F02 Attch 1 DoD R&D General TCs 1.pdf

DoD R&D General Terms and Conditions March 2021

Preamble

Introduction

This award is subject to the following Department of Defense (DoD) Research and Development (R&D) General Terms and Conditions. These general terms and conditions implement Office of Management and Budget (OMB) guidance, “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards,” published in the Code of Federal Regulations (CFR) at 2 CFR part 200 and implemented by the DoD at 2 CFR part 1104, “Interim Grants and Cooperative Agreements Implementation of Guidance in 2 CFR part 200” (79 FR 76047, December 19, 2014 as amended at 85 FR 49506, August 13, 2020).

Applicability

These general terms and conditions apply to DoD grants and cooperative agreements for R&D with institutions of higher education, nonprofit organizations, States, local governments, and Indian tribes.

They also apply when incorporated into DoD grants or cooperative agreements for R&D with foreign organizations or foreign public entities (as defined in Sections 36 and 37 of Part 1 to these general terms and conditions). These general terms and conditions do not apply to DoD grants and cooperative agreements for R&D made directly to individuals or for-profit entities. However, portions of these general terms and conditions do apply to recipient’s subawards for R&D made to for-profit entities.

Certain provisions within these general terms and conditions may indicate that they apply to certain types of recipients only. An example of this is FMS Article V for non-Federal audits.

Order of Precedence

Any inconsistencies in the requirements of this award will be resolved in the following order:

a. Federal statutes

b. Federal regulations*

c. 2 CFR part 200* as modified and supplemented by DoD's implementation found in 2

CFR part 1104

d. Award-specific terms and conditions

e. General Terms and Conditions, which include this document, the DoD Component’s

Addendum to this document, and the DoD Component’s Programmatic Requirements.

The terms and conditions in this document take precedence over those found in 2 CFR Chapter IX Subchapter D—Administrative Requirements Terms and Conditions for Cost-Type Grants and Cooperative Agreements to Nonprofit and Governmental Entities –

Award Acceptance

The DoD Component will select which of the following methods of acceptance it requires:

(1) If you receive an award from a DoD Component that is signed by a grants officer without your entity having also signed the award, that means the award does not require your signature to indicate acceptance of the award. Rather, your acceptance of the award in such instances, including the terms and conditions, occurs when you initiate performance under this award.

Therefore, if you disagree with any requirements of this award, you must contact the grants officer prior to initiating performance in order to resolve the issue.

(2) If you receive an unsigned award from a DoD Component, that means that you are required to sign the award to indicate acceptance of the award, including the terms and conditions, prior to initiating performance. The grants officer will sign the award upon receipt of your signature.

English Language

You must translate any of the award content (including attachments to it and any material incorporated into the award by reference) into another language only to the extent that your compliance with the award’s terms and conditions depends upon a significant number of your employees who are not fluent in English being able to read and comprehend that content. If you translate any award content into another language, the original award content in the English language will take precedence in the event of an inconsistency between the award requirements in the English and translated versions.

Plain Language

These general terms and conditions use plain language, with use of personal pronouns such as “you” to denote the recipient and “we” to mean the Federal Government (Government). Use of personal pronouns is a recognized means to help a reader understand to whom the language is addressed and assist in determining responsibilities.

Reserved Provisions

If the words “RESERVED – Not Applicable” are used at the section or paragraph level of an article without additional explanation, it means that this particular section or paragraph does not apply in any manner to this award. If the word “RESERVED” is used with additional explanation (in bold red colored font), it will describe whether the particular provisions either will or may be included in a DoD Component addendum to these terms and conditions.

Feedback on the Terms and Conditions

As you gain operating experience with these general terms and conditions, you may find areas requiring clarification or correction. Alerting us to potential issues will help us improve both these general terms and conditions and DoD’s regulatory implementation of the OMB guidance at 2 CFR part 200.

TABLE OF CONTENTS

Part 1: Definitions

Section A. Purpose of this part Section B. Precedence of definitions of terms in national policy requirements Section C. Definitions of terms used in the Government wide cost principles or single audit requirements Section D. Definitions

Part 2: Financial and Program Management

FMS Article I. Financial management system standards. (JANUARY 2021)

Section A. System standard for States Section B. System standards for all recipients Section C. Internal controls

FMS Article II. Payments. (JANUARY 2021)

Section A. Awards to States Section B. Awards to institutions of higher education, nonprofit organizations, local governments, and Indian tribes Section C. Electronic funds transfer and other payment procedural instructions or information

FMS Article III. Allowable costs, period of availability of funds, and fee or profit.

(SEPTEMBER 2017)

Section A. Allowable costs Section B. Clarifications concerning charges for professional journal publications Section C. Period of availability of funds Section D. Fee or profit

FMS Article IV. Revision of budget and program plans. (JANUARY 2021)

Section A. Approved budget Section B. Revisions requiring prior approval Section C. Pre-award costs, carry forward of unobligated balances, and one-time no-cost extensions Section D. Procedures

FMS Article V. Non-Federal audits. (JULY 2018)

Section A. Requirements for entities subject to the Single Audit Act Section B. Requirements for for-profit entities

FMS Article VI. Cost sharing or matching. (JANUARY 2021)

Section A. Required cost sharing or matching Section B. Allowability as cost sharing or matching Section C. Allowability of unrecovered indirect costs as cost sharing or matching Section D. Allowability of program income as cost sharing or matching Section E. Valuation of services or property that you or subrecipients contribute or donate Section F. Valuation of third-party in-kind contributions

FMS Article VII. Program income. (SEPTEMBER 2017)

Section A. Definition Section B. Encouragement to earn program income ....................., Section C. Costs of generating program income Section D. License fees and royalties Section E. Use of program income Section F. Duration of accountability for program income

Part 3: Property Administration

PROP Article I. Title to property. (SEPTEMBER 2017)

Section A. Title to property acquired under this award Section B. Property trust relationship Section C. Federally owned property Section D. Federal interest in donated real property or equipment Section E. Federal interest in property improved under the award

PROP Article II. Property management system. (JANUARY 2021)

Section A. Insurance coverage for real property and equipment Section B. Other management system standards for a State Section C. Other management system standards for an institution of higher education, nonprofit organization, local government, or Indian tribe

PROP Article III. Use and disposition of real property. (SEPTEMBER 2017)

Section A. Use of real property Section B. Disposition of real property

PROP Article IV. Use and disposition of equipment and supplies. (SEPTEMBER 2017)

Section A. Property subject to this article Section B. Requirements for a State’s use and disposition of equipment Section C. Use of equipment by an institution of higher education, nonprofit organization, local government, or Indian tribe Section D. Disposition of equipment by an institution of higher education, nonprofit organization, local government, or Indian tribe Section E. Use and disposition of supplies acquired under this award

PROP Article V. Use and disposition of federally owned property. (SEPTEMBER 2017)

Section A. Use Section B. Disposition

PROP Article VI. Intangible property. (SEPTEMBER 2017)

Section A. Assertion of copyright Section B. Inventions developed under the award Section C. Data produced under the award Section D. Use and disposition of intangible property acquired, but not developed or produced, under the award

Part 4: Procurement

PROC Article I. Procurement standards for States. (JANUARY 2021)

Section A. Use of State procurement system Section B. Procurement of recovered materials Section C. Debarment and suspension Section D. Contract provisions

PROC Article II. Procurement standards for institutions of higher education, nonprofit organizations, local governments, and Indian tribes. (JANUARY 2021)

Section A. General procurement standards Section B. Competition Section C. Procurement methods Section D. Contracting with small and minority businesses, women’s business enterprises, and labor surplus area firms Section E. Contract cost and price Section F. Contract provisions Section G. Procurement of recovered materials Section H. Review of procurement documents

Section I. Domestic preferences for procurements Section J. Bonding requirements

PROC Article III. Contract provisions for recipient procurements. (JANUARY 2021)

Section A. Contract provisions for administrative requirements Section B. Contract provisions for national policy requirements

Part 5: Financial, Programmatic, and Property Reporting

REP Article I. Performance management, monitoring, and reporting. (SEPTEMBER 2017)

Section A. Required reporting form, format, or data elements for interim and final performance reports

Section B. Frequency, reporting periods, and due dates for interim performance reports Section C. Due date and reporting period for final performance report Section D. Extensions of due dates Section E. Reporting significant developments Section F. Performance reporting procedures Section G. Site visits

REP Article II. Financial reporting. (SEPTEMBER 2017)

Section A. Required reporting form, format, or data elements for interim and final financial reports

Section B. Interim financial reports: frequency, reporting periods, and due dates Section C. Final financial report Section D. Extensions of due dates Section E. Where and how to submit financial reports

REP Article III. Reporting on property. (SEPTEMBER 2017)

Section A. Real property Section B. Equipment and supplies Section C. Federally owned property Section D. Intangible property

REP Article IV. Reporting on subawards and executive compensation. (JANUARY 2021)

Part 6: Other Administrative Requirements

OAR Article I. Submitting and maintaining recipient information. (JANUARY 2021)

Section A. System for Award Management

Section B. Reporting of Performance and Integrity Information Section C. Disclosure of evidence of integrity-related issues

OAR Article II. Records retention and access. (JANUARY 2021)

Section A. Records retention period Section B. Extensions of retention period due to litigation, claim, or audit Section C. Records for program income earned after the end of the performance period Section D. Records for joint or long-term use Section E. Methods for collecting, transmitting, and storing information Section F. Access to records

OAR Article III. Remedies and termination. (JANUARY 2021)

Section A. Noncompliance with award terms and conditions Section B. Remedies for noncompliance Section C. Termination Section D. Effects of suspension or termination of the award on allowability of costs

OAR Article IV. Claims, disputes, and appeals. (JANUARY 2021) Section A. Definitions Section B. Submission of claims Section C. Alternative dispute resolution Section D. Grants officer decisions for claims you submit Section E. Formal administrative appeals Section F. Representation Section G. Non-exclusivity of remedies Section H. Effect of Grant Appeal Authority’s decision

OAR Article V. Collection of amounts due. (SEPTEMBER 2017)

Section A. Establishing a debt Section B. Debt delinquency and appeals Section C. Demand letter, interest, and debt collection

OAR Article VI. Closeout. (MARCH 2021)

Section A. Liquidation of obligations Section B. Refunds of unobligated balances Section C. Final reports Section D. Accounting for property

Section E. Delinquent Final Reports and Timeframe for Closeout……………………………...65

OAR Article VII. Post-closeout adjustments and continuing responsibilities.

(SEPTEMBER 2017)

Section A. Adjustments Section B. Continuing responsibilities

Part 7: Subawards

SUB Article I. Distinguishing subawards and procurements. (SEPTEMBER 2017)

Section A. Required recipient determination Section B. Considerations in making the determination Section C. Effect of the determination on the next-tier transaction

SUB Article II. Pre-award and time of award responsibilities. (JANUARY 2021)

Section A. Requirements for unique entity identifiers Section B. Pre-award risk assessment Section C. Subaward content Section D. Subaward and executive compensation reporting

SUB Article III. Informational content of subawards. (JANUARY 2021)

Section A. Informational content in general Section B. Federal award identification number and award date Section C. Amount of Federal funds obligated Section D. Total amount obligated to the subrecipient

Section E. Total Amount of the Federal Award Section F. Federal awarding agency, pass-through entity, and awarding official Section G. Indirect cost rate

SUB Article IV. Financial and program management requirements for subawards.

(SEPTEMBER 2017)

Section A. Purposes of this article in relation to other articles Section B. Financial management system standards Section C. Payments Section D. Allowable costs, period of availability of funds, and fee and profit Section E. Revision of budget and program plans Section F. Non-Federal audits Section G. Cost sharing or matching requirements Section H. Program income

SUB Article V. Property requirements for subawards. (SEPTEMBER 2017)

Section A. Purposes of this article in relation to other articles Section B. Title to property Section C. Property management system Section D. Use and disposition of real property Section E. Use and disposition of equipment and supplies Section F. Use and disposition of federally owned property Section G. Intangible property

SUB Article VI. Procurement procedures to include in subawards. (JANUARY 2021)

Section A. Purposes of this article in relation to other articles Section B. Subaward to a State Section C. Subaward to an institution of higher education, nonprofit organization, local government, or Indian tribe

Section D. Subaward to a for-profit entity

SUB Article VII. Financial, programmatic, and property reporting requirements for subawards.

(SEPTEMBER 2017)

Section A. Purposes of this article in relation to other articles Section B. Performance reporting Section C. Financial reporting Section D. Reporting on property

SUB Article VIII. Other administrative requirements for subawards. (JANUARY 2021)

Section A. Purposes of this article in relation to other articles Section B. Submission and maintenance of subrecipient information Section C. Records retention and access Section D. Remedies and termination Section E. Disputes, hearings, and appeals Section F. Collection of amounts due Section G. Closeout Section H. Post-closeout adjustments and continuing responsibilities

SUB Article IX. National policy requirements for subawards. (JANUARY 2021)

Section A. General Section B. Nondiscrimination national policy requirements Section C. Environmental national policy requirements Section D. National policy requirements concerning live organisms Section E. Other national policy requirements

SUB Article X. Subrecipient monitoring and other post-award administration.

(JANUARY 2021)

Section A. General requirement for subrecipient monitoring Section B. Subrecipient monitoring actions Section C. Remedies and subaward suspension or termination Section D. Subaward closeout

SUB Article XI. Requirements concerning subrecipients’ lower-tier subawards.

(SEPTEMBER 2017)

Section A. Purpose Section B. Requirements for lower-tier subawards

SUB Article XII. Fixed-amount subawards. (JANUARY 2021)

Section A. Limitations on use Section B. Fixed-amount subawards that do not require prior approval Section C. Informational content of fixed-amount subawards Section D. Terms and conditions addressing administrative requirements Section E. National policy requirements for fixed-amount subawards Section F. Subrecipient monitoring and other post-award administration Section G. Fixed-amount subawards at lower tiers

Part 8: National Policy Requirements

NP Article I. Nondiscrimination national policy requirements. (SEPTEMBER 2017)

Section A. Cross-cutting nondiscrimination requirements Section B. Other nondiscrimination requirements

NP Article II. Environmental national policy requirements. (JANUARY 2021)

Section A. Cross-cutting environmental requirements Section B. Other environmental requirements

NP Article III. National policy requirements concerning live organisms. (JANUARY 2021)

Section A. Cross-cutting requirements concerning live organisms Section B. Other requirements concerning live organisms

NP Article IV. Other national policy requirements. (JANUARY 2021)

Section A. Cross-cutting requirements

Section B. Additional requirements .................................................................................... ….101

Part 1: Definitions

Section A. Purpose of this part.

This part provides definitions of terms used in the DoD R&D General Terms and Conditions.

Section B. Precedence of definitions of terms in national policy requirements.

Part 8 of these general terms and conditions may use a term in relation to compliance with a national policy requirement in a statute, Executive order, or other source that defines the term differently than it is defined in Section D of this part. For purposes of that particular national policy requirement, the definition of a term provided by the source of the requirement and any regulation specifically implementing it takes precedence over the definition in this part.

Section C. Definitions of terms used in the Governmentwide cost principles or single audit requirements.

Some award provisions state that you must comply with single audit or cost principles requirements in a Governmentwide issuance and include the requirements by reference to the issuance without restating them. For any term defined in one of those issuances, this part includes the definition only if the term is used in these general terms and conditions.

Otherwise, this part does not include a definition and a user of these terms and conditions should consult definitions in the pertinent Governmentwide source, as follows:

1. The requirements for audits of recipients and subrecipients that are in Subpart F of OMB guidance in 2 CFR part 200, which implements the Single Audit Act;

2. The Governmentwide cost principles for institutions of higher education, nonprofit organizations, States, local governments, and Indian tribes that are contained in Subpart E of OMB guidance in 2 CFR part 200; and

3. The cost principles for for-profit entities at Subpart 31.2 of the Federal Acquisition Regulation (48 CFR part 31), as supplemented by provisions of the Defense Federal Acquisition Regulation Supplement at Subpart 231.2 of 48 CFR part 231.

Section D. Definitions.

1. Acquire.

Acquire means to:

a. When the term is used in connection with a DoD Component action at the prime tier, obtain property or services by purchase, lease, or barter for the direct benefit or use of the United States Government.

b. When the term is used in connection with a recipient action or a subrecipient action at a tier under a DoD Component’s award:

(1) Purchase services;

(2) Obtain property under the award by:

(a) Purchase;

(b) Construction;

(c) Fabrication;

(d) Development;

(e) The recipient or subrecipient entity’s donation of the property to the project or program under the award to meet a cost sharing or matching requirement (i.e., including within the entity’s share of the award’s project costs the value of the remaining life of the property or its fair market value, rather than charging depreciation); or

(f) Other means.

2. Acquisition.

Acquisition means the process of acquiring as described in:

a. Paragraph D.1.a of this part when used in connection with DoD Component actions at the prime tier.

b. Paragraph D.1.b of this part when used in connection with recipient or subrecipient actions at a lower tier under a DoD Component’s award.

3. Acquisition cost.

Acquisition cost means the cost of an asset to a recipient or subrecipient, including the cost to ready the asset for its intended use.

a. For example, when used in conjunction with:

(1) The purchase of equipment, the term means the net invoice price of the equipment, including the cost of any modifications, attachments, accessories, or auxiliary apparatus necessary to make it usable for the purpose for which it is acquired.

(2) Equipment that a recipient or subrecipient constructs or fabricates—or software that it develops—under an award, the term includes, when capitalized in accordance with generally accepted accounting principles (GAAP):

(a) The construction and fabrication costs of that equipment; and

(b) The development costs of that software.

b. Ancillary charges, such as taxes, duty, protective in-transit insurance, freight, and installation may be included in, or excluded from, the acquisition cost in accordance with the recipient’s or subrecipient’s regular accounting practices.

4. Administrative offset.

Administrative offset means an action whereby money payable by the United States Government to, or held by the Government for, a recipient is withheld to satisfy a delinquent debt.

5. Advance payment.

Advance payment means a payment that DoD or a recipient or subrecipient makes by any appropriate payment mechanism, including a predetermined payment schedule, before the recipient or subrecipient disburses the funds for project or program purposes.

6. Advanced research.

Advanced research means advanced technology development that creates new technology or demonstrates the viability of applying existing technology to new products and processes in a general way. Advanced research is most closely analogous to precompetitive technology development in the commercial sector (i.e., early phases of research and development on which commercial competitors are willing to collaborate, because the work is not so coupled to specific products and processes that the results of the work must be proprietary). It does not include development of military systems and hardware where specific requirements have been defined. It is typically funded in Advanced Technology Development (Budget Activity 3) programs within DoD’s Research, Development, Test and Evaluation (RDT&E) appropriations.

7. Applied research.

Applied research means efforts that attempt to determine and exploit the potential of scientific discoveries or improvements in technology, such as new materials, devices, methods and processes. It typically is funded in Applied Research (Budget Activity 2) programs within DoD’s Research, Development, Test and Evaluation (RDT&E) appropriations. Applied research often follows basic research but may not be fully distinguishable from the related basic research. The term does not include efforts whose principal aim is the design, development, or testing of specific products, systems or processes to be considered for sale or acquisition, efforts that are within the definition of “development.”

8. Approved budget.

Approved budget means, in conjunction with a DoD Component award to a recipient, the most recent version of the budget the recipient submitted and the DoD Component approved (either at the time of the initial award or subsequently) to summarize planned expenditures for the project or program under the award. It includes:

a. All Federal funding made available to the recipient under the award to use for project or program purposes.

b. Any cost sharing or matching that the recipient is required to provide under the award.

c. Any options that have been exercised but not any options that have not yet been exercised.

9. Assistance.

Assistance means the transfer of a thing of value to a recipient to carry out a public purpose of support or stimulation authorized by a law of the United States (see 31 U.S.C. 6101(3)). Grants and cooperative agreements are examples of legal instruments that DoD Components use to provide assistance.

10. Award.

Award means a grant or cooperative agreement.

11. Award administration office.

Award administration office means a DoD Component office that performs assigned post-award functions related to the administration of grants and cooperative agreements.

12. Basic research.

Basic research means efforts directed toward increasing knowledge and understanding in science and engineering, rather than the practical application of that knowledge and understanding. It typically is funded within Basic Research (Budget Activity 1) programs within DoD’s Research, Development, Test and Evaluation (RDT&E) appropriations. Basic research includes:

a. Research-related, science and engineering education and training, including graduate fellowships and research traineeships; and

b. Research instrumentation and other activities designed to enhance the infrastructure for science and engineering research.

13. Budget period means the time interval from the start date of a funded portion of an award to the end date of that funded portion during which recipients are authorized to expend the funds awarded, including any funds carried forward or other revisions pursuant to §200.308.

14. Capital asset.

Capital assets means:

(1) Tangible or intangible assets used in operations having a useful life of more than one year which are capitalized in accordance with GAAP. Capital assets include:

(i) Land, buildings (facilities), equipment, and intellectual property (including software) whether acquired by purchase, construction, manufacture, exchange, or through a lease accounted for as financed purchase under Government Accounting Standards Board (GASB) standards or a finance lease under Financial Accounting Standards Board (FASB) standards; and

(ii) Additions, improvements, modifications, replacements, rearrangements, reinstallations, renovations or alterations to capital assets that materially increase their value or useful life (not ordinary repairs and maintenance).

(2) For purpose of this Part, capital assets do not include intangible right-to-use assets (per GASB) and right-to-use operating lease assets (per FASB). For example, assets capitalized that recognize a lessee’s right to control the use of property and/or equipment for a period of time under a lease contract. See also §200.465.

15. Claim.

Claim means a written demand or written assertion by one of the parties to an award seeking as a matter of right, the payment of money in a sum certain, the post-award adjustment or interpretation of an award term or condition, or other relief arising under or relating to the award. A routine request for payment that is not in dispute when submitted is not a claim. The submission may be converted to a claim by written notice to the grants officer if it is disputed either as to liability or amount, or is not acted upon in a reasonable time.

16. Cognizant agency for indirect costs.

Cognizant agency for indirect costs means the Federal agency responsible for reviewing, negotiating, and approving cost allocation plans and indirect cost proposals on behalf of all Federal agencies. The cognizant agency for indirect costs for a particular entity may be different than the cognizant agency for audit. The cognizant agency for indirect costs:

a. For an institution of higher education, nonprofit organization, State, local government, or Indian tribe, is assigned as described in the appendices to OMB guidance in 2 CFR part 200.

See 2 CFR 200.1- for specific citations to those appendices.

b. For a for-profit entity, normally will be the agency with the largest dollar amount of pertinent business, as described in the Federal Acquisition Regulation at 48 CFR 42.003.

17. Contract.

Contract means a procurement transaction, as that term is defined in paragraph D.58 of this part. A contract is a transaction into which a recipient or subrecipient enters. It is therefore distinct from the term “procurement contract,” which is a transaction that a DoD Component awards at the prime tier.

18. Contractor.

Contractor means an entity to which a recipient or subrecipient awards a procurement transaction (also known as a contract).

19. Cooperative agreement.

Cooperative agreement means a legal instrument which, consistent with 31 U.S.C. 6305, is used to enter into the same kind of relationship as a grant (see definition of “grant” in this part), except that substantial involvement is expected between the DoD and the recipient when carrying out the activity contemplated by the cooperative agreement or a pass-through entity and a subrecipient. The term does not include “cooperative research and development agreements” as defined in 15 U.S.C. 3710a.

20. Co-principal investigator.

Co-principal investigator means any one of a group of individuals whom an organization that is carrying out a research project with DoD support designates as sharing the authority and responsibility for leading and directing the research intellectually and logistically, other than the one among the group identified as the primary contact for scientific, technical, and related budgetary matters (see the definition of “principal investigator”).

21. Cost allocation plan.

Cost allocation plan means either a:

a. Central service cost allocation plan, as defined at 2 CFR 2001 and described in Appendix V to 2 CFR part 200; or

b. Public assistance cost allocation plan as described in Appendix VI to 2 CFR part 200.

22. Cost sharing or matching.

Cost sharing or matching means the portion of project costs not borne by the Federal Government, unless a Federal statute authorizes use of any Federal funds for cost sharing or matching.

23. Cost-type contract.

Cost-type contract means a procurement transaction awarded by a recipient or a subrecipient at any tier under a DoD Component’s grant or cooperative agreement that provides for the contractor to be paid on the basis of the actual, allowable costs it incurs (plus any fee or profit for which the contract provides).

24. Cost-type subaward.

Cost-type subaward means a subaward that:

a. A recipient or subrecipient makes to another entity at the next lower tier; and

b. Provides for the other entity to be paid on the basis of the actual, allowable costs it incurs in carrying out the subaward.

25. Debarment.

Debarment means an action taken by a Federal agency debarring official to exclude a person or entity from participating in covered Federal transactions, in accordance with debarment and suspension policies and procedures for:

a. Nonprocurement instruments, which are in OMB guidance at 2 CFR part 180, as implemented by the DoD at 2 CFR part 1125; or

b. Procurement contracts, which are in the Federal Acquisition Regulation at 48 CFR Subpart 9.4.

26. Debt.

Debt means any amount of money or any property owed to a Federal agency by any person, organization, or entity except another United States Federal agency. Debts include any amounts due from insured or guaranteed loans, fees, leases, rents, royalties, services, sales of real or personal property, or overpayments, penalties, damages, interest, fines and forfeitures, and all other claims and similar sources.

For the purposes of this award, amounts due a non-appropriated fund instrumentality are not debts owed the United States.

27. Delinquent debt.

Delinquent debt means a debt:

a. That the debtor fails to pay by the date specified in the initial written notice from the agency owed the debt, normally within 30 calendar days, unless the debtor makes satisfactory payment arrangements with the agency by that date; and

b. With respect to which the debtor has elected not to exercise any available appeals or has exhausted all agency appeal processes.

28. Development.

Development means, when used in the context of “research and development,” the systematic use of scientific and technical knowledge in the design, development, testing, or evaluation of potential new products, processes, or services to meet specific performance requirements or objectives. It includes the functions of design engineering, prototyping, and engineering testing. It typically is funded within programs in Budget Activities 4 through 7 of DoD’s Research, Development, Test and Evaluation (RDT&E) appropriations.

29. Direct costs.

Direct costs means any costs that are identified specifically with a particular final cost objective, such as an award, in accordance with the applicable cost principles.

30. DoD Components.

DoD Components means the Office of the Secretary of Defense; the Military Departments; the National Guard Bureau (NGB); and all Defense Agencies, DoD Field Activities, and other organizational entities within the DoD that are authorized to award or administer grants, cooperative agreements, and other non-procurement instruments.

31. Equipment.

Equipment means tangible personal property (including information technology systems) having a useful life of more than one year and a per-unit acquisition cost which equals or exceeds the lesser of:

a. $5,000; or

b. The recipient’s or subrecipient’s capitalization threshold for financial statement purposes.

32. Exempt property.

a. Exempt property means tangible personal property acquired in whole or in part with Federal funds under a DoD Component’s awards, for which the DoD Component:

(1) Has statutory authority to vest title in recipients (or allow for vesting in subrecipients) without further obligation to the Federal Government or subject to conditions the DoD Component considers appropriate; and

(2) Elects to use that authority to do so.

b. An example of exempt property authority is contained in the Federal Grant and Cooperative Agreement Act (31 U.S.C. 6306) for tangible personal property acquired under an award to conduct basic or applied research by a nonprofit institution of higher education or nonprofit organization whose primary purpose is conducting scientific research.

33. Expenditures.

Expenditures mean charges made by a recipient or subrecipient to a project or program under an award.

a. The charges may be reported on a cash or accrual basis, as long as the methodology is disclosed and is consistently applied.

b. For reports prepared on a cash basis, expenditures are the sum of:

(1) Cash disbursements for direct charges for property and services;

(2) The amount of indirect expense charged;

(3) The value of third-party in-kind contributions applied; and

(4) The amount of cash advance payments and payments made to subrecipients.

c. For reports prepared on an accrual basis, expenditures are the sum of:

(1) Cash disbursements for direct charges for property and services;

(2) The amount of indirect expense incurred;

(3) The value of third-party in-kind contributions applied; and

(4) The net increase or decrease in the amounts owed by the recipient or subrecipient for:

(a) Goods and other property received;

(b) Services performed by employees, contractors, subrecipients, and other payees; and

(c) Programs for which no current services or performance are required, such as annuities, insurance claims, or other benefit payments.

34. Federal interest.

Federal interest means, in relation to real property, equipment, or supplies acquired or improved under an award or subaward, the dollar amount that is the product of the:

a. Federal share of total project costs; and

b. The percentage of Federal participation in the total costs of the realproperty, equipment, or supplies;

c. Current fair market value of the property, improvements, or both, to the extent the costs of acquiring or improving the property were included as project costs.

35. Federal share.

Federal share means the portion of the project costs under an award that is paid by Federal funds.

36. Fixed-amount subaward.

Fixed-amount subaward means a subaward:

a. That a recipient or subrecipient makes to another entity at the next lower tier; and

b. Under which the total amount to be paid to the other entity is based on performance and results, and not on the actual, allowable costs that entity incurs.

37. Foreign organization.

Foreign organization means an entity that is:

a. A public or private organization that is located in a country other than the United States and its territories and is subject to the laws of the country in which it is located, irrespective of the citizenship of project staff or place of performance;

b. A private nongovernmental organization located in a country other than the United States and its territories that solicits and receives cash contributions from the general public;

c. A charitable organization located in a country other than the United States and its territories that is nonprofit and tax exempt under the laws of its country of domicile and operation, and is not a university, college, accredited degree-granting institution of education, private foundation, hospital, organization engaged exclusively in research or scientific activities, church, synagogue, mosque or other similar entity organized primarily for religious purposes; or

d. An organization located in a country other than the United States and its territories that is not recognized as a foreign public entity.

38. Foreign public entity.

Foreign public entity means:

a. A foreign government or foreign governmental entity;

b. A public international organization, which is an organization entitled to enjoy privileges, exemptions, and immunities as an international organization under the International Organizations Immunities Act (22 U.S.C. 288-288f);

c. An entity owned (in whole or in part) or controlled by a foreign government; or

d. Any other entity consisting wholly or partially of one or more foreign governments or foreign governmental entities.

39. Grant.

Grant means a legal instrument which, consistent with 31 U.S.C. 6304, is used to enter into a relationship:

a. Of which the principal purpose is to transfer a thing of value to the recipient to carry out a public purpose of support or stimulation authorized by a law of the United States, rather than to acquire property or services for the DoD’s direct benefit or use.

b. In which substantial involvement is not expected between DoD and the recipient when carrying out the activity contemplated by the award.

40. Grants officer.

Grants officer means a DoD official with the authority to enter into, administer, and/or terminate grants or cooperative agreements.

41. Indian tribe.

Indian tribe means any Indian tribe, band, nation, or other organized group or community, including any Alaska Native village or regional or village corporation as defined in or established pursuant to the Alaska Native Claims Settlement Act (43 U.S.C. Chapter 33), which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians (25 U.S.C. 450b (e)). See the annually published Bureau of Indian Affairs list of Indian Entities Recognized and Eligible to Receive Services.

42. Indirect costs (also known as “Facilities and Administrative,” or F&A, costs).

Indirect costs means those 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.

43. Institution of higher education.

Institution of higher education has the meaning specified at 20 U.S.C. 1001.

44. Intangible property.

Intangible property means:

a. Property having no physical existence, such as trademarks, copyrights, patents, and patent applications; and

b. Property such as loans, notes and other debt instruments, lease agreements, stock, and other instruments of property ownership, whether the property is considered tangible or intangible.

45. Local government.

Local government means any unit of government within a State, including a:

a. County;

b. Borough;

c. Municipality;

d. City;

e. Town;

f. Township;

g. Parish;

h. Local public authority, including any public housing agency under the United States Housing Act of 1937;

i. Special district;

j. School district;

k. Intrastate district;

l. Council of governments, whether or not incorporated as a nonprofit corporation under State law; and

m. Any other agency or instrumentality of a multi-, regional, or intra-state or local government.

46. Management decision.

Management decision means a written decision issued to an audited entity by a DoD Component, another Federal agency that has audit or indirect cost cognizance or oversight responsibilities for the audited entity, or a recipient or subrecipient from which the audited entity received an award or subaward. The DoD Component, cognizant or oversight agency, recipient, or subrecipient issues the management decision to specify the corrective actions that are necessary after evaluating the audit findings and the audited entity’s corrective action plan.

Nonprocurement instrument.

Nonprocurement instrument means a legal instrument other than a procurement contract that a DoD Component may award. Examples include an instrument of financial assistance, such as a grant or cooperative agreement, or an instrument of technical assistance, which provides services in lieu of money.

47. Nonprofit organization.

Nonprofit organization means any corporation, trust, association, cooperative, or other organization, not including an institution of higher education, that:

a. Is operated primarily for scientific, educational, service, charitable, or similar purposes in the public interest;

b. Is not organized primarily for profit; and

c. Uses net proceeds to maintain, improve, or expand the operations of the organization.

48. Obligation.

Obligation means:

a. When used in conjunction with a DoD Component’s award, a legally binding agreement that will result in outlays, either immediately or in the future. Examples of actions through which a DoD Component incurs an obligation include the grants officer’s signature of an award (or modification of such awards) authorizing the recipient to use funds under the award.

b. When used in conjunction with a recipient’s or subrecipient’s use of funds under an award or subaward, an order placed for property and services, a contract or subaward made, or a similar transaction, during a given period that requires payment during the same or a future period.

49. Office of Management and Budget.

Office of Management and Budget (OMB) means the Executive Office of the President, United States Office of Management and Budget.

50. Outlays.

Outlays means “expenditures,” as defined in this part.

51. Participant support costs.

Participant support costs means direct costs for items such as stipends or subsistence allowances, travel allowances, and registration fees paid to or on behalf of participants or trainees (but not employees) in connection with conferences or training projects.

52. Period of performance.

Period of performance means the time during which a recipient or subrecipient may incur new obligations to carry out the work authorized under an award or subaward, respectively.

53. Personal property.

Personal property means property other than real property. It may be tangible, having physical existence, or intangible, such as copyrights, patents, and securities.

54. Principal investigator.

Principal investigator means either:

a. The single individual whom an organization that is carrying out a research project with DoD support designates as having an appropriate level of authority and responsibility for leading and directing the research intellectually and logistically, which includes the proper conduct of the research, the appropriate use of funds, and compliance with administrative requirements such as the submission of performance reports to DoD; or

b. If the organization designates more than one individual as sharing that authority and responsibility, the individual within that group identified by the organization as the one with whom the DoD Component’s program manager generally should communicate as the primary contact for scientific, technical, and related budgetary matters concerning the project (others within the group are “co-principal investigators,” as defined in this part).

55. Procurement contract.

Procurement contract means a legal instrument which, consistent with 31 U.S.C. 6303, reflects a relationship between the Federal Government and a State, a local government, or other recipient when the principal purpose of the instrument is to acquire property or services for the direct benefit or use of the Federal Government. A procurement contract is a prime-tier transaction and therefore distinct from a recipient’s or subrecipient’s “procurement transaction” or “contract” as defined in this part.

56. Procurement transaction.

Procurement transaction means a legal instrument by which a recipient or subrecipient purchases property or services it needs to carry out the project or program under its award or subaward, respectively. A procurement transaction is distinct both from “subaward” and “procurement contract,” as those terms are defined in this part.

57. Program income.

Program income means gross income earned by a recipient or subrecipient that is directly generated by a supported activity or earned as a result of an award or subaward (during the period of performance unless the award or subaward specifies continuing requirements concerning disposition of program income after the end of that period).

a. Program income includes, but is not limited to, income from:

(1) Fees for services performed;

(2) The use or rental of real or personal property for which the recipient or subrecipient is accountable under the award or subaward (whether acquired under the award or subaward, or other Federal awards from which accountability for the property was transferred);

(3) The sale of commodities or items fabricated under the award or subaward;

(4) License fees and royalties on patents and copyrights; and

(5) Payments of principal and interest on loans made with award or subaward funds.

b. Program income does not include:

(1) Interest earned on advances of Federal funds;

(2) Proceeds from the sale of real property or equipment under the award; or

(3) Unless otherwise specified in Federal statute or regulation, or the terms and conditions of the award or subaward:

(a) Rebates, credits, discounts, and interest earned on any of them; or

(b) Governmental revenues, taxes, special assessments, levies, fines, and similar revenues raised by the recipient or subrecipient.

58. Project costs.

Project costs means the total of:

a. Allowable costs incurred under an award by the recipient, including costs of any subawards and contracts under the award; and

b. Cost sharing or matching contributions that are required under the award, which includes voluntary committed (but not voluntary uncommitted) contributions and the value of any third-party in-kind contributions.

59. Property.

Property means real property and personal property (equipment, supplies, intangible property, and debt instruments), unless stated otherwise.

60. Real property.

Real property means land, including land improvements, structures and appurtenances thereto, but excluding moveable machinery and equipment.

61. Recipient.

Recipient means an entity that receives an award directly from a DoD Component. The term does not include subrecipients.

62. Research.

Research means basic, applied, and advanced research.

63. Simplified acquisition threshold.

Simplified acquisition threshold means the dollar amount set by the Federal Acquisition Regulation at 48 CFR Subpart 2.1, which is adjusted periodically for inflation in accordance with 41 U.S.C. 1908.

64. State.

State means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and any agency or instrumentality thereof exclusive of local governments.

65. Subaward.

Subaward means a legal instrument by which a recipient or subrecipient at any tier, transfers--for performance by an entity at the next lower tier--a portion of the substantive program for which the DoD Component made an award.

66. Subrecipient.

Subrecipient means an entity that receives a subaward.

67. Supplies.

Supplies means all tangible personal property, including a computing device, acquired under an award that does not meet the definition of equipment in this part.

68. Suspension.

Suspension means either:

a. When used in the context of a specific award or subaward, the temporary withdrawal of authority for the recipient or subrecipient to obligate funds under the award or subaward, pending its taking corrective action or a decision to terminate the award or subaward.

b. When used in the context of an entity, an action by a DoD Component’s suspending official under 2 CFR part 1125, DoD’s regulation implementing OMB guidance on nonprocurement debarment and suspension in 2 CFR part 180, to immediately exclude the entity from participating in covered Federal Government transactions, pending completion of an investigation and any legal or debarment proceedings that ensue.

69. Termination.

Termination means the ending of an award or…