Guidance for Reporting and Use of Information Concerning Recipient Integrity and Performance, 7316-7335 [2010-2869]

Agencies

• Office of Management and Budget
• Management and Budget Office

[Federal Register Volume 75, Number 32 (Thursday, February 18, 2010)]
[Proposed Rules]
[Pages 7316-7335]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-2869]



[[Page 7315]]

-----------------------------------------------------------------------

Part II





Office of Management and Budget





-----------------------------------------------------------------------



2 CFR Subtitle A, Chapter I, Parts 25, 27, 35, et al.



Guidance for Reporting and Use of Information Concerning Recipient 
Integrity and Performance; Proposed Rule

Federal Register / Vol. 75, No. 32 / Thursday, February 18, 2010 / 
Proposed Rules

[[Page 7316]]


-----------------------------------------------------------------------

OFFICE OF MANAGEMENT AND BUDGET

2 CFR Subtitle A, Chapter I, Parts 25, 27, 35, 77, and 180


Guidance for Reporting and Use of Information Concerning 
Recipient Integrity and Performance

AGENCY: Office of Management and Budget, Office of Federal Financial 
Management.

ACTION: Proposed guidance.

-----------------------------------------------------------------------

SUMMARY: The Office of Management and Budget (OMB) is proposing 
guidance to Federal agencies to implement Section 872 of the Duncan 
Hunter National Defense Authorization Act for Fiscal Year 2009 (Pub. L. 
110-417) (hereafter referred to as ``section 872''), as it relates to 
grants. Section 872 requires: establishment of a Governmentwide data 
system to contain specified information related to the integrity and 
performance of certain entities awarded Federal grants and contracts; 
and use of the information by Federal officials making awards. The 
proposed implementing guidance for grants also would apply to 
cooperative agreements, as a matter of Governmentwide policy.

DATES: Comments are due on or before April 19, 2010.

ADDRESSES: Due to potential delays in OMB's receipt and processing of 
mail sent through the U.S. Postal Service, we encourage respondents to 
submit comments electronically to ensure timely receipt. We cannot 
guarantee that comments mailed will be received before the comment 
closing date.
    Comments may be sent via https://www.regulations.gov, a Federal E-
Government Web site that allows the public to find, review, and submit 
comments on documents that agencies have published in the Federal 
Register and that are open for comment. Simply type ``guidance on 
recipient integrity and performance matters'' (in quotes) in the 
Comment or Submission search box, click Go, and follow the instructions 
for submitting comments. Comments received by the date specified above 
will be included as part of the official record.

FOR FURTHER INFORMATION CONTACT: Marguerite Pridgen, Office of Federal 
Financial Management, Office of Management and Budget, telephone (202) 
395-7844.

SUPPLEMENTARY INFORMATION: 

Executive Summary

    Under the proposed guidance, the information that section 872 
requires the data system to contain about each entity either would be 
reported by Federal officials or self-reported by the entity. The 
guidance would require appropriate Federal officials to report on: 
Terminations of awards due to material failure to comply with award 
terms and conditions; administrative agreements with entities to 
resolve suspension or debarment proceedings; and findings that entities 
were not qualified to receive awards. Through a new award term, the 
guidance would require each recipient that has Federal awards with a 
cumulative total value greater than $10,000,000 to provide information 
about certain civil, criminal, and administrative proceedings that 
reached final disposition within the most recent 5-year period and were 
connected with the award or performance of a Federal or State award. 
The award term also requires those recipients to report at least 
semiannually to maintain the currency of the information. As section 
872 requires, an entity also would be able to submit comments to the 
data system about any information that the system contains about the 
entity.
    Prior to making a decision to award a grant or cooperative 
agreement to an entity, the Federal agency official authorized to make 
the award would be required to determine whether the entity is 
qualified to receive an award, taking into consideration any 
information about the entity that is in the data system.
    In support of the data system, the proposed guidance also would 
establish requirements for program announcements and award terms to 
require that applicants, recipients, and first-tier subrecipients 
obtain Dun and Bradstreet (D&B) Data Universal Numbering System (DUNS) 
numbers and register in the Central Contractor Registration (CCR). This 
is a modification of a previous OMB proposal.
    The proposed guidance is in amendments to 2 CFR, chapter I, that 
would add four new parts, amend one existing part, and create 
subchapters to provide organizational structure for the chapter. The 
amendments relocate some existing OMB guidance into 2 CFR, chapter I, 
to provide needed context for the proposed new guidance.
    Requirements in Section 872 that are related to Federal procurement 
contracts are being implemented separately from the proposed guidance 
in this action, through proposed amendments to the Federal Acquisition 
Regulation [74 FR 45579]. Data elements and Paperwork Reduction Act 
clearance for non-Federal entities' reporting to the Governmentwide 
data system will be proposed for comment separately.
    In the future, OMB may broaden the scope of the data system to 
include recipient information from authoritative data sources not 
described in this guidance and information on each entity receiving an 
award below the $500,000 threshold. In response to this notice, we are 
seeking input on the possible impact such scope changes could have on 
the affected recipients.

I. Purposes of 2 CFR Amendments Proposed in This Document

    Following this Federal Register preamble are 12 proposed amendments 
to chapter I of title 2 of the Code of Federal Regulations (CFR). 
Chapter I is the location of OMB policy and procedural guidance to 
Federal agencies for the award and administration of grants and 
agreements.
    The twelve proposed amendments would make various kinds of changes 
to 2 CFR. Some of the changes would create new OMB guidance needed to 
implement section 872. Other changes would update guidance that 
currently exists elsewhere and must be relocated into 2 CFR to provide 
a context in that title for the new guidance needed to implement 
section 872. The new and updated guidance would be in four new parts of 
Chapter I that the amendments would add--2 CFR parts 25, 27, 35, and 
77--and in amendments to the existing 2 CFR part 180. Each part states 
its applicability to types of financial assistance awards and types of 
entities because the applicability varies depending upon the 
requirements that the part implements.
    The remaining changes are administrative in nature. We are 
proposing these changes primarily to create seven subchapters in 2 CFR, 
Chapter I. The intent is to provide a better organizational framework 
for parts that already are located in the chapter, parts that the 
twelve proposed amendments would add, and other parts to be added in 
the future. The first of the proposed administrative changes, which is 
amendment 1 following this preamble, would transfer parts 2-99 into 
Chapter I, so that the chapter would be comprised of parts 2-199. 
Changes made by amendments 2, 4, and 6 through 8, as well as portions 
of amendments 3 and 5, would create the new subchapters. The 
subchapters would be:
     Subchapter A, ``General Matters.''
     Subchapter B, ``Pre-Award Responsibilities.''
     Subchapter C, ``Award Content and Format.''

[[Page 7317]]

     Subchapter D, ``Post-Award Responsibilities.''
     Subchapter E, ``Cost Principles.''
     Subchapter F, ``Audit Requirements.''
     Subchapter G, ``National Policy Requirements.''
    The remainder of this Supplementary Information section is 
organized into 6 sections. Section II describes the statutory 
requirements of section 872. Section III describes proposed amendments 
that would add new OMB guidance needed to implement section 872 for 
grants and cooperative agreements. Section IV describes proposed 
amendments that would update and relocate into 2 CFR existing guidance, 
in order to provide needed context for the new guidance described in 
Section III. Section V explains the relationship of one of the proposed 
amendments to a proposal that OMB made in June 2008. Section VI is an 
invitation to comment and Section VII describes next steps.

II. Statutory Requirements of Section 872

A. What Information Must Be Reported and Compiled

    Section 872 requires the Administrator of General Services to 
establish by October 14, 2009 (one year after enactment of Pub. L. 110-
417) ``a database of information regarding the integrity and 
performance of certain persons awarded Federal agency contracts and 
grants for use by Federal agency officials having authority over 
contracts and grants.'' The implementation of the ``database'' required 
by section 872 is expected to be a data system comprised of multiple 
Federal databases. In accordance with paragraph (b) of section 872, the 
data system must cover at least each entity awarded a Federal contract 
or grant in excess of $500,000, to the extent that there exists 
information regarding the entity in any of the categories that the law 
delineates (note that ``person,'' the term used in the statute, as well 
as the term ``entity'' used in the proposed guidance to implement the 
statute, are properly understood to include both organizations and 
individuals that apply for and receive Federal awards). Those 
categories include information, in the form of a brief description, for 
the most recent 5-year period regarding the following:
    1. Each civil or criminal proceeding, or any administrative 
proceeding, in connection with the award or performance of a contract 
or grant with the Federal Government with respect to the entity during 
the period to the extent that such proceeding results in the following:
    a. In a criminal proceeding, a conviction.
    b. In a civil proceeding, a finding of fault and liability that 
results in the payment of a monetary fine, penalty, reimbursement, 
restitution, or damages of $5,000 or more.
    c. In an administrative proceeding, a finding of fault and 
liability that results in either: (i) The payment of a monetary fine or 
penalty of $5,000 or more; or (ii) the payment of a reimbursement, 
restitution, or damages in excess of $100,000.
    d. To the maximum extent practicable and consistent with applicable 
laws and regulations, in a criminal, civil, or administrative 
proceeding, a disposition of the matter by consent or compromise with 
an acknowledgment of fault by the entity if the proceeding could have 
led to any of the outcomes specified in the preceding paragraphs a, b, 
or c.
    2. Each Federal contract and grant awarded to the entity that was 
terminated in such period due to default.
    3. Each Federal suspension and debarment of the entity in that 
period.
    4. Each Federal administrative agreement entered into by the entity 
and the Federal Government in that period to resolve a suspension or 
debarment proceeding.
    5. Each final finding by a Federal official in that period that the 
entity has been determined not to be a responsible source under 
subparagraph (C) or (D) of section 4(7) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403(7)).
    6. Such other information as shall be provided for purposes of this 
section in the Federal Acquisition Regulation.
    7. To the maximum extent practical, information similar to the 
information covered by paragraphs 1 through 4 in connection with the 
award or performance of a contract or grant with a State government.

B. Who Reports the Information

    Section 872 requires that the data system permit appropriate 
Federal officials to directly enter and update information about 
actions they have taken with respect to recipients or contractors. It 
also requires issuance of regulations to require recipients and 
contractors who receive more than $10,000,000 in Federal grants and 
contracts to provide current information about themselves and update 
the information on a semiannual basis.
    Section 872 also provides recipients and contractors an option for 
additional comment. An entity must receive timely notification when 
information relevant to it is entered into the data system and given an 
opportunity to submit comments about the information, for inclusion in 
the data system.

C. How the Data System Is Being Designed

    Even though the specific data elements to be reported will be 
addressed separately from the policy guidance proposed in this Federal 
Register notice, it is important to note that one objective of OMB and 
the Federal agencies working to implement section 872 is to integrate 
the policies and procedures for financial assistance and acquisition 
with the information technology aspects of the implementation in a way 
that minimizes the burdens on entities that receive Federal grants, 
cooperative agreements, and procurement contracts, as well as burdens 
on Federal agencies. Therefore, we are striving to implement the 
statute in a manner that, to the extent possible--
     Reduces reporting of information by non-Federal entities 
by relying on Federal officials for as much of the information as 
possible;
     Provides for use of the same data system for both 
contracts and grants; and
     Uses existing databases and information systems, such as 
the Excluded Parties List System, both as a source of information and a 
place to store new information for Federal officials' reporting of 
required information.
    We currently anticipate that the data system, which will be known 
as the Federal Awardee Performance and Integrity Information System 
(FAPIIS), will involve several business rules to increase the 
usefulness, accuracy, and confidentiality of information in the system. 
We expect that:
     Only Federal Government officials will be able to view the 
information in FAPIIS, with the exception that an entity will be able 
to view its own information.
     FAPIIS will be designed to automatically notify an entity 
when new information about itself is posted, in addition to the 
notification provided by the Federal official who entered the 
information.
     There will be a point of contact for system errors and a 
point of contact for each Federal information entry, so that any errors 
in information in FAPIIS can be brought to the attention of the 
appropriate Government official.
     Data accessible for a period of 5 years, as section 872 
requires, will be archived for an additional period of 1

[[Page 7318]]

year to allow for resolution of issues related to the information.
     There will be only a modest amount of space for an 
entity's comments about each past event reported to FAPIIS, as the 
purpose is for the entity to provide any additional information it may 
have about its present qualification to receive awards and not to 
dispute the past event. The comments will be retained in FAPIIS as long 
as the associated information is retained (i.e., accessible for a 
period of 5 years and archived for an additional year). An entity may 
revise its comments in FAPIIS, but version control will be maintained.

D. How the Information Is To Be Used

    Section 872 specifies that before awarding a contract or grant in 
excess of the simplified acquisition threshold (currently $100,000), 
the Federal agency official responsible for making the award must 
consider the information in the data system with respect to the entity 
to which the award would be made.

III. Amendments Establishing New Guidance To Implement Section 872

    The implementation of section 872 requires OMB guidance to 
establish some new policies and procedures. The new requirements 
resulting from this guidance for non-Federal and Federal entities are 
described in the following sections III.A and III.B.
    Section 872 applies to grants and procurement contracts. As a 
matter of Federal Government policy, the proposed new guidance in 2 CFR 
would apply the requirements of section 872 to cooperative agreements, 
as well as grants. Implementation of the statute as it applies to 
procurement contracts is being addressed through a separate Federal 
Register document proposing changes to the Federal Acquisition 
Regulation (74 FR 45579, September 3, 2009).
    The proposed new 2 CFR guidance does not address data elements or, 
other than the broad outlines described in Section II.C of this notice, 
other specifics of the data system that section 872 requires the 
General Services Administration to establish. It does establish the 
underlying policy framework, including requirements for recipients and 
their direct (i.e., first-tier) subrecipients, Federal agency officials 
who award and administer grants and cooperative agreements, and Federal 
agency suspending and debarring officials.

A. Proposed New Requirements for Recipients and Subrecipients

    Agencies would communicate requirements applicable to non-Federal 
entities through two new award terms included in the proposed guidance.
    The first award term is included in the proposed new part 25, which 
would be added by amendment 3 following this preamble. It would require 
recipients and first-tier subrecipients to obtain and provide DUNS 
numbers to Federal awarding agencies and to maintain current 
registrations in the CCR. These requirements support the implementation 
of section 872. They are needed to help correctly identify a recipient 
or contractor entity, so that information about the entity that resides 
in multiple Federal Government databases can be properly linked 
together and provided through an integrating data system to Federal 
agency awarding officials, as section 872 requires.
    The second award term is included in the proposed part 35, which 
also would be added by amendment 3 following this preamble. It 
implements for grants and cooperative agreements the requirement in 
paragraph (f) of section 872. It does so by requiring a recipient to 
provide information about itself for inclusion in the data system if it 
has currently active Federal grants, cooperative agreements, and 
contracts with a cumulative total value (including any options not yet 
exercised) greater than $10 million. Specifically, it requires each 
recipient to: (1) Provide information about any criminal convictions, 
civil judgments, and outcomes of administrative proceedings that are 
listed in section II.A.1 of this Supplementary Information section; and 
(2) maintain the currency of that information by reviewing it at least 
semiannually and making any needed updates. The award term requires the 
recipient to report convictions and outcomes of proceedings associated 
with both Federal and State awards because section 872 requires 
inclusion of information about those associated with State awards, to 
the maximum extent practicable (see paragraph II.A.7 of this 
Supplementary Information section).
    The award term in the proposed part 35 would not require non-
Federal entities to provide information about Federal suspensions or 
debarments, terminations of awards, or other actions for which section 
872 requires the data system to have information. The reason is that 
the needed information about those Federal actions can readily be 
obtained from the Federal awarding, administering, and suspending and 
debarring officials who take the actions.

B. Proposed New Requirements for Federal Officials

    Most of the proposed guidance addresses responsibilities of Federal 
officials, including those who award and administer grants and 
cooperative agreements and Federal agency suspending and debarring 
officials.
    The new responsibilities proposed for suspending and debarring 
officials are in amendments 10 through 12 following this preamble, 
which revise 2 CFR part 180. The new responsibilities are to:
     Report information to the data system established under 
section 872 about each administrative agreement entered into with an 
entity to resolve a suspension or debarment action and, if needed, 
subsequently correct or update the information. A suspending or 
debarring official sometimes negotiates an administrative agreement 
because he or she determines that it is a better way for the Government 
to resolve the matter than suspending or debarring the entity.
     Include additional wording in each administrative 
agreement, as well as in each notice a suspending or debarring official 
sends to notify an entity that it has been suspended or debarred. The 
purpose of the additional wording is to inform the entity that 
information about the action will be available through the new data 
system established under section 872, how Federal awarding officials 
will use the information, that the entity may comment about the 
information in the system, and other related matters.
    There are a number of proposed new responsibilities for officials 
who make awards. Those new pre-award responsibilities would be to:
     Include wording in each program announcement, program 
regulation, or other issuance containing instructions for applicants, 
to require each applicant to register in the CCR and provide its DUNS 
number in each application it submits, unless the applicant is an 
individual or is otherwise excepted from those requirements (see 
subpart B of the proposed part 25 and Appendix A of the proposed part 
27, subdivision II, paragraph II.C.3).
     Include wording in the section of each program 
announcement describing the review and selection process, to inform 
potential applicants that, prior to making an award to an entity, the 
Federal agency awarding official must consider information about the 
entity that is contained in FAPIIS. The wording also would inform a 
potential applicant about its right to review information about itself 
in FAPIIS and

[[Page 7319]]

provide comments that the awarding official also would consider in 
making a determination about the entity's qualification to receive an 
award. (See Appendix A of the proposed part 27, subdivision II, 
paragraph II.E.2.b.)
     Determine before making an award to an entity whether the 
entity is qualified. If the official determined that an entity was not 
qualified, he or she still would be able to make the award in some 
cases. However, if the official did not make an award expected to 
exceed the simplified acquisition threshold (currently $100,000) 
because he or she disqualified the entity based on its integrity and 
business ethics and prior performance under Federal awards, the 
official would be required under the proposed guidance to report 
information about the disqualification to FAPIIS. The official would be 
required to notify the disqualified entity about the reporting of the 
information to the data system, how Federal awarding officials will use 
the information, that the entity may comment about the information in 
the system, and related matters. The official also would be required to 
make timely corrections to any information submitted about the 
disqualification that he or she later learned to be erroneous. (See 
subpart A of the proposed part 35.)
     Include in the award the two proposed new award terms--one 
for DUNS number and CCR registration requirements (see Subpart B of the 
proposed part 25 and Appendix A to that part) and one for recipient 
reporting requirements to the FAPIIS data system (see subpart B of the 
proposed part 35 and Appendix A to that part).
    The proposed guidance also would establish new post-award 
responsibilities for officials who administer awards. Subpart B of the 
proposed part 77 contains requirements for those officials to report 
terminations of awards to FAPIIS; notify the affected non-Federal 
entities about the reporting of the information, its use, and 
opportunities for the entities to comment; and correct any submitted 
information later learned to be erroneous.

IV. Amendments That Update and Relocate Existing OMB Guidance

    As discussed in Section I of this Supplementary Information 
section, some of the proposed amendments following this preamble would 
update existing OMB guidance and relocate it into 2 CFR to provide 
needed context for the new guidance that was described in the preceding 
Section III. The following sections IV.A, IV.B, and IV.C, respectively, 
describe aspects of the proposed 2 CFR parts 25, 27, and 35 that relate 
to existing OMB guidance.

A. Aspects of the Proposed Part 25 That Relate to Policies and 
Procedures Currently in Effect

1. DUNS Numbers
    The proposed part 25 implements and relocates into 2 CFR existing 
OMB guidance on the use of the DUNS number as a universal identifier. 
That guidance is in two OMB policy memoranda that require Federal 
agencies to obtain DUNS numbers from applicants and use them in the 
award and administration of Federal financial assistance awards. The 
details are that:
     The policy initially was established by the July 15, 2003, 
OMB memorandum M-03-16, ``OMB Issues Grants Management Policies,'' 
which applied to grants and cooperative agreements. That memorandum is 
available at https://www.whitehouse.gov/omb/memoranda/m03-16.pdf and the 
full text of the policy is available in the Federal Register [68 FR 
38402, June 27, 2003].
     On May 30, 2008, OMB broadened that policy to include 
other forms of Federal financial assistance when it issued memorandum 
M-08-19, ``Authority to Collect DUNS Number to Meet Requirements of the 
Federal Funding Accountability and Transparency Act of 2006.'' 
Specifically, the memorandum broadened the 2003 policy to include loans 
and other forms of financial assistance that are subject to the Federal 
Funding Accountability and Transparency Act (Pub. L. 109-282, hereafter 
referred to as ``the Transparency Act''). The memorandum is available 
at https://www.whitehouse.gov/omb/assets/omb/memoranda/fy2008/m08-19.pdf.
    As proposed, part 25 would implement the existing policy on DUNS 
numbers as it applies to prime recipients (i.e., those that receive 
awards directly from Federal agencies) and their direct or ``first-
tier'' subrecipients. Implementing the policy for recipients and first-
tier subrecipients parallels the approach used in OMB guidance 
implementing requirements to track use of funds under the American 
Recovery and Reinvestment Act of 2009 (Pub. L. 111-5, hereafter 
referred to as ``the Recovery Act''). That guidance is available at 
https://www.recovery.gov and https://www.omb.gov.
2. CCR Registration
    With respect to requirements for CCR registration, the proposed 
part 25 would establish as policy in 2 CFR what already is a 
requirement for any applicant who uses Grants.gov to electronically 
submit its application to a Federal agency. The proposed policy would 
apply to first-tier subrecipients, in addition to applicants and prime 
recipients, which is a broadening of the current Grants.gov 
requirement. Again, this inclusion of first-tier subrecipients 
parallels the recent OMB implementation of the Recovery Act.

B. Aspects of the Proposed Part 27 That Relate to Policies and 
Procedures Currently in Effect

    Given that the proposed part 27 would require program announcements 
to include specific content related to section 872, as described in 
section III.B of this Supplementary Information section, we also are 
proposing that the part include the more general OMB policies related 
to program announcements. These include the OMB directives to use the 
standard format and to electronically post announcements and synopses 
of them, as described in the following sections IV.B.1 and IV.B.2.
1. Governmentwide Standard Format for Program Announcements
    Subpart B of the proposed part 27 specifies that agencies must use 
the standard format for program announcements, thereby incorporating 
into 2 CFR the policy originally established by OMB memorandum M-03-16, 
``OMB Issues Grants Management Policies.'' The memorandum is available 
at https://www.whitehouse.gov/omb/assets/omb/memoranda/m03-16.pdf. The 
full text of the policy was in a directive that OMB published in the 
Federal Register [68 FR 37370, June 23, 2003].
    We are proposing that the format itself, which OMB published with 
the policy directive in that 2003 Federal Register document, be 
incorporated as Appendix A to the proposed part 27. Incorporating it 
into the CFR will enable it to be more easily updated in the future. In 
incorporating it, we made the following changes:
     We assigned letters and numbers to every paragraph in the 
format, many of which had none in the 2003 issuance. Doing so required 
changes to designations that many paragraphs had in that earlier 
format. While we regret any near-term inconvenience that this 
transition in paragraph designations may cause for users of the format, 
it is needed to enable us to efficiently amend individual paragraphs of 
the text in the future. In making this change, we did incorporate 
suggestions we heard from users, based on their experiences with

[[Page 7320]]

the 2003 format, by using a standard outlining schema.
     We merged the content of the lead-in material from the 
portion of the 2003 format entitled ``Full text of Announcement,'' into 
a new Subdivision 1, ``How to Use this Appendix.'' The editing of the 
material to accommodate the change is not intended to be substantive.
     The only two substantive changes are in Subdivision 2 of 
the appendix, ``The Announcement Format,'' and are part of the 
implementation of section 872. First, we added a new paragraph II.C.3, 
which agencies are required to include in their announcements, to 
address the DUNS number and CCR requirements stated in the proposed 2 
CFR part 25. Second, we added a required paragraph II.E.3, ``Recipient 
Qualification,'' to subsection II.E on application review, to require 
agencies to inform potential applicants about the standards used to 
determine that a recipient is qualified and the related uses of the new 
FAPIIS data system to be established under section 872.
2. Electronic Posting of Program Announcements and Synopses
    Subpart C of the proposed part 27, ``Issuance,'' incorporates into 
2 CFR, without substantive change, existing policies on electronic 
issuance of program announcements and synopses of them. The details are 
that:
     Section 27.305 includes the requirement for an agency to 
electronically post each program announcement. That requirement was 
originally established by OMB memorandum M-03-16, ``OMB Issues Grants 
Management Policies.'' The full text of the policy was in a directive 
that OMB published in the Federal Register with the announcement format 
[68 FR 37370, June 23, 2003].
     Section 27.310 includes the requirement for an agency to 
electronically post each synopsis of an announcement of a funding 
opportunity that OMB originally established on October 15, 2003, in 
memorandum M-04-01, ``OMB Issues Grants.gov FIND Policy.'' The 
memorandum is available at https://www.whitehouse.gov/omb/memoranda_fy04_m04-01/. OMB published the full text of the policy in the Federal 
Register [68 FR 58146, October 8, 2003].

C. Aspects of the Proposed Part 35 That Relate to Policies and 
Procedures Currently in Effect

    Most of the requirements in the proposed part 35 are new, as 
described in section III of this Supplementary Information section. One 
aspect that is not new is the requirement for an awarding official to 
check the Excluded Parties List System before making an award to an 
entity, to ensure that the entity is not debarred, suspended, or 
otherwise disqualified from receiving the award. That requirement is in 
2 CFR part 180, subpart D. Paragraph 35.120(a) in the proposed part 35 
refers to that existing requirement because checking the EPLS is a 
critical step in an awarding official's determination that an entity is 
qualified (we anticipate that the awarding official ultimately will be 
able to check the EPLS database through FAPIIS).
    Although it has not been explicitly stated in OMB guidance 
previously, the requirement in paragraph (a) of the proposed section 
35.205 for a Federal agency awarding official to ensure that each award 
includes the appropriate terms and conditions is a practice, if not an 
explicit formal policy, of all Federal agencies. It serves in the 
proposed guidance as a basis for identifying Governmentwide award terms 
that an awarding official must include, pending more comprehensive 
guidance on the format and content of grants and cooperative agreements 
that is under development. One of those award terms, which implements a 
statute on Trafficking in Persons, is in previously established 
guidance at 2 CFR 175.15.

V. Relationship of Proposed DUNS Number and CCR Requirements to a 
Proposal Made in June 2008

    On June 6, 2008 [73 FR 32417], OMB published in the Federal 
Register a proposed new 2 CFR part 33 with policies and procedures for 
implementing Transparency Act requirements for Federal financial 
assistance awards. As it was proposed in June 2008, the new part 33 
would have required direct recipients of Federal agency awards and, 
with some exceptions, subrecipients at all lower tiers (if their 
subawards were subject to Transparency Act reporting requirements) to 
have DUNS numbers and register in the CCR.
    The proposed part 25 in amendment 3 following this preamble is 
intended to supersede the DUNS number and CCR elements of the June 2008 
proposal. As stated earlier, part 25 includes the requirements for 
prime recipients and subrecipients at the first tier below the prime 
award. If future implementation of the Transparency Act or other 
statute requires extending the requirement for DUNS numbers, CCR 
registration, or both to subrecipients at lower tiers, as we proposed 
in June 2008, we would amend part 25 through a Federal Register process 
that afforded an opportunity for public comment.
    We appreciate the many thoughtful comments we received from the 
affected public and Federal agencies on the DUNS number and CCR aspects 
of the June 2008 proposal. We considered those comments in developing 
the proposed part 25 following this preamble. The following paragraphs 
summarize the comments we received in 2008 that are most pertinent to 
the newly proposed part 25. They also provide responses to those 
comments as additional background related to the basis for the current 
proposal.
    Comment: Sixteen commenters suggested not using the DUNS number as 
the means to uniquely identify recipient and subrecipient entities. The 
Employer Identification Number (EIN) was offered as one alternative. 
Among reasons the commenters gave for not using DUNS numbers were that: 
(1) The requirement to have a DUNS number could preclude subawards to 
small entities that do not have the organizational infrastructure to 
support DUNS numbers; and (2) the time required to obtain a DUNS number 
could delay applications from, or awards to, first-time subrecipients, 
especially as the large number of entities needing to obtain DUNS 
numbers could strain the system's ability to process their requests; 
and (3) an entity can have multiple DUNS numbers, even at the same 
operating location, which is a source of potential confusion. 
Commenters that offered the EIN as an alternative noted that many 
States already use EINs as identifiers for subrecipients in their 
electronic data systems.
    Response: The DUNS number still is the only identifier with the 
advantages that led us to establish it in 2003 as the universal 
identifier for recipients of grants and cooperative agreements (see the 
preamble to 68 FR 38403, June 27, 2003). Although other numbering 
systems currently are in use--and will continue because they are used 
for different purposes--none is adequate to identify family tree 
relationships or to provide the access and validation capabilities that 
the DUNS numbers provide.
    We agree with the commenters that some entities have multiple DUNS 
numbers that are not justified but believe the proper solution is for 
Dun and Bradstreet (D&B) to continue to advise organizations on ways to 
properly control their DUNS hierarchies, something for which each 
organization necessarily is responsible. We do not agree that the one-
time activity to obtain a DUNS number,

[[Page 7321]]

which can be almost immediate and should take no more than 48 hours, 
will create significant delays in applications or awards. While we 
appreciate that first-tier subrecipients who are not also prime 
recipients of other Federal awards may need to adjust their procedures 
and systems initially to accommodate the DUNS number requirement, we 
judge that the long-term benefits justify those changes.
    Comment: Twenty-nine commenters questioned whether the 
administrative burden associated with CCR registration of subrecipients 
was justified by the benefits. Six questioned the value for prime 
recipients.
    Response: We believe the benefits do justify the requirement. For 
entities applying for Federal assistance awards, CCR registration 
already is a valuable adjunct to Grants.gov, the central site through 
which applications may be submitted electronically in a more uniform 
way to all Federal agencies. For prime recipients, we anticipate that 
information in CCR will be used in conjunction with all payments under 
Federal awards (they already are used for payments under some Federal 
financial assistance awards, as well as procurement contracts). For 
first-tier subrecipients, CCR registration will help ensure that 
Federal Government databases correctly identify entities receiving 
subaward funding that must be reported in compliance with the 
Transparency or Recovery Act.
    Comment: Two commenters suggested that the Federal Government 
create crosswalks between DUNS numbers and other identifiers. One 
commenter suggested providing a crosswalk between DUNS numbers and 
EINs, since some recipients already have EINs for subrecipients in 
their data bases. Another commenter suggested cross linking 
organizational data in the D&B files for DUNS numbers with 
organizational information in files associated with other identifiers 
that Federal agencies require, such as the Inventory of Substance Abuse 
Treatment Services (I-SATS) number, and the National Provider 
Identifier (NPI) that one obtains through the National Provider System. 
The commenter noted that linking the files could reduce burdens for 
reporting the same information multiple times and help prevent there 
being duplicative or even inconsistent information about an 
organization in files associated with different identifiers.
    Response: We appreciate the suggestion but are not aware of any 
current plans to link data bases of organizational information 
associated with the identifiers cited, which are used for different 
purposes.
    Comment: One commenter suggested that DUNS numbers apparently were 
designed for grant recipients and contractors, and not for loan 
recipients.
    Response: The DUNS number is pertinent to loan recipients due to 
its use as the universal identifier for reporting under the 
Transparency Act.
    Comment: One commenter expressed concern about entities with 
multiple locations, each doing a limited amount of business, being 
required to have a DUNS number assigned for each location. The 
commenter urged OMB to work to minimize burdens on small entities.
    Response: An entity with multiple locations would need a DUNS 
number for each location only if each received awards or subawards of 
Federal funds. Moreover, D&B maintains DUNS numbers for over one 
hundred million entities for much broader purposes, so individual 
locations of many recipient and subrecipient entities likely already 
have DUNS numbers for business reasons unrelated to Federal awards. We 
share the commenter's concern about minimizing burdens but note that 
obtaining a DUNS number is not a very great burden because it is a one-
time activity.
    Comment: One commenter asked how and when Federal agencies collect 
and report DUNS information. Three other commenters suggested not 
requiring an entity to provide its DUNS number or be registered in the 
CCR until the time at which the Federal agency makes its award, rather 
than requiring the entity to provide its DUNS number at the time of its 
application.
    Response: Federal agencies collect DUNS information from each 
applicant at the time of application and use it during the pre-award 
processing leading to the issuance of the award, as well as in post-
award administration. At time of award, an agency reports the DUNS 
number as a required field in submissions of Transparency Act data for 
prime award obligations to recipients. An entity that applies 
electronically through Grants.gov must have a DUNS number prior to 
applying because Grants.gov requires applicants to be registered in the 
CCR, which in turn requires a DUNS number.
    Comment: One commenter asked whether an applicant for a Federal 
agency award was required to provide a DUNS number for each entity to 
which it proposed in its application that it would make a subaward.
    Response: An applicant is not required to submit a proposed 
subrecipient's DUNS number to a Federal agency as part of the 
application process. However, after receiving a Federal award, a 
recipient will need to include the subrecipient's DUNS number with the 
data it submits for each subaward obligation that must be reported 
under the Transparency or Recovery Act.
    Comment: A commenter questioned whether a recipient would have to 
receive Federal agency permission to change a subrecipient if it: (1) 
Proposed an entity as a subrecipient in its application to the agency; 
(2) received an award; and then (3) learned that the entity it had 
proposed as a subrecipient would not provide a DUNS number.
    Response: Both OMB Circular A-110 and the common rule implementing 
OMB Circular A-102 permit an agency to require a recipient to obtain 
its prior approval for any subawards of work under the award. If the 
agency did not waive that requirement, its approval of the application 
would serve as the prior approval if the recipient made the subaward to 
the same entity it identified in its application. All of that is 
unchanged by the new guidance that is proposed following this preamble. 
However, due to the new guidance prohibiting first-tier subawards to 
entities that have not provided a DUNS number to the recipient, an 
applicant who plans to propose in its application that it will make 
subawards to specific entities may want to consider the benefits of 
having DUNS numbers for those entities before submitting its 
application to a Federal agency.
    Comment: Two commenters asked if there would be additional guidance 
to clarify how an agency would exercise the discretion provided (which 
now is in section 25.205 of the proposed guidance following this 
preamble) when considering an award to an entity that had not yet 
complied with the requirement to provide a valid DUNS number or 
register in the CCR. The proposed section would permit, but not 
require, an agency to give the entity a period of time to come into 
compliance before it determined, based on the entity's noncompliance, 
that the entity was not qualified to receive the award. The section did 
not specify how long the period of time might be.
    Response: The guidance deliberately leaves that matter to agency 
discretion. A wide variety of Federal programs use grants, cooperative 
agreements, and other Federal financial assistance awards subject to 
the DUNS and CCR requirements. Flexibility in the guidance is essential 
because the programs have differing constraints in their program 
statutes, the periods of availability of their appropriated funds,

[[Page 7322]]

and the criticality of their program schedules. The different 
constraints necessarily affect how each awarding office will be able to 
use the discretion provided.

VI. Invitation To Comment

    We are requesting comment on all of the proposed new guidance, as 
well as changes to previously existing guidance, that would be made by 
in the amendments following this preamble. With respect to portions of 
the guidance that the amendments are relocating into 2 CFR without 
substantive change, we are not seeking to revisit substantive issues 
raised by comments that were resolved when those portions of the 
guidance originally were issued. However, we invite comments on any 
unintended changes we have made in those portions of the guidance.
    In the future, OMB may expand the scope of the data system to 
include recipient information from authoritative data sources not 
described in this guidance and information on recipients receiving 
awards below the $500,000 threshold. In response to this notice, we are 
also seeking input on the possible impact that expanding the system 
scope could have on the affected recipients.

VII. Next Steps

    We will finalize the guidance to Federal agencies after resolving 
any comments we receive on what is proposed following this preamble. 
When the guidance is final, each Federal agency will implement it, 
thereby giving it effect for applicants, recipients, and Federal agency 
officials with responsibilities for carrying out required actions.

List of Subjects

2 CFR Part 25

    Administrative practice and procedures, Grants administration, 
Grant programs, Loan programs.

2 CFR Part 27

    Administrative practice and procedures, Grant programs, 
Information.

2 CFR Part 35

    Administrative practice and procedures, Archives and records, 
Cooperative agreements, Ethical conduct, Grant programs, Reporting and 
recordkeeping requirements.

2 CFR Part 77

    Administrative practice and procedures, Archives and records, 
Cooperative agreements, Grants administration, Grant programs.

2 CFR Part 180

    Administrative practice and procedure, Debarment and suspension, 
Grant programs, Loan programs, Reporting and recordkeeping 
requirements.

Danny Werfel,
Controller.

Authority and Issuance

    For the reasons set forth above, the Office of Management and 
Budget amends 2 CFR, subtitle A, as follows:
    1. In subtitle A to title 2, parts 2 through 99, which are 
currently reserved, are transferred to chapter I.
    2. Subchapter A to chapter I, consisting of parts 2 through 19, is 
established and reserved to read as follows:

Subchapter A--General Matters--[Reserved]

PARTS 2-19--[RESERVED]

    3. Subchapter B to chapter I, consisting of parts 20 through 39, is 
established and added to read as follows:

Subchapter B--Pre-Award Responsibilities

PARTS 20-24--[RESERVED]

PART 25--UNIVERSAL IDENTIFIER AND CENTRAL CONTRACTOR REGISTRATION

Sec.
Subpart A--General
25.100 Purposes of this part.
25.105 Types of awards to which this part applies.
25.110 Types of recipient and subrecipient entities to which this 
part applies.
25.115 Deviations.
Subpart B--Policy
25.200 Requirements for program announcements, regulations, and 
application instructions.
25.205 Effect of noncompliance with a requirement to obtain a DUNS 
number or register in the CCR.
25.210 Authority to modify agency application forms or formats.
25.215 Requirements for agency information systems.
25.220 Use of award term.
Subpart C--Definitions
25.300 Agency.
25.305 Award.
25.310 Central Contractor Registration (CCR).
25.315 Data Universal Numbering System (DUNS) Number.
25.320 Entity.
25.325 For-profit organization.
25.330 Foreign public entity.
25.335 Indian tribe (or ``Federally recognized Indian tribe'').
25.340 Local government.
25.345 Nonprofit organization.
25.350 State.
25.355 Subaward.
25.360 Subrecipient.
Appendix A to Part 25--Award Term

    Authority: Pub. L. 109-282; 31 U.S.C. 6102.

Subpart A--General


Sec.  25.100  Purposes of this part.

    This part provides guidance to agencies to establish:
    (a) The Dun and Bradstreet (D&B) Data Universal Numbering System 
(DUNS) number as a universal identifier for Federal financial 
assistance applicants, as well as recipients and their direct 
subrecipients.
    (b) The Central Contractor Registration (CCR) as the repository for 
standard information about those applicants, recipients, and 
subrecipients.


Sec.  25.105  Types of awards to which this part applies.

    This part applies to an agency's grants, cooperative agreements, 
loans, and other types of Federal financial assistance included in the 
definition of ``award'' in Sec.  25.305.


Sec.  25.110  Types of recipient and subrecipient entities to which 
this part applies.

    (a) General. Through an agency's implementation of the guidance in 
this part, this part applies to all entities, other than those excepted 
in paragraphs (b), (c), and (d) of this section, that--
    (1) Apply for or receive agency awards; or
    (2) Receive subawards directly from recipients of those agency 
awards.
    (b) Exceptions for individuals. None of the requirements in this 
part apply to an individual who applies for or receives Federal 
financial assistance as a natural person (i.e., unrelated to any 
business or non-profit organization he or she may own or operate in his 
or her name).
    (c) Exceptions for Federal agencies. The requirement in this part 
to maintain a current registration in the CCR does not apply to an 
agency of the Federal Government that receives an award from another 
agency.
    (d) Other exceptions. (1) Under a condition identified in paragraph 
(d)(2) of this section, an agency may except an entity from an 
applicable requirement to obtain a DUNS number, register in the CCR, or 
both.
    (i) In that case, the agency must use a generic DUNS number in any 
data that it reports for a prime award to the entity, as required by 
the Federal

[[Page 7323]]

Funding Accountability and Transparency Act (Pub. L. 109-282, hereafter 
cited as ``Transparency Act''). The agency must use the generic DUNS 
number in accordance with the current guidance at the CCR Web site.
    (ii) The agency also may provide a generic DUNS number for an 
entity receiving a subaward to the non-Federal entity that is making 
the subaward, for use in reporting information about the subaward under 
the Transparency Act.
    (2) The conditions under which an agency may exempt an entity are--
    (i) For any entity, if the agency determines that it must protect 
information about the entity from disclosure, to avoid compromising 
classified information or national security or jeopardizing the 
personal safety of the entity's clients.
    (ii) For a foreign entity applying for or receiving an award or 
subaward for a project or program performed outside the United States, 
if the agency deems it to be impractical for the entity to comply with 
the requirement(s).


Sec.  25.115  Deviations.

    Deviations from this part require the prior approval of the Office 
of Management and Budget (OMB).

Subpart B--Policy


Sec.  25.200  Requirements for program announcements, regulations, and 
application instructions.

    (a) Each agency that awards types of Federal financial assistance 
included in the definition of ``award'' in Sec.  25.305 must include 
the requirements described in paragraph (b) of this section in each 
program announcement, regulation, or other issuance containing 
instructions for applicants that either:
    (1) Is issued on or after the effective date of this part; or
    (2) Has application or plan due dates or anticipated award dates 
after October 1, 2010.
    (b) The program announcement, regulation, or other issuance must 
require each entity that applies and does not have an exception under 
Sec.  25.110 to:
    (1) Be registered in the CCR prior to submitting an application or 
plan;
    (2) Maintain an active CCR registration with current information at 
all times during which it has an active Federal award or an application 
or plan under consideration by an agency; and
    (3) Provide its DUNS number in each application or plan it submits 
to the agency.
    (c) For purposes of this policy:
    (1) The applicant is the entity that meets the agency's or 
program's eligibility criteria and has the legal authority to apply and 
to receive the award. For example, if a consortium applies for an award 
to be made to the consortium as the recipient, the consortium must have 
a DUNS number. If a consortium is eligible to receive funding under an 
agency program but the agency's policy is to make the award to a lead 
entity for the consortium, the DUNS number of the lead entity will be 
used.
    (2) A ``program announcement'' is any paper or electronic issuance 
that an agency uses to announce a funding opportunity, whether it is 
called a ``program announcement,'' ``notice of funding availability,'' 
``broad agency announcement,'' ``research announcement,'' 
``solicitation,'' or something else.


Sec.  25.205  Effect of noncompliance with a requirement to obtain a 
DUNS number or register in the CCR.

    (a) An agency may not make an award to an entity until the entity 
has complied with the requirements described in Sec.  25.200 to provide 
a valid DUNS number and maintain an active CCR registration with 
current information (other than any requirement that is not applicable 
because the entity is excepted under Sec.  25.110).
    (b) At the time an agency is ready to make an award, if the 
intended recipient has not complied with an applicable requirement to 
provide a DUNS number or maintain an active CCR registration with 
current information, as specified in the program announcement or other 
instructions, the agency:
    (1) May determine that the applicant is not qualified to receive an 
award; and
    (2) May use that determination as a basis for making an award to 
another applicant.


Sec.  25.210  Authority to modify agency application forms or formats.

    To implement the policies in Sec. Sec.  25.200 and 25.205, an 
agency may add a DUNS number field to application forms or formats 
previously approved by OMB, without having to obtain further approval 
to add the field.


Sec.  25.215  Requirements for agency information systems.

    Each agency that makes awards (as defined in Sec.  25.325) must 
ensure that systems processing information related to the awards, and 
other systems as appropriate, are able to accept and use the DUNS 
number as the universal identifier for financial assistance applicants 
and recipients.


Sec.  25.220  Use of award term.

    (a) To accomplish the purposes described in Sec.  25.100, an agency 
must include in each award (as defined in Sec.  25.305) the award term 
in Appendix A to this part.
    (b) An agency may use different letters and numbers than those in 
Appendix A to this part to designate the paragraphs of the award term, 
if necessary, to conform the system of paragraph designations with the 
one used in other terms and conditions in the agency's awards.

Subpart C--Definitions


Sec.  25.300  Agency.

    Agency means a Federal agency as defined at 5 U.S.C. 551(1) and 
further clarified by 5 U.S.C. 552(f).


Sec.  25.305  Award.

    (a) Award means an award of Federal financial assistance that a 
non-Federal entity described in Sec.  25.110(a) receives or administers 
in the form of--
    (1) A grant;
    (2) A cooperative agreement (which does not include a cooperative 
research and development agreement pursuant to the Federal Technology 
Transfer Act of 1986, as amended (15 U.S.C. (3710(a));
    (3) A loan;
    (4) A loan guarantee;
    (5) A subsidy;
    (6) Insurance;
    (7) Food commodities;
    (8) A direct appropriation;
    (9) Assessed or voluntary contributions; or
    (10) Any other financial assistance transaction that authorizes the 
non-Federal entity's expenditure of Federal funds.
    (b) An Award does not include:
    (1) Technical assistance, which provides services in lieu of money; 
and
    (2) A transfer of title to Federally owned property provided in 
lieu of money, even if the award is called a grant.


Sec.  25.310  Central Contractor Registration (CCR).

    Central Contractor Registration (CCR) has the meaning given in 
paragraph C.1 of the award term in Appendix A to this part.


Sec.  25.315  Data Universal Numbering System (DUNS) Number.

    Data Universal Numbering System (DUNS) Number has the meaning given 
in paragraph C.2 of the award term in Appendix A to this part.


Sec.  25.320  Entity.

    Entity, as it is used in this part, has the meaning given in 
paragraph C.3 of the award term in Appendix A to this part.

[[Page 7324]]

Sec.  25.325  For-profit organization.

    For-profit organization means a non-Federal party organized for 
profit. It includes, but is not limited to:
    (a) An ``S corporation'' incorporated under Subchapter S of the 
Internal Revenue Code;
    (b) A corporation incorporated under another authority;
    (c) A partnership;
    (d) A limited liability corporation or partnership; and
    (e) A sole proprietorship.


Sec.  25.330  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. 288-288(f));
    (c) An entity owned (in whole or in part) or controlled by a 
foreign government; and
    (d) Any other entity consisting wholly or partially of one or more 
foreign governments or foreign governmental entities.


Sec.  25.335  Indian tribe (or ``Federally recognized Indian tribe'').

    Indian tribe (or ``Federally recognized Indian tribe'') means any 
Indian tribe, band, nation, or other organized group or community, 
including any Alaskan Native village or regional or village corporation 
(as defined in, or established under, the Alaskan Native Claims 
Settlement Act (43 U.S.C. 1601, et seq.)) that is recognized by the 
United States as eligible for the special programs and services 
provided by the United States to Indians because of their status as 
Indians.


Sec.  25.340  Local government.

    Local government means 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 instrumentality of a local government.


Sec.  25.345  Nonprofit organization.

    Nonprofit organization--
    (a) Means any corporation, trust, association, cooperative, or 
other organization that--
    (1) Is operated primarily for scientific, educational, service, 
charitable, or similar purposes in the public interest;
    (2) Is not organized primarily for profit; and
    (3) Uses net proceeds to maintain, improve, or expand the 
operations of the organization.
    (b) Includes nonprofit--
    (1) Institutions of higher education;
    (2) Hospitals; and
    (3) Tribal organizations other than those included in the 
definition of ``Indian tribe.''


Sec.  25.350  State.

    State means--
    (a) Any State of the United States;
    (b) The District of Columbia;
    (c) Any agency or instrumentality of a State other than a local 
government or State-controlled institution of higher education;
    (d) The Commonwealths of Puerto Rico and the Northern Mariana 
Islands; and
    (e) The United States Virgin Islands, Guam, American Samoa, and a 
territory or possession of the United States.


Sec.  25.355  Subaward.

    Subaward has the meaning given in paragraph C.4 of the award term 
in Appendix A to this part.


Sec.  25.360  Subrecipient.

    Subrecipient has the meaning given in paragraph C.5 of the award 
term in Appendix A to this part.

Appendix A to Part 25--Award Term

    I. Central Contractor Registration and Universal Identifier 
Requirements.
    A. Requirement for recipients. Unless you are excepted from this 
requirement under 2 CFR 25.110, you as the recipient must maintain 
the currency of your information in the Central Contractor 
Registration (CCR) until you submit the final financial report 
required under this award or receive the final payment, whichever is 
later.
    B. Requirement for subrecipients. If you are authorized to make 
subawards under this award, you:
    1. Must notify potential subrecipients that no entity (see 
definition in paragraph C of this award term) may receive a subaward 
from you unless the entity has provided its Data Universal Numbering 
System (DUNS) number to you and is registered in the CCR.
    2. May not make a subaward to an entity unless the entity has 
provided its DUNS number to you and is registered in the Central 
Contractor Registration.
    C. Definitions. For purposes of this award term:
    1. Central Contractor Registration (CCR) means the Federal 
repository into which an entity must provide information required 
for the conduct of business as a recipient. Additional information 
about registration procedures may be found at the CCR Internet site 
(currently at https://www.ccr.gov).
    2. Data Universal Numbering System (DUNS) number means the nine-
digit number established and assigned by Dun and Bradstreet, Inc. 
(D&B) to uniquely identify business entities. A DUNS number may be 
obtained from D&B by telephone (currently 866-705-5711) or the 
Internet (currently at https://fedgov.dnb.com/webform).
    3. Entity, as it is used in this award term, means all of the 
following, as defined at 2 CFR part 25, subpart C:
    a. A Governmental organization, which is a State, local 
government, or Indian tribe;
    b. A foreign public entity;
    c. A domestic or foreign nonprofit organization;
    d. A domestic or foreign for-profit organization; and
    e. A Federal agency, but only as a subrecipient under an award 
or subaward to a non-Federal entity.
    4. Subaward:
    a. This term means a legal instrument to provide support for the 
performance of any portion of the substantive project or program for 
which you received this award and that you as the recipient award to 
an eligible subrecipient.
    b. The term does not include your procurement of property and 
services needed to carry out the project or program (for further 
explanation, see Sec. ----.210 of the attachment to OMB Circular A-
133, ``Audits of States, Local Governments, and Non-Profit 
Organizations'').
    c. A subaward may be provided through any legal agreement, 
including an agreement that you consider a contract.
    5. Subrecipient means an entity that:
    a. Receives a subaward from you under this award; and
    b. Is accountable to you for the use of the Federal funds 
provided by the subaward.

PART 26--[RESERVED]

PART 27--ANNOUNCEMENTS OF FUNDING OPPORTUNITIES

Sec.
27.5 Purpose of this part.
27.10 Applicability.
27.15 Federal agency implementation.
Subpart A--Competition--[Reserved]
Subpart B--Form and Content of Announcements
27.200 Purpose of subpart B.
27.205 Definition of ``program announcement''.
27.210 Use of the Governmentwide standard format for program 
announcements.
Subpart C--Issuance
27.300 Purpose of subpart C.
27.305 Electronic posting of program announcements.

[[Page 7325]]

27.310 Grants.gov posting of synopses of program announcements.
Appendix A to Part 27--Governmentwide Standard Announcement Format


    Authority: 31 U.S.C. 503; Reorganization Plan No. 2 of 1970; 
E.O. 11541, 35 FR 10737, 3 CFR, 1966-1970, p. 939; Sec. 872, Pub. L. 
110-417, 122 Stat. 4555.


Sec.  27.5  Purpose of this part.

    This part provides the Office of Management and