Federal Research Grants

[Deaner]

Has anyone dealt much with grant funded projects? In my office it seems no one knows much about how they are regulated. Non-appropriated grants seem to be not a problem, but with federal grants, such as for a research study by a priniciple investigator, are always appropriated funding.

Currently i started working on a requirement for a research study for this generic drug and the effects it has. The Prinicple investigator applied for a received a federal grant (115 page long application). the PI was approved her grant and then a funding document came to me. i checked with fiscal and the funding is appropriated, but the PI has a prechoosen contractor as it was layed out in her application for the grant.

anyone know how this scenario would play out? the appropriated funding meets the definition of the FAR. is there some sort of unsolicitated research prescription in part 6 i'm unaware of?

[Navy_Contracting_4]

Grants are assistance vehicles not acquisition instruments, and thus, the FAR does not apply to them.

Can you be more specific as to what your question is?

[Deaner]

My question is, if the federal governmnet awards a grant to a doctor to perform a research study, does the FAR apply to that grant funding.

[Navy_Contracting_4]

My question is, if the federal governmnet awards a grant to a doctor to perform a research study, does the FAR apply to that grant funding.

The answer to that question is clearly "No," for the reason I stated in my earlier post.

[Deaner]

Any advise you could give me to persuade my management?

My argument was specific contractors are stated in the grant.

The counter argument is the grant is appropriated funding.

I dont have a warrant so if i cant get management, or at least my reviewer to buy in on the idea, i wont be able to get anything signed or awarded.

[Don Mansfield]

Deaner,

See "What Transactions fall outside the FAR's coverage?" on page 5 of this report: http://www.fas.org/sgp/crs/misc/R42826.pdf.

[j_dude77]

Any advise you could give me to persuade my management?

My argument was specific contractors are stated in the grant.

The counter argument is the grant is appropriated funding.

I dont have a warrant so if i cant get management, or at least my reviewer to buy in on the idea, i wont be able to get anything signed or awarded.

The FAR does not apply to Federal assistance awards.

Did anyone there bother to check the OMB Circulars. OMB Circular A-110 states, "This Circular sets forth standards for obtaining consistency and uniformity among Federal agencies in the administration of grants to and agreements with institutions of higher education, hospitals, and other non-profit organizations".

Look at OMB Circular A-110. http://www.whitehouse.gov/omb/circulars_index-education

Depending on who the grant went to ( I assume an educational institute) then OMB Circular A-110 and A-21 would apply. If it is for a State or Local Government, then A-102 applies not A-110. At a previous agency I worked in an office that handled all grants and cooperative agreements for that agency.

Has anyone dealt much with grant funded projects? In my office it seems no one knows much about how they are regulated. Non-appropriated grants seem to be not a problem, but with federal grants, such as for a research study by a priniciple investigator, are always appropriated funding.

Currently i started working on a requirement for a research study for this generic drug and the effects it has. The Prinicple investigator applied for a received a federal grant (115 page long application). the PI was approved her grant and then a funding document came to me. i checked with fiscal and the funding is appropriated, but the PI has a prechoosen contractor as it was layed out in her application for the grant.

anyone know how this scenario would play out? the appropriated funding meets the definition of the FAR. is there some sort of unsolicitated research prescription in part 6 i'm unaware of?

This is not a problem due to the fact that the FAR does not apply. Research proposals are very detail oriented. They will list subcontractors who will perform specific work under the grant. This is not a problem due to the nature of research projects.

In short, I highly recommend that you review OMB Circular A-110. The other thing is go through the proposal budget. Make sure everything is allowable. The people that approve grants generally do not know anything about costs and are only concered about the research itself.

If you have any other specific questions, contact me.

[C Culham]

So as a follow on questions...

What if the doctor is employeed by a Federal agency and the grant is awarded to that agency, then what applies? As an alternative the Doctor is employeed by a Federal agency but the grant is specifically in the name of the doctor and not the agency?

[Deaner]

Thanks Dude, I was not aware of the circulars you pointed out, and you are correct, this grant is going to a Doctor working with an educational institute. I think A-110 pretty much describes everything i needed on how to handle a grant.

I've also suggested the idea that we have a small team that specilaizlies in grants and research projects as it appears you did at a previous agency. No one in my office seems to have any idea how to handle them.

Appreciate your help.

[j_dude77]

So as a follow on questions...

What if the doctor is employeed by a Federal agency and the grant is awarded to that agency, then what applies? As an alternative the Doctor is employeed by a Federal agency but the grant is specifically in the name of the doctor and not the agency?

What if the doctor is employeed by a Federal agency and the grant is awarded to that agency, then what applies?

That is determined by agency specific policy. There are only certian agencies that can do this, and only under very specific circumstances. This is found in the Funding Opportunity Annoucement (FOA).

As an alternative the Doctor is employeed by a Federal agency but the grant is specifically in the name of the doctor and not the agency?

This would be determined by agency specific policy. However, there are significant hurdles to overcome as an individual seeking a research grant from a Federal Agency. Not only are they competing against Non-Profits and Educational institutes, there are also IRS issues that have to be addressed before being able to receive one. That said, I have never seen a grant to an individual. I have seen a PI move from one institute to another and the grants transfer with them; in essence the grants are with individuals.

I could go into much more detail, but it would be overkill in a forum.

[Retreadfed]

Deaner, did you look at the defintion of "acquisition," "contract" and "contracting" in FAR 2.101?

[Navy_Contracting_4]

Deaner,

I don't know what agency you work for, but many agencies have their own regulations implementing and supplementing the OMB Circular. For example, in DoD, we have DoD 3210.6-R, "Department of Defense Grant and Agreement Regulations". You should definitely find out if your agency has any corresponding guidance.

[Deaner]

Retreadfed, I did look at the definition in FAR part 2 which is what my management is using to counter my idea of grants. Federal grants, or at least this one, are "Appropriated funding"

“Acquisition” means the acquiring by contract with appropriated funds of supplies or services............

its a grant, but ultimatly the grant will be used to establish a contract.

[Navy_Contracting_4]

............

its a grant, but ultimatly the grant will be used to establish a contract.

What do you mean by this statement? Do you mean that if the grantee's work yields promising results, then you may issue a contract for further research, or something like that?

[Deaner]

The grant is for a 3 year research project which includes several different requirements such as, the PI needs a lab to work at, patients to study, other personel to document the effects of this generic drug in patients, some specialized equipment, etc. obviously not one contract can perform every aspect of the requirement. There are several that can provide lab space, equipment, schedule patients, etc.

the idea is, do we just hand over funding to any contractor in any amount that say they can perform some work? i haven't had the time to read all aspects of the OMB circulars that were mentioned above, but it appears there is a part about competition.

[Retreadfed]

Deaner, in regard to your post 13, the fact that appropriated funds are being used is a red herring. Appropriated funds are used for all sorts of things that are not FAR contracts. From the definitions I mentioned, it is easy to see that the FAR only covers procurement contracts that are funded with appropriated funds. There are procurement contracts, such as those issued by the military exchanges, that are funded with non-appropriated funds. These contracts are not covered by the FAR.

There are also support contracts issued by agencies using appropriated funds. These are not covered by the FAR.

If you look at the various appropriations acts, you will generally not see a restriction on their use for only contracts. Instead, they can be used in any way to carry out the purposes for which they were appropriated, e.g., contract, grant, cooperative agreement, CRADA, OTA, etc.

For the differences between contracts, grants and cooperative agreements, look at 31 U.S.C. 6303-6305. Perhaps what you are calling a grant is in reality a procurement contract.

[Don Mansfield]

Acquisition is acquiring by "contract", which is defined at FAR 2.101 as follows:

“Contract” means a mutually binding legal relationship obligating the seller to furnish the supplies or services (including construction) and the buyer to pay for them. It includes all types of commitments that obligate the Government to an expenditure of appropriated funds and that, except as otherwise authorized, are in writing. In addition to bilateral instruments, contracts include (but are not limited to) awards and notices of awards; job orders or task letters issued under basic ordering agreements; letter contracts; orders, such as purchase orders, under which the contract becomes effective by written acceptance or performance; and bilateral contract modifications. Contracts do not include grants and cooperative agreements covered by 31 U.S.C.6301, et seq. For discussion of various types of contracts, see Part 16.

[C Culham]

Deaner – Here are a couple of references that may help you as you sort out the thoughts and conclusions that have been offered in this thread.

Principles of Federal Appropriation Law (Red Book) Volume II, Chapter 10, Federal Assistance, Grants and Cooperative Agreements – found here http://www.gao.gov/special.pubs/d06382sp.pdf - Specifically see Section C.4. of Chapter 10 which is “Contracting by Grantees”.

OMB Website chart on Codification of Government wide Grants Requirements by Department which is found here -

http://www.whitehouse.gov/omb/grants_chart

For the latter you will find the “Grants Management Common Rule” Code of Federal Regulation for each agency listed. Go to the specific CFR for the agency from who your grant has been received and read the portion of the CFR entitled “Procurement”.

I believe both of these references will provide adequate and authoritative reference for your discussion with your management.

[brian]

In my limited experience with grants in DOD (USAF, to be specific,)

a Grant can only be awarded by someone who has been given that authority explicitly.

A CO Warrant does not authorize someone to award a Grant.

In general, the Grants Officer has to complete Grants training at Fort Lee,

at which they will learn when or if they can award a Grant.

[Deaner]

I have a pretty good grasp on the theory of how grants works from all the information that was submitted on this fourm, its more of the process and application i'm struggling with now.

in my circumstance, an executive agency has awarded a grant. the awardee submits a funding document to me here in contracting with a SOW, security requirements, etc.. How i handle that funding, competition, etc. is what i'm struggling with.

I have a way that i will go about awarding this; however, i'm 99% sure we aren't handling this correctly.

[brian]

Deaner,
I went to Fort Lee to find out how to handle my "Grant,"

only to learn that nobody in my entire Field Operating Agency was authorized to award a Grant.

So we awarded a contract instead, which put more restrictions on the intended recipient, with money sent to us from an activity that could have awarded a Grant, but wouldn't have been able to administer it.

My impression,

under a Grant,

the Grantee can pretty much draw whatever money they want, even before it is expended, unlike in a contract, where payment is made in arrears.

[Craigmccaa]

_{Deaner -}

_{A couple of questions:}

_{Do you work for a Federal Government agency?}

_{How did the money in question come to your organization?}

[Deaner]

Yes i work for a federal agency.

The money was provided by the VA career development award for clinical science research & development.

[Retreadfed]

If the grant has been awarded, was it funded when it was awarded? What are you supposed to do with the funds that were sent to you? Are you to add more funds to the grant for more support? This is very confusing.

[Deaner]

yup i know... confusing.

The grant was awarded and funded. what am i suppose to do with the grant funding.... no idea.

The grant shows that funding was to provide the PI a salary for 3 years, X amount of funding for patient recurtment, and was all in much more detailed than anything we in contracting would ever get into.

To me it seems like it shouldn't have even came to contracting.