A grant is the legal instrument reflecting a relationship between FMCSA and a recipient whenever:

• The principal purpose of the relationship is to transfer money, property, services, or anything of value in order to accomplish a public purpose of support or stimulation authorized by Federal statute; and
• There is no substantial involvement anticipated between FMCSA and the recipient during the performance of the contemplated activity.
• The following are examples of appropriate grant oversight by the Agency, but would not be considered substantial involvement under this definition:
  • Approval of recipient plans prior to award;
  • Conducting the pre-award survey and requiring corrective action to enable the recipient to account for Federal funds;
  • Review to ensure administrative compliance such as those included in 2 CFR Part 215 (OMB Circular A-110) and 49 CFR Part CFR Parts 18; and 19; and
  • Involvement in the project solely to correct deficiencies in project or financial performance.
    

For more detailed examples, see the OMB guidelines, "Implementation of Federal Grant and Cooperative Agreement Act of 1977" (43 FR 36860).

Cooperative Agreements

A cooperative agreement is the legal instrument reflecting a relationship between FMCSA and a recipient whenever:

• The principal purpose of the relationship is to transfer money, property, services, or anything of value to accomplish a public purpose of support or stimulation authorized by Federal statute
• There is substantial involvement (e.g., collaboration, participation, or intervention by FMCSA in the management of the project) anticipated between FMCSA and the recipient during performance of the contemplated activity. See 31 U.S.C. 6305.

Cooperative agreements are subject to the same laws OMB, Treasury, and other Federal directives as grants.

The following are examples of oversight activities that would demonstrate substantial involvement by the Agency if they were included in the terms and conditions of a financial assistance award:

• Authority to halt an activity immediately if detailed performance specifications (e.g., construction specifications) are not met;
• Stipulation that the recipient must meet or adhere to specific procedural requirements before subsequent stages of a project may continue;
• Approval by an appropriate FMCSA official of substantive provisions of proposed sub-awards;
• Involvement in the selection of key recipient personnel;
• Requirement that the appropriate FMCSA official collaborate with the recipient by working jointly with a recipient scientist or technician in carrying out the scope of work;
• Requirement to train recipient personnel or detail Federal personnel to work on the project effort;
• Specify direction or redirection of the scope of work due to inter-relationships with other projects, such as requiring recipients to achieve a specific level of cooperation with other projects; and
• Limitation on recipient discretion with respect to scope of work, organizational structure, staffing, mode of operations and other management processes, coupled with close monitoring of operational involvement during performance.

For more detailed examples, see the OMB guidelines, "Implementation of Federal Grant and Cooperative Agreement Act of 1977" (43 FR 36860).

Procurement Contracts

A Procurement Contract is a legal instrument reflecting a relationship between FMCSA and a business, organization or individual whenever:

• The principal purpose of the relationship is the acquisition by purchase, lease, or barter, of property or services for the direct benefit or use of the Federal Government
• It is determined in a specific instance that it is appropriate to use a type of procurement contract

Procurement Contracts are governed by the Federal Acquisition Regulation (see 31 U.S.C. § 6303) and will be awarded and administered in accordance with the provisions of the Federal Acquisition Regulation (FAR), the Transportation Acquisition Regulation (TAR), the Transportation Acquisition Manual (TAM), and other FMCSA directives covering contracting activities. FMCSA contracts are awarded by the Office of Acquisitions Management.

A procurement contract should be used when acquiring the following:

• Supplies to support day-to-day operations
• Evaluation (including research of an evaluative nature) of the performance of government programs, projects, or activities initiated by FMCSA
• Goods and services for a third party, including those receiving grants or cooperative agreements (for example, where a National Training Center contract for the development of training courses that are provided to State and local law enforcement agencies).
• Surveys, studies and research which provide specific information needed by FMCSA for its direct activities
• Conferences conducted on behalf of the FMCSA
• Consulting or professional services of any kind if provided to FMCSA
• Production of publications or audiovisual materials required primarily in support of the conduct of direct operations of FMCSA
• Design or development of items for FMCSA use or pursuant to FMCSA definition or specification
• Generation of management information or other data for internal FMCSA use.

Other Types of Agreements

There are transactions and other types of legal transactions other than grants, cooperative agreements, and procurement contracts under which FMCSA can enter into a relationship with outside entities. The Grant Manager, Office of Chief Counsel (MC-CC), and Acquisitions Office of Acquisition Management can offer advice and assistance with respect to the appropriate instrument to be used in any specific set of circumstances. However the Office of Chief Counsel (MC-CC) will make any final determinations as to the appropriate instrument to be used.

One example of another type of assistance agreement is an Economy Act Agreement. The Economy Act, 31 U.S.C. 1535, authorizes Federal agencies to place orders with other Federal agencies for goods or services and to pay the actual or estimated costs of the goods or services, when certain conditions are met.