[Federal Register Volume 67, Number 88 (Tuesday, May 7, 2002)]
[Rules and Regulations]
[Pages 30544-30545]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-11167]


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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

14 CFR Part 1260

RIN 2700-AC51


NASA Grant and Cooperative Agreement Handbook--Limitations on 
Incremental Funding and Deobligations on Grants, and Elimination of 
Delegation of Closeout of Grants and Cooperative Agreements to Office 
of Naval Research

AGENCY: National Aeronautics and Space Administration.

ACTION: Final rule.

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SUMMARY: This final rule amends the NASA Grant and Cooperative 
Agreement Handbook to revise the threshold for incrementally funding 
grants and to establish dollar thresholds for incremental funding and 
funding deobligation actions under grants. These changes will further 
limit the number of grants eligible to be incrementally funded and the 
number of incremental funding and funding deobligation actions. 
Additionally, this final rule eliminates the possibility of delegating 
closeout of grants and cooperative agreements to the Office of Naval 
Research (ONR). That function will be retained by NASA.

EFFECTIVE DATE: May 7, 2002.

FOR FURTHER INFORMATION CONTACT: Rita Svarcas, NASA Headquarters, Code 
HC, Washington, DC, (202) 358-0464,
e-mail: [email protected].

SUPPLEMENTARY INFORMATION:   

A. Background

    Currently, the Grant and Cooperative Agreement Handbook limits the 
incremental funding of grants. In spite of these restrictions, numerous 
incremental funding actions are being issued against grants. The high 
number of actions creates a workload burden for finance and procurement 
personnel in the Agency. This final rule further restricts the number 
of grants that can be incrementally funded by revising the dollar 
threshold that a grant must meet in order for it to be incrementally 
funded. An anticipated annual funding threshold of at least $100,000 is 
now specified in order for a grant to be incrementally funded. It also 
establishes a minimum dollar threshold of $25,000 that certain 
incremental funding and funding deobligation actions must meet.
    Currently, section 1260.70 of the Grant and Cooperative Agreement 
Handbook states that NASA Centers will delegate both property 
administration and closeout of grants and cooperative agreements to 
ONR. Section 1260.77 discusses ONR tasks within the NASA closeout 
procedures, including certification that all required reports have been 
received and approved by the NASA technical officer. Both NASA and ONR 
were obtaining certifications. As a result, Grant Information Circular 
(GIC) 01-02 was issued on August 2, 2001. GIC 01-02 changed NASA's 
closeout policy by eliminating that specific closeout function from 
ONR's responsibilities. With the issuance of GIC 01-02, NASA Centers 
have started the process of bringing in-house the closeout function for 
grants and cooperative agreements. Eliminating the possibility of 
Centers delegating the closeout function to ONR assures that the 
duplication of effort (NASA and ONR) will end.

B. Regulatory Flexibility Act

    NASA certifies that this final rule will not have a significant 
economic impact on a substantial number of small entities within the 
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601 et seq. because 
the changes primarily affect internal procedures which will merely 
result in fewer, but larger dollar value, funding actions on grants.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because this rule does 
not impose any new recordkeeping or information collection 
requirements, or collection of information from offerors, contractors, 
or members of the public that require the approval of the Office of 
Management and Budget under 44 U.S.C. 3501, et. seq.

List of Subjects in 14 CFR Part 1260

    Grant programs--science and technology.

Tom Luedtke,
Assistant Administrator for Procurement.
    Accordingly, 14 CFR part 1260 is amended as follows:

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

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

PART 1260--GRANTS AND COOPERATIVE AGREEMENT

    2. In Sec. 1260.11, revise paragraph (h) introductory text and add 
paragraphs (h)(3) and (h)(4) to read as follows:


Sec. 1260.11  Evaluation and selection.

* * * * *
    (h) NASA reserves the right to either fully fund or incrementally 
fund grants based on fiscal law and program considerations. Grants with 
anticipated annual funding exceeding $100,000 may be funded for less 
than the amount stated in the proposal. On an exception basis, and with 
the concurrence of the installation comptroller, the procurement 
officer may allow individual grants with anticipated annual funding 
between $50,000 and $100,000 to be funded for less than the amount 
stated in the proposal. The procurement officer shall maintain a record 
of all such approvals during the fiscal year.
* * * * *
    (3) Unless the action is necessary to fully fund a grant, 
incremental funding actions totaling less than $25,000 shall not be 
issued.
    (4) Unless the action is necessary to close out a grant or to make 
a corrective accounting adjustment, funding actions to deobligate funds 
totaling less than $25,000 shall not be issued.
* * * * *
    3. In Sec. 1260.70, amend paragraph (a) introductory text, 
paragraphs (a)(3) and (a)(4), and paragraph (b) to read as follows:


Sec. 1260.70  Delegation of administration.

    (a) In most cases, property administration of NASA grants and 
cooperative agreements will be delegated to the Office of Naval

[[Page 30545]]

Research (ONR). Other administration duties may be assigned as listed 
on NF 1674. Exceptions to this policy are:
* * * * *
    (3) Grant officers may waive specific administration requirements 
(as listed on NF 1674) in exceptional circumstances for individual 
grants. Exceptions to administration duties that are normally delegated 
must be justified and approved in writing by the Grant Officer, and 
made part of the file.
    (4) Waiver of delegation of property administration duties that are 
to be instituted by a center as a standard practice constitutes a 
deviation to this handbook, and requires approval in accordance with 
Sec. 1260.7.
    (b) Grant and cooperative agreement administration delegations will 
be made by use of NF 1674 (Exhibit F to subpart A of this part 1260). 
When administration duties have been assigned to ONR, the NF 1674, the 
award document, and the approved budget will be sent to ONR in a single 
package (electronically, when possible).
* * * * *
    4. In Sec. 1260.77, revise paragraphs (b), (c), (d) introductory 
text and (d)(1) through (3) to read as follows:


Sec. 1260.77  Closeout procedures.

* * * * *
    (b) Those who are designated to receive NASA reports (except for 
CASI, which only acknowledges receipt) must provide certification to 
the NASA grant officer that the reports have been received and 
satisfactorily completed. Electronic certifications are acceptable. See 
Secs. 1260.75 and 1260.171(a). The property certification should 
indicate that disposal of any remaining Government property has been 
made as directed and that NASA has been compensated for any residual 
inventory.
    (c) When ONR has been delegated grant and cooperative agreement 
administration duties as listed on the NF 1674, and has completed its 
actions, the NASA grant officer is to receive from ONR all of the 
following:
    (1) For notification of the completion of property administration 
duties, a DD Form 1593 Contract Administration Completion Record (or 
equivalent electronic notification), without supporting or backup 
documents, indicating property administration is complete.
    (2) For other administration duties, an electronic notification 
confirming that all assigned administration duties have been completed 
is sufficient. Although a DD Form 1594 is not required, ONR may use 
this form if they choose.
    (d) A grant is administratively complete and ready for closeout by 
NASA when:
    (1) Property disposition has been completed.
    (2) The grant officer has obtained from the NASA technical officer 
certifications that all reports have been received.
    (3) When administration duties have been delegated to ONR, an 
electronic notification confirming the completion of all assigned 
administration duties has been received. Although not required, a DD 
Form 1594 may be used by ONR in lieu of the electronic notification.
* * * * *
[FR Doc. 02-11167 Filed 5-6- 8:45am]
BILLING CODE 7510-01-P