information which may be specified in the terms and 
conditions of the award.


Sec. 3405.20  Other Federal statutes and regulations that apply.

    Several other Federal statutes and regulations apply to grant 
proposals considered for review and to project grants awarded under 
this part. These include but are not limited to:

    7 CFR Part 1, Subpart A--USDA implementation of Freedom of 
Information Act.
    7 CFR Part 3--USDA implementation of OMB Circular No. A-129 
regarding debt collection.
    7 CFR Part 15, Subpart A--USDA implementation of Title VI of the 
Civil Rights Act of 1964, as amended.
    7 CFR Part 3015--USDA Uniform Federal Assistance Regulations, 
implementing OMB directives (i.e., Circular Nos. A-21 and A-122) and 
incorporating provisions of 31 U.S.C. 6301-6308 (formerly the 
Federal Grant and Cooperative Agreement Act of 1977, Pub. L. 95-
224), as well as general policy requirements applicable to 
recipients of Departmental financial assistance.
    7 CFR Part 3017, as amended--Governmentwide Debarment and 
Suspension (Nonprocurement); Governmentwide Requirements for Drug-
Free Workplace (Grants), implementing Executive Order 12549 on 
debarment and suspension and the Drug-Free Workplace Act of 1988 (41 
U.S.C. 701).
    7 CFR Part 3018--Restrictions on Lobbying, prohibiting the use 
of appropriated funds to influence Congress or a Federal agency in 
connection with the making of any Federal grant and other Federal 
contracting and financial transactions.
    7 CFR Part 3019--USDA implementation of OMB Circular A-110, 
Uniform Administrative Requirements for Grants and Agreements With 
Institutions of Higher Education, Hospitals, and Other Nonprofit 
Organizations.
    7 CFR Part 3051--USDA implementation of OMB Circular No. A-133 
regarding audits of institutions of higher education and other 
nonprofit institutions.
    29 U.S.C. 794, section 504--Rehabilitation Act of 1973, and 7 
CFR part 15B (USDA implementation of statute), prohibiting 
discrimination based upon physical or mental handicap in Federally 
assisted programs.
    35 U.S.C. 200 et seq.--Bayh-Dole Act, controlling allocation of 
rights to inventions made by employees of small business firms and 
domestic nonprofit organizations, including universities, in 
Federally assisted programs (implementing regulations are contained 
in 37 CFR part 401).


Sec. 3405.21  Confidential aspects of proposals and awards.

    When a proposal results in a grant, it becomes a part of the record 
of the Agency's transactions, available to the public upon specific 
request. Information that the Secretary determines to be of a 
privileged nature will be held in confidence to the extent permitted by 
law. Therefore, any information that the applicant wishes to have 
considered as privileged should be clearly marked as such and sent in a 
separate statement, two copies of which should accompany the proposal. 
The original copy of a proposal that does not result in a grant will be 
retained by the Agency for a period of one year. Other copies will be 
destroyed. Such a proposal will be released only with the consent of 
the applicant or to the extent

[[Page 39327]]

required by law. A proposal may be withdrawn at any time prior to the 
final action thereon.


Sec. 3405.22  Evaluation of program.

    Grantees should be aware that CSREES may, as a part of its own 
program evaluation activities, carry out in-depth evaluations of 
assisted activities. Thus, grantees should be prepared to cooperate 
with CSREES personnel, or persons retained by CSREES, evaluating the 
institutional context and the impact of any supported project. Grantees 
may be asked to provide general information on any students and faculty 
supported, in whole or in part, by a grant awarded under this program; 
information that may be requested includes, but is not limited to, 
standardized academic achievement test scores, grade point average, 
academic standing, career patterns, age, race/ethnicity, gender, 
citizenship, and disability.

    Done at Washington, DC, this 10th day of July 1997.
B.H. Robinson,
Administrator, Cooperative State Research, Education, and Extension 
Service.
[FR Doc. 97-19027 Filed 7-21-97; 8:45 am]
BILLING CODE 3410-22-P