Department of the Interior
Departmental Manual
Effective Date: 8/7/98
Series: Federal Assistance Programs
Part 505: Grants Administration
Chapter 5: Grants Agreements with Institutions of Higher Education, Hospitals, and Other Nonprofit Organizations
Originating Office: Office of Acquisition and Property Management
505 DM 5
5.1 Purpose. This chapter establishes policies and procedures to implement Office of Management and Budget (OMB) Circular A-110, Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Nonprofit Organizations, published in the Federal Register (58 FR 62992) on November 29, 1993. References are also given for the corresponding sections in the Department's regulatory implementation of the Circular found at 43 CFR Part 12, Subpart F, published in the Federal Register on April 5, 1995, (60 FR 17237).
5.2 Applicability. Policies, procedures, and guidelines established in this chapter shall apply to awards covered by the Circular and defined in Section _____.2(e) of the Circular.
5.3 Policy. In accordance with Paragraph 3 of the Circular, the Department will apply the provisions of the Circular to recipients unless a statute specifically prescribes policies or specific requirements that differ from its standards.
5.4 Responsibilities.
A. Assistant Secretary - Policy, Management and Budget (A/S-PMB). The A/S-PMB is the Secretarial officer responsible for implementation of this policy and OMB Circular A-110.
B. Office of Acquisition and Property Management (PAM). PAM is responsible, on behalf of the A/S-PMB, for Departmental overview and implementation of the Circular and will serve as the representative of the Department before OMB on 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-110.
C. Assistant Secretaries. Each Assistant Secretary is responsible for ensuring compliance with these provisions in the Federal assistance programs within bureaus or offices under his/her supervision.
D. Bureaus and Offices. Heads of bureaus and offices are responsible for carrying out the policies, procedures, and guidelines established in this chapter. They are also responsible for 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.
5.5 Sections. In accordance with Paragraph 5 of the Circular, this chapter adopts the language in the Circular unless different provisions are required by Federal statute or are approved by OMB.
The requirements of OMB Circular A-110 are to be adopted as stated and further implemented as follows:
A. Subpart A - General
(1) Section _____.2 Definitions. (See 43 CFR 12.902).
(a) Closeout. Bureau and office procedures shall specify the process to use.
(b) Disallowed costs. When Departmental audits are the basis for disallowed costs, Part 360 of the Departmental Manual, "Departmental Audits," will serve as the system of guidelines and procedures.
(c) Excess property. Bureaus and offices shall make determinations of excess property, as appropriate.
(d) Federal awarding agency. The bureau and office within the Department that provides an award to the recipient.
(e) Program income. When determining whether program income includes the receipt of principal on loans, rebates, credits, discounts, etc., or interest earned on any of them, the reference to the requirement that Federal awarding agency regulations provide the basis for this determination, means the specific bureau and office program regulations implementing the statute authorizing the program.
(f) Suspension. Procedures governing suspension of awards within the Department are specified in 43 CFR Part 12, Subpart D.
(2) Section____.3 Effect on other issuances. (See 43 CFR 12.903). Bureaus and offices are responsible for reviewing those issuances referred to in this section and taking the appropriate actions as required.
(3) Section____.4 Deviations. (See 43 CFR 12.904).
(a) Requests for OMB approval of exceptions for classes of grants or recipients subject to the requirements of this Circular, when exceptions are not prohibited by statute, shall be submitted by heads of bureaus and offices through the appropriate program Assistant Secretary to PAM. PAM will review and coordinate such requests for the A/S-PMB prior to the A/S-PMB forwarding the request to OMB.
(b) Requests for OMB approval for a bureau or office to apply more restrictive requirements to a class of recipients will be handled as described above.
(c) Bureau and office application of less restrictive requirements when awarding small awards not exceeding the simplified acquisition threshold fixed at 41 U.S.C. 403 (11) (currently $100,000), except for those requirements which are statutory, and exceptions on a case-by-case basis, will be handled by designated officials identified in bureau and office procedures.
B. Subpart B - Pre-Award Requirements
(1) Subsection____.11(a) Use of Grants and Cooperative Agreements, and Contracts. (See 43 CFR 12.911). Departmental policy on the use of grants, cooperative agreements, and contracts is contained in 505 DM 2, "Using Procurement Contracts, Grant Agreements, and Cooperative Agreements."
(2) Subsection ____.11(b) Public Notice and Priority Setting. In developing procedures, bureaus and offices shall publish notices in the Federal Register or other appropriate media. (See 507 DM 1.7 for suggested information requirements for Federal Assistance Program Announcements in the Federal Register).
(3) Section____.12 Forms for applying for Federal assistance.
(a) In accordance with subsection ____.12(a) of the Circular, bureaus and offices shall use applicable procedures for obtaining OMB approval. (See 381 DM 11, "Information Collection Program Requirements.")
(b) As part of implementing subsections ____.12(c) and (d) of the Circular, bureau and office Intergovernmental Review Coordinators shall be consulted regarding bureau/office concerns on the implementation of E.O. 12372, "Intergovernmental Review of Federal Programs." (See 511 DM 1-8, "Intergovernmental Review of Department of the Interior Programs and Activities.")
(4) Section ____.13 Debarment and suspension. (See 43 CFR 12.913). Bureaus and offices shall follow requirements included in 43 CFR Part 12, Subpart D for debarment and suspension.
(5) Section ____.14 Special award conditions. (See 43 CFR 12.914). Bureau and office procedures shall incorporate the requirements to notify an applicant.
(6) Section____.15 Metric system of measurement. (See 43 CFR 12.915). Bureaus and offices will be governed by the Federal Agency Guidance on the Use of the Metric System in Financial Assistance (approved by the Interagency Council on Metric Policy - October 1993). Departmental policy regarding metric conversion is included in DM Part 758 (Metric Transition Program).
(7) Section____.17 Certifications and representations. (See 43 CFR 12.917). Bureau/Office determinations concerning the appropriateness of allowing recipients to submit certifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency, should be appropriately documented.
C. Subpart C-Post Award Requirements
(1) Section ____.21 Standards for financial and program management. (See 43 CFR 12.921). In accordance with subsections_____.21(c) and (d) of the Circular, bureaus and offices shall document decisions made to require adequate bonding, insurance, and fidelity bond coverage, if the bonding and insurance requirements of the recipient are not deemed adequate to protect the interest of the Federal Government.
(2) Section_____.22 Payment. (See 43 CFR 12.922). As specified in subsection ____.22(h) of the Circular, a bureau and office can withhold payments for proper charges made by recipients at any time during the project period when the recipient or subrecipient is delinquent in a debt to the United States as defined in OMB Circular A-129, "Managing Federal Credit Programs." (See DM Part 344, "Debt Collection.")
(3) Section____.23 Cost Sharing or matching. (See 43 CFR 12.923). For donations under subsection ____.23(c) of the Circular, a bureau and office shall authorize recipients to donate buildings or land for construction/facilities acquisition projects or long-term use.
(a) Bureau and office approval for the use of current fair market value of the donated property under subsection ____.23(c)(2) shall be granted when there is sufficient justification.
(4) Section____.24 Program income. (See 43 CFR 12.924). In accordance with subsection____.24(b) of the Circular, bureaus and offices shall ensure that the program regulations or the terms and conditions of the award specify the way(s) the retained program income will be used.
(5) Section____.25 Revision of budget and program plans. (See 43 CFR 12.925). For prior approvals under nonconstruction awards, recipients shall obtain approval from appropriate bureau and office officials. OMB approvals for the imposition of other prior approval requirements for specific items, will be approved using the procedure in 505 DM 5.5A (3)(a).
(6) Section____.32 Real property. (See 43 CFR 12.932). In accordance with subsection ____.32 of the Circular, bureau and office procedures shall prescribe requirements for recipients concerning the use and disposition of real property acquired in whole or in part under awards. Unless otherwise provided by statute, these procedures shall be consistent with the minimum requirements identified in subsections (a) - (c) of this section.
(7) Section____.33 Federally-owned and exempt property. (See 43 CFR 12.933). In accordance with subsection _____.33(a) of the Circular, bureau and office procedures shall include provisions for requiring recipients to submit annually an inventory listing of federally-owned property in their custody and for providing appropriate instructions to the recipient when the property is no longer needed.
(8) Section ____.34 Equipment. (See 43 CFR 12.934). In accordance with section____.34 of the Circular, bureau and office procedures shall address the requirements of vesting title of equipment acquired by a recipient with Federal funds, and be consistent with the conditions of this section.
(9) Section____.35 Supplies and other expendable property. (See 43 CFR 12.935). In accordance with section____.35 of the Circular, bureau and office procedures shall include provisions for the handling of compensation from the recipient for a residual inventory of unused supplies as described in ____.35(a).
(10) Section____.36 Intangible property. (See 43 CFR 12.936). In accordance with subsection___.36(d) of the Circular, bureau and office procedures shall include provisions for reviewing a request from a recipient for approval to encumber the intangible property.
(11) Section____.40 Purpose of procurement standards. (See 43 CFR 12.940). Additional procurement standards or requirements imposed by bureaus and offices, which need approval by OMB, will be handled as required in 505 DM 5.5A(3)(a).
(12) Section____.44 Procurement procedures. (See 43 CFR 12.944).
(a) The following notice shall be included in all grants and cooperative agreements that will afford opportunities for purchases from the business community to reflect the Department's implementation and support of: (1) Executive Order 12432, July 14, 1983, Minority Business Enterprise Development; (2) Executive Order 12928, September 16, 1994, Promoting Procurement with Small Disadvantaged Businesses, Historically Black Colleges and Universities, and Minority Institutions; (3) Presidential Memorandum, October 13, 1994, Continued Commitment to Small, Small Disadvantaged, and Small Women-Owned Businesses; and (4) Executive Order 12138, May 18, 1979, Creating a National Women's Business Enterprise Policy and Implementing a National Program for Women's Business Enterprise.
"It is a national policy to place a fair share of purchases with 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. Positive efforts shall be made by recipients to utilize small businesses, minority-owned firms, and women's business enterprises, whenever possible. Recipients of Federal awards shall take all of the following steps to further this goal:
(1) Ensure that small businesses, minority-owned firms, and women's business enterprises are used to the fullest extent practicable.
(2) Make information on forthcoming opportunities available and arrange time frames for purchases and contracts to encourage and facilitate participation by small businesses, minority-owned firms, and women's business enterprises.
(3) Consider in the contract process whether firms competing for larger contracts intend to subcontract with small businesses, minority-owned firms, and women's business enterprises.
(4) Encourage contracting with consortiums of small businesses, minority-owned firms and women's business enterprises when a contract is too large for one of these firms to handle individually.
(5) Use the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Department of Commerce's Minority Business Development Agency in the solicitation and utilization of small businesses, minority-owned firms and women's business enterprises."
(b) In accordance with subsection ____.44e of the Circular, bureau and office procedures shall include provisions for requesting from recipient's pre-award review and procurement documents as required.
(13) Section ____.48 Contract provisions. (See 43 CFR 12.948). In accordance with subsection ____.48(c) of the Circular, bureau and office procedures shall address the acceptance of the bonding policy and requirements of the recipient when a determination has been made as described in the subsection. If such a determination has not been made, the identified minimum requirements shall be met.
(14) Section____.51 Monitoring and reporting program performance. (See 43 CFR 12.951). In accordance with subsection ____.51(b) of the Circular, bureau and office procedures shall prescribe the frequency with which the performance reports shall be submitted.
(a) Bureau and office procedures shall describe requirements for site visits.
(b) In accordance with subsection____.51(h) of the Circular, bureaus and offices shall use procedures for obtaining OMB approval of individual collections of information as prescribed in 381 DM 12, when requesting performance data from recipients. Instructions on preparing requests for OMB approval are contained in the Information Collection Handbook, available from bureau clearance officers.
(15) Section ____.52 Financial reporting. In accordance with this section, bureaus and offices shall use the designated forms or when other forms are being used, obtain OMB approval as specified in subparagraph 505 DM 5.5(B)(14)(b) above.
(a) Bureau and office procedures shall include procedures for the waiver of the requirement for submission of the SF-272, as described in Section ____.52 (2)(v) of the Circular.
(b) Bureaus and offices shall use procedures in 381 DM for obtaining additional information in accordance with Subsection ____.52(b) of the Circular.
D. Subpart D___After-the-Award Requirements
(1) Section____.71 Closeout procedures. (See 43 CFR 12.971). Bureau and office procedures for closeout shall be in accordance with this Section.
(2) Section____.72 Subsequent adjustments and continuing responsibilities. (See 43 CFR 12.972). Bureau and office procedures concerning their right to disallow costs and recover funds on the basis of a later audit or other review shall be in accordance with this section.
(3) Section____.73 Collection of amounts due. In accordance with Subsection ____.73(b) of the Circular, bureau and office procedures shall follow the requirements of the Federal Claims Collection Standards as implemented in 344 DM in collecting these amounts.
8/7/98 #3217
Replaces 8/7/96 #3082