Financial Assistance Process
Identify Project, Funding Source and Statutory Authority
The number of financial assistance awards, maximum funding amount per award, and areas of interest for which proposals will be considered, are determined on an annual basis and are dependent upon the annual appropriation from Congress. Proposals received in response to a solicitation are reviewed on the basis of a competitive, merit- review process, and are rated in accordance with evaluation criteria stated in the solicitation document. Reclamation will make awards for the highest rated proposals based on the amount of funding available each year.
Financial assistance grants and cooperative agreements must have a legal authority upon which a program is based (acts, amendments to acts, Public Law numbers, titles, sections, Statute Codes, citations to the U.S. Code, Executive Orders, Presidential Reorganization Plans, and Memoranda from an agency head).
Examples:
Endangered Species Act of 1973, 16 U.S.C. 1361 et seq., as amended; Department of the Interior and Related Agencies Appropriations Act, 2004, H.R. 2691; Public Law 108-108.
Identify Business Instrument
The Federal Grant and Cooperative Agreement Act requires agencies to distinguish procurement/acquisition relationships from assistance relationships and establishes Government wide criteria for selecting the appropriate legal instrument. The Act prescribes the use of a procurement contract whenever the principle purpose of the instrument is the acquisition, by purchase, lease or barter, of property or services for the direct benefit of the Federal Government. It prescribes the use of a grant or cooperative agreement whenever the principle purpose of the relationship is the transfer of money, property or services to a recipient to accomplish a public purpose of support or stimulation authorized by Federal statute.
Cooperative agreements are legal instruments where the principal purpose is to transfer funds or property to the provide support or stimulation authorized by statute and where substantial involvement is expected between Reclamation and the recipient when performing the activity. There is a participatory relationship thus establishing the Bureau as a "partner" with shared performance responsibility.
Grants are legal instruments where the principal purpose is to transfer funds or property to the recipient in order to accomplish a public purpose of support stimulation authorized by statute and where substantial involvement by Reclamation is not required or anticipated. Although providing technical assistance to the recipient may be required, Reclamation is essentially a "patron" of and contributor to the recipient.
The term substantial involvement is the criterion which distinguishes a grant relationship from a cooperative agreement relationship.
Prepare Project Description, Objectives, Recipient & Reclamation Responsibilities, Eligibility Requirements & Evaluation Criteria
Decisions need to be made regarding how to describe the project and objectives, determine recipient and project eligibility requirements, desired performance activity, evaluation criteria, award terms and conditions, and other relevant issues about the financial assistance opportunity.
A brief statement of specific objectives should be stated in terms of what the program is intended to accomplish along with the goals toward which the program is directed.
Example: To stimulate innovative approaches to ________ problems emphasizing prevention and coordination of community services; to expand training activities; and, to broaden resources for ___________.
Prepare PR (Requisition)
The purchase request certifying funds are available, the project description and objectives document and all other required documentation are provided to the GCAO (Grant and Cooperative Agreements Officer) to initiate the process. More information about purchase requests can be found at the IDEAS information page.
Prepare Financial Assistance Request for Proposal (RFP) Document
The Government's specific requirements are described in writing in the RFP so that potential recipients can determine if they qualify. The RFP or solicitation document is combined with any forms, proposal schedule, financial assistance agreement provisions, evaluation factors and all other documentation required for potential offers to analyze the funding opportunity and respond with budget and technical proposals.
An application package is an electronic file that contains all the necessary forms (e.g., SF-424, project narrative, project budget, etc.) that comprise a complete grant application for a specific funding opportunity. The application package also contains critical information about the opportunity including the issuing agency, the opportunity and CFDA numbers, the open/close dates and the agency point of contact. Each funding opportunity will have its own application package.
Publish the RFP Funding Opportunity in Grants.gov
Grants.gov was created to provide a single website for all Federal grant opportunities. It was called for from the President's Management Agenda and also as part of the Public Law 106-107, which is to streamline and simplify the way the Federal Government does financial assistance. It simplifies the management process by providing a central online system for the Government to post RFP's, and for potential recipients to find and apply for financial assistance across the Federal Government. The website has many information resources available, including a comprehensive User Guide, a step-by-step walk-through of the entire Grants.gov process. Reclamation's policy is to solicit financial assistance applications in a manner which provides the maximum amount of competition feasible. Until the RFP closing date the GCAO may receive questions related to technical and financial assistance agreement requirements and responds to them with support from technical personnel, as necessary.
Receive & Evaluate Technical & Budget Proposals
Financial assistance should be awarded through a merit-based selection process. Merit review means a thorough, consistent, and independent examination of applications based on proposed budgets, technical proposals, qualifications and all other submitted information. Technical information is ranked and combined with evaluated budget proposals to determine recommendations for award. There may be clarifications, proposal revisions and negotiations if necessary. A general description of a good proposal is available here.
Program officials and scientists within the Reclamation review and evaluate all submitted proposals. Proposals must contain pertinent information in sufficient detail to define the nature and merit of the proposed project.
Additional information about the qualifications needed by the evaluation team is available.
Confidentiality and Communications: Information and materials provided in applications and unsolicited proposals are submitted to Reclamation for the purpose of application/proposal evaluation and may contain trade secrets and/or other privileged or confidential commercial or financial information. Except as provided in the Conflict-of-Interest/Non-Disclosure Certificate, these materials must not be shared or discussed with individuals who are not participating in the same evaluation proceedings. There must be no direct communications between merit reviewers and applicants. Any request for additional information or inquiries must be directed to the GCAO.
Prepare Report of Technical & Budget Proposal Evaluations
The primary purpose of a merit review is to provide an assessment of the technical merit of an application or an unsolicited proposal through a narrative critique and one or more adjectival or numerical ratings based on pre-established criteria. The report comments may provide useful information to selection officials, program officials, and GCAO.
The narrative critique should reflect the merit reviewers' assessment of the scientific/technical merit of application. It should summarize the salient features of the individual or consensus comments of the reviewers and the primary reasons for the score. This critique should address each of the criteria and highlight the strengths and weaknesses of the application with respect to these criteria. The report should identify concerns that must be addressed and they should be clearly separated from the narrative critique and rating of technical/scientific merit.
Prepare Award Document & Supporting File Documentation
The GCAO compiles the collection of the above information, the award document along with the reports and records of the decisions made in the process as the official Reclamation files.
Award Grant or Cooperative Agreement
Notification of an award is by a grant or cooperative agreement document signed by a GCAO and addressed to the organization to which the award is made. The award incorporates by attachment or reference certain documents that will establish binding terms and conditions upon the recipient. The conditions state the conduct relating to the general nature and scope of the award, budget, termination of the award, return of unused funds, budget, summary, patent rights, status reports, etc. It will also contain any other provisions necessary to establish the respective right, duties, obligation, and responsibilities of Reclamation and the recipient. The terms and conditions of the award may be amended only upon the written request or with the written concurrence of the recipient unless the amendment is one which Reclamation may make unilaterally in accordance with a program rule.
Administration - Monitor Recipient Performance
During this phase, recipient performance and other agreement issues are monitored. Interim reports are reviewed. The agreement is modified when necessary to make adjustments in budgets, technical issues and schedules. Payments are processed. The administration of all awards is governed by the provisions of the grant or cooperative agreement document. The Government should monitor the recipient's adherence to original budget estimates and objectives. One of the most common methods for monitoring is incorporating the requirement for periodic performance reports.
The terms and conditions of the award will prescribe the frequency with which the performance reports shall be submitted. When required, performance reports should generally contain brief information on each of the following:
- A comparison of actual accomplishments with the goals and objectives established for the period, the findings of the investigator, or both.
- Reasons why established goals were not met, if appropriate.
- Other pertinent information including, when appropriate, analysis and explanation of cost overruns or high unit costs.
When new and promising leads or potential lines of inquiry do arise leading to possible major deviations from original objectives, approval by the GCAO is required and award modification may be initiated. Additionally, proposed changes such as additions, deletions or substitutions to permanent equipment must be approved by the GCAO in advance.
Receive, Review, & Approve Final Reports and Close Out
- Recipients should be required to submit, within the prescribed timeframe after the date of completion, all financial, performance, and other reports as required by the terms and conditions of the award. Reclamation may approve extensions when requested by the recipient.
- The recipient must liquidate all obligations incurred under the award as specified in the terms and conditions of the award or in agency implementing instructions.
- The recipient should promptly refund any balances of unobligated cash that Reclamation has paid and that is not authorized to be retained by the recipient for use in other projects
- The recipient should account for any real and personal property acquired with Federal funds or received from the Federal Government.
- When audits are required, and in the event a final audit has not been performed prior to the closeout of an award, Reclamation shall retain the right to recover an appropriate amount after fully considering the recommendations on disallowed costs resulting from the final audit.
The Grants and Cooperative Agreements Officer (GCAO) verifies the final report (if applicable) was delivered and successfully approved. Procedures for agreement close out are performed and documentation filed appropriately.