[Federal Register Volume 68, Number 101 (Tuesday, May 27, 2003)]
[Rules and Regulations]
[Pages 28708-28709]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-13161]


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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

14 CFR Part 1260

RIN 2700-AC53


NASA Grant and Cooperative Agreement Handbook--Incremental 
Funding

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 by revising the conditions and restrictions for use 
of incremental funding. The revisions in this area are necessary to 
increase flexibility while retaining appropriate controls over the 
number and size of incremental funding actions. The final rule also 
removes duplicative reference to property standards from the Buy 
American Encouragement provision; updates the grant and cooperative 
agreement identification numbering scheme used by NASA; and corrects a 
summary list of provisions. These changes will ensure the appropriate 
use of incremental funding of grants, eliminate an unnecessary cross-
reference within a provision, and make other internal administrative 
and technical changes.

EFFECTIVE DATE: May 27, 2003.

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

SUPPLEMENTARY INFORMATION:

A. Background

    This change amends and clarifies the circumstances under which 
grants and cooperative agreements can be incrementally funded. A 
previous change in this area was intended to minimize the number of 
incremental funding actions issued under NASA grants and cooperative 
agreements in order to increase internal efficiency and decrease the 
associated workload for grantees. However, the unintended consequences 
of the change were that the NASA Centers were constrained from awarding 
and funding lower-dollar-value instruments, especially during the 
latter part of the Government Fiscal Year and during continuing 
resolution periods. This regulation has been identified, through a 
``Freedom to Manage'' suggestion, as a barrier that gets in the way of 
NASA's efficiency and effectiveness. This final rule is intended to 
correct the situation by allowing the NASA Centers to incrementally 
fund grants and cooperative agreements more often, including those with 
a lower dollar value and those that require funding during continuing 
resolution periods. This final rule retains an adequate level of 
control over such actions by setting dollar thresholds and establishing 
local waiver authority for potential exceptions. Additionally, NASA is 
in the process of implementing a new Agency-wide Integrated Financial 
Management System. This implementation requires a minor change

[[Page 28709]]

to the number of digits and sequence of characters used in the grant 
and cooperative agreement identification number. Lastly, when the 
provision at 1260.39, Buy American Encouragement, was added in July 
2002, it unnecessarily included a duplicative reference to property 
standards; and it incorrectly changed the listing of provisions to be 
included in research grants, education grants, and cooperative 
agreements with U.S. educational institutions and non-profit 
organizations in section 1260.20, Provisions. This final rule makes the 
necessary internal administrative changes for incremental funding and 
grant numbering; removes a duplicative reference in a provision; and 
corrects the list of applicable provisions.

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 modify existing internal operational 
practices.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because this final 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.

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Accordingly, 14 CFR part 1260 is amended as follows:

0
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.

PART 1260--GRANTS AND COOPERATIVE AGREEMENT

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2. Amend section 1260.11 by revising paragraph (h) 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. Incremental 
funding of grants and cooperative agreements shall conform to the 
following procedure:
    (1) When the period of performance for a grant crosses Government 
Fiscal Years, the grant will usually be incrementally funded, using 
appropriations from different Government Fiscal Years. In other 
circumstances, incremental funding may be appropriate. The special 
condition at Sec.  1260.53, Incremental Funding, will be included in 
any grant that is incrementally funded. The grant officer will 
determine the number of incremental funding actions that will be 
allowed.
    (2) Specific limitations on incremental funding are as follows:
    (i) Grants that are funded using appropriations from different 
Government Fiscal Years should provide funding from the prior fiscal 
year that carries at least one month into the subsequent fiscal year in 
order to facilitate transition of the grant to the subsequent fiscal 
year's funding cycle.
    (ii) Only those grants whose anticipated funding exceeds $100,000 
of appropriations from a single Government Fiscal Year may be 
incrementally funded within that fiscal year's appropriations.
    (iii) Incremental funding actions to obligate or deobligate funds 
shall not total less than $25,000 unless the action is necessary to 
comply with the requirement to use appropriations from different 
Government Fiscal Years, to fully fund a grant, to close out a grant, 
or to make a corrective accounting adjustment.
    (3) On an exception basis, and with the concurrence of the 
installation Chief Financial Officer (CFO) or Deputy CFO for Resources, 
the procurement officer may waive the restrictions set forth in 
paragraphs (h)(2)(i) through (h)(2)(iii) of this section for individual 
funding actions on individual grants. The procurement officer shall 
maintain a record of all such approvals during the fiscal year.
    (4) The restrictions set forth in paragraphs (h)(2)(i) through 
(h)(2)(iii) of this section are not applicable during the period of a 
continuing resolution. During such a period, NASA will nonetheless 
endeavor to fund individual grants using reasonably sized increments.
* * * * *


Sec.  1260.15  [Amended]

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3. Section 1260.15 is amended as follows:

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a. In the introductory text of paragraph (c), remove the words ``prior 
to Integrated Financial Management Project (IFMP) implementation'';
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b. In paragraph (c)(1), remove ``NAG5'' and add ``NAG5-'' in its place; 
and
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c. Remove paragraph (d).

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4. Amend Section 1260.20 by revising paragraph (a); and in the first 
sentence of paragraph (d) remove ``1260.39'' and add ``1260.38'' in its 
place.
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Revised paragraph (a) reads as follows:


Sec.  1260.20  Provisions.

    (a) Research grants, education grants, training grants, and 
cooperative agreements with U.S. educational institutions and nonprofit 
organizations shall incorporate by reference the provisions set forth 
in Sec. Sec.  1260.21 through 1260.39. For training grants, the grant 
officer shall substitute Sec.  1260.22, Technical Publications and 
Reports, with reporting requirements as specified by the program 
office.
* * * * *


Sec.  1260.39  [Amended]

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5. Amend section 1260.39 by revising the date of the provision to read 
``May 2003''; removing the paragraph designation paragraph ``(a)''; and 
removing paragraph (b).

[FR Doc. 03-13161 Filed 5-23-03; 8:45 am]
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