Office of Advocacy and Outreach Federal Financial Assistance Programs, 66169-66178 [2011-27108]

Agencies

• DEPARTMENT OF AGRICULTURE

[Federal Register Volume 76, Number 207 (Wednesday, October 26, 2011)]
[Rules and Regulations]
[Pages 66169-66178]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-27108]



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Rules and Regulations
                                                Federal Register
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to and codified in the Code of Federal Regulations, which is published 
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Federal Register / Vol. 76, No. 207 / Wednesday, October 26, 2011 / 
Rules and Regulations

[[Page 66169]]



DEPARTMENT OF AGRICULTURE

Office of Advocacy and Outreach

7 CFR Chapter XXV

RIN 0503-ZA01


Office of Advocacy and Outreach Federal Financial Assistance 
Programs

AGENCY: Office of Advocacy and Outreach, USDA.

ACTION: Interim rule with request for comments.

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SUMMARY: This interim rule establishes the regulations for the 
administrative provisions of all grants or cooperative agreements to be 
administered by the Office of Advocacy and Outreach (OAO), established 
by the Food, Conservation, and Energy Act of 2008, (FCEA). 
Additionally, this interim rule establishes substantive regulations for 
the Outreach and Assistance for Socially Disadvantaged Farmers and 
Ranchers Program (OASDFR Program), established by the Food, 
Agriculture, Conservation and Trade Act of 1990 (FACT Act). It sets 
forth the criteria to deliver outreach and technical assistance in a 
linguistically appropriate manner to socially disadvantaged farmers, 
ranchers and forest landowners to acquire, own, operate, and retain 
farms, ranches and non-industrial forest land. In addition, it assures 
farmers and ranchers who are members of socially disadvantaged groups 
equitable participation in the full range of agriculture programs 
offered by the Department.

DATES: This interim rule becomes effective on: October 26, 2011. OAO 
requests to receive comments on or before: December 27, 2011.

ADDRESSES: You may submit comments, identified by RIN 0503-ZA01, by any 
of the following methods:
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     E--Mail: Asher.Weinberg@osec.usda.gov. Include RIN 0503-
ZA01 in the subject line of the message.
     Fax: 202-720-7136. Include RIN 0503-ZA01 in the subject 
line of the message.
     Mail: paper, disk, or CD-ROM submissions should be 
submitted to: Office of Advocacy and Outreach, U.S. Department of 
Agriculture, Attn: Asher Weinberg RIN 0503-ZA01, 1400 Independence 
Avenue, Room 520-A, Stop 9801, Washington, DC 20250-9821
     Hand Delivery/Courier: Office of Advocacy and Outreach, 
U.S. Department of Agriculture, Attn: Asher Weinberg RIN 0503-ZA01, 
1400 Independence Avenue, Room 520-A, Washington, DC 20250-9821
    Instructions: All submissions received must include the agency name 
and RIN for this rulemaking.

FOR FURTHER INFORMATION CONTACT: Asher Weinberg, Grants Program 
Manager, OASDFR Program, at (202) 720-3112.

SUPPLEMENTARY INFORMATION:

I. Introduction

    The FCEA amended the Department of Agriculture Reorganization Act 
of 1994, to establish OAO. In addition, the FCEA amended Section 
2501(a) of the FACT Act, to transfer the OASDFR Program to OAO and to 
authorize mandatory funding for this program for Fiscal Year (FY) 2009 
through FY 2012. The purpose of this rulemaking is to establish general 
regulations governing awards management procedures for all OAO award 
programs. This rulemaking will also establish specific regulations 
governing the OASDFR Program awards management procedures.

II. Administration Requirements

Executive Orders 12866 & 13563

    This action has been determined not significant for the purposes of 
Executive Orders 12866 and 13563, and therefore, has not been reviewed 
by the Office of Management and Budget. This interim rule will not 
create a serious inconsistency or otherwise interfere with an action 
taken or planned by another agency. It will not materially alter the 
budgetary impact of entitlements, grants, user fees, or loan programs. 
It will not have an annual effect on the economy of $100 million or 
more, nor will it adversely affect the economy, a sector of the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or communities 
in a material way. Furthermore, it does not raise a novel legal or 
policy issue arising out of legal mandates, the President's priorities 
or principles set forth in the Executive Order.

Regulatory Flexibility Act of 1980

    This interim rule has been reviewed in accordance with the 
Regulatory Flexibility Act of 1980, as amended by the Small Business 
Regulatory Enforcement Fairness Act of 1996, 5 U.S.C. 601-612. The 
Department concluded that the rule will not have a significant economic 
impact on a substantial number of small entities. The rule does not 
involve regulatory and informational requirements regarding businesses, 
organizations, and governmental jurisdictions subject to regulation.

Paperwork Reduction Act (PRA)

    The Department certifies that this interim rule has been assessed 
in accordance with the requirements of the Paperwork Reduction Act, 44 
U.S.C. 2501 et seq., (PRA). The Department concludes that this interim 
rule does not impose any new information requirements.

Catalog of Federal Domestic Assistance

    This interim regulation applies to Federal assistance programs 
administered by OAO, including 10.443, Outreach and Assistance for 
Socially Disadvantaged Farmers and Ranchers and 10.465, Farmworker 
Training Grants.

Unfunded Mandates Reform Act of 1995 and Executive Order 13132

    The Department has reviewed this interim rule in accordance with 
the requirements of Executive Order No. 13132 and the Unfunded Mandates 
Reform Act of 1995, 2 U.S.C. 1501 et seq., and has found no potential 
or substantial direct effects on the States, on the relationship 
between the national government and the States, or on the distribution 
of power and responsibilities among the various levels of government. 
As there is no

[[Page 66170]]

Federal mandate contained herein that could result in increased 
expenditures by State, local, or tribal governments or by the private 
sector, the Department has not prepared a budgetary impact statement.

Executive Order 13175: Consultation and Coordination With Indian Tribal 
Governments

    The Department has reviewed this interim rule in accordance with 
Executive Order 13175 and has determined that it does not have ``tribal 
implications.'' The interim rule does not ``have substantial direct 
effects on one or more Indian tribes, on the relationship between the 
Federal government and Indian tribes, or on the distribution of power 
and responsibility between the Federal government and Indian tribes.''

III. Statutory Authority

    Section 14013 of the FCEA establishes OAO. This section specifies 
the establishment and transfer of programs to OAO, including the 
Socially Disadvantaged Farmers Group, the Small Farms and Beginning 
Farmers and Ranchers Group, the Farmworker Coordinator, and other 
programs as determined by the Secretary. In addition, Section 14004 
amended Section 2501(a) of the FACT Act to clarify the Secretary's 
authority to engage in grants and other agreements to provide outreach 
and assistance for socially disadvantaged farmers and ranchers. 
Previously, the OASDFR Program (also known as 2501 Program) was 
administered by the National Institute of Food and Agriculture (NIFA). 
Section 14013 of the FCEA added Section 226B to the Department of 
Agriculture Reorganization Act of 1994 to transfer the OASDFR Program 
to OAO. The OASDFR Program provides outreach and technical assistance 
in a linguistically appropriate manner to encourage and assist current 
and prospective socially disadvantaged farmers, ranchers, and forest 
landowners in (1) owning and operating farms, ranches, and non-
industrial forest lands; and (2) in participating equitably in the full 
range of agricultural programs offered by the Department.

IV. Section-by-Section Analysis

    This interim rule will identify OAO awards management procedures 
for all competitive and noncompetitive award programs administered 
within OAO. General OAO awards management procedures are discussed in 
part 2500 subparts A, B, C, D and E. Part 2500 subpart F of this 
regulation provides program-specific procedures for the OASDFR Program.

Part 2500--OAO Federal Financial Assistance Programs--General Award 
Administrative Procedures

A. Subpart A--General Information

    The purpose of this subpart is to establish the definitions and 
statutes and regulations applicable to this part

B. Subpart B--Pre-Award: Solicitation and Proposal

    The purpose of this subpart is to establish the solicitation 
criteria through a Request for Proposals (RFP). This subpart also 
identifies the type of proposals to be submitted and OAO eligibility 
requirements.

C. Subpart C--Pre-Award: Proposal Review and Evaluation

    The purpose of this subpart is to establish the requirements for 
reviewing, evaluating and selecting proposals. This subpart also 
establishes the OAO ``Applicant Feedback'' process.

D. Subpart D--Award

    The purpose of this subpart is to identify the OAO administrative 
processes for spending program funds. This subpart also establishes the 
OAO award agreement which defines the terms and conditions of the 
award.

E. Subpart E--Post-Award and Closeout

    The purpose of this subpart is to establish the OAO post-award and 
closeout requirements. Subsequently, this subpart also establishes the 
OAO regulations in regard to cost-sharing and matching, indirect cost, 
program income, and financial and technical reporting.

F. Subpart F--Outreach and Assistance for Socially Disadvantaged 
Farmers and Ranchers Program

    The purpose of this subpart is to establish the program-specific 
grants and cooperative agreements management procedures for the OASDFR 
Program.

List of Subjects in 7 CFR Part 2500

    Farmers, Federal aid programs, Grants administration, Grant 
programs--agriculture, Ranchers, Socially disadvantaged groups.

    For the reasons discussed in the preamble, the Office of Advocacy 
and Outreach, Departmental Management adds chapter XXV, consisting of 
part 2500, to Title 7 of the Code of Federal Regulations to read as 
follows:

Chapter XXV--Office of Advocacy and Outreach

PART 2500--OAO FEDERAL FINANCIAL ASSISTANCE PROGRAMS--GENERAL AWARD 
ADMINISTRATIVE PROCEDURES

Subpart A--General Information
Sec.
2500.001 Applicability of regulations.
2500.002 Definitions.
2500.003 Other applicable statutes and regulations.
Subpart B--Pre-Award: Solicitation and Proposals
2500.011 Competition.
2500.012 Requests for proposals.
2500.013 Types of proposals.
2500.014 Eligibility requirements.
2500.015 Content of a proposal.
2500.016 Submission of a proposal.
2500.017 Confidentiality of proposals and awards.
2500.018 Electronic submission.
Subpart C--Pre-Award: Proposal Review and Evaluation
2500.021 Guiding principles.
2500.022 Preliminary proposal review.
2500.023 Selection of reviewers.
2500.024 Evaluation criteria.
2500.025 Procedures to minimize or eliminate duplication of effort.
2500.026 Applicant feedback.
Subpart D--Award
2500.031 Administration.
Subpart E--Post-Award and Closeout
2500.041 Payment.
2500.042 Cost sharing and matching.
2500.043 Program income.
2500.044 Indirect costs.
2500.045 Technical reporting.
2500.046 Financial reporting.
2500.047 Project meetings.
2500.048 Review of disallowed costs.
2500.049 Prior approvals.
2500.050 Suspension, termination, and withholding of support.
2500.051 Debt collection.
2500.052 Award appeals procedures.
2500.053 Expiring appropriations.
2500.054 Monitoring scope, purpose, and awardee responsibility.
2500.055 Audit.
2500.056 Civil rights.
Subpart F--Outreach and Assistance for Socially Disadvantaged Farmers 
and Ranchers Program
2500.101 Applicability of regulations.
2500.102 Purpose.
2500.103 Definitions.
2500.104 Eligibility requirements.
2500.105 Project types and priorities.
2500.106 Funding restrictions.
2500.107 Matching.
2500.108 Term of award.
2500.109 Program requirements.

    Authority:  7 U.S.C. 6934, 7 U.S.C. 2279.

[[Page 66171]]

Subpart A--General Information


Sec.  2500.001  Applicability of regulations.

    The regulations in subparts A through E of this part apply to the 
programs authorized under section 14013 of the FCEA to be administered 
within the Office of Advocacy and Outreach (OAO). The purpose of this 
part is to set forth regulations for competitive and noncompetitive 
grants, cooperative agreements, and other assistance agreements awarded 
through OAO.


Sec.  2500.002  Definitions.

    Applicant means the entity that has submitted a proposal in 
response to an OAO Request For Proposal (RFP).
    Authorized Departmental Officer (ADO) means the Secretary or any 
employee of the Department with delegated authority to issue or modify 
award instruments on behalf of the Secretary.
    Authorized Organizational Representative (AOR) means the President 
or Chief Executive Officer of the applicant organization or the 
official, designated by the President or Chief Executive Officer of the 
applicant organization, who has the authority to commit the resources 
of the organization to the project.
    Award means financial assistance that provides support to 
accomplish a public purpose. Awards may be grants, cooperative 
agreements, or other assistance agreements.
    Award agreement means the agreement between OAO and the awardee 
which sets forth the terms and conditions under which the OAO funds 
will be made available. Award agreement is used as a general term to 
describe grant agreements, cooperative agreements, and other assistance 
agreements.
    Award closeout means the process by which the award operation is 
concluded at the expiration of the award period or following a decision 
to terminate the award.
    Award period means the timeframe of the award from the beginning 
date to the ending date as defined in the award agreement.
    Awardee means the entity designated in the grant agreement, 
cooperative agreement, or other assistance agreement as the legal 
entity to which the award is given.
    Baseline monitoring is the minimum, basic monitoring that will take 
place on an ongoing basis throughout the lifetime of every award.
    Beginning date means the date the award agreement is executed by 
the awardee and OAO and from which costs can be incurred.
    Community-based organization means a nongovernmental organization 
with a well-defined constituency that includes all or part of a 
particular community.
    Cooperative agreement means the award of funds to an eligible 
awardee to assist in meeting the costs of conducting a project which is 
intended and designed to accomplish the purpose of the program as 
identified in the RFP, and where substantial involvement is expected 
between OAO and the awardee when carrying out the activities included 
in the agreement. This agreement may also be referred to more generally 
as an award.
    Department means the U.S. Department of Agriculture.
    Disallowed costs means the use of Federal financial assistance 
funds for unauthorized activities or items as stipulated in the 
applicable Federal cost principles (2 CFR part 220, 2 CFR part 225, and 
2 CFR part 230).
    Ending date means the date the award agreement is scheduled to be 
completed. It is also the latest date award funds will be provided 
under the award agreement, without an approved time extension.
    Participant means an individual or entity that participates in 
awardee-led activities funded under the award agreement. Furthermore, a 
participant is any individual or entity who has applied for, otherwise 
participated in, or received a payment, or other benefit as a result of 
participating in an activity funded by an OAO award.
    Partnering means a joint effort among two or more eligible entities 
with the capacity to conduct projects intended and designed to 
accomplish the purpose of the program.
    Program leader means the program supervisor within OAO.
    Project means activities supported under an OAO award.
    Project Director (PD) means the individual designated by the 
awardee in the proposal and award documentation, and approved by the 
ADO who is responsible for the direction and management of the award.
    Project Officer (PO) means an individual within OAO who is 
responsible for the programmatic oversight of the award on behalf of 
the Department.
    Request for Proposals (RFP) means an official USDA funding 
opportunity. At OAO discretion, funding opportunities may be referred 
to as request for proposals, request for applications, notice of 
funding availability, or funding opportunity.
    Review panel means an evaluation process involving qualified 
individuals within the relevant field to give advice on the merit of 
proposals submitted to OAO.
    Secretary means the Secretary of Agriculture and any other officer 
or employee of the Department of Agriculture to whom authority may be 
delegated.
    Terminate funding means the cancellation of Federal assistance, in 
whole or in part, at any time before the ending date.


Sec.  2500.003  Other applicable statutes and regulations.

    Several Federal statutes and regulations apply to proposals for 
Federal assistance considered for review and to grants and cooperative 
agreements awarded by OAO. These include, but are not limited to:
    (a) 7 CFR Part 1, Subpart A--USDA implementation of the Freedom of 
Information Act;
    (b) 7 CFR Part 3--USDA implementation of OMB Circular No. A-129, 
regarding debt management;
    (c) Title VI of the Civil Rights Act of 1964 (Pub. L. 88-352), as 
amended, which prohibits discrimination on the basis of race, color, or 
national origin, and 7 CFR part 15, subpart A (USDA implementation);
    (d) 7 CFR Part 3015--USDA Uniform Federal Assistance Regulations, 
implementing OMB directives and incorporating provisions of the Federal 
Grant and Cooperative Agreement Act of 1977, Public Law 95-224, 31 
U.S.C. Sec.  6301-6308, as well as general policy requirements 
applicable to awardees of Departmental financial assistance.
    (e) 7 CFR Part 3016--USDA implementation of Administrative 
Requirements for Grants and Cooperative Agreements to State and Local 
Governments.
    (f) 7 CFR Part 3017--USDA implementation of Governmentwide 
Debarment and Suspension (Nonprocurement).
    (g) 7 CFR Part 3018--USDA implementation of Restrictions on 
Lobbying. Imposes prohibitions and requirements for disclosure and 
certification related to lobbying on awardees of Federal contracts, 
grants, cooperative agreements, and loans.
    (h) 7 CFR Part 3019--USDA implementation of OMB Circular No. A-110, 
Uniform Administrative Requirements for Grants and Agreements with 
Institutions of Higher Education, Hospitals and Other Non-Profit 
Organizations (now relocated at 2 CFR part 215).
    (i) 7 CFR Part 3021--USDA implementation of Governmentwide 
Requirements for Drug-Free Workplace (Financial Assistance).

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    (j) 7 CFR Part 3052--USDA implementation of OMB Circular No. A-133, 
Audits of States, Local Governments, and Non-Profit Organizations.
    (k) 7 U.S.C. 3318--conferring upon the Secretary general authority 
to enter into contracts, grants, and cooperative agreements to further 
the research, extension, or teaching programs in the food and 
agricultural sciences of the Department of Agriculture.
    (l) 29 U.S.C. 794 (Section 504, Rehabilitation Act of 1973) and 7 
CFR part 15b (USDA implementation of statute)--prohibiting 
discrimination based upon physical or mental handicap in Federally 
assisted programs.
    (m) 35 U.S.C. 200 et seq.--Bayh-Dole Act, promoting the utilization 
of inventions arising from federally supported research or development; 
encouraging maximum participation of small business firms in federally 
supported research and development efforts; and promoting collaboration 
between commercial concerns and nonprofit organizations, including 
universities, while ensuring that the Government obtains sufficient 
rights in federally supported inventions to meet the needs of the 
Government and protect the public against nonuse or unreasonable use of 
inventions (implementing regulations are contained in 37 CFR part 401)
    (n) Title IX of the Education Amendment of 1972 (20 U.S.C. 1681-
1683 and 1685-1686), as amended, which prohibits discrimination on the 
basis of sex;
    (o) Age Discrimination Act of 1975 (42 U.S.C. 6101-6107), as 
amended, which prohibits discrimination on the basis of age;
    (p) Drug Abuse Office and Treatment Act of 1972 (Pub. L. 92-255), 
as amended, relating to nondiscrimination on the basis of drug abuse;
    (q) Comprehensive Alcohol Abuse and Alcoholism Prevention, 
Treatment and Rehabilitation Act of 1970 (Pub. L. 91-616), as amended, 
relating to nondiscrimination on the basis of alcohol abuse or 
alcoholism;
    (r) Sections 523 and 527 of the Public Health Service Act of 1912 
(42 U.S.C. 290dd-3 and 290ee-3), as amended, relating to 
confidentiality of alcohol and drug abuse patient records;
    (s) Title VIII of the Civil Rights Act of 1968 (42 U.S.C. 3601 et 
seq.), as amended, relating to nondiscrimination in the sale, rental or 
financing of housing;
    (t) Any other nondiscrimination provisions in the specific 
statute(s) under which proposals for Federal assistance are made, and 
the requirements of any other nondiscrimination statute(s) which may 
apply to the proposal.

Subpart B--Pre-Award: Solicitation and Proposals


Sec.  2500.011  Competition.

    (a) Standards for competition. Except as provided in paragraph (b) 
of this section, OAO will enter into discretionary grants or 
cooperative agreement only after competition, unless restricted by 
statute.
    (b) Exception. The OAO ADO may make a determination in writing that 
competition is not deemed appropriate for a particular transaction. 
Such determination shall be limited to transactions where it can be 
adequately justified that a noncompetitive award is in the best 
interest of the Federal Government and necessary to the goals of the 
program. Non-competitive determinations will comply with regulations 
established in 7 CFR 3015.158(d).


Sec.  2500.012  Requests for proposals.

    (a) General. For each competitive grant or cooperative agreement, 
OAO will prepare a program solicitation (also called a request for 
proposals (RFP)). The RFP may include all or a portion of the following 
items:
    (1) Contact information.
    (2) Catalog of Federal Domestic Assistance (CFDA) number.
    (3) Legislative authority and background information.
    (4) Purpose, priorities, and fund availability.
    (5) Program-specific eligibility requirements.
    (6) Program-specific restrictions on the use of funds, if 
applicable.
    (7) Matching requirements, if applicable.
    (8) Acceptable types of proposals.
    (9) Types of projects to be given priority consideration, including 
maximum anticipated awards and maximum project lengths, if applicable.
    (10) Program areas, if applicable.
    (11) Funding restrictions, if applicable.
    (12) Directions for obtaining additional requests for proposals and 
proposal forms.
    (13) Information about how to obtain proposal forms and the 
instructions for completing such forms.
    (14) Instructions and requirements for submitting proposals, 
including submission deadline(s).
    (15) Explanation of the proposal evaluation process.
    (16) Specific evaluation criteria used in the review process.
    (17) Type of Federal assistance awards (i.e., grants or cooperative 
agreements).
    (b) RFP variations. Where program-specific requirements differ from 
the requirements established in this part, program solicitations will 
also address any such variation(s). Variations may occur in the 
following:
    (1) Award management guidelines.
    (2) Restrictions on the delegation of fiscal responsibility.
    (3) Required approval for changes to project plans.
    (4) Expected program outputs and reporting requirements, if 
applicable.
    (5) Applicable Federal statutes and regulations.
    (6) Confidential aspects of proposals and awards, if applicable.
    (7) Regulatory information.
    (8) Definitions.
    (9) Minimum and maximum budget requests and whether proposals 
outside of these limits will be returned without further review.
    (c) Program announcements. Occasionally, OAO will issue a program 
announcement (PA) to alert potential applicants and the public about 
new and ongoing funding opportunities. These PAs may provide tentative 
due dates and are released without associated proposal packages. No 
proposals are solicited under a PA. PAs will be announced in the 
Federal Register or on the OAO Web site.


Sec.  2500.013  Types of proposals.

    The type of proposal acceptable may vary by funding opportunity. 
The RFP will stipulate what will be required for submission to OAO in 
response to the funding opportunity.


Sec.  2500.014  Eligibility requirements.

    Program-specific eligibility requirements appear in the subpart 
applicable to each program and in the corresponding RFPs.


Sec.  2500.015  Content of a proposal.

    The RFP provides instructions on how to access a funding 
opportunity. The funding opportunity contains the proposal package, 
which includes the forms necessary for completion of a proposal in 
response to the RFP. The RFP will be posted on https://www.Grants.gov. 
OAO may also publish the RFP in the Federal Register.


Sec.  2500.016  Submission of a proposal.

    The RFP will provide deadlines for the submission of proposals. OAO 
may issue separate RFPs and/or establish separate deadlines for 
different types of proposals, different award instruments, or different 
topics or phases of the

[[Page 66173]]

assistance programs. If proposals are not received by applicable 
deadlines, they will not be considered for funding. Exceptions will be 
considered only when extenuating circumstances exist, as determined by 
OAO, and justification and supporting documentation are provided by the 
applicant. Conformance with preparation and submission instructions is 
required and will be strictly enforced unless a deviation has been 
approved. OAO may establish additional requirements. OAO may return 
without review proposals that are not consistent with the RFP 
instructions.


Sec.  2500.017  Confidentiality of proposals and awards.

    (a) General. Names of entities submitting proposals, as well as 
proposal contents and evaluations, except to those involved in the 
review process, will be kept confidential to the extent permissible by 
law.
    (b) Identifying confidential and proprietary information in a 
proposal. If a proposal contains proprietary information that 
constitutes a trade secret, proprietary commercial or financial 
information, confidential personal information, or data affecting the 
national security, it will be treated in confidence to the extent 
permitted by law, provided that the information is clearly marked by 
the applicant with the term ``confidential and proprietary 
information.'' In addition, the following statement must be included at 
the bottom of the project narrative or any other attachment included in 
the proposal that contains such information: ``The following pages 
(specify) contain proprietary information which (name of proposing 
organization) requests not to be released to persons outside the 
Government, except for purposes of evaluation.''
    (c) Disposition of proposals. By law, OAO is required to make the 
final decisions as to whether the information is required to be kept in 
confidence. Information contained in unsuccessful proposals will remain 
the property of the applicant. However, the Department will retain for 
three years one file copy of each proposal received; extra copies will 
be destroyed. Public release of information from any proposal submitted 
will be subject to existing legal requirements. Any proposal that is 
funded will be considered an integral part of the award and normally 
will be made available to the public upon request, except for 
information designated proprietary by OAO.
    (d) Submission of proprietary information. The inclusion of 
proprietary information is discouraged unless it is necessary for the 
proper evaluation of the proposal. If proprietary information is to be 
included, it should be limited, set apart from other text on a separate 
page, and keyed to the text by numbers. It should be confined to a few 
critical technical items that, if disclosed, could jeopardize the 
obtaining of foreign or domestic patents. Trade secrets, salaries, or 
other information that could jeopardize commercial competitiveness 
should be similarly keyed and presented on a separate page. Proposals 
or reports that attempt to restrict dissemination of large amounts of 
information may be found unacceptable by OAO and constitute grounds for 
return of the proposal without further consideration. Without assuming 
any liability for inadvertent disclosure, OAO will limit dissemination 
of such information to its employees and, where necessary for the 
evaluation of the proposal, to outside reviewers on a confidential 
basis.


Sec.  2500.018  Electronic submission.

    Applicants and awardees are encouraged, but not required, to submit 
proposals and reports in electronic form as prescribed in the RFP 
issued by OAO and in the applicable award agreement.

Subpart C--Pre-Award: Proposal Review and Evaluation


Sec.  2500.021  Guiding principles.

    The guiding principle for Federal assistance proposal review and 
evaluation is to ensure that each proposal is treated in a consistent 
and fair manner. After the evaluation process by the review panel, OAO 
will provide an opportunity for applicant feedback in as timely a 
manner as possible.


Sec.  2500.022  Preliminary proposal review.

    Prior to technical examination, a preliminary review will be made 
of all proposals for responsiveness to the administrative requirements 
set forth in the RFP. Proposals that do not meet the administrative 
requirements may be eliminated from program competition. However, OAO 
retains the right to conduct discussions with applicants to resolve 
technical and/or budget issues, as deemed necessary by OAO.


Sec.  2500.023  Selection of reviewers.

    (a) Requirement. OAO is responsible for performing a review of 
proposals submitted to OAO competitive award programs. The RFP will 
identify the criteria that OAO will use for the selection of the 
proposal review panel.
    (b) Confidentiality. The identities of reviewers will remain 
confidential to the maximum extent possible. Therefore, the names of 
reviewers will not be released to applicants. Names of applicants, as 
well as proposal content and evaluation comments will be kept 
confidential to the extent permitted by law, except to those involved 
in the review process. Reviewers will comply with the above-mentioned 
confidentiality guidelines.
    (c) Conflicts of interest. During the evaluation process, extreme 
care will be taken to prevent any actual or perceived conflicts of 
interest that may impact review or evaluation. Reviewers are expected 
to be in compliance with the Conflict-of-Interest process made a part 
of the RFP.


Sec.  2500.024  Evaluation criteria.

    (a) General. To ensure any project receiving funds from OAO is 
consistent with the broad goals of the funding program, the content of 
each proposal submitted to OAO will be evaluated based on a pre-
determined set of review criteria as indicated in the RFP.
    (b) Guidance for reviewers. In order that all potential applicants 
for a program have similar opportunities to compete for funds, all 
reviewers will receive an orientation from the Program Leader of the 
review criteria. Reviewers are instructed to use those same evaluation 
criteria, and only those criteria, to judge the merit of the proposals 
they review.


Sec.  2500.025  Procedures to minimize or eliminate duplication of 
effort.

    OAO may implement appropriate business processes to minimize or 
eliminate the awarding of Federal assistance to projects that 
unnecessarily duplicate activities already being sponsored under other 
awards, including awards made by other Federal agencies.


Sec.  2500.026  Applicant feedback.

    Unsuccessful applicants may submit a request for applicant feedback 
in writing to OAO within 10 days after receiving written notice of not 
being selected for further processing. Applicant feedback requests are 
to be mailed to the Program Leader at the address below, unless 
otherwise stated in the ``Notice of Non-Selection'' or in the RFP. At 
OAO's discretion, either written or oral feedback will be provided to 
unsuccessful applicants.
    U.S. Department of Agriculture, Departmental Management, Office of 
Advocacy and Outreach, Attn: Program Leader (Applicant Feedback), 
Whitten Building, Rm. 520-A, stop 9821, 1400 Independence Avenue, SW., 
Washington, DC 20250-9821.

[[Page 66174]]

Subpart D--Award


Sec.  2500.031  Administration.

    (a) General. Within the limit of funds available for such purpose, 
the OAO ADO shall make Federal assistance awards to those responsible, 
eligible applicants whose proposals are judged most meritorious under 
the procedures set forth in the RFP. The date specified by the OAO ADO 
as the effective date of the award shall be no later than September 
30th of the Federal fiscal year in which the project is approved for 
support and funds are appropriated for such purpose, unless otherwise 
permitted by law. It should be noted that the project need not be 
initiated on the award effective date, but as soon thereafter as 
practical so that project goals may be attained within the funded 
project period. All funds awarded by OAO shall be expended solely for 
the purpose for which the funds are awarded in accordance with the 
approved statement of work and budget, the regulations, the terms and 
conditions of the OAO award agreement, the applicable Federal cost 
principles, and the Department's assistance regulations (e.g., 7 CFR 
parts 3015, 3016, and 3019).
    (b) Award agreement. The award agreement and accompanying terms and 
conditions will provide pertinent instructions and information 
including, at a minimum, the following:
    (1) Legal name and address of performing organization or 
institution to which OAO has awarded a grant or cooperative agreement.
    (2) Title of project.
    (3) Name(s) of Project Director(s).
    (4) Identifying award number assigned by OAO.
    (5) Project period.
    (6) Total amount of OAO financial assistance approved.
    (7) Legal authority under which the grant or cooperative agreement 
is awarded.
    (8) Appropriate CFDA number.
    (9) Approved budget plan (that may be referenced).
    (10) Terms and Conditions

Subpart E--Post-Award and Closeout


Sec.  2500.041  Payment.

    (a) General. All payments will be made in advance unless a 
deviation is accepted or as specified in paragraph (b) of this section. 
All payments to the awardee shall be made via the approved electronic 
funds transfer (EFT) method. Awardees are expected to request funds via 
the federally-approved electronic payment system for reimbursement in a 
timely manner. Exact payment method will be described in the terms and 
conditions of the award agreement.
    (b) Reimbursement method. OAO shall use the reimbursement method if 
it determines that advance payment is not feasible or that the awardee 
does not maintain or demonstrate the willingness to maintain written 
procedures that minimize the elapse of time between the transfer of 
funds and disbursement by the awardee, and financial management systems 
that meet the standards for fund control and accountability.


Sec.  2500.042  Cost sharing and matching.

    (a) General. Awardees may be required to match the Federal funds 
received under an OAO award. The required percentage of matching, type 
of matching (e.g., cash and/or in-kind contributions), sources of match 
(e.g., non-Federal), and whether OAO has any authority to waive the 
match will be specified in the subpart applicable to the specific 
Federal assistance program, as well as in the RFP.
    (b) Indirect costs as in-kind matching contributions. Indirect 
costs may be claimed under the Federal portion of the award budget. 
However, unless explicitly authorized in the RFP, indirect costs may 
not be claimed on both the Federal and nonfederal portion of the award 
budget.


Sec.  2500.043  Program income.

    (a) General. OAO shall apply the standards set forth in this 
subpart in requiring awardee organizations to account for program 
income related to projects financed in whole or in part with Federal 
funds.
    (b) Addition method. Unless otherwise provided in the authorizing 
statute, in accordance with the terms and conditions of the award, 
program income earned during the project period shall be retained by 
the awardee and shall be added to funds committed to the project by OAO 
and the awardee and used to further eligible project or program 
objectives. Any specific program deviations will be identified in the 
individual subparts.
    (c) Award terms and conditions. Unless the program regulations 
identified in the individual subpart provide otherwise, awardees shall 
follow the terms and conditions of the OAO award. Such terms and 
conditions will be made a part of the OAO award agreement.


Sec.  2500.044  Indirect costs.

    Indirect cost rates for grants and cooperative agreements shall be 
determined in accordance with the applicable assistance regulations and 
cost principles, unless superseded by another authority.


Sec.  2500.045  Technical reporting.

    All projects supported with Federal funds under this part must be 
documented according to the terms and conditions of the OAO award 
agreement.


Sec.  2500.046  Financial reporting.

    (a) SF-425, Federal Financial Report. As stated in the award terms 
and conditions of the OAO award agreement, a final SF-425, Federal 
Financial Report, is due 90 days after the expiration of the award and 
should be submitted to OAO electronically. The awardee shall report 
program outlays and program income on the same accounting basis (i.e., 
cash or accrual) that it uses in its normal accounting system. When 
submitting a final SF-425, Federal Financial Report, the total matching 
contribution, if required, should be shown in the report. The final SF-
425 must not show any unliquidated obligations. If the awardee still 
has valid obligations that remain unpaid when the report is due, it 
shall request an extension of time for submitting the report pursuant 
to paragraph (c) of this section; submit a provisional report (showing 
the unliquidated obligations) by the due date; and submit a final 
report when all obligations have been liquidated, but no later than the 
approved extension date. SF-425, Federal Financial Reports, must be 
submitted by all awardees, including Federal agencies and national 
laboratories.
    (b) Awards with required matching. For awards requiring a matching 
contribution, an annual SF-425, Federal Financial Report, is required 
and this requirement will be indicated in the terms and conditions of 
the OAO award agreement, in which case it must be submitted no later 
than 45 days following the end of the budget or reporting period.
    (c) After the due date. Requests are considered late when they are 
submitted after the 90-day period following the award expiration date. 
Requests to submit a late final SF-425, Federal Financial Report, will 
only be considered, up to 30 days after the due date, in extenuating 
circumstances. This request should include a provisional report 
pursuant to paragraph (a) of this section, as well as an anticipated 
submission date, a justification for the late submission, and a 
justification for the extenuating circumstances. If an awardee needs to 
request additional funds, procedures in paragraph (d) of this section 
apply.

[[Page 66175]]

    (d) Overdue SF-425, Federal Financial Reports. Awardees with 
overdue SF-425, Federal Financial Reports, or other required financial 
reports (as identified in the award terms and conditions), will have 
their applicable balances in the approved federal electronic funds 
transfer system restricted or placed on ``manual review,'' which 
restricts the awardee's ability to draw funds, thus requiring prior 
approval from OAO. If any remaining available balances are needed by 
the awardee (beyond the 90-day period following the award expiration 
date) and the awardee has not requested an extension to submit a final 
SF-425, Financial Status Report, the awardee will be required to 
contact OAO to request permission to draw any additional funds and will 
be required to provide justification and documentation to support the 
draw. Awardees also will need to comply with procedures in paragraph 
(c) of this section. OAO will approve these draw requests only in 
extenuating circumstances.
    (e) Additional reporting requirements. OAO may require forecasts of 
Federal cash requirements in the ``Remarks'' section of the report; and 
when practical and deemed necessary, OAO may require awardees to report 
in the ``Remarks'' section the amount of cash advances received in 
excess of three days (i.e., short narrative with explanations of 
actions taken to reduce the excess balances). When OAO needs additional 
information or more frequent reports, a special provision will be added 
to the award terms and conditions and identified in the OAO award 
agreement. Should OAO determine that an awardee's accounting system is 
inadequate, additional pertinent information to further monitor awards 
may be requested from the awardee until such time as the system is 
brought up to standard, as determined by OAO. This additional reporting 
requirement will be required via a special provision to the award terms 
and conditions of the OAO award agreement.


Sec.  2500.047  Project meetings.

    In addition to reviewing and monitoring the status of progress and 
final technical reports and financial reports, OAO Project Officers may 
use regular and periodic conference calls to monitor the awardee's 
performance as well as conferences, workshops, meetings, and symposia 
to not only monitor the awards, but to facilitate communication and the 
sharing of project results. These opportunities also serve to eliminate 
or minimize OAO funding of unneeded duplicative project activities. 
Required attendance at these conference calls, conferences, workshops, 
meetings, and symposia will be identified in the RFP or award document.


Sec.  2500.048  Review of disallowed costs.

    (a) Notice. If the OAO Project Officer (PO) determines that there 
is a basis for disallowing a cost, OAO shall provide the awardee 
written notice of its intent to disallow the cost. The written notice 
shall state the amount of the cost and the factual and legal basis for 
disallowing it.
    (b) Awardee response. Within 60 days of receiving written notice of 
the PO's intent to disallow the cost, the awardee may respond with 
written evidence and arguments to show the cost is allowable, or that, 
for equitable, practical, or other reasons, shall not recover all or 
part of the amount, or that the recovery should be made in 
installments. An extension of time will be granted only in extenuating 
circumstances.
    (c) Decision. Within 60 days of receiving the awardee's written 
response to the notice of intent to disallow the cost, the PO shall 
issue a management decision stating whether or not the cost has been 
disallowed, the reasons for the decision, and the method of appeal that 
has been provided under this section. If the awardee does not respond 
to the written notice under paragraph (a) of this section within the 
time frame specified in paragraph (b) of this section, the PO shall 
issue a management decision on the basis of the information available 
to it. The management decision shall constitute the final action with 
respect to whether the cost is allowed or disallowed. In the case of a 
questioned cost identified in the context of an audit subject to 7 CFR 
part 3052, the management decision will constitute the management 
decision under 7 CFR 3052.405(a).
    (d) Demand for payment. If the management decision under paragraph 
(c) of this section constitutes a finding that the cost is disallowed 
and, therefore, that a debt is owed to the Government, the PO shall 
provide the required demand and notice pursuant to 7 CFR 3.11.
    (e) Review process. Within 60 days of receiving the demand and 
notice referred to in paragraph (d) of this section, the awardee may 
submit a written request to the OAO Director for a review of the final 
management decision that the debt exists and the amount of the debt. 
Within 60 days of receiving the written request for a review, the OAO 
Director will issue a final decision regarding the debt. A review by 
the OAO Director or designee constitutes an administrative review for 
debts under 7 CFR part 3, subpart F.


Sec.  2500.049  Prior approvals.

    (a) Subcontracts. No more than 50 percent of the award may be 
subcontracted to other parties without prior written approval of the 
ADO. Any subcontract awarded to a Federal agency under an award must 
have prior written approval of the ADO. To request approval, a 
justification for the proposed subcontractual arrangements, a 
performance statement, and a detailed budget for the subcontract must 
be submitted to the ADO.
    (b) No-cost extensions of time--(1) General. Awardees may initiate 
a one-time no-cost extension of the expiration date of the award of up 
to 12 months unless one or more of the following conditions apply: the 
terms and conditions of the award prohibit the extension; the extension 
requires additional Federal funds; and the extension involves any 
change in the approved objectives or scope of the project. For the 
first no-cost extension, the awardee must notify OAO in writing with 
the supporting reasons and revised expiration date at least 10 days 
before the expiration date specified in the award.
    (2) Additional requests for no-cost extensions of time before 
expiration date. When more than one no-cost extension of time or an 
extension of more than 12 months is required, the extension(s) must be 
approved in writing by the PO. The awardee must submit a written 
request, which must be received no later than 10 days prior to the 
expiration date of the award, to the PO. The request must contain, at a 
minimum, the following information: The length of the additional time 
required to complete the project objectives and a justification for the 
extension; a summary of the progress to date; an estimate of the funds 
expected to remain unobligated on the scheduled expiration date; a 
projected timetable to complete the portion(s) of the project for which 
the extension is being requested; and signature of the AOR and the PD.
    (3) Requests for no-cost extensions of time after expiration date. 
OAO may consider and approve requests for no-cost extensions of time up 
to 120 days following the expiration of the award. These will be 
approved only for extenuating circumstances, as determined by OAO. The 
awardee's AOR must submit the requirements identified under paragraph 
(b)(2) of this section as well as an ``extenuating circumstance'' 
justification and a description of the actions taken by the

[[Page 66176]]

awardee to minimize these requests in the future.
    (4) Other requirements. No-cost extensions of time may not be 
exercised merely for the purpose of using unobligated balances.


Sec.  2500.050  Suspension, termination, and withholding of support.

    (a) General. If an awardee has failed to materially comply with the 
terms and conditions of the award, OAO may take certain enforcement 
actions, including, but not limited to, suspending the award pending 
corrective action and terminating the award for cause.
    (b) Suspension. OAO generally will suspend (rather than immediately 
terminate) an award to allow the awardee an opportunity to take 
appropriate corrective action before OAO makes a termination decision. 
OAO may decide to terminate the award if the awardee does not take 
appropriate corrective action during the period of suspension. OAO may 
terminate, without first suspending, the award if the deficiency is so 
serious as to warrant immediate termination. Termination for cause may 
be appealed under the terms and conditions identified in the OAO award 
agreement.
    (c) Termination. An award also may be terminated, partially or 
wholly, by the awardee or by OAO with the consent of the awardee. If 
the awardee decides to terminate a portion of the award, OAO may 
determine that the remaining portion of the award will not accomplish 
the purposes for which the award was originally made. In any such case, 
OAO will advise the awardee of the possibility of termination of the 
entire award and allow the awardee to withdraw its termination request. 
If the awardee does not withdraw its request for partial termination, 
OAO may initiate procedures to terminate the entire award for cause.


Sec.  2500.051  Debt collection.

    The collection of debts owed to OAO by awardees, including those 
resulting from cost disallowances, recovery of funds, unobligated 
balances, or other circumstances, are subject to the Department's debt 
collection procedures as set forth in 7 CFR part 3, and, with respect 
to cost disallowances, Sec.  2500.048.


Sec.  2500.052  Award appeals procedures.

    (a) General. OAO permits awardees to appeal certain adverse post-
award administrative decisions made by OAO. Such adverse decisions 
include: Termination, in whole or in part, and determination that an 
award is void. An award may be terminated for failure of the awardee to 
carry out its approved project in accordance with the applicable law 
and the terms and conditions of award; or for failure of the awardee 
otherwise to comply with any law, regulation, assurance, term, or 
condition applicable to the award. Additionally, an award may be 
determined to be void if, for example, it was not authorized by statute 
or regulation or because it was fraudulently obtained. Appeals of 
determinations regarding the allowability of costs are subject to the 
procedures in Sec.  2500.048.
    (b) Appeal Procedures. The formal notification of an adverse 
determination will contain a statement of the awardee's appeal rights. 
To appeal an adverse determination, the awardee must submit a request 
for review to the OAO official specified in the notification, detailing 
the nature of the disagreement with the adverse determination and 
providing supporting documents in accordance with the procedures 
contained in the notification. The awardee's request to OAO for review 
must be received within 60 days after receipt of the written 
notification of the adverse determination; however, an extension may be 
granted if the awardee can show good cause why an extension is 
warranted. OAO will carefully consider the merits of all requests for 
appeals and further reviews. However, at the conclusion of the OAO 
appeal review process, the OAO decision rendered on the appeal is 
considered final. The awardee will be notified in writing by OAO of 
final appeal review determinations.


Sec.  2500.053  Expiring appropriations.

    (a) OAO awards supported with office appropriations. Most OAO 
awards are supported with annual appropriations. On September 30th of 
the 5th fiscal year after the period of availability for obligation 
ends, the funds for these appropriations accounts expire per 31 U.S.C. 
1552 and the account is closed, unless otherwise specified by law. 
Funds that have not been drawn through the approved electronic funds 
transfer system, by the awardee or disbursed through any other system 
or method by August 31st of that fiscal year are subject to be returned 
to the U.S. Department of the Treasury after that date. The August 31st 
requirement also applies to awards with a 90-day period concluding on a 
date after August 31st of that fifth year. Appropriations cannot be 
restored after expiration of the accounts. More specific instructions 
are provided in the OAO award terms and conditions.
    (b) OAO awards supported with funds from other Federal agencies 
(reimbursable funds). OAO may require that all draws and reimbursements 
for awards supported with reimbursable funds (from other Federal 
agencies) be completed prior to June 30th of the 5th fiscal year after 
the period of availability for obligation ends to allow for the proper 
billing, collection, and close-out of the associated interagency 
agreement before the appropriations expire. The June 30th requirement 
also applies to awards with a 90-day period concluding on a date after 
June 30th of that fifth year. Appropriations cannot be restored after 
expiration of the accounts. More specific instructions are provided in 
the terms and conditions of the OAO award agreement.


Sec.  2500.055  Audit.

    Awardees must comply with the audit requirements of 7 CFR part 
3052. The audit requirements apply to the years in which Federal 
financial assistance funds are received and years in which work is 
accomplished using these funds.


Sec.  2500.056  Civil rights.

    Awardees must comply with the civil rights requirements of 7 CFR 
part 15, subpart A--USDA implementation of Title VI of the Civil Rights 
Act of 1964, as amended. In accordance, no person in the United States 
shall, on the ground of race, color, or national origin, be excluded 
from participation in, be denied the benefits of, or be otherwise 
subjected to discrimination under any program or activity for which the 
recipient receives Federal financial assistance and will immediately 
take any measures necessary to effectuate this agreement.

Subpart F--Outreach and Assistance For Socially Disadvantaged 
Farmers and Ranchers Program


Sec.  2500.101  Applicability of regulations.

    The regulations in this subpart apply to the Outreach and 
Assistance for Socially Disadvantaged Farmers and Ranchers (OASDFR) 
Program authorized under section 2501 of the Food, Agriculture, 
Conservation and Trade Act of 1990 (7 U.S.C. 2279), as amended. Unless 
otherwise specified in this subpart, the requirements of 7 CFR part 
2500 subparts A through E will apply in addition to the requirements 
discussed in this subpart.


Sec.  2500.102  Purpose.

    (a) The purpose of the OASDFR Program is to make competitive awards 
to provide outreach and technical assistance to encourage and assist

[[Page 66177]]

socially disadvantaged farmers and ranchers in:
    (1) Owning and operating farms, ranches and non-industrial forest 
lands; and
    (2) In participating equitably in the full range of agricultural 
programs offered by the Department.
    (b) The OASDFR Program awards shall be used exclusively to:
    (1) Enhance coordination of the outreach, technical assistance, and 
education efforts authorized under agriculture programs;
    (2) Assist in reaching current and prospective socially 
disadvantaged farmers, ranchers or forest landowners in a 
linguistically appropriate manner; and
    (3) Improve the participation of those farmers and ranchers in 
agricultural programs.


Sec.  2500.103  Definitions.

    The definitions provided in subpart A apply to this subpart. In 
addition, the definitions that apply specifically to the OASDFR Program 
under this subpart include:
    Agriculture programs means those programs administered within the 
Department, by agencies including but not limited to: Forest Service 
(FS), Natural Resources Conservation Service (NRCS), Farm Service 
Agency (FSA), Risk Management Agency (RMA), Rural Development (RD), 
Rural Business Cooperative Service (RBCS), National Institute of Food 
and Agriculture (NIFA), and Agricultural Marketing Service (AMS), and 
other such programs as determined by the Department on a case-by-case 
basis either at the OAO Director's initiative or in response to a 
written request with supporting explanation for inclusion of a program. 
(For further details on specific programs included under this subpart 
see 7 U.S.C. 2279(e)(3) or the RFP).
    Alaska Native means a citizen of the United States who is a person 
of one-fourth or more Alaska Indian, Eskimo, or Aleut blood, or 
combination thereof. (For further specification, see 43 U.S.C 1602(b) 
or the RFP).
    Alaska Native cooperative colleges means an eligible post-secondary 
educational institution that has an enrollment of undergraduate full-
time equivalent students that is at least 20 percent Alaska Native 
students at the time of submission of a proposal.
    Assistance means providing educational and technical assistance to 
socially disadvantaged farmers, ranchers, and forest landowners in (1) 
owning and operating farms, ranches, and non-industrial forest lands; 
and (2) in participating equitably in the full range of agricultural 
programs offered by the Department through workshops, site visits and 
other means of contact in a linguistically appropriate manner.
    Farmer, rancher, or forest landowner means the person who primarily 
cultivates, operates, or manages a farm, ranch, or forest for profit, 
either as owner or tenant. A farm includes livestock, dairy, poultry, 
fish, fruit, and truck farms. It also includes plantations, ranches, 
ranges, and orchards.
    Hispanic-serving institution means an eligible institution of 
higher education that has an enrollment of undergraduate full-time 
equivalent students that is at least 25 percent Hispanic students at 
the end of the award year immediately preceding the date of submission 
of a proposal (see 20 U.S.C. 1101a(5)).
    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 (85 Stat. 688) (43 U.S.C. 
1601 et seq.), which is recognized as eligible for the special programs 
and services provided by the United States to Indians because of their 
status as Indians. (For further specification, see 25 U.S.C. 450b).
    Indian tribal community college means a post-secondary education 
institution which is formally controlled, or has been officially 
sanctioned, or chartered, by the governing body of an Indian tribe or 
tribes. (See 25 U.S.C. 1801(a)(4)).
    Institution of higher education means an educational institution in 
any State that is a public or other nonprofit institution that is 
legally authorized and accredited by a nationally recognized 
accrediting agency or association to provide a program of education 
beyond secondary education for which the institution awards a 
bachelor's degree. (For further specification, see 20 U.S.C. 1001(a)).
    Outreach means the use of formal and informal educational materials 
and activities in a linguistically appropriate manner that serve to 
encourage and assist socially disadvantaged farmers and ranchers in:
    (1) Owning and operating farms and ranches; and in
    (2) Participating equitably in the full range of agricultural 
programs offered by the Department.
    Socially disadvantaged farmer, rancher or forest landowner means a 
farmer, rancher, or forest landowner who is a member of a socially 
disadvantaged group. (See 7 U.S.C. 2279(e)(2)).
    Socially disadvantaged group means a group whose members have been 
subjected to racial or ethnic prejudice because of their identity as 
members of a group without regard to their individual qualities. (See 7 
U.S.C. 2279(e)(1)).
    State means any of the 50 States of the United States, the District 
of Columbia, the Commonwealth of Puerto Rico, Guam, the Virgin Islands 
of the United States, American Samoa, the Commonwealth of the Northern 
Mariana Islands, and federally recognized Indian tribes.
    Supplemental funding means funding to an existing awardee in 
addition to the amount of the original award contained in the grant or 
cooperative agreement. Such additional funding is intended to continue 
or expand work that is within the scope of the original agreement and 
statement of work.
    Tribal organization means the recognized governing body of any 
Indian tribe. A tribal organization is any legally established 
organization of Indians which is controlled, sanctioned, or chartered 
by such governing body or which is democratically elected by the adult 
members of the Indian community. In any case where an award is made to 
an organization to perform services benefiting more than one Indian 
tribe, the approval of each participating Indian tribe shall be a 
prerequisite to the making of such an award. (See 25 U.S.C. 1603(25).


Sec.  2500.104  Eligibility requirements.

    Proposals may be submitted by any of the following:
    (a) Any community-based organization, network, or coalition of 
community-based organizations that:
    (1) Has demonstrated experience in providing agricultural education 
or other agriculturally related services to socially disadvantaged 
farmers, ranchers, and forest landowners;
    (2) Has provided to the Secretary documentary evidence of work 
with, and on behalf of socially disadvantaged farmers, ranchers, or 
forest landowners during the three-year period preceding the submission 
of a proposal for assistance under this program; and
    (3) Does not engage in activities prohibited under Section 
501(c)(3) of the Internal Revenue Code of 1986.
    (b) An 1890 institution or 1994 institution (as defined in 7 U.S.C. 
7601), including West Virginia State University.
    (c) An Indian tribal community college or an Alaska Native 
cooperative college.
    (d) A Hispanic-serving institution (as defined in 7 U.S.C. 3103).

[[Page 66178]]

    (e) Any other institution of higher education (as defined in 20 
U.S.C. 1001) that has demonstrated experience in providing agriculture 
education or other agriculturally related services to socially 
disadvantaged farmers, ranchers, and forest landowners in a region.
    (f) An Indian tribe (as defined in 25 U.S.C. 450b) or a national 
tribal organization that has demonstrated experience in providing 
agriculture education or other agriculturally-related services to 
socially disadvantaged farmers, ranchers, and forest landowners in a 
region.
    (g) Other organizations or institutions that received funding under 
this program before January 1, 1996, but only with respect to projects 
that the Secretary considers are similar to projects previously carried 
out by the entity under this program.


Sec.  2500.105  Project types and priorities.

    For each RFP, OAO may develop and include the appropriate project 
types and focus areas based on the critical needs of the socially 
disadvantaged farmer and rancher community. For standard OASDFR 
projects, competitive grants or cooperative agreements will be awarded 
to support programs and services, as appropriate, to encourage and 
assist socially disadvantaged farmers and ranchers in the following 
focus areas:
    (a) Owning and operating farms and ranches;
    (b) Participating equitably in the full range of agricultural 
programs offered by the Department; and
    (c) Other areas as specified by the Secretary in the RFP.


Sec.  2500.106  Funding restrictions.

    Funds made available under this subpart shall not be used for the 
construction of a new building or facility or the acquisition, 
expansion, remodeling, or alteration of an existing facility (including 
site grading and improvement, and architect fees).


Sec.  2500.107  Matching.

    Matching funds are not required as a condition of receiving awards 
under this subpart.


Sec.  2500.108  Term of award.

    The award term will be defined in the OAO award agreement, and can 
be later amended upon approval of OAO.


Sec.  2500.109  Program requirements.

    Grants a