What is the Principal Purpose of the Activity

1
What is the Principal Purpose of the Activity?

• 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
• 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
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
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
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.

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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.

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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 .

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ContractIf 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

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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
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
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

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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.

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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

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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 http//www.grants.gov/aboutgrants/
  eligibility.jsp.

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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

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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
  AdministrationGrants Management Division1325
  East West Highway, OFA/62Silver Spring, MD
  20910Facsimile 301-713-0947
• Director Rimas Liogys
• Website http//www.ago.noaa.gov/grants/index.shtm
  l

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Binding Agreements

• Economy Act Agreements
• Joint Project Agreements
• Special Studies Agreements
• Intergovernmental Cooperation Act Agreements
• Other Agreements

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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.

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Economy Act AgreementsIf 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 DF)

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Joint Project AgreementsIf 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

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Special Studies AgreementsIf 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

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Intergovernmental Cooperation Act AgreementsIf
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

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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 (202-482-1984) assist.
• Coast and Geodetic Survey Act (33 U.S.C. 883e)
• Space Act (NASA)
• Bonneville Power Act (BPA)
• Clean Air/Clean Water Acts (EPA)

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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

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Additional Information

• Further information can be obtained from
• 31 USC Chapter 63 - USING PROCUREMENT CONTRACTS
  AND GRANT AND COOPERATIVE AGREEMENTS

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Funding Instruments Under FGCAA - 31 USC 6301