[Federal Register Volume 89, Number 180 (Tuesday, September 17, 2024)]
[Rules and Regulations]
[Pages 75947-75948]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-21005]



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 Rules and Regulations
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 This section of the FEDERAL REGISTER contains regulatory documents 
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  Federal Register / Vol. 89 , No. 180 / Tuesday, September 17, 2024 / 
Rules and Regulations  

[[Page 75947]]



NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

2 CFR Part 1800

RIN 2700-AE77
[NASA Document No: NASA-24-060; NASA-2024-0010]


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

AGENCY: National Aeronautics and Space Administration.

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) April 2024 revisions to its guidance on grants and cooperative 
agreements, now titled ``OMB Guidance for Federal Financial 
Assistance.''

DATES: This direct final rule is effective October 1, 2024, without 
further action, unless adverse comment is received by October 17, 2024. 
If adverse comment is received, NASA will publish a timely withdrawal 
of the rule in the Federal Register.

ADDRESSES: Submit comments identified by RIN 2700-AE77, using the 
following methods:
     Regulations.gov: https://www.regulations.gov. Submit 
comments via the Federal eRulemaking portal by following 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: Laila Ouhamou, [email protected], 
telephone 202-358-9742.

SUPPLEMENTARY INFORMATION:

I. Background

    On April 22, 2024, OMB issued a final rule revising the Uniform 
Guidance for Federal Financial Assistance (89 FR 30046). This was the 
result of a comprehensive process to revise and strengthen title 2 of 
the Code of Federal Regulations (``2024 Revisions'') with multiple 
opportunities for the public to provide feedback. OMB then issued OMB 
Memo M-24-11, ``Reducing Burden in the Administration of Federal 
Financial Assistance'' which provided implementation guidance to 
agencies. This memo directs agencies to implement the 2024 Revisions 
quickly and consistently but no later than October 1, 2024, and 
encourages agencies to streamline communications with the public. Title 
2 CFR part 1800, last amended on November 12, 2020 [85 FR 71815], 
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 
updating 2 CFR part 1800 to maintain consistency with the OMB's 
revisions to title 2, make technical amendments to clarify the 
regulation where authorized by OMB's guidance, and implements OMB's 
2024 Revisions.
    The following changes are implemented by this final rule:
    [ssquf] 2 CFR 1800.2 is revised to clarify that NASA's regulations 
are adopted to align with the April 2024 version of title 2.
    [ssquf] 2 CFR 1800.3(c) is revised to clarify that NASA requires 
additional approvals for awards issued to both foreign organizations 
and foreign public entities and update the current title of the office 
coordinating approvals.
    [ssquf] 2 CFR 1800.5 is updated to reflect the current website of 
NASA's grant guidance materials.
    [ssquf] 2 CFR 1800.10 is updated to remove unused acronyms.
    [ssquf] 2 CFR 1800.11 is removed to avoid duplicating definitions 
already defined in 2 CFR part 200.
    [ssquf] 2 CFR 1800.209 through 1800.211 are revised to improve 
clarity and remove duplicative language.
    [ssquf] 2 CFR 1800.339 is removed to avoid duplication.
    [ssquf] 2 CFR 1800.400 is removed to avoid duplication.

II. Direct Final Rule and Significant Adverse Comments

    NASA has determined this rulemaking meets the criteria for a direct 
final rule because it makes non-substantive 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 guidance on grants and cooperative agreements, and 
also falls under exemptions found in 5 U.S.C. 553(a)(2), which provides 
that general notices of proposed rule making are not required to the 
extent a matter relates to an agency's management of grants. No 
opposition to the changes and no significant adverse comments are 
expected given that OMB has already received and analyzed public 
comments related to 2 CFR. 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.

III. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 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 is not a significant regulatory action and, therefore, was not 
subject to review under section 6(b) of E.O. 12866, Regulatory Planning 
and Review, dated September 30, 1993. This rule is not a major rule 
under 5 U.S.C. 804.

IV. 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

[[Page 75948]]

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 guidance on grants and cooperative agreements 
published on April 22, 2024, at 89 FR 30046, which will become 
effective on October 1, 2024, and does not have a significant economic 
impact on a substantial number of small entities.

V. Paperwork Reduction Act

    The rule does not contain any information collection requirements 
that require the approval of the Office of Management and Budget under 
the Paperwork Reduction Act (44 U.S.C. chapter 35).

Erica Jones,
NASA FAR Supplement Manager.

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.  1800.2 to read as follows:


Sec.  1800.2  Purpose.

    This part adopts the Office of Management and Budget (OMB) guidance 
in subparts A through F and applicable appendices of 2 CFR part 200 (as 
revised in April 2024), as supplemented by this part, as the NASA 
policies and procedures for uniform administrative requirements, cost 
principles, and audit requirements for Federal awards. It thereby gives 
regulatory effect for NASA to the OMB guidance as supplemented by this 
part.

0
3. 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 and applicable appendices 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 and 
applicable appendices 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 and 
applicable appendices of 2 CFR part 200 and as supplemented by this 
part. The Federal Acquisition Regulation (FAR) at 48 CFR parts 30 and 
31, takes precedence over the cost principles in 2 CFR part 200, 
subpart E 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 and foreign 
public entities 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 and foreign public entities on a 
no-exchange-of-funds basis is set forth at NASA FAR Supplement (NFS) 
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 and foreign public entities 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 Procurement, 
Procurement and Grants Policy Division.

0
4. 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, and other source information is on the internet at 
https://www.nasa.gov/general/grants-policy-and-compliance-team/.


Sec.  1800.6  [Removed]

0
5. Remove Sec.  1800.6.

0
6. 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:

NASA National Aeronautics and Space Administration
NFS NASA FAR Supplement


Sec.  1800.11  [Removed]

0
7. Remove Sec.  1800.11.


Sec.  1800.209  [Removed]

0
8. Remove Sec.  1800.209.

0
9. Revise Sec.  1800.210 to read as follows:


Sec.  1800.210  Pre-award costs.

    As authorized by 2 CFR 200.308, Revision of budget and program 
plans, NASA waives the approval requirement for pre-award costs of 90 
days or less. For more information on NASA's pre-award cost policy, see 
NASA's policy documents at https://www.nasa.gov/general/grants-policy-and-compliance-team/.

0
10. Revise 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.


Sec.  1800.305  [Removed]

0
11. Remove Sec.  1800.305.


Sec.  1800.339  [Removed]

0
12. Remove Sec.  1800.339.


Sec.  1800.400  [Removed]

0
13. Remove Sec.  1800.400.

[FR Doc. 2024-21005 Filed 9-16-24; 8:45 am]
BILLING CODE 7510-13-P