[Federal Register Volume 85, Number 219 (Thursday, November 12, 2020)]
[Rules and Regulations]
[Pages 71815-71817]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-24638]



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 Rules and Regulations
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  Federal Register / Vol. 85, No. 219 / Thursday, November 12, 2020 / 
Rules and Regulations  

[[Page 71815]]



NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

2 CFR Part 1800

[Document Number NASA-20-090; Docket Number NASA-2020-0006]
RIN 2700-AE61


Uniform Administrative Requirements, Cost Principles, and Audit 
Requirements for Federal Awards

AGENCY: National Aeronautics and Space Administration (NASA).

ACTION: Direct final rule.

-----------------------------------------------------------------------

SUMMARY: This direct final rule amends NASA's regulations on Uniform 
Administrative Requirements, Cost Principles, and Audit Requirements 
for Federal Awards, to align with the Office of Management and Budget's 
(OMB) recent amendments to its regulations on Grants and Agreements.

DATES: This direct final rule is effective on January 11, 2021 without 
further action, unless adverse comment is received by December 14, 
2020. If adverse comment is received, NASA will publish a timely 
withdrawal of the rule in the Federal Register.

ADDRESSES: Comments must be identified with RINs 2700-AE61 and may be 
sent to NASA via the Federal E-Rulemaking Portal: http://www.regulations.gov. Follow the online instructions for submitting 
comments. Please note that NASA will post all comments on the internet 
without changes, including any personal information provided.

FOR FURTHER INFORMATION CONTACT: Corey Walz, 202-940-6581, 
[email protected].

SUPPLEMENTARY INFORMATION: 

Direct Final Rule and Significant Adverse Comments

    NASA has determined this rulemaking meets the criteria for a direct 
final rule because it makes nonsubstantive changes to NASA's 
regulations on Uniform Administrative Requirements, Cost Principles, 
and Audit Requirements for Federal Awards to align with OMB's recent 
amendments to its regulations on Grants and Agreements. No opposition 
to the changes and no significant adverse comments are expected. 
However, if NASA receives significant adverse comments, it will 
withdraw this direct final rule by publishing a document in the Federal 
Register. A significant adverse comment is one that explains: (1) Why 
the direct final rule is inappropriate, including challenges to the 
rule's underlying premise or approach; or (2) why the direct final rule 
will be ineffective or unacceptable without a change. In determining 
whether a comment necessitates withdrawal of this direct final rule, 
NASA will consider whether it warrants a substantive response in a 
notice and comment process.

Background

    Title 2 CFR part 1800, last amended on May 9, 2019 [84 FR 20240], 
adopts OMB's guidance in subparts A through F of 2 CFR part 200 as 
NASA's policies and procedures for uniform administrative requirements, 
cost principles, and audit requirement for Federal awards. NASA is 
amending 2 CFR part 1800 to align with the OMB's recent amendments to 
its regulations on Grants and Agreements published on August 13, 2020, 
at 85 FR 49506, which will become effective on November 12, 2020.

Statutory Authority

    The National Aeronautics and Space Act (the Space Act), 51 U.S.C. 
20113(a), authorizes the Administrator of NASA to make, promulgate, 
issue, rescind, and amend rules and regulations governing the manner of 
its operations and the exercise of the powers vested in it by law.

Regulatory Analysis

Executive Order 12866, Regulatory Planning and Review and Executive 
Order 13563, Improving Regulation and Regulatory Review

    Executive Orders (E.O.) 13563 and 12866 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
This rule has been designated as ``not significant'' under section 3(f) 
of E.O. 12866.

Review Under the Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires an 
agency to prepare an initial regulatory flexibility analysis to be 
published at the time the proposed rule is published. This requirement 
does not apply if the agency ``certifies that the rule will not, if 
promulgated, have a significant economic impact on a substantial number 
of small entities'' (5 U.S.C. 603). This rule aligns NASA's regulations 
on uniform administrative requirements, cost principles, and audit 
requirement for Federal awards with OMB's recent amendments to its 
regulations on Grants and Agreements published on August 13, 2020, at 
85 FR 49506, which will become effective on November 12, 2020, and does 
not have a significant economic impact on a substantial number of small 
entities.

Review Under the Paperwork Reduction Act

    This direct final rule does not contain any information collection 
requirements subject to the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501 et seq.).

Review Under E.O. 13132

    E.O. 13132, ``Federalism,'' 64 FR 43255 (August 4, 1999) requires 
that regulations be reviewed for federalism effects on the 
institutional interest of states and local governments, and if the 
effects are sufficiently substantial, preparation of the Federal 
assessment is required to assist senior policy makers. These amendments 
will not have any substantial direct effects on state and local 
governments within the meaning of the E.O.. Therefore, no federalism 
assessment is required.

Executive Order 13771--Reducing Regulation and Controlling Regulatory 
Costs

    This rule is not an E.O. 13771 regulatory action because this rule 
is not significant under E.O. 12866.

[[Page 71816]]

Unfunded Mandates Reform Act of 1995

    This rule will not result in the expenditure by state, local, and 
tribal governments, in the aggregate, or by the private sector, of 
$100,000,000 or more in any one year, and it will not significantly or 
uniquely affect small governments.

List of subjects in 2 CFR Part 1800

    Grant programs, Grants administration.

    For reasons set forth in the preamble, NASA is amending 2 CFR part 
1800 as follows:

PART 1800--UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, 
AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS

0
1. The authority citation for part 1800 continues to read as follows:

    Authority:  51 U.S.C. 20113 (e), Pub. L. 97-258, 96 Stat. 1003 
(31 U.S.C. 6301 et seq.), and 2 CFR part 200.


0
2. Revise Sec.  1800.3 to read as follows:


Sec.  1800.3  Applicability.

    (a) This part establishes policies and procedures for grants and 
cooperative agreements awarded by NASA to non-Federal entities, for-
profit organization, foreign organizations, and foreign public entities 
as allowed by 2 CFR 200.101. For supplemental guidance, NASA has 
adopted section numbers that correspond to those in the OMB guidance in 
2 CFR part 200.
    (1) Non-Federal entities must follow the policies and procedures 
appearing in subparts A through F of 2 CFR part 200 and as supplemented 
by this part.
    (2) Foreign organizations and foreign public entities must follow 
the policies and procedures appearing in subparts A through E of 2 CFR 
part 200 and as supplemented by this part.
    (3) U.S. and foreign for-profit organizations must follow the 
policies and procedures appearing in subparts A through D of 2 CFR part 
200 and as supplemented by this part. The Federal Acquisition 
Regulation (FAR) at 48 CFR parts 30 and 31 take precedence over the 
cost principles in subpart E of 2 CFR part 200 for Federal awards to 
U.S. and foreign for-profit organizations.
    (b) Throughout this part, the term ``award'' refers to both 
``grant'' and ``cooperative agreement'' unless otherwise indicated.
    (c)(1) In general, research with foreign organizations will not be 
conducted through grants or cooperative agreements, but instead will be 
accomplished on a no-exchange-of-funds basis. In these cases, NASA 
enters into agreements undertaking projects of international scientific 
collaboration. NASA's policy on performing research with foreign 
organizations on a no-exchange-of-funds basis is set forth at NASA FAR 
Supplement (NFS) at 48 CFR 1835.016-70 and 1835.016-72. In rare 
instances, NASA may enter into an international agreement under which 
funds will be transferred to a foreign recipient.
    (2) Grants or cooperative agreements awarded to foreign 
organizations are made on an exceptional basis only. Awards require the 
prior approval of the Headquarters Office of International and 
Interagency Relations and the Headquarters Office of the General 
Counsel. Requests to issue awards to foreign organizations are to be 
coordinated through the Office of the Chief Financial Officer, Policy 
Division.

0
3. Revise Sec.  1800.5 to read as follows:


Sec.  1800.5  Publication.

    The official site for accessing the NASA grant and cooperative 
agreement policies, including notices, internal guidance, 
certifications, the NASA Grant and Cooperative Agreement Manual (GCAM), 
and other source information is on the internet at: https://prod.nais.nasa.gov/pub/pub_library/srba/index.html.

Subpart A--Acronyms and Definitions

0
4. Revise Sec.  1800.10 to read as follows:


Sec.  1800.10  Acronyms.

    The following acronyms supplement the acronyms set forth at 2 CFR 
200.0:

ACH Automated Clearing House
AO Announcement of Opportunity
CAN Cooperative Agreement Notice
CFR Code of Federal Regulations
CNSI Classified National Security Information
EPA Environmental Protection Agency
GCAM Grant and Cooperative Agreement Manual
HBCU Historically Black Colleges and Universities
LEP Limited English Proficiency
MSI Minority-serving Institutions
MYA Multiple Year Award
NASA National Aeronautics and Space Administration
NFS NASA FAR Supplement
NPR NASA Procedural Requirements
NRA NASA Research Announcement
NSPIRES NASA Solicitation and Proposal Integrated Review and Evaluation 
System
NSSC NASA Shared Services Center
OMB Office of Management and Budget
ONR Office of Naval Research
RPPR Research Performance Progress Report
STIP NASA Scientific and Technical Information Program

0
5. Revise Sec.  1800.11 to read as follows:


Sec.  1800.11  Definitions.

    The following definitions are a supplement to the definitions set 
forth at 2 CFR 200.1.
    Administrative Grant Officer means a Federal employee delegated 
responsibility for award administration; e.g., a NASA Grant Officer who 
has retained award administration responsibilities, or an Office of 
Naval Research (ONR) Grant Officer delegated award administration by a 
NASA Grant Officer.
    Effective date means the date work can begin under an awarded 
instrument. This date is the beginning of the period of performance and 
can be earlier or later than the date of signature on a basic award. 
Expenditures made prior to the effective date are incurred at the 
recipient's risk unless prior written permission has been given by the 
Grant Officer.
    For-profit organization means any corporation, trust, or other 
organization that is organized primarily for profit.
    Grant Officer means a Federal employee responsible for the signing 
of the Federal award documents.
    Historically Black Colleges and Universities (HBCUs) means 
institutions determined by the Secretary of Education to meet the 
requirements of 34 CFR 608.2 and listed therein.
    Minority-serving Institutions (MSIs) means an institution of higher 
education whose enrollment of a single minority or a combination of 
minorities (minority meaning American Indian, Alaskan Native, Black 
(not of Hispanic origin), Hispanic (including persons of Mexican, 
Puerto Rican, Cuban, and Central or South American origin), Pacific 
Islander or other ethnic group underrepresented in science and 
engineering) exceeds 50 percent of the total enrollment, as defined by 
the Higher Education Act (HEA) (20 U.S.C. 1067k(3)).
    NASA Technical Officer means the NASA official responsible for the 
programmatic, scientific, and/or technical aspects of assigned 
applications and awards.
    Original signature means an authorized signature as described in 
this definition. If the system (such as NSPIRES) used to submit 
required documents allows for electronic signatures, then the 
submission of the documents, by the authorized representative of the 
organization serves as the required original signature. If, however, a 
paper copy submission is

[[Page 71817]]

required, all documents submitted shall be appropriately signed in ink 
with an actual signature by the authorized representative of the 
organization.
    Prescription is defined as the written instructions, to the Grants 
Officer, for the application of terms and conditions.
    Research misconduct is defined in 14 CFR 1275.101. NASA policies 
and procedures regarding research misconduct are set forth in 14 CFR 
part 1275.
    Summary of research means a document summarizing the results of the 
entire project, which includes bibliographies, abstracts, and lists of 
other media in which the research was discussed.

Subpart B--Pre-Federal Award Requirements and Contents of Federal 
Awards


Sec. Sec.  1800.208, 1800.209, and 1800.210  [Redesignated as 
Sec. Sec.  1800.209, 1800.210, and 1800.211]

0
6. Redesignate Sec. Sec.  1800.208, 1800.209, and 1800.210 as 
Sec. Sec.  1800.209, 1800.210, 1800.211.

0
7. Revise newly redesignated Sec.  1800.209 to read as follows:


Sec.  1800.209  Certifications and representations.

    The certifications and representations for NASA may be found in 
Appendix C of the GCAM, at: https://prod.nais.nasa.gov/pub/pub_library/srba/index.html.

0
8. Revise newly reedesignated Sec.  1800.211 to read as follows:


Sec.  1800.211  Information contained in a Federal award.

    NASA waives the requirement for the inclusion of indirect cost 
rates on any notice of Federal award for for-profit organizations. The 
terms and conditions for NASA may be found in Appendix D of the GCAM 
at: https://prod.nais.nasa.gov/pub/pub_library/srba/index.html.

Subpart C--Post Federal Award Requirements

0
9. Revise Sec.  1800.305 to read as follows:


Sec.  1800.305  Federal payment.

    Payments under awards with for-profit organizations will be made 
based on incurred costs. Standard Form 425 is not required. For-profit 
organizations shall not submit invoices more frequently than quarterly. 
Payments to be made on a more frequent basis require the written 
approval of the Grant Officer.

0
10. Revise Sec.  1800.306 to read as follows:


Sec.  1800.306  Cost sharing or matching.

    In some cases, NASA research projects require cost sharing or 
matching. Where cost sharing or matching is required, recipients must 
secure and document matching funds to receive the Federal award.

0
11. Revise Sec.  1800.312 to read as follows:


Sec.  1800.312  Federally-owned and exempt property.

    Under the authority of the Chiles Act, 31 U.S.C. 6301 to 6308, NASA 
has decided to vest title to tangible personal property acquired with 
Federal funds in nonprofit institutions of higher education and 
nonprofit organizations whose primary purpose is conducting scientific 
research without further obligation to NASA, including reporting 
requirements. Award recipients that are not nonprofit institutions of 
higher education or nonprofit organizations whose primary purpose is 
conducting scientific research shall adhere to regulations at 2 CFR 
200.312 through 200.316.

0
12. Revise Sec.  1800.339 to read as follows:


Sec.  1800.339  Remedies for noncompliance.

    NASA reserves the ability to impose additional conditions in 
response to award recipient noncompliance and terminate a Federal award 
in accordance with 2 CFR 200.339 through 200.343 and as set forth in 
the GCAM.

0
13. Revise Sec.  1800.400 to read as follows:


Sec.  1800.400  Policy guide.

    Payment of fee or profit is consistent with an activity whose 
principal purpose is the acquisition of goods and services for the 
direct benefit or use of the United States Government, rather than an 
activity whose principal purpose is Federal financial assistance to a 
recipient to carry out a public purpose. Therefore, the Grants Officer 
shall use a procurement contract, rather than a grant or cooperative 
agreement, in all cases where fee or profit is to be paid to the 
recipient of the instrument or the instrument is to be used to carry 
out a program where fee or profit is necessary to achieving program 
objectives. Grants and cooperative agreements shall not provide for the 
payment of any fee or profit to the recipient.

Nanette Smith,
Team Lead, NASA Directives and Regulations.
[FR Doc. 2020-24638 Filed 11-10-20; 8:45 am]
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