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1 What is the Principal Purpose of the Activity? A.Is the principal purpose of the award to acquire goods or services that will be used by NOAA to carry.

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Presentation on theme: "1 What is the Principal Purpose of the Activity? A.Is the principal purpose of the award to acquire goods or services that will be used by NOAA to carry."— Presentation transcript:

1 1 What is the Principal Purpose of the Activity? A.Is the principal purpose of the award to acquire goods or services that will be used by NOAA to carry out its public mission? Answer Yes: Procurement Contract B.Is the principal purpose of the award to meet the needs of a nonfederal entity carrying out an activity that Congress has decided to assist as a matter of public policy by statute? Answer Yes: Grant or Cooperative Agreement

2 2 Contract or Grant What is a Contract? What is a Grant ? Knowing the difference between a Contract and a Grant can save time, effort and money

3 3 What is a Contract? A contract is an award instrument establishing a mutually binding legal relationship between the Government (Buyer) and a Contractor (Seller), obligating the seller to furnish/deliver goods, supplies and/or services whose functional and performance qualities are defined in the contract and the buyer to pay for them.

4 4 What is meant by Acquisition? Acquisition is the process, through the award of contracts, by which the Government acquires or obtains goods, supplies, products or services for its direct benefit or use, or who in-turn provides these results or end products for use by non-Government parties, including the general public.

5 5 The Contract Process The Federal Acquisition Regulation (FAR) cites numerous documents involved in the Acquisition Process The primary documents for discussion are: Acquisition Plan - the process by which the efforts of all personnel responsible for an acquisition are coordinated and integrated through a comprehensive plan for fulfilling the agency need in a timely manner and at a reasonable cost. Statement of Objectives - a Government-prepared document incorporated into the solicitation that states the overall performance objectives. Request for Information (RFI) - may be used when the Government wants to obtain price, delivery, other market information, or capabilities for planning purposes.

6 6 The Contract Process (Cont) Solicitation - any request to submit offers or quotations to the Government. Solicitations under negotiated procedures are called Requests for Proposals.) Proposals - responses to a solicitation (requests for proposals) that, if accepted, would bind the offeror to perform the resultant contract. Contract - a mutually binding legal relationship obligating the seller to furnish the supplies or services and the buyer to pay for them. 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.

7 7 Contract If the primary purpose is... To acquire goods or services For the benefit of the United States Authority to Contract is inherent in the Agencys authorizing legislation which defines its mission Type of Organization is not determinative – you can acquire by contract services from universities, non-profits, and research organizations

8 8 Advantages of Contracts Agency can devote its resources to Governmental functions, using contractors to provide commercial and ministerial services Quickly obtain commercial items and services and minimize administrative operating costs Assert control over quality and quantity of supplies and services for which it provides funds

9 9 Use of Contracts An agency may use a contract to acquire special knowledge or skills not available in the Government, or to obtain cost effective, temporary, or intermittent services A contract may be used whether the supplies, technology, or services, including construction, are in existence or must be created, developed, demonstrated and evaluated

10 10 Contract Law and Regs NOAA acquisitions by contract must be conducted in accordance with the following: Competition in Contracting Act, 31 USC 3551 Federal Acquisition Regulation (FAR), 48 CFR Part 1 (implementing various statutes) Commerce Acquisition Regulation (CAR), Office of Administrative Services website

11 11 What is a Grant? A federal Grant is an award of financial assistance from a federal agency to a recipient to carry out a public purpose of support or stimulation authorized by a law of the United States. A grant is not used to acquire property or services for the federal government's direct benefit. Grants are not federal assistance or loans to individuals. Grants are not Benefits or Entitlements. The 26 federal agencies offer over 1,000 grant programs annually in various categories.

12 12 Types of Grants Cooperative Agreement – A Grant with additional conditions and approvals required by Agency Direct Authorized Grant – Appropriations Act directs specific amount of funds directly to named recipient No specified Purpose No Conditions Imposed by Federal Government

13 13 Who Is Eligible? The Government Organizations are: State Governments Local Governments City or Township Governments Special District Governments Native American Tribal Governments (federally recognized) Native American Tribal Governments (other than federally recognized) To find out what grants are currently available for these different eligibility categories, please refer to

14 14 Authority for Financial Assistance NOAA cannot make grants unless Congress provides: 1. Authority through legislation (U.S. Constitution, Art. I, Sec. 8) AND 2. Funds activities through appropriations Authorization - a law permitting a new or continued operation of a federal agency, program, or activity (can be in an appropriation act) Appropriation – Congress must also provide funds supporting the authorized activity

15 15 NOAAs Grant Management Division For further information regarding Grants, the NOAAs Grant Management Division is available to assist you. Grants Office National Oceanic and Atmospheric Administration Grants Management Division 1325 East West Highway, OFA/62 Silver Spring, MD Facsimile Director: Rimas Liogys Website:

16 16 Binding Agreements Economy Act Agreements Joint Project Agreements Special Studies Agreements Intergovernmental Cooperation Act Agreements Other Agreements

17 17 What is an agreement? A basic agreement is a written instrument of understanding, negotiated between an agency or contracting activity and a contractor, that (1) contains contract clauses applying to future contracts between the parties during its term and (2) contemplates separate future contracts that will incorporate by reference or attachment the required and applicable clauses agreed upon in the basic agreement. A basic agreement is not a contract.

18 18 Economy Act Agreements If the principal purpose is... To acquire goods or services For your agency From another Federal agency instead of a private sector contractor Requires: funds are available; best interest of the Government; servicing agency can, in fact, provide the goods or services; and it can be done more cheaply or conveniently than by a commercial enterprise FAR Part 17.5 (the D&F)

19 19 Joint Project Agreements If the principal purpose is... Equitably share the costs of a project With a non-profit or public organization On a matter of mutual interest Policy findings: The project cannot be done at all or as effectively without the participation of that particular partner, and The project is essential to the furtherance of the Departments programs JPAs only signed by head of operating unit or designee Substantial participation necessary

20 20 Special Studies Agreements If the principal purpose is... To provide, upon request of any person, firm, or public or private organization Special studies on matters within the authority of your organization To include preparing special compilations, lists, bulletins, or reports and furnishing copies of the studies, compilations, and other records Requires: payment of the actual or estimated costs of such special work

21 21 Intergovernmental Cooperation Act Agreements If the principal purpose is... To provide services to a State or local government related to statistical and other studies and compilations, development projects, training activities, surveys, reports, or documents. State or local government must make a written request; and State or local government must pay all identifiable costs of providing the service

22 22 Other Agreements Other statutorily-authorized ways to receive funds or establish relationships with outside organizations Usually tied to specific activities of the program CRADAs – Federal labs may conduct research and development with qualified organizations under this authority when partners expect intellectual property to be developed. NOAA-GCW and CC/Technology ( ) assist. Coast and Geodetic Survey Act (33 U.S.C. § 883e) Space Act (NASA) Bonneville Power Act (BPA) Clean Air/Clean Water Acts (EPA)

23 23 Why a Legal Review? It is recommend to discuss options with Legal for the following reasons: Comply with laws and Department policies Consistent approach among all bureaus No perception of unfairness or inappropriateness Protect the Departments special authorities and resources Complete the proposed activity in an economical and efficient manner

24 24 Additional Information Further information can be obtained from: 31 USC Chapter 63 - USING PROCUREMENT CONTRACTS AND GRANT AND COOPERATIVE AGREEMENTS

25 25 Funding Instruments Under FGCAA - 31 USC 6301


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