Department of the Interior
Departmental Manual
Effective Date: 12/22/94
Series: Federal Assistance Programs
Part 505: Grants Administration
Chapter 3: Grants and Cooperative Agreements with State and Local Governments
Originating Office: Office of Acquisition and Property Management, Office of the Secretary
505 DM 3
1. Purpose. This chapter establishes policies and procedures to implement Office of Management and Budget (OMB) Circular A-102, "Grants and Cooperative Agreements with State and Local Governments," dated October 14, 1994. This Circular establishes standards for consistency and uniformity among Federal agencies in the management of grants and cooperative agreements with State, local, and federally recognized Indian tribal governments. Also included in the Circular are standards to ensure consistent implementation of Sections 202, 203, and 204 of the Intergovernmental Cooperation Act of 1968, the Office of Federal Procurement Policy Act Amendments of 1983, and Sections 6301-08, Title 31, United States Code.
2. Applicability. Policies, procedures, and guidelines established in this directive will apply to all grants and cooperative agreements made by bureaus and offices of the Department with State, local, and federally recognized Indian tribal governments.
3. Policy.
A. It is the policy of the Department to encourage and maintain consistency and uniformity among bureaus and offices in the administration of grants and cooperative agreements as long as these policies do not conflict with enabling legislation, other specific Departmental policies, or program regulations. OMB Circular A-102 sets forth guidance to Federal agencies on businesslike management of grant programs and other matters not covered in the common rule on "Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments" and shall be followed unless a waiver from its requirements has been granted by OMB. (See 505 DM 3.5B).
B. Bureaus and offices shall incorporate within each grant or cooperative agreement, a provision which specifies the applicability of OMB Circular A-102 and 43 CFR Part 12 Subpart C; any exceptions to these provisions which have been approved by OMB; and notification that failure of a recipient to comply with any provision may be the basis for withholding payments for proper charges made by the recipient and for termination of support.
4. Responsibilities.
A. Assistant Secretary - Policy, Management and Budget. The Assistant Secretary - Policy, Management and Budget is the Secretarial officer responsible for implementation of OMB Circular A-102.
B. Assistant Secretaries. Each Assistant Secretary is responsible for ensuring compliance with these provisions in the bureaus or offices under his/her cognizance.
C. Heads of Bureaus and Offices. Heads of bureaus and offices are responsible for:
(1) Carrying out the policies, procedures, and guidelines established in this directive.
(2) Issuing or amending published program regulations and internal policies, procedures, and instructions, as required, in order to ensure full implementation of this Circular and this chapter.
(3) Ensuring that program regulations and internal policies, procedures, and instructions clearly state the applicability of the Circular and its requirements to the program and that recipient noncompliance with any of the provisions of 43 CFR Part 12, Subpart C and the Circular may be the basis for withholding payments for proper charges made by recipients and for termination of support.
D. Office of Acquisition and Property Management (PAM). PAM is responsible for Departmental implementation and oversight and serves as the representative of the Department to OMB for all matters relating to the Circular. PAM is also responsible for coordinating with the Office of Small and Disadvantaged Business Utilization (OSDBU) on all matters involving business development programs which relate to the requirements of OMB Circular A-102.
5. Further Implementation. The standards of OMB Circular A-102, will be adopted as stated, with paragraph 5 (OMB Responsibili-ties), paragraph 1 (Pre-Award Policies), and paragraph 2 (Post-Award Policies) further implemented as follows:
A. OMB Responsibilities - Paragraph 5.
(1) Requests for approval of exceptions for classes of grants or grantees from the requirements of the Circular, when permissible under existing laws, will be submitted by heads of bureaus and offices through the appropriate program Assistant Secretary to the A/S-PMB. PAM will review and coordinate such requests for PMB prior to the A/S-PMB forwarding the request to OMB.
(2) Requests for approval of exceptions on a case-by-case basis and for subgrantees will be approved by bureau and office Assistant Directors for Administration or equivalent officials. This approval authority may not be delegated below this level.
B. Pre-Award Policies - Paragraph 1.
(1) Use of grants and cooperative agreements (Paragraph 1.a.) - Departmental policy on the use of grants and cooperative agreements is contained in 505 DM 2, "Using Procurement Contracts, Grant Agreements, and Cooperative Agreements."
(2) Advance Public Notice and Priority Setting (Paragraph 1.b.) - Bureaus and offices shall develop procedures for advance notice to the public by publication in the Federal Register or other appropriate means. (See 507 DM 1.7 for suggested information requirements for Federal Assistance Program Announcements in the Federal Register).
(3) Debarment and Suspension (Paragraph 1.d.) - Bureaus and offices shall use the "Consolidated List of Debarred, Suspended, Voluntarily Excluded and Ineligible Assistance Participants" and provide access to the list to their recipients and subrecipients (including contractors) at any tier to assure that they do not make awards in violation of 43 CFR Part 12, Subpart D - Governmentwide Debarment and Suspension (Nonprocurement) and Governmentwide Requirements for Drug-Free Workplace (Grants).
(4) Carryover Balances (Paragraph 1.f.) - Bureaus and offices shall submit to PAM, upon request, an identification of the amounts of carryover balances (e.g., the amounts of estimated, grantee unobligated balances available for carryover into subsequent grant periods).
(5) Special Conditions or Restrictions (Paragraph 1.g.) - Bureaus and offices may impose special conditions or restrictions on awards to "high risk" grantees in accordance with 43 CFR Part 12, Subpart C, Section 12.52.
(6) Waiver of Single State Agency Requirements (Paragraph 1.h.) - Bureaus and offices shall develop procedures for handling requests from Governors or other duly constituted State authorities, for waiver of "single" state agency requirements which are in accordance with Section 6504, Title 31, United States Code.
(a) These procedures shall provide for an expeditious handling of the requests and whenever possible, an affirmative response. An information copy of the request and the bureau and office response should be transmitted to PAM within five days following the bureau and office response, except when it is necessary to refuse the request for the waiver.
(b) When it is necessary to refuse the request for the waiver, the bureau and office shall transmit to PAM a copy of the response along with a listing of the reasons for the denial of the request at least three days prior to informing the State that the request cannot be granted. PAM will forward the response to OMB.
(c) Bureaus and offices shall coordinate all legislative proposals pursuant to Paragraph 1.h.(3) with the Office of Congressional and Intergovernmental Affairs (OCI). At the request of OCI, bureaus and offices shall submit a summary of a review made of existing requirements in present grant-in-aid programs and an identification of any legislation which contains "single" State agency requirements. OCI will coordinate with bureaus and offices the development of legislative proposals for the removal of these restrictive provisions.
C. Post-award Policies - Paragraph 2.
(1) Contracting With Small and Minority Firms, Women's Business Enterprises and Labor Surplus Area Firms (Paragraph 2.d.)
(a) The following notice shall be included as part of the award documents in all grants and cooperative agreements which will afford opportunities for purchases from the business community to reflect the Department's implementation and support of Executive Order 12432, July 14, 1983, Minority Business Enterprise Development:
"It is a national policy to award a fair share of contracts to small and minority business firms. The Department of the Interior is strongly committed to the objectives of this policy and encourages all recipients of its grants and cooperative agreements to take affirmative steps to ensure such fairness.
(1) The grantee and subgrantee shall take all necessary affirmative steps to assure that minority firms, women's business enterprises, and labor surplus area firms are used when possible.
(2) Affirmative steps shall include:
(i) Placing qualified small and minority businesses and women's business enterprises on solicitation lists;
(ii) Assuring that small and minority businesses, and women's business enterprises are solicited whenever they are potential sources;
(iii) Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority business, and women's business enterprises;
(iv) Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority business, and women's business enterprises;
(v) Using the services and assistance of the Small Business Administration, and the Minority Business Development Agency of the Department of Commerce as appropriate, and
(vi) Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in (2)(i) through (v) above."
(b) Within 30 days after the end of each Fiscal Year Quarter, bureaus and offices shall submit a progress report to OSDBU on the Minority Business Development Agency (MBDA), MBDA-91 form Section 4. The OSDBU will consolidate the Department's accomplishments and submit them to the MBDA on the MBDA-91 form. Report Control Symbol 1561-DOC-QU has been assigned to this reporting requirement.
(2) Infrastructure Investment (Paragraph 2.g.) - Bureaus and offices shall also use procedures included in 505 DM 6, "Infrastructure Privatization," for implementing the requirements of E.O. 12803.
12/22/94 #3029
Replaces 09/12/86 #2708