OMB No. 0581-0240

Sheep Production and Marketing

Grant Program

Fiscal Year 2026 Notice of Funding Opportunity

Funding Opportunity Number: USDA-AMS-TM-SPMGP-G-26-0007

Publication Date: July 29, 2026

Application Due Date: 11:59 PM Eastern Time on October 2, 2026

TABLE OF CONTENTS

1.0 Basic Information

1.1 Executive Summary

1.2 2026 Highlights and Changes

1.3 Available Funding

1.4 Federal Award Period Duration and Size

1.5 Tips for Applicants

1.6 Timing to Obtain & Submit Grants.gov Required Elements

1.7 Agency Contact Information

1.8 Stakeholder Input

2.0 Eligibility

2.1 Eligible Applicants

2.2 Partners and Collaborators

2.3 Cost Sharing

3.0 Program Description

3.1 Legislative Authority

3.2 Purpose

3.3 Program Implementation

3.4 Performance Measures

3.5 Allowable and Unallowable Cost and Activities

3.6 Program Administration Costs

3.7 Indirect Costs for Applicants and Subapplicants

3.8 Coordinator Meeting Travel

4.0 Application Contents and Format

4.1 Application Checklist

4.2 SF-424 Application for Federal Assistance

4.3 SF-424 Budget information for Non-Construction Programs

4.4 Project Narrative

4.5 Letters of Commitment From Partners and Collaborators

4.6 Negotiated Indirect Cost Rate Agreement (NICRA)

5.0 Submission Requirements and Deadlines

5.1 Electronic Application Package

5.2 Submission and Receipt Procedures and Requirements

5.3 Additional Submission Details

5.4 Submission Date and Time

5.5 Intergovernmental Review

6.0 Application Review Information

6.1 Initial Review (Initial Screening)

6.2 Review Criteria (Technical Review)

6.3 Administrative Review (Selection Process and Risk Review)

7.0 Award Notices

7.1 Successful Applicants

7.2 Unsuccessful Applicants

8.0 Post-Award Requirements and Administration

8.1 Administrative and National Policy Requirements

8.2 Reporting Requirements

8.3 Acknowledgment of USDA Support

9.0 Other Information

9.1 Civil Rights Obligations/Non-Discrimination

9.2 Accessibility Accommodation

9.3 Accommodations and Complaints

9.4 Freedom of Information Act Requests

9.5 Paperwork Reduction

1.0 BASIC INFORMATION

Federal Agency: Agricultural Marketing Service (AMS)

Funding Opportunity Title: Sheep Production and Marketing Grant Program

Announcement Type: Initial

Funding Opportunity Number: USDA-AMS-TM-SPMGP-G-26-0007

Assistance Listing Number: 10.173

Type of Federal Assistance: Grant Agreements will be used to provide a federal award to successful applicants.

Type of Application: New applications will be evaluated competitively using the selection process and evaluation criteria described in Section 6.

Application Deadline: October 2, 2026, through Grants.gov at 11:59 pm Eastern Time. Applications received after these deadlines will not be considered for funding.

1.1 EXECUTIVE SUMMARY

The U.S. Department of Agriculture (USDA), Agricultural Marketing Service (AMS), request applications for the fiscal year (FY) 2026 Sheep Production and Marketing Grant Program (SPMGP). AMS will competitively award funds to strengthen and enhance the production and marketing of U.S. sheep and sheep products through the improvement of infrastructure, business, and resource development, and the development of innovation approaches to solve long-term needs.

Approximately $2.4 million is available to fund applications under this solicitation.

This announcement identifies the eligibility criteria for SPMGP projects and applicants, and the application forms and associated instructions needed to apply for an SPMGP award. All applications will be reviewed using merit and evaluation procedures described in section 6.0.

AMS will award these grants competitively to at least one national entity whose mission is consistent with the purpose of the grant program and that meets the requirements of the program. The selected grant recipient(s) will provide management, oversight, consultation and expertise necessary to advance the purpose and activities of the program, primarily through a subaward program and optional direct programming to support the sheep sector. All applicants must demonstrate their capacity to provide subawards to other entities for projects over a broad relevant geographic coverage area.

This NOFO is not for applicants seeking subawards to conduct projects under this program.

1.2 2026 HIGHLIGHTS AND CHANGES

Below are highlights of major changes to the program since it first launched in 2019. As a result, this NOFO has been modernized and updated in several key areas since the original Request for Applications, including:

• AMS will competitively award funds to one or more national entities.

• AMS is providing updated performance indicators in this Notice of Funding Opportunity (NOFO) (formerly known as a Request for Applications or RFA).

• There is no cost share requirement for recipients; a 25 percent cost share is required from subrecipients.

https://sam.gov/workspace/assistance/fal/479400dd158f4a299600ce2fe4dbbba3/view http://www.grants.gov/

• This NOFO was reorganized following the changes to the Uniform Guidance, Appendix I to Part 200, Title

2. The reorganization lists basic program information upfront and the application submission requirements at the end.

• The AMS General Terms and Conditions (AMS GT&C) have been updated to reflect changes to the Uniform Guidance (2 CFR Part 200) and to align with USDA General Terms and Conditions (USDA GT&C) for Federal Awards that were published on December 31, 2025. Both sets of General Terms and Conditions set out requirements applicable to recipients.

o AMS GT&C provide 2 CFR Part 200 and USDA GT&C citations to aid recipients on requirements.

• Specific AMS updates reflecting 2024 Uniform Guidance updates include those in sections 6.3.1 Risk Review, 3.5 Allowable and Unallowable Cost and Activities, and 8.1 Administrative and National Policy Requirements, as included in the AMS and USDA T&Cs.

1.3 AVAILABLE FUNDING

Anticipated Available Funding: Approximately $2.4 million. Enactment of future legislation may affect the availability or level of funding for this program. There is no commitment by USDA to fund any particular application, to guarantee minimum funding levels, or to make a specific number of awards.

Anticipated Number of Awards: One or more awards.

Cost Share Requirement: This year’s applications must include a mandatory cost share for subrecipients in the form of cash or in-kind contributions equal to 25 percent of the amount of Federal funds being requested. This cost share requirement applies to each subaward project and to recipient-led projects. There is no cost share requirement for the primary applicant’s work to manage the subaward program.

1.4 FEDERAL AWARD PERIOD DURATION AND SIZE

AMS expects applicants to complete their projects within the required performance period of the grant. AMS encourages applicants to use the full performance period to allow enough time to complete projects. However, a project may be completed before the scheduled performance period end date. The applicant must indicate the start date and end date on Block 17 of the SF-424 “Application for Federal Assistance.”

Applicants may not request less than or more than the respective minimum/maximum award amounts.

Applicants must justify the requested award funding amounts within the SPMGP Project Narrative.

Duration (Months)

Start Date End Date Minimum Award Maximum Award

36 September 30, 2026* September 29, 2029* $1,000,000 $2,400,000

*Dates are approximate. Start dates are set at the time of the award.

Recipients are encouraged to prioritize awarding and expending subaward funds during the first year of the project period to support timely implementation of the program. If subaward funds remain available, recipients may conduct an additional subaward cycle within the 36-month duration period consistent with the proposed work plan, project period, and funding availability. The application must clearly describe the proposed implementation timeline and subaward schedule.

https://www.ecfr.gov/current/title-2/part-200/appendix-Appendix%20I%20to%20Part%20200 https://www.ecfr.gov/current/title-2/part-200/appendix-Appendix%20I%20to%20Part%20200 https://www.ams.usda.gov/services/grants/terms-and-conditions https://www.usda.gov/about-usda/general-information/staff-offices/office-chief-financial-officer/federal-financial-assistance-policy/usda-general-terms-and-conditions https://www.ams.usda.gov/sites/default/files/media/SPMGP_Project_Narrative_Form.docx

1.5 TIPS FOR APPLICANTS

• To submit your application electronically in Grants.gov, you must:

o Have a Unique Entity Identifier (UEI) and a Taxpayer Identification Number (TIN);

o Be registered in SAM.gov;

o Provide your UEI number and TIN on your application; and o Maintain an active and current SAM registration.

• Allow time for Registration Completion:

o The organization registration process can take as long as four weeks.

o Complete registration as early as possible to meet all deadlines. See section 5.0 for more information.

• Review General Terms and Conditions:

o Review the AMS GT&C to understand allowable and unallowable costs.

o Review the USDA GT&C.

• Ensure File Compatibility:

o Use latest version of Adobe Reader that is compatible with Grants.gov software.

• File Naming and Size:

o Limit file names to 50 characters or fewer.

o Do not use special characters in file names (e.g. $, %, &, *, Spanish "ñ", etc.).

• Attachment Upload:

o Use the “Add Attachments” button in Grants.gov for upload.

o Do not use the paperclip icon in Adobe Reader.

• File Security and Formatting:

o Do not password-protect files.

o Accept all tracked changes in documents before submission.

• Accurate Data Entry:

o Verify that your UEI number is correctly entered on the SF-424 form cover page.

• Grants.gov Resources for Support:

o Applicant FAQs o Workspace Overview

By following these steps and recommendations, applicants can reduce errors, meet deadlines, and ensure compliance with submission requirements.

1.6 TIMING TO OBTAIN & SUBMIT GRANTS.GOV REQUIRED ELEMENTS

Required Action Timing to Obtain/Submit

AMS Deadline to receive final application and all supporting materials through Grants.Gov

October 2, 2026 – 11:59 p.m. Eastern Time

Obtaining Your Organization’s UEI Number (if you do not already have one) 7-10 business days https://www.grants.gov/ https://sam.gov/ https://www.ams.usda.gov/services/grants/terms-and-conditions https://www.usda.gov/about-usda/general-information/staff-offices/office-chief-financial-officer/federal-financial-assistance-policy/usda-general-terms-and-conditions https://www.grants.gov/applicants/adobe-software-compatibility.html https://www.grants.gov/applicants/applicant-faqs.htm https://www.grants.gov/applicants/workspace-overview.html

Required Action Timing to Obtain/Submit

Establishing an Active SAM.gov Account (if you do not already have one) Up to 4 weeks

Obtaining a TIN/EIN (if you do not already have one) Up to 2 weeks

Creating your Grants.gov profile and registering your Authorized Organizational Representative (AOR) authorization

Up to 4 weeks

1.7 AGENCY CONTACT INFORMATION

1.7.1 AMS PROGRAM CONTACTS

After closely reviewing this NOFO in its entirety, applicants and other interested parties that have questions are encouraged to contact the SPMGP program staff by e-mail at IPPGrants@usda.gov.

AMS provides resources and information on the SPMGP website that may be helpful to applicants, including descriptions of funded projects, and required application forms. AMS staff are available to provide timely technical assistance related to the application process. Staff cannot provide feedback on the merits of an application.

Sheep Production and Marketing Grant Program USDA, Agricultural Marketing Service 1400 Independence Avenue, SW Room 1510-S South Building Stop 0264 Washington, DC 20250-0264 https://www.ams.usda.gov/spmgp

1.7.2 GRANTS.GOV CONTACT INFORMATION

All questions regarding Grants.gov technical assistance must be directed to Applicant Support. Applicants may also call the 24/7 (excluding federal holidays) toll-free support number 1-800-518-4726 or email support@grants.gov.

1.8 STAKEHOLDER INPUT

AMS seeks comments about this NOFO. We will consider the comments in developing the next NOFO for the program. Written comments may be submitted to: AMSGrants@usda.gov. This email address is intended only for receiving comments regarding this NOFO and not for requesting information or forms. In your email subject line, please state that you are responding to the Sheep Production and Marketing Program NOFO.

2.0 ELIGIBILITY

2.1 ELIGIBLE APPLICANTS

All applicants must be domestic entities owned, operated, and located within the 50 United States, the District of

Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, and the

Commonwealth of the Northern Mariana Islands, or Tribal Governments.

mailto:IPPGrants@usda.gov https://www.ams.usda.gov/services/grants/spmgp https://www.ams.usda.gov/spmgp https://www.grants.gov/support mailto:support@grants.gov mailto:AMSGrants@usda.gov

Eligible entities are national entities with capacity to manage the program and with demonstrated support and engagement with the sheep industry, including non-profit, higher education institutions, government entities, or business entities.

An eligible applicant must be able to demonstrate capacity to implement and manage a competitive subaward program funding others to conduct projects that meet the goals of the program. This includes competitive application solicitation, application review, award, oversight, and reporting.

2.2 PARTNERS AND COLLABORATORS

Applicants may engage partners or collaborators, including through subcontracts or subagreements, to support implementation activities. These activities may include, but are not limited to, conducting outreach to potential applicants, technical assistance, application support, or other program administration activities related to the competitive subaward process. Partners and collaborators may come from private or public, for-profit, or nonprofit entities.

• A partner is a relationship involving close cooperation with the applicant and having specified and joint rights and responsibilities in the management of the project.

• A collaborator is a person or an organization unaffiliated with the applicant that cooperates with the applicant in the conduct of the project and is not immediately connected to the management of the project.

Applicants must disclose any potential conflicts of interest to the USDA awarding agency or pass-through entity, including organizational conflicts of interest relating to relationships with a parent company, affiliate, or subsidiary organization, shared or overlapping governance structure, or other relationship between or among the applicant and its partners and collaborators. The relationships must follow section 1.7 of the USDA GT&C and may be subject to AMS review and approval.

Applicants are required to show evidence of existing community or industry support and engagement. (see section 4.5)

2.3 COST SHARING

2.3.1 COST SHARING FOR ELIGIBLE APPLICANTS

Primary award recipients (selected applicants under this NOFO) are not required to provide a cost share as part of their application associated with the management of the subaward program. A cost share is required at the subaward level as described in section 2.3.2 (Note: Cost sharing is sometimes referred to as matching funds.) If the recipient also elects to conduct a recipient-led project (as described in the last paragraph in section 3.3), the recipient will be subject to the same cost share requirements on that project amount, as outlined in section

2.3.2.

2.3.2 COST SHARING FOR SUBAWARDS

When establishing subawards, the applicant must ensure that each eligible subaward entity provides funds in the form of cash or in-kind equal to 25 percent of the total federal funds received under the subaward.

Cash contributions are generally defined as actual monetary funds (not the ‘value’ of someone’s time/effort) from the applicant’s general revenue/reserves/savings/line of credit, or third-party partner(s), or other non-https://www.usda.gov/about-usda/general-information/staff-offices/office-chief-financial-officer/federal-financial-assistance-policy/usda-general-terms-and-conditions

Federal grants. The applicant must be able to track and show the source of the cost share, and that the funding source will be dedicated entirely to the grant project, and produce records to that effect (for example, taking the cash cost share in your accounting system, or from your partner, and placing it into a special ‘grant project’ account).

In-kind contributions are generally defined as the value of goods or services provided by the contributor for the benefit of the grant project, where no funds transferred hands. For example, a partner, such as a Tribal community member, may volunteer their professional expertise as an in-kind contribution to the project as described in 2 CFR 200.306(e).

Cost sharing must be in the form of allowable direct or indirect costs. Only subapplicants with a valid Negotiated

Indirect Cost Rate Agreement (NICRA) can use indirect cost as a source of cost sharing (see section 3.7.1)

All cost sharing contributions must be committed or secured at the time a subapplicant is selected for an award.

An award will not be issued unless all cost-sharing funds over the life of the grant are secured. Additional anticipated cost sharing funds not in place by the time the project starts cannot be counted toward the cost sharing requirement.

Cost share contributions (either cash or in-kind) cannot be used for this program if they are already being used toward satisfying a cost share requirement under any other Federal grant agreement.

Subapplicants may not use Federal funds of any kind (as defined in 2 CFR 200.306(b)(5)) or program income as cost share. Subapplicants cannot use program income (as defined in 2 CFR 200.80) or any other Federal funds as a cost share contribution. Program income is defined as income directly generated by a supported activity or earned as a result of the Federal award during the period of performance (2 CFR 200.1). Unless otherwise stated in the NOA provisions section, AMS authorizes the use of program income through the additive method (2 CFR

200.307(b)(2)). Any program income generated during the grant period must be used to further the objectives of the project and under the conditions of the award.

Refer to 2 CFR 200.306 for additional Federal requirements and definitions, including the basis for determining the value of cash and in-kind contributions.

3.0 PROGRAM DESCRIPTION

3.1 LEGISLATIVE AUTHORITY

The Sheep Production and Marketing Grant Program (SPMGP) is authorized under section 209 of the Agricultural

Marketing Act of 1946, as amended and is codified in (7 U.S.C. 1627a).

3.2 PURPOSE

The purpose of SPMGP is to support projects that strengthen and enhance the production and marketing of sheep and sheep products in the United States. This includes improving infrastructure, business, and resource development, and the development of innovative approaches to solve long-term needs.

The SPMGP seeks to develop solutions for practical problems across the United States and address the needs of the entire sheep industry, while focusing on the measurable benefits for sheep producers. The program encourages collaboration among sheep industry organizations and aims to reduce duplication of efforts among participating organizations.

https://www.ecfr.gov/current/title-2/part-200/section-200.306#p-200.306(e) https://www.ecfr.gov/current/title-2/part-200/section-200.306#p-200.306(b)(5) https://www.ecfr.gov/on/2017-01-03/title-2/subtitle-A/chapter-II/part-200/subpart-A/subject-group-ECFR2a6a0087862fd2c/section-200.80 https://www.ecfr.gov/current/title-2/part-200#p-200.1(Program%20income) https://www.ecfr.gov/current/title-2/part-200/section-200.307#p-200.307(b)(2) https://www.ecfr.gov/current/title-2/part-200/section-200.307#p-200.307(b)(2) https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/section-200.306 http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1627a&num=0&edition=prelim#sourcecredit

3.3 PROGRAM IMPLEMENTATION

AMS will issue at least one grant award to an eligible entity with experience in grants implementation and demonstrated expertise in sheep production or marketing. Grant awards will be issued through a Grant

Agreement.

The selected grant recipient(s) will be responsible for managing and overseeing a competitive subaward program, including providing consultation and subject matter expertise to subrecipients in support of sheep production, marketing, and related industry development activities.

Applicants must submit a proposal describing their approach to designing and administering a competitive subaward program as described in section 3.3.1.

In addition to administering the competitive subaward program, selected recipients may also directly conduct a recipient-led project(s) as described in section 3.3.4, subject to USDA review, revision, and approval. Recipient-led projects are separate from, and not subject to, the recipient’s subaward competition process; must support the goals and eligible activities of the program; and must be submitted to AMS as part of the subaward application package. Recipients may use up to $150,000 of federal grant funds for recipient-led projects of up to

24 months in duration. Funding for recipient-led projects must come from the portion of award funds allocated for the subaward program. Recipient-led projects are subject to the cost share required for subrecipients and as outlined in section 2.3.2.

3.3.1 RECIPIENT RESPONSIBILITIES FOR MANAGING SUBAWARDS

The selected recipients are responsible for the management and administrative oversight of all subawards, including financial management, performance monitoring, enforcement of subaward requirements, and conducting outreach to potential applicants and stakeholders.

This includes, but is not limited to:

• Designing and administering a competitive Sheep subaward program;

• Developing and issuing subaward solicitations;

• Conducting outreach to and engaging with a wide array of stakeholders to ensure broad participation in applying for funding;

• Recruiting and training reviewers for application review;

• Managing the subaward review and selection process;

• Ensuring fair, open, and conflict-free competition;

• Making subaward grants to selected subapplicants;

• Monitoring subrecipient performance in accordance with 2 CFR 200.332;

• Maintaining complete documentation of funding decisions and program activities;

• Ensuring compliance with all applicable federal requirements, including the AMS GT&C and USDA GT&C;

and

• Collecting project data, including outcomes, and submitting reports to AMS.

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3.3.2 SUBAWARD PROCESS

The selected primary award recipients are encouraged to competitively distribute subaward funds within the first year of the award to support timely implementation of the program. If subaward funds remain available, recipients may conduct an additional subaward cycle within the 36-month duration period consistent with the proposed work plan, project period, and funding availability. The recipient(s) must develop and issue a subaward solicitation that includes all information necessary for eligible entities to prepare applications that align with the purpose and eligible activities of the program. The recipient(s) must provide their solicitation document to AMS for confirmation of compliance prior to issuance. The recipient(s) may also consult with AMS staff regarding the solicitation process, such as to confirm project eligibility and/or obtain guidance on required information to collect from potential subrecipients in their project narratives.

The recipients must use the AMS provided subrecipient project narrative template to collect required information from potential subaward applicants. The subrecipient narrative must include all requested information in support of their proposed project.

The subaward review process must follow standard, documented procedures and include an independent review panel of subject-matter experts or other qualified individuals, overseen by appropriate officials, where applicable. The review process must be fair, impartial, and free of conflicts of interest in accordance with 2 CFR

200.112, 2 CFR 400.2 and described in AMS’ Conflict of Interest (COI) Policy. All reviewers must disclose potential conflicts and sign conflict of interest certification forms.

Recipients must disclose any potential conflicts of interest, in writing, to AMS. Subrecipients must also disclose any potential conflicts of interest, in writing, to the recipient. This includes organizational conflicts of interest relating to relationships with a parent company, affiliate, or subsidiary organization, shared or overlapping governance structure, or other relationship between or among the applicant and its partners and collaborators.

The relationships may be subject to AMS review and approval. This is also described in the AMS COI Policy.

The recipient(s) must maintain complete documentation supporting funding decisions, including approvals, denials, deferrals, or other determinations. All records must be maintained in a centralized and accessible program file and be available to AMS for review upon request. Reviews must be conducted in accordance with

USDA regulations at 2 CFR 200.332.

Prior to issuing any subawards, the recipients must submit the proposed subaward package to AMS. The package must include all recommended subaward projects and at a minimum:

• Subapplicant organization legal name;

• Subaward amount and funding period requested;

• Subrecipient project narrative (utilizing required template);

• Project Budget and Budget narrative;

• Cost Share Verification Letter(s); and

• Any additional supporting documentation required by AMS.

This information can be compiled and submitted via email as a single PDF, MS Word, or MS Excel documents.

The package must be reviewed and approved by AMS before informing the subapplicants of their subaward or making any public announcements. AMS will provide feedback and will notify the recipient of clearance for the recipient to move forward with awarding. After that, recipients must notify all subapplicants of the outcome of the competitive review process.

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3.3.3 DEFINITION OF A PROJECT

A subaward project is a set of related activities designed to achieve a specific, defined goal within a fixed period of time. Projects must follow a planned and organized approach and adhere to the established cost, scope, and performance requirements. Projects use resources that are specifically allocated to the work and typically involve a defined project team. Unlike ongoing operations, a project has a clear beginning and end. Projects funds under this program may be implemented by the applicant and through competitively selected subawards.

For subawards, recipients must ensure a fair and open competitive process for selecting subapplicants, clear documentation of selection criteria and decision-making, and appropriate oversight and monitoring of subapplicant performance. Projects must demonstrate a measurable benefit to the sheep industry and should avoid duplication of existing efforts while promoting coordination among industry stakeholders.

Examples of eligible projects include, but are not limited to:

• Researching new grazing or production methods.

• Developing product expansion and marketing initiatives.

• Invest in shared infrastructure (e.g. cold storage, labelling equipment) for the benefit of multiple producers.

• Providing training or technical assistance to support industry growth.

• Conducting targeted promotional campaigns for sheep products.

3.3.4 ELIGIBLE ACTIVITIES FOR SUBAWARDS AND RECIPIENT-LED PROJECTS

Eligible subaward or recipient-led project activities include:

• Production Capacity o Engage and support current and potential sheep producers to increase production capacity, address entry barriers, and meet established and growing demand.

o Expand and strengthen sheep production capacity by engaging all industry stakeholders in addressing production practices, business management, and marketing of sheep and sheep products.

• Marketing & Marketing Development o Support marketing and market development of sheep and sheep products, including outreach, and market analysis to expand access to local, regional, and national markets.

• Technical Assistance & Training o Provide training, technical assistance, and education to support sheep producers to improve production practices, business management, and market readiness.

• Innovation & Product Development o Develop and implement innovative approaches to address constraints in production, processing, product development, or in expanding markets.

o Develop and implement national or regional strategies to strengthen the competitiveness and sustainability of U.S sheep industry, including development of new products and value-added product development.

• Animal Health & Risk Management o Develop and implement risk management and animal health strategies, including disease prevention and mitigation aligning with industry needs.

• Infrastructure & Supply Chain o Strengthening supply chain infrastructure and coordination and efficiency, including addressing bottlenecks and constraints for processing capacity, distribution, and market access.

3.3.5 INELIGIBLE ACTIVITIES

Subaward projects are not eligible for funding if the proposed activities involved:

• Purchasing land, buildings, or facilities or, any interest therein.

• New construction and/or structural changes to an existing building /facility (see 41 CFR 60-1.3 for definition of “Construction work”).

• Are for agricultural production-related expenses, including purchase of feed, farm equipment, tools, materials, supplies, and other related costs (see section 3.5).

• Depend upon the completion of another project or the receipt of another grant.

• Include legal fees and other costs associated with establishing a business or organization.

• Duplicate activities that are already being funded by another Federal award program.

• Expenses that have been or will be reimbursed under any other Federal, State, or local government funding.

• Provide capital for revolving loan funds or seed equity funds.

• Exclude or do not equally support producers, vendors, or other relevant entities that are not members or affiliates of the applicant/funded grant recipient(s) or subrecipients.

3.3.6 SUBAWARD FUNDING

Recipients must allocate at least 80 percent of their total award amount to subawards that benefits sheep producers, with subaward amounts as follows:

Duration (Months) Minimum Award Amount Maximum Award Amount

24 $25,000 $150,000

The period of performance for each subaward shall not exceed two years (24 months). Subawards may not be less than $25,000 or more than $150,000.

Note: Subapplicants should not apply directly to this NOFO. Subaward opportunities will be made available at a later date through the competitive process administered by the selected recipient(s) of awards made under this NOFO.

https://www.ecfr.gov/current/title-41/section-60-1.3

3.3.7 OUTREACH ACTIVITIES TO ENSURE SUBAWARD AWARENESS

Recipients are expected to conduct outreach and engage a variety of stakeholders to help ensure broad participation in applying and receive funding for projects that strengthen and enhance the production and marketing of U.S. sheep and sheep products.

3.4 PERFORMANCE MEASURES

To evaluate and report on the outcomes of the SPMGP program on national scale, AMS collects information on performance measures. Each subapplicant and subaward submitted in the subaward package must include target numbers for all applicable outcome and indicators listed in the Achievability section of the Project

Narrative (see section 4.4).

Subrecipients are responsible for reporting progress toward selected outcomes and indicators to the prime recipient. Recipients are responsible for consolidating subrecipient performance data and submitting required information to AMS through Annual Performance Reports and provide final results in the Final Performance

Report. Please refer to the AMS Grant Performance Measures webpage and SPMGP Outcomes and Indicators for more information.

3.5 ALLOWABLE AND UNALLOWABLE COST AND ACTIVITIES

All AMS awards are subject to the applicable laws, federal cost principles, USDA regulations, and the terms and conditions and other considerations described in the AMS GT&C and the USDA GT&C.

SPMGD funds may not be used to support the procurement of unmanned aircraft systems to process, store, or transmit Federal information (as defined in OMB Circular A-130) unless the grant is specifically available for procurement of such equipment and grantees describe in their application how they will comply with the information security requirements outlined in Appendix B of M-26-02 Ensuring Government Use of Secure

Unmanned Aircraft Systems and Supporting United States Producers. This includes developing a risk-based approach to applying those requirements to procurement solicitations to potential vendors under the resulting

Federal award. If such procurement is approved, specific information security requirements may be included in the terms and conditions of the grant to ensure that the grantees will incorporate those requirements in procurement solicitations of unmanned aircraft systems under the Federal award.

Applicants that have questions concerning the allowability of costs after reviewing this document should contact

AMS staff using the contact information listed under section 1.7.

3.6 PROGRAM ADMINISTRATION COSTS

Administrative costs are costs for the recipient to conduct their subaward management activities, including the subaward outreach, selection process, and award management. These include direct and indirect costs and are limited to 20 percent of the total Federal funds provided under the award to the recipient.

Recipients may use funds for administrative costs such as monitoring subrecipients, ensuring recipient and subrecipient compliance with program statute, regulations and requirements, and grant management training.

Administrative cost funds may also support non-monetary direct technical assistance relating to subaward applications or project implementation to subapplicants and subrecipients. Technical assistance may be https://www.ams.usda.gov/services/grants/performance-measures https://www.ams.usda.gov/sites/default/files/media/SPMGP_Outcomes_and_Indicators.pdf https://www.ams.usda.gov/services/grants/terms-and-conditions https://www.usda.gov/about-usda/general-information/staff-offices/office-chief-financial-officer/federal-financial-assistance-policy/usda-general-terms-and-conditions https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fbidenwhitehouse.archives.gov%2Fwp-content%2Fuploads%2Flegacy_drupal_files%2Fomb%2Fcirculars%2FA130%2Fa130revised.pdf&data=05%7C02%7CSarah.BoonieMichaels%40usda.gov%7C019cd9f250164026be8108dec7f6d0f0%7Ced5b36e701ee4ebc867ee03cfa0d4697%7C1%7C0%7C639168060033918199%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=9H1tsslDd76XzZL6Q8tQv6CGcFfI9sX5tOsw74a%2B6Q0%3D&reserved=0 https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.whitehouse.gov%2Fwp-content%2Fuploads%2F2025%2F11%2FM-26-02-Ensuring-Government-Use-of-Secure-Unmanned-Aircraft-Systems-and-Supporting-United-States-Producers.pdf&data=05%7C02%7CSarah.BoonieMichaels%40usda.gov%7C019cd9f250164026be8108dec7f6d0f0%7Ced5b36e701ee4ebc867ee03cfa0d4697%7C1%7C0%7C639168060033946787%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=DSQJcQ06VB5QT0aN%2BfBud1M%2FQ3srnsV7q%2F27nPRGl9s%3D&reserved=0 https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.whitehouse.gov%2Fwp-content%2Fuploads%2F2025%2F11%2FM-26-02-Ensuring-Government-Use-of-Secure-Unmanned-Aircraft-Systems-and-Supporting-United-States-Producers.pdf&data=05%7C02%7CSarah.BoonieMichaels%40usda.gov%7C019cd9f250164026be8108dec7f6d0f0%7Ced5b36e701ee4ebc867ee03cfa0d4697%7C1%7C0%7C639168060033946787%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=DSQJcQ06VB5QT0aN%2BfBud1M%2FQ3srnsV7q%2F27nPRGl9s%3D&reserved=0 provided directly through the recipient organization, through contracting with industry experts, or through subawards with partners and/or collaborators, including cooperative extension services.

Recipients are encouraged to conduct periodic site visits to review project accomplishments and monitor progress, to review financial and performance records, organizational procedures, and financial control systems, and to provide technical assistance to subrecipients as required. These recommended site visits and monitoring activities are meant to support accountability, compliance with applicable Federal awards regulations and requirements, and achievements of subrecipients and are considered administrative costs.

Recipients must ensure they have the capacity of support staff to manage these grant funds and internal controls to administer the award effectively, including timely payment to subrecipients, and that Federal funds are managed appropriately.

3.6.1 DIRECT AND INDIRECT COSTS

Applicants are responsible for presenting direct and indirect costs appropriately and consistently and must not include costs associated with their organization’s indirect cost rate agreement as direct costs. Similarly, a cost may not be allocated as an indirect cost if it is also incurred as a direct cost for the same purpose.

Direct costs are costs that can be identified specifically with a particular award, project or program, service, or other organizational activity or that can be directly assigned to such an activity relatively easily with a high degree of accuracy. Typically, direct costs include, but are not limited to, compensation of employees who work directly on the award to include salaries and fringe benefits, travel, equipment, and supplies directly benefiting the grant-supported project or program.

Indirect costs are defined in section 3.7. Applicants and subapplicants must ensure costs are properly classified as direct or indirect in accordance with 2 CFR 200.414.

The salaries of administrative and clerical staff should typically be treated as indirect costs. However, charging these costs as direct costs may be appropriate when all the following conditions are met:

1. administrative or clerical services are integral to a project or activity;

2. individuals involved can be specifically identified with the project or activity;

3. such costs are explicitly included in the budget or have the prior written approval of the Federal awarding agency; and

4. the costs are not also recovered as indirect costs.

NOTE: Subapplicants who are individuals applying for funds separate from a business or non-profit organization they may operate are not eligible to charge indirect costs to their subaward. Individuals applying for subaward funding may not include any indirect costs in their proposed budget.

3.7 INDIRECT COSTS FOR APPLICANTS AND SUBAPPLICANTS

Indirect costs (also known as “facilities and administrative costs”—defined at 2 CFR 200.1) are costs “incurred for a common or joint purpose benefitting more than one cost objective, and not readily assignable to the cost objectives specifically benefitted, without effort disproportionate to the results achieved).

In accordance with section 4.5 of the USDA GT&C, 2 CFR 200.413 and 2 CFR 200.414(f), a subapplicant that does not have a current negotiated (including provisional) indirect cost rate, except State and Local Government and https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-E/subject-group-ECFRd93f2a98b1f6455/section-200.414 https://www.ecfr.gov/current/title-2/part-200/section-200.1#p-200.1(Indirect%20cost) https://www.usda.gov/about-usda/general-information/staff-offices/office-chief-financial-officer/federal-financial-assistance-policy/usda-general-terms-and-conditions https://www.ecfr.gov/current/title-2/section-200.413 https://www.ecfr.gov/current/title-2/part-200/section-200.414#p-200.414(f)

Indian Tribe Indirect Cost Proposals, may choose to charge a de minimis rate of 15 percent of Modified Total

Direct Costs (MTDC).

The de minimis rate may be used without providing documentation to justify it. An applicant or subapplicant can use the de minimis rate indefinitely for all Federal awards or choose to negotiate a rate, which they may do at any time through their cognizant agency (Federal Agency that provides the largest amount of funding). As described in 2 CFR 200.403, costs must be consistently charged as either direct or indirect costs and may not be double charged or inconsistently charged as both.

All applicants or subapplicants who elect to charge a de minimis rate must use the MTDC as the base. MTDC are defined in 2 CFR 200.1 as all direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $50,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDCs exclude equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs, and the portion of each subaward above $50,000. Other items may be excluded only when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs.

If an applicant or subapplicant has a negotiated indirect cost rate approved by its cognizant agency, the entity must submit a copy of its approved Negotiated Indirect Cost Rate Agreement (NICRA) with its application.

Applicants that would like to negotiate an indirect cost rate must contact their cognizant agency. For assignments of cognizant agencies, see 2 CFR 200.1.

3.7.1 SUBAPPLICANT USE OF INDIRECT COSTS FOR COST SHARING

Subapplicants with a valid NICRA may use indirect cost as cost share, consistent with 2 CFR 200.306(c). The maximum indirect costs allowed for a project may be included in different ways:

1. They can be part of the Federal portion of the budget. For example, if the maximum indirect cost is

$5,000, the applicant can include the full amount in the federal part of the budget.

2. Alternatively, the full $5,000 may be offered as an in-kind cost share contribution if no indirect costs are requested on the Federal portion of the budget. The applicant cannot include the maximum allowable indirect cost as both.

3. The applicant may split the indirect cost allocation between the Federal and non-Federal portions of the budget only if the total amount of indirect costs does not exceed the maximum indirect costs allowed.

For example, they could include $2,500 in the Federal budget and $2,500 as an in-kind contribution.

Alternatively, the applicant may request any other combination that, when combined, does not exceed the maximum indirect costs allowable.

Applicants that elect to use the de minimis indirect cost rate may not use indirect costs as cost share. Refer to 2

CFR 200.413 and 200.414 for additional information on determining if costs charged to the award are direct or indirect.

3.8 COORDINATOR MEETING TRAVEL

Recipients are expected to attend an AMS sponsored grants management meeting during the project’s period of performance. The proposed budget must include travel funds for the Project Coordinator and any additional key personnel as reasonably determined by the recipient and AMS.

https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-E/subject-group-ECFRea20080eff2ea53/section-200.403 https://www.ecfr.gov/current/title-2/part-200/section-200.1#p-200.1(Modified%20Total%20Direct%20Cost%20(MTDC)) https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-A/subject-group-ECFR2a6a0087862fd2c/section-200.1 https://www.ecfr.gov/current/title-2/part-200/section-200.306#p-200.306(c) https://www.ecfr.gov/current/title-2/section-200.413 https://www.ecfr.gov/current/title-2/section-200.413 https://www.ecfr.gov/current/title-2/section-200.414

To estimate these costs in the budget section, please account for flight, hotel, per diem, and ground transportation expenses for a 3-day, 2-night stay. Location and dates are to be determined with possibility of a virtual conference. If the conference is virtual, recipients will be able to reallocate those funds to another allowable item application contents and format.

4.0 APPLICATION CONTENTS AND FORMAT

Applicants MUST submit the required documentation in the appropriate format as listed in this section.

Applications that do not comply with the requirements may be deemed incomplete and ineligible for review.

4.1 APPLICATION CHECKLIST

Before submitting an application, applicants must read the NOFO in its entirety to fully understand the program requirements. The application checklist below provides the mandatory and, where applicable, additional documents required for a complete application package.

Mandatory Documents:

SF-424 – Application for Federal Assistance (Grants.gov)

SF-424A – Budget Information Non-Construction Programs (Grants.gov)

Project Narrative Form (section 4.4)

Must use required template

Executive Summary is no more than 250 words

Ensure it does not exceed the page limit

Ensure the application excludes unallowable costs and activities per section 3.5

Signed Letter(s) of Commitment from Partners and Collaborators per section 4.5

If applicable, packages may also be required to include the following document:

Negotiated Indirect Cost Rate Agreement (NICRA) (PDF Attachment)

AMS strongly recommends submitting applications at least two weeks before the deadline to allow time to address potential technical or submission issues.

4.2 SF-424 APPLICATION FOR FEDERAL ASSISTANCE

Required: Form SF-424 is available via the application package in Grants.gov. Applicants may use the following supplemental instructions to properly fill the SF-424.

Box Instructions

1 - Type of Submission Select Application

2 - Type of Application Select New

8.c - Organizational Unique Entity Identifier (UEI)

Enter applicant UEI number for the organization submitting the application. The UEI must match the active registration in SAM.gov

8.d – Address Enter the organization street address as it appears in SAM.gov. P.O.

Boxes will not be accepted. Enter a 9-digit zip code

10 - Name of Federal Agency AMS, USDA

Box Instructions

11 - Catalog of Federal Domestic Assistance Number (Assistance Listing Number)

Enter 10.173

12 - Funding Opportunity Number Enter USDA-AMS-TM-SPMGP-G-26-0007

13 - Competition Identification Number Not applicable

14 - Areas Affected by Project Enter cities, counties, States affected by project

15 - Descriptive Title of Applicant’s Project

Provide a short descriptive title of the project

16a - Congressional Districts for Applicant

Enter the Congressional district where the applicant is located

16b - Congressional Districts for Program/Project

Enter the Congressional district where your project will be implemented, or “All” if the project will be implemented in more than one location

17 - Proposed Project Start Date and End Date

Enter Start Date: September 30, 2026* Enter End date: No later than September 29, 2029*

18.a - Estimated Funding - Federal Enter the total Federal amount requested

18.b – 18.f Estimated Funding – Applicant

Enter the total amount from the applicant organization and/or other partners

19 - Is Applicant Subject to Review by State Under Executive Order 12372 Process?

See section 5.5 Intergovernmental Review

*Dates are approximate. Start dates are set at the time of the award.

4.3 SF-424 BUDGET INFORMATION FOR NON-CONSTRUCTION PROGRAMS

Required. The SF-424A is available via the application package in Grants.gov. The blocks on the required form are either self-explanatory or easily explained in the instruction of the form. However, applicants must use the following supplemental instructions associated with specific boxes on form SF-424.

Please complete only Sections A, B, and C. Do not complete Sections D, E, F.

Section A – Budget Summary

Box Instructions

1.a – Grant Program Function or Activity Enter “SPMGP– Federal”

1.b – Catalog of Federal Domestic Assistance Number

Enter “10.173”

1.e – Federal Enter the total Federal funding amount requested for the project.

1.f – Non-Federal Enter “0” There is no match contribution amount provided for the

SPMGP.

Section B – Budget Categories

Box Instructions

6.a – 6.j – Object Class Categories In Column 1, enter the amount of Federal funds requested for each Object Class Category. Do not include cost share funding.

For example, if you are requesting $2,000 in Federal funds for “Travel”, enter 2000 in Column 1, box 6.c

Section C – Non-Federal Resources

Box Instructions

8.a – Grant Program Should auto-populate from Section A, Box 1.a

8.b – 8.d Enter the cost share amount being provided from each source (Applicant, State, or Other) for the project

4.4 PROJECT…