[Federal Register Volume 66, Number 190 (Monday, October 1, 2001)]
[Rules and Regulations]
[Pages 49827-49829]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-24514]


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DEPARTMENT OF COMMERCE

15 CFR Part 14

[Docket No. 980422101-1224-03]
RIN 0605-AA09


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

AGENCY: Chief Financial Officer and Assistant Secretary for 
Administration, Department of Commerce (DoC).

ACTION: Final rule.

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SUMMARY: This final rule amends the DoC interim final rule on grants 
administration which implements Office of Management and Budget (OMB) 
Circular A-110. This final rule allows recipients to transfer funds 
among direct cost categories for awards in which the Federal share of 
the project is $100,000 or less. Also, this rule makes a correction to 
the language concerning disclosure requirements under the Byrd Anti-
Lobbying Amendment and it updates language and provisions as a result 
of changes to law.

EFFECTIVE DATE: This final rule is effective October 1, 2001.

FOR FURTHER INFORMATION CONTACT: Elizabeth L. Dorfman, Office of 
Executive Assistance Management, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, N.W., Room HCHB 6022, Washington, DC 
20230, 202-482-4115, e-mail: [email protected].

SUPPLEMENTARY INFORMATION: On September 4, 1998, DoC published an 
interim final rule (63 FR 47155) adopting the provisions of the Office 
of Management and Budget Circular A-110, ``Uniform Administrative 
Requirements for Grants and Cooperative Agreements With Institutions of 
Higher Education, Hospitals, and Other Non-Profit Organizations.'' 
Changes made by the interim final rule were not intended to deviate 
from the substance of Circular A-110. However, the interim final rule 
made minor changes to update the procedures, clarify the language, and 
make the language apply specifically to

[[Page 49828]]

DoC and its operating units. The interim final rule is codified at 15 
CFR part 14.
    This rule amends the interim final rule to incorporate a change 
requested through public notice and comment. This final rule is not 
subject to the rulemaking requirements of 5 U.S.C. 553 because it 
relates to public property, loans, grants, benefits, and contracts, 5 
U.S.C. 553(c)(2), including the provision of prior notice and an 
opportunity for public comment and delayed effective date. No other law 
requires that notice and opportunity for comment be given for this 
rule. However, given the nature of OMB Circular A-110 as a common rule, 
the DoC accepted comments from interested parties in an effort to 
ensure consistency.
    DoC received comments from five colleges and universities 
concerning the DoC requirement for prior approval on any rebudgeting 
request that exceeds 10 percent of program costs for all awards, 
including those awards of $100,000 or less. Each of the institutions 
objected to the provision that recipients may not transfer funds among 
direct cost categories or programs, functions and activities for awards 
in which the cumulative amount of such transfers exceeds or is expected 
to exceed 10 percent of the total budget as last approved. All comments 
received were considered in developing these final amendments.
    As stipulated at 15 CFR 14.25(f), the DoC interim final rule 
requires prior approval on budget revisions exceeding 10 percent for 
all awards regardless of the amount of Federal funding. DoC continues 
to take steps toward improving its program delivery, policies and 
procedures, and to be more responsive to those whom it serves. This 
final rule revises 15 CFR 14.25(f) to require prior approval for awards 
in which the Federal share of the project exceeds $100,000. In 
addition, the final rule makes clear that the 10 percent threshold 
applies to the total Federal and non-Federal funds authorized by the 
Grants Officer at the time of the transfer request. This is the 
accumulated amount of Federal funding obligated by the Grants Officer 
along with any approved non-Federal share.
    In addition to making changes requested by the public, this final 
rule updates language and provisions. The phrase ``small purchase 
threshold'' is changed to ``simplified acquisition threshold'' 
throughout the document in order to be consistent with section 4(11) of 
the Office of Federal Procurement Policy Act, 41 U.S.C. 403(11), as 
amended by section 4001 of the Federal Acquisition Streamlining Act of 
1994, Public Law 103-355. In addition, Appendix A is updated in 
accordance with the Federal Acquisition Streamlining Act of 1994, 
Public Law 103-355, which raised the threshold to $100,000 for the 
requirement to include the provision for compliance with sections 102 
and 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 
327-333). Finally, Appendix A is corrected to reflect that the 
disclosure requirements under the Byrd Anti-Lobbying Amendment, 31 
U.S.C. 1352, apply to organizations that apply or bid for an award 
exceeding $100,000 (not $100,000 or more).

Executive Order 12866

    This notice has been determined to be ``not significant'' for 
purposes of Executive Order 12866, ``Regulatory Planning and Review.''

Regulatory Flexibility Act

    Because notice and comment are not required under 5 U.S.C. 553 or 
any other law for this rule relating to public property, loans, grants 
benefits or contracts (5 U.S.C. 553(a)), a Regulatory Flexibility 
Analysis is not required and has not been prepared.

Executive Order 13132 (Federalism)

    It has been determined that this notice does not contain policies 
with Federalism implications as that term is defined in Executive Order 
13132.

Paperwork Reduction Act

    This rule does not impose any new reporting or recordkeeping 
requirements under the Paperwork Reduction Act. Reporting and 
recordkeeping requirements in 15 CFR Part 14 are those required by OMB 
Circular A-110 and have already been cleared by OMB.

Catalog of Federal Domestic Assistance

    This rule affects all of the grant and cooperative agreement 
programs with institutions of higher education, hospitals, other 
non-profit, and commercial organizations administered by DoC.

List of Subjects in 15 CFR Part 14

    Accounting, Administrative practice and procedure, Colleges and 
universities, Grants administration, Grant programs--economic 
development, Grant programs--oceans and atmosphere, Grant programs--
minority businesses, Grant programs--technology, Grant programs--
telecommunications, Grant programs--international, Hospitals, Nonprofit 
organizations, Reporting and recordkeeping requirements.

    Approved: September 26, 2001.
Robert F. Kugelman,
Director, Office of Executive Budgeting and Assistance Management, 
Department of Commerce.

    Accordingly, the interim final rule adding Part 14 of Title 15 of 
the Code of Federal Regulations, which was published at 63 FR 47155 on 
September 4, 1998, is adopted as final, with the following changes:

PART 14--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND 
AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, OTHER 
NON-PROFIT, AND COMMERCIAL ORGANIZATIONS

    1. The authority citation for part 14 continues to read as follows:

    Authority: 5 U.S.C. 301; OMB Circular A-110 (64 FR 54926, 
October 8, 1999).

    2. Part 14 is amended by removing the phrase ``small purchase 
threshold'' and adding ``simplified acquisition threshold'' in its 
place wherever it occurs.

    3. Section 14.25 is amended by revising paragraph (f) to read as 
follows:


Sec. 14.25  Revision of budget and program plans.

* * * * *
    (f) The recipient may not transfer funds among direct cost 
categories or programs, functions and activities for awards in which 
the Federal 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 Federal and non-Federal funds authorized by the Grants 
Officer. This does not prohibit the recipient from requesting Grants 
Officer approval for revisions to the budget. No transfers are 
permitted 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.
* * * * *

    4. Appendix A to part 14 is amended by revising paragraphs 4 and 7 
to read as follows:

Appendix A to Part 14--Contract Provisions

* * * * *
    4. Contract Work Hours and Safety Standards Act (40 U.S.C. 327-
333)--Where applicable, all contracts awarded by recipients 
exceeding $100,000 for construction contracts and 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

[[Page 49829]]

Department of Labor regulations (29 CFR Part 5). Under Section 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.
* * * * *
    7. Byrd Anti-Lobbying Amendment (31 U.S.C. 1352)--Contractors 
who apply or bid for an award exceeding $100,000 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.
* * * * *

[FR Doc. 01-24514 Filed 9-28-01; 8:45 am]
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