[Federal Register Volume 68, Number 58 (Wednesday, March 26, 2003)]
[Rules and Regulations]
[Pages 14535-14536]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-7086]



[[Page 14535]]

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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

14 CFR Parts 1260 and 1274

RIN 2700-AC53


NASA Grant and Cooperative Agreement Handbook--Approvals and 
Reviews

AGENCY: National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: This final rule revises the NASA Grant and Cooperative 
Agreement Handbook by establishing a requirement for the prior approval 
of the Assistant Administrator for Procurement for the award of all 
grants and cooperative agreements that will exceed both $5 million and 
5 years. This final rule also clarifies the requirement to obtain new 
proposals, certifications, and technical evaluations for the renewal of 
cooperative agreements with commercial firms consistent with the 
current requirement for agreements with nonprofits and educational 
institutions. This final rule results from NASA's plans for reviews and 
recompetitions of contracts and partnerships identified in inventories 
submitted as a result of an agreement entered into with OMB on an 
action plan regarding the President's Management Agenda Competitive 
Sourcing element. These changes will establish greater consistency in 
the approval requirements for contracts, grants, and cooperative 
agreements with anticipated periods of performance exceeding 5 years, 
and the procedures used for renewals of grants and cooperative 
agreements with nonprofits and educational institutions and cooperative 
agreements with commercial firms.

EFFECTIVE DATE: March 26, 2003.

FOR FURTHER INFORMATION CONTACT: Joseph Le Cren, NASA, Headquarters, 
Office of Procurement, Contract Management Division (Code HK), 
Washington, DC 20546-0001, (202) 358-0431, e-mail: 
[email protected].

SUPPLEMENTARY INFORMATION:

A. Background

    OMB and NASA entered into an agreement on an action plan regarding 
the President's Management Agenda Competitive Sourcing element. That 
agreement called for NASA to put in place plans for reviews and 
recompetitions of contracts and partnerships identified in inventories 
submitted to OMB in September 2002. NASA's partnerships are primarily 
established through grants and cooperative agreements with nonprofit 
organizations, educational institutions, and commercial firms. In 
developing NASA's plan for reviews and recompetitions, existing 
guidance pertaining to grants and cooperative agreements was reviewed 
and areas requiring revision or coverage were identified.
    Contracts that are planned to exceed 5 years, inclusive of options, 
generally require the prior approval of the Assistant Administrator for 
Procurement. Grants and cooperative agreements are generally limited to 
3 years; however, it is not a firm limit as is the case for contracts. 
This final rule establishes a similar requirement for grants and 
cooperative agreements that have a significant dollar value.
    NASA grants and cooperative agreements with nonprofit organizations 
and educational institutions currently have a requirement for new 
proposals, certifications, and technical evaluations for renewals. 
Renewals provide for continuation of research beyond the original 
scope, period of performance, and funding levels. While the same 
requirements are understood to apply to renewals of cooperative 
agreements with commercial firms, they have not been explicitly stated. 
This final rule eliminates any possible ambiguity by specifying the 
requirement to obtain new proposals, certifications, and technical 
evaluations for renewals of cooperative agreements with commercial 
firms. This will ensure that consistent treatment is provided for these 
awards as is done for grants and cooperative agreements with nonprofits 
and educational institutions.
    This is not a significant regulatory action and, therefore, was not 
subject to review under Section 6(b) of Executive Order 12866, 
Regulatory Planning and Review, dated September 30, 1993. This final 
rule is not a major rule under 5 U.S.C. 804.

B. Regulatory Flexibility Act

    NASA certifies that this final rule 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 it 
only makes changes to internal approval requirements, clarifies 
existing requirements, and does not impose any new requirements on 
contractors.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because this final rule 
does not impose any recordkeeping or information collection 
requirements 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 Parts 1260 and 1274

    Grant Programs--Science and Technology.

Tom Luedtke,
Assistant Administrator for Procurement.


    Accordingly, 14 CFR Parts 1260 and 1274 are 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), Pub. L. 97-258, 96 Stat. 1003 
(31 U.S.C. 6301 et seq.), and OMB Circular A-110.


    2. In 1260.13, add the following after the last sentence of 
paragraph (a)(2) to read as follows:


Sec.  1260.13  Award procedures.

    (a)(1) * * *
    (2) * * *. However, grants that will exceed $5 million and have a 
period of performance in excess of 5 years shall require the approval 
of the Assistant Administrator for Procurement (Code HS) prior to 
award. Requests for approval shall include a justification for 
exceeding 5 years and evidence that the extended years can be 
reasonably estimated. Requests for approval are not required when the 
5-year limitation is exceeded due to a no cost extension.
* * * * *

PART 1274--COOPERATIVE AGREEMENTS WITH COMMERCIAL FIRMS

    3. The authority citation for Part 1274 continues to read as 
follows:

    Authority: 31 U.S.C. 6301 to 6308; 42 U.S.C. 2451 et seq.


    4. Amend Sec.  1274.207 by redesignating paragraph (b) as paragraph 
(d), and adding new paragraphs (b) and (c) to read as follows:


Sec.  1274.207  Extended agreements.

* * * * *
    (b) Cooperative agreements that will exceed $5 million and have a 
period of performance in excess of 5 years shall require the approval 
of the Assistant Administrator for Procurement prior to award. Requests 
for approval shall include a justification for exceeding 5 years and 
evidence that the extended years can be reasonably priced. Requests for 
approval are not required when the 5-year limitation is exceeded due to 
a no cost extension.

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    (c) Cooperative agreement renewals provide for the continuation of 
research beyond the original scope, period of performance and funding 
levels; therefore, new proposals, certifications, and technical 
evaluations are required prior to the execution of a cooperative 
agreement renewal. Renewals will be awarded as new cooperative 
agreements. Continued performance within a period specified under a 
multiple year cooperative agreement provision does not constitute a 
renewal.
* * * * *
[FR Doc. 03-7086 Filed 3-25-03; 8:45 am]
BILLING CODE 7510-01-P