F-Federal_Terms.pdf

U.S. DEPARTMENT OF AGRICULTURE

General Terms and Conditions for Federal Awards

Effective December 31, 2025

1.0 Overview of General Terms and Conditions for Federal Awards

1.1 Introduction

1.2 Order of Precedence

1.3 Applicable Regulations

1.4 USDA Responsibilities

1.5 Recipient Responsibilities and Compliance with Federal Requirements

1.6 Internal Controls

1.7 Conflict of Interest

1.8 Unpaid Federal Tax Liability and Felony Criminal Violations

1.9 Funding to Entities or Individuals on Prohibited Lists

1.10 Immigration and Nationality Act – Eligible Workers

1.11 National Environmental Policy Act

1.12 Agricultural Bioterrorism Protection Act

1.13 FOIA - Public Access to Records and Personally Identifiable Information

1.14 Acknowledgement of USDA Support

1.15 Prior Approval

2.0 System of Award Management and Universal Identifier Requirements

3.0 Buy America Preference

4.0 Financial Management

4.1 Payments

4.2 Audit Requirements

4.3 Cost Sharing

4.4 Interest Earned

4.5 Indirect Costs

4.6 Procurements

5.0 Performance Monitoring

5.1 Periodic Performance Reports

5.2 Final Performance Reports

5.3 Subrecipient Monitoring

5.4 Reporting Subawards and Executive Compensation

5.5 Site Visits

6.0 Financial Monitoring

6.1 Allowable and Unallowable Costs and Activities

6.2 National Security and Unallowable Costs

6.3 Periodic Financial Reports

6.4 Final Financial Report

6.5 Review of Financial Reports

7.0 Remedies for Noncompliance

8.0 Debarment and Suspension

9.0 Closeout

9.1 Federal Award Closeout

9.2 Termination

9.3 Unused and Returned Funds

9.4 Disposition of Real Property, Equipment, Supplies, and Intangible Property

10.0 Research & Development, Science & Technology

10.1 Intellectual Property (Copyright and Patent Rights)

10.2 Scientific Integrity and Research Misconduct

10.3 Geospatial Data Management Standards

10.4 Public Access to Scholarly Publication and Digital Scientific Research Data

10.5 Information Security and Privacy

10.6 Research Security Training

10.7 Foreign Ownership, Control or Influence (FOCI) by a Country of Concern

10.8 Disclosures

10.9 Malign Foreign Talent Recruitment Program

10.10 Consequences for Violation of Disclosure Requirements

10.11 Potential Life Sciences Dual Use Research of Concern and Dangerous Gain-of-Function

10.12 Export Control

10.13 Limitation on Use of Funds for Research Involving Human Subjects

11.0 Records Management

11.1 Record Retention

11.2 Access to Records

11.3 Licensing and Copyright

12.0 Other Applicable Terms and Conditions

12.1 Animal Welfare Act

12.2 Civil Rights Obligations/Nondiscrimination

12.3 International Travel – Fly America Act

12.4 Prohibition on Congressional Interest in Agreements

12.5 Lobbying Prohibitions

12.6 Trafficking in Persons

12.7 Recipient Integrity and Performance

12.8 Debt

12.9 Never Contract with the Enemy

12.10 Whistleblower Protection

12.11 Drug Free Workplace

13.0 Compliance with Executive Orders and Other Presidential Actions

13.1 EO 13043: Increasing Seat Belt Use in the United States

13.2 EO 13513: Federal Leadership on Reducing Text Messaging While Driving

13.3 EO 13642: Making Open and Machine Readable the New Default for Government Information 43

13.4 EO 14149: Restoring Freedom of Speech and Ending Federal Censorship

13.5 EO 14168: Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government

13.6 EO 14173: Ending Illegal Discrimination and Restoring Merit-Based Opportunity

13.7 EO 14199: Withdrawing the U.S. From and Ending Funding to Certain United Nations

Organizations and Reviewing U.S. Support to all International Organizations

13.8 EO 14201: Keeping Men Out of Women’s Sports

13.9 EO 14204: Addressing Egregious Actions of the Republic of South Africa

13.10 EO 14218: Ending Taxpayer Subsidization of Open Borders

13.11 EO 14224: Designating English as the Official Language of the United States

13.12 EO 14292: Improving the Safety and Security of Biological Research

1.0 OVERVIEW OF GENERAL TERMS AND CONDITIONS FOR

FEDERAL AWARDS

1.1 Introduction

These General Terms and Conditions for Federal Awards (General Terms and Conditions) outline U.S. Department of Agriculture (USDA) mandatory award terms as required by Title 2 of the Code of Federal Regulations (CFR), Federal Financial Assistance.1 The General Terms and Conditions are determined by statutory, regulatory, and agency requirements, as well as by administrative policies. Unless otherwise prohibited by law, recipients and subrecipients of

USDA Federal financial assistance grants and cooperative agreements must comply with these

General Terms and Conditions. These General Terms and Conditions are in addition to the assurances and certifications made as part of the Federal award and any agency- or program-specific terms, conditions, and restrictions included in the Federal award.

The recipient shall maintain a copy of these General Terms and Conditions, as well as the award provisions and any subsequent changes to the Federal award. Electronic copies of these

General Terms and Conditions are publicly available at: https://www.usda.gov/about-usda/general-information/staff-offices/office-chief-financial-officer/federal-financial-assistance-policy/usda-general-terms-and-conditions.

1.2 Order of Precedence

In the event of any inconsistency among the terms and conditions of the Federal award and/or other issuances, the inconsistency will be resolved by giving precedence in the following order:

1. Applicable statutes of the United States

2. Program-specific regulations

3. 2 CFR Chapter IV

4. 2 CFR part 200

5. Federal award provisions and specific conditions

6. Program-specific Terms and Conditions

7. Agency-specific Terms and Conditions

8. USDA General Terms and Conditions

9. Approved budget and program plans

10. Notice of Funding Opportunity (if applicable)

1 The complete text of the CFR is available electronically at https://www.ecfr.gov/.

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.usda.gov/about-usda/general-information/staff-offices/office-chief-financial-officer/federal-financial-assistance-policy/usda-general-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.ecfr.gov/

1.3 Applicable Regulations

As a condition of this award, the recipient assures and certifies that it will comply and require subrecipients to comply with the requirements contained in 2 CFR Subtitle A and 2 CFR

Chapter IV, as applicable, including any amendments promulgated subsequent to execution of the award. USDA has adopted 2 CFR part 200, Uniform Administrative Requirements, Cost

Principles, and Audit Requirements for Federal Awards, and those requirements (and any subsequent amendments thereto) are hereby incorporated by reference.

1.4 USDA Responsibilities

USDA has overall responsibility for USDA-issued awards, including providing oversight for programmatic, financial, and administrative performance.

1.5 Recipient Responsibilities and Compliance with Federal Requirements The recipient is responsible for notifying the USDA awarding agency of any significant problems relating to the programmatic, financial, and administrative aspects of the Federal award.

The recipient has full responsibility for the management of the project or activity supported by the Federal award and for adherence to Federal statutes and regulations, all applicable terms and conditions (including these General Terms and Conditions), the Federal award provisions, and approved budget and program plans. Although the recipient is encouraged to seek advice and opinion from the USDA awarding agency on problems that may arise, such advice does not diminish the recipient’s responsibility for making prudent and sound administrative judgments under the circumstances prevailing at the time the decision was made and should not imply that the responsibility for operating decisions has shifted to the USDA awarding agency.

The recipient is responsible for submitting full, complete, and timely documentation, as required by applicable Federal statute, regulations, applicable terms and conditions, or upon request of the USDA awarding agency pursuant to 2 CFR 200.337. For elements of cost, documentation must be specific, detailed, and contemporaneous, and it must support all reported or requested expenses, both Federal and non-Federal. The USDA awarding agency may determine that any documentation related to an award is not adequate to determine that costs are reasonable, necessary, allowable, and allocable. When a USDA awarding agency makes such a determination, the recipient must revise and resubmit documentation as requested by the USDA awarding agency. Failure to do so may result in delays or nonperformance of actions related to the award, such as requested amendments, nonpayment of disbursements, or determination of noncompliance pursuant to 2 CFR 200.339.

In addition to the requirements specified in 2 CFR 200.331, these General Terms and

Conditions flow down to each subrecipient and must be included in the recipient’s subaward.

1.6 Internal Controls

In accordance with 2 CFR 200.303, the recipient and subrecipient must maintain effective internal controls over Federal financial assistance awards. The internal controls must align with the “Standards for Internal Control in the Federal Government” issued by the Comptroller

General of the United States. The internal controls provide assurance that the recipient or https://www.ecfr.gov/current/title-2/subtitle-A https://www.ecfr.gov/current/title-2/subtitle-B/chapter-IV https://www.ecfr.gov/current/title-2/subtitle-B/chapter-IV https://www.ecfr.gov/current/title-2/section-200.337 https://www.ecfr.gov/current/title-2/section-200.339 https://www.ecfr.gov/current/title-2/section-200.331 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/section-200.303 https://www.gao.gov/greenbook subrecipient is administering the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.

1.7 Conflict of Interest

In accordance with 2 CFR 200.112, 2 CFR 200.318, and 2 CFR 400.2, the recipient and subrecipient must maintain written standards of conduct covering conflicts of interest and governing the action of its employees engaged in the selection, award, and administration of Federal awards and contracts. No employee, officer, agent, or board member may participate in the selection, award, or administration of a Federal award or a contract supported by the Federal award if she or he has a real or apparent conflict of interest.

If the recipient has a parent, affiliate or affiliated company, or subsidiary organization that is not a state, local government, or Indian tribe, those relationships are considered a conflict of interest for purposes of subawards, contracts, or other agreements. The recipient must maintain written standards of conduct covering such organizational conflicts of interest. If subawards, contracts, or other agreements are made with a parent, affiliate or affiliated company, or subsidiary organization that is not a state, local government, or Indian tribe, no profit may result from goods or services rendered under such arrangements under the Federal award.

“Affiliate” or “affiliated company” of any specified person or entity means any other person or entity directly or indirectly controlling of, controlled by, under direct or indirect common control with, or related to, such specified person or entity, or which exists for the sole purpose of providing any service to one company or exclusively to companies which otherwise meet the definition of affiliate. This definition includes

Variable Interest Entities as described in Financial Accounting Standards Board

Interpretation (FIN) No. 46(R), Consolidation of Variable Interest Entities. For the purpose of this definition, "control" means the possession directly or indirectly, of the power to direct or cause the direction of the management and policies of a company, whether such power is exercised through one or more intermediary companies, or alone, or in conjunction with, or pursuant to an agreement with, one or more other companies, and whether such power is established through a majority or minority ownership voting of securities, common directors, officers, or stockholders, voting trust, holding trusts (other than money exchanged) for property or services.

The recipient must disclose any conflict of interest, including organizational conflicts of interest, and the recipient’s approach for resolving the conflict of interest to the USDA awarding agency for the Federal award within 5 calendar days of the discovery of the conflict of interest. Upon notice from the recipient of a potential conflict of interest and the approach for resolving it, the USDA awarding agency will make a determination regarding the effectiveness of the recipient’s actions to resolve the conflict of interest within 30 calendar days of receipt of the recipient’s notice, unless the USDA awarding agency advises the recipient that a longer period is necessary. The recipient must not request payment from the USDA awarding agency for costs for transactions subject to the conflict of interest, pending notification of the USDA awarding agency’s https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-B/section-200.112 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR45ddd4419ad436d/section-200.318 https://www.ecfr.gov/current/title-2/subtitle-B/chapter-IV/part-400/section-400.2 determination. The recipient’s failure to disclose a conflict of interest may result in the imposition of specific conditions or other remedies for noncompliance, including cost disallowances and/or termination of the Federal award.

1.8 Unpaid Federal Tax Liability and Felony Criminal Violations By accepting the Federal award, the recipient certifies that:

1. It has no unpaid Federal tax liability that has been assessed, for which all judicial and administrative remedies have been exhausted or have lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority responsible for collecting the tax liability; and

2. It has not been convicted of a felony criminal violation under any Federal law within the preceding 24 months.

1.9 Funding to Entities or Individuals on Prohibited Lists

The recipient certifies and assures that it will not, directly or indirectly, engage with or provide any funding from the Federal award to, including through subawards, contracts, or other agreements, any entity or individual identified on any of the lists below. USDA identifies the entities and individuals on these lists as “prohibited” (i.e., prohibited entity/individual). This commitment extends to both direct funding, where the recipient provides funds, and indirect funding, where a sub-recipient, contractor, or other third party provides funds, from the Federal award, whether for the performance of the award or for any other purpose related to the award or any of its subawards or contracts awarded under the Federal award.

1. U.S. Department of War: Entities Identified as Chinese Military Companies Operating in the United States in Accordance with Section 1260H of the William M. (“Mac”)

Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116-

283). The recipient must utilize the 2025 list or the most current list published in the

Federal Register.

2. U.S. Department of War: Response to Section 1286 of the National Defense

Authorization Act for Fiscal Year 2019 (Public Law 115-232), as amended. The recipient must use the list cleared for publication on June 24, 2025, or the most current list released by DOW.

3. U.S. Department of State: State Sponsors of Terrorism List

4. U.S. Department of State: International Security and Nonproliferation List

5. U.S. Department of State: Foreign Terrorists Organization List

6. U.S. Department of Treasury, Office of Foreign Assets Control (OFAC), Consolidated

Sanctions List which includes all OFAC non-SDN sanctions lists.

7. U.S. Department of Treasury, OFAC: Specially Designated Nationals (SDNs) List

8. U.S. Department of Treasury, OFAC: Additional Sanctions Lists which includes the below and any other similar list released by OFAC.

https://www.congress.gov/116/plaws/publ283/PLAW-116publ283.pdf https://www.congress.gov/116/plaws/publ283/PLAW-116publ283.pdf https://media.defense.gov/2025/Jan/07/2003625471/-1/-1/1/ENTITIES-IDENTIFIED-AS-CHINESE-MILITARY-COMPANIES-OPERATING-IN-THE-UNITED-STATES.PDF https://basicresearch.defense.gov/Portals/61/Documents/Academic%20Research%20Security%20Page/FY24%20Section%201286%20List%20for%20public%20release_V2.pdf?ver=KqtK4tL1wLDoUwe2yxWHSw%3D%3D#:~:text=Center%20for%20High%20Pressure%20Science,Southwest%20Institute%20of%20Environmental%20Testing https://www.state.gov/state-sponsors-of-terrorism/ https://www.state.gov/bureau-of-international-security-and-nonproliferation/nonproliferation-sanctions https://www.state.gov/foreign-terrorist-organizations/ https://ofac.treasury.gov/sanctions-list-service https://ofac.treasury.gov/sanctions-list-service https://sanctionslist.ofac.treas.gov/Home/SdnList https://ofac.treasury.gov/other-ofac-sanctions-lists

a. Sectoral Sanctions Identifications (SSI) List

b. Foreign Sanctions Evaders (FSE) List

c. Non-SDN Palestinian Legislative Council (NS-PLC) List

d. List of Foreign Financial Institutions Subject to Correspondent Account or

Payable-Through Account Sanctions (CAPTA List)

e. Non-SDN Menu-Based Sanctions List (NS-MBS List)

f. Non-SDN Communist Chinese Military Companies List (NS-CMIC List)

9. Office of Management and Budget: Prohibition on certain telecommunications and video surveillance equipment or services (2 CFR 200.216(b))

1.10 Immigration and Nationality Act – Eligible Workers

The recipient shall ensure that all employees complete the Employment Eligibility

Verification Form I-9 to certify that they are eligible for lawful employment under the

Immigration and Nationality Act (8 U.S.C. § 1324a). The recipient shall comply with regulations regarding certification and retention of the completed forms. The requirements also apply to any contract awarded under this Federal award.

1.11 National Environmental Policy Act

All Federal financial assistance can be subject to environmental review laws. The

USDA awarding agency has the responsibility to comply with the National

Environmental Policy Act (NEPA) of 1969, 42 U.S.C. § 4321 et seq., and the USDA

NEPA regulations at 7 CFR part 1b. All discretionary Federal awards, unless otherwise specifically exempted by statute, require compliance with NEPA and other relevant environmental laws. The level of NEPA review, and whether environmental analysis is needed, depends on the activity supported by the awarding agency.

The recipient may not initiate any activity under this Federal award unless, and until, the NEPA process has been completed and approved by the USDA awarding agency with a determination of whether further review, documentation, and/or mitigation measures are required; and the recipient has satisfied any requirements contained in the

USDA awarding agency’s determination. Once these conditions have been successfully completed, the USDA awarding agency will then notify the recipient that the review is complete. At that time, award activity will be authorized.

1.12 Agricultural Bioterrorism Protection Act

The recipient assures compliance with the Agricultural Bioterrorism Protection Act of 2002, as implemented at 7 CFR part 331 and 9 CFR part 121, by agreeing that it will not possess, use, or transfer any select agent or toxin without a certificate of registration issued by the USDA awarding agency.

1.13 FOIA - Public Access to Records and Personally Identifiable Information Documents, correspondence, and any products related to the Federal award, from any part of the Federal award cycle, may be made publicly available through Freedom of Information Act https://www.ecfr.gov/current/title-2/section-200.216 https://www.ecfr.gov/current/title-2/section-200.216 https://www.uscis.gov/i-9 https://www.uscis.gov/i-9 https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title8-section1324a&num=0&edition=prelim https://www.govinfo.gov/content/pkg/USCODE-2011-title42/html/USCODE-2011-title42-chap55.htm https://www.ecfr.gov/current/title-7/part-1b https://www.federalregister.gov/documents/2024/12/17/2024-29567/agricultural-bioterrorism-protection-act-of-2002-biennial-review-and-republication-of-the-select https://www.ecfr.gov/current/title-7/subtitle-B/chapter-III/part-331 https://www.ecfr.gov/current/title-9/chapter-I/subchapter-E/part-121 https://www.usda.gov/about-usda/general-information/staff-offices/office-general-counsel/office-information-affairs/freedom-information-act-division

(FOIA) (5 U.S.C § 552) requests. USDA awarding agencies utilize their websites to share accomplishments resulting from Federal awards with the public. Restrictions on the release of records and information apply for Protected Personally Identifiable Information (PPII) or when exempt from disclosure pursuant to the FOIA, the Privacy Act of 1974 (5 U.S.C. § 552a), or other applicable statute.

Reports must avoid the use of PPII, including the use of an individual's first name or first initial and last name in combination with any one or more types of information, including, but not limited to, social security number, passport number, credit card numbers, clearances, bank numbers, biometrics, date and place of birth, mother's maiden name, criminal, medical and financial records, educational transcripts, etc. Contact information included in performance reports should be limited to the organization name, physical address, and telephone number.

1.14 Acknowledgement of USDA Support

As required in 2 CFR 415.2, the recipient must have an acknowledgement of the USDA awarding agency support placed on any information dissemination products with any Federal financial assistance support, including those which report the results of, or describe, a Federal financial assistance-supported activity.

Unless the provisions of the Federal award say otherwise, this requirement does not apply to audiovisuals produced as research instruments or for documenting experimentation or findings that are not intended for presentation or distribution to the public.

The recipient must request permission before using any agency logos or marks. If a recipient wishes to use the USDA logo, more formally known as the USDA Symbol, they should request the awarding agency contact the Office of Communications to request permission on their behalf. See Use of Logos/Marks at the United States Department of Agriculture DR 1430-002

(5)(b)(3) and DR 5160-001 4(a)(8). Recipient agrees to use the USDA logo in accordance with the style guidance found at: https://www.usda.gov/about-usda/policies-and-links/digital/usda-style-guide/logo.

For any other agency logo or mark, the recipient should request permission for use from the appropriate subagency using or overseeing the mark.

1.15 Prior Approval

Recipients must obtain written approval from the USDA awarding agency prior to issuing subawards or contracts (including any similar forms of agreement) regarding any segment of a funded award. Requests for prior approval must be in writing and identify the subrecipient or contractor, authorized activities, and all anticipated costs. If all such elements are identified in a budget or budget narrative at time of application, approval of the award constitutes prior written approval of the subaward or contract.

https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section552&num=0&edition=prelim https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section552&num=0&edition=prelim https://www.ecfr.gov/current/title-2/subtitle-B/chapter-IV/part-415/subpart-B/section-415.2 https://www.usda.gov/directives/dr-1430-002 https://www.usda.gov/directives/dr-5160-001 https://www.usda.gov/about-usda/policies-and-links/digital/usda-style-guide/logo https://www.usda.gov/about-usda/policies-and-links/digital/usda-style-guide/logo

2.0 SYSTEM OF AWARD MANAGEMENT AND UNIVERSAL

IDENTIFIER REQUIREMENTS

In compliance with 2 CFR 25.220, USDA has adopted the award term—System for Award

Management (SAM.gov) and Universal Identifier Requirements (Appendix A to 2 CFR part

25), except where otherwise exempted by law:

1. Requirement for System for Award Management. Unless exempt from this requirement under 2 CFR 25.110, the recipient must maintain a current and active registration in

SAM.gov, the recipient's registration must always be current and active until the recipient submits all final reports required under this Federal award or receives the final payment, whichever is later. The recipient must review and update its information in

SAM.gov at least annually from the date of its initial registration or any subsequent updates to ensure it is current, accurate, and complete. If applicable, this includes identifying the recipient's immediate and highest-level owner and subsidiaries and providing information about the recipient's predecessors that have received a Federal award or contract within the last three years.

2. Requirement for Unique Entity Identifier (UEI). If the recipient is authorized to make subawards under this Federal award, the recipient:

a. Must notify potential subrecipients that no entity may receive a subaward until the entity has provided its UEI to the recipient.

b. Must not make a subaward to an entity unless the entity has provided its UEI to the recipient. Subrecipients are not required to complete full registration in

SAM.gov to obtain a UEI.

3. Definitions. For the purposes of this award term:

“System for Award Management (SAM.gov)” means the Federal repository into which a recipient must provide the information required for the conduct of business as a recipient. Additional information about registration procedures may be found in

SAM.gov (currently at https://www.sam.gov).

“Unique entity identifier” means the universal identifier assigned by SAM.gov to uniquely identify an entity.

“Entity” is defined at 2 CFR 25.400 and includes all of the following types as defined in 2 CFR 200.1:

a. Non-Federal entity;

b. Foreign organization;

c. Foreign public entity;

d. Domestic for-profit organization; and

e. Federal agency.

“Subaward” has the meaning given in 2 CFR 200.1.

https://www.ecfr.gov/current/title-2/section-25.220 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-I/part-25/appendix-Appendix%20A%20to%20Part%2025 https://www.ecfr.gov/current/title-2/section-25.110 https://www.sam.gov/ https://www.ecfr.gov/current/title-2/section-25.400 https://www.ecfr.gov/current/title-2/section-200.1

“Subrecipient” has the meaning given in 2 CFR 200.1.

3.0 BUY AMERICA PREFERENCE

The Build America, Buy America Act, enacted as part of the Infrastructure Investment and

Jobs Act (Pub. L. 117-58), focuses on maximizing the federal government’s use of services, goods, products, and materials produced and offered in the United States. The Build America, Buy America (BABA) Act is further implemented at 2 CFR part 184, as supplemented by M-

24-02. USDA has adopted the full text of the award term—Buy America Preference (Appendix

I to M-24-02):

Buy America Preference. Recipients of an award of Federal financial assistance from a program for infrastructure are hereby notified that none of the funds provided under this award may be used for an infrastructure project unless:

1. All iron and steel used in the project are produced in the United States—this means all manufacturing processes, from the initial melting stage through the application of coatings, occurred in the United States;

2. All manufactured products used in the project are produced in the United States— this means the manufactured product was manufactured in the United States; and the cost of the components of the manufactured product that are mined, produced, or manufactured in the United States is greater than 55 percent of the total cost of all components of the manufactured product, unless another standard that meets or exceeds this standard has been established under applicable law or regulation for determining the minimum amount of domestic content of the manufactured product; and

3. All construction materials are manufactured in the United States—this means that all manufacturing processes for the construction material occurred in the United States.

The construction material standards are listed below.

Incorporation into an infrastructure project. The Buy America Preference only applies to articles, materials, and supplies that are consumed in, incorporated into, or affixed to an infrastructure project. As such, it does not apply to tools, equipment, and supplies, such as temporary scaffolding, brought to the construction site and removed at or before the completion of the infrastructure project. Nor does a Buy America Preference apply to equipment and furnishings, such as movable chairs, desks, and portable computer equipment, that are used at or within the finished infrastructure project, but are not an integral part of the structure or permanently affixed to the infrastructure project.

Categorization of articles, materials, and supplies. An article, material, or supply should only be classified into one of the following categories: (i) Iron or steel products; (ii) Manufactured products; (iii) Construction materials; or (iv) Section 70917(c) materials. An article, material, or supply should not be considered to fall into multiple categories. In some cases, an article, material, or supply may not fall under any of the categories listed in this paragraph. The classification of an article, material, or supply as falling into one of the categories listed in this paragraph must be made based on its status at the time it is brought to the work site for incorporation into an infrastructure project. In general, the work site is the location of the https://www.ecfr.gov/current/title-2/section-200.1 https://www.congress.gov/117/plaws/publ58/PLAW-117publ58.pdf#page=866 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-I/part-184 https://www.whitehouse.gov/wp-content/uploads/2023/10/M-24-02-Buy-America-Implementation-Guidance-Update.pdf https://www.whitehouse.gov/wp-content/uploads/2023/10/M-24-02-Buy-America-Implementation-Guidance-Update.pdf https://www.whitehouse.gov/wp-content/uploads/2023/10/M-24-02-Buy-America-Implementation-Guidance-Update.pdf infrastructure project at which the iron, steel, manufactured products, and construction materials will be incorporated.

Application of the Buy America Preference by category. An article, material, or supply incorporated into an infrastructure project must meet the Buy America Preference for only the single category in which it is classified.

Determining the cost of components for manufactured products. In determining whether the cost of components for manufactured products is greater than 55 percent of the total cost of all components, use the following instructions:

1. For components purchased by the manufacturer, the acquisition cost, including transportation costs to the place of incorporation into the manufactured product

(whether or not such costs are paid to a domestic firm), and any applicable duty

(whether or not a duty-free entry certificate is issued); or

2. For components manufactured by the manufacturer, all costs associated with the manufacture of the component, including transportation costs as described in paragraph

1., plus allocable overhead costs, but excluding profit. Cost of components does not include any costs associated with the manufacture of the manufactured product.

Construction material standards. The Buy America Preference applies to the following construction materials incorporated into infrastructure projects. Each construction material is followed by a standard for the material to be considered “produced in the United States.”

Except as specifically provided, only a single standard should be applied to a single construction material.

1. Non-ferrous metals. All manufacturing processes, from initial smelting or melting through final shaping, coating, and assembly, occurred in the United States.

2. Plastic and polymer-based products. All manufacturing processes, from initial combination of constituent plastic or polymer-based inputs, or, where applicable, constituent composite materials, until the item is in its final form, occurred in the

United States.

3. Glass. All manufacturing processes, from initial batching and melting of raw materials through annealing, cooling, and cutting, occurred in the United States.

4. Fiber optic cable (including drop cable). All manufacturing processes, from the initial ribboning (if applicable), through buffering, fiber stranding and jacketing, occurred in the United States. All manufacturing processes also include the standards for glass and optical fiber, but not for non-ferrous metals, plastic and polymer-based products, or any others.

5. Optical fiber. All manufacturing processes, from the initial preform fabrication stage through the completion of the draw, occurred in the United States.

6. Lumber. All manufacturing processes, from initial debarking through treatment and planing, occurred in the United States.

7. Drywall. All manufacturing processes, from initial blending of mined or synthetic gypsum plaster and additives through cutting and drying of sandwiched panels, occurred in the United States.

8. Engineered wood. All manufacturing processes from the initial combination of constituent materials until the wood product is in its final form, occurred in the United

States.

Waivers

When necessary, recipients may apply for, and the agency may grant, a waiver from these requirements. The agency should notify the recipient for information on the process for requesting a waiver from these requirements.

When the Federal agency has made a determination that one of the following exceptions applies, the awarding official may waive the application of the Buy America Preference in any case in which the awarding agency determines that:

1. Applying the Buy America Preference would be inconsistent with the public interest;

2. The types of iron, steel, manufactured products, or construction materials are not produced in the United States in sufficient and reasonably available quantities or of a satisfactory quality; or

3. The inclusion of iron, steel, manufactured products, or construction materials produced in the United States will increase the cost of the overall project by more than 25 percent.

A request to waive the application of the Buy America Preference must be in writing. The agency will provide instructions on the format, contents, and supporting materials required for any waiver request. Waiver requests are subject to public comment periods of no less than 15 days and must be reviewed by the Made in America Office. There may be instances where an award qualifies, in whole or in part, for an existing waiver described at [link to awarding agency web site with information on currently applicable general applicability waivers].

Definitions. Definitions applicable to this award term may be found at https://www.usda.gov/about-usda/general-information/staff-offices/office-chief-financial-officer/federal-financial-assistance-policy/usda-buy-america-waivers-federal-financial-assistance/build-america-buy-america-definitions.

4.0 FINANCIAL MANAGEMENT

The recipient is required to meet the standards and requirements for financial management systems set forth or referenced in 2 CFR 200.302.

The adequacy of a recipient’s financial management system is integral to their ability to account for award expenditures and track cost sharing resources (if applicable). The recipient must responsibly use Federal funds and apply adequate internal controls and cash management practices consistent with the requirements outlined in 2 CFR 200.303.

https://www.usda.gov/about-usda/general-information/staff-offices/office-chief-financial-officer/federal-financial-assistance-policy/usda-buy-america-waivers-federal-financial-assistance/build-america-buy-america-definitions https://www.usda.gov/about-usda/general-information/staff-offices/office-chief-financial-officer/federal-financial-assistance-policy/usda-buy-america-waivers-federal-financial-assistance/build-america-buy-america-definitions https://www.usda.gov/about-usda/general-information/staff-offices/office-chief-financial-officer/federal-financial-assistance-policy/usda-buy-america-waivers-federal-financial-assistance/build-america-buy-america-definitions https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/section-200.302 https://www.ecfr.gov/current/title-2/section-200.303

Financial management systems and related records of the Federal award recipient, and of any other entity involved in the Federal award, must be sufficiently detailed to prepare reports, trace funds, and demonstrate that fund management complies with Federal statutes, regulations, and these general and other program-specific terms and conditions.

4.1 Payments

The recipient and subrecipient must comply with conditions as set forth in the Federal award relating to the Federal payment type(s). The recipient and subrecipient may submit payment requests as often as necessary when electronic fund transfers are used or no more than monthly when electronic transfers are not used. The recipient will submit payment requests via the

Request for Advance or Reimbursement Form (SF-270) or a digital equivalent, as designated by the USDA awarding agency. The following definitions and requirements apply to any specification in the Federal award regarding the allowable payment type unless otherwise specified by statute or regulation.

Advance—An advance payment is a payment that the USDA awarding agency or a pass-through entity makes before the recipient or subrecipient disburses the funds for program purposes. Unless otherwise authorized by statute, in accordance with 2 CFR

200.305(b)(1), requests for advance payments must be limited to the minimum amounts needed to meet actual and immediate cash needs in carrying out the purpose of the approved program. The timing and amount of advance payments must be as close as is administratively feasible (generally, no greater than 3 calendar days prior) to the actual disbursements by the recipient or subrecipient for direct program costs and the proportionate share of any allowable indirect costs, regardless of whether the payment is made by electronic funds transfer or by other means. Except for a limited amount of interest earned on advances pursuant to 2 CFR 200.305(b)(12), the recipients and subrecipient may not maintain federal cash in excess of immediate disbursing needs and must promptly return unused funds to the applicable USDA awarding agency. All requests for advance payments must be accompanied by a written justification with sufficient information to allow the certifying and disbursing officers to verify the actual and immediate cash need of the recipient.

Reimbursements—Reimbursements are transfers of Federal funds to the recipient or subrecipient after the recipient disburses funds for approved program activities.

Working Capital Advance Basis—USDA awarding agencies or pass-through entities must provide written approval prior to a recipient or subrecipient’s use of the working capital advance basis procedure, specified at 2 CFR 200.305(b)(4). The recipient and subrecipient receiving funds on a working capital advance basis must comply with the requirement to return interest earned on Federal funds at 2 CFR 200.305(b)(12).

Invoice Standards—All invoice and supporting documentation requirements, as set forth in the Federal award, must be satisfied before payments are issued. USDA awarding agencies may identify and impose specific invoice and supporting documentation requirements in respective Federal awards.

https://www.grants.gov/forms/forms-repository/post-award-reporting-forms https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/section-200.305 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/section-200.305 https://www.ecfr.gov/current/title-2/part-200#p-200.305(b)(12) https://www.ecfr.gov/current/title-2/part-200/section-200.305#p-200.305(b)(4) https://www.ecfr.gov/current/title-2/part-200/section-200.305#p-200.305(b)(12)

4.2 Audit Requirements

All non-federal entities that expend $1,000,000 or more in Federal awards during the non-Federal entity’s fiscal year must have a single or program-specific audit conducted for that year, in accordance with the provisions of 2 CFR 200.501. In addition, the recipient is subject to the audit requirements found in the Single Audit Act of 1984 as amended, 31 U.S.C. §§ 7501-7506. The cost of an audit may be charged to the Federal award in accordance with 2 CFR 200.425.

A program-specific audit means an audit of one Federal award program. Single audit means an audit that includes both the recipient’s financial statements and the Federal awards received, conducted in accordance with Generally Accepted Government

Auditing Standards (GAGAS).

A foreign recipient that expends $1,000,000 or more in Federal awards during the recipient’s fiscal year must have a single or program-specific audit conducted for that year in accordance with these General Terms and Conditions. In the event the recipient undergoes an audit for another Federal agency, a second audit does not need to be procured so long as the USDA funding was analyzed under the same audit. The audit must be independently and professionally executed in accordance with GAGAS either prescribed by a government’s Supreme Audit Institution with auditing standards approved by the Comptroller General of the United States, or in accordance with the host country’s laws or adopted by the host country’s public accountants or associations of public accountants, together with generally accepted international auditing standards.

However, foreign entity audits consistent with International Standards for Auditing or other auditing standards are acceptable with the USDA awarding agency’s approval.

The USDA awarding agency and its authorized representatives have the legally enforceable right to examine, audit, and copy, at any reasonable time, all records in the recipient’s possession pertaining to the award. Furthermore, the Inspector General or any of his or her duly authorized representatives shall have access to any pertinent books, documents, papers, and records of the recipient. Information accessible to the

Inspector General includes written, printed, recorded, produced, or reproduced by any mechanical, magnetic, or other process or medium. The USDA awarding agency reserves the right to conduct audits, inspections, excerpts, transcriptions, or other examinations as authorized by law, of the recipient’s documents and facilities.

4.3 Cost Sharing

If the Federal award has specific cost sharing requirements, the recipient must ensure that it complies with the applicable provisions of 2 CFR 200.306. Unless otherwise authorized by statute, the recipient may only use funds or other resources from non-Federal sources to satisfy the cost sharing requirement. Cost sharing provided in the form of cash and/or in-kind non-

Federal resources must be necessary and reasonable for achieving the project’s objectives and may not be included as contributions for any other Federal award. If a recipient voluntarily pledges cost sharing above the program’s required amount, the total becomes a binding requirement of the Federal award at time of award approval and issuance by the USDA awarding agency.

https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-F/subject-group-ECFRfd0932e473d10ba/section-200.501 https://uscode.house.gov/view.xhtml?path=/prelim%40title31/subtitle5/chapter75&edition=prelim https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-E/subject-group-ECFRed1f39f9b3d4e72/section-200.425 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/section-200.306

Documentation must be retained in the recipient project files and made available upon request.

The recipient must maintain documentation identifying:

1. The specific costs or contributions that constitute the cost sharing;

2. The funding source or contribution; and

3. How the appropriate amount of the contribution was determined for reporting purposes.

A recipient may use unrecovered indirect costs as part of cost sharing only with written approval from the USDA awarding agency. A recipient may use Federal funds from a non-USDA

Federal program to meet cost sharing requirements of USDA program only when expressly authorized by law and with the prior written approval of the USDA awarding agency. A recipient must obtain prior approval or a Federal award amendment prior to modifying the

Federal award cost share.

4.4 Interest Earned

In accordance with 2 CFR 200.305(b)(12), the recipient may retain interest earned on Federal payments deposited in interest-bearing accounts up to $500 per year for administrative expenses. Any additional interest earned on Federal funds must be returned annually to the

Department of Health and Human Services Payment Management System (PMS) through either the Automated Clearing House (ACH) network or a Fedwire Funds Service payment. All interest in excess of $500 per year must be returned to PMS regardless of whether the recipient or subrecipient was paid through PMS. Instructions for returning interest can be found at https://pms.psc.gov/grant-recipients/returning-funds-interest.html.

4.5 Indirect Costs

Federally Negotiated Indirect Cost Rates

Recipients and subrecipients may elect to apply their current Negotiated Indirect Cost

Rate Agreements (NICRAs) to an award. However, certain USDA authorities or programs may impose limitations that prevent the recipient from collecting the full negotiated indirect cost rate. Pass-through entities are subject to the requirements in 2

CFR 200.332(b)(4) and must accept all federally negotiated indirect costs rates for subrecipients.

De Minimis Rate Option

A recipient or subrecipient that does not have a current, negotiated rate, except for those recipients described in Appendix VII of 2 CFR 200—States and Local Government and

Indian Tribe Indirect Cost Proposals, paragraph D.1.b, may elect to charge a de minimis rate of 15 percent of Modified Total Direct Costs (MTDC). No documentation is required to justify the de minimis rate of 15 percent.

Costs must be consistently charged as either indirect or direct costs but may not be double charged or inconsistently charged as both (2 CFR 200.403(d)). If chosen, this methodology, once elected, must be used consistently for all Federal awards until the recipient chooses to negotiate for a rate, for which the recipient may apply at any time.

https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/section-200.305 https://pms.psc.gov/grant-recipients/returning-funds-interest.html https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR031321e29ac5bbd/section-200.332 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR031321e29ac5bbd/section-200.332 https://ecfr.gov/cgi-bin/text-idx?SID=fcef90eaf4af0e2e7a442bb54e640b98&mc=true&node=ap2.1.200_1521.vii&rgn=div9 https://ecfr.gov/cgi-bin/text-idx?SID=fcef90eaf4af0e2e7a442bb54e640b98&mc=true&node=ap2.1.200_1521.vii&rgn=div9 https://ecfr.gov/cgi-bin/text-idx?SID=fcef90eaf4af0e2e7a442bb54e640b98&mc=true&node=ap2.1.200_1521.vii&rgn=div9 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-E/subject-group-ECFRea20080eff2ea53/section-200.403

The recipient who elects to charge the de minimis rate of 15 percent must use MTDC as the base, as defined in 2 CFR 200.1.

Indirect Costs for Subawards

The recipient is also required to accept federally negotiated indirect cost rates for subaward recipients unless otherwise required by statute or regulation. For subaward recipients that do not have an approved indirect cost rate negotiated between the subrecipient and the Federal Government, the pass-through entity may use a negotiated rate between them (including one from previous negotiation) or may allow use of the de minimis rate as described above in this section.

4.6 Procurements

The recipient may acquire commercially available goods and services in connection with a project. In doing so, the recipient organization must have in place documented procurement procedures, consistent with applicable State, local, and tribal laws and regulations. The recipient’s documented procurement procedures must comply with the procurement standards identified in 2 CFR 200.317 through 2 CFR 200.327. Additionally, a recipient of an award of

Federal financial assistance for infrastructure is required to adhere to the requirements of. Buy

America, Build America Act.

A State or Indian Tribe recipient must follow the same policies and procedures the State or

Indian Tribe uses for procurements from non-Federal funds. The State or Indian Tribe must comply with 2 CFR 200.321 through 2 CFR 200.323 and 2 CFR 200.327 and ensure that every purchase order or other contract includes applicable provisions described in Appendix II of 2

CFR part 200. All other non-Federal recipients must follow 2 CFR 200.318 through 2 CFR

200.327.

The requirements of the Federal award also apply to any contract awarded under the Federal award. The recipient is responsible for ensuring that all its contracts made in connection with the USDA awarding agency project contain the applicable provisions described in Appendix II of 2 CFR part 200.

5.0 PERFORMANCE MONITORING

5.1 Periodic…