Revised Interim Implementation of Governmentwide Guidance for Grants and Cooperative Agreements, 78356-78360 [2016-25702]
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Federal Register / Vol. 81, No. 215 / Monday, November 7, 2016 / Proposed Rules
DEPARTMENT OF DEFENSE
received, including any personal
identifiers or contact information).
Office of the Secretary
FOR FURTHER INFORMATION CONTACT:
2 CFR Parts 1103, 1104, and 1125
Wade Wargo, Basic Research Office,
telephone 571–372–2941.
SUPPLEMENTARY INFORMATION:
[DOD–2016–OS–0048]
I. Executive Summary
RIN 0790–AJ45
A. Purpose of the Regulatory Action
Revised Interim Implementation of
Governmentwide Guidance for Grants
and Cooperative Agreements
Office of the Secretary,
Department of Defense (DoD).
ACTION: Proposed rule.
AGENCY:
This notice of proposed
rulemaking (NPRM) is the first of a
sequence of six NPRM documents in
this issue of the Federal Register that
collectively establish for DoD grants and
cooperative agreements an updated
interim implementation of
Governmentwide guidance on
administrative requirements, cost
principles, and audit requirements for
Federal awards. This NPRM removes a
part of the DoD Grant and Agreement
Regulations (DoDGARs) and replaces it
with a new DoDGARs part containing a
revised interim implementation of the
guidance and establishes seven
subchapters within DoD’s chapter of the
Grants and Agreements title of the Code
of Federal Regulations. The purpose of
this NPRM is to provide an organizing
framework for the DoDGARs to make it
easier for users of the regulations to
locate the content that they need.
DATES: To ensure that they can be
considered in developing the final rule,
comments must be received at either the
Web site or mailing address indicated
below by February 6, 2017.
ADDRESSES: You may submit comments
identified by docket number, or by
Regulatory Information Number (RIN)
and title, by either of the following
methods:
The Web site: https://
www.regulations.gov. Follow the
instructions at that site for submitting
comments.
Mail: Department of Defense, Deputy
Chief Management Officer, Directorate
for Oversight and Compliance, 4800
Mark Center Drive, ATTN: Box 24,
Alexandria, VA 22350–1700.
Instructions: All submissions must
include the agency name and docket
number or RIN for this Federal Register
document. The general policy for
comments and other submissions from
the public is to make the submissions
available for public viewing on the
Internet at https://www.regulations.gov
without change (i.e., as they are
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SUMMARY:
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1. The Need for the Regulatory Action
and How the Action Meets That Need
The Department of Defense Grant and
Agreement Regulations (DoDGARs)
need to be updated. Much of the
updating is required to implement
Office of Management and Budget
guidance to Federal agencies on
administrative requirements, cost
principles, and audit requirements
applicable to Federal grants, cooperative
agreements, and other assistance
instruments (2 CFR part 200). DoD
established an interim implementation
of that guidance at 2 CFR part 1103 in
December 2014, pending needed
updates to the DoDGARs.
The current regulatory action, which
is in this NPRM and five additional
NPRMs immediately following it in this
issue of the Federal Register,
implements the OMB guidance as it
applies to general terms and conditions
of DoD grants and cooperative
agreements. It thereby takes a major step
toward the needed updating of the
DoDGARs.
2. Legal Authorities for the Regulatory
Action
There are two statutory authorities for
this NPRM:
• 10 U.S.C. 113, which establishes the
Secretary of Defense as the head of the
Department of Defense; and
• 5 U.S.C. 301, which authorizes the
head of an Executive department to
prescribe regulations for the governance
of that department and the performance
of its business.
B. Summary of the Major Provisions of
the Regulatory Action
The six NPRMs propose to establish
eleven new DoDGARs parts and make
conforming changes to existing
DoDGARs parts. This NPRM, the first of
the six, proposes a new part 2 CFR part
1104 to serve as the central hub to direct
DoD Components on the portions of the
DoDGARs that apply to DoD grants and
cooperative agreements for various preaward, time-of-award, and post-award
purposes, pending completion of the
remaining updates to the DoDGARs that
are needed to fully implement the OMB
guidance. It also proposes to remove the
interim implementation of the guidance
published in December 2014 at 2 CFR
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part 1103, as that implementation is
superseded by the proposed 2 CFR part
1104. As described more fully in
Section II.C of this SUPPLEMENTARY
INFORMATION section, the other five
NPRMs following this one propose:
• A new 2 CFR part 1120 to establish
a standard format for organizing the
content of DoD Components’ grant and
cooperative agreement awards;
• New 2 CFR parts 1126, 1128, 1130,
1132, 1134, 1136, and 1138 to
standardize the organization and, to the
extent practicable, the wording of the
administrative requirements portion of
the general terms and conditions of
awards to types of recipients covered by
the OMB guidance in 2 CFR part 200;
• A new 2 CFR part 1122 to
standardize the organization and, to the
extent practicable, the wording of the
national policy requirements portion of
the general terms and conditions of
awards to all types of recipients;
• A new 2 CFR part 1108 with
definitions of terms used in the other
new DoDGARs parts proposed in this
regulatory action; and
• Conforming changes to portions of
the DoDGARs in title 32 of the CFR,
including the removal of the DoD
implementations of OMB Circulars A–
110 and A–102 in 32 CFR parts 32 and
33, respectively, as both of those OMB
circulars were superseded by the new
OMB guidance in 2 CFR part 200.
C. Costs and Benefits
By increasing uniformity in the form
and content of awards across DoD, the
regulatory action in the six NPRMs
benefit both recipient entities who
receive awards from multiple DoD
Component awarding offices and
auditors of DoD awards. The standard
format should enable them to more
easily and quickly find requirements in
different offices’ awards, as any
particular requirement should appear in
a standard location. Standard wording
and use of plain language should reduce
the time that otherwise would be spent
reading and interpreting the offices’
differently worded terms and conditions
for the same requirements. Based on
comments DoD has received from
recipients since it established the
DoDGARs in the 1990s, we expect that
the standard format, standard wording
for general terms and conditions, and
use of plain language would lessen
administrative burdens for recipients
and improve both transparency and ease
of compliance.
These changes also benefit offices
within DoD that are responsible for
post-award administration of grants and
cooperative agreements made by DoD
Components’ awarding offices. Having
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greater uniformity in the location and
wording of terms and conditions, and
having those terms and conditions
written in plain language, will enable
them to more quickly find and more
easily understand requirements within
different offices’ awards that are
relevant to their compliance monitoring
functions.
The uniformity across DoD that is
promoted by this regulatory action also
should help to lessen administrative
burdens and costs for recipients, thereby
providing added benefits by increasing
the productivity of the defense programs
supported by the awards. While it is
difficult to quantify the amount by
which burdens and associated costs will
be reduced, it is pertinent to note that
benefits of establishing, for the first
time, a uniform implementation of OMB
guidance, national policy requirements,
and DoD policy through general terms
and conditions extend to more than
15,000 obligating actions each year that:
• Are taken by 100 awarding offices
located across the United States and
abroad that are under the Departments
of the Army, Navy, and Air Force and
11 other DoD Components.
• Provide support to various types of
recipients, including institutions of
higher education, nonprofit
organizations, States, local governments,
and for-profit entities.
• Provide $4–6 billion to carry out
diverse programs, including defense
research, support to States for the
National Guard, and economic
assistance to communities impacted by
defense downsizing or costs associated
with education of military dependents.
The following portion of this
SUPPLEMENTARY INFORMATION section
provides additional background
information and a more complete
overview of the six NPRMs.
II. Additional Background and
Overview of the Six NPRMs
This NPRM removes a part of the DoD
Grant and Agreement Regulations
(DoDGARs) that DoD adopted on
December 19, 2014, as its interim
implementation of the guidance,
pending completion of more extensive
updates to the DoDGARs needed to
implement the guidance on a longerterm basis. It replaces that part with a
new DoDGARs part containing a revised
interim implementation of the guidance.
The revised implementation in the
new part incorporates ten other
proposed new DoDGARs parts. Those
ten other new parts, proposed in NPRM
documents following this one, do
several things. First, they provide
standard wording of general terms and
conditions governing administrative
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requirements for DoD grant and
cooperative agreement awards to
educational, nonprofit, and
governmental entities subject to the
Governmentwide guidance. Second,
they provide standard wording for
general terms and conditions addressing
national policy requirements for DoD
grant and cooperative agreement awards
to all types of entities. Third, they
establish a standard format for DoD
grant and cooperative agreement
awards. Finally, they establish a central
DoDGARs part with definitions of terms
used in those regulations.
In conjunction with establishing the
revised implementation of the
Governmentwide guidance, this NPRM
proposes to establish seven subchapters
within DoD’s chapter of the Grants and
Agreements title of the Code of Federal
Regulations. The purpose of the
proposed subchapters is to provide an
organizing framework for the DoDGARs
to make it easier for users of the
regulations to locate the content that
they need.
A. Background on the DoDGARs
The DoDGARs are the rules on which
DoD Component awarding offices rely
as the primary source of requirements
governing their award and
administration of grants and cooperative
agreements. While the regulations are
intended to primarily address DoD
Components, direction to DoD
Components in the DoDGARs impacts
requirements for DoD award recipients
and is used by auditors and others
outside the DoD when carrying out their
responsibilities related to DoD awards.
When DoD established the DoDGARs
in the 1990s, it did so in part as an
integrated and comprehensive
regulatory implementation of pertinent
Governmentwide guidance. The
pertinent guidance that the DoDGARs
implemented at that time included the
administrative requirements in OMB
Circulars A–110 and A–102 and, as they
applied to grants and cooperative
agreements, the cost principles in OMB
Circulars A–21, A–87, and A–122, and
the single audit requirements in OMB
Circular A–133.
To fully meet its needs, DoD
established some portions of the
DoDGARs to address awards that were
outside the scope of the
Governmentwide guidance. For
example, it established a DoDGARs part
to address grant and cooperative
agreement awards to for-profit entities
and another part to address Technology
Investment Agreements, which include
assistance awards other than grants and
cooperative agreements. For optimal
effectiveness, those additional portions
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of the DoDGARs were interconnected
with portions that implemented
Governmentwide guidance in OMB
circulars.
B. Background on the DoDGARs
Implementation of the New
Governmentwide Guidance
On December 26, 2013, the Office of
Management and Budget (OMB) issued
updated Governmentwide guidance on
grants and cooperative agreements in 2
CFR part 200, ‘‘Uniform Administrative
Requirements, Cost Principles, and
Audit Requirements for Federal
Awards.’’ The new guidance merged
content previously contained in OMB
Circulars A–110, A–102, A–21, A–87,
A–122, and A–133 that DoD had
implemented in the DoDGARs. In
superseding those circulars, the new
guidance altered the organization and
content of those circulars in ways that
necessitated significant updating of the
DoDGARs.
As the guidance called for Federal
agencies’ regulatory implementations to
be in effect within 12 months—i.e., by
December 26, 2014—DoD adopted a rule
on December 19, 2014, to implement the
new guidance on an interim basis,
pending the more comprehensive
update to the DoDGARs that was needed
but would take longer to put in effect.
DoD is proposing the rules contained
in the sequence of NPRMs in this issue
of the Federal Register as the first major
portion of the needed updates to the
DoDGARs. That updating enables
recipients, DoD Components, and others
who use the DoDGARs to begin to
benefit from these updates without
delay, while DoD finishes preparing the
additional rules to be proposed for
public comment, as needed to complete
its implementation of the guidance and
make other updates to the DoDGARs.
This first set of updates to the
DoDGARs focuses on the establishment
of:
• A standard award format for DoD
grants and cooperative agreement
awards; and
• Standard wording for general terms
and conditions of awards, including: (1)
Administrative requirements for awards
to types of recipients subject to 2 CFR
part 200; and (2) national policy
requirements for awards to all types of
entities. The proposed terms and
conditions are written in plain language.
The associated regulatory text with
proposed prescriptions for DoD
Components’ use of the standard
wording provides limited flexibility to
vary from the standard wording when
appropriate.
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C. Overview of the Six NPRMs in This
Issue of the Federal Register
1. The Proposed 2 CFR Part 1104 as the
Successor to 2 CFR Part 1103
The DoD is proposing to remove 2
CFR part 1103, the rule it adopted in
December 2014 as its initial interim
implementation of the Governmentwide
guidance in 2 CFR part 200, and replace
it with a new 2 CFR part 1104. The
proposed part 1104 serves as the central
hub to direct DoD Components’ use of
the other ten new parts that the
documents following this one in this
issue of the Federal Register propose for
adoption in chapter XI of 2 CFR, as well
as parts of the DoDGARs that will
remain for the time being in subchapter
C, chapter I of title 32 of the CFR. This
document also proposes to subdivide
chapter XI of title 2 of the CFR into
seven subchapters corresponding to
subject matter areas into which the
proposed new DoDGARs parts will be
organized.
2. Standard Award Format
The document immediately following
this one in this issue of the Federal
Register proposes a new 2 CFR part
1120 to establish a standard format for
DoD Components’ grant and cooperative
agreement awards, as discussed in
Section I.C of this SUPPLEMENTARY
INFORMATION section.
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3. General Terms and Conditions
Addressing Administrative
Requirements
The third document in this sequence
of NPRMs in this issue of the Federal
Register proposes seven new parts of
the DoDGARs that collectively establish
a standard organization of articles of
general terms and conditions addressing
administrative requirements for awards
to educational, nonprofit, and
governmental entities subject to the
guidance in 2 CFR part 200, as well as
standard wording for the content of
those articles. Administrative
requirements are those in areas such as
recipient program and financial
management; property administration;
recipient procurement procedures; and
reporting. They include implementation
of cost principles through terms and
conditions addressing allowable costs,
as well as audit requirements. The
seventh of the proposed new parts
addresses requirements for recipients
concerning subawards, including the
administrative and national policy
requirements that flow down to
subrecipients at lower tiers below DoD
awards.
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4. General Terms and Conditions
Addressing National Policy
Requirements
The fourth in the sequence of six
NPRM documents proposes a new 2
CFR part 1122 on national policy
requirements. National policy
requirements are those in areas such as
nondiscrimination, the environment,
and labor standards that originate in
Federal statutes, Executive orders, or
regulations. The proposed new part
specifies a standard organization of
general terms and conditions addressing
national policy requirements into four
articles. It also provides standard
wording of terms and conditions for
national policy requirements that are
commonly applicable to DoD
Components’ grants and cooperative
agreements. This standard format and
wording are for DoD Components’
awards to all types of recipient entities,
including for-profit and other entities
not subject to the Governmentwide
guidance in 2 CFR part 200 to the extent
that the national policy requirements
apply to them.
5. Definitions
The fifth NPRM in this sequence
proposes a new 2 CFR part 1108 with
definitions of terms to be used
throughout all portions of the DoDGARs
in chapter XI of title 2 of the CFR other
than the portion containing regulations
implementing specific national policy
requirements that provide their own
definitions of terms. Examples of the
latter regulations are DoD
implementations of nonprocurement
suspension and debarment, lobbying,
and drug-free workplace requirements.
6. Conforming Amendments to Parts of
the DoDGARs in Title 32 of the CFR
The final NPRM in this sequence
removes two existing parts of the
DoDGARs in subchapter C, chapter I of
title 32 of the CFR. The two parts
removed are 32 CFR part 32, which was
the DoD implementation of the 1993
issuance of OMB Circular A–110, and
32 CFR part 33, which was DoD’s
adoption of the common rule
implementing OMB Circular A–102.
The parts are proposed for removal
because OMB’s issuance of the new
Governmentwide guidance in 2 CFR
part 200 superseded both of those
circulars. That final NPRM in this issue
of the Federal Register also proposes
amendments to other parts of the
DoDGARs that will remain for now in
title 32 of the CFR, in order to: (1)
Conform them to the proposed new
DoDGARs parts in Title 2 of the CFR
that are described in sections II.C.1
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through 5 of this SUPPLEMENTARY
section; and (2) update
other outdated references and make
other minor changes that are needed.
INFORMATION
III. Future Steps
DoD will complete the remaining
needed updates of the DoDGARs in a
subsequent set of proposals for public
comment. Those proposals will focus on
portions of the DoDGARs that specify
pre-award and time-of-award
requirements for DoD Component
awarding offices and post-award
requirements for DoD administering
offices. All portions of the DoDGARs
remaining in chapter I, subchapter C of
title 32 of the CFR will be relocated at
that time to chapter XI of title 2 of the
CFR, with any updating that may be
needed.
IV. Regulatory Analysis
Executive Order 12866, ‘‘Regulatory
Planning and Review,’’ and Executive
Order 13563, ‘‘Improving Regulation
and Regulatory Review’’
Executive Order 12866, as
supplemented by Executive Order
13563, directs each Federal agency to:
Propose regulations only after
determining that benefits justify costs;
tailor regulations to minimize burdens
on society, consistent with achieving
regulatory objectives; maximize net
benefits when selecting among
regulatory approaches; specify
performance objectives, to the extent
feasible, rather than the behavior or
manner of compliance; and seek the
views of those likely to be affected
before issuing a notice of proposed
rulemaking, where feasible and
appropriate. The Department of Defense
has determined that a regulatory
implementation of 2 CFR part 200 that
includes standard wording of general
terms and conditions for DoD
Components’ grant and cooperative
agreement awards will maximize longterm benefits in relation to costs and
burdens for recipients of those awards.
In providing—for the first time—
uniformity across research and other
awards, the approach will benefit
institutions of higher education and
other types of recipients that receive
awards from diverse defense programs
and numerous DoD Component
awarding offices. The Department
informally consulted representatives of
the most affected recipient community
during development of this regulatory
proposal. This rule has been designated
a ‘‘significant regulatory action’’ under
section 3(f) of Executive Order 12866,
although not an economically
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significant one. Accordingly, the rule
has been reviewed by OMB.
PART 1103—[REMOVED]
Unfunded Mandates Reform Act of 1995
Section 202 of the Unfunded
Mandates Reform Act of 1995
(Unfunded Mandates Act) (2 U.S.C.
1532) requires that a Federal agency
prepare a budgetary impact statement
before issuing a rule that includes any
Federal mandate that may result in the
expenditure in any one year by State,
local, and tribal governments, in the
aggregate, or by the private sector, of
$100 million or more in 1995 dollars,
updated annually for inflation. In 2015,
that inflation-adjusted amount in
current dollars is approximately $146
million. The Department of Defense has
determined that this proposed
regulatory action will not result in
expenditures by State, local, and tribal
governments, or by the private sector, of
that amount or more in any one year.
Regulatory Flexibility Act
The Regulatory Flexibility Act
requires an agency that is proposing a
rule to provide a regulatory flexibility
analysis or to certify that the rule will
not have a significant economic impact
on a substantial number of small
entities. The Department of Defense
certifies that this proposed regulatory
action will not have a significant
economic impact on substantial number
of small entities beyond any impact due
to provisions of it that implement OMB
guidance at 2 CFR part 200.
Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C.
Chapter 35; 5 CFR part 1320, appendix
A.1) (PRA), the Department of Defense
has determined that there are no new
collections of information contained in
this proposed regulatory action.
Executive Order 13132, ‘‘Federalism’’
Executive Order 13132 establishes
certain requirements that an agency
must meet when it proposes a regulation
that has Federalism implications. This
proposed regulatory action does not
have any Federalism implications.
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List of Subjects in 2 CFR Parts 1103,
1104, and 1125
Business and industry, Colleges and
universities, Cooperative agreements,
Grants administration, Hospitals,
Indians, Nonprofit organizations, Small
business, State and local governments.
Accordingly, under the authority of 5
U.S.C. 301 and 10 U.S.C. 113, 2 CFR
chapter XI is proposed to be amended
as follows:
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1. Part 1103 is removed.
2. Subchapter A to chapter XI,
consisting of parts 1100 through 1109, is
added to read as follows:
■
■
Subchapter A—General Matters and
Definitions
PARTS 1100–1103—[RESERVED]
PART 1104—REVISED INTERIM
IMPLEMENTATION OF
GOVERNMENTWIDE GUIDANCE FOR
GRANTS AND COOPERATIVE
AGREEMENTS
Sec.
1104.1 Purpose of this part.
1104.100 Format of DoD Components’ grant
and cooperative agreement awards.
1104.105 Regulations governing DoD
Components’ general terms and
conditions.
1104.110 Regulations governing DoD
Components’ award-specific terms and
conditions.
1104.115 Regulations governing DoD
Components’ internal procedures.
1104.120 Definitions.
Authority: 5 U.S.C. 301 and 10 U.S.C. 113.
§ 1104.1
Purpose of this part.
This part provides an update to the
DoD interim implementation of OMB
guidance in 2 CFR part 200. It
supersedes the initial interim
implementation of that guidance that
DoD adopted in 2 CFR part 1103 on
December 19, 2014.
§ 1104.100 Format of DoD Components’
grant and cooperative agreement awards.
DoD Components must conform the
format of new grant and cooperative
agreement awards to the standard
format specified by part 1120 of the DoD
Grant and Agreement Regulations (2
CFR part 1120). The standard format
provides locations within the award for:
(a) General terms and conditions,
including the administrative and
national policy requirements discussed
in § 1104.105(a) and (b), respectively.
(b) Any award-specific terms and
conditions discussed in § 1104.110.
§ 1104.105 Regulations governing DoD
Components’ general terms and conditions.
(a) Administrative requirements. On
an interim basis pending completion of
the update of the DoD Grant and
Agreement Regulations to implement
Office of Management and Budget
(OMB) guidance published in 2 CFR
part 200, the following regulatory
provisions govern the administrative
requirements to be included in general
terms and conditions of DoD
Components’ new awards:
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(1) The provisions of parts 1126
through 1138 of the DoD Grant and
Agreement Regulations (2 CFR parts
1126 through 1138, which comprise
subchapter D of this chapter) govern the
administrative requirements to be
included in the general terms and
conditions of DoD Components’ new
grant and cooperative agreement awards
to institutions of higher education,
nonprofit organizations, States, local
governments, and Indian tribes.
(2) Part 34 of the DoD Grant and
Agreement Regulations (32 CFR part 34)
governs the administrative requirements
to be included in general terms and
conditions of DoD Components’ new
grant and cooperative agreement awards
to for-profit entities.
(b) National policy requirements. Part
1122 of the DoD Grant and Agreement
Regulations (2 CFR part 1122) governs
the national policy requirements to be
included in DoD Components’ new
grant and cooperative agreement awards
to all entities.
§ 1104.110 Regulations governing DoD
Components’ award-specific terms and
conditions.
On an interim basis pending
completion of the update of the DoD
Grant and Agreement Regulations to
implement Office of Management and
Budget (OMB) guidance published in 2
CFR part 200:
(a) The guidance in 2 CFR part 200
governs administrative requirements to
be included in any award-specific terms
and conditions used to supplement the
general terms and conditions of a new
grant or cooperative agreement award to
an institution of higher education,
nonprofit organization, State, local
government, or Indian tribe.
(b) Part 34 of the DoD Grant and
Agreement Regulations (32 CFR part 34)
governs the administrative requirements
to be included in any award-specific
terms and conditions of DoD
Components’ new grant and cooperative
agreement awards to for-profit entities.
§ 1104.115 Regulations governing DoD
Components’ internal procedures.
On an interim basis pending
completion of the update of the DoD
Grant and Agreement Regulations to
implement Office of Management and
Budget (OMB) guidance published in 2
CFR part 200, DoD Components’
internal pre-award, time-of-award, and
post-award procedures will continue to
comply with requirements in parts 21
and 22 of the DoD Grant and Agreement
Regulations (32 CFR parts 21 and 22).
§ 1104.120
Definitions.
(a) DoD Grant and Agreement
Regulations means the regulations in
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chapter I, subchapter C of title 32, Code
of Federal Regulations, and chapter XI
of title 2, Code of Federal Regulations.
(b) Other terms. See part 1108 of the
DoD Grant and Agreement Regulations
for definitions of other terms used in
this part.
PARTS 1105–1109—[RESERVED]
I. Executive Summary
DEPARTMENT OF DEFENSE
A. Purpose of the Regulatory Action
Office of the Secretary
2 CFR Part 1108
[DOD–2016–OS–0051]
RIN 0790–AJ46
3. Subchapter B to chapter XI,
consisting of parts 1110 through 1119, is
added and reserved to read as follows:
■
Subchapter B—[RESERVED]
Office of the Secretary,
Department of Defense (DoD).
AGENCY:
PARTS 1110–1119—[RESERVED]
4. Subchapter C to chapter XI,
consisting of parts 1120 through 1125, is
added to read as follows:
■
Subchapter C—Award Format and National
Policy Terms and Conditions for All Grants
and Cooperative Agreements
PART 1120–1124—[RESERVED]
PART 1125—[TRANSFERRED TO
SUBCHAPTER C]
5. Part 1125 is transferred to
subchapter C.
■ 6. Subchapter D to chapter XI,
consisting of parts 1126 through 1140, is
added to read as follows:
■
Subchapter D—Administrative
Requirements Terms and Conditions for
Cost-Type Grant and Cooperative
Agreement Awards to Nonprofit and
Governmental Entities
7. Subchapter E to chapter XI,
consisting of parts 1141 through 1155, is
added and reserved to read as follows:
■
Subchapter E—[RESERVED]
PART 1141–1155—[RESERVED]
8. Subchapter F to chapter XI,
consisting of parts 1156 through 1170, is
added and reserved to read as follows:
■
Subchapter F—[RESERVED]
PART 1156–1170—[RESERVED]
9. Subchapter G to chapter XI,
consisting of parts 1171 through 1199, is
added and reserved to read as follows:
sradovich on DSK3GMQ082PROD with PROPOSALS2
Subchapter G—[RESERVED]
PART 1171–1199—[RESERVED]
Dated: October 19, 2016.
Aaron Siegel,
Alternate OSD Federal Register Liaison
Officer, Department of Defense.
[FR Doc. 2016–25702 Filed 11–4–16; 8:45 am]
19:05 Nov 04, 2016
Proposed rule.
This Notice of Proposed
Rulemaking (NPRM) is the fifth of a
sequence of six NPRMs in this section
of this issue of the Federal Register that
propose updates to the DoD Grant and
Agreement Regulations (DoDGARs). In
this NPRM, DoD is proposing
definitions of terms that are common to
most portions of those regulations, as
well as a central location for the
definitions.
SUMMARY:
To ensure that they can be
considered in developing the final rule,
comments must be received at either the
Web site or mailing address indicated
below by February 6, 2017.
DATES:
You may submit comments
identified by docket number, or by
Regulatory Information Number (RIN)
and title, by either of the following
methods:
The Web site: https://
www.regulations.gov. Follow the
instructions at that site for submitting
comments.
Mail: Department of Defense, Deputy
Chief Management Officer, Directorate
for Oversight and Compliance, 4800
Mark Center Drive, ATTN: Box 24,
Alexandria, VA 22350–1700.
Instructions: All submissions must
include the agency name and docket
number or RIN for this Federal Register
document. The general policy for
comments and other submissions from
the public is to make the submissions
available for public viewing on the
Internet at https://www.regulations.gov
without change (i.e., as they are
received, including any personal
identifiers or contact information).
FOR FURTHER INFORMATION CONTACT:
Wade Wargo, Basic Research Office,
telephone 571–372–2941.
SUPPLEMENTARY INFORMATION:
BILLING CODE 5001–06–P
VerDate Sep<11>2014
ACTION:
ADDRESSES:
PART 1126–1140—[RESERVED]
■
Definitions for DoD Grant and
Agreement Regulations in
Subchapters A Through F
Jkt 241001
PO 00000
Frm 00006
Fmt 4701
Sfmt 4702
1. The Need for the Regulatory Action
and How the Action Meets That Need
The Department of Defense Grant and
Agreement Regulations (DoDGARs)
need to be updated, in part due to the
issuance of new Office of Management
and Budget guidance to Federal
agencies on administrative
requirements, cost principles, and audit
requirements that apply to Federal
grants, cooperative agreements, and
other assistance instruments (2 CFR part
200). The DoDGARs part proposed by
this NPRM is an important part of the
update in that it contains the definitions
of terms used throughout most portions
of the DoDGARs.
2. Legal Authorities for the Regulatory
Action
There are two statutory authorities for
this NPRM:
• 10 U.S.C. 113, which establishes the
Secretary of Defense as the head of the
Department of Defense; and
• 5 U.S.C. 301, which authorizes the
head of an Executive department to
prescribe regulations for the governance
of that department and the performance
of its business.
B. Summary of the Major Provisions of
the Regulatory Action
This NPRM proposes a new part, 2
CFR part 1108, as the central location
for definitions of terms that are needed
in order to make the DoDGARs as clear
as possible for DoD awarding and
administering officials, recipients,
auditors, and others who may need to
use them. The following subsection B.1
of this SUPPLEMENTARY INFORMATION
section explains why the proposed part
1108 does not include definitions of
some terms. Subsections B.2 through
B.8 provide additional information
about selected definitions that are
included in the proposed part.
1. Terms Defined in Other Issuances
That the DoDGARs Adopt by Reference
The proposed part 1108 does not
reiterate the definition of a term that is
defined in a statute, regulation,
Governmentwide guidance document,
or other issuance that the DoDGARs
adopt by reference unless the DoDGARs
also directly use that term and its
definition is important to the
interpretation of the regulations.
Sections 1108.2 and 1108.3 of the
proposed part 1108 provide more
explanation and examples of issuances
the DoDGARs adopt by reference,
including national policy requirements,
the cost principles and single audit
E:\FR\FM\07NOP2.SGM
07NOP2
Agencies
[Federal Register Volume 81, Number 215 (Monday, November 7, 2016)]
[Proposed Rules]
[Pages 78356-78360]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-25702]
[[Page 78355]]
Vol. 81
Monday,
No. 215
November 7, 2016
Part IV
Department of Defense
-----------------------------------------------------------------------
2 CFR Parts 1103, 1104, et al. and 32 CFR Parts 21, 22, et al.
Revised Interim Implementation of Governmentwide Guidance for Grants
and Cooperative Agreements; Definitions for DoD Grant and Agreement
Regulations in Subchapters A through F; Format for DoD Grant and
Cooperative Agreement Awards; National Policy Requirements: General
Award Terms and Conditions; Administrative Requirements Terms and
Conditions for Cost-Type Awards to Nonprofit and Governmental Entities;
and DoD Grant and Agreement Regulations; Proposed Rules
Federal Register / Vol. 81 , No. 215 / Monday, November 7, 2016 /
Proposed Rules
[[Page 78356]]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Office of the Secretary
2 CFR Parts 1103, 1104, and 1125
[DOD-2016-OS-0048]
RIN 0790-AJ45
Revised Interim Implementation of Governmentwide Guidance for
Grants and Cooperative Agreements
AGENCY: Office of the Secretary, Department of Defense (DoD).
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This notice of proposed rulemaking (NPRM) is the first of a
sequence of six NPRM documents in this issue of the Federal Register
that collectively establish for DoD grants and cooperative agreements
an updated interim implementation of Governmentwide guidance on
administrative requirements, cost principles, and audit requirements
for Federal awards. This NPRM removes a part of the DoD Grant and
Agreement Regulations (DoDGARs) and replaces it with a new DoDGARs part
containing a revised interim implementation of the guidance and
establishes seven subchapters within DoD's chapter of the Grants and
Agreements title of the Code of Federal Regulations. The purpose of
this NPRM is to provide an organizing framework for the DoDGARs to make
it easier for users of the regulations to locate the content that they
need.
DATES: To ensure that they can be considered in developing the final
rule, comments must be received at either the Web site or mailing
address indicated below by February 6, 2017.
ADDRESSES: You may submit comments identified by docket number, or by
Regulatory Information Number (RIN) and title, by either of the
following methods:
The Web site: https://www.regulations.gov. Follow the instructions
at that site for submitting comments.
Mail: Department of Defense, Deputy Chief Management Officer,
Directorate for Oversight and Compliance, 4800 Mark Center Drive, ATTN:
Box 24, Alexandria, VA 22350-1700.
Instructions: All submissions must include the agency name and
docket number or RIN for this Federal Register document. The general
policy for comments and other submissions from the public is to make
the submissions available for public viewing on the Internet at https://www.regulations.gov without change (i.e., as they are received,
including any personal identifiers or contact information).
FOR FURTHER INFORMATION CONTACT: Wade Wargo, Basic Research Office,
telephone 571-372-2941.
SUPPLEMENTARY INFORMATION:
I. Executive Summary
A. Purpose of the Regulatory Action
1. The Need for the Regulatory Action and How the Action Meets That
Need
The Department of Defense Grant and Agreement Regulations (DoDGARs)
need to be updated. Much of the updating is required to implement
Office of Management and Budget guidance to Federal agencies on
administrative requirements, cost principles, and audit requirements
applicable to Federal grants, cooperative agreements, and other
assistance instruments (2 CFR part 200). DoD established an interim
implementation of that guidance at 2 CFR part 1103 in December 2014,
pending needed updates to the DoDGARs.
The current regulatory action, which is in this NPRM and five
additional NPRMs immediately following it in this issue of the Federal
Register, implements the OMB guidance as it applies to general terms
and conditions of DoD grants and cooperative agreements. It thereby
takes a major step toward the needed updating of the DoDGARs.
2. Legal Authorities for the Regulatory Action
There are two statutory authorities for this NPRM:
10 U.S.C. 113, which establishes the Secretary of Defense
as the head of the Department of Defense; and
5 U.S.C. 301, which authorizes the head of an Executive
department to prescribe regulations for the governance of that
department and the performance of its business.
B. Summary of the Major Provisions of the Regulatory Action
The six NPRMs propose to establish eleven new DoDGARs parts and
make conforming changes to existing DoDGARs parts. This NPRM, the first
of the six, proposes a new part 2 CFR part 1104 to serve as the central
hub to direct DoD Components on the portions of the DoDGARs that apply
to DoD grants and cooperative agreements for various pre-award, time-
of-award, and post-award purposes, pending completion of the remaining
updates to the DoDGARs that are needed to fully implement the OMB
guidance. It also proposes to remove the interim implementation of the
guidance published in December 2014 at 2 CFR part 1103, as that
implementation is superseded by the proposed 2 CFR part 1104. As
described more fully in Section II.C of this Supplementary Information
section, the other five NPRMs following this one propose:
A new 2 CFR part 1120 to establish a standard format for
organizing the content of DoD Components' grant and cooperative
agreement awards;
New 2 CFR parts 1126, 1128, 1130, 1132, 1134, 1136, and
1138 to standardize the organization and, to the extent practicable,
the wording of the administrative requirements portion of the general
terms and conditions of awards to types of recipients covered by the
OMB guidance in 2 CFR part 200;
A new 2 CFR part 1122 to standardize the organization and,
to the extent practicable, the wording of the national policy
requirements portion of the general terms and conditions of awards to
all types of recipients;
A new 2 CFR part 1108 with definitions of terms used in
the other new DoDGARs parts proposed in this regulatory action; and
Conforming changes to portions of the DoDGARs in title 32
of the CFR, including the removal of the DoD implementations of OMB
Circulars A-110 and A-102 in 32 CFR parts 32 and 33, respectively, as
both of those OMB circulars were superseded by the new OMB guidance in
2 CFR part 200.
C. Costs and Benefits
By increasing uniformity in the form and content of awards across
DoD, the regulatory action in the six NPRMs benefit both recipient
entities who receive awards from multiple DoD Component awarding
offices and auditors of DoD awards. The standard format should enable
them to more easily and quickly find requirements in different offices'
awards, as any particular requirement should appear in a standard
location. Standard wording and use of plain language should reduce the
time that otherwise would be spent reading and interpreting the
offices' differently worded terms and conditions for the same
requirements. Based on comments DoD has received from recipients since
it established the DoDGARs in the 1990s, we expect that the standard
format, standard wording for general terms and conditions, and use of
plain language would lessen administrative burdens for recipients and
improve both transparency and ease of compliance.
These changes also benefit offices within DoD that are responsible
for post-award administration of grants and cooperative agreements made
by DoD Components' awarding offices. Having
[[Page 78357]]
greater uniformity in the location and wording of terms and conditions,
and having those terms and conditions written in plain language, will
enable them to more quickly find and more easily understand
requirements within different offices' awards that are relevant to
their compliance monitoring functions.
The uniformity across DoD that is promoted by this regulatory
action also should help to lessen administrative burdens and costs for
recipients, thereby providing added benefits by increasing the
productivity of the defense programs supported by the awards. While it
is difficult to quantify the amount by which burdens and associated
costs will be reduced, it is pertinent to note that benefits of
establishing, for the first time, a uniform implementation of OMB
guidance, national policy requirements, and DoD policy through general
terms and conditions extend to more than 15,000 obligating actions each
year that:
Are taken by 100 awarding offices located across the
United States and abroad that are under the Departments of the Army,
Navy, and Air Force and 11 other DoD Components.
Provide support to various types of recipients, including
institutions of higher education, nonprofit organizations, States,
local governments, and for-profit entities.
Provide $4-6 billion to carry out diverse programs,
including defense research, support to States for the National Guard,
and economic assistance to communities impacted by defense downsizing
or costs associated with education of military dependents.
The following portion of this Supplementary Information section
provides additional background information and a more complete overview
of the six NPRMs.
II. Additional Background and Overview of the Six NPRMs
This NPRM removes a part of the DoD Grant and Agreement Regulations
(DoDGARs) that DoD adopted on December 19, 2014, as its interim
implementation of the guidance, pending completion of more extensive
updates to the DoDGARs needed to implement the guidance on a longer-
term basis. It replaces that part with a new DoDGARs part containing a
revised interim implementation of the guidance.
The revised implementation in the new part incorporates ten other
proposed new DoDGARs parts. Those ten other new parts, proposed in NPRM
documents following this one, do several things. First, they provide
standard wording of general terms and conditions governing
administrative requirements for DoD grant and cooperative agreement
awards to educational, nonprofit, and governmental entities subject to
the Governmentwide guidance. Second, they provide standard wording for
general terms and conditions addressing national policy requirements
for DoD grant and cooperative agreement awards to all types of
entities. Third, they establish a standard format for DoD grant and
cooperative agreement awards. Finally, they establish a central DoDGARs
part with definitions of terms used in those regulations.
In conjunction with establishing the revised implementation of the
Governmentwide guidance, this NPRM proposes to establish seven
subchapters within DoD's chapter of the Grants and Agreements title of
the Code of Federal Regulations. The purpose of the proposed
subchapters is to provide an organizing framework for the DoDGARs to
make it easier for users of the regulations to locate the content that
they need.
A. Background on the DoDGARs
The DoDGARs are the rules on which DoD Component awarding offices
rely as the primary source of requirements governing their award and
administration of grants and cooperative agreements. While the
regulations are intended to primarily address DoD Components, direction
to DoD Components in the DoDGARs impacts requirements for DoD award
recipients and is used by auditors and others outside the DoD when
carrying out their responsibilities related to DoD awards.
When DoD established the DoDGARs in the 1990s, it did so in part as
an integrated and comprehensive regulatory implementation of pertinent
Governmentwide guidance. The pertinent guidance that the DoDGARs
implemented at that time included the administrative requirements in
OMB Circulars A-110 and A-102 and, as they applied to grants and
cooperative agreements, the cost principles in OMB Circulars A-21, A-
87, and A-122, and the single audit requirements in OMB Circular A-133.
To fully meet its needs, DoD established some portions of the
DoDGARs to address awards that were outside the scope of the
Governmentwide guidance. For example, it established a DoDGARs part to
address grant and cooperative agreement awards to for-profit entities
and another part to address Technology Investment Agreements, which
include assistance awards other than grants and cooperative agreements.
For optimal effectiveness, those additional portions of the DoDGARs
were interconnected with portions that implemented Governmentwide
guidance in OMB circulars.
B. Background on the DoDGARs Implementation of the New Governmentwide
Guidance
On December 26, 2013, the Office of Management and Budget (OMB)
issued updated Governmentwide guidance on grants and cooperative
agreements in 2 CFR part 200, ``Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards.'' The new
guidance merged content previously contained in OMB Circulars A-110, A-
102, A-21, A-87, A-122, and A-133 that DoD had implemented in the
DoDGARs. In superseding those circulars, the new guidance altered the
organization and content of those circulars in ways that necessitated
significant updating of the DoDGARs.
As the guidance called for Federal agencies' regulatory
implementations to be in effect within 12 months--i.e., by December 26,
2014--DoD adopted a rule on December 19, 2014, to implement the new
guidance on an interim basis, pending the more comprehensive update to
the DoDGARs that was needed but would take longer to put in effect.
DoD is proposing the rules contained in the sequence of NPRMs in
this issue of the Federal Register as the first major portion of the
needed updates to the DoDGARs. That updating enables recipients, DoD
Components, and others who use the DoDGARs to begin to benefit from
these updates without delay, while DoD finishes preparing the
additional rules to be proposed for public comment, as needed to
complete its implementation of the guidance and make other updates to
the DoDGARs.
This first set of updates to the DoDGARs focuses on the
establishment of:
A standard award format for DoD grants and cooperative
agreement awards; and
Standard wording for general terms and conditions of
awards, including: (1) Administrative requirements for awards to types
of recipients subject to 2 CFR part 200; and (2) national policy
requirements for awards to all types of entities. The proposed terms
and conditions are written in plain language. The associated regulatory
text with proposed prescriptions for DoD Components' use of the
standard wording provides limited flexibility to vary from the standard
wording when appropriate.
[[Page 78358]]
C. Overview of the Six NPRMs in This Issue of the Federal Register
1. The Proposed 2 CFR Part 1104 as the Successor to 2 CFR Part 1103
The DoD is proposing to remove 2 CFR part 1103, the rule it adopted
in December 2014 as its initial interim implementation of the
Governmentwide guidance in 2 CFR part 200, and replace it with a new 2
CFR part 1104. The proposed part 1104 serves as the central hub to
direct DoD Components' use of the other ten new parts that the
documents following this one in this issue of the Federal Register
propose for adoption in chapter XI of 2 CFR, as well as parts of the
DoDGARs that will remain for the time being in subchapter C, chapter I
of title 32 of the CFR. This document also proposes to subdivide
chapter XI of title 2 of the CFR into seven subchapters corresponding
to subject matter areas into which the proposed new DoDGARs parts will
be organized.
2. Standard Award Format
The document immediately following this one in this issue of the
Federal Register proposes a new 2 CFR part 1120 to establish a standard
format for DoD Components' grant and cooperative agreement awards, as
discussed in Section I.C of this Supplementary Information section.
3. General Terms and Conditions Addressing Administrative Requirements
The third document in this sequence of NPRMs in this issue of the
Federal Register proposes seven new parts of the DoDGARs that
collectively establish a standard organization of articles of general
terms and conditions addressing administrative requirements for awards
to educational, nonprofit, and governmental entities subject to the
guidance in 2 CFR part 200, as well as standard wording for the content
of those articles. Administrative requirements are those in areas such
as recipient program and financial management; property administration;
recipient procurement procedures; and reporting. They include
implementation of cost principles through terms and conditions
addressing allowable costs, as well as audit requirements. The seventh
of the proposed new parts addresses requirements for recipients
concerning subawards, including the administrative and national policy
requirements that flow down to subrecipients at lower tiers below DoD
awards.
4. General Terms and Conditions Addressing National Policy Requirements
The fourth in the sequence of six NPRM documents proposes a new 2
CFR part 1122 on national policy requirements. National policy
requirements are those in areas such as nondiscrimination, the
environment, and labor standards that originate in Federal statutes,
Executive orders, or regulations. The proposed new part specifies a
standard organization of general terms and conditions addressing
national policy requirements into four articles. It also provides
standard wording of terms and conditions for national policy
requirements that are commonly applicable to DoD Components' grants and
cooperative agreements. This standard format and wording are for DoD
Components' awards to all types of recipient entities, including for-
profit and other entities not subject to the Governmentwide guidance in
2 CFR part 200 to the extent that the national policy requirements
apply to them.
5. Definitions
The fifth NPRM in this sequence proposes a new 2 CFR part 1108 with
definitions of terms to be used throughout all portions of the DoDGARs
in chapter XI of title 2 of the CFR other than the portion containing
regulations implementing specific national policy requirements that
provide their own definitions of terms. Examples of the latter
regulations are DoD implementations of nonprocurement suspension and
debarment, lobbying, and drug-free workplace requirements.
6. Conforming Amendments to Parts of the DoDGARs in Title 32 of the CFR
The final NPRM in this sequence removes two existing parts of the
DoDGARs in subchapter C, chapter I of title 32 of the CFR. The two
parts removed are 32 CFR part 32, which was the DoD implementation of
the 1993 issuance of OMB Circular A-110, and 32 CFR part 33, which was
DoD's adoption of the common rule implementing OMB Circular A-102. The
parts are proposed for removal because OMB's issuance of the new
Governmentwide guidance in 2 CFR part 200 superseded both of those
circulars. That final NPRM in this issue of the Federal Register also
proposes amendments to other parts of the DoDGARs that will remain for
now in title 32 of the CFR, in order to: (1) Conform them to the
proposed new DoDGARs parts in Title 2 of the CFR that are described in
sections II.C.1 through 5 of this Supplementary Information section;
and (2) update other outdated references and make other minor changes
that are needed.
III. Future Steps
DoD will complete the remaining needed updates of the DoDGARs in a
subsequent set of proposals for public comment. Those proposals will
focus on portions of the DoDGARs that specify pre-award and time-of-
award requirements for DoD Component awarding offices and post-award
requirements for DoD administering offices. All portions of the DoDGARs
remaining in chapter I, subchapter C of title 32 of the CFR will be
relocated at that time to chapter XI of title 2 of the CFR, with any
updating that may be needed.
IV. Regulatory Analysis
Executive Order 12866, ``Regulatory Planning and Review,'' and
Executive Order 13563, ``Improving Regulation and Regulatory Review''
Executive Order 12866, as supplemented by Executive Order 13563,
directs each Federal agency to: Propose regulations only after
determining that benefits justify costs; tailor regulations to minimize
burdens on society, consistent with achieving regulatory objectives;
maximize net benefits when selecting among regulatory approaches;
specify performance objectives, to the extent feasible, rather than the
behavior or manner of compliance; and seek the views of those likely to
be affected before issuing a notice of proposed rulemaking, where
feasible and appropriate. The Department of Defense has determined that
a regulatory implementation of 2 CFR part 200 that includes standard
wording of general terms and conditions for DoD Components' grant and
cooperative agreement awards will maximize long-term benefits in
relation to costs and burdens for recipients of those awards. In
providing--for the first time--uniformity across research and other
awards, the approach will benefit institutions of higher education and
other types of recipients that receive awards from diverse defense
programs and numerous DoD Component awarding offices. The Department
informally consulted representatives of the most affected recipient
community during development of this regulatory proposal. This rule has
been designated a ``significant regulatory action'' under section 3(f)
of Executive Order 12866, although not an economically
[[Page 78359]]
significant one. Accordingly, the rule has been reviewed by OMB.
Unfunded Mandates Reform Act of 1995
Section 202 of the Unfunded Mandates Reform Act of 1995 (Unfunded
Mandates Act) (2 U.S.C. 1532) requires that a Federal agency prepare a
budgetary impact statement before issuing a rule that includes any
Federal mandate that may result in the expenditure in any one year by
State, local, and tribal governments, in the aggregate, or by the
private sector, of $100 million or more in 1995 dollars, updated
annually for inflation. In 2015, that inflation-adjusted amount in
current dollars is approximately $146 million. The Department of
Defense has determined that this proposed regulatory action will not
result in expenditures by State, local, and tribal governments, or by
the private sector, of that amount or more in any one year.
Regulatory Flexibility Act
The Regulatory Flexibility Act requires an agency that is proposing
a rule to provide a regulatory flexibility analysis or to certify that
the rule will not have a significant economic impact on a substantial
number of small entities. The Department of Defense certifies that this
proposed regulatory action will not have a significant economic impact
on substantial number of small entities beyond any impact due to
provisions of it that implement OMB guidance at 2 CFR part 200.
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35; 5 CFR part 1320, appendix A.1) (PRA), the Department of
Defense has determined that there are no new collections of information
contained in this proposed regulatory action.
Executive Order 13132, ``Federalism''
Executive Order 13132 establishes certain requirements that an
agency must meet when it proposes a regulation that has Federalism
implications. This proposed regulatory action does not have any
Federalism implications.
List of Subjects in 2 CFR Parts 1103, 1104, and 1125
Business and industry, Colleges and universities, Cooperative
agreements, Grants administration, Hospitals, Indians, Nonprofit
organizations, Small business, State and local governments.
Accordingly, under the authority of 5 U.S.C. 301 and 10 U.S.C. 113,
2 CFR chapter XI is proposed to be amended as follows:
PART 1103--[REMOVED]
0
1. Part 1103 is removed.
0
2. Subchapter A to chapter XI, consisting of parts 1100 through 1109,
is added to read as follows:
Subchapter A--General Matters and Definitions
PARTS 1100-1103--[RESERVED]
PART 1104--REVISED INTERIM IMPLEMENTATION OF GOVERNMENTWIDE
GUIDANCE FOR GRANTS AND COOPERATIVE AGREEMENTS
Sec.
1104.1 Purpose of this part.
1104.100 Format of DoD Components' grant and cooperative agreement
awards.
1104.105 Regulations governing DoD Components' general terms and
conditions.
1104.110 Regulations governing DoD Components' award-specific terms
and conditions.
1104.115 Regulations governing DoD Components' internal procedures.
1104.120 Definitions.
Authority: 5 U.S.C. 301 and 10 U.S.C. 113.
Sec. 1104.1 Purpose of this part.
This part provides an update to the DoD interim implementation of
OMB guidance in 2 CFR part 200. It supersedes the initial interim
implementation of that guidance that DoD adopted in 2 CFR part 1103 on
December 19, 2014.
Sec. 1104.100 Format of DoD Components' grant and cooperative
agreement awards.
DoD Components must conform the format of new grant and cooperative
agreement awards to the standard format specified by part 1120 of the
DoD Grant and Agreement Regulations (2 CFR part 1120). The standard
format provides locations within the award for:
(a) General terms and conditions, including the administrative and
national policy requirements discussed in Sec. 1104.105(a) and (b),
respectively.
(b) Any award-specific terms and conditions discussed in Sec.
1104.110.
Sec. 1104.105 Regulations governing DoD Components' general terms and
conditions.
(a) Administrative requirements. On an interim basis pending
completion of the update of the DoD Grant and Agreement Regulations to
implement Office of Management and Budget (OMB) guidance published in 2
CFR part 200, the following regulatory provisions govern the
administrative requirements to be included in general terms and
conditions of DoD Components' new awards:
(1) The provisions of parts 1126 through 1138 of the DoD Grant and
Agreement Regulations (2 CFR parts 1126 through 1138, which comprise
subchapter D of this chapter) govern the administrative requirements to
be included in the general terms and conditions of DoD Components' new
grant and cooperative agreement awards to institutions of higher
education, nonprofit organizations, States, local governments, and
Indian tribes.
(2) Part 34 of the DoD Grant and Agreement Regulations (32 CFR part
34) governs the administrative requirements to be included in general
terms and conditions of DoD Components' new grant and cooperative
agreement awards to for-profit entities.
(b) National policy requirements. Part 1122 of the DoD Grant and
Agreement Regulations (2 CFR part 1122) governs the national policy
requirements to be included in DoD Components' new grant and
cooperative agreement awards to all entities.
Sec. 1104.110 Regulations governing DoD Components' award-specific
terms and conditions.
On an interim basis pending completion of the update of the DoD
Grant and Agreement Regulations to implement Office of Management and
Budget (OMB) guidance published in 2 CFR part 200:
(a) The guidance in 2 CFR part 200 governs administrative
requirements to be included in any award-specific terms and conditions
used to supplement the general terms and conditions of a new grant or
cooperative agreement award to an institution of higher education,
nonprofit organization, State, local government, or Indian tribe.
(b) Part 34 of the DoD Grant and Agreement Regulations (32 CFR part
34) governs the administrative requirements to be included in any
award-specific terms and conditions of DoD Components' new grant and
cooperative agreement awards to for-profit entities.
Sec. 1104.115 Regulations governing DoD Components' internal
procedures.
On an interim basis pending completion of the update of the DoD
Grant and Agreement Regulations to implement Office of Management and
Budget (OMB) guidance published in 2 CFR part 200, DoD Components'
internal pre-award, time-of-award, and post-award procedures will
continue to comply with requirements in parts 21 and 22 of the DoD
Grant and Agreement Regulations (32 CFR parts 21 and 22).
Sec. 1104.120 Definitions.
(a) DoD Grant and Agreement Regulations means the regulations in
[[Page 78360]]
chapter I, subchapter C of title 32, Code of Federal Regulations, and
chapter XI of title 2, Code of Federal Regulations.
(b) Other terms. See part 1108 of the DoD Grant and Agreement
Regulations for definitions of other terms used in this part.
PARTS 1105-1109--[RESERVED]
0
3. Subchapter B to chapter XI, consisting of parts 1110 through 1119,
is added and reserved to read as follows:
Subchapter B--[RESERVED]
PARTS 1110-1119--[RESERVED]
0
4. Subchapter C to chapter XI, consisting of parts 1120 through 1125,
is added to read as follows:
Subchapter C--Award Format and National Policy Terms and Conditions for
All Grants and Cooperative Agreements
PART 1120-1124--[RESERVED]
PART 1125--[TRANSFERRED TO SUBCHAPTER C]
0
5. Part 1125 is transferred to subchapter C.
0
6. Subchapter D to chapter XI, consisting of parts 1126 through 1140,
is added to read as follows:
Subchapter D--Administrative Requirements Terms and Conditions for
Cost-Type Grant and Cooperative Agreement Awards to Nonprofit and
Governmental Entities
PART 1126-1140--[RESERVED]
0
7. Subchapter E to chapter XI, consisting of parts 1141 through 1155,
is added and reserved to read as follows:
Subchapter E--[RESERVED]
PART 1141-1155--[RESERVED]
0
8. Subchapter F to chapter XI, consisting of parts 1156 through 1170,
is added and reserved to read as follows:
Subchapter F--[RESERVED]
PART 1156-1170--[RESERVED]
0
9. Subchapter G to chapter XI, consisting of parts 1171 through 1199,
is added and reserved to read as follows:
Subchapter G--[RESERVED]
PART 1171-1199--[RESERVED]
Dated: October 19, 2016.
Aaron Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2016-25702 Filed 11-4-16; 8:45 am]
BILLING CODE 5001-06-P