[Federal Register Volume 63, Number 249 (Tuesday, December 29, 1998)]
[Proposed Rules]
[Page 71609]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-34317]


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 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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  Federal Register / Vol. 63, No. 249 / Tuesday, December 29, 1998 / 
Proposed Rules  

[[Page 71609]]


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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

14 CFR Part 1260


Miscellaneous Revisions to the NASA Grant and Cooperative 
Agreement Handbook, Section A, Management Fee

AGENCY: National Aeronautics and Space Administration (NASA).

ACTION: Proposed rule.

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SUMMARY: This is a proposed rule to revise the NASA Grant and 
Cooperative Agreement Handbook to specify that for all awards of new 
grants and cooperative agreements and modifications of existing grants 
and cooperative agreements, management fee shall not be permitted.

EFFECTIVE DATE: Comments should be submitted on or before March 1, 
1999.

ADDRESSES: Interested parties should submit written comments to Steve 
Miley, NASA Headquarters, Office of Procurement, Analysis Division 
(Code HC), Washington, DC 20546. Comments may also be submitted by e-
mail to [email protected].

FOR FURTHER INFORMATION CONTACT: Steve Miley, (202) 358-0493.

SUPPLEMENTARY INFORMATION:

Background

    A September 30, 1998, NASA Office of Inspector General (OIG) report 
questioned NASA's practice of awarding management fee on certain 
cooperative agreements. Management fee has been provided on less than 1 
percent of NASA grants and cooperative agreements. For all types of 
funding instruments, the recipient of Federal funds is entitled to be 
reimbursed only those costs which are allowable under the cost 
principles that are applicable to the particular recipient. Therefore, 
management fee is not appropriate to the extent that it includes 
unallowable costs.

Impact

    NASA certifies that this regulation will not have a significant 
economic impact on a substantial number of small business entities 
under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) because 
currently less than 1percent of recipients of NASA grants and 
cooperative agreements have received management fee. The proposed rule 
does not impose any reporting or recordkeeping requirements subject to 
the Paperwork Reduction Act.

List of Subjects in 14 CFR Part 1260

    Grants programs--science and technology.
Tom Luedtke,
Acting Associate Administrator for Procurement.

    Accordingly, 14 CFR Part 1260 is proposed to be amended as follows:

PART 1260--GRANTS AND COOPERATIVE AGREEMENTS

    1. The authority citation for 14 CFR Part 1260 continues to read as 
follows:

    Authority: 42 U.S.C. 2473(c)(1).

    2. In Sec. 1260.10, paragraph (b)(1)(iv) is added to read as 
follows:


Sec. 1260.10   Proposals.

* * * * *
    (b) * * *
    (1) * * *
    (iv) Management fee. Recipients of grants and cooperative 
agreements are entitled to be reimbursed only those costs which are 
allowable according to applicable cost principles (see Sec. 1260.127). 
Accordingly, for new awards or modifications of grants and cooperative 
agreements, management fee shall not be paid.
* * * * *
[FR Doc. 98-34317 Filed 12-28-98; 8:45 am]
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