The text of the bill below is as of Feb 3, 1978 (Passed Congress).
You are reading a bill enacted 16,552 days ago. In the intervening time subsequent legislation may have amended or repealed the provisions below.
PUBLIC LAW 95-224—FEB. 3, 1978 92 STAT. 3
Public Law 95-224
95th Congress
An Act
To distinguish Federal grant and cooperative agreement relationships from Feb. 3, 1978
Federal procurement relationships, and for other purposes. [H.R. 7691]
Be it enacted hy the Senate and House of Representatives of the
United States of America in Congress assembled, That this Act be Federal Grant
cited as the "Federal Grant and Cooperative Agreement Act of and Cooperative
1977". Agreement Act of
1977.
FINDINGS AND PURPOSE
41 u s e 501 note.
SEC. 2. (a) The Congress finds that— 41 u s e 501.
(1) there is a need to distinguish Federal assistance relation-
ships from Federal procurement relationships and thereby to
standardize usage and clarify the meaning of the legal instru-
ments which reflect such relationships;
(2) uncertainty as to the meaning of such terms as "contract",
"grant", and "cooperative agreement" and the relationships they
reflect causes operational inconsistencies, confusion, inefficiency,
and waste for recipients of awards as well as for executive agen-
cies; and
(3) the Commission on Government Procurement has docu-
mented these findings and concluded that a reduction of the exist-
ing inconsistencies, confusion, inefficiency, and waste is feasible
and necessary through legislative action.
(b) The purposes of this Act are—
(1) to characterize the relationship between the Federal Gov-
ernment and contractors. State and local governments, and other
recipients in the acquisition of property and services and in the
furnishing of assistance by the Federal Government so as to pro-
mote a better understanding of Federal spending and help elimi-
nate unnecessary administrative requirements on recipients of
Federal awards;
(2) to establish Government-wide criteria for selection of appro-
priate legal instruments to achieve uniformity in the use by the
executive agencies of such instruments, a clear definition of the
relationships they reflect, and a better understanding of the
responsibilities of the parties;
(3) to promote increased discipline in the selection and use of
types of contract, grant agreement, and cooperative agreements
' and to maximize competition in the award of contracts and
encourage competition, where deemed appropriate, in the award
of grants and cooperative agreements; and
(4) to require a study of the relationship between the Federal
Government and grantees and other recipients in Federal assist-
ance programs and the feasibility of developing a comprehensive
system of guideline for the use of grant and cooperative agree-
ments, and other forms of Federal assistance in carrying out such
programs.
92 STAT. 4 PUBLIC LAW 95-224—FEB. 3, 1978
DEFINITIONS
41 use 502. SEC. 3. As used in this Act, the term—
(1) "State government" means any of the several States of the
United States, the District of Columbia, the Commonwealth of
Puerto Rico, any territory or possession of the United States, any
agency or instrumentality of a State, and any multi-State,
regional, or interstate entity which has governmental functions;
(2) "local government" means any unit of government within
*' • a State, a county, municipality, city, town, township, local public
authority, special district, intrastate district, council of govern-
, , ments, sponsor group representative organization, other inter-
. : state government entity, or any other instrumentality of a local
government;
(3) "other recipient" means any person or recipient other than
a State or local government who is authorized to receive Federal
assistance or procurement contracts and includes any charitable
or educational institution;
(4) "executive agency" means any executive department as
defined in section 101 of title 5, United States Code, a military
department as defined in section 102 of title 5, United States Code,
an independent establishment as defined in section 104 of title 5,
United States Code (except that it shall not include the General
Accounting Office), a wholly owned Government corporation;
and
(5) "grant or cooperative agreement" does not include any
agreement under which only direct Federal cash assistance
to individuals, a subsidy, a loan, a loan guarantee, or insurance is
provided.
USE OF CONTRACTS
41 use 503. SEC. 4. Each executive agency shall use a type of procurement con-
tract as the legal instrument reflecting a relationship between the
Federal Government and a State or local government or other
recipient—
(1) whenever the principal purpose of the instrument is the
acquisition, by purchase, lease, or barter, of property or services
for the direct benefit or use of the Federal Government; or
(2) whenever an executive agency determines in a specific
instance that the use of a type of procurement contract is
appropriate.
USE OF GRANT AGREEMENTS
41 use 504. SEC. 5. Each executive agency shall use a type of grant agreement as
the legal instrument reflecting a relationship between the Federal Gov-
ernment and a State or local government or other recipient whenever—
Transfers. (1) the principal purpose of the relationship is the transfer of
money, property, services, or anything of value to the State or
local government or other recipient in order to accomplish a pub-
lic purpose of support or stimulation authorized by Federal
' statute, rather than acquisition, by purchase, lease, or barter, of
property or services for the direct benefit or use of the Federal
Government; and
(2) no substantial involvement is anticipated between the
executive agency, acting for the Federal Government, and the
State or local government or other recipient during performance
of the contemplated activity.
PUBLIC LAW 95-224—FEB. 3, 1978 92 STAT. 5
USE OF COOPERATIVE AGREEMENTS
SEC. 6. Each executive agency shall use a type of cooperative agree- 41 USC 505.
ment as the legal instrument reflecting a relationship between the Fed-
eral Government and a State or local government or other recipient
whenever—
(1) the principal purpose of the relationship is the transfer of Transfers,
money, property, services, or anything of value to the State or
local government or other recipient to accomplish a public pur-
pose of support or stimulation authorized by Federal statute,
rather than acquisition, by purchase, lease, or barter, of property
or services for the direct benefit or use of the Federal Govern-
ment; and
(2) substantial involvement is anticipated between the execu-
tive agency, acting for the Federal Government, and the State or
local government or other recipient during performance of the
contemplated activity.
AUTHORIZATIONS
SEC. 7. (a) Notwithstanding any other provision of law, each execu- Contracts, grant
tive agency authorized by law to enter into contracts, grant or coopera- or cooperative
tive agreements, or similar arrangements is authorized and directed to agreements.
enter into and use types of contracts, grant agreements, or cooperative 41 USC 506.
agreements as required by this Act.
(b) The authority to make contracts, grants, and cooperative agree- Scientific
ments for the conduct of basic or applied scientific research at non- research.
profit institutions of higher education, or at nonprofit organizations
whose primary purpose is the conduct of scientific research shall
include discretionary authority, when it is deemed by the head of the
executive agency to be in furtherance of the objectives of the agency,
to vest in such institutions or organizations, without further obliga-
tion to the Government, or on such other terms and conditions as
deemed appropriate, title to equipment or other tangible personal
property purchased with such funds.
STUDY OF FEDERAL ASSISTANCE PROGRAMS
SEC. 8. The Director of the Office of Management and Budget, in 41 USC 507.
cooperation with the executive agencies, shall undertake a study to
develop a better understanding of alternative means of implementing
Federal assistance programs, and to determine the feasibility of devel-
oping a comprehensive system of guidance for Federal assistance
programs. Such study shall include a thorough consideration of the Contents.
findings and recommendations of the Commission on Government
Procurement relating to the feasibility of developing such a system.
The Director shall consult with and to the extent practicable, involve Consultation.
representatives of the executive agencies, the Congress, the General
Accounting Office, and State and local governments, other recipients
and other interested members of the public. The result of the study Report to
shall be reported to the Committee on Government Operations of the congressional
House of Representatives and the Committee on Governmental Affairs committees.
of the Senate at the earliest practicable date, but in no event later than
two years after the date of enactment of this Act. The report on the
study shall include (1) detailed descriptions of the alternative means
of implementing Federal assistance programs and of the circumstances
in which the use of each appears to be most desirable, (2) detailed
92 STAT. 6 PUBLIC LAW 95-224—FEB. 3, 1978
descriptions of the basic characteristics and an outline of such compre-
hensive system of guidance for Federal assistance programs, the devel-
opment of which may be determined feasible, and (3) recommendations
concerning arrangements to proceed with the full development of such
comprehensive system of guidance and for such administrative or
statutory changes, including changes in the provisions of sections 3
through 7 of this Act, as may be deemed appropriate on the basis of the
findings of the study.
GUIDELINES
41 use 508. SEC. 9. The Director of the Office of Management and Budget is
authorized to issue supplementary interpretative guidelines to promote
consistent and efficient use of contract, grants agreement, and coopera-
tive agreements as defined in this Act.
REPEALS AND SAVINGS PROVISIONS
Repeal; effective SEC. 10. (a) The Act entitled "An Act to authorize the expenditure
date. of funds through grants for support of scientific research, and for other
purposes", approved September 6,1958 (72 Stat. 1793; 42 U.S.C. 1891
and 1892), is repealed, effective one year after the date of enactment of
this Act.
41 u s e 501 note. (b) Nothing in this Act shall be construed to render void or voidable
any existing contract, grant, cooperative agreement, or other contract,
grant, or cooperative agreement entered into up to one year after the
date of enactment of this Act.
41 u s e 509. (c) Nothing in this Act shall require the establishment of a single
relationship between the Federal Government and a State or local
government or other recipient on a jointly funded project, involving
funds from more than one program or appropriation where different
relationships would otherwise be appropriate for different components
of the project.
Excepted (d) The Direxitor of the Office of Management and Budget may
transactions. except individual transactions or programs of any executive agency
41 u s e 501 note. from the application of the provisions of this Act. This authority shall
Expiration date. expire one year after receipt by the Congress of the study provided for
in section 8 of this Act.
Approved February 3, 1978.
LEGISLATIVE HISTORY:
HOUSE REPORT No. 95-481 (eomm. on Government Operations).
SENATE REPORT No. 95-449 accompanying S. 431 (eomm. on Governmental Affairs).
CONGRESSIONAL RECORD:
Vol. 123 (1977): Sept. 27, considered and passed House.
Oct. 1, considered and passed Senate, amended, in lieu of S.
431.
Vol. 124 (1978): Jan. 19, House agreed to Senate amendment.
