ÿWPC: öO‹å! ùa”„Óp6® |”F3†Ìv6ï÷?.Í)øTðÅÇGõ<š^Ÿ`HmƒÈ?\Ê ÓnØÑŽ°xf˜«“ò‹PI”¡Dr‚9씣„ê•4q´×[ÃJ#ê™.š²³!ŸR±°¢–בÎÔ•€‹]ðpëûQ8xו1”`ëÛ{’Ä %›“¤–áuÐé%mÿüò¿D®§Š¼S¤O¼¡^éFJ4Ê"šÓæ¡Œ˜êÆ×<Ï”Yf·‚ŮݓýàÕ1«Úć IýëÄ)©N ¡žŒ¸gg¯æf&¾—ƦR„=›M5c2ÏÞM m æ4Öƒí¾ÐG`«¾’c!‚N=Ö=‡äoÖ¢¤E%h1ȶ•—hý`ë0ixÖ,Œò2»y±ïmã€Æ¾ëZyµ;”Læ¥eø@ܳ¦þº¡c^n†œá±òêSŒ]–o掎tµôîÀV?Ö /k¨‰÷¦¥¯«.[…u‡æÀá½_ÝbY¿INdõXÖ.w¢>§¸+Å*Â'@(b” 0Ü7¼ˆô‰µc~e€BdŸ«®+¹õÎ…›»‚I®†l¿¿;¯EFªñH$“ >Œ§€ï.ŽºÃd#!xUN™ %ç 0(íU : ^ O w@[ 4› ¯ ¾ mÀ À N× 0‹Ù 0Dd d ¨ ¨ 0DÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃà D3 B::::::: AQWƨ 0Dn 0D² 0Dö˜HP LJ 8000 PCL 6ÈÈÈÈÈÈÈÈ0(ÖÃ9 Z‹6Times New Roman RegularX($¡¡,c½¬AZ‹"Arial Regularè 3-c ùúûDüýþEÿEjñ,î(ô Suite83|xÿU‹ÿÀÀÀ(;(2ò$¤¤Ý ƒ!ÝÝ  ÝÔ€BXXÔà  àòòÚ  Ú0Ú  Úóó(#Ã$òòÚ  Ú0Ú  Úóó Ý ƒa¯"ÝÝ  ÝÔ_ÔÔ‡X_¦XXXÔÔ‡&[2%XX_¦ÔÔ#†X_¦X%&[2J#Ôԇ„wÂXX_¦ÔAs€stated€in€the€Commissioner's€memo€titled,€ð ðInterim€Guidance€on€the€Use€of€Financial€AssistanceÐ  ÐAgreements,ðð€additional€guidance€is€being€developed€concerning€the€appropriate€business€instrument€toÏbe€used€when€providing€authorized€financial€assistance€to€non„Federal€entities.€€This€guidance€will€beÏincorporated€into€the€revised€Reclamation€Financial€Assistance€Handbook€(Ô_ÔRFAHÔ_Ô),€along€with€theÏdistinctions€between€and€ramifications€of€selecting€one€mechanism€over€another.€€Until€the€Ô_ÔRFAHÔ_Ô€isÏrevised,€this€abbreviated€guidance€is€being€provided€to€further€assist€you€and€your€staff€in€makingÏdeterminations€of€whether€the€proper€business€instrument€for€award€is€a€contract,€grant€or€cooperativeÏagreement.Ô#†X_¦X„wŒ#ÔÔ#†XDXXX_¦+#Ô(3¯$¦¦Ý ƒ!ÝÝ  ÝXXXX'ÿÿdxd d`abcWCþÿ<<CÿÿƒLevel 1Level 2Level 3Level 4Level 5(3¯$¢¢Ý ƒ!ÝÝ  Ý(3¯$££Ý ƒ!ÝÝ  Ý($$””ò òÚ  Ú1Ú  Úó óÝ ƒ!ÝÝ  ÝÔ_ÔÔ€X_¦XXXÔÔ€&[2%XX_¦Ôò òÔ  ÔÑ  Ñà@@@ìàÔ‡X_¦X%&[2ÔGUIDANCE€ON€THE€DETERMINATION€OF€PROPER€AWARD€INSTRUMENTÔ#†&[2%XX_¦•#Ôó óˆÐ ° ÐÌÌÔ_Ôßi€_5%!`zÑþ*I `€E°nI8ttaPèDÙ*ißÔ_Ôâ Á"(#Á"(#°(#°(#â°â Á"(#Á"(#Á"(#Á"(#â°â Á"(#Á"(#Á"(#Á"(#â°â Á"(#Á"(#Á"(#Á"(#â°â Á"(#Á"(#Á"(#Á"(#â°â Á"(#Á"(#Á"(#Á"(#â°â Á"(#Á"(#Á"(#Á"(#â°â Á"(#Á"(#Á"(#Á"(#â°â Á"(#Á"(#Á"(#Á"(#â°â °(#°(#Á"(#Á"(#âà  àIn€1977,€€Congress€passed€the€Federal€Grant€and€Cooperative€Agreement€Act€(Act),Ïrevised€Title€31€U.S.C.€6301„6308€(sections€pertinent€to€this€guidance€are€attached).€€The€ActÏwas€primarily€a€result€of€the€failure€of€Federal€agencies€to€properly€distinguish€betweenÏprocurement€instruments€and€various€assistance€relationships€when€making€awards,€whichÏresulted€in€circumvention€of€procurement€regulations€and€the€imposition€of€unnecessaryÏprocurement€regulations€on€recipients.€€The€Act€seeks€to€promote€increased€discipline€inÏselecting€and€using€procurement€contracts,€grants€and€cooperative€agreements;€to€maximizeÏcompetition€in€making€procurement€contracts,€and€to€encourage€competition€in€making€grantÏand€cooperative€agreements.ÌÌà  àThe€Act€requires€that€a€ò òprocurement€contractó ó€be€used€when€the€principle€purpose€ofÐ P Ðthe€transaction€is€to€acquire€(by€purchase,€lease,€or€barter)€property€or€services€for€the€directÏbenefit€or€use€of€the€Government.€€A€ò ògrant€agreementó ó€shall€be€used€(1)€when€the€principleÐ ° Ðpurpose€of€the€transaction€is€to€transfer€something€of€value€to€a€recipient,€(2)€for€the€purpose€ofÏcarrying€out€a€public€purpose€of€support€or€stimulation€which€has€been€authorized€by€law,€andÏ(3)€when€substantial€involvement€òòis€not€expectedóó€between€the€recipient€and€the€Government.€€AÐ 4„ Ðò òcooperative€agreementó ó€shall€be€used€under€the€same€conditions€as€a€grant€except€thatÐ X Ðsubstantial€involvement€òòis€expectedóó€between€the€recipient€and€the€Government.€€Guidance€onÐ ä4 Ðsubstantial€involvement€can€be€found€in€Appendix€C€of€the€Draft€Ô_ÔRFAHÔ_Ô€which€is€available€atÏhttp://www.usbr.gov/aamsden/AAMSrfa.html.ÌÌà  àAs€stated€in€the€òòPrinciples€of€Federal€Appropriations€Lawóó,€p.€10„11,€ð ðUnless€legislativelyÐ 4 „! Ðprohibited,€every€agency€has€inherent€authority€to€enter€into€contracts€to€procure€goods€orÏservices€for€its€own€use,€as€long€as€the€purpose€of€the€procurement€is€reasonably€related€to€theÏagency's€mission.€€However,€there€is€no€comparable€òòinherentóó€authority€to€give€away€theÐ °"$ Ðgovernment's€money€or€property,€either€directly€or€by€the€release€of€vested€rights,€to€benefitÏsomeone€other€than€the€government;€this€must€be€authorized€by€Congress.€€Therefore,€theÏagency's€basic€legislation€must€be€studied€to€determine€whether€an€assistance€relationship€isÏauthorized€at€all,€and€if€so,€under€what€circumstances€and€conditions.ðð€€ÌÌà  àTherefore,€Reclamation€must€have€explicit€authority€to€enter€into€a€grant€or€cooperativeÏagreement.€€Appendix€A€to€the€Draft€Ô_ÔRFAHÔ_Ô€provides€a€listing€of€many€statutory€authorities€underÏwhich€Reclamation€may€have€authority€to€enter€into€certain€types€of€financial€assistanceÏagreements.€€In€order€to€determine€whether€Reclamation€has€authority€to€enter€into€anÏagreement,€the€authority€must€be€reviewed€to€determine€the€conditions€which€Congress€mayÏhave€placed€on€awards.€€When€reviewing€an€authority€for€project€applicability,€key€issues€orÏitems€to€consider€include,€but€are€not€limited€to,€the€following:ÌÐ t-Ä(1 ÐÔ_Ôà0  àà ° àà  àà ` à1.€€Whether€Reclamation€has€authority€under€the€statute€to€award€assistanceÏactions€(this€authority€may€be€specifically€stated,€or€is€sometimes€implied€by€the€natureÏof€actions€contemplated€to€accomplish€the€purposes€of€the€act,€i.e.,€ð ðReclamation€inÏcooperation€withðð);Ð (#(# Ðà0  àà ` à2.€€Whether€Reclamation€is€being€directed€to€do€something€with€its€own€forces€orÏis€to€obtain€a€deliverable€product€or€service,€in€which€case€a€procurement€instrumentÏwould€be€the€appropriate€business€instrument;Ð (#(# Ðà0  àà ` à3.€€Whether€the€proposed€purpose€of€the€agreement€is€consistent€with€theÏlegislative€intent€(purpose,€objectives,€and€goals)€of€the€authority;Ð (#(# Ðà0  àà ` à4.€€Whether€restrictions€have€been€placed€on€the€type€of€instrument€to€be€used,Ïi.e.,€grant€or€cooperative€agreement;Ð (#(# Ðà0  àà ` à5.€€Whether€any€cost€sharing€or€matching€requirements€have€been€placed€on€theÏrecipient;€Ð (#(# Ðà0  àà ` à6.€€Whether€appropriations€are€currently€authorized€and€in€what€amount;€Ð (#(# Ðà0  àà ` à7.€€Whether€restrictions€have€been€placed€on€the€type€of€recipient€that€mayÏreceive€an€award;€Ð (#(# Ðà0  àà ` à8.€€Whether€foreign€assistance€has€been€authorized;€Ð (#(# Ðà0  àà ` à9.€€Whether€geographic€restrictions€have€been€placed€on€where€the€project€isÏconducted;€Ð (#(# Ðà0  àà ` à10.€€Whether€specific€regulations€or€statutory€requirements€have€been€imposedÏon€the€award,€e.g.,€Davis„Bacon;Ð (#(# Ðà0  àà ` à11.€€Whether€there€are€specific€program€or€financial€reporting€requirements;Ð (#(# Ðà0  àà ` à12.€€Whether€there€are€specific€requirements€for€a€competitive€process€forÏselection€of€recipients€or€if€specific€competitive€evaluation€criteria€are€required;€and;Ð (#(# Ðà0  àà ` à13.€€Whether€any€other€restrictions€have€been€placed€on€award€or€administrationÏof€the€agreement.Ð (#(# ÐÌà  àAs€stated€above,€Federal€law€requires€that€Reclamation€utilize€the€appropriate€legalÏinstrument€(contract,€grant€or€cooperative€agreement)€when€entering€into€award€transactions.€ÏAdditional€reasons€for€insuring€that€the€proper€determination€is€made€are€as€follows:ÌÌà0  àà ` à1.€€The€purpose€in€procurement,€to€acquire€something,€leads€to€rules€andÏregulations€which€are€designed€to€protect€and€promote€the€Federal€interest€whileÏallowing€the€potential€contractor€a€fair€opportunity€to€compete€and,€where€profits€areÏpermitted,€a€reasonable€profit.€€Additionally,€Federal€requirements,€such€as€preferencesÏgiven€socially€and€economically€disadvantaged€small€businesses,€will€be€circumvented€ifÏprocurement€actions€are€awarded€through€assistance€agreements.Ð (#(# ÐÌà0  àà ` à2.€€GAO€will€consider€a€ð ðprotestðð€against€the€award€of€a€financial€assistanceÏagreement€if€it€appears€that€a€conflict€of€interest€exists€or€that€the€agency€is€using€aÏfinancial€assistance€agreement€to€avoid€the€competitive€requirements€of€procurementÏlaws.€€GAO€ð ðcan€and€willðð€render€decisions€on€the€legality€of€financial€assistance€awardsÏin€terms€of€compliance€with€applicable€statutes€and€regulations.Ð (#(# ÐÌà0  àà ` à3.€€The€Competition€in€Contracting€Act€requires€the€use€of€competitiveÏcontracting€procedures€whenever€an€agency€procures€property€or€services,€unlessÏotherwise€authorized.Ð (#(# ÐÌà0  àà ` à4.€€The€term€ð ðdeliverableðð€is€a€contracting€concept€which€is€generally€notÏconsistent€with€the€purpose€of€financial€assistance€which€is€to€transfer€something€Ô_ÔofÐ D-”(1 Ðvalue€to€the€recipient€to€carry€out€a€public€purpose.€€If€the€Government€requires€aÏdeliverable€product€or€service€as€a€result€of€the€proposed€award,€then€a€contract€isÏprobably€the€correct€award€instrument.€€The€improper€use€of€an€assistance€agreementÏinstead€of€a€contract€may€result€in€delivery€of€inferior€quality€products€or€services€withoutÏgovernment€recourse.€€Ð (#(# ÐÌà0  àà ` à5.€€In€assistance€agreements,€the€government€has€no€unilateral€right€to€terminateÏagreements€for€the€convenience€of€the€government.€€An€agreement€may€be€terminatedÏfor€convenience€only€if€the€recipient€consents€to€the€termination,€and€then€the€partiesÏmust€agree€upon€the€termination€conditions.€€The€government€may€unilaterally€terminateÏagreements€only€when€the€recipient€materially€fails€to€comply€with€the€terms€andÏconditions€of€an€award.Ð (#(# ÐÌà  àIn€accordance€with€505€DM€2.6.E(1)(a),€determinations€for€the€selection€of€awardÏinstruments€shall€be€in€writing€and€shall€contain€complete€information€on€the€nature€of€theÏrelationship€between€the€bureau€and€the€recipient€to€justify€the€use€of€the€instrument€selected.€ÏAdditionally,€505€DM€2.6.E(1)(d)€requires€that€the€official€agreement€file€for€each€cooperativeÏagreement€contain€an€explicit€statement€of€Federal€programmatic€involvement€which€includesÏthe€nature,€character,€and€extent€of€the€anticipated€Federal€involvement.€€This€information€is€aÏlogical€portion€of€the€information€required€by€505€DM€2.6.E(1)(a)€and€should€be€included€withÏthe€determination€rather€than€duplicating€this€effort€elsewhere€in€the€agreement€file.à Ð àÐ @ ÐÌÔ_Ôññà  àThe€Acquisition€and€Assistance€Management€Division€(Ô_ÔAAMDÔ_Ô)€and€the€ReclamationÏAssistance€Partnership€(RAP)€have€been€working€to€develop€a€new€form€for€use€in€determiningÏthe€proper€award€instrument.€€The€Award€Instrument€Determination€(AID)€form,€attached,€isÏcurrently€being€reviewed€by€RAP€members.€€It€is€believed€this€new€form€better€consolidates€theÏinformation€that€will€help€you€and€your€staff€to€make€these€determinations.€€ÌññÔ_ÔÔ_ÔññÌññÔ_Ôà  àThis€form€will€be€included€on€Reclamation's€Financial€Assistance€Ô_ÔwebsiteÔ_Ô.€€On€the€actualÏform,€the€information€included€in€the€text€boxes€will€be€available€through€ð ðpop„upðð€commentÏññitemsññññboxesññ.€€ñúñLinks€will€be€provided€to€the€ñúññûññõñRñõññûññüñrñüñeference€documents€(indicated€by€underline€and€italicsñùñ)€ñùññþññýñin€ñýññþññÿñonÏthe€form.ñÿñÌÐ  8ˆ ÐÔ_ÔÔ‡XÊX%&ûGÔà@; ; ìàò òFederal€Grant€and€Cooperative€Agreement€Act€ˆÐ ° Ðà@ù ù ìà(Recodified€as€31€U.S.C.€6301€et€seq.)ˆÌÔ#†&›x%XX­±*#ÔÔ‡ôtøõ%&›xÔÌó óÌò òSec.€6301.€Purposesó ó€Ð b ÐÌThe€purposes€of€this€chapter€are€to€-€ÌÓ! °rƒÂÿÿ°œX!ÓÌà0 r à(1)€promote€a€better€understanding€of€United€States€Government€expenditures€and€help€eliminateÏunnecessary€administrative€requirements€on€recipients€of€Government€awards€by€characterizingÏthe€relationship€between€executive€agencies€and€contractors,€States,€local€governments,€andÏother€recipients€in€acquiring€property€and€services€and€in€providing€United€States€GovernmentÏassistance;€Ð r(#r(# ÐÌà0 r à(2)€prescribe€criteria€for€executive€agencies€in€selecting€appropriate€legal€instruments€to€achieve€-€Ð r(#r(# Ðà r àà 4 à(A)€uniformity€in€their€use€by€executive€agencies;€Ìà r àà 4 à(B)€a€clear€definition€of€the€relationships€they€reflect;€and€Ìà r àà 4 à(C)€a€better€understanding€of€the€responsibilities€of€the€parties€to€them;€and€ÌÌà r à(3)€promote€increased€discipline€in€selecting€and€using€procurement€contracts,€grant€agreements,Ìà r àand€cooperative€agreements,€maximize€competition€in€making€procurement€contracts,€andÌà r àencourage€competition€in€making€grants€and€cooperative€agreements.ÌÌò òSec.€6302.€Definitions€ó óÐ ~Î ÐÌIn€this€chapter€-€ÌÌà0 r à(1)€''executive€agency''€does€not€include€a€mixed-ownership€Government€corporation.€Ð r(#r(# ÐÌà0 r à(2)€''grant€agreement''€and€''cooperative€agreement''€do€not€include€an€agreement€under€which€isÏprovided€only€-€Ð r(#r(# Ðà r àà 4 à(A)€direct€United€States€Government€cash€assistance€to€an€individual;€Ìà r àà 4 à(B)€a€subsidy;€Ìà r àà 4 à(C)€a€loan;€Ìà r àà 4 à(D)€a€loan€guarantee;€or€Ìà r àà 4 à(E)€insurance.€Ìà0 r à(3)€''local€government''€means€a€unit€of€government€in€a€State,€a€local€public€authority,€a€specialÏdistrict,€an€intrastate€district,€a€council€of€governments,€a€sponsor€group€€representativeÏorganization,€an€interstate€entity,€or€another€instrumentality€of€a€local€government.€Ð r(#r(# ÐÌà0 r à(4)€''other€recipient''€means€a€person€or€recipient€(except€a€State€or€local€government)€authorizedÏto€receive€United€States€Government€assistance€or€procurement€contracts€and€includes€aÏcharitable€or€educational€institution.€Ð r(#r(# ÐÌà0 r à(5)€''State''€means€a€State€of€the€United€States,€the€District€of€Columbia,€a€territory€or€possession€ofÏthe€United€States,€an€agency€or€instrumentality€of€a€State,€and€a€multi-State,€regional,€or€interstateÏentity€having€governmental€duties€and€powers.€Ð r(#r(# ÐÌò òÐ  v)Æ$0 ÐSec.€6303.€Using€procurement€contracts€Ìó óÌAn€executive€agency€shall€use€a€procurement€contract€as€the€legal€instrument€reflecting€a€relationshipÏbetween€the€United€States€Government€and€a€State,€a€local€government,€or€other€recipient€when€-€ÌÌà0 r à(1)€the€principal€purpose€of€the€instrument€is€to€acquire€(by€purchase,€lease,€or€barter)€property€orÏservices€for€the€direct€benefit€or€use€of€the€United€States€Government;€or€Ð r(#r(# ÐÌà0 r à(2)€the€agency€decides€in€a€specific€instance€that€the€use€of€a€procurement€contract€is€appropriate.€Ð r(#r(# ÐÌò òÔ& Ð ÔSec.€6304.€Using€grant€agreementsó ó€Ð J š  ÐÌAn€executive€agency€shall€use€a€grant€agreement€as€the€legal€instrument€reflecting€a€relationshipÏbetween€the€United€States€Government€and€a€State,€a€local€government,€or€other€recipient€when€-€ÌÔ'ÐJ ¤8ÔÌà0 r à(1)€the€principal€purpose€of€the€relationship€is€to€transfer€a€thing€of€value€to€the€State€or€localÏgovernment€or€other€recipient€to€carry€out€a€public€purpose€of€support€or€stimulation€authorized€byÏa€law€of€the€United€States€instead€of€acquiring€(by€purchase,€lease,€or€barter)€property€or€servicesÏfor€the€direct€benefit€or€use€of€the€United€States€Government;€and€Ð r(#r(# ÐÌà0 r à(2)€substantial€involvement€is€not€expected€between€the€executive€agency€and€the€State,€localÏgovernment,€or€other€recipient€when€carrying€out€the€activity€contemplated€in€the€agreement.€Ð r(#r(# ÐÌò òSec.€6305.€Using€cooperative€agreementsó ó€Ð *z ÐÌAn€executive€agency€shall€use€a€cooperative€agreement€as€the€legal€instrument€reflecting€aÌrelationship€between€the€United€States€Government€and€a€State,€a€local€government,€or€other€recipientÏwhen€-€ÌÌà0 r à(1)€the€principal€purpose€of€the€relationship€is€to€transfer€a€thing€of€value€to€the€State,€localÏgovernment,€or€other€recipient€to€carry€out€a€public€purpose€of€support€or€€stimulation€authorizedÏby€a€law€of€the€United€States€instead€of€acquiring€(by€purchase,€lease,€or€barter)€property€orÏservices€for€the€direct€benefit€or€use€of€the€United€States€Government;€and€Ð r(#r(# ÐÌà0 r à(2)€substantial€involvement€is€expected€between€the€executive€agency€and€the€State,€localÏgovernment,€or€other€recipient€when€carrying€out€the€activity€contemplated€in€the€agreement.€Ð r(#r(# ÐÌò òó óÌÌÔ#†&›x%õôtø„+#Ô