Public Law 85-934 (42 U.S.C. 1891-1893) authorizes, under appropriate conditions, the vesting of title to equipment purchased with grant or contract funds when the grant or contract is for the conduct of basic or applied scientific research at nonprofit institutions of higher education, or at nonprofit organizations who primary purpose is the conduct of scientific research. The Contracting or Grant Officer will determine which equipment will be transferred prior to executing the contract/grant.
In exercising this authority, the following directives will be observed:
(a) Educational Institutions. The policies set forth in General Services Administration Federal Management Circular FMC 73-7 (34 CFR 253) will be followed in determining when title to equipment should be vested in educational institutions.
(b) Nonprofit Organizations Other Than Educational Institutions. Title to equipment acquired with grant or contract funds may be vested in nonprofit organizations whose primary purpose is the conduct of scientific research when it is determined that vesting of title will further Reclamation's program objectives and is clearly in the best interest of the Government.
The findings and determinations on which the decision to vest title was based will be made a matter of record. Conveyance of the equipment may be without further obligation to the Government or on such other terms and conditions as Reclamation deems appropriate, except that when the acquisition cost of an item is in excess of $5,000, transfer of title by the Contracting Officer will be subject to prior approval of the Commissioner.
(c) The research contract will clearly indicate where title to equipment is to be vested.