United States Environmental Protection Agency - Region VIII
Grants, Audit, and Procurement Program Office, 8TMS-G
EPA202-B-99-001
April 2000-First Edition
Managing Your Financial Assistance Agreement
Refresher Course for Project Officers
INTERAGENCY AGREEMENTS
'rinted on Recycled Paper
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Table of Contents
ISSUE
Introduction & History of Training Requirements
Overview - lAGs
Authorities
Project Officer Roles & Responsibilities
Purpose of Closeout:
Closeout -Roles & Responsibilities
PAGE
4
6
9
10
Appendix A:
Appendix B:
Appendix C:
Appendix D:
Appendix E:
Appendix F:
APPENDICES
EPA Form 1610-1 Interagency Agreement
Document Requirements for NEW LAG or Amendment
REGION VIE Commitment/Award Certification
Form 50-B Notification of Personnel Action
Grants Management Fact Sheets for Agency Leaders:
#2: Potential for Poor Quality Products
#4: Conflict of Interest
#7: Preaward Costs Under lAGs
#12: Payment Under lAGs
Government Performance Results Act
Best Practices Guide for Conferences
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Appendix G:
Appendix H:
Appendix I:
Appendix J:
Appendix K:
Appendix L.
Appendix M:
Appendix N:
Policy Memo to Close Disbursement & Reimbursement
Interagency Agreements-2/12/99
Close out Policy for Disbursement Interagency Agreements
Closeout Policy for Reimbursement Interagency Agreements
4831 - Personal Property Management Policy Manual
Appendix T-Interagency Agreement Decision Memorandum
Guidance, Pre-Award 1AG Activities and Subcontractor
Selection
Federal Acquisition Regulation-Part 17: Special Contracting
Methods (use Subpart 17.5 with Appendix I-Decision
Memorandum Guidance for Economy Act LAGs)
Legal Opinion Regarding the Use of Interagency Agreements
Direct Payment to Contractors under lAGs (2/7/2000)
Financial Guidance for Reimbursable Interagency Agreements-
Cincinnati Finance Management Center
Financial Guidance for Disbursement Interagency Agreements-
Cincinnati Finance Management Center
Appendix O: Grants Program Assignments
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INTRODUCTION
&
HISTORY OF TRAINING REQUIREMENTS
On OctobeM, 1995, EPA required all Project Officers for grants,
cooperative agreements and/or Interagency Agreements (IAG) to complete
the basic course "Managing Your Financial Assistance Agreement-Project
Officer Responsibilities." At this time (April, 2000), Project Officers are
encouraged to attend the Refresher course.
The purpose of this course is to review and update your knowledge of
guidance documents and NEW information available to assist you when
utilizing lAGs in your work efforts. The information included in this manual is
not all inclusive and is to be used only as a tool for reference.
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OVERVIEW - INTERAGENCY AGREEMENTS
Definitions
Roles & Responsibilities
KEYPOINTS:
"IAG" - Federal interagency agreements and
Intergovernmental agreements between a Federal agency,
State or local government.
Two participants:
- "Ordering Agency" which pays for the goods or services
under a "funds out" agreement and;
- "Servicing Agency" which provides the goods or services
under a "funds in" agreement.
For guidance on preparing an Interagency Agreement
package see Appendix I, "Interagency Decision Memorandum
Guidance...," Gary Katz, dated 9/30/96.
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Four Types of IAG:
- Federal Interagency Agreements: Written agreements
between Federal agencies under which goods and
services are provided in exchange for funds, or where
services are exchanged without payment.
- Policy Agreements or Memorandums of
Understanding: lAGs where NO FUNDS CHANGE
HANDS. These agreements set forth basic policies and
procedures governing the relationship between the
agencies.
- Intergovernmental Agreements: Agreements between
a Federal agency and a state or local government under
which the state or local government reimburses the
Federal agency for the costs of providing a specific
technical service, e.g., statistical studies and
compilations, technical tests and evaluations, training,
surveys, reports, documents and data.
- International Agreements: Agreements under which
work will be conducted for a foreign government or
involving international work or travel or an international
organization. The Office of International Activities must
be involved for international agreements.
For additional information on each of the above types of
interagency agreements see Module VIII of the Basic Project
Officer training manual.
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Focus of Refresher Training will be on Federal Interagency
Agreements (first of the four types of IAG).
RVIII Policy: any time money is exchanged between RVIII and
another agency, RVIII must issue an IAG document (whether a funds in
agreement or funds out agreement).
Disbursement (DW) IAG: EPA money transferred to another agency.
(EPA is the Ordering Agency-funds out agreement.)
Reimbursement (RW) IAG: Other agencies money transferred to
EPA. (EPA is the Servicing Agency-funds in agreement.)
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AUTHORITIES: Economy Act of 1932, Cooperation
Authorities and the Intergovernmental Cooperation Act
The Economy Act allows an agency to obtain goods or
services from another agency to improve economy and
efficiency in the government. To use the Economy Act,
BOTH Federal agencies must be inherently responsible for
conducting the proposed activities and authorized to use
their appropriation for the work. For Economy Act
Interagency Agreements none of the funds will be used for
a grant or cooperative agreement.
The Cooperation Authorities, e.g., section 103 of the
Clean Air Act or section 104 of the Clean Water Act,
allows EPA to enter into an IAG with other Federal
agencies. The work must be eligible under one or more of
EPA's cooperation authorities. If any of the funds will be
used for a grant or cooperative agreement, both of the
following conditions must be met:
- The relationship between the recipient and the
ordering agency must be one of assistance and;
- Both agencies must have legal authority to award the
Grant or cooperative agreement. To review a listing
of current EPA cooperation authorities see Appendix
I, attachment 4.
The Intergovernmental Cooperation Act provides
authority which allows State and local governments to
obtain goods/services from the Federal government. The
office of Management and Budget Circular A-97 provides
detailed guidance for these agreements.
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Under a funds-in Economy Act or cooperation authority
IAG, if EPA will use more than 15% or $15,000 for travel,
the Decision Memorandum must include a statement that
the purpose of the IAG and associated travel is to carry out
a project in support of the other agency's mission and not
to augment EPA's travel ceiling.
For funds-out Economy Act or cooperation authority lAGs
with travel budgets meeting the same criteria, the other
agency's Project Officer must provide a similar statement.
If IAG funds will be used for a grant or cooperative agreement,
the funding package must include a statement from the EPA
Project Officer that the principle purpose of the work is to
support or stimulate the recipient to accomplish a public
purpose and NOT for the direct use and benefit of the Federal
government. For a funds-out agreement, the funding package
must include a similar statement from the other agency's
Project Officer. The Decision memorandum must cite both
EPA's and the other agency's grant making authority.
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PROJECT OFFICER ROLES & RESPONSIBILITIES
Interagency Agreements
Work Consistent with EPA's Mission
Negotiate Scope of Work, Funding & Budget
Obtain Necessary Concurrences
Prepare Funding Request
Assure Performance
Review & Approve Payments
Close-out Agreement
KEYPOINTS:
Activities under lAGs must be consistent with EPA's
mission and statutory authority. EPA cannot use an IAG
to acquire authority it does not already have.
Each IAG should be for a distinct project with a clearly
defined objective or work product. The Project Officer is
responsible for negotiating the work EPA and the other
agency will perform. Both Agencies should negotiate the
estimated cost of the IAG. The estimate must reflect all
substantial costs necessary to carry out the project, e.g.,
personnel, extramural agreements, travel and preparation of
reports (particularly the final report).
For funds-out lAGs, the Project Officer should assure the
costs for the proposed work is reasonable. The
determination must be documented in the Project Officer's
file.
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The Project Officer will probably be the program's person
to prepare the draft EPA Form 1610-1 and the decision
memorandum, see Appendix I for guidance.
If the IAG includes international activities, the Project
Officer must obtain the approval of the Office of International
Activities.
For funds-out lAGs, the program office must prepare a
Commitment/Award Certification Form (Appendix B) which
approves funds.
If the IAG includes funds for a detail for an EPA employee the
package must include a completed Personnel Action Form
(SF 50), see Appendix C.
The Project Officer should determine what programmatic
terms and conditions the Grants Management Office will
include in the agreement.
If the IAG payments will be made in ADVANCE the Project
Officers need to justify use of the "Advance Method" in the
decision memorandum.
For funds-out agreements, a breakdown of the costs
associated with the billing request must be provided to the
EPA Project Officer. The Project Officer needs to determine
that costs billed to EPA are necessary and reasonable. If the
information is not provided by the other agency, the
Project Officer should notify the Cincinnati Financial
Management Center (CFMC). Appendix M or N.
The Project Officer is responsible for monitoring
performance. Problems that may arise should be brought
to the attention of the respective Grants Management
Office.
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The Project Officer is responsible for working with their
respective Grants Management Office to assure a timely
close-out of the agreement once the work is completed.
Closeout procedures are outlined in Grants Policy
Issuance Number 99-2 and 99-3, see Appendix G.
8
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PURPOSE OF CLOSEOUT
KEYPOINTS:
Closeout ensures a final accounting of expenditures and an
assessment by the Project Officer that all technical work has
been completed and is satisfactory.
Project closeout remains a high priority by the Agency and
Project Officers need to work with their.respective Grants
Management Office to facilitate a timely closeout of their
projects.
Internal procedures may vary between the Grants
Management Offices and Project Officers should contact
their respective GMO to inquire on the closeout process.
For Interagency Agreement closeout procedures, see
Appendix G.
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CLOSEOUT - ROLES & RESPONSIBILITIES
KEYPOINTS:
The Grants Management Office should be notified as soon as
the Project Officer has received and accepted a final technical
report.
A Project Officer can recommend that closeout Procedures
begin and assist his/her respective GMO in closing out a
project.
By initiating the closeout process the Project Officer is
certifying that all programmatic terms and conditions of the
assistance agreement have been satisfied.
The Project Officer should provide equipment disposition
instructions to the respective GMO. A review of the
appropriate general regulations should be made to assure
that proper procedures are being followed .
10
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Appendix A
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Page 1 of 3
£ aflk %
I t^99^7 1
United States Environmental
Protection Agency
Washington, DC 20460
\^iSl^rjg Interagency Agreement
Amendment
Part 1 - General Information
6. Name and Address of EPA Organization
1. EPA IAG Identification Number
2. Other Agency IAG ID Number
3. Type of Action
4. Funding Location by Region
6. Program Office
Abbreviation
7. Name and Address of Other Agency
8. Project Title
9. EPA Project Officer (Name, Address, Telephone Number)
11. Project Period
10. Other Agency Project Officer (Name, Address, Phone Number)
12. Budget Period
13. Scope of Work
EPA Grants Specialist for this IAG is
14. Statutory Authority for Both Transfer of Funds and Project Activities
Funds
16. EPA Amount
17. EPA In-Kind Amount
18. Other Agency Amount
19. Other Agency In-Kind Amt
20. Total Project Cost
Site Name DON
Previous Amount
15. Other Agency Type
Amount This Action Amended Total
21. FISCAL
FY Approp. Budget Org.
PRC Object Site/Project
Cost Org. Obligation
EPA Form 1610-1 (Rev. 1048). Previous editions are obsolete.
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EPA 1AG Identification No. Page 2 of 3
Part II - Approved Budget
EPA IAG Identification Number
22. Budget Categories
Kemization of
This Action
Kemization of Total Project
Estimated Cost to Date
(a) Personnel
(b) Fringe Benefits
(c) Travel
(d) Equipment
(e) Supplies
(f) Procurement / Assistance
(g) Construction
(h) Other
(i) Total Direct Charges
(j) Indirect Costs: Rate % Base $
(k) Total (EPA Share %) (Other Agency Share %)
23. Is equipment authorized to be furnished by EPA or leased, purchased, or rented with EPA funds? I I Yes I I No
(Identify all equipment costing $1,000 or more)
24. Are any of these funds being used on extramural agreements? (See Item 22f.) I I Yes
No
Type of Extramural Agreement
D Grant
I I Cooperative Agreement I I Procurement
Contractor/Recipient Name (if known)
Total Extramural Amount Under This Project
Percent Funded by EPA (if know
Total $
Part III - Funding Methods and Billing Instructions
25.
(Note: EPA Agency Location Code (ALC) - 68010727)
Disbursement Agreement
LJ Repayment
D Advance
LJ Allocation Transfer-Out
Request for repayment of actual costs must be itemized on SF 1080 and submitted to the Financial Management Of
OH 45268:
D Monthly D Quarterly D Upon Completion of Work
Only available for use by Federal agencies on working capital fund or with appropriate justification of need for this t
method. Unexpected funds at completion of work will be returned to EPA. Quarterly cost reports will be forwarded
Management Center, EPA, Cincinnati, OH 45268.
Used to transfer obfigational authority or transfer of function between Federal agencies. Must receive prior approval
Comptroller, Budget Division, Budget Formulation and Control Branch, EPA Hdqtrs. Forward appropriate reports
Reports and Analysis Branch, Financial Management Division, PM-226F, EPA, Washington, DC 20460.
26.
Reimbursement Agreement
LJ Repayment
D Advance
D Allocation Transfer-In
Other Agency's IAG Identification Number
Other Agency's Billing Address (include ALC or Station Symbol Number)
EPA Program Office Allowance Holder/Resp. Center No.
Other Agency's Billing Instructions and Frequency
EPA Form 1610-1 (Rev. 1048). Previous editions are obsolete
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EPA 1AG Identification No.- - Page 3 of 3
Part IV - Acceptance Conditions
EPA Identification Number
27. General Conditions
The other agency covenants and agrees that it will expeditiousty initiate and complete the project for which funds
have been awarded under this agreement
28. Special Conditions (Attach additional sheets If needed)
Part V - Offer and Acceptance
Note: 1) For Disbursement actions, the agreement/amendment must be signed by the other agency official in duplicate and one original returned to the Grants
Administration Division for Headquarters agreements or to the appropriate EPA Regional LAG administration office within 3 calendar weeks after receipt or within
any extension of time as may be granted by EPA. The agreement/amendment must be forwarded to the address cited in item 29 after acceptance signature.
Receipt of a written refusal or failure to return the properly executed document within the prescribed time may result In the withdrawal of offer by EPA. Any change
to the agreement/amendment by the other agency subsequent to the document being signed by the EPA Action Official, which the Action Official determines to
materially alter the agreement/amendment, shall void the agreement/amendment
2) For Reimbursement actions, the other agency will initiate the action and forward two original agreements/amendments to the appropriate EPA program office for
signature. The agreements/amendments will then be forwarded to the appropriate EPA IAG administration office for acceptance signature on behalf of the EPA.
One original copy will be returned to the other agency after acceptance.
EPA IAG Administration Office (for administrative assistance)
EPA Program Office (for technical assistance)
29. Organization/Address
US
30. Organization/Address
Certification
All signers certify that the statements made on this form and all attachments thereto are true, accurate, and
complete. Signers acknowledge that any knowingly false or misleading statements may be punishable by
fine or imprisonment or both under applicable law.
Decision Official on Behalf of the Environment Protection Agency Program Office
31. Signature
Typed Name and Title
Date
Action on Behalf of the Environment Protection Agency
32. Signature
Typed Name and Title
Date
Authoring Official on Behalf of the Other Agency
33. Signature
Typed Name and Title
Date
EPA Form 1610-1 (Rev. 10-88) Previous editions are obsolete.
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DOCUMENTS REQUIRED FOR A NEW IAG
(Disbursement IAG or Reimbursement IAG):
1. Completed Draft of EPA Form 1610-1 (all three
pages)
2. Scope of Work (SOW)
3. Decision Memorandum developed by project
officer, signed by ARA & concurred on by
appropriate program office staff determined
by project officer
4. Signed Region VIII Commitment/Award
Certification
DOCUMENTS REQUIRED FOR AN AMENDMENT:
1. Copy of previous action of EPA 1610-1 form
(all three pages) with all new changes marked
2. Amended SOW to attach (if appropriate)
3. Signed Region VIII Commitment/Award
Certification (if appropriate)
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Appendix B
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How do I get to the Region VIII Commitment Award/Certification Form?
I:\Grants\Newc&a.l23
Please DO NOT use the Headquarters Commitment form unless the funds FROM
Headquarters.
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United States
Environmental Protection Agency
Region VIII
COMMITMENT/AWARD CERTIFICATION
Tj APPLICANT NAME
^T) EPA COMMITMENT AMOUNT
4 CARRY OVER AMOUNT $
F
$
ASSIST ANCE/IAG NUMBER
D
(IF ASSIGNED)
ROJECT/BUDGET PERIOD
START END
ADD-ON TO ALLOCATION AMOUNT 1 PART OF ALLOCATION AMOUNT | |
^T) IAG LJ GRANT/COOPERATIVE AGREEMENT Q PPG (see attached) Q
TYPE OF ACTION: NEW | CONTINUATION Q AMENDMENT/INCREASE L]
DELEGATION OF AUTHORITY NUMBER CFDA NUMBER
_6j PROJECT DESCRIPTION:
_7J STATUTORY AUTHORITY:
8J GRANTS ONLY: NON-COMPETITIVE JUSTIFICATION
_9J JUSTIFICATION FOR CONTRACT vs.
GRANT/*
10 | REPORTING REQUIREMENTS:
~~^ Programmatic Terms
QUARTERLY Q ANNUALLY Q FINAL Q and Conditions Attached?
1 1 EPA P.O. SIGNATURE:
12 PROGRAM FUNDS APPROVED:
DAT
DAT
YES Q NO Q
E
E:
FINANCIAL AND ACCOUNTING DATA
13]
BUDGET APPROP. BUDGET PROGRAM OBJECT
DCN FY CODE ORG/CODE RESULTS CLASS Amount (dollars)
CODE
1 - ! :
5 £ :i~~"
3 *.? f.;"
":' '' '-.~- '-:." ?
;^.» ''"^ *r :-:;' :
, _.. . ^w ^ " -f
14]
FUNDS CERTIFYING OFRCER SIGNATURE: (AO)
t
DECISION OFFICIAL (or designee)
15]
SIGNATURE: (ARA)
DATE
SITE/PROJECT CostOrg/Code
*' I-?-'
--
~
>ATE:
REVISED R8TMS-G/Sept99 NEWC&A123
EPA GRANT FORM-001
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NSTRUCTIONS FOR COMPLETION OF COMMITMENT /AWARD CERTIFICATION
. Applicant name: Legal name of recipient
.. Assistance number: Grant/CA/lAG number (if known)
5. EPA Commitment Amount $: New funds to be awarded
. Grants Only: Carryover Amount $: Unobligated Balance Amount
Add-on to Allocation Amount: Amount of funds in addition to the current allocation
Part of Allocation Amount: Amount to replace current year funds (will free-up current
year funds for another recipient).
. Check one: Grant/Cooperative Agreement
Performance Partnership Grant (PPG)
InteragencyAgreement (IAG)
iheck one Type of Action: Self -explanatory
6. Project Description: Self-explanatory
. Statutory Authority: Authorization Authority for this award (Clean Air, Section 105, etc.)
8. Grants Only: Non-Competitive Justification: Justification why this award was non-competitive
(Continuing Environmental Program, etc.)
9. Justification for Contract vs Grants/lAG: Self-explanatory
10. Reporting Requirement
a. Grants only: Quarterly, Annual, Final
b. Grants or lAGs: Programmatic Terms and Conditions Attached: Yes or No
11. EPA P.O. Signature: Signature of the Project Officer and Date
12. Program Funds Approved: Program person responsible for tracking the funds to complete all
information for Block 13 (EXCEPT DCN) and Date
13. Financial and Accounting Data: See 12 and 14
14. Funds Certifying Officer Signature: Administrative Officer(AO) will enter DCN (Block 13)
number and Date
15. Decision Official (or designee): Assistant Regional Administrator (ARA)
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Appendix C
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Standard Form 50-B
Rev. 7/91
U.S. Office of Personnel Management
FPM Supp. 296-33. Subeh. 4
NOTIFICATION OF PERSONNEL ACTION
1. Name (Las
FIRST
5-A.Code
S-C.Code
5-ECode
t, First, Middle)
ACTION
5-B. Nature of Action
5-0. Legal Authority
5-F. Legal Authority
7. FROM: Position Title and Number
S.PayPlan 9.0cc.Code 10. Grade/Level 11. Step/Rate 1Z Total Salary 13.PayBasis
12A.BascPay 12B. Locality Adj. 12C. Ad). Basic Pay 12D.OtHerPay
2. SoaaJSe<
SECor
6-A.Code
6-C. Code
6-ECode
ainty Number 3 Date of 64*1 1 4. Effective Date
JD ACTION
6-B. Nature of Acton
&-D. Legal Authority
6-F. Legal Authority
15. TO: Position Title and Number
16. Pay Plan
17.00. Code 18. Grade/Level 19. Step/Rate 20. Total Salary/Award 21.PayBa
m Basic Pay 20B. Locatty Mj. 20C. Adj. Basic Pay 200 Othw Pay
14. Name and Location of Position's Organization
22. Name and Location of Position's Organization
EMPLOYEE DATA
23. Veterans Preference
1 1-None 3-10-Point/DisabHrry 5 - 10-Point/Other
| 2 - 5-Point 4 - 10-Point/Compensable 6 - 10-Point/Comp«nsable/30%
27. FEGU
30. Retirement Plan 31 . Service Comp. Date (Leave)
24. Tenure 1 25. Agency Use
1 0-None 2 - Conditional |
| 1 - Permanent 3 - Indefinite | |
28. Annuitant Indicator
32. Work Schedule
26. Veterans Preference for I
I YES | ]NO
29. Pay Rate Determinant
33. Part-Time Hours Per
, Biweekly
Pay Period
POSITION DATA
34. Position Occupied
1 1 - Competitive Service 3 - SES General
I 2 - Excepted Service 4 -SES Career Reserved
38. Duty Station Code
40. AGENCY DATA
41.
35. FLSA Category
1 E- Exempt
| N - Nonexempt
36. Appropriation Code
37. Bargaining Unit Status
39. Duty Station (City - County - State or Overseas Locator)
42.
43.
44.
45. Remarks
46. Employing Department or Agency
47. Agency Code
48. Personnel Office ID
49. Approval Date
50. Signature/Authentication and Title of Approving Official
TURN OVER FOR IMPORTANT INFORMATION 1 r|notow.Co|w KMOto FutaW ItelWIlC* Edttrons Pnor to 7/91 Are Not Usable After 6/
S-Part 5O316
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Appendix D
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Grants Management Fact Sheet for Agency Leaders:...: Potential for Poor Quality Product Page 1 of 2
Grants Management Fact Sheet for Agency
Leaders: Number 2: Potential for Poor Quality
Products
Document ID Number: FS 02 Signer: Bruce M Feldman Signature Date: 02/01/93 Revision Date:
Category: Fact Sheets
GRANTSMANAGEMENTFACT SHEETFOR
AGENCYLEADERS:
NUMBER 2: POTENTIAL FOR POOR QUALITY PRODUCTS
CONCERNS
The potential exists for EPA to receive poor quality products or no product at aH from grantees because:
There is sometimes a "rush" to make awards due to inadequate planning, and late program guidance.
Roles and responsibilities between Project Officers and Grants Management staff are unclear.
Monitoring of progress, grant conditions, or reports may be inadequate.
IMPLICATIONS
Poor quality products are a waste of resources and do not contribute to environmental improvement.
Responsible persons maybe disciplined for poor performance.
Interest payments may be incurred because of late awards of continuing environmental program
grants.
WHAT GAD IS DOING
On June 1, 1990, the Deputy Administrator issued a memorandum restating and clarifying existing
Agency policy on the roles and responsibilities for grant administration activities.
On September 14,1992, GAD issued a policy on timely awards to assure State continuing
environmental program awards are made as soon as possible after funds become available.
GAD is developing Project Officer training which will focus on Project Officer roles vis-a-vis-Grants
Management Office roles.
GAD is establishing a Grants Customer Relations Council to focus on administrative issues.
WHAT PROGRAM LEADERS SHOULD DO:
Assure that national program guidance is prepared by April 30 as required by Agency policy
Assure that your organization does early planning to avoid the end of the year "rush" and
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Grants Management Fact Sheet for Agency Leaders: .... Potential for Poor Quality Product Page 2 of 2
ji ussiuie muiiying
Assure that your program maintains close communications with Grants Management staff
regarding the timing of grant awards.
Assure that grants are p rop erly m onitored after award .
CONTACT FOR FURTHER INFORMATION
Bruce Pel dm an. Chief, Grants Policy and Procedures Branch, Grants Administration Division
(202)260-5268
2/93
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Grants Management Fact Sheet for Agency Leaders: Number 4: Conflict of Interest Page 1 of 2
^ Grants Management Fact Sheet for Agency
Leaders: Number 4: Conflict of Interest
Document ID Number: FS 04 Signer: Bruce M. Feldman Signature Date: 05/01/94 Revision Date:
Category: Fact Sheets
GRANTS MANAGEMENTFACT SHEETFOR
AGENCYLEADERS:
NUMBER 4: CONFLICT OF INTEREST
CONCERNS
The potential exists for the actual or perceived misuse of funds because of conflict of interest.
IMPLICATIONS
Public confidence in the integrity of the:government or EPA may be adversely affected if the public
believes public office is being used fbr'private gain.
Avariety of disciplinary actions may be taken against those guilty of conflict of interest, ranging fir on:
simple administrative reprimands, through dismissal, to criminal charges against the employee (e.g.,
accepting a bribe).
WHAT IS GAD DOING
On September 24, 1992, the Deputy Assistant Administrator for Finance and Acquisition and the
Deputy Assistant Administrator for Research and Development issued a memorandum to ORD
Directors setting forth EPA involvement in personnel and procurement actions of grantees.
Conflict of interest is atopic in the GAD Project Officers training course.
GAD established a Grants Customer Relations Council to focus on administrative issues.
GAD is developing Conflict of Interest guidance memorandum to distribute the Project Officers.
WHAT PROGRAM LEADERS SHOULD DO:
Assure that staff are fully aware of the " Standards of Ethical Conduct For
Employees of the Executive Branch" which states EPA employees may not take
any action which would create the reasonable appearance of: (1) using a public
office for private gain, (2) giving preferential treatment to any organization or
person, or (3) losing independence of impartially of action. The Office of General
Council distributed copies of this document to each employee.
Assure that Agency staff takes the required Ethics training course.
Assure that Agency staff do not direct or require the use of p articular persons or
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Grants Management Fact Sheet for Agency Leaders: Number 4: Conflict of Interest Page 2 of 2
iirius uy asMsiaim; recipients iti uie peri unit azice ui a giciiii ur cuujierauve
agreement
CONTACT FORFURTHERESFOEMATION
Bruce Feldman, Chief, Grants Policy, and Procedures Branch, Grants Administrative Division,
(202) 260-5268.
5/94
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Grants Management Fact Sheet for Agency Leaders: Number 7: Preaward Costs Under IAGS Page 1 of 2
^H* Grants Management Fact Sheet for Agency
Leaders: Number 7: Preaward Costs Under
IAGS
Document ID Number: FS 07 Signer: Scott McMoran Signature Date: 08/01/94 Revision Date:
Category: Fact Sheets, Interagency Agreement Documents
GRANTSMANAGEMENTFACT SHEETS FOR
AGENCY LEADERS:
NUMBER?: PREAWARD COSTS UNDERlAGs
CONCERNS
EPA staff sometimes authorize other agencies to begin work under Interagency Agreements before tt
action official signs them.
IMPLICATIONS
Preaward work limits options of program decision officials, since a decision not to pay for the work
would improperly augment EPA's budget or create in the other agency an Ann'deficiency Act
violation.
Contractors may be assigned work that is not funded
The other agency cannot obtain timely repayment
WHAT GAD IS DOING
The Interagency Agreement Policy and Procedures Compendium makes clear the EPA staff should n«
ask other agencies to begin work until lAGs are signed.
This requirement is restated in an August 10,1988, memorandum from David Ryan, Comptroller and
Harvey Pippen, Director, Grants Administration Division.
WHAT PROGRAM LEADERS SHOULD DO:
Assure that project officers are aware that they should not ask other agencies to begin work
until lAGs are signed, except as provided below.
In cases where emergencies, unplanned delays in funds availability, or other problems make
is necessary to move forward before award of the IAG, obtain Decision Official approval and
develop and IAG funding package as soon as practicable. The Decision Memorandum must
explain the situationidentify the activities conducted before the IAG signature, explain why
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Grants Management Fact Sheet for Agency Leaders: Number 7: Preaward Costs Under IAGS Page 2 of 2
K was necessary co oegm wore, ana proviae a statement tnat an HITA representauve
authorize the LAG activities.
CONTACT FOR FURTHER INFORMATION
Scott McMoran, Chief, Grants Information and Analysis Branch, Grants Administration Division
(202) 260-4392
8/94
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Grants Management Fact Sheet for Agency Leaders: Number 12: Payment Under lAGs Page 1 of 2
Grants Management Fact Sheet for Agency
Leaders: Number 12: Payment Under lAGs
Document ID Number: FS 12, GPI-00-1 Signer: Bruce M. Feldman Signature Date: 02/07/2000 Revision Date:
Category: Fact Sheets, Grants Policy Issuance
GRANTS MANAGEMENT FACT SHEETS FOR
AGENCY LEADERS
NUMBER 12: PAYMENTS UNDER TAGS
Project officers often do not timely approve Interagency
Agreement invoices because they do not have adequate
information to determine whether progress is commensurate
with costs incurred or costs are reasonable.
IMPLICATIONS
Project officers' inaction or delayed action makes it
difficult for EPA to cancel or correct payments, where
appropriate.
Project officers may approve payments without adequate
justification.
WHAT ARE GAD AND .FMD DOING.
Financial Management Division sends documentation received
with billings to project officers with the Project Officer
Invoice Approval Form.
Grants Administration Division includes a standard
condition in all lAGs which states clearly the need for
other agencies to submit payment information documenting
the costs covered under each invoice.
WHAT PROGRAM LEADERS SHOULD DO
Assure project officers are aware they should not approve
IAG invoices unless they..have adequate information on
progress and costs incurred to assure costs are reasonable.
Advise project officers who determine they do not have
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Grants Management Fact Sheet for Agency Leaders: Number 12: Payment Under lAGs Page 2 of 2
adequate information, to request additional information
[from the other agency.
Advise project officers that, if another agency does not
provide requested information, to request assistance from
GAD or FMD in obtaining the necessary information. If
timely information is not received, request FMD to suspend
or charge back the payment.
Advise project officers to complete the approved dollar
amount section of the project Officer Invoice Approval
Form.
CONTACT FOR FURTHER INFORMATION
Scott McMoran, Chief, Grants Operations Branch B, (202)
564-5330.
-Jeff Marsala, Cincinnati Financial Management Center,
(513)487-2056.
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Appendix E
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UNfTED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON. D.C. 20460
OFFICE OF THE
CHIEF FINANCIAL OFFICER
SEP 3 0 1998
MEMORANDUM
SUBJECT: I
FROM
TO:
terim Guida;
rforfnanc
Budget Execution under the New Government
Act (GPRA) Architecture at EPA
W.
oiler (273
enior Resource Officials
Senior Budget Officers
Regional Comptrollers
**PLEASE DISTRIBUTE TO APPROPRIATE STAFF*
We are pleased to transmit the Interim Policy, Procedures and Guidance on Budget
Execution for FY 1999 under the new GPRA structure at EPA. We thank you for your many
excellent comments and suggestions on the earlier draft guidance and we have strived to faithfully
incorporate them into this revision. We also appreciate your participation in the training
programs we have presented. We look forward to continuing to work together over the next
several months, as we implement GPRA in our FY 1999 budget execution activities.
Please share this interim guidance with all appropriate staff in your organizations,
including managers and project officers as well as budget and funds control staff. As you review
the document, please let us know if there are any issues or concerns that you believe have not
been adequately addressed or that require further clarification. We anticipate finalizing the
guidance after resolution of some remaining issues. Meanwhile, please use this interim guidance
as you execute the FY 1999 budget.
Recycl«d/Racyclable.> Printed with Vegetable On Based Inks on 100% Recycled Paper (20% Poslconsumer)
-------
If you have questions during your review, you may contact Jessica Brown (202 564-4978)
of the Financial Management Division or Becky Fredericks (202 260-2995) of the Annual
Planning & Budget Division.
Attachment
cc: SalJyanne Harper (2710)
Nikki L. Tinsley, Acting Inspector General (2410)
Beth Craig (3901R)
Betty Bailey (3801R)
David Ziegele (2721)
Nanci Gelb (2732)
Melissa Heist, OIG (2421)
Jack Shipley (2733R)
Ron Bachand (2734R)
Financial Management Officers
A COPY OF THIS POLICY CAN BE REQUESTED FROM THE FINANCE OFFICE.
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Appendix P
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UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C. 20460
20 1998
MEMORANDUM
SUBJECT: Best Practices Guide for Conferences ,
FROM: Elizabeth Craig, Director
Office of "Grants and Deb,
TO:
Betty k-Biiley/Direct
Office of Acquisition Iv
Senior Resource Officials
OFFICE OF
ADMINISTRATION
AND RESOURCES
MANAGEMENT
Office of Acquisition Management /
Attached is a copy of the final "Best Practices Guide for Conferences" dated November
12, 1998. In June 1996, the Grants Customer Relations Council established an intra-agency
workgroup to develop a guidance document for Agency personnel to use in planning, and
assisting others, with conferences. The attached is a result of the workgroup's hard work.
The workgroup's final product takes into consideration all of the comments received
across the Agency. Every office's participation in reviewing and providing recommendations on
the guidance added to its success and is very much appreciated.
Conferences play an important role in fulfilling EPA's mission. This guide will help
Agency staff make correct planning and funding decisions. The guide also provides a listing of
reference materials for the user to consult for additional guidance. The guidance will be posted
on the Agency's Intranet Grants Homepage and Lotus Notes Database in the near future and will
be shared and discussed in future Project Officers training sessions.
The workgroup's hard work and dedication to completing this difficult task is very much
appreciated. They provided a valuable tool for Agency staff to use in addressing conference
concerns. We would like to extend our personal congratulations and thank all of them.
We hope that you will help us in disseminating this information to your organization.
Attachments
cc: Best Practices Guide for Conferences Workgroup
Steve Wilson, OCIR
Jeff Schwartz, Budget
Margherita Pryor, ORD
Jim Drummond, OGC
Judy Vanderhoef, OIG
Ann Carey, OSWER Juanita Smith, OW
Bill Thomson, OPPTS Shirley Leonard, OAR
John Cline, ORD Esther Jones, ORD
Sylvia Horwitz, OGC Elissa Karpf, OIG
Glorida Car, Gulf of Mexico Program
Internet Address (URL) http://www.epa.gov
Recycled/Recyclable Printed with Vegetable Oil Based Inks on Recycled Paper (Minimum 20% Postconsumor>
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BEST PRACTICES GUIDE FOR CONFERENCES
November 12,1998
Prepared by Conference Guidance Workgroup:
Steve Wilson, OCIR, Co-Chair
Ann Carey, OSWER, Co-Chair
Juanita Smith, OW, Co-Chair
Jeff Schwartz, Budget
Bill Thomson, OPPTS
Shirley Leonard, OAR
Margherita Pryor, ORD
John Cline, ORD
Esther Jones, ORD
Jim Drummond, OGC
Sylvia Horwitz, OGC
Elissa Karpf, OIG
Judy Vanderhoef, OIG
Gloria Car, Gulf of Mexico Program
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HOW TO USE THIS GUIDE
This guide is structured to help you first identify the purpose of your conference and whose
conference it is, since this should drive your choice of funding instruments and many of your
subsequent conference decisions. You should use the indicators in Chapter 1 as a starting point
to determine whose conference it is. Once you have decided whose conference it is, you will be
guided to Chapters 2,3, or 4, which will describe the appropriate funding instruments for the
conference and the conference-related funding issues you should consider. Chapter 5 addresses
proper documentation of conferences. Lastly, a list of references by subject matter is attached to
assist you if you need to consult additional references.
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TABLE OF CONTENTS
INTRODUCTION iv
CHAPTER 1: Whose Conference Is It? 1-1
CHAPTER 2: Our Conference 2-1
A. EPA Conference Overview 2-1
B. Funding Instruments 2-1
1. Contracts 2-1
2. Interagency Agreements (lAGs) 2-2
3. Supporting Conferences with In-House Resources 2-3
C. AHowability of Costs Overview 2-3
1. Meals, Snacks and Refreshments 2-3
2. Honoraria 2-4
3. Procurement of Items for Distribution at EPA-Sponsored Conferences 2-4
4. Registration Fees for EPA-Sponsored Conferences 2-4
5. Travel 2-4
6. Printing of Conference Material 2-6
D. Location 2-6
CHAPTERS: Their Conference 3-1
A. Supporting a Conference 3-1
Sponsored by a Nonfederal Entity Overview
B. Funding and Other Support Instruments 3_1
1. Assistance Agreements 3_1
2. Cooperation Authority lAGs Authorized by EPA Program Statute 3-1
3. In-Kind Assistance 3_2
C. AHowability of Costs Overview 3_2
1. Entertainment vs. Education 3_2
2. Meals and Refreshments 3.3
3. Travel 3_3
4. Registration Fees
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D. Use of EPA Logo 3-4
E. Lobbying 3-4
F. Printing of Conference Material 3-4
G. EPA'sUseof Assistance Recipients'Conference 3-4
Proceedings and Reports
H. Free Attendance by EPA Employees 3-4
I. Location 3-4
CHAPTER 4: Jointly Sponsored Conferences 4-1
A. Supporting a Jointly Sponsored Conference Overview 4-1
B. Areas of Concern 4-1
1. Appearance 4-1
2. Augmentation of Appropriated Funds 4-1
3. Lobbying 4-2
C. Instruments Overview 4-2
1. Acquisition 4-2
2. Assistance Agreements 4-2
D. Funding Instruments: Example of Jointly Sponsored Conference 4-3
Using Multiple Instruments
E. AHowability of Costs Overview 4-4
F. Issues Relating to Jointly Sponsored Conferences 4-4
1. Free Attendance for EPA Employees 4-4
2. EPA Property and Services 4-5
3. Social Events 4-5
4. Co-sponsors* Independent Events 4-5
5. Fundraising 4-5
6. Food and Refreshments for EPA Employees 4-5
7. Food and Refreshments for Nonfedcral Attendees 4-6
8. Use of EPA Logo 4-6
9. Printing of Conference Material 4-6
10. Location 4-6
ii
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CHAPTERS: Maintaining Proper Documentation 5-1
REFERENCE LIST R-l
A. Introduction R-l
B. General Acquisition and Assistance Requirements R-l
C. Conference Planning and Site Selection R-2
D. Travel R-2
E. Food R-3
F. Federal Advisory Committee Act Meetings (FACA) R-3
G. Lobbying R-4
in
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INTRODUCTION
Conferences, large and small, play an important role in fulfilling EPA's mission. They can
be an effective way to bring together various groups of people to share information, educate the
public, work with state and local government partners, train employees, and learn from
non-governmental stakeholders. Conferences are also a useful way for nonfederal entities, such
as universities, state and local governmental environmental agencies, and intergovernmental
groups to carry out environmentally related work for which they receive funding from the
Agency. For purposes of this guide, the term "conference" encompasses workshops, seminars,
symposia, conventions, or similar designations for business related gatherings that involve topics
related to EPA's mission of environmental protection.
The range of stakeholders playing integral roles in agency-related activity has grown, as has
the use of conferences to convene various groups for a variety of purposes. As the Agency and
others have expanded the use of conferences, issues have arisen in connection with conference
planning, particularly with funding. The Office of Inspector General (OIG) audited several
conferences and identified a number of recurring problems. As a result, an intra-Agency
workgroup was established to develop a guide for Agency personnel to use in funding, and
assisting others with, conferences of all kinds. The Best Practices Guide for Conferences is the
result of the workgroup's efforts.
The guide begins by asking "Whose conference is it?" By defining the purpose of the
conference, the planner can determine whether it is: (1) "ours," an EPA conference or one that
EPA sponsors with other federal agencies, or (2) "theirs," one held by a nonfederal sponsor .that
EPA supports with financial assistance, or (3) a "jointly sponsored" conference, benefiting both
the Agency and a nonfederal entity. Sometimes, the answer to this question will be obvious and
sometimes you will have choices as to how to answer the question, depending on the topics for
the conference and EPA's role in the conference.
Once the question "Whose conference is it?" has been answered, the guide describes
appropriate acquisition and assistance funding mechanisms available for various types of
conferences. The guide also outlines major funding issues associated with conference support,
such as invitational travel, non-invitational participant travel, meals, conference materials, and
other expenses. It also includes information on when and how registration fees can be collected,
honoraria, and ethical considerations.
The guide is not the last word on conferences. It is not meant to be used as a "how to" guide
for planning conferences. The emphasis of the guide is addressing funding concerns. For most
areas that are addressed, it is just the starting point. There are references to statutes, regulations,
other agency guidance documents, and EPA Ethics Advisories that should be consulted. Agency
personnel in the Office of Acquisition Management (OAM), the Grants Administration Division
(GAD), the Office of the Chief Financial Officer, and the Office of General Counsel's (OGC)
Finance and Operations Law Office or Regional Counsel should also be consulted as needed.
iv
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CHAPTER 1: WHOSE CONFERENCE IS IT?
Any conference that EPA supports'or holds must be related to its environmental mission.
Before you begin the planning process, you should be able to justify the need and identify the
statutory authority for the conference, and confirm that funds and, if appropriate, EPA staff
resources are available. The planning process begins with determining the answer to the
question, "Whose conference is it?" A conference that is intended primarily to help the Agency
carry out its governmental functions is "ours" and is discussed in Chapter 2. A conference
intended primarily for the benefit of a nonfederal entity is "theirs" and is discussed in Chapter 3.
Finally, when the Agency and a nonfederal entity share control of the conference, it is "jointly
sponsored" and is discussed in Chapter 4. The two key issues to consider are: (1) purpose of
the conference, and (2) control of the planning and the agenda.
(1) Purpose of the Conference. The purpose of a conference is a decisive factor. The more the
conference is needed by EPA, the more likely it is ours. For example, if the principal purpose of
the conference is to provide EPA with a report, data, recommendations, or other information that
we will use to develop or directly incorporate into EPA regulations or guidance documents, it is
ours. Meetings and conferences conducted under the Federal Advisory Committee Act (FACA)
are ours.
On the other hand, if the primary purpose is to help a nonfederal entity achieve its objectives,
the conference is theirs. For example, a conference to facilitate nonfederal research is theirs,
even if EPA provides the meeting space. When nonfederal entities meet to share information on
environmental or scientific issues, the conference is also theirs, even if EPA provides financial
assistance. Conferences sponsored by associations of state or tribal officials to discuss EPA
programs implemented by these entities as co-regulators or as partners in a coordinated national
effort are theirs as well in certain situations. However, if EPA is in fact a convener and a
motivator for the conference, then the conference may be jointly sponsored rather than theirs.
Finally, if the conference assists the Agency and a nonfederal entity to accomplish mutual
objectives, it may be jointly sponsored. For instance, if the Agency and nonfederal entities share
an interest in promoting environmental awareness, such as recycling initiatives, a jointly
sponsored conference may be appropriate. It may also be appropriate when EPA, state, and local
government officials meet to share information about environmental problems.
(2) Control of the Planning and Agenda. The more control EPA or other federal agencies
exercise over the agenda and selection of speakers, the more likely the conference is ours. For
example, if conference scheduling is driven by the need to meet a regulation production deadline,
the conference is ours. Similarly, if the Agency has control over speakers, attendees, and
logistics, the conference is ours. However, if a nonfederal entity controls planning and agenda
decisions, even with input from EPA, the conference is theirs. Finally, if the Agency shares
control of these types of decisions, the conference may be jointly sponsored.
The following factors will provide you with more information to help you make the proper
determination of whose conference it is.
1-1
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DECISION INDICATORS: OURS
The purpose of the conference is to:
discuss, evaluate, or plan a specific EPA activity or program
advise EPA on its operations (e.g., FACA)
solicit public or stakeholder input to official EPA actions or policy
develop official EPA positions on science or other policies
train EPA staff or other direct implementers of EPA regulations
generate information to be incorporated directly into official EPA positions, such as policy,
regulations, or guidance
propose, announce, or explain EPA actions
disseminate mandated information
«EPA expects to control:
the agenda
the selection of speakers, panelists, and/or attendees
the duration, date, and location of the meeting
DECISION INDICATORS: THEIRS
The purpose of the conference is to:
- discuss, evaluate, or plan non-EPA or public/private initiatives to improve the environment
share information on environmental or scientific issues
support or stimulate public awareness of general environmental issues
facilitate informed public dialogue on environmental and policy questions
enhance management of non-EPA environmental programs
hold discussions by states and tribal associations of delegated environmental programs
"The nonfederal entity expects to control:
the agenda
the selection of speakers, panelists, and/or attendees
the duration, dates, and location of the meeting
DECISION INDICATORS: JOINTLY SPONSORED
The purpose of the conference is for federal and nonfederal entities to:
advance a mutual interest
develop products for common goal(s)
The co-sponsors include both federal and nonfederal entities and conference costs are shared
"Decisions are shared among the panics to the conference, including control of:
agenda planning
speaker selection
location selection
conference logistics
On the following page, a summary chart provides a side-by-side overview of the indicators of
purpose and control to assist you in answering the question "Whose Conference is it?"
1-2
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WHOSE CONFERENCE IS IT: OVERVIEW OF INDICATORS
OURS (Chapter 2)
THEIRS (Chapter 3)
JOINT (Chapter 4)
PURPOSE
Discuss, evaluate, or
plan a specific EPA
activity or program
Advise EPA on hs
operations (e.g., FACA)
Receive public or
stakeholder input to
official actions or policy
Develop EPA science
and other policies
Training for EPA staff
or other implementers
of EPA regulations
Generate information to
be used in official EPA
products, e.g., guidance,
regulations, or policies
Propose, announce, or
explain EPA actions to
other government
agencies, the public, or
stakeholders
Disseminate mandated
information
Discuss, evaluate, or plan
a non-EPA initiative to
improve the environment
Share information on
environmental or related
scientific issues
Support or stimulate
public awareness of
general environmental
issues.
Facilitate informed public
dialogue on
environmental and policy
issues
Enhance management of
non-EPA/nonfederal
environmental programs
Hold discussions by
states and tribal
associations of delegated
environmental programs.
Advance a mutual
interest by serving
both EPA's mission
and the substantive
interests of the
nonfederal co-
sponsor(s)
Develop products for
common goals
CONTROL
EPA control of the
agenda
EPA control over
selection of speakers,
panelists, and/or
attendees
EPA control over
logistics, such as
duration, dates, and
location
Non-EPA control of the
agenda
Non-EPA control over
selection of speakers,
panelists, and/or
attendees
Non-EPA control over
logistics, such as
duration, dates, and
location
Shared control of the
agenda
Shared selection of
speakers, panelists,
and/or attendees
Shared responsibility
for logistical
planning and
decisions
If you have determined that your conference is EPA-sponsored, proceed to Chapter 2. If you
have determined that it is theirs, proceed to Chapter 3. If the conference is going to be jointly
sponsored, proceed to Chapter 4. If you are still unsure after reviewing these factors, you should
contact OGC's Finance and Operations Law Office or Regional Counsel for guidance
1-3
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CHAPTER 2: OUR CONFERENCE
A. EPA Conference Overview. Once you have reviewed Chapter I and decide that the
conference is ours, there are three main ways that you can financially support it: (1) award a
contract or issue a work assignment under an existing contract, if tasks are covered within the
statement of work; (2) enter into an Interagency Agreement (IAG) to obtain services from
another federal agency; or (3) conduct the conference using Agency .personnel. All of these
methods are appropriate ways to acquire services for our direct benefit and use. You cannot
properly use a grant or cooperative agreement to support "our" conference. You also need to
be aware of limitations relating to travel payments for conferences. This chapter lists and briefly
describes instruments that can be used to support an EPA-sponsored conference.
B. Funding Instruments.
I. Contracts may be used to fund "components" of the conference, such as space and
supplies, or they may be used to fund the whole conference, hiring a contractor to make most or
all of the arrangements. There are at least four commonly used contracting methods. OAM can
provide you with a helpful guide for conference contracting entitled, "Your Preparation Guide
for Conferences/Meetings/Training." It focuses on small purchases, but is also useful for other
types of contracts. It includes copies of key policies and instructions on preparing a purchase
request. Since the guide was written in May 1995, the small purchase limit has changed. It is
currently $100,000.
(a) Small items and services less than $2,500, sometimes called micro-purchases, may
often be purchased with a government credit card. Micro-purchases might include, for
example, meeting room rental, supplies, and equipment rental. Consult a warranted bankcard
holder for details on the use of such cards.
(b) More extensive services, up to a total of $100,000, may be acquired through simplified
acquisition procedures, formerly known as "small purchases." You must be careful to
specify exactly what you need, as well as the basis on which bids will be reviewed. For
additional guidance on simplified acquisitions, consult the Contract Management Manual,
Chapter 2, and OAM's guidance, "Simplified Acquisitions Made Easy," dated April 1998.
(c) Some types of support can be obtained using a conference support contract. A
conference support contractor has little direct substantive interest in the conference and is
simply in the business of providing logistical support services. Conference support contracts
are often written to provide recurring logistical support for an Office. Individual conferences
also can be supported by issuing Work Assignments or Delivery Orders under a broader
support contract, provided such support is within the scope of the contract.
(d) Some conferences are funded under contracts with a contractor who has a direct interest
in the conference as an incidental task under a larger, broader contract's scope of work.
For example, a contractor tasked to determine the current state of the art and recommend
improvements in an area of chemical analytical techniques may need to convene a conference
2-1
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Chapter 2: Our Conference (continued]
to assist in that determination, as an incidental part of doing the job. The Agency is the
ultimate beneficiary, but the contractor is directly responsible for managing the conference.
Caution: In planning an EPA-sponsored conference, there may be situations where you need to
exercise care in determining what, if any, contractor support may be appropriate. Some Agency
conferences include candid discussions of sensitive budget, acquisition, and other planning
information that should be safeguarded. Special controls should always be in place to ensure that
contractors do not have inappropriate access to privileged and sensitive information (e.g.,
Confidential Business Information or procurement sensitive information). You should avoid
situations where contractors may have access to information that would give them an unfair
competitive advantage, or create an appearance of a conflict of interest. At any Agency
conference, you should always identify contractors who are present and ensure that contractor
support staff wear badges and identify themselves.
2. Interagency Agreements (IAGs). There are two types of lAGs: Economy Act LAGs and
Cooperation Authority I AGs authorized by EPA program statutes. (Note: If EPA provides
funds to another agency under an IAG, the IAG is subject to that agency's requirements, unless a
specific term and condition imposes EPA's requirements.)
(a) You may want to use another federal agency to help with putting on your conference. For
instance, a General Services Administration contract providing meeting logistics support
could be used. The proper way to do this is through an Economy Act IAG. Economy Act
I AGs are always intended to "acquire" services or property from another federal agency for
the direct use of EPA. Therefore, it is improper for the other agency to award a grant or
cooperative agreement to fulfill EPA's requirements. To use the Economy Act, both federal
agencies must be responsible for conducting the proposed activities and authorized to use
their appropriations for the work. The Economy Act specifies that the servicing agency must
recover its expenses and it cannot cost share. As of 1996, EPA's Grants Administration
Division (GAD) is required to prepare a "Determination and Finding" in support of an
Economy Act IAG, which states that the IAG is not being used to avoid competitive
contracting. You may be asked to provide information to help prepare this. Final approval of
the Determination and Finding rests with OAM. For additional guidance, see memorandum
from GAD Director to IAG Project Officers, "Interagency Agreement Decision
Memorandum Guidance, Pre-award IAG Activities, and Subcontractor Selection," dated
Sept. 30, 1996.
(b) Cooperation Authority lAGs authorized by EPA Program Statutes involve mutual
cooperation and investment of resources between the cooperating federal agencies with an
overlapping mission and interest in the project. For example, both agencies could contribute
resources to a conference, whether in the form of salaries, equipment, travel, or contract
services. GAD maintains a list of program statutes authorizing such cooperation. A list of
the statutory and related authorities which authorize the Agency to enter into I AGs is
provided as Attachment 4 to the previously referenced Sept. 30, 1996, memorandum from
2-2
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Chapter 2: Our Conference (continued]
GAD Director to IAG Project Officers.
3. Supporting Conferences with la-House Resources. EPA can also organize and conduct
conferences using only its own staff. In addition to planning the substance of the conference,
staff may cany out logistical arrangements such as identifying hotels and meeting space, taking
minutes, and registering attendees.
C. Allowability of Costs Overview. Only a contracting officer has the authority to obligate
government funds under a contract In planning a conference, you must not make financial
commitments to hotels or other vendors unless you have the authority to do so. Anyone who
undertakes to commit the government without authority risks being held personally liable by the
vendor for payment and may be subject to EPA disciplinary action. In working with a hotel to
reserve space, you must make it clear that you do not have the authority to sign a contract, but
are merely reserving space. Any short-term conference meeting space you obtain in the District
of Columbia must be procured under 41 CFR 101-17.101. In addition, direct procurement or
purchase of lodging facilities in the District of Columbia, without specific authorization and
appropriation by Congress, is prohibited. See 40 U.S.C. 34.
Both EPA employees and contractors are responsible for assuring that costs for conference
activities are allowable and reasonable. Agency staff responsibilities include performing a
careful review of the proposed conference activities, the IAG or contract that funds the
conference, work assignments/amendments, and invoices. These reviews are conducted to
identify costs that are unreasonable and unallowable, or need further explanation or
documentation. All reviews should be documented. Federal laws and regulations provide the
basis for authorizing and paying for costs. Necessary and reasonable costs are for work that
benefits the project and are within the project's scope. For further guidance, we recommend you
consult the FAR Part 31, "Contract Cost Principles and Procedures."
1. Meals, Snacks, and Refreshments. For additional guidance in this area, we recommend
you consult OAM Procurement Policy Notice 94-10, "Contracting for Meals and Refreshments
for Government Employees" and the EPA Travel Manual, Chapter 5.
(a) Meals. Appropriated funds may not be used to pay subsistence or provide food to
government employees at their official duty stations or when not on official travel status. See
the EPA Travel Manual, Chapter 5.1.b.(3).
(b) Snacks and Refreshments. Refreshments, such as snacks, alcoholic beverages and
coffee, are not considered necessary expenses and may not be included as part of the
conference room fee, nor can mandatory registration fees be used to pay these expenses.
However, conference participants can "pass the hat" for voluntary contributions for coffee
and snack expenses.
(c) Exceptions Under Government Employee Training Act, 5 U.S.C. 4101. Under this
2-3
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Chapter 2: Our Conference (continued]
Act, EPA can provide meals, snacks, and refreshments to its employees if necessary to
achieve the objectives of the training program, and may furnish meals to non-government
speakers as an expense of conducting the training. For additional guidance, consult OC
Policy Notice 92-07, page 3, "Procuring Subsistence for Training/Conferences/Meetings''
and the EPA Travel Manual, Chapter 5.5.a. and b.
2. Honoraria. Generally, Agency appropriated funds may not be used to procure personal
gifts to be given to nonfederal speakers.
(a) Contractual speaker fees, whether or not called "honoraria," are permissible.
(b) If the speaker is a federal employee, the speaker is prohibited from receiving
compensation for speaking related to his or her official duties. However, federal speakers
may receive a modest nonmonetary award (e.g., plaques or mugs) to recognize an
achievement, under the Government Employee Incentive Award Act For more information
and exceptions see the Standards of Ethical Conduct for Employees of the Executive Branch
(5 CFR 2635.201-205), August, 1992, and Office of Personnel Management Regulations (5
CFR Part 451.)
3. Procurement of Items for Distribution at EPA-Sponsored Conferences. Agency
policy precludes the purchase of certain items, such as tote bags, drinking containers, and
wearing apparel, for distribution to the general public and EPA employees who merely attend an
Agency-sponsored conference. Other items with low cost and limited utility (e.g., bumper
stickers, buttons, pens and pencils) may be distributed widely at Agency-sponsored conferences,
provided the items convey an appropriate environmental message. See O AM Procurement
Policy Notice 95-01, "Procurement of Items for EPA Sponsored Commemorations and Events."
4. Registration Fees for EPA-Sponsored Conferences. Registration fees are payments
collected by EPA or its contractor from private and other public participants who are attending
an EPA-sponsored conference, and must be deposited in the Treasury of the United States,
unless the Agency has specific statutory authority to treat such fees differently. See 31 U.S.C.
3302(b). EPA appropriation laws do not include general authority to accept donations. Agency
policy states that organizations planning conferences and meetings should program and budget
for the administrative costs of these conferences and meetings and avoid establishing registration
fees, if at all possible.
Where it is necessary to establish registration fees, only expenses such as the costs of
necessary supplies and materials, printing, rental of facilities and equipment, and other items will
be included. Additionally, you can only charge a fee that will equal the actual costs of these
materials. Mandatory registration fees should not include the cost of meals and unallowable
items, such as entertainment, coffee, snacks, cocktails and other similar items of a refreshment
nature. However, any fees collected must be deposited in the Treasury. See the EPA Travel
Manual.
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Chapter 2: Our Conference (continued}
5. Travel There are strict rules governing travel expenses incurred for EPA-sponsored
conferences. (Note: The rules governing travel for conferences and meetings that the Agency
conducts, and those carried out by recipients under grants and cooperative agreements, are
significantly different In addition, travel rules differ for federal and nonfederal participants and
attendees.)
(a) Travel for Federal Employees. The Agency's appropriation allocates specific amounts
to finance necessary personnel expenses, including travel. These accounts are separate from
other accounts that fund contracts, grants, and other "extramural" operations of the Agency.
Therefore, a federal employee's travel expenses cannot be funded by an organization using
EPA extramural funds for that conference. Travel costs for EPA staff to participate in a
conference are covered as personnel expenses and may include registration fees as
appropriate. Staff participation is authorized for conferences relating to matters that would
improve the conduct, supervision, or management of Agency functions or activities. Agency
policy requires management to ensure that attendance at conferences "be authorized only to
the extent that it will provide direct benefit in achieving objectives related to EPA's mission."
Cost effectiveness in achieving our mission should be our basic guide. See the EPA Travel
Manual, Chapter 3.16.(a), (b) and (c). In some cases, EPA may choose to cover travel and
subsistence expenses for other federal employees to participate in an EPA conference,
assuming the other federal employee's need to travel is directly attributable to activities
associated with the conference. This is not invitational travel, under 5 U.S.C. 5703. The
Agency can either issue an EPA travel order directly to the employee or can reimburse the
employee's agency through an IAG. For additional guidance, see memorandum from GAD
Director to EPA IAG Project Officers, dated Sept. 30, 1996.
When the conference is within 50 miles of the employee's duty station, the general rule is
that only such out of pocket expenses as POV mileage, parking fees, taxi, or subway fares
can be reimbursed. Waivers may be granted for EPA national conferences within the 50-mile
radius in certain limited circumstances. See the EPA Travel Manual, Chapter 5.5.
(b) Travel for Nonfederal Participants and Attendees. EPA may pay for travel and
subsistence expenses for nonfederal conference participants under invitational travel orders
when the individual performs a direct service for the Agency (e.g., facilitator, speaker,
panelist, or FACA member). Agency travel funds used for invitational travel orders are
charged against the inviting office's travel ceiling budget. Individuals receiving invitational
travel orders must follow federal travel regulations, except they cannot receive travel
advances. See 5 U.S.C. 5703 and the EPA Travel Manual, Chapter 3. The Agency cannot
use invitational travel authority to enable nonfederal personnel to merely attend conferences
that the Agency sponsors. Generally, appropriated funds cannot be used to pay for travel,
transportation, and subsistence expenses for nonfederal attendees unless such payments are
specifically authorized by law. See 31 U.S.C. 1345.
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Chapter 2: Our Conference (continued)
If the Agency pays travel for FACA members, it must be through invitational travel
orders because FACA members are providing a service to the Agency with their advice and
consultation. See 5 U.S.C. App. 2, Section 7 (dXIXB) and the EPA Travel Manual, Chapter
3.3.
(c) Contractors. A contract, including a purchase order, can include travel costs for an
individual performing services within the scope of the contract, such as providing logistical
services, training, peer review, or presentations. However, you must not violate the Agency's
policies prohibiting "directed subcontracting" by specifying to the contractor whom to hire.
See OAM Procurement Policy Notice 97-01, "Required Practices Concerning Subcontracts."
A contract cannot be used to procure travel for nonfederal individuals who merely attend the
conference. See OGC Memorandum, dated Sept 22,1993, "Payment of Travel Expenses of
Non-Federal Participants at EPA Meetings."
(d) Authorization for Conference Travel. Travel to EPA sponsored, co-sponsored, or
non-EPA sponsored conferences by 30 or more EPA employees must be authorized by the
Assistant Administrators/Regional Administrators. This includes invitational travelers whose
travel expenses are being paid by EPA. See the EPA Travel Manual, Chapter 3.16.(a), (b)
and (c).
6. Printing of Conference Material. EPA will, as a matter of Agency policy, follow
Government Printing Office (GPO) procedures. EPA's Printing Officer acts as the Agency's
central management office and has responsibility for controlling EPA printing. Any questions
regarding whether a particular printing need falls within an exception to obtaining printing
services through GPO should be directed to the EPA Printing Officer. Circumvention of EPA
policy prohibiting the use of commercial printing services to print government documents,
without authorization from GPO, is a serious matter.
D. Location. Government-owned or government provided conference facilities should be used
to the maximum extent possible. If there is no space available in the Agency, managers should
contact the Facilities Office, which will contact GSA to determine if suitable government-owned
facilities are available in the desired area. The use of government-owned facilities versus
commercial facilities will be based on Agency need and overall cost of the conference. All
Assistant Administrators/Regional Administrators and senior managers are responsible for
ensuring that meeting sites are, to the extent feasible, held in or near EPA regional cities or major
laboratory facilities. However, there may be occasions where it is advantageous to select a site
outside the local area in order to focus on issues without local distractions. AH EPA-sponsored
conferences, meetings, or training seminars being held in hotels or motels must comply with the
Hotel and Motel Fire Safety Act of 1990. A list of hotels and motels that comply with the Act
can be found in the monthly publication of the Federal Travel Directory issued by GSA See
the EPA Travel Manual, Chapter 4.2.(d) and for additional information, see Federal Travel
Regulations, 41CFR Parts 301-16 and 301-17.
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When EPA holds a conference involving travel by 30 or more EPA employees or other
travelers whose expenses are being paid by EPA, a cost comparison justifying the conference
location must be prepared. See the EPA Travel Manual, Chapter 3.16.(a), (b) and (c).
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CHAPTERS: THEIR CONFERENCE
A. Supporting a Conference Sponsored by a Nonfederal Entity - Overview. If you have
reviewed Chapter 1 and decided that the conference is "theirs," EPA can provide financial
support in the form of grants, cooperative agreements, and Cooperation Authority Interagency
Agreements authorized by EPA program statute, provided EPA has the statutory authority. For
general guidance, see EPA Order 5700.1, "Policy for Distinguishing Between Assistance and
Acquisition." The Agency encourages fair.and open competition in the award of discretionary
assistance agreements in accordance with the Federal Grant and Cooperative Agreement Act of
1977. For additional guidance, see Grants Management Fact Sheet No. 9, "Competition for
Assistance Agreements."
B. Funding and Other Support Instruments.
1. Assistance Agreements
(a) Grants may be used to support the conference if all of the following tests are met and
documented:
(i) it is to accomplish a public purpose of support or stimulation, not for our direct use or
benefit (see Chapter 1 of this guide);
(ii) it is for an eligible nonfederal entity (most statutes exclude profit making companies);
(iii) the principal purpose is to transfer money or other things of value;
(iv) it is authorized by law (you must cite a statutory authority for using an assistance
agreement to support the conference); and finally
(v) EPA is not substantially involved in the work and we do little more than watch for
progress and problems.
(b) Cooperative Agreements are essentially the same as grants and may be used if the
conference meets tests (i)-(iv) above. The difference is that cooperative agreements must be
used when EPA anticipates "substantial involvement" in the assistance relationship.
Cooperative agreements, like grants, may not be used when the purpose of the agreement is
to acquire services, information, or "stakeholder input" for the direct use and benefit of the
government. See EPA Order 5700.1.
(c) Assistance Agreements (grants and cooperative agreements) may also be used to support a
conference of state or tribal officials implementing a federal effort under a formal delegation or
as partners with EPA in a coordinated, national effort. Although the states or tribes provide
information or recommendations to EPA, the principal purpose of the assistance is to support the
participation of states or tribes in the development of environmental policies and programs that
they implement. For detailed guidance, see EPA Order 5700.1, pages 8-9. (These kind of
conferences may also be Jointly Sponsored. See Chapter 4.)
2. Cooperation Authority Interagency Agreements Authorized by EPA Program
Statute involve mutual cooperation and investment of resources between the cooperating federal
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Chapters: Their Conference (continued}
agencies with an overlapping mission and interest in the project For example, both agencies
could contribute resources and fund the conference arrangements through a grant, cooperative
agreement, or contract awarded by one of the agencies. GAD maintains a list of program statutes
that authorize such cooperation. EPA cannot use an LAG to provide funds to another agency to
award a grant that EPA cannot award itself. For additional guidance, consult memorandum from
GAD Director to LAG Project Officers," LAG Decision Memorandum Guidance, Pre-award
Activities, and Subcontractor Selection," dated Sept. 30,1996. (Note: If EPA provides funds to
another agency under an LAG, the IAG is subject to that agency's requirements, unless a specific
term and condition imposes EPA's requirements.)
3. In-Kind Assistance. The Agency may provide support other than direct monetary
assistance. For example, we could devote EPA staff time, space, copying equipment and
supplies. We could also agree to prepare papers for submission to a conference, provide EPA
speakers, or make facilities available. In addition, the services of an EPA contractor, such as a
logistics contractor or a meeting support contractor, can be provided as a form of in-kind
assistance. A determination must be made that providing contractual services instead of funds is
more economical. The cost of the contractual services must be charged to the grants object class
and should be documented in the assistance agreement if possible.
C. AHowability of Costs Overview. Many of the constraints associated with funding an
EPA-sponsored conference do not apply to funding nonfederal entities' conferences through
federal assistance agreements. However, grant costs must comply with applicable assistance
regulations. See 40 CFR Parts 30 and 31.
Both EPA employees and assistance recipients are responsible for assuring that costs for
conference activities are allowable, reasonable, and allocable to the grant. Agency staff
responsibilities include performing a careful review of proposed conference activities and the
assistance agreement that funds the conference. Reviews are conducted to identify costs that are
unreasonable and unallowable or need further explanation or documentation. AH reviews should
be documented. Also, assistance recipients must comply with OMB Circular A-122, "Cost
Principles for Non-Profit Organizations," OMB Circular A-21, "Cost Principles for Educational
Institutions," or OMB Circular A-87, "Cost Principles for State and Local Governments." See
also Part 31 of the FAR, which provides cost principles for assistance recipients that are profit
organizations.
1. Entertainment vs. Education. As a general rule, assistance funds may not be used for
entertainment costs. Entertainment, as defined in the General Accounting Office's Principles of
Federal Appropriations Law. Volume I, Chapter 4, includes "a source of amusement, a diverting
performance, especially a public performance, such as a concert, drama, or the like." Providing
technical policy, or program information to educate the public at a conference is allowable. The
distinction between unallowable entertainment and allowable education costs is not always clear.
What the recipient sees as an interesting and informative presentation, the general public or
auditors may see as entertainment. The recipient should adequately document the purpose of
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Chapter 3: Their Conference (continued}
expenses that may be perceived as entertainment See OMB Circulars A-21, A-87, and A-122
for unallowable costs.
2. Meals and Refreshments. The costs of meals and refreshments may be charged to
assistance agreements only to the extent that they are allowable under the OMB Circulars
A-21, A-87, and A-122. Generally, the cost of meals that are essential to the business of a
conference because they are accompanied by presentations or panel discussions are not likely to
be questioned. Also, refreshments at breaks are generally allowable, provided the costs are
reasonable.
3. Travel The rules governing travel for conferences and meetings that the Agency
conducts, and those carried out by recipients under grants and cooperative agreements, are
significantly different.
(a) Nonfederal Attendees. Assistance funds can be used to defray transportation and
subsistence expenses for nonfederal attendees in conferences that the recipient carries out.
The decision as to who receives transportation and subsistence expenses is the recipient's, not
EPA's, and EPA should avoid even the appearance of directing the recipient to provide travel
to specific individuals.
(b) Federal Employee Travel. Agency employees may attend recipient conferences as part
of their official duties. However, assistance funds cannot be used to fund travel for federal
employees because this would circumvent limits on government travel ceiling. See Ethics
Advisory 92-26, "Revised Rule on Acceptance of Travel Expenses," dated Dec. 24,1992.
EPA may use its own travel funds to enable a federal employee to attend a conference
relating to matters that would improve the conduct, supervision, or management of Agency
functions or activities. A nonfederal organization can use its own funds (not part of a match
for a grant or cooperative agreement) to pay for EPA employee travel provided the
appropriate Ethics Advisories are followed. You should consult an Agency Ethics Advisor
for guidance. See also Ethics Advisory 92-26, Ethics Advisory 97-05, "Addendum to EPA
Ethics Advisory 92-26, Accepting Travel Expenses," dated March 13,1997, and Ethics
Advisory 94-17, "Providing Speakers at Conferences, Seminars, and Similar Events," dated
April 13,1995, and Standards of Ethical Conduct for Employees of the Executive Branch (5
CFR2635).
(c) 30 or More Federal Attendees. Travel to any conference, including conferences
sponsored by recipients, involving travel by 30 or more EPA employees must be authorized
by the Assistant Administrators/ Regional Administrators. See the EPA Travel Manual,
Chapter 3.16.(a), (b) and (c). The number of employees attending the conference (whether
they pay registration fees or not) must not create the appearance that the conference is being
conducted for EPA's direct use and benefit.
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Chapter3: Their Conference (continued]
4. Registration Fees. Registration fees are payments collected by the assistance recipient
from attendees to a conference. Project officers managing assistance agreements that support
conferences should always find out in advance whether registration fees will be collected, and if
so, how those fees will be used. Project officers should address the definition and disposition of
program income in a term and condition of the assistance agreement. See 40 CFR Parts 30.24
and 31.25. Registration fees are considered program income, under the grant regulations, if the
activity generating the fee is within the scope of work and is funded by the assistance agreement.
In such cases, registration fees, as program income, must be accounted for and used to defray
allowable costs under the agreement. Fees for events conducted independently of the assistance
agreements, which are not financed under the assistance agreement, are not subject to program
income rules.
D. Use of EPA Logo. Use of the Agency's logo in connection with promotion or sale of non-
government produced goods or services is forbidden. See EPA Order 1015.2A, "EPA Seal and
Agency Identifier." Promotional material for conferences conducted under grants and
cooperative agreements may acknowledge that the conference receives financial support from the
Agency under an assistance agreement, but cannot use the logo on a conference brochure in a
manner that implies that the conference is being conducted by EPA. These conferences should be
described as the recipient's event, not EPA's.
E. Lobbying. Federally funded conference activities cannot include lobbying. See OMB
Circulars A-21, A-87, and A-122.
F. Printing of Conference Material. An assistance recipient conducting a conference may use
its grant funds for printing conference material (e.g., brochures/proceedings/reports). EPA may
also print conference materials as a form of in-kind assistance provided the Agency follows GPO
printing procedures.
G. EPA's Use of Assistance Recipients' Conference Proceedings and Reports. The Agency
has the irrevocable and non-exclusive right to reproduce and publish, use, or authorize others to
use conference proceedings and reports for federal government purposes. However, EPA's use
of a conference proceeding or report must be incidental to the principal purpose of the assistance
agreement. See EPA Order 5700.1 and 40 CFR Parts 30.36 and 31.34.
H. Free Attendance by EPA Employees. Agency employees may attend recipient conferences
as part of their official duties. However, the number of employees attending the conference
without paying registration fees must not create the appearance that the conference is being
conducted for EPA's direct use and benefit.
I. Location. All conferences, meetings or training seminars EPA sponsors or funds, in whole
or in part, which are held in hotels or motels must comply with the Hotel and Motel Fire Safety
Act of 1990. This applies to the government of the District of Columbia only when it expends
federal funds for a conference and to non-federal entities when government funds are provided
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Chapter 3: Their Conference (continued]
for the conference. A list of hotels and motels that comply with the Act can be found in the
monthly publication of the Federal Travel Directory issued by GSA, See the EPA Travel
Manual, Chapter 4.2.(d) and Federal Travel Regulations, 41CFR Parts 301-16 and 301-17.
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CHAPTER 4: JOINTLY SPONSORED CONFERENCES
A. Supporting a Jointly Sponsored Conference Overview. "Co-sponsorship" occurs when
EPA and a nonfederal entity share a mutual interest in the subject matter and jointly develop a
conference related to EPA's mission. The co-sponsors must have a substantial interest in the
subject matter of the conference although their individual goals may be different. After you have
reviewed Chapter 1 and decide that the conference may be "jointly sponsored," you should also
consult EPA Ethics Advisory 96-15, "Guidance on Co-sponsoring Conferences," which covers
restrictions on jointly sponsored conferences. In order to avoid any misunderstandings when you
hold a jointly sponsored conference, it is important that EPA have an advance written agreement
with its co-sponsor(s) describing the intended roles and responsibilities of each co-sponsor.
B. Areas of Concern.
1. Appearance. EPA may actively seek out prospective co-sponsors. Whether EPA is
actively seeking or has been approached with a co-sponsorship proposal, it is important to avoid:
(a) Appearance of coercion, that is, creating the reasonable impression that EPA is coercing
or being coerced by an outside entity to become a co-sponsor.
(b) Appearance of favoritism. To avoid creating the appearance that EPA is favoring certain
entities, we should, where practicable, inform all similarly situated nonfederal entities of the
opportunity for co-sponsorship. We should be able to explain why we chose a particular co-
sponsor over another.
(c) Appearance of EPA endorsement of the policies, activities, or products of the co-sponsor.
Co-sponsorship does not imply the Agency's endorsement of the co-sponsor's general
policies, activities or products, and event-related materials. Nonfederal sponsors must agree
to clear all promotional materials for the event with the Agency.
(d) Appearance of improper influence on EPA decisions. When seeking to co-sponsor a
conference with an entity that seeks some official action by EPA, is regulated by EPA, or
seeks EPA funding, you should consult your Ethics Advisor.
2. Augmentation of Appropriated Funds.
(a) No "funds only" Co-sponsorships. Co-sponsorships improperly augment EPA
appropriations when the nonfederal entity contributes only funds, logistical services, or other
material support, but does not actively participate in developing the program. In that case, it
is not really a jointly sponsored conference, but "our" conference for which we have received
outside funds. For the same reason, co-sponsors must have a demonstrable substantive
interest in the subject matter of the event.
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Chapter 4: Joint Conference (continued)
(b) Events Solely for Government Employees. To avoid improper augmentation of
appropriations, EPA should not co-sponsor events which will be attended only by federal
employees.
(c) Registration Fees. Generally, registration fees collected by EPA, or its contractors,
must be deposited in the Treasury as miscellaneous receipts, as required by 31 U.S.C. 3302.
If authorized by EPA, an assistance recipient may retain and use conference fees as "program
income." (See Chapter 3.) A co-sponsor, who does not receive assistance, may also collect
fees to cover its share of expenses (e.g., expenses a co-sponsor, rather than EPA, is obligated
to pay if there is a shortfall in fees). To avoid misunderstandings, you should have an
advanced written agreement on who collects fees and their use. For additional guidance,
consult Ethics Advisory 96-15.
3. Lobbying. Since appropriated funds are being used to support EPA co-sponsored
conferences, the Anti-Lobbying Act of 1919 and any government-wide lobbying restriction
contained in an Appropriation Act is applicable. Although information regarding the substance
of pending legislation can be a part of a conference agenda, the conference cannot be a forum for
encouraging a "grassroots" lobbying campaign to influence Congress. For additional guidance,
see memorandum from OGC, "Appropriation Act Lobbying Restrictions," dated July 9, 1997.
C. Instruments Overview. For jointly sponsored conferences, acquisition instruments, as
discussed in Chapter 2, or cooperative agreements, as discussed in Chapter 3, may be used.
Choice of instruments, or use of more than one instrument, should be carefully considered in
order to ensure that EPA's costs, as well as an assistance recipient/co-sponsor's costs, are
allowable under the chosen instrument. See Section D of this chapter for an example of a jointly
sponsored conference involving both acquisition and assistance instruments, and Section E
regarding allowability of costs.
1. Acquisition. EPA may undertake its responsibilities as a co-sponsor of a conference with
contractual and other support discussed in Chapter 2 of this guide. See also OAM's guide, "Your
Preparation Guide for Conferences/Meetings/Training."
2. Assistance Agreements may be used to support the co-sponsor's efforts in connection
with the conference as long as the financial assistance is used to support a public purpose rather
than for EPA's direct use or benefit (examples of direct use or benefit are to assist in
development of Agency regulations or guidance, evaluate EPA programs, or discuss the
Agency's positions with stakeholders). Jointly sponsored conferences require the involvement
of the Agency. Therefore, cooperative agreements rather than grants should be used to fund
these conferences, and the program's substantial involvement would be included under the
"terms and conditions" of the assistance agreement.
Even under a cooperative agreement, the Agency's substantial involvement must avoid the
appearance of circumventing the invitational travel restrictions. See the Standards of Ethical
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Chapter 4: Joint Conference {continued)
Conduct for Employees of the Executive Branch (5 CFR 2635) and also Chapters 2 and 3 of this
guide for details. If assistance funds are used to pay nonfederal travel expenses, the decision as
to who receives transportation and subsistence expenses is the recipient's, not EPA's. The
Agency should avoid even the appearance of directing the recipient to provide travel to specific
individuals. See Chapter 3 of this guide for details.
D. Funding Instruments: Hypothetical Example of a Jointly Sponsored Conference Using
Multiple Instruments. EPA, an association of state governmental agencies, a tribal
organization, and a civil rights non-governmental organization (NGO). decide to co-sponsor a
conference on environmental justice (EJ)- EPA chairs an Interagency Working Group on EJ
under the EJ Executive Order and has taken a leading role in addressing EJ concerns. The
conference provides a wide range of interested parties with information on various perspectives
on EJ and governmental implementation. Speakers include federal and state officials, tribal
representatives, academics, minority community activists, and representatives of environmental
and civil rights NGOs. The conference is open to attendance by federal, state, tribal, and local
government staff, members of tribes, interested citizens, university faculty and students, and
industry and business representatives from throughout the United States. The co-sponsors work
together to develop the substantive agenda, identify speakers and panelists, and promote
attendance. Approximately 70% of the attendees are nonfederal.
The following are examples of funding instruments, and an explanation of why they are or
are not appropriate for funding certain conference costs:
/. Contract.
EPA provides logistical support for the conference through a contractor. Because
EPA is a co-sponsor of the conference, this is appropriate.
One of the non-EPA co-sponsors asks the contractor to make travel arrangements for
some students to attend the conference. This is not appropriate. First, the contractor
may only take direction from the authorized EPA project officer or contracting
officer. Second, because simply attending the conference does not meet the criteria
for invitational travel under 5 U.S.C. 5703, the students' travel is not an allowable
cost under an EPA contract.
2. Cooperative Agreements.
(a) Existing cooperative agreement between EPA and the co-sponsoring association of
state governmental agencies:
The purpose of the association's cooperative agreement is to carry out activities
related to implementation of EJ requirements, including collecting and analyzing
economic and social science data on siting hazardous waste facilities and
disseminating this information to local governments and communities. The
association pays the travel costs of some local officials and community leaders to
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Chapter 4: Joint Conference (continued)
attend the conference. The costs are allowable because they further a purpose of the
cooperative agreement, and the association, rather than EPA or its contractor, decided
who would receive the travel assistance and made all travel arrangements. The
association's participation in the conference was intended principally to further the
interests of the association and its membership rather than to provide logistical or
other services to EPA.
(b)
New Cooperative Agreement between EPA and the tribal organization co-sponsor.
The purpose of the cooperative agreement is to assist tribes in developing the capacity
to understand environmental issues affecting their communities and to participate in
solving their environmental problems. One of the activities under the cooperative
agreement is co-sponsorship of the conference. Costs associated with this activity are
for publicizing the conference, developing printed material for the conference about
tribal EJ concerns, paying travel expenses for tribal speakers and attendees, and
producing an EJ information source book for tribes and tribal community groups to
use after the conference. A cooperative agreement is appropriate because EPA is
substantially involved in the tribal association's capacity building activities, including
joint sponsorship of the conference.
The tribal organization also decides to sponsor a social reception at the conference,
including alcoholic beverages, food, and Native American music. The costs of the
reception are not allowable under the cooperative agreement because they are for
entertainment. This is an independent event and not part of the co-sponsored
conference, therefore EPA (and its contractor) are not involved in the planning or
organizing of the reception. However, information materials for the conference can
include a reference to the event. See Ethics Advisory 96-15.
E. AHowability of Costs Overview. Only a contracting officer or a grants award official has
the authority to obligate the federal government to expend funds. If you are not a contracting
officer, you cannot make any financial commitments to hotels or other vendors. Anyone who
undertakes to commit the government to expend funds without authority risks being held
personally liable by the vendor for payment and subject to EPA disciplinary action.
The cost principles and regulations applicable to the selected funding instruments remain in
effect. Joint sponsorship does not affect the rules regarding allowability of costs under contracts
or assistance agreements (cooperative agreements). See Chapter 3, Section C of this guide for
allowability of costs under assistance agreements.
F. Issues Relating to Jointly Sponsored Conferences.
1. Free Attendance for EPA Employees. If EPA and the nonfederal co-sponsor agree that
Agency employees will be allowed to attend the event for free, they may do so at the discretion
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Chapter 4: Joint Conference (continued]
of their supervisor. Free attendance includes the waiver of all or part of any registration fee, and
the provision of food, refreshments, entertainment, instruction, and materials furnished to all
attendees as part of the event at-the co-sponsor's expense. It does not include travel expenses,
lodging^ or meals taken other than in a group, setting with all attendees. If EPA employees are to
receive a waiver of registration fees, that should be documented in an advance written agreement
with the co-sponsor. See Ethics Advisory 96-15, "Guidance on Co-Sponsoring Conferences."
2. EPA Property and Services. EPA supplies and property can be used by the nonfederal
co-sponsor only to directly support the jointly sponsored event For example, you should not
provide the co-sponsor with franked envelopes without careful monitoring of their use. See the
Standards of Ethical Conduct for Employees of the Executive Branch (5 CFR 2635, Subpart G,
"Misuse of Position" Aug. 1992).
3. Social Events. EPA may not be a co-sponsor of an event that is primarily social in
nature. However, EPA may jointly sponsor an event that has a social component (such as a
modest reception), so long as the event has a primarily educational or informational purpose that
is related to EPA's mission. Agency assistance funds cannot be used for entertainment. See
paragraphs F. 6 and 7 of this Chapter regarding Food and Refreshments.
4. Co-sponsors' Independent Events. If a co-sponsor independently funds (not using
federal funds or its match) a discrete portion of the conference (e.g., a reception), Agency staff
should not assist the co-sponsor in planning or organizing this event except to the extent
necessary to coordinate the overall program. In addition, Agency property or facilities should
not be used for this purpose. However, informational materials about the overall conference may
include information about the co-sponsor's independent activity. See the Standards of Ethical
Conduct for Employees of the Executive Branch (5 CFR 2635 Subpart G, "Misuse of Position"
Aug. 1992). We recommend you consult OGC's Finance and Operations Law Office or your
Regional Counsel for further guidance.
5. Fundraising. EPA shall not assist in fundraising for the co-sponsor's share of the event.
Where a co-sponsor intends to solicit funds from other sources for its share of costs, EPA should
receive assurance that: (1) the solicitation will make clear that the requester is the co-sponsor, not
EPA; (2) the co-sponsor will not imply that EPA endorses any fundraising activities; and (3) any
gifts will be used solely for co-sponsor's share of expenses, not EPA's.
6. Food and Refreshments for EPA Employees. EPA may not use appropriated funds for
food and refreshments for EPA employees attending co-sponsored events at their official duty
stations except as authorized by the Government Employees' Training Act at 5 U.S.C. 4101.
If a nonfederal co-sponsor imposes a charge for conference related meals that it furnishes, the
Agency can pay for'the meals provided: (1) the meals are incidental to the meeting (in other
words, the participants are getting together to do more than eat); (2) the employee's attendance at
the meals is necessary to full participation in the business of the conference; and (3) the
employee is not free to take the meals elsewhere without being absent from essential formal
4-5
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Chapter 4: Joint Conference (continued]
discussions, lectures or speeches concerning the purpose of the conference. See GAO's
Principles of Federal Appropriations Law. Volume I, Chapter 4, pages 4-88 and 4-89. Agency
employees who are in travel status can include the meal cost on the travel voucher, and must also
adjust their per diem claim downward by a formula which takes into account the fact that meal
costs were reimbursed as part of the meeting expenses.
If EPA employees are attending a co-sponsored event where food and refreshments are
provided by the nonfederal co-sponsor, without charge, they may participate if authorized under
the Ethics Regulations. Otherwise, the rules cited in Chapter 2 of this guide apply. See also
Ethics Advisory 96-15.
7. Food and Refreshments for Nonfederal Attendees. EPA may not use appropriated
funds for food and refreshments for nonfederal attendees unless: (1) the recipient is participating
as a speaker in a training event (see the Government Employees Training Act, 5 U.S.C. 410.1);
(2) the recipient is providing a direct service to the Agency and has received "invitational travel
orders" under 5 U.S.C. 5703, in which case other travel expenses may also be paid; or (3) the
Administrator's "reception and representation" fund is used. Also, conference attendees may
voluntarily "pass the hat" to pay for food and refreshments.
8. Use of EPA Logo. The official logo may be used on promotional and conference
materials for conferences EPA jointly sponsors with outside groups. The co-sponsor's logo
should also be used on promotional and conference materials and should be displayed at least as
prominently as EPA's. See EPA Order 1015.2A "EPA Seal and Agency Identifier."
9. Printing of Conference Material. EPA must comply with GPO printing requirements if
it prints conference material (e.g., brochures or conference proceedings and reports). See
Chapter 2 for additional guidance. An assistance recipient (the co-sponsor) may use its grant
funds to print conference material, as discussed in Chapter 3.
10. Location. If EPA is responsible for selecting the conference site and paying for the
facility and the conference involves travel by 30 or more EPA employees, or other travelers
whose expenses are being paid by EPA, a cost comparison justifying the location must be
prepared. See the EPA Travel Manual, Chapter 3.16.(a), (b) and (c).
All conferences, meetings or training seminars EPA sponsors or funds, in whole or in part,
which are held in hotels or motels must comply with the Hotel and Motel Fire Safety Act of
1990. This applies to the government of the District of Columbia only when it expends federal
funds for a conference and to non-federal entities when government funds are provided for the
conference. A list of hotels and motels that comply with the Act can be found in the monthly
publication of the Federal Travel Directory issued by GSA. See the EPA Travel Manual,
Chapter 4.2.(d) and for additional information, see Federal Travel Regulations, 41CFR Parts
301-16 and 301-17.
4-6
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CHAPTER 5: MAINTAINING PROPER DOCUMENTATION
Clear and complete documentation is crucial for effective management of assistance and
acquisition instruments. Fully documenting the who, what, where, when, and why of your
conference will be very helpful hi the event of an audit, when you will be asked to provide up-to-
date and complete records.
Depending on the funding instrument used to support a conference, the documentation
required will differ. For required documentation on contract files, you should consult the
Contract Management Manual and the Contract Administration Training Manual. Chapter 6,
which provides a helpful file plan. For required documentation for assistance agreements, you
should consult the Managing Your Assistance Agreement Training Manual. Appendix Q,
"Official EPA Project File, and Grants Management Fact Sheet No. 10, "Assistance Agreement
File Documentation."
One of the most critical documents for assistance agreements is the decision memorandum,
justifying the use of an assistance agreement versus a contract to support conference activities. If
the objective of the project is to conduct a conference, GAD's "Guidance for Preparing an
Assistance Funding Package," dated April 28, 1997, requires that you address the following in
the memorandum:
Who is initiating the conference?
How will it be advertised?
Whose logo will be used for materials?
What is the percentage of participants (i.e., feds, public, state/local)?
Will the recipient prepare the proceedings and disseminate the information back to the
targeted community?
When you hold a jointly sponsored conference, in order to avoid any misunderstandings, it is
important that EPA have an advance written agreement with co-sponsor(s) describing the
intended roles and responsibilities of each co-sponsor. The following is a checklist of some
important documents that should be retained in the official project file for an assistance
agreement or a contract:
Application for assistance agreement
Assistance agreement (agreement joint application)/award documents or Contract
Co-Sponsorship agreement for conferences
Decision memo for assistance agreements
AA/RA justification for conferences with more than 30 EPA travelers
Amendments and modifications to the original documents)
Financial information/reports, copies of progress reports
Memoranda/correspondence/agendas/proceedings/papers including programmatic reviews
Documentation of telephone conversations and meeting reports
Reviews and audits conducted on the project
Final reports and closeout information
5-1
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REFERENCE LIST BY SUBJECT MATTER
A. Introduction. This is a list, grouped by subject matter (travel, food, etc.), of commonly
referenced documents containing information relating to EPA's and its employees' involvement
in conferences. Many of the documents cited in this reference list and the Best Practices Guide
for Conferences are available electronically. Office of the Comptroller Policy Announcements
and Transmittals (all OC Policy Announcements and Transmittals issued before May 1995 have
been incorporated into the EPA Travel Manual) and the EPA Travel Manual can be accessed at
http://intranet.epa.gov/fmdvally/rmd.htm. The Contracts Management Manual and Procurement
Policy Notices can be accessed at http://intraneLepa.gov/oamintra. Many O1G reports can be
found on EPA's Home Page under Offices and Labs/Office of the Inspector General, also check
http://intranet.epa.gov/oigalsii/cinii.
You can also access GAO Comptroller General Decisions (since October 1995) and the
Principles of Federal Appropriations Law (the Red Book) through GAO's home page at
www.gao.gov. The Code of Federal Regulations and the United States Code are accessible
through EPA's home page under Regulations. Executive Orders and OMB Bulletins and
Circulars can be accessed through www.whitehouse.gov.
B. General Acquisition and Assistance Requirements.
Contracts Management Manual: Covers issues related to the EPA acquisition process.
Procurement Policy Notice No. 97-01 - Required Practices Concerning Subcontracts, Jan. 8,
1997: Includes prohibition against "directed subcontracting."
Simplified Acquisitions Made Easy, April 1998: Provides accessible policies,
procedures and guidelines for simplified acquisitions. This Q&A guidance is provided on the.
OAM intranet site (http://intranetepa.gov/oamintra)
Procurement Policy Notice No. 95-01- Procurement of Items for EPA Sponsored
Commemorations and Events, April 10,1995: Provides guidance regarding the purchase of
items to be distributed to the general public and EPA employees.
EPA Order 5700.1, Policy for Distinguishing Between Acquisition and Assistance, March
22,1994: Clarifies the criteria for and to achieve consistency in selection and use of
contracts, cooperative agreements and grants by all EPA offices and laboratories.
Memorandum from GAD Director to IAG Project Officers, Sept. 30,1996: Provides IAG
decision memorandum guidance, pre-award activities, and subcontractor selection.
Managing Your Financial Assistance Agreement Training Manual Project Officer
Responsibilities, EPA 202-B-94-001, Oct. 1996: Identifies administrative responsibilities of
project officers, grants management offices (GMO), financial management offices (FMO),
and other players involved in the management of assistance agreements.
Participant Reference Manual - Office of Research and Development Project Officer's
Course for Assistance Management (Grants and Cooperative Agreements) Sept. 1995:
Identifies administrative responsibilities of project officers, grants management offices
(GMO), financial management offices (FMO), and other players involved in the management
of assistance agreements.
R-1
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Reference List (continued]
Grants Management Fact Sheet No. 9 - Competition for Assistance Agreements: Addresses
the need to encourage competition in the award of assistance agreements.
Grants Management Fact Sheet No. 10 - Assistance Agreement File Documentation:
Addresses the need to adequately document assistance agreement files, particularly with
regard to relevant communication.
Guidance for Preparing an Assistance Funding Package, April 28, 1997: Addresses the need
for justification in Decision Memoranda when using assistance for conferences.
C. Conference Planning and Site Selection
The EPA Travel Manual (Chapter 2550B of the Resources Management Directives System) of
1995: Incorporates all travel-related Policy Announcements and Transmittals issued by the
Office of the Comptroller after May 1988 through May 1995. See Chapter 5.
Your Preparation Guide for Conferences/Meetings/Training, May 1995: Explains how to
provide logistic support for conferences through small purchase procurement.
EPA Ethics Advisory 96-15, Guidance on Co-Sponsoring Conferences, Oct. 17, 1996:
Addresses legal and ethical issues that arise in connection with co-sponsored conferences.
EPA Order 1015.2A - EPA Seal and Agency Identifier, Dec. 27, 1978: Updates requirements
for use of official EPA seal and provides directions for use of Agency Identifier.
EPA Ethics Advisory 94-17 Providing Speakers at Conferences, Seminars, and Similar
Events, April 13, 1995: Suggests things to consider when EPA employees are asked to
actively participate in non-government conferences.
Committee on Integrity and Management Improvement Bulletin 95-4, Conferences and
Meetings, May 1995: Highlights EPA's policy on scheduling conferences and meetings.
D. Travel
The EPA Travel Manual (Chapter 2550B of the Resources Management Directives System) of
1995: Incorporates all travel-related Policy Announcements and Transmittals issued by the
Office of the Comptroller after May 1988 through May 1995.
On The Way With EPA, A Reference Guide for Travel: Answers commonly asked questions
regarding official temporary duty (TDY) travel for EPA employees and EPA funded travel
for non-EPA employees (invitational travelers).
EPA Ethics Advisory 92-26, Revised Rule on Acceptance of Travel Expenses, Dec. 24, 1992:
Advises that assistance funds cannot be used to fund travel for federal employees because
this would circumvent limits on government travel ceiling. See also EPA Ethics Advisory
96-19, New One-Page Travel Acceptance Form, Dec. 17, 1996, which provides a revised
attachment to Ethics Advisory 92-26; and EPA Ethics Advisory 97-05 Addendum to EPA
Ethics Advisory 92-26, Accepting Travel Expenses, March 13, 1997.)
EPA Ethics Advisory 94-17, Providing Speakers at Conferences, Seminars, and Similar
Events, April 13, 1995: Provides additional guidance on related travel issues.
R-2
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Reference List {continued}
Related OGC Memoranda
Travel Expenses of Non-Government Employees, June 1982: Discusses the rules governing
EPA's payment of travel expenses of non-government employees who attend meetings
sponsored by EPA.
Compensation and Reimbursement of FACA Committee Members and Consultants,
June 1, 1993: Explains when EPA can use contract funds to pay for travel, and when it
must use Agency travel funds.
Reimbursement of Travel and Per Diem Expenses of Federal Advisory Committee
Members, June 22, 1993: Advises that travel and per diem expenses of advisory committee
members may only be paid through the issuance of invitational travel orders and charged to
an appropriate EPA travel account.
Reimbursement of Travel Expenses of Members of Federal Advisory Committees Through
an Interagency Agreement, Sept 7, 1993: Discusses whether a contract issued under an
IAG can be used to pay travel expenses of FACA members. .
Payment of Travel Expenses of Non-Federal Participants at EPA Meetings, Sept. 22, 1993:
Discusses whether it is appropriate to pay for the travel expenses of individuals, such as peer
reviewers, by contract.
E. Food
The EPA Travel Manual (Chapter 2550B of the Resources Management Directives System) of
1995: Incorporates all travel-related Policy Announcements and Transmittals issued by the
Office of the Comptroller after May 1988 through May 1995. See Chapter 5.5.
Procurement Policy Notice (PPN) 94-10 - Contracting for Meals and Refreshments for
Government Employees, Aug. 17, 1994: Sets forth the restrictions for direct acquisition of
EPA employees' meals and refreshments, i.e., meals at conferences/meetings as part of
authorized training, or meals or food and beverages at an official Agency ceremony.
F. Federal Advisory Committee Act Meetings (FACA)
The EPA Travel Manual (Chapter 2550B of the Resources Management Directives System) of
1995: Incorporates all travel-related Policy Announcements and Transmittals issued by the
Office of the Comptroller after May 1988 through May 1995. See Chapter 3.3 and 3.6.
Related OGC Memoranda
Compensation and Reimbursement of FACA Committee Members and Consultants,
June 1, 1993: Explains when EPA can use contract funds to pay for travel, and when it must
use Agency travel funds.
Reimbursement of Travel and Per Diem Expenses of Federal Advisory Committee
Members, June 22, 1993: Advises that travel and per diem expenses of advisory committee
members may only be paid through the issuance of invitational travel orders and charged to
R-3
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Reference List (continued)
an appropriate EPA travel account It is not appropriate to reimburse travel or per diem
expenses of advisory committee members through a contract
Reimbursement of Travel Expenses of Members of Federal Advisory Committees Through
an Interagency Agreement, Sept 7,1993: Discusses whether a contract issued under an
IAG can be used to pay travel expenses of FACA members.
G. Lobbying
Related OGC Memorandum
Appropriation Act Lobbying Restrictions, July 9, 1997: Provides guidance on lobbying
restrictions.
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Appendix G
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UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C. 20460
2 1999 OFF.CEOF
ADMINISTRATION
AND RESOURCES
MANAGEMENT
GPI99-2 and 99-3
MEMORANDUM
SUBJECT: Policies to Close Disbursement and Reimbursement Interagency Agreements
FROM: Gary M. Katz, Director W"
Grants Administration Division/
v
TO: Senior Resources Officials
Attached are copies of the revised closeout policies for reimbursement and disbursement
interagency agreements. These policies include consideration and review of all comments
received from the Regional Grants Management Offices, Grants Customer Relations Council
representatives and from the Cincinnati Financial Management Center. In the near future, we may
develop a separate policy on allocation transfer agreements and Superfund interagency
agreements. We will keep you advised on our progress.
If you have any questions, please contact me or have your staff contact Michelle
McClenddn by phone at (202) 564-5357 or by email at mcclendon.michelle@epa.gov.
Attachments
cc: Romulo Diaz, Office of Administration and Resources Management
Elizabeth Craig, Office of Grants and Debarment
Elissa Karpf, Office of Inspector General
Kenneth Pakula, Office of General Counsel
Assistant Regional Administrators
Grants Customer Relations Council
Grants Management Offices
Internet Address (URL) http://www.epa.gov
Recycled/Recyclable . Primed wilh Vegetable Oil Based InKs on Recycled Paper (Minimum 20% Postconsumer)
-------
GPI99-2
CLOSEOUT POLICY FOR DISBURSEMENT INTERAGENCY AGREEMENTS
(February 12,1999)
Purpose of This document establishes EPA's policy and procedures to close Disbursement
Document Interagency Agreements.
Effective Date This policy becomes effective upon the date of signature. This policy supersedes the
policy and procedures to close disbursement interagency agreements found in the 1988
EPA Assistance Administration Manual and in the 1988 Interagency Compendium.
Applicability These policies and procedures apply to all Disbursement Interagency Agreements with
the exception of allocation transfer agreements.
Definition of a
Disbursement
Interagency
Agreement
A disbursement interagency agreement is:
1) a written agreement between Federal agencies under which goods and services
are provided in exchange for funds or where services are provided without
payment or
2) a written agreement between a Federal agency and a foreign government under
which work will be conducted for, or services provided to, a foreign government
or international organization or
3) a written agreement that sets forth basic policies or procedures governing the
relationship between the agencies to accomplish a joint goal or project
Policy
It is EPA's policy to close disbursement interagency agreements within nine months after
the end of the project period. This will allow for other agencies to submit their final
accounts and bill for costs incurred at the end of the project period. Each EPA program,
administrative and financial office will be responsible for maintaining its respective
interagency agreement files. For more information on Grants Management Office
(GMO), Project Officer and Cincinnati Financial Management Center (CFMC)
responsibilities, please see the attached excerpt on interagency agreements from the
manual entitled, "Managing Your Financial Assistance Agreement: Project Officer
Responsibilities."
GMOs should place their highest priority on closing out disbursement LAGs with no-year
dollars to make funds available immediately to the Agency.
Procedures to EPA Grants Management Offices (GMOs), program offices and CFMC will use the
close disburse- following procedures to close EPA disbursement interagency agreements:
ment interagen-
cy agreements No later than 90 calendar days after the end of the project period, the GMO will review the
financial information in the Integrated Financial Management System or contact CFMC to
-------
determine the remaining balance on the IAG.
Once the GMO receives the balance, it will send a closeout certification letter to the EPA
Project Officer asking whether it received the final product, whether the CFMC balance is
correct and whether the Project Officer approves the closure of the IAG. Project Officers
have twenty-one calendar days after the date of EPA's closeout notification letter to respond.
Where there is property, the GMO shall remind the Project Officer of the Project Officer's
responsibility to dispose of property or equipment acquired or loaned under the agreement
For more information on property disposition, please refer to the attached chapter on
interagency agreement property in the Personal Property Management Policy Manual
(Chapter 4, "Interagency Agreement Property," Classification Number 4831, Personal
Property Management Policy Manual, Facilities Management and Services Division, OARM,
1990).
Upon receipt of the Project Officer certification, the Grants Management Office shall send
a closeout letter stating EPA's remaining balance to the Project Manager from the other
agency (with a copy to CFMC).
If the Project Manager from the other agency disagrees with the remaining balance, the
Project Manager from the other agency must contact CFMC. CFMC will work with the other
agency and the GMO to resolve the discrepancy. If the Project Manager does not contact
CFMC within 15 calendar days of the date of EPA's closeout notification letter, then CFMC
will deobligate the remaining balance in EPA's Integrated Financial Management System
(IFMS). The GMO will close the IAG in the Grants Information Control System and retain
the administrative file according to EPA's record retention policies and procedures.
-------
GPI99-3
CLOSEOUT POLICY FOR REIMBURSEMENT INTERAGENCY AGREEMENTS
(February 12,1999)
Purpose of This document establishes EPA's policy and procedures to close Reimbursement
Document Interagency Agreements.
Effective Date This policy becomes effective upon the date of signature. This policy supersedes the
policy and procedures to close interagency agreements found in the 1988 EPA Assistance
Administration Manual and in the 1988 Interagency Compendium.
Applicability These policies and procedures apply to all Reimbursement Interagency Agreements with
the exception of allocation and appropriation transfer agreements.
Definition of a
Reimbursement
Interagency
Agreement
A reimbursement interagency agreement is:
1) a written agreement between Federal agencies under which goods and services are
provided in exchange for funds or where services are provided without payment or
2) a written agreement between a Federal agency and a State or local government
under which the State or local government reimburses the Federal agency for the costs
of providing goods or services or
3) a written agreement between a Federal agency and a foreign government under
which work will be conducted for, or services provided to, a foreign government or
international organization or
4) a written agreement that sets forth basic policies or procedures governing the
relationship between the agencies to accomplish a joint goal or project
Policy
It is EPA's policy that all reimbursement interagency agreements will be closed upon
notification from the other agency and when all financial transactions have been
completed. However, if the GMO does not receive notification from the other agency
within nine months after the end of the project period, then it will proceed with closeouL
Each EPA program, administrative and financial office is responsible for maintaining its
respective interagency agreement files. For more information on Grants Management
Office (GMO), Project Officer, and Cincinnati Financial Management Center (CFMC)
responsibilities, please see the attached excerpt on interagency agreements from the EPA
manual entitled ," Managing Your Financial Assistance Agreement: Project Officer
Responsibilities."
EPA Grants Management Offices (GMOs) will use the following procedures to close EPA
reimbursement interagency agreements:
Procedures to
close reimburse-
ment interagency
agreements Either upon notification from the other agency or nine months after the end of the project
-------
period, the GMO will review the financial information in the Integrated Financial
Management System or contact CFMC to determine if all funds associated with the IAG
have been expended and collected from the other agency. If the financial transactions are not
complete, then the GMO will follow up with CFMC every three months to determine the
status of closing out the IAG. If the financial transactions are complete, the GMO will
contact the EPA Project Officer to ensure that the Project Officer provided the final product
and the Project Officer approves closing the IAG.
Once the GMO receives the approval, the GMO will send a closeout letter to the Project
Manager for the other agency and to CFMC indicating the amount of unused funds. The
GMO will close the LAG in the Grants Information Control System and retain the
administrative file according to EPA's record retention policies and procedures.
-------
Appendix H
-------
United Slates
Environmental Protection
Agency
Office of
Administration
Facilities Management
And Services
Division
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-------
4831-2/12/90
Personal Property Management Po&gr
Interagency Agreement Property
Chapter 4
1. Purpose
This chapter prescribes polices for the management and control of per-
sonal property provided to or acquired under Interagency Agreements
(IAG) between the Environmental Protection Agency (EPA) and other
federal agencies.
Scope
The polices set forth in this chapter apply to all EPA organizations that
award or administer "Funds-Out" (Disbursement) Interagency Agreements.
All personal property funded or furnished to EPA under a "Funds-In"
(Reimbursement) Interagency Agreement will be subject to the manage-
ment and control outlined in chapter 2, in-house property.
3. Authority
The Federal Property Management Regulations (FPMR), 41 Code of
Federal Regulations (CFR) Chapter 101
4.
Reference
The following sources are referenced for supplementary information on
policies cited in this chapter.
The Interagency Agreement Policy and Procedures Compendium,
Grants Administration Division (GAD)
The Assistance Administration Manual, 5700, Chapter 51
Facilities and Support Services (FSS) Manual, 4800
Responsibilities
5.1. EPA Project Officer
As the designated technical representative, the Project Officer for the Inter-
agency Agreement shall:
greement Properly
Page 55
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Personal Property Management Policy 4831-2/12/90
Ensure incorporation of applicable policies concerning acquisition,
retention, title, and disposition of property in the Interagency Agree-
ment This shall include the designation of a Property Administrator as
a special condition in the Agreement when EPA retains the title for
property. The responsibility for these functions is shared with the
Grants Administration Division when the IAG originates at Head-
quarters and the Regional Assistance Administration Unit (RAAU) for
lAGs that originate in the regions.
Review property requirements submitted by the other agency and
ensure that a cost comparison (lease versus purchase analysis) is
prepared prior to the purchase of any property in excess of $ 1,000.
Recommend disposition to EPA Action Official on property for which
EPA retains title at IAG close-out or when property is no longer needed
for the performance of the IAG.
5.2. EPA Property Administrator
Coordinates with the Project Officer, GAD, and RAAU to ensure that
property accountability, maintenance of the official records of all proper-
ty, final disposition, and transfer of title are complete for property in
which EPA retains tide.
5.3. EPA Financial Management Officer, Cincinnati
Provides guidance on financial management policy, procedures, and any
interagency financial transactions resulting from property disposition.
5.4. EPA Action Official
Signs the Interagency Agreement for EPA and is the final approval
authority for acquisition and disposition of .IAG property. At the regional
level the Action Official is the Regional Administrator or his designee and
must be above the Division Director level. At Headquarters the Action
Official is the Chief, Grants Information and Analysis Branch, Grants
Administration Division.
5.5. GAD or RAAU
Reviews Agreements to ensure compliance with legal and administra-
tive requirements.
Provides a copy of the Agreement and Amendment(s) that involve
property in which EPA elects to retain title to the appropriate Property
Administrator.
Page 56 Chaplor 4. Intoragency Agreement Property
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4831-2/1290
Personal Property Management PoCcy
6.
Policy
Personal property, provided to or acquired by the other agency with EPA
funds, must be authorized in the Agreement The Agreement must specify
if the title is to be vested with EPA or the other agency. Conditions
governing jointly-funded property will be mutually determined by EPA
and the other agency. In the event property title remains with EPA, a
Property Administrator will be designated as a special condition in the
Agreement to administer the property and the requirements for approval,
tide, control, and disposal described in sections 6.1 through 6.4 shall be
followed.
6.1. Approval
The acquisition of property may be authorized if itjs in the best interest of
the Government. A cost comparison analysis will determine the most
cost-effective method of acquisition. These methods include:
Government-furnished property
Usage fee
Lease
Contractor services
Contractor-acquired property
Property purchased with IAG funds
6.1.1. Cost Comparison
6.1.1.1 Government-Furnished Property
EPA-owned property, with the exception of motor vehicles, may be
provided to another federal agency for use under an IAG. Generally the
title to the property will be transferred to that agency with no further
accountability or obligation to EPA unless the exceptions listed below are
met:
The property was originally acquired through the Superfund appropria-
tion, in whole or in pan, or
The EPA Project Officer makes the determination that ft is in the best
interest of EPA to retain tide of the property.
In these cases the property will be loaned by EPA to the other federal
agency. At the end of the project period, or when the property is no longer
needed for the project, the property must be returned to EPA. The Project
Officer must coordinate a loan request by writing a memorandum to the
Chapter 4. Interagoncy Agreement Proporty
Page 57
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Personal Property Management Policy 4831-2/12/90
Action Official through the Property Administrator. A copy shall be for-
warded to GAD or RAAU. The list of Government-furnished property
shall be incorporated into the IAG and shall include the following:
A full description of the property, including the manufacturer's name,
serial number, and model number.
EPA decal number, present condition of the property, and the acquisi-
tion cost
The planned duration of the loan.
Specific statement as to who is responsible for maintenance, repair,
transportation, and restoration costs.
6.1.1.2 Usage Fee
An agency operating under an Interagency Agreement may purchase
equipment using the agency's own funds and charge EPA a fee for the
time the equipment is used on the project The fee will be based upon a
calculated usage charge rate (e.g., $/hour of operation or $/sample). Once
the charge rate is agreed upon by both parties, this rate can be applied in
every project for which the specific piece of equipment will be used.
Usage rates should be reviewed periodically by the federal agency to
ensure that total charges for an item do not exceed the costs actually
incurred.
6.1.1.3 Lease
If a piece of equipment is to be leased through an Interagency Agreement,
a lease versus purchase analysis must be conducted to ensure that the leas-
ing arrangement is the most cost-effective way to achieve the desired
results. The leasing arrangement must be approved by the Action Official.
The Property Administrator shall be notified at the termination of a lease
agreement before items are returned to assure that EPA is taking advan-
tage of any lease credits. The EPA Property Administrator shall determine
if the option to purchase the property should be exercised before the item
is returned to the vendor.
6.1.1.4 Contractor Services
As an alternative to purchasing or leasing property, and a contractor has
the appropriate equipment, the contractor's services may be procured.
This procurement method must be used for Superfund lAGs when trans-
portable or mobile treatment systems (e.g., thermal destruction, biological,
or physical-chemical units, etc.) are required during remedial action.
Pa9e 58 Chapter 4. Interagency Agreement Property
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4831 -2/12/90 Personal Property Management Policy
6.1.1.5 Contractor-Acquired Property
If authorized to do so in the IAG, a contractor may purchase property with
EPA funds. The contract must identify whether the tide will be vested
with EPA, the other federal agency, or the contractor.
6.1.1.6 Property Purchased with IAG Funds
Purchase of equipment is an allowable cost under an Interagency Agree-
ment if the purchase is the most cost-effective way of obtaining the equip-
ment. A justification for purchase of the equipment, including a lease
versus purchase analysis must be prepared and submitted to the Decision
and Action Official prior to purchase. All equipment purchases must be
included in the signed Interagency Agreement or in modifications or
amendments thereto. The justification must include:
The specific program and project for which the property is required and
the EPA cost account number which will be used for the acquisition.
The type, quantity, and estimated costs (including any transportation or
installation costs) of each item of property required.
Why the property is necessary for project performance.
Why it is in the best interest of EPA to provide funds to purchase the
property rather than to require the other agency to provide the property
at no direct cost to the agreement
The location at which the property will be used, and the agency's per-
sonnel responsible for acquisition and management of the property.
For property to be acquired by the other agency at EPA expense, a cer-
tification that no in-house excess property is available and the concur-
rence of the local accountable area property office.
For equipment to be acquired by the other agency at EPA expense a
lease versus purchase analysis.
6.2. Title
6.2.1. Non-Superfund Property
6.2.1.1 Property Acquired with IAG Funds
Non-Supcrfund property authorized for acquisition by the-other agency
under the terms of the IAG will be titled in that agency and subject to the
property management procedures of that agency with no further account-
ability or obligation to EPA, unless otherwise stated in the IAG.
Agency Agroomont Property ' pago 59
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Personal Property Management Policy 4B31 - 2/12/90
6.2.1.2 Government-Furnished Property
Non-Superfund property that is furnished to the other agency by EPA
under the terms of the IAG will be transferred to the other agency in
accordance with the procedures of the General Services Administration
(GSA), titled in that agency, and subject to the property management pro-
cedures of that agency with no further accountability to EPA.
6.2.2. Superfund Property
Title to property acquired totally or in part with funds of the Trust Fund,
remains vested with EPA. The only exception to this policy is for equip-
ment comprising part of the remedial or response action (such as pond
liners or pipes for a water treatment system), and necessary for the con-
tinued functioning or the response action. This property loses its identity
as Government personal property at the time of installation. EPA shall
relinquish its interest in the property at the time of installation and no reim-
bursement will be required for the Trust Fund.
6.2.3. Contractor-Acquired Property
EPA retains the right to title for all personal property acquired under
direct reimbursement by a Superfund contractor working for another
federal agency under an Interagency Agreement All lAGs and contracts
issued under lAGs should reflect this policy.
6.2.4. Right to Retain Title
EPA may reserve the right to retain tide to the property at the end of the
project period when the property is acquired entirely with EPA funds, had
an original acquisition cost of $1,000 or more, and was identified as a spe-
cial condition in the IAG. EPA always retains title to property acquired
using Superfund funding. The EPA Action Official will notify the other
agency of this intention within 120 days after completion of the project.
6.3. Control
The other federal agency has no obligation to follow EPA property
management standards unless they fall in one of the exceptions listed
below.
The IAG is supporting a Superfund project, or
EPA has retained the right to title for property acquired with IAG funds.
If one of the exceptions is met, the other federal agency may use its own
property control procedures if they meet the following minimum stand-
ards set forth below as well as the inventory criteria found in section 6.4.
Page 60 Chapter 4. Interagency Agreement Property
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4831-2/12/90 ^ Personal Property Management Policy
6.3.1. Accountability Criteria
The level of control of personal property shall be exercised according to
the categories listed below.
6.3.1.1 Expendable Property
Expendables and low-value items are subject to accounting and supply
record controls until issued to the consumer. It is the responsibility of the
employee and his/her supervisor to ensure that the property is used for
official purposes.
6.3.1.2 Nonexpendable Property
a. Accountable property consists of nonexpendable personal property with
an acquisition cost of $1,000 or more and sensitive items with an acquisi-
tion cost of $300 or more. Upon receipt, all accountable property shall be
identified and recorded in the agency's property management system. All
property purchased with Superfund funds will be identified by affixing a
"Superfund unique" decal to the property.
b. Nonexpendable personal property which does not meet the account-
ability criteria shall be controlled at the point of issuance. No formal
accountability shall be maintained after issue, but the replacement shall be
regulated by the supervisor to ensure that requests for replacement items
are essential for the successful completion of the project. In addition, the
supervisor shall establish adequate safeguards and controls to ensure that
the property is acquired for official use only. AH property purchased with
Superfund funds will be identified by affixing a "Superfund unique" decal
to the property.
6.3.1.3 Component Parts
Component parts shall not be classified as accountable property. If the
price of the component part is $1,000 or greater, the component shall be
added to the original acquisition cost of the accountable property to which
the component is either installed or affixed. To be a component, the pan
must be nonexpendable, be integral to the functioning of the main unit,
and not have the capacity to stand alone. Examples include: a memory
board for a computer or a probe for a photoionizer.
6.3.1.4 Leased Property
Propeny leased with IAG funds shall be controlled and maintained in the
other agency's property management system.
6.3.2. Property Management Reviews
Section 111 of the Superfund Amendments and Reauthorization Act
requires all Offices of the Inspector General (OIG) of agencies having
^Agr
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Personal Property Management Policy 4831 - 2/12/90
authority under the Act to audit the obligations and disbursements made
against the Trust Fund for the prior fiscal year. In response to this
provision, federal OIGs and other audit groups perform audits of costs
incurred by their respective agencies under lAGs for audit Suggestions or
requests for audit of specific lAGs can be made through the EPA-OIG.
6.4. Inventory
An annual inventory of all property acquired by or furnished to another
federal agency under an IAG is required when title to that property is
retained by EPA. A report of this inventory will be sent to the EPA
Property Administrator.
In addition, a final inventory shall be submitted to the Property Admin-
istrator within 30 days of project completion. The inventory report shall
describe the present condition of each item and request dispbsition
instructions.
6.5. Disposal
Disposition procedures prescribed in this section apply only to property
which EPA has retained the right to tide.
6.5.1. Non-Superfund Property
Disposal of property provided to or acquired through the IAG with non-
Superfund funds to which EPA retains title will be made in accordance
with the Federal Property Management Regulations, Chapter 101, Title
41, Subchapter H. Conditions governing jointly-funded equipment shall,
however, be mutually determined by EPA and the other agency.
6.5.2. Superfund Property
When personal property, funded totally or in pan with Superfund funds, is
no longer required to support the Superfund program, disposition must be
made on the property. Disposition in this context includes the transfer or
sale to or by a federal agency under an IAG.
EPA retains its financial investment in property purchased with Superfund
funds until final disposition of the property. At that time, reimbursement
will be made to the Trust Fund at the item's fair market value. The Prop-
erty Administrator will direct the Agency's disposition of the property to
ensure that the Trust Fund is reimbursed as required and the specific site
or activity account is credited according to the paragraph listed below.
Page 62 Chapter 4. Interagency Agreement Property
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4831-2/12/90 Personal Property Management Pofcy
6.5.2.1 Property Greater than $1,000
For expendable property having an aggregate fair market value of $1,000
or more and for accountable property, the EPA Property Administrator
will direct the other agency to perform one of the following actions:
Transfer to another Interagency Agreement supporting Superfund.
Transfer to an EPA in-house activity supporting Superfund.
Use on other federal projects.
Keep the property.
Sell the property.
Return the property to EPA where the procedures of chapter 2, in-house
property, will apply.
In each instance, the site or activity account losingThe property will be
credited and the receiving account charged- If the property is no longer
used for a Superfund activity, the Trust Fund will be reimbursed its
proportionate share at the current fair market value of the property.
6.5.2.2 Property Less than $1,000
For all nonexpendable personal property falling below the accountability
threshold, reimbursement to the Trust Fund shall take place at the time of
sale. The property may be used by other functions until that time. If an
item is funded partially by Superfund funds, all of the proceeds from the
sale will be reimbursed to the Trust Fund (see general policy, chapter 1,
section 6.3.2.2).
If expendable property remaining at the end of the project period has an
aggregate fair market value of less than $1,000, EPA shall relinquish its
interest in the property and the Property Administrator will instruct the
other agency to keep the property without reimbursing the Trust Fund.
6.5.2.3 Personal Property Comprising Part of a Superfund Action
Personal property comprising part of a Superfund remedial or removal
action (such as pond liners or pipes for a water treatment system) and
necessary for the continued functioning of the response action, loses its
character as Government personal property. EPA will relinquish its inter-
est in the property and no reimbursement to the Trust Fund is required.
Such property is removed from the Personal Property Accountability Sys-
tem, if so controlled, upon certification by the EPA Project Officer and
concurrence by his/her supervisor that the property is being left in place as
pan of the Superfund remedy.
apter 4. Interagency Agreement Property " " ' p-
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Personal Property Management Policy 4831-2/12/90
There may be other property which is incidental to, but not necessary for,
the continued operation of the response action. In accordance with the
provisions of the 41 CFR 101-45.9, these items may be left in place if
required by health, safety, or security considerations. These items may
also be abandoned if the value of the property is so little or the cost of its
care and handling so great that retention for sale is clearly not economical.
6.5.3. Contractor-Acquired Property
If the property is acquired by a contractor through a contract with the
other federal agency using EPA funds and the property is tided to the
other federal agency or EPA, the disposition procedures and Trust Fund
reimbursement requirements set forth in this section apply.
Page 64 Chapter 4. Interagency Agreement Property
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Appendix I
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Appendix T - Interagency Agreement Decision Memorandum Guidance, Pre-award IAG .. Page 1 of 12
^ Appendix T - Interagency Agreement Decision
Memorandum Guidance, Pre-award IAG
Activities, and Subcontractor Selection
Document ID Number: Signer: Gary M. Katz Signature Date: 09/30/96 Revision Date:
Category: Interagency Agreement Documents, Project Officers Manual
September 30, 1996
MEMORANDUM
SUBJECT: Interagency Agreement Decision Memorandum
Guidance,
Pre-award IAG Activities, and Subcontractor Selection
FROM: Gary Katz, Director /s/
Grants Administration Division _ .
TO: Headquarters Senior Resource Officials ,
The Grants Administration Division" has developed guidance
to assist EPA program offices and laboratories in
developing Interagency Agreements. In particular, it
outlines information decision memorandums should include.
If decision memorandums are complete, your offices' rework
and our IAG specialists' follow-up will be reduced. This
guidance clarifies existing policy, implements the Federal
Acquisition Streamlining Act, and responds to IAG
management weaknesses identified by the Inspector General.
All decision memorandums submittedafter September 30,
1996, must reflect this guidance.
I have attached 10 copies', of the'guidance -and request your
assistance in distributing the guidance to all project
officers. We are also sending copies t.o Grants Customer
Relations Council members. Finally, we will send copies to
project officers, when requested.
I you have questions about the guidance, please call Scott
McMoran on (202) 260-4392.
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ATTACHMENTS
cc: Official Reading
S.McMoran M.Lee
S.Pressman J.Souzan
Grants Customer Relations Council
September 30, 1996
MEMORANDUM
SUBJECT: Interagency Agreement Decision Memorandum
Guidance,
Pre-award IAG Activities, and Subcontractor Selection
FROM: Gary Katz, Director /s/
Grants Administration Division
TO: EPA IAG Project Officers
This memorandum lists the information Interagency Agreement
decision memorandums should include and provides up-to-date
guidance on use of lAGs. If decision memorandums are
complete, your offices' rework and our IAG specialists'
follow-up will be reduced.. This guidance clarifies existing
policy, implements the Federal Acquisition Streamlining
Act, and responds to IAG management weaknesses identified
by the Inspector General. (Simple transmittal notes may be
used to transmit amendments to agreements unless there have
been significant changes from the original agreement.)
Effective October 1, 1996, Interagency Agreement decision
memorandums should include at least the following
1. A description of the proposed project's objectives and
an explanation as to how the IAG will accomplish them. The
description of the project objectives should be consistent
with the authority for the agreement (see paragraph 2). If
the funded work is part of a larger project, the
description should be clear as to which parts of the work
are funded by the IAG and which are not.
2. A statement of which statutory authority is thought to
be the basis for the transfer of funds under the IAG.
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Generally, the authority will be either the Economy Act or
EPA's "cooperation" authorities (see attachment 4).
3. For lAGs (agreements with other Federal agencies) which
involve international work and for funds-in agreements with
foreign governments or international organizations, a
statement that the project has been reviewed and approved
by Office of General Counsel grants staff and the Office of
International Activities and a copy of the OIA clearance
form. (OIA will obtain necessary clearance from the
Department of State or the Agency for International
Development for agreements with foreign governments and
international organizations.) The OGC will assist you in
determining the proper authority for these agreements (see
Attachment 4).
4. A discussion of the alternatives to an IAG which you
considered and why the IAG mechanism was selected.
5. An explanation of why the other agency was selected or
why the other agency selected EPA.
6. A determination that the cost of the proposed work is
reasonable based on an independent estimate of cost or
other appropriate cost information developed by EPA.
7. For Economy Act.LAGs, .explain how the IAG is in the best
interest of the government and how it will further economy
and efficiency, and, if the servicing agency will provide
goods or services with its own forces, an explanation of
why the requesting agency cannot obtain the services as
conveniently or cheaply through a commercial enterprise.
8. For Economy Act lAGs under which EPA is obtaining goods
or services through another agency's contract, a discussion
which will document that one of the criteria below is met
o The acquisition will appropriately be made under an
existing contract of the servicing agency, entered into
before placement of the order, to meet the requirements of
the servicing agency. To meet this criterion, you must
provide assurance that the statement of work is consistent
with the scope of the contract; or
o The servicing agency has capabilities or expertise to
enter into a contract for such supplies or services which
is not available within the requesting agency; or
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o The servicing agency is specifically authorized by law or
regulation to purchase such supplies or services 'on behalf
of other agencies.
9. (a) For Economy Act lAGs, if funds under the IAG will be
used for travel, the purpose of the IAG and the associated
travel must be to carry out a project in support of the
requesting agency's mission and not to augment the
performing agency's travel ceiling. If EPA will use more
than 15% or $15,000, whichever is less, of the funds under
a funds-in IAG for travel, the decision memo must include a
statement that the purpose of the IAG and the associated
travel is to carry out a project in support of the other
agency's mission and not to augment EPA's travel ceiling.
It must make clear that the EPA staff would not make the
trips planned under, the IAG, except for the other agency's
project. (For funds-out lAGs with travel budgets which meet
the criteria above, the statement must come from the other
agency's project officer.)
(b) For a funds-in IAG under EPA's cooperation authorities,
if EPA will use more than 15% or $15,000, whichever is
less, of the funds for travel, the decision memo must
include a statement that -the travel is necessary to carry
out the project and the IAG is not for the purpose of
exceeding a travel ceiling or similar limitation. (For
funds-out cooperation act lAGs with travel budgets which
meet the criteria above, the statement must come from the
other agency's project officer.)
10. If funds under an IAG authorized by EPA's cooperation
authorities will be used for a grant or cooperative
agreement, a statement that the principal purpose of the
project is to support or stimulate the recipient to
accomplish a public purpose and not for the direct use or
benefit of the Federal government, and a statement that
both agencies have adequate'grant making authority (see
attachment 4).
11. If IAG payments will be made in advance, a
justification for use of the advance payment method.
Generally, advance payments are authorized only when an
agency has a working capital fund or other statutory or
regulatory requirement for advances; EPA does not have
authority to request payments in advance.
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Appendix T - Interagency Agreement Decision Memorandum Guidance, Pre-award IAG.. Page 5 of 12
I am attaching several memorandums which have updated IAG
policy in recent years as well as an explanation of EPA's
statutory authorities for lAGs. Some of the memorandums,
such as those related to lAGs submitted after start of
work, may require decision memorandums to include
additional information to cover specific circumstances.
Attached are
o An August 10, 1988, memorandum from Dave Ryan, EPA
Comptroller and Harvey Pippen, which explains justification
requirements when lAGs are submitted to GAD after EPA staff
have authorized start of work (generally, of course, such
authorizations should not be given) (Attachment 1).
o A memorandum (May 25, 1994), signed by Jon Cannon, which
makes clear that EPA staff should not be involved in
selecting other agencies' contractors or subcontractors
under lAGs (Attachment 2).
o A memorandum (May 11, 1994), from Scott McMoran and
concurred in by Steve Pressman, OGC, which clarifies the
availability period of funds under lAGs (Attachment 3).
o A list of the statutory and related authorities which
authorize the agency "to enter into lAGs with an explanation
of when to use them (Attachment 4).
If you have questions on this guidance, please call Scott
McMoran in Grants Operations Branch B on (202) 260-4392.
ATTACHMENTS
Attachment 1
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C. 20460
AUG 10,1988
MEMORANDUM
SUBJECT: Approval of Project Periods and Incurred Costs for Interagency Agreements
FROM: David P. Ryan /s/
Comptroller
Harvey G. Pippen, Jr. /s/, Director
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Appendix T - Interagency Agreement Decision Memorandum Guidance, Pre-award IAG.. Page 6 of 12
Grants Administration Division
TO: Addressees
BACKGROUND
Environmental Protection Agency (EPA) Action Officials are frequently asked to execute
interagency agreements (TAGS) after the project period has-begun. This often results in a
misunderstanding of the start date of the project. It also causes confusion about the
allowable costs which can be incurred between the start of the defined project period and
date of execution of the IAG. For example, an IAG intended to begin the first day of the
fiscal year may not be prepared by the program office until allowances are issued several
weeks into the fiscal year. Yet it may be essential, for program continuity, for activity to
begin (or continue) on the first day of the fiscal year.
For both direct Federal procurement actions and EPA assistance awards, procedures are
defined by regulation to deal with pre-award costs issues. However, no such regulatory
framework is available for interagency agreements. The purpose of this memorandum is to
establish policy for approving lAGs with project periods (and related costs) beginning
before execution of the agreements.
ACTION
Generally, work should not be initiated under an interagency agreement between EPA and
another agency Until a formal agreement has been executed by both parties. However,
valid reasons may be present for exceptions to this policy, including emergency responses
or unplanned delays in funding availability. Project periods for interagency agreements
beginning before the date of execution of the IAG may be approved by the EPA Action
Official. This decision is to be based on justification provided by the program Decision
Official for costs incurred within the appropriation period in current legislation. Failure to
provide such justification could jeopardize reimbursement for costs incurred prior to
execution of the IAG.
Chapter 51 of the Assistance Administration Manual requires that a decision memorandum
accompany each interagency agreement submitted to an EPA Action Official for
execution. If it is necessary to approve an IAG project period which has already begun, the
following information should be incorporated in the decision memorandum:
1. Identification and discussion of IAG project activities conducted prior to execution of
the IAG.
2. Explanation of why it was necessary to initiate activities prior to the execution of the
IAG.
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3. A statement that an EPA representative authorized the TAG activities to be conducted
before execution.
Following evaluation and acceptance of the justification, the Action Official may execute
the IAG on behalf of EPA with project period dates prior to the date of execution.
Questions regarding this memorandum should be directed to: W. Scott McMoran, Chief,
Grants Information and Analysis Branch, Grants Administration Division (3903F), 202-
260-4392.
Attachment 2
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C. 20460
MAY 25, 1994
MEMORANDUM
SUBJECT: Directed Subcontracting under Interagency Agreements
TO: EPA Interagency Agreement Project Officers
Agencies may use Interagency Agreements (IAG) to obtain goods and services from other
agencies which have greater capability or capacity in certain areas. lAGs are authorized by
the Economy Act and by several of EPA's program statutes. It has recently come to my
attention that EPA employees may be using lAGs to avoid restrictions under the Federal
Acquisition Regulation and EPA contracts.
Under IAGS, an agency may provide goods or services to another either directly using its
own staffer through contracts. When the agency has a contract in place with the
appropriate scope of work and capacity, it is appropriate for EPA employees to negotiate
and Interagency Agreement with the other agency to obtain the goods or services if doing
so will enhance economy and efficiency in the government. Generally, the other agency
can begin work or place a contract task order only after an IAG is signed by appropriate
officials in both agencies. In any event
- NO EPA EMPLOYEE MAY AUTHORIZE ANOTHER AGENCY'S CONTRACTOR TO
BEGIN WORK UNDER AN IAG. THE OTHER AGENCY MUST ISSUE A TASK ORDER
BASED ON THE IAG BEFORE THE CONTRACTOR CAN BEGIN WORK.
NO EPA EMPLOYEE MAY DIRECT ANOTHER AGENCY'S CONTRACTOR TO
OBTAIN THE SERVICES OF A PARTICULAR SUBCONTRACTOR.
NO EPA EMPLOYEE MAY AUTHORIZE ANOTHER AGENCY'S CONTRACTOR TO
PERFORM WORK OUTSIDE THE SCOPE OF THE TASK ORDER, INCREASE THE
ESTIMATED COST OF THE TASK,OR ALTER THE CONTRACTOR'S PERIOD OF
PERFORMANCE
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If you have any questions, please call Gary Katz, Director, Grants Administration Division
on 260-5240.
Attachment 3
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C. 20460
MAY 11 1994
MEMORANDUM
SUBJECT: Availability of IAG Funds
FROM: Scott McMoran /s/, Chief
Grants Information and Analysis Branch
TO: Steve Pressman, Chief
Office of General Counsel Grants Branch
In our opinion, current guidance in the Compendium of Procedures is fuzzy. We, with
assistance from the Cincinnati Financial Management Office, have drafted the following
set of principles based on our understanding of the relevant statutory provisions and
appropriations law guidance.
Funds transferred for expenses such as salaries and benefits', and travel which cite the
Economy Act for authority. Appropriations law is clearthe funds expire when the parent
appropriation expires. (31 USC 1535 (d) ). This would be true even if the IAG was for a
project which was not completed during the availability -period (Compendium of
Procedures, Chapter 1, paragraph 7.g.) .
Funds transferred for expenses such as salaries, benefits, and travel and which cite
CERCLA or the cooperation provisions of EPAIs program statutes for authority are
obligated when the IAG is fully executed (signed by both agencies) . The funds are
available to the receiving agency for obligation and expenditure until they are expended or
the project ends (Compendium of Procedures, Chapter 2, paragraph III.c.l. ) .
Funds transferred for use under a contract and which cite the Economy Act for authority
are obligated when the IAG is fully executed. However, the receiving agency must obligate
the funds to the contract before the period of availability of the source appropriation ends.
Then, the funds are available for expenditure until the project is completed - or the
contract ends, whichever is first (Compendium of Procedures Chapter 2 paragraph
III.c.1.).
Funds transferred for use under a contract or grant and which cite as authority CERCLA
or the cooperation provisions of EPA's statutes are obligated when the IAG is fully
executed. The funds are available until the project is completed, or the contract/grant ends
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(Compendium of Procedures, Chapter 2, paragraph III.c.l. ) .
If we can agree on these principles, or a reasonable facsimile, we can add the appropriate
information to each IAG so that the program offices and other agencies will be aware of
how we will
treat the funds.
If you concur, please sign the block below. Please call Scott McMoran on 260-4392 if you
have questions.
Concur: /s/ 4/26/94
Steve Pressman, OGC
ATTACHMENT 4
EPA'S INTERAGENCY AGREEMENT AUTHORITIES
ECONOMY ACT
The Economy Act should be cited for the authority under which an IAG is to be awarded
only if all the following statements are true
The IAG involves one agency "providing goods or services" to another agency. That is,
the performing agency has no need for the goods and services and would not have bought
the goods or done the work but for the request of the funding agency.
The amount of the IAG equals the total estimated cost of the goods and services
including all direct and indirect costs. (Indirect costs may be included only if the providing
agency has an indirect cost rate at this time, EPA does not. )
None of the funds will be used for a grant or cooperative agreement.
The performing agency will be able to perform the service or obligate the funds within
the period of fund availability. If the performing agency will be using a contractor to carry
out the work, it is necessary only that the contract or task order be awarded within the
period of availability.
The approving official has determined that the requested services cannot be provided as
conveniently or cheaply by a commercial enterprise. (This determination is not necessary
if the performing agency will use a contractor to provide the goods or services. )
If EPA is obtaining goods or services through another agency's contract, one of the
criteria below must be met~
The acquisition will appropriately be made under an existing contract of the servicing
agency, entered into before placement of the order, to meet the requirements of the
servicing agency; or
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The servicing agency has capabilities or expertise to enter into a contract for such
supplies or services which is not available within EPA; or
The servicing agency is specifically authorized by law or regulation to purchase such
supplies or services on behalf of other agencies.
COOPERATION AUTHORITIES
One or more of EPA's cooperation authorities listed below, depending on the statute
involved, should be cited for authority when the project is a joint effort of the involved
agencies and the proposed activity is authorized by an EPA statute. Some agencies may
not be familiar with alternatives to the Economy Act and may be uncomfortable relying on
EPA's cooperation authorities
for an interagency transaction. EPA's Office of General Counsel grants staff believes
EPA's cooperation authority is sufficient authority for both agencies to enter into a funds
transfer agreement, and OGC should be contacted if another agency raises the issue. This
is especially important if the project conflicts with any of the statutory restrictions of the
Economy Act
explained above.
Cooperation authorities should be cited as the basis for lAGs if the following statements
are generally true
The project is directly related to the needs and interests of both agencies. The statement
of work, project description, or decision memorandum should explain both (all) agencies'
interest in the work.
Both or several agencies are committing resources to the project, whether in the form of
salaries, equipment, travel contract services, or grant funds.
The work is consistent with the language of one or more of EPA's cooperation
authorities.
If any of the funds will be used for a grant or cooperative agreement provided both the
following conditions exist.
(I) The relationship between the recipient and the funding agency must be one of
assistance. For a funds-in agreement the funding package must include a statement from
the EPA project officer that the principle purpose of the work is to support or stimulate the
recipient to accomplish a public purpose and not for the direct use and benefit of the
Federal government. For a funds-out agreement, the funding package must include a
similar statement from the other agency's project officer.
(II) Both agencies must have adequate authority to award the grant or cooperative
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Appendix T - Interagency Agreement Decision Memorandum Guidance, Pre-award IAG .. Page 11 of 12
agreement. The decision memo should assure that each agency has appropriate grant
making authorities.
Current EPA cooperation authorities include
Clean Water Act, Section 104(b) (2)
Clean Air Act, Section 103(b) (2)
Clean Air Act, Section 102(b)
RCRA, Section 8001
RCRA, Section 6003
TSCA, Section 10 and Section 26 (latterfunds put only)
FIFRA, Section 17(d), Section 20 , and Section 22
CERCLA, Section 105(4) and Section 115 read together with Executive Order 12316
Marine Protection,, Research, and Sanctuaries Act, Section 203
The Safe Drinking Water Act, Section 1450(b), (funds out for services.
The National Environmental Education Act, Section 4(b) (3).
OTHER AUTHORITIES
Many other agencies have alternative IAG authorities similar to EPA's cooperation
authorities. This does not generally present a problem and EPA can accept the other
agency's citation as authority for the agreement (e.g., Section 5112 (e) of the Information
Technology Management Reform Act of 1996, with respect to lAGs for computer services
with GSA) . In such situations, you should contact OGC or GAD as soon as you are aware
of such circumstances (You should also contact OGC if the other agency has cited the
Economy Act and any restrictions of that Act identified above pose a problem) .
INTERNATIONAL AUTHORITIES
Authority for international lAGs with other federal agencies is usually either the Economy
Act or EPA's cooperation authorities,-supplemented by Section 102(2) (F) of the National
Environmental Policy Act. In the case of funds-in interagency agreements with the Agency
for International Development, the authority may be Section 632(a) or 632(b)of the
Foreign Assistance
Act (22 U.S.C. 2392). There are significant differences between the two- contact OGC.
Funds-in agreements with the Department of State are often authorized by Section 8 of the
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Appendix T Interagency Agreement Decision Memorandum Guidance, Pre-award IAG .. Page 12 of 12
DOS Basic Authorities Act (22 U.S.C 2675). Authority for funds-in agreements with
most foreign governments or authorized international organizations (not technically lAGs,
but using the IAG form) is Section 607 of the Foreign Assistance Act (22 U.S.C. 2357). In
the case of Taiwan, however, agreements usually cite the Taiwan Relations Act (22 U.S.C.
3308). For assistance in detennining the appropriate authority for international
agreements, contact OGC.
^Interagency Agreement Form 1610-1
f J G
Document ID Number: Signer: Signature Date: Revision Date:
Category: Interagency Agreement Documents
This attachment is the Interagency Agreement Form 1610-1 as a WordPerfect document. It is best to detach or save this
file and work on your drive in WordPerfect.
Project Officer's IAG Invoice Approval - EPA Form 2550-21 is available in PDF format
on the Agency's forms page at: http://intranet.epa.gov/nmip/forms/2550-21.pdf
http://dchqdominol.wsm.epa.gov:987.../07036d79322174f28525661fD04bc9ad?OpenDocumen 3/27/00
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Appendix J
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FEDERAL ACQUISITION REGULATION
PART 17SPECIAL CONTRACTING METHODS
Sec.
17.000 Scope of part
Subpart 17.1Multi-year Contracting
17.101 Authority.
17.102 Applicability.
17.103 Definitions.
17.104 General.
17.105 Policy.
17.105-1 Uses.
17.105-2 Objectives.
17.106 Procedures.
17.106-1 General.
17.106-2 Solicitations.
17.106-3 Special procedures applicable to DoD, NASA, and
the Coast Guard.
17.107 Options.
17.108 Congressional notification.
17.109 Contract clauses.
Subpart 17.2Options
17.200 Scope of subpart
17.201 Definition.
17.202 Use of options.
17.203 Solicitations.
17.204 Contracts.
17.205 Documentation.
17.206 Evaluation.
17.207 Exercise of options.
17.208 Solicitation provisions and contract clauses.
Subpart 17.3[Reserved]
Snbpart 17.4Leader Company Contracting
17.401 General.
17.402 Limitations.
17.403 Procedures.
*** Subpart 17.5Interagency Acquisitions Under the Economy
Act
17.500 Scope of subpart
17.501 Definition.
17.502 General.
17.503 Determinations and findings requirements.
17.504 Ordering procedures.
17.505 Payment
Subpart 17.6Management and Operating Contracts
17.600 Scope of subpart.
17.601 Definition.
17.602 Policy.
17.603 Limitations.
17.604 Identifying management and operating contracts.
17.605 Award, renewal, and extension.
17.000 Scope of part
This part prescribes policies and procedures for the
acquisition of supplies and services through special con-
tracting methods, including
(a) Multi-year contracting;
(b) Options; and
(c) Leader company contracting.
Subpart 17.1Multi-year Contracting
17.101 Authority.
This subpart implements Section 3046 of the Federal
Property and Administrative Services Act of 1949 (41
U.S.C. 254c) and 10 U.S.C. 2306b and provides policy and
procedures for the use of multi-year contracting.
17.102 Applicability.
For DoD, NASA, and the Coast Guard, the authorities
cited in 17.101 do not apply to contracts for the purchase of
supplies to which 40 U.S.C. 759 applies (information
resource management supply contracts).
17.103 Definitions.
As used in this subpart
"Cancellation" means the cancellation (within a contrac-
tually specified time) of the total requirements of all
remaining program years. Cancellation results when the
contracting officer
(a) Notifies the contractor of nonavailability of funds for
contract performance for any subsequent program year; or
(b) Fails to notify the contractor that funds are available
for performance of the succeeding program year require-
ment.
"Cancellation ceiling" means the maximum cancellation
charge that the contractor can receive in the event of can-
cellation.
"Cancellation charge" means the amount of unrecovered
costs which would have been recouped through amortiza-
tion over the full term of the contract, including the term
canceled.
"Multi-year contract" means a contract for the purchase
of supplies or services for more than 1, but not more than 5,
program years. A multi-year contract may provide that per-
formance under the contract during the second and
subsequent years of the contract is contingent upon the
appropriation of funds, and (if it does so provide) may pro-
vide for a cancellation payment to be made to the contractor
if appropriations are not made. The key distinguishing dif-
ference between multi-year contracts and multiple year
contracts is that multi-year contracts, defined in the statutes
cited at 17.101, buy more than 1 year's requirement (of a
17-1
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17.104
FEDERAL ACQUISITION REGULATION
product or service) without establishing and having to exer-
cise an option for each program year after the first.
"Nonrecurring costs" means those costs which are gen-
erally incurred on a one-time basis and include such costs as
plant or equipment relocation, plant rearrangement, special
tooling and special test equipment, preproduction engineer-
ing, initial spoilage and rework, and specialized work force
training.
"Recurring costs" means costs that vary with the quantity
being produced, such as labor and materials.
'Termination for convenience" means the procedure
which may apply to any Government contract, including
multi-year contracts. As contrasted with cancellation, ter-
mination can be effected at any time during the life of the
contract (cancellation is effected between fiscal years) and
can be for the total quantity or a partial quantity (whereas
cancellation must be for all subsequent fiscal years' quanti-
ties).
17.104 General.
(a) Multi-year contracting is a special contracting
method to acquire known requirements in quantities and
total cost not over planned requirements for up to 5 years
unless otherwise authorized by statute, even though the total
funds ultimately to be obligated may not be available at the
time of contract award. This method may be used in sealed
bidding or contracting by negotiation.
(b) Multi-year contracting is a flexible contracting
method applicable to a wide range of acquisitions. The
extent to which cancellation terms are used in multi-year
contracts will depend on the unique circumstances of each
contracting action. Accordingly, for multi-year contracts,
the agency head may authorize modification of the require-
ments of this subpart and the clause at 52.217-2,
Cancellation Under Multi-year Contracts.
(c) Agency funding of multi-year contracts shall con-
form to the policies in OMB Circulars A-11 (Preparation
and Submission of Budget Estimates) and A-34
(Instructions on Budget Execution) and other appb'cable
guidance regarding the funding of multi-year contracts. As
provided by that guidance, the funds obligated for multi-
year contracts must be sufficient to cover any potential
cancellation and/or termination costs; and multi-year con-
tracts for the acquisition of fixed assets should be fully
funded or funded in stages that are economically or pro-
grammatically viable.
17.105 Policy.
17.105-1 Uses.
(a) Except for DoD, NASA, and the Coast Guard, the
contracting officer may enter into a multi-year contract if
the head of the contracting activity determines that
(1) The need for the supplies or services is reasonably
firm and continuing over the period of the contract; and
(2) A multi-year contract will serve the best interests
of the United States by encouraging full and open competi-
tion or promoting economy in administration, performance,
and operation of the agency's programs.
(b) For DoD, NASA, and the Coast Guard, the head of
the agency may enter into a multi-year contract for supplies
if
(1) The use of such a contract will result in substan-
tial savings of the total estimated costs of carrying out the
program through annual contracts;
(2) The minimum need to be purchased is expected to
remain substantially unchanged during the contemplated
contract period in terms of production rate, procurement
rate, and total quantities;
(3) There is a stable design for the supplies to be
acquired, and the technical risks associated with such sup-
plies are not excessive;
(4) There is a reasonable expectation that, throughout
the contemplated contract period, the head of the agency
will request funding for the contract at a level to avoid con-
tract cancellation; and
(5) The estimates of both the cost of the contract and
the cost avoidance through the use of a multi-year contract
are realistic.
(c) The multi-year contracting method may be used for
the acquisition of supplies or services.
(d) If funds are not appropriated to support the succeed-
ing years' requirements, the agency must cancel the
contract.
17.105-2 Objectives.
Use of multi-year contracting is, encouraged to take
advantage of one or more of the following:
(a) Lower costs.
(b) Enhancement of standardization.
(c) Reduction of administrative burden in the placement
and administration of contracts.
(d) Substantial continuity of production or performance,
thus avoiding annual startup costs, preproduction testing
costs, make-ready expenses, and phaseout costs.
(e) Stabilization of contractor work forces.
(f) Avoidance of the need for establishing quality control
techniques and procedures for a new contractor each year.
(g) Broadening the competitive base with opportunity
for participation by firms not otherwise willing or able to
compete for lesser quantities, particularly in cases involving
high startup costs.
(h) Providing incentives to contractors to improve pro-
ductivity through investment in capital facilities,
equipment, and advanced technology.
17-2
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FAC 9702 OCTOBER 10,1997
PART 17SPECIAL CONTRACTING METHODS
17.106-2
17.106 Procedures.
17.106-1 General.
(a) Method of contracting. The nature of the requirement
should govern the selection of the method of contracting,
since the multi-year procedure is compatible with sealed
bidding, including two-step sealed bidding, and negotiation.
(b) Type of contract. Given the longer performance
period associated with multi-year acquisition, consideration
in pricing fixed-priced contracts should be given to the use
of economic price adjustment terms and profit objectives
commensurate with contractor risk and financing arrange-
ments.
(c) Cancellation procedures. (1) All program years
except the first are subject to cancellation. For each pro-
gram year subject to cancellation, the contracting officer
shall establish a cancellation ceiling. Ceilings must exclude
amounts for requirements included in prior program years.
The contracting officer shall reduce the cancellation ceiling
for each program year in direct proportion to the remaining
requirements subject to cancellation. For example, consider
that the total nonrecurring costs (see 15.408, Table 15-2,
Formats for Submission of Line Items Summaries C(8)) are
estimated at 10 percent of the total multi-year price, and the
percentages for each of the program year requirements for 5
years are (i) 30 in the first year, (ii) 30 in the second, (iii) 20
in the third, (iv) 10 in the fourth, and (v) 10 in the fifth. The
cancellation percentages, after deducting 3 percent for the
first program year, would be 7, 4, 2, and 1 percent of the
total price applicable to the second, third, fourth, and fifth
program years, respectively.
(2) In determining cancellation ceilings, the contract-
ing officer must estimate reasonable preproduction or
startup, labor learning, and other nonrecurring costs to be
incurred by an "average" prime contractor or subcontractor,
which would be applicable to, and which normally would be
amortized over, the items or services to be furnished under
the multi-year requirements. Nonrecurring costs include
such costs, where applicable, as plant or equipment reloca-
tion or rearrangement, special tooling and special test
equipment, preproduction engineering, initial rework, initial
spoilage, pilot runs, allocable portions of the costs of facili-
ties to be acquired or established for the conduct of the
work, costs incurred for the assembly, training, and trans-
portation to and from the job site of a specialized work
force, and unrealized labor learning. They shall not include
any costs of labor or materials, or other expenses (except as
indicated above), which might be incurred for performance
of subsequent program year requirements. The total esti-
mate of the above costs must then be compared with the best
estimate of the contract cost to arrive at a reasonable per-
centage or dollar figure. To perform this calculation, the
contracting officer should obtain in-house engineering cost
estimates identifying the detailed recurring and nonrecur-
ring costs, and the effect of labor learning.
(3) The contracting officer shall establish cancellation
dates for each program year's requirements regarding pro-
duction lead time and the date by which funding for these
requirements can reasonably, be established. The contract-
ing officer shall include these dates in the schedule, as
appropriate.
(d) Cancellation ceilings. Cancellation ceilings and
dates may be revised after issuing the solicitation if neces-
sary. In sealed bidding, the contracting officer shall change
the ceiling by amending the solicitation before bid opening.
In two-step sealed bidding, discussions conducted during
the first step may indicate the need for revised ceilings and
dates which may be incorporated in step two. In a negoti-
ated acquisition, negotiations with offerers may provide
information requiring a change in cancellation ceilings and
dates before final negotiation and contract award.
(e) Payment of cancellation charges. If cancellation
occurs, the Government's liability will be determined by the
terms of the applicable contract.
(f) Presolicitation orpre-bid conferences. To ensure that
all interested sources of supply are thoroughly aware of ^-ow
multi-year contracting is accomplished, use of presolicita-
tion or pre-bid conferences may be advisable.
(g) Payment limit. The contracting officer shall limit the
Government's payment obligation to an amount available
for contract performance. The contracting officer shall
insert the amount for the first program year in the contract
upon award and modify it for successive program years
upon availability of funds.
(h) Termination payment. If the contract is terminated
for the convenience of the Government in whole, including
requirements subject to cancellation, the Government's
obligation shall not exceed the amount specified in the
Schedule as available for contract performance, plus the
cancellation ceiling.
17.106-2 Solicitations.
Solicitations for multi-year contracts shall reflect all the
factors to be considered for evaluation, specifically includ-
ing the following:
(a) The requirements, by item of supply or service, for
the
(1) First program year; and
(2) Multi-year contract including the requirements
for each program year.
(b) Criteria for comparing the lowest evaluated submis-
sion on the first program year requirements to the lowest
evaluated submission on the multi-year requirements.
(c) A provision that, if the Government determines
before award that only the first program year requirements
17-3
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17.106-3
FEDERAL ACQUISITION REGULATION
are needed, the Government's evaluation of the price or esti-
mated cost and fee shall consider only the first year.
(d) A provision specifying a separate cancellation ceiling
(on a percentage or dollar basis) and dates applicable to
each program year subject to a cancellation (see 17.106-1 (c)
and (d)).
(e) A statement that award will not be made on less than
the first program year requirements.
(f) The Government's administrative costs of annual con-
tracting may be used as a factor in the evaluation only if
they can be reasonably established and are stated in the
solicitation.
(g) The cancellation ceiling shall not be an evaluation
factor.
17.106-3 Special procedures applicable to DoD, NASA,
and the Coast Guard.
(a) Participation by subcontractors, suppliers, and ven-
dors. In order to broaden the defense industrial base, to the
maximum extent practicable
(1) Multi-year contracting shall be used in such a
manner as to seek, retain, and promote the use under such
contracts of companies that are subcontractors, suppliers,
and vendors; and
(2) Upon accrual of any payment or other benefit
under such a multi-year contract to any subcontractor, sup-
plier, or vendor company participating in such contract,
such payment or benefit shall be delivered to such company
in the most expeditious manner practicable.
(b) Protection of existing authority. To the extent practi-
cable, multi-year contracting shall not be carried out in a
manner to preclude or curtail the existing ability of the
Department or agency to provide for termination of a prime
contract, the performance of which is deficient with respect
to cost, quality, or schedule.
(c) Cancellation or termination for insufficient funding.
In the event funds are not made available for the continua-
tion of a multi-year contract awarded using the procedures
in this section, the contract shall be canceled or terminated.
(d) Contracts awarded under the multi-year procedure
shall be firm-fixed-price, fixed-price with economic price
adjustment, or fixed-price incentive.
(e) Recurring costs in cancellation ceiling. The inclu-
sion of recurring costs in cancellation ceilings is an
exception to normal contract financing arrangements and
requires approval by the agency head.
(f) Annual and multi-year proposals. Obtaining both
annual and multi-year offers provides reduced lead time for
making an annual award in the event that the multi-year
award is not in the Government's interest. Obtaining both
also provides a basis for the computation of savings and
other benefits. However, the preparation and evaluation of
dual offers may increase administrative costs and workload
for both offerers and the Government, especially for large or
complex acquisitions. The head of a contracting activity
may authorize the use of a solicitation requesting only
multi-year prices, provided it is found that such a solicita-
tion is in the Government's interest, and that dual proposals
are not necessary to meet the objectives in 17.105-2.
(g) Level unit prices. Multi-year contract procedures
provide for the amortization of certain costs over the entire
contract quantity resulting in identical (level) unit prices
(except when the economic price adjustment terms apply)
for all items or services under the multi-year contract. If
level unit pricing is not in the Government's interest, the
head of a contracting activity may approve the use of vari-
able unit prices, provided that for competitive proposals
there is a valid method of evaluation.
17.107 Options.
Benefits may accrue by including options in a multi-year
contract. In that event, contracting officers must follow the
requirements of Subpart 17.2. Options should not include
charges for plant and equipment already amortized, or other
nonrecurring charges which were included in the basic con-
tract.
17.108 Congressional notification.
(a) Except for DoD, NASA, and the Coast Guard, a
multi-year contract which includes a cancellation ceiling in
excess of $10 million may not be awarded until the head of
the agency gives written notification of the proposed con-
tract and of the proposed cancellation ceiling for that
contract to the committees on appropriations of the House
of Representatives and Senate and the appropriate oversight
committees of the House and Senate for the agency in ques-
tion. Information on such committees may not be readily
available to contracting officers. Accordingly, agencies
should provide such information through its internal regula-
tions. The contract may not be awarded until the thirty-first
day after the date of notification.
(b) For DoD, NASA, and the Coast Guard, a multi-year
contract which includes a cancellation ceiling in excess of
$100 million may not be awarded until the head of the
agency gives written notification of the proposed contract
and of the proposed cancellation ceiling for that contract to
the committees on armed services and appropriations of the
House of Representatives and Senate. The contract may not
be awarded until the thirty-first day after the date of notifi-
cation.
17.109 Contract clauses.
(a) The contracting officer shall insert the clause at
52.217-2, Cancellation Under Multi-year Contracts, in
solicitations and contracts when a multi-year contract is
contemplated.
17-4 (FAC 97-02)
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PART 17SPECIAL CONTRACTING METHODS
17.203
(b) Economic price adjustment clauses. Economic price
adjustment clauses are adaptable to multi-year contracting
needs. When the period of production is likely to warrant a
labor and material costs contingency in the contract price,
the contracting officer should normally use an economic
price adjustment clause (see 16.203). When contracting for
services, the contracting officer
(1) Shall add the clause at 52.222-43, Fair Labor
Standards Act and Service Contract ActPrice Adjustment
(Multiple Year and Option Contracts), when the contract
includes the clause at 52.222-41, Service Contract Act of
1965, as amended;
(2) May modify the clause at 52.222-43 in overseas
contracts when laws, regulations, or international agree-
ments require contractors to pay higher wage rates; or
(3) May use an economic price adjustment clause
authorized by 16.203, when potential fluctuations require
coverage and are not included in cost contingencies pro-
vided for by the clause at 52.222-43.
Subpart 17.2Options
17.200 Scope of subparL
This subpart prescribes policies and procedures for the
use of option solicitation provisions and contract clauses.
Except as provided in agency regulations, this subpart does
not apply to contracts for (a) services involving the con-
struction, alteration, or repair (including dredging,
excavating, and painting) of buildings, bridges, roads, or
other kinds of real property; (b) architect-engineer services;
and (c) research and development services. However, it
does not preclude the use of options in those contracts.
17201 Definition.
"Option" means a unilateral right in a contract by which,
for a specified time, the Government may elect to purchase
additional supplies or services called for by the contract, or
may elect to extend the term of the contract.
17202 Use of options.
(a) Subject to the limitations of paragraphs (b) and (c) of
this section, for both sealed bidding and contracting by
negotiation, the contracting officer may include options in
contracts when it is in the Government's interest. When
using sealed bidding, the contracting officer shall make a
written determination that there is a reasonable likelihood
that the options will be exercised before including the pro-
vision at 52.217-5, Evaluation of Options, in the
solicitation. (See 17.207(f) with regard to the exercise of
options.)
(b) Inclusion of an option is normally not in the
Government's interest when, in the judgment of the con-
tracting officer
(1) The foreseeable requirements involve
(i) Minimum economic quantities (Le., quantities
large enough to permit the recovery of startup costs and the
production of the required supplies at a reasonable price);
and
(ii) Delivery requirements far enough into the
future to permit competitive acquisition, production, and
delivery.
(2) An indefinite quantity or requirements contract
would be more appropriate than a contract with options.
However, this does not preclude the use of an indefinite
quantity contract or requirements contract with options.
(c) The contracting officer shall not employ options if
(1) The contractor will incur undue risks; e.g., the
price or availability of necessary materials or labor is not
reasonably foreseeable;
(2) Market prices for the supplies or services involved
are likely to change substantially; or
(3) The option represents known firm requirements
for which funds are available unless
(i) The basic quantity is a learning or testing quan-
tity; and
(ii) Competition for the option is impracticable
once the initial contract is awarded.
(d) In recognition of
(1) The Government's need in certain service con-
tracts for continuity of operations; and
(2) The potential cost of disrupted support, options
may be included in service contracts if there is an antici-
pated need for a similar service beyond the first contract
period.
17203 Solicitations.
(a) Solicitations shall include appropriate option provi-
sions and clauses when resulting contracts will provide for
the exercise of options (see 17.208).
(b) Solicitations containing option provisions shall state
the basis of evaluation, either exclusive or inclusive of the
option and, when appropriate, shall inform offerers that it is
anticipated that the Government may exercise the option at
time of award.
(c) Solicitations normally should allow option quantities
to be offered without limitation as to price, and there shall
be no limitation as to price if the option quantity is to be
considered in the evaluation for award (see 17.206).
(d) Solicitations that allow the offer of options at unit
prices which differ from the unit prices for the basic require-
ment shall state that offerers may offer varying prices for
options, depending on the quantities actually ordered and
the dates when ordered.
(e) If it is anticipated that the Government may exercise
an option at the time of award and if the condition specified
in paragraph (d) above applies, solicitations shall specify
(FAC 95-15) 17-5
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FAC 97-15 FEBRUARY 25,2000
17.204
FEDERALACQUISITION REGULATION
the price at which the Government will evaluate the option
(highest option price offered or option price for specified
requirements).
(f) Solicitations may, in unusual circumstances, require
that options be offered at prices no higher than those for the
initial requirement; e.g., when
(1) The option cannot be evaluated under 17.206; or,
(2) Future competition for the option is impracticable.
(g) Solicitations that require the offering of an option at
prices no higher than those for the initial requirement
shall
(1) Specify that the Government will accept an offer
containing an option price higher than the base price only if
the acceptance does not prejudice any other offerer, and
(2) Limit option quantities for additional supplies to
not more than 50 percent of the initial quantity of the same
contract line item. In unusual circumstances, an authorized
person at a level above the contracting officer may approve
a greater percentage of quantity.
(h) Include the value of options in determining if the
acquisition will exceed the Trade Agreements Act and North
American Free Trade Agreement thresholds.
17.204 Contracts.
(a) The contract shall specify limits on the purchase of
additional supplies or services, or the overall duration of the
term of the contract including any extension.
(b) The contract shall state the period within which the
option may be exercised.
(c) The period shall be set so as to provide the contractor
adequate lead time to ensure continuous production.
(d) The period may extend beyond the contract comple-
tion date for service contracts. This is necessary for
situations when exercise of the option would result in the
obligation of funds that are not available in the fiscal year in
which the contract would otherwise be completed.
(e) Unless otherwise approved in accordance with
agency procedures, the total of the basic and option periods
shall not exceed 5 years in the case of services, and the total
of the basic and option quantities shall not exceed the
requirement for 5 years in the case of supplies. These limi-
tations do not apply to information technology contracts.
However, statutes applicable to various classes of contracts,
for example, the Service Contract Act (see 22.1002-1), may
place additional restrictions on the length of contracts.
(f) Contracts may express options for increased quanti-
ties of supplies or services in terms of
(1) Percentage of specific line items,
(2) Increase in specific line items; or
(3) Additional numbered line items identified as the
option.
(g) Contracts may express extensions of the term of the
contract as an amended completion date or as additional
time for performance; e.g., days, weeks, or months.
17.205 Documentation.
(a) The contracting officer shall justify in writing the
quantities or the term under option, the notification period
for exercising the option, and any limitation on option price
under 17.203(g); and shall include the justification docu-
ment in the contract file.
(b) Any justifications and approvals and any determina-
tion and findings required by Pan 6 shall specify both the
basic requirement and the increase permitted by the option.
17.206 Evaluation.
(a) In awarding the basic contract, the contracting officer
shall, except as provided in paragraph (b) of this section,
evaluate offers for any option quantities or periods con-
tained in a solicitation when it has been determined prior to
soliciting offers that the Government is likely to exercise the
options. (See 17.208.)
(b) The contracting officer need not evaluate offers for
any option quantities when it is determined that evaluation
would not be in the best interests of the Government and
this determination is approved at a level above the contract-
ing officer. An example of a circumstance that may support
a determination not to evaluate offers for option quantities
is when there is a reasonable certainty that funds will be
unavailable to permit exercise of the option.
17.207 Exercise of options.
(a) When exercising an option, the contracting officer
shall provide written notice to the contractor within the time
period specified in the contract.
(b) When the contract provides for. economic price
adjustment and the contractor requests a revision of the
price, the contracting officer shall determine the effect of
the adjustment on prices under the option before the option
is exercised.
(c) The contracting officer may exercise options only
after determining that
(1) Funds are available;
(2) The requirement covered by the option fulfills an
existing Government need;
(3) The exercise of the option is the most advanta-
geous method of fulfilling the Government's need, price and
other factors (see paragraphs (d) and (e) of this section) con-
sidered; and
(4) The option was synopsized in accordance with
Part 5 unless exempted by 5.202(a)(l 1) or other appropriate
exemptions in 5.202.
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FAC 97-14 NOVEMBER 23,1999
PART 17SPECIAL CONTRACTING METHODS
17.208
(d) The contracting officer, after considering price and
other factors, shall make the determination on the basis of
one of the following:
(1) Anew solicitation fails to produce a better price or
a more advantageous offer than that offered by the option.
If it is anticipated that the best price available is the option
price or that this is the more advantageous offer, the con-
tracting officer should not use this method of testing the
market
(2) An informal analysis of prices or an examination
of the market indicates that the option price is better than
prices available in the market or that the option is the more
advantageous offer.
(3) The time between the award of the contract con-
taining the option and the exercise of the option is so short
that it indicates the option price is the lowest price obtain-
able or the more advantageous offer. The contracting officer
shall take into consideration such factors as market stability
and comparison of the time since award with the usual dura-
tion of contracts for such supplies or services.
(e) The determination of other factors under (c)(3) of this
section should take into account the Government's need for
continuity of operations and potential costs of disrupting
operations.
(f) Before exercising an option, the contracting officer
shall make a written determination for the contract file that
exercise is in accordance with the terms of the option, the
requirements of this section, and Part 6. To satisfy require-
ments of Part 6 regarding full and open competition, the
option must have been evaluated as part of the initial com-
petition and be exercisable at an amount specified in or
reasonably determinable from the terms of the basic con-
tract, e.g.
(1) A specific dollar amount;
(2) An amount to be determined by applying provi-
sions (or a formula) provided in the basic contract, but not
including renegotiation of the price for work in a fixed-price
type contract;
(3) In the case of a cost-type contract, if
(i) The option contains a fixed or maximum fee; or
(ii) The fixed or maximum fee amount is deter-
minable by applying a formula contained in the basic
contract (but see 16.102(c));
(4) A specific price that is subject to an economic
price adjustment provision; or
(5) A specific price that is subject to change as the
result of changes to prevailing labor rates provided by the
Secretary- of Labor.
(g) The contract modification or other written document
which notifies the contractor of the exercise of the option
shall cite the option clause as authority.
17.208 Solicitation provisions and contract clauses.
(a) Insert a provision substantially the same as the provi- j
sion at 52.217-3, Evaluation Exclusive of Options, in
solicitations when the solicitation includes an option clause
and does not include one of the provisions prescribed in
paragraph (b) or (c) of this section.
(b) Insert a provision substantially the same as the provi- J
sion at 52.217-4, Evaluation of Options Exercised at Time
of Contract Award, in solicitations when the solicitation
includes an option clause, the contracting officer has deter-
mined that there is a reasonable likelihood that the option
will be exercised, and the option may be exercised at the
time of contract award.
(c) Insert a provision substantially the same as the provi- |
sion at 52.217-5, Evaluation of Options, in solicitations
when
(1) The solicitation contains an option clause;
(2) An option is not to be exercised at the time of con-
tract award;
(3) A firm-fixed-price contract, a fixed-price contract
with economic price adjustment, or other type of contract
approved under agency procedures is contemplated; and
(4) The contracting officer has determined that there
is a reasonable likelihood that the option will be exercised.
For sealed bids, the determination shall be in writing.
(d) Insert a clause substantially the same as the clause at ]
52.217-6, Option for Increased Quantity, in solicitations and
contracts, other than those for services, when the inclusion
of an option is appropriate (see 17.200 and 17.202) and the
option quantity is expressed as a percentage of the basic
contract quantity or as an additional quantity of a specific
line item.
(e) Insert a clause substantially the same as the clause at |
52.217-7, Option for Increased QuantitySeparately
Priced Line Item, in solicitations and contracts, other than
those for services, when the inclusion of an option is appro-
priate (see 17.200 and 17.202) and the option quantity is
identified as a separately priced line item having the same
nomenclature as a corresponding basic contract line item.
(0 Insert a clause substantially the same as the clause at |
52.217-8, Option to Extend Services, in solicitations and
contracts for services when the inclusion of an option is
appropriate. (See 17.200,17.202, and37.111.)
(g) Insert a clause substantially the same as the clause at
52.217-9, Option to Extend the Term of the Contract, in
solicitations and contracts when the inclusion of an option
is appropriate (see 17.200 and 17.202) and it is necessary to
include in the contract any or all of the following:
(1) A requirement that the Government must give the
contractor a preliminary written notice of its intent to extend
the contract.
(2) A statement that an extension of the contract
includes an extension of the option.
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FAC 97-14 NOVEMBER 23,1999
17.401
FEDERALACQUIS1TION REGULATION
(3) A specified limitation on the total duration of the
contract
Subpart 17 3[Reserved]
Subpart 17.4Leader Company Contracting
17.401 General.
Leader company contracting is an extraordinary acquisi-
tion technique that is limited to special circumstances and
utilized only when its use is in accordance with agency pro-
cedures. A developer or sole producer of a product or
system is designated under this acquisition technique to be
the leader company, and to furnish assistance and know-
how under an approved contract to one or more designated
follower companies, so they can become a source of supply.
The objectives of this technique are one or more of the fol-
lowing:
(a) Reduce delivery time.
(b) Achieve geographic dispersion of suppliers.
(c) Maximize the use of scarce tooling or special equip-
ment.
(d) Achieve economies in production.
(e) Ensure uniformity and reliability in equipment, com-
patibility or standardization of components, and
interchangeability of parts.
(f) Eliminate problems in the use of proprietary data that
cannot be resolved by more satisfactory solutions.
(g) Facilitate the transition from development to produc-
tion and to subsequent competitive acquisition of end items
or major components.
17.402 Limitations.
(a) Leader company contracting is to be used only
when
(1) The leader company has the necessary production
know-how and is able to furnish required assistance to the
followers);
(2) No other source can meet the Government's
requirements without the assistance of a leader company;
(3) The assistance required of the leader company is
limited to that which is essential to enable the followers) to
produce the items; and
(4) Its use is authorized in accordance with agency
procedures.
(b) When leader company contracting is used, the
Government shall reserve the right to approve subcontracts
between the leader company and the followers).
17.403 Procedures.
(a) The contracting officer may award a prime contract to
(1) Leader company, obligating it to subcontract a
designated portion of the required end items to a specified
follower company and to assist it to produce the required
end items;
(2) Leader company, for the required assistance to a
follower company, and a prime contract to the follower for
production of the items; or
(3) Follower company, obligating it to subcontract
with a designated leader company for the required assis-
tance.
(b) The contracting officer shall ensure that any contract
awarded under this arrangement contains a firm agreement
regarding disclosure, if any, of contractor trade secrets,
technical designs or concepts, and specific data, or software,
of a proprietary nature.
Subpart 17.5Interagency Acquisitions
Under the Economy Act
17.500 Scope of subpart.
(a) This subpart prescribes policies and procedures
applicable to interagency acquisitions under the Economy
Act (31 U.S.C. 1535). The Economy Act also provides
authority for placement of orders between major organiza-
tional units within an agency; procedures for such
intra-agency transactions are addressed in agency regula-
tions.
(b) The Economy Act applies when more specific statu-
tory authority does not exist. Examples of interagency
acquisitions to which the Economy Act does not apply
include acquisitions from required sources of supplies pre-
scribed in Part 8, which have separate statutory authority.
17.501 Definition.
Interagency acquisition means a procedure by which an
agency needing supplies or services (the requesting agency)
obtains them from another agency (the servicing agency).
17.502 General.
(a) The Economy Act authorizes agencies to enter into
mutual agreements to obtain supplies or services by inter-
agency acquisition.
(b) The Economy Act may not be used by an agency to
circumvent conditions and limitations imposed on the use of
funds.
(c) Acquisitions under the Economy Act are not exempt
from the requirements of Subpart 7.3, Contractor Versus
Government Performance.
(d) The Economy Act may not be used to make acquisi-
tions conflicting with any other agency's authority or
responsibility (for example, that of the Administrator of
General Services under the Federal Property and
Administrative Services Act).
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PART 17SPECIAL CONTRACTING METHODS
17.505
17.503 Determinations and findings requirements.
(a) Each Economy Act order shall be supported by a
Determination and Finding (D&F). The D&F shall state
that
(1) Use of an interagency acquisition is in the best
interest of the Government; and
(2) The supplies or services cannot be obtained as
conveniently or economically by contracting directly with a
private source.
(b) If the Economy Act order requires contracting action
by the servicing agency, the D&F shall also include a state-
ment that at least one of the following circumstances is
applicable
(1) The acquisition will appropriately be made under
an existing contract of the servicing agency, entered into
before placement of the order, to meet the requirements of
the servicing agency for the same or similar supplies or ser-
vices;
(2) The servicing agency has capabilities or expertise
to enter into a contract for such supplies or services which
is not available within the requesting agency; or
(3) The servicing agency is specifically authorized by
law or regulation to purchase such supplies or services on
behalf of other agencies.
(c) The D&F shall be approved by a contracting officer
of the requesting agency with authority to contract for the
supplies or services to be ordered, or by another official des-
ignated by the agency head, except that, if the servicing
agency is not covered by the Federal Acquisition
Regulation, approval of the D&F may not be delegated
below the senior procurement executive of the requesting
agency.
17.504 Ordering procedures.
(a) Before placing an Economy Act order for supplies or
services with another Government agency, the requesting
agency shall make the D&F required in 17.503. The ser-
vicing agency may require a copy of the D&F to be
furnished with the order.
(b) The order may be placed on any form or document
that is acceptable to both agencies. The order should
include
(1) A description of the supplies or services required;
(2) Delivery requirements;
(3) A funds citation;
(4) A payment provision (see 17.505); and
(5) Acquisition authority as may be appropriate (see
17.504(d)).
(c) The requesting and servicing agencies should agree to
procedures for the resolution of disagreements that may
arise under interagency acquisitions, including, in appropri-
ate circumstances, the use of a third-party forum. If a third
party is proposed, consent of the third party should be
obtained in writing.
(d) When an interagency acquisition requires the servic-
ing agency to award a contract, the following procedures
also apply:
(1) If a justification and approval or a D&F (other
than the requesting agency's D&F required in 17.503) is
required by law or regulation, the servicing agency shall
execute and issue the justification and approval or D&F.
The requesting agency shall furnish the servicing agency
any information needed to make the justification and
approval or D&F.
(2) The requesting agency shall also be responsible
for furnishing other assistance that may be necessary, such
as providing information or special contract terms needed to
comply with any condition or limitation applicable to the
funds of the requesting agency.
(3) The servicing agency is responsible for compli-
ance with all other legal or regulatory requirements
applicable to the contract, including (i) having adequate
statutory authority for the contractual action, and (ii) com-
plying fully with the competition requirements of Part 6
(see 6.002). However, if the servicing agency is not subject
to the Federal Acquisition Regulation, the requesting
agency shall verify that contracts utilized to meet its
requirements contain provisions protecting the Government
from inappropriate charges (for example, provisions man-
dated for FAR agencies by Pan 31), and that adequate
contract administration will be provided.
(e) Nonsponsoring Federal agencies may use a Federally
Funded Research and Development Center (FFRDC) only if
the terms of the FFRDC's sponsoring agreement permit
work from other than a sponsoring agency. Work placed
with the FFRDC is subject to the acceptance by the sponsor
and must fall within the purpose, mission, general scope of
effort, or special competency of the FFRDC. (See 35.017;
see also 6.302 for procedures to follow where using other
than full and open competition.) The nonsponsoring agency
shall provide to the sponsoring agency necessary documen-
tation that the requested work would not place the FFRDC
in direct competition with domestic private industry.
17.505 Payment
(a) The servicing agency may ask the requesting agency,
in writing, for advance payment for all or part of the esti-
mated cost of furnishing the supplies or services.
Adjustment on the basis of actual costs shall be made as
agreed to by the agencies.
(b) If approved by the servicing agency, payment for
actual costs may be made by the requesting agency after the
supplies or services have been furnished.
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17.600
FEDERAL ACQUISITION REGULATION
(c) Bills rendered or requests for advance payment shall
not be subject to audit or certification in advance of pay-
ment.
(d) If the Economy Act order requires use of a contract
by the servicing agency, then in no event shall the servicing
agency require, or the requiring agency pay, any fee or
charge in excess of the actual cost (or estimated cost if the
actual cost is not known) of entering into and administering
the contract or other agreement under which the order is
filled.
Subpart 17.6Management and Operating
Contracts
17.600 Scope of subpart.
This subpart prescribes policies and procedures for man-
agement and operating contracts for the Department of
Energy and any other agency having requisite statutory
authority.
17.601 Definition.
"Management and operating contract" means an agree-
ment under which the Government contracts for the
operation, maintenance, or support, on its behalf, of a
Government-owned or -controlled research, development,
special production, or testing establishment wholly or prin-
cipally devoted to one or more major programs of the
contracting Federal agency.
17.602 Policy.
(a) Heads of agencies, with requisite statutory author-
ity,may determine in writing to authorize contracting
officers to enter into or renew any management and operat-
ing contract in accordance with the agency's statutory
authority, or the Competition in Contracting Act of 1984,
and the agency's regulations governing such contracts. This
authority shall not be delegated. Every contract so autho-
rized shall show its authorization upon its face.
(b) Agencies may authorize management and operating
contracts only in a manner consistent with the guidance of
this subpart and only if they are consistent with the situa-
tions described in 17.604.
(c) 'Within 2 years of the effective date of this regulation,
agencies shall review their current contractual arrangements
in the light of the guidance of this subpart, in order to
(1) Identify, modify as necessary, and authorize man-
agement and operating contracts; and
(2) Modify as necessary or terminate contracts not so
identified and authorized, except mat any contract with less
than 4 years remaining as of the effective date of this regu-
lation need not be terminated, nor need it be identified,
modified, or authorized unless it is renewed or its terms are
substantially renegotiated.
17.603 Limitations.
(a) Management and operating contracts shall not be
authorized for
(1) Functions involving the direction, supervision, or
control of Government personnel, except for supervision
incidental to training;
(2) Functions involving the exercise of police or reg-
ulatory powers in the name of the Government, other than
guard or plant protection services;
(3) Functions of determining basic Government poli-
cies;
(4) Day-to-day staff or management functions of die
agency or of any of its elements; or
(5) Functions that can more properly be accomplished
in accordance with Subpart 45.3, Providing Government
Property to Contractors.
(b) Since issuance of an authorization under 17.602(a) is
deemed sufficient proof of compliance with paragraph (a)
immediately above, nothing in paragraph (a) immediately
above shall affect the validity or legality of such an autho-
rization.
17.604 Identifying management and operating
contracts.
A management and operating contract is characterized
both by its purpose (see 17.601) and by the special relation-
ship it creates between Government and contractor. The
following criteria can generally be applied in identifying
management and operating contracts:
(a) Government-owned or -controlled facilities must be
utilized; for instance
(1) In the interest of national defense or mobilization
readiness;
(2) To perform the agency's mission adequately; or
(3) Because private enterprise is unable or unwilling
to use its own facilities for the work.
(b) Because of the nature of the work, or because it is to
be performed in Government facilities, the Government
must maintain a special, close relationship with the contrac-
tor and the contractor's personnel in various important areas
(e.g., safety, security, cost control, site conditions).
(c) The conduct of the work is wholly or at least sub-
stantially separate from the contractor's other business, if
any.
(d) The work is closely related to the agency's mission
and is of a long-term or continuing nature, and there is a
need
(1) To ensure its continuity; and
(2) For special protection covering the orderly transi-
tion of personnel and work in the event of a change in
contractors.
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PART 17SPECIAL CONTRACTING METHODS
17.605
17.605 Award, renewal, and extension.
(a) Effective work performance under management and
operating contracts usually involves high levels of expertise
and continuity of operations and personnel. Because of pro-
gram requirements and the unusual (sometimes unique)
nature of the work performed under management and oper-
ating contracts, the Government is often limited in its ability
to effect competition or to replace a contractor. Therefore
contracting officers should take extraordinary steps before
award to assure themselves that the prospective contractor's
technical and managerial capacity are sufficient, that orga-
nizational conflicts of interest are adequately covered, and
that the contract will grant the Government broad and con-
tinuing rights to involve itself, if necessary, in technical and
managerial decisionmaking concerning performance.
(b) The contracting officer shall review each manage-
ment and operating contract, following agency procedures,
at appropriate intervals and at least once every 5 years. The
review should determine whether meaningful improvement
in performance or cost might reasonably be achieved. Any
extension or renewal of an operating and management con-
tract must be authorized at a level within the agency no
lower than the level at which the original contract was
authorized in accordance with 17.602(a).
(c) Replacement of an incumbent contractor is usually
based largely upon expectation of meaningful improvement
in performance or cost. Therefore, when reviewing contrac-
tor performance, contracting officers should consider
(1) The incumbent contractor's overall performance,
including, specifically, technical, administrative, and cost
performance;
(2) The potential impact of a change in contractors on
program needs, including safety, national defense, and
mobilization considerations; and
(3) Whether it is likely that qualified offerers will
compete for the contract.
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Appendix K
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Legal Opinion Regarding the Use of Interagency Agreements Page 1 of 7
gal Opinion Regarding the Use of
Interagency Agreements
Document ID Number: Signer: Kenneth R. Pakula Signature Date: 07/29/97 Revision Date:
Category: Interagency Agreement Documents
MEMORANDUM
SUBJECT: Legal Opinion Regarding the Use of Interagency Agreements
FROM: Kenneth R Pakula
Procurement Practice Group
Finance and Operations Law Office
THRU: Howard F. Corcoran
Deputy Associate General Counsel
Finance and Operations Law Office
TO: Beth Craig
Director
Office of Grants and Debarment
By memorandum dated July 29, 1997 you requested a legal opinion regarding the use of
interagency agreements (LAGs) to obtain the services of other agencies' contractors. The following
responds, in corresponding order, to the specific questions raised in your memorandum.
I. Economy Act lAGs
Question No. 1: What are the legal restrictions relating to the extent that EPA can access another
Agency's contractor to obtain goods and services under the Economy Act? Has the Reinvention
Initiative or any other recent ruling eased or eliminated restrictions in this area?
Answer: Inter-agency ordering is authorized by the Economy Act, 31 U.S.C. § 1535, which
provides:
(a) The head of an agency or major organizational unit within an agency may place an order with a
major organizational unit within the'same agency or another agency for goods or services if -
(1) amounts are available;
(2) the head of the ordering agency or unit decides the order is in the best
interest of the United States .Government;
(3) the agency or unit to fill the order is able to provide or get by contract the
ordered goods or services; and
(4) the head of the agency decides ordered goods or services cannot be provided
by contract as conveniently or cheaply by a commercial enterprise.
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In section 1074 of the Federal Acquisition Streamlining Act of 1994, P.L. 103-355 (FASA),
Congress mandated that regulations be promulgated to control the use of Economy Act LAGs for
contracting. Specifically, section 1074(b) of FASA required that the Federal Acquisition
Regulation (FAR) be revised to:
(1) require that each purchase described in subsection (a) [of § 1074] be approved in advance by a
contracting officer of the ordering agency with authority to contract for the goods or services to be
purchased or by another official in a position specifically designated by regulation to approve such
a purchase;
(2) provide that such a purchase of goods or services may be made only if
(A) the purchase is appropriately made under a contract that the agency filling the
purchase order entered into, before the purchase order, in order to meet the
requirements of such agency for the same or similar goods or services;
(B) the agency filling the purchase order is better qualified to enter into or
administer the contract for such goods or services by reason of capabilities or
expertise that is not available within the ordering agency; or
(C) the agency or unit filling the order is specifically authorized by law or
regulations to purchase such goods or services on behalf of other agencies;
(3) prohibit any such purchase under a contract or other agreement entered into or administered by
an agency not covered by the provisions of chapter 137 of title 10, United States Code, or title HI
of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.) and not
covered by the Federal Acquisition Regulation unless the purchase is approved in advance by the
senior procurement official responsible for purchasing by the ordering agency; and
(4) prohibit any payment to the agency filling a purchase order of any fee that exceeds the actual
cost or, if the actual cost is not known, the estimated cost of entering into and administering the
contract or other agreement under which the order is filled.
FAR Subpart 17.5 was amended to implement section 1074 of FASA. See Federal Acquisition
Circular 90-33 (60 Fed. Reg. 49706, Sept. 26, 1995). FAR § 17.503, entitled "Determinations and
Findings requirements", provides:
(a) Each Economy Act order shall be supported by a Determination and Finding (D&F). The D&F
shall state that
(1) Use of an interagency acquisition is in the best interest of the Government; and
(2) The supplies or services cannot be obtained as conveniently or economically
by contracting directly with a private source.
(b) If the Economy Act order requires contracting action by the servicing agency, the D&F shall
also include a statement that at least one of the following circumstances is applicable-
(1) The acquisition will appropriately be made under an existing contract of the
servicing agency, entered into before placement of the order, to meet the
requirements of the servicing agency for the same or similar supplies or
services;
(2) The servicing agency has capabilities or expertise to enter into a contract for
such supplies or services which is not available within the requesting agency; or
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(3) The servicing agency is specifically authorized by law or regulation to
purchase such supplies or services on behalf of other agencies.
(c) The D&F shall be approved by a contracting officer of the requesting agency with authority to
contract for the supplies or services to be ordered, or by another official designated by the agency
head
In light of the above, if EPA seeks to access another agency's contractor pursuant to an Economy
Act LAG, it may do so only in accordance with the requirements of the Act, 31 U.S.C.
§ 1535, and the related procedures in FAR § 17.503 (including a determination that the LAG would
be in the Government's best interest).
You have also asked whether the Reinvention Initiative has eased restrictions for Economy Act
LAGs. In regard to procurement reform, Vice President Gore summarized his reinvention agenda
as follows: (1) move from rigid rules to guiding principles; (2) get bureaucracy out of the way; (3)
give managers more authority and accountability; (4) give line managers expanded access to
competitive sources of supply; and (5) foster competition, commercial practices, and excellence in
vendor performance. Government response to the reinvention agenda has resulted in significant
changes in the acquisition arena. These changes have been largely implemented through the
passage of the Federal Acquisition Reform Act of 1996 (FARA) and the Information Technology
Management Reform Act of 1996 (ITMRA), now jointly known as the Clinger-Cohen Act.
Although the Clinger-Cohen Act has fostered the development of a streamlined acquisition process,
it has not eased or eliminated the restrictions imposed by FAS A
§ 1074(b). Thus, while it may now be less burdensome and time consuming for agencies to
procure goods or services, the ability of one agency to access another agency's contractor pursuant
to an Economy Act LAG is still subject to the requirements of §1074(b).
Question No. 2: If an EPA Program Office needs goods or services and there is no EPA contract
in place to provide them, can the EPA Program Office procure the goods or services under another
Agency's contract by setting up an Economy Act LAG with that Agency? If legal, what conditions
must be met to do so? If appropriate, please also discuss the use of Government Wide Acquisition
Contracts (and any other contracts that may fall under the Economy Act).
Answer: If an EPA program office requires goods or services and there is no EPA contract in place
to provide the requisite services, a program office may legally obtain the services in accordance
with an Economy Act LAG provided that the.requirements of 15 U.S.C. § 1535 are met and the
procedures in FAR Subpart 17.5. are followed.
In regard to the requirements of 15 U.S.C. § 1535, the legislative history of this provision
indicates that Congress intended that one agency use this authority to purchase services from
another to effect "substantial economies" in proper cases. 67 Comp. Gen. 254 at 258 citing H. R.
Rep. No. 1126, 72nd Cong., 1st Sess. 15. Such a situation exists where services can be "furnished
by another department at less cost or more conveniently than the department ordering the
services." Id. In ascertaining whether one agency's determination to use an LAG to access another
agency's contract is permissible, i.e., less costly or more convenient than if provided by a
commercial enterprise, the Comptroller General examines whether the ordering agency had a
reasonable basis for such a determination. See for e.g., Liebert Corporation, 70 Comp. Gen 448 at
454 (1991), 91-1 CPD ^ 413, wherein GAO, in addressing a protest of the Federal Aviation
Administration's (FAA's) use of an Air Force contract, stated:
The protester argues that under the Economy Act, the FAA could not reasonably determine that its
requirements could not 'be provided by contract as conveniently or cheaply by a commercial
enterprise.' In support of this contention, the protester has submitted copies of recent Federal
Supply Schedule contracts to demonstrate that prices for [uninterruptable power systems] are far
more competitive than at the time of the original Air Force competition. At the time of the original
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competition, 18 months prior to the execution of the interagency agreement, [the protester's] prices
were less than half of the prices submitted by its competitors including [the parent corporation of
the Air Force's contractor]. In making its determination [to access the Air Force contract through
an IAG], the FAA considered the results'of t^is competition and relied upon engineering estimates
provided by its technical personnel. While prices now may be more competitive, nothing in this
record establishes that the agency was un
reasonable in concluding that [the Air Force contract] was likely to be cheaper and more
convenient than a separate agreement. [Emphasis added].
The protester in Liebert also argued that the FAA expressed a concern with "avoiding the risks
associated with a separate procurement,"rwhich the protester considered to be an improper basis
for entering into an interagency agreement. In response, GAO stated that: "[s]o long as the agency
makes the appropriate determination supported by reasonable findings of fact, there is nothing
wrong with the agency's consideration of administrative convenience or procurement risks. Id. at
note 5 citing generally, National Gateway Telecom, Inc. v. Aldridge, 701 F. Supp. 1104 at 1111
(D.N.J. 1988).
In light of the above, EPA's use of an Economy Act LAG to access another agency's contract will
be upheld by the Comptroller General or a reviewing court if the procedures of FAR Subpart 17.5
are followed, and the Agency has a reasonable basis for concluding under the Economy Act that
use of the LAG will be cheaper or more convenient than an EPA contract.
In response to your query regarding the use of Government-wide Acquisition Contracts or
GWACs, note that they are indefinite delivery /indefinite quantity (LDIQ) contracts for various
information technology resources negotiated, awarded, and administered by one particular agency
but available to other Federal agencies for purchases. Although an LAG is not required when
accessing a GWAC, an ordering agency should ensure that the requisite documentation exists to
ensure an appropriate funding obligation. Note also that each GWAC has its own particular rules
and conditions. Accordingly, each GWAC should be consulted for details. See FAR § 8.001
regarding order of precedence for ordering from Government supply sources (GWACS fall behind
the Federal schedule program).
Question No. 3: Aside from FAS A, which mandates that our Director of Acquisition Management
or designee sign off on all Economy Act lAGs that will obtain goods or services under other
agencies' contracts, are there other Federal procurement or appropriation laws or related
regulations which add requirements which we must adhere to in these areas?
Answer: Generally speaking, an agency that is acquiring goods or services from another agency
pursuant to an Economy Act LAG, is not required to "look behind" the servicing agency's
procurement to ensure that it was conducted in accordance with all applicable procurement laws
and regulations. This issue is succinctly addressed in FAR § 17.504(d)(3):
The servicing agency is responsible for compliance with all other legal or regulatory requirements
applicable to the contract, including (i) having adequate statutory authority for the contractual
action, and (ii) complying fully with the competition requirements of Part 6 (see 6.002). However,
if the servicing agency is not subject to the Federal Acquisition Regulation, the requesting agency
shall verify that contracts utilized to meet its requirements contain provisions protecting the
Government from inappropriate charges... and that adequate contract administration will be
provided.
Thus, if the servicing agency is subject to the FAR, its procurements must be conducted under the
legal requirements applicable to all Federal procurements. These requirements include the Federal
Property and Administrative Services Act of 1949, the Competition in Contracting Act (CICA)
FASA, FARA, and the FAR. If the servicing agency is not subject to the FAR, it is incumbent'
upon the requesting agency to ensure that the Government is protected from inappropriate charges
and that adequate contract administration will be provided by the servicing agency.
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Question No. 4: If EPA has a contract in place to procure particular goods or services, can an EPA
Program Office employ an IAG to access another Agency's contract to provide the good or
service? If so, what additional requirements must be met, if any. Would this be a violation of the
Competition in Contracting Act?
Answer: In accordance with FAR § 17.503, prior to placing an order with another agency pursuant
to an LAG, the ordering agency must first make a D&F that the use of an LAG is in the best interest
of the Government and the supplies or services cannot be obtained as conveniently or economically
by contracting directly with a private source. Economy Act orders requiring contract action by the
performing agency must also include a statement that: (1) the acquisition will appropriately be
made under an existing contract of the performing agency, entered into before placement of the
order, to meet the requirements of the performing agency for the same or similar services; (2) the
performing agency has capabilities or expertise to enter into a contract for such supplies or services
which is not available within the requesting agency; or (3) the performing agency is specifically
authorized by law or regulation to purchase supplies or services on behalf of other agencies.
Assuming that an existing EPA contract is readily available and/or that the price of goods or
services under such a contract is reasonable, it will be difficult for the Agency in many cases to
provide an adequate justification for accessing another agency's contract pursuant to an Economy
Act LAG. There may, however, be limited circumstances where the requisite D&F could be made.
For example, EPA might have a contract in place that is about to expire but all of the necessary
work under the contract has not yet been accomplished. If the Agency still needs the services to be
performed but does not have the time, money, or personnel to conduct a full-fledged procurement,
it may be reasonable to acquire the services from another, agency's contract under an Economy Act
LAG.
Similarly, there might be a scenario where EPA already has a contract in place for services, has
met the minimum ordering requirements of the contract, but finds that the same services may be
obtained at a cheaper price by accessing another agency's contract pursuant to an Economy Act
LAG. In such a situation, if the Agency would realize cost and time savings in this manner (taking
into account any necessary termination costs), there may be adequate support for the requisite
D&F. D&Fs are very fact specific and must be addressed on a case-by-case basis. Moreover, the
focus of a D&F should be a reasonableness determination addressing convenience or economic
factors and not the desire for a particular contractor to provide the necessary goods or services.
If the requisite D&Fs could be made in a particular situation, CICA would not be violated. CICA
generally requires that, in conducting a procurement for property or services, the head of the
agency obtain full and open competition through the use of competitive procedures
unless otherwise expressly authorized by statute. 41 U.S.C. § 253(a). The Economy Act provides
for such a procedure. Liebert Corporation, 70 Comp. Gen. 448 (1991), 91-1 CPD
K 413, citing National Gateway Telecom,Jnc. v, Aldridge, 701 F. Supp. 1104, 1113 (D.NJ.
1988) (interpreting the identical provision in 10 U.S.C. § 2304(a)(l)).
Question No. 5: Certain goods and services are obtained through other agencies' contracts under
lAGs which cite neither the Economy Act nor EPA cooperation authorities. Instead, we cite
specific legislation allowing other agencies to provide the goods or services on a Government-wide
basis. Among these are the Information Technology Management [Reform] Act under which the
President has authorized GSA to provide information management services to other agencies. Are
these LAGs subject to the requirements of the Economy Act?
Answer: As noted previously, TTMRA provides for three types of IT multiagency contracts. For
multiagency contracts issued by agencies pursuant to § 5124(a)(2) of ITMRA, the requirements and
limitations of the Economy Act apply. For multiagency contracts issued by agencies pursuant to §§
5124(a)(3) and 5112(e) of ITMRA, however, the requirements and limitations of the Economy Act
do not apply. Note that ITMRA § 5112(e) specifically authorizes the Director of OMB to designate
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one or more heads of executive agencies'"as executive agent for Government-wide acquisitions of
information technology (for GWACs).The head of GSA has been designated as such. We have
consulted with GSA's Office of General Counsel and have been advised that the proper authority
supporting an agency's acquisition of IT resources from GSA's Government-wide IT resources is
ITMRA.
Question No. 6: Many lAGs are based on the authority of CERCLA and Executive Order 12580.
Are these lAGs subject to the requirements of the Economy Act?
Answer: No. EPA's longstanding position has been that §§ 105 (a)(4) and 115 of
CERCLA, as amended, in conjunction with related.Executive Orders (currently EO 12580)
implementing the Superfund program, provide authority for the Agency to enter into LAGs with
other agencies to carry-out Superfund responsibilities. See EPA Interagency Agreement Policy and
Procedures Compendium (1988).
n. Cooperation Authority LAGs
Question No. 1: As stated above, many LAGs cite EPA cooperation provisions for authority. These
LAGs are used when projects involve mutual interests and joint efforts of the agencies. In general,
are there legal restrictions relating to the-extent that EPA program offices may work with other
agencies to carry out joint projects? We riave required that the project involve a joint interest, but
do not always require the other agency to invest its funds in the project.
Answer: Although EPA may enter into jointly beneficial projects with other agencies under which
services will be procured by contract (See B-176209), there are legal restrictions applicable to such
arrangements. These restrictions were addressed in Gary Katz's September 30, 1996 memorandum
entitled "Interagency Agreement Decision Memorandum Guidance, Pre-award LAG Activities, and
Subcontractor Selection" and related attachments.
If a cooperation authority is cited as the basis for an LAG, both agencies (or several agencies) must
commit resources to the project, whether in the form of salaries, equipment, travel, contract
services, or grant funds, i.e., the other agency does not have to invest actual funds in the project
but must invest some resource.
Current EPA cooperation authorities include: Clean Water Act, § 104(b)(2); Clean Water Act §
518(e); Clean Water Act § 501(b)(funds out only); Clean Air Act § 103(b)(2); Clean Air Act § 102
(b); RCRA § 8001; RCRA § 6003; TSCA §§ 10 and 26 (latter-- funds out only); FIFRA, §§ 17
(d), 20, and 22; Marine Protection, Research and Sanctuaries Act § 203; Safe Drinking Water Act,
§ 1450(b) (funds out for services); and the National Environmental Education Act, § 4(b)(3) and 4
Question No. 2: Is there any legal requirement that cooperation LAGs be approved by the Director
of Acquisition Management or similar official?
Answer: No.
Question No. 3: Are there other Federal procurement or appropriation laws or related regulations
which we must adhere to in this area? '
Answer: The Federal Grant and Cooperative Agreement Act, 31 U.S.C. 6301 et seq., which
governs when an executive agency must use an assistance agreement versus a procurement
contract, must be complied with. In addition, if EPA is to provide contract services pursuant to a
Cooperation Authority LAG, when obtaining the contract, it must comply with all applicable
procurement laws and regulations, f.'e., CICA, FARA, FASA, the FAR, etc
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If you have any questions or comments regarding the above, please feel free to call Steve Pressman
on 260-7725 or Ken Pakula on 564-4706.
Attachment
cc: Betty Bailey
Al Pesachowitz
Ray Spears
Scott McMoran
Steve Pressman
Tom Darner
Tom Doherty
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Appendix L
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Direct Payment to Contractors under lAGs Page 1 of 6
Direct Payment to Contractors under lAGs
Document ID Number: Signer: Howard F. Corcoran Signature Date: 02/07/2000 Revision Date:
Category: Interagency Agreement Documents
February 7, 2000
MEMORANDUM
SUBJECT: Direct Payment to Contractors under Interagency Agreements
FROM: Howard F. Corcoran /s/
Deputy Associate General Counsel
Finance and Operations Law Office
TO: Bruce Feldman
Acting Director
Grants Administration Division (3903R)
I. QUESTION:
Your office asked whether EPA has the legal authority to directly pay a servicing agency's
contractor ("direct cite" payment process) pursuant to an interagency agreement (IAG).
H. ANSWER:
We are aware of no express legal prohibition against the use of direct cite payment.
However, the process increases the risk that the Agency would be held to be in privity of
contract with a servicing agency's contractor and thus, potentially liable for contract-
related costs and/or claims. To minimize that risk, if the Agency elects as a policy matter
to continue to use the process, appropriate safeguards should be included in the IAG and
the servicing agency's contract. In addition, Agency staff should strictly limit their
interaction with the servicing agency's contractor to those activities necessary to make
direct payment.
in. DISCUSSION:
In accordance with the Economy Act, 31 U.S.C. § 1535, and its implementing regulations
found in Subpart 17.505 of the Federal Acquisition Regulation (FAR), one agency may
place an order with another agency for goods or services that the servicing agency may be
in a position to supply or obtain by contract if certain conditions are met. The Economy
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Direct Payment to Contractors under lAGs Page 2 of 6
Act, 15 U.S.C § 1535(a), provides that the head of an agency or major organizational unit
within an agency may place an order with a major organizational unit within the same
agency or another agency for goods or services if
(1) amounts are available;
(2) the head of the ordering agency or unit decides the order is in the best interest of the
United States Government;
(3) the agency or unit to fill the order is able to provide or get by contract
the ordered goods or services; and
(4) the head of the agency decides ordered goods or services cannot be
provided by contract as conveniently or cheaply by a commercial enterprise.
When lAGs include contract costs, the contractor usually bills the servicing agency with
which it has a contract and the servicing agency then bills the requesting agency. See
"Interagency Agreements: Off-Loading at EPA Headquarters." Office of Inspector
General, March 31, 1995, Audit Report No. ElFMG4-13-0061-5400051,page 18. For
certain lAGs with the U.S. Army Corps of Engineers (USAGE) and the U.S. Army
National Guard, however, EPA has been directly paying the servicing agency's contractor.
This is the so-called "direct cite" payment process. This payment process has raised
concerns within EPA's Office of Inspector General that EPA is paying contractors with
whom it has no contractual relationship and that this method of payment could establish
privity of contract, or the appearance of privity, with those contractors thereby making
EPA directly liable for other unanticipated costs. The term "privity of contract" has been
defined as "that connection or relationship which exists between two or more contracting
parties." Blacks Law Dictionary (5th ed. 1983).
According to your office's March 14, 1997 memorandum, until 1991, the USAGE carried
out lAGs with EPA for Superfund work by paying its contractors from USAGE
appropriations and then obtaining reimbursement from EPA. USAGE auditors, however,
concluded that this process risked an Antideficiency Act violation and was thus,
inappropriate. USAGE subsequently altered its payment process so that it did riot pay its
contractors until payment was received from EPA. This reimbursement process, however,
resulted in many late payments and the accrual of Prompt Payment Act interest, which
subsequently was reimbursed by EPA: Consequently, EPA and USAGE agreed to
implement the direct cite payment system to avoid the accrual of interest. EPA considered,
but ultimately rejected, paying USACEJn advance because it took funds out of the Trust
Fund at an earlier date and thus reduced the amount of interest the funds would earn.
Under the direct cite system, USAGE contractors submit invoices to USAGE project
managers for approval and USAGE sends the approved contractor bills to EPA's
Cincinnati Financial Management Center (CFMC). CFMC then makes payment directly to
USACE's contractors rather than to USAGE.
An agency may only obligate funds when there is documentary evidence of the obligation,
in most cases a binding agreement. Under 31 U.S.C. 1501(a)(l), "a binding agreement
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Direct Payment to Contractors under lAGs Page 3 of 6
between an agency and another person (including an agency)" must be in writing, in a
form and for a purpose authorized by law, and be executed before the end of the period of
availability for obligation of the appropriation. Here, the lAGs executed between EPA and
USAGE meet the requirements for a binding agreement. Section 1501(a)(l) is silent as to
whom payment of obligated funds may be made and therefore does not prohibit the direct
cite payment method.
With regard specifically to lAGs, neither the Economy Act, 15 U.S.C. § 1535, nor FAR §
17.505 (Interagency Acquisitions under the Economy Act-Payment), contains language
that expressly prohibits a requesting agency from directly paying a servicing agency's
contractor. Moreover, case law indicates that the mere existence of an IAG which allows a
servicing agency's contractor to perform a service for the ultimate benefit of a requesting
agency does not, in and of itself, create a contractual relationship between the requesting
agency and the servicing agency's contractor. For example, a 1986 Comptroller General's
opinion, 65 Comp. Gen. 795, clearly stated that there is no privity between a requesting
agency and a servicing agency's contractor. In that case, the Federal Emergency
Management Agency (FEMA) and the General Services Administration (GSA) sought an
opinion from the Comptroller General regarding which agency was liable for late payment
interest penalties owed to a private contractor under the Prompt Payment Act. The
contract under which these interest penalties were incurred was entered into by GSA on
behalf of FEMA, pursuant to an IAG between the two agencies. In determining that GSA
was responsible for paying the late fees to the contractor, the Comptroller General stated
the following:
There is ... no 'privity' between FEMA and the GSA contractor. In other words, the
contractor lacks any basis on which to press a claim against FEMA because it has no
contractual relationship with FEMA. Id., at 796, citing cf., 63 Comp.Gen at 340. FEMA
did, however, have to reimburse GSA for the late fees because it.had agreed in the IAG to
pay GSA for all "business expenses".
A similar situation, although one not involving an IAG, arose in a case where the Treasury
Department was late in paying a Department of Commerce voucher to a contractor and
thus, caused the Department of Commerce to subsequently lose a prompt payment
discount. When the contractor eventually received payment, it concluded that a discount
had been improperly taken and charged back the discount on another invoice. See 63
Comp. Gen. 338. In a dispute over which party had to pay the "charged back" discount, the
Comptroller General held that the contractor could only recover from the Government
agency with which it had a contractual relationship, i.e., the Department of Commerce.
While the existence of an IAG with the USAGE does not, in and of itself, establish privity
of contract between EPA and the USAGE'S contractor, we believe that the direct cite
payment process increases the risk of privity being found under an agency theory. Even in
the absence of an express contract between parties, privity of contract can still be
established under a number of contract theories, including an implied-in-fact contract
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Direct Payment to Contractors under lAGs -Page 4 of 6
theory, a third-party beneficiary theory, or an agency theory. In this particular case, an
agency theory would be the most credible argument for the servicing contractor. Under
that theory, one could argue that USAGE is merely acting as an agent of EPA, that EPA is
the real party to the contract, and, as such, contractually bound to the USACE's servicing
contractor, and that, consequently, EPA is liable for any contract-related costs and/or
claims.
EPA can minimize the risk of privity being found by directing the involved Agency staff to
strictly limit their interaction with the servicing agency's contractor to those activities
necessary to make direct payments. The Agency staff should have no other interaction
with the contractor. EPA can also minimize the privity risk by ensuring that appropriate
provisions are included in the IAG and appropriate clauses are included in the servicing
agency's contract. Specifically, the IAG should expressly provide that USAGE is not acting
as EPA's agent and should require that the servicing agency's contract (1) state that there is
no contractual relationship and no privity between the contractor and EPA and (2) contain
standard FAR clauses directing claims and potential disputes to the servicing agency's
contracting officer. USAGE contracts generally contain standard FAR clauses 52.233-1
(Disputes) and 52-243-7 (Notification of Changes). These clauses clearly mandate that
disputes or issues regarding changes (often the subject of disputes) must.be directed only
to the USAGE Contracting Officer. For example, the Disputes Clause (FAR 52.233-1)
states, in part:
... [A]ll disputes arising under or relating to this contract shall be resolved under this
clause.... A claim by the Contractor shall be made in writing and submitted to the
Contracting Officer for a written decision.
The Notification of Changes Clause (FAR 52.243-7) reads, in part, as follows:
(a) Definitions. 'Contracting Officer,' as used in this clause, does not include any
representative of the Contracting Officer.
(b) Notice. The primary purpose of this clause is to obtain prompt reporting of
Government conduct that the Contractor considers to constitute a change to this contract
Except for changes identified as such in writing and signed by the Contracting Officer, the
Contractor shall notify the Administrative Contracting Officer in writing, promptly, within
30 calender days from the date that the Contractor identifies any Government conduct
(including actions, inactions, and written or oral communications) that the Contractor
regards as a change to the contract terms and conditions. Note that the Changes Clause for
cost-reimbursement contracts (FAR 52.243-2) states that"... [fjailure to agree to any
adjustment [in the estimated cost of, or time required for performance of any part of the
work under the contract] shall be a dispute under the Disputes clause." Thus, any failure to
agree to a change related adjustment 'automatically falls within the parameters of the
Disputes Clause, which mandates that all claims be submitted to the Contracting Officer -
in the subject case, the USAGE Contracting Officer.
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Direct Tayment to Contractors under lAGs Page 5 of 6
The language contained in the above standard FAR clauses directs claims, disputes, and
changes to the contracting officer responsible for the administration of the contract in
which the clauses are contained; for our purposes, the contract between the servicing
agency and its contractor. Thus, the contractor has no discretion regarding where to file a
claim or direct a dispute. In addition, note that jurisdictional prerequisites for a claim filed
in accordance with the Contract Disputes Act of 1978, 41 U.S.C. §§ 601-613, include the
submission of a written claim to the contracting officer and a written final decision by the
contracting officer. Accordingly, it wbuld be very difficult for a contractor to file a
successful claim with a board of contract appeals against a requesting agency (an agency
with which it has no contractual relationship) because a contracting officer's decision
would never be issued by the requesting agency.
We have informally discussed the direct cite issue with the USAGE Office of Chief
Counsel (USACE-OCC). USACE-OCC agrees with our assessment as to the apparent
absence of a legal prohibition against the direct cite payment process. USACE-OCC added
that the direct cite payment process is consistent with U.S. Army regulatory authority and
considered a normal practice in the Department of Defense services. In fact, the Defense
Finance and Accounting Service's own regulations indicate that direct cite payments are
not only acceptable but preferred. See Defense Finance and Accounting Service,
Indianapolis Center (DFAS-IN) Regulation 37-1, September 18, 1995, Chapter 12.
Chapter 12 provides guidance on the procedures to be used by the U.S. Army/DFAS
activities that perform work or sell property or services on a reimbursable basis within the
Department of Defense or to other U.S. Government agencies. Chapter 12, § 12-6(b) ,
entitled "Accepting Orders" states that U.S. Army/DFAS activities are to "[p]erform work
using the customer's funds (direct fund1 cite) and/or using the performer's funds with
reimbursement by the Customer. Direct fund cite is preferred."
IV. CONCLUSION:
The direct cite payment process does not appear to be prohibited by law, but does increase
the risk of a holding that EPA is in privity of contract with a servicing agency's contractor
and thus, potentially liable for contract related costs and/or claims. Including appropriate
clauses in the IAG and the servicing agency's contract, and restricting the interaction
between EPA staff and the contractor, should minimize the risk of a finding of privity.
If you have any questions or comments regarding the above, please feel free to contact me
on 564-5424 or Steve Pressman on 564-5439.
cc: Marty Monell, OGD (3901R)
Scott McMoran, OGD (3903R).
Betty Bailey, OAM (3801R)
Ike Joiner, OSWER (5103)
Larry Reed, OSWER (5201G)
Mark Bialek, OIG (2410)
Steve Alderton, OIG (2410)
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Direct Payment to Contractors under lAGs Page 6 of 6
Geoff Cooper, OGC
Ken Pakula, OGC
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Appendix M
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CFMC RWIAG CONTACT LIST
Fax Number: 513-487-2063
NAME
PHONE
NUMBER
RESPONSIBILITY
AREA
REIMBURSABLE (RW) IAGS:
Valarie Anderson
513-487-2082
FTTA/CRADAs,
FFCA, Regional
RW lAGs, HQ
lAGs
Connie Ely
513-487-2075
FEMA, Special
Accounts, Misc.
RWIAGs
Carol Kirby
(SEE Employee)
513-487-2038
Oil Spill lAGs
Natalie Koch
(OERR/CFMC)
513-487-2062
Oil Spill lAGs
Molly Williams
513-487-2076
BRAC, HQ lAGs,
Advance RW
lAGs, IPAs
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FINANCIAL
GUIDANCE
FOR
REIMBURSABLE
INTERAGENCY
AGREEMENTS
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1. Responsibility
The Cincinnati Financial Management Center(CFMC) is responsible for the oversight of financial
requirements for Reimbursable Interagency Agreements (RW lAG's). RW lAG's are used when
EPA receives money from a federal, state or local agency, or a foreign country for services
rendered.
2. IAG Identification Number
An IAG identification number is assigned to each agreement that is processed through a grants
office. The IAG number is located in block 1 on the EPA Form 1610-1 (Exhibit 1). The
following provides a description of the fields that are used to assign the identification number.
IAG NO.: RW89937529-01-0
RW: = Reimbursable Agreement.
89: = Agency Number. Each federal agency is assigned a two digit agency identifier by
the Dept. of Treasury. This number identifies the agency for which EPA is
performing work. The number "89" in the example refers to Dept. of Energy.
93 = IAG processed by Headquarters Grants Office
94 = IAG processed by Region 1-5 Grants Office
95 = IAG processed by Region 6-10 Grants Office
7529= Number sequentially assigned by the grants office.
01 = Order of task related to IAG
0 = This number identifies the agreement as the original action if the number equal zero
or an amendment for numbers 1-9 or alpha A-Z.
3. Reimbursable Authority
EPA annually request the apportionment of reimbursable authority from the Office of
Management and Budget (OMB). The dollars requested are obtained from information provided
by each program office before the end of the current fiscal year based on unobligated balances
from ongoing lAG's and anticipated LAG's for the new fiscal year. OMB usually approves EPA's
request prior to October 1.
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4. Initiating the Interagency Agreement
Initiation of a RWIAG should begin with the requesting agency contacting EPA to perform
work. The requesting agency should provide EPA a written agreement and a funding document.
The funding document will vary from agency to agency. For example, the Department of Defense
(DOD) normally provides a Military Interdepartmental Purchase Request (MIPR) or a Project
Order, the Department of Energy provides an Interagency Agreement (IA), and the Fish and
Wildlife Service provides a Purchase Order (PO). These funding documents, which normally
provides an identification number, are helpful when billing the agency for work performed. Also,
if the funding document does not provide the type of funding; ex: 1 year, 2 year, no year, it is
important to obtain this information. This is helpful to determine how long EPA has to use the
funding.
5. Processing the Interagency Agreement
After the initiation/negotiation of the interagency agreement, the completed package is forwarded
to the appropriate grants office for final processing and acceptance. When the review is
completed, executed copies of the agreement are distributed to the appropriate offices, i.e.,
program office, budget office, and CFMC.
6. Reimbursable Account Code Component
During the grants specialist review of the package, CFMC is contacted to obtain a unique
reimbursable account code component. The account code is assigned based on the information
provided on the interagency agreement in Block 26 on the EPA Form 1610-1. This account code
is critical to the interagency agreement and is the tracking mechanism for obligations and
expenditure incurred to perform the work of the requesting agency. This code is entered on the
final copy of the agreement. The account code component fields are as follows:
Account Code Components:
Site Name
DCN
FY
Approp.
Budget
Org.
Prg.
El.
Object
Site
Project
Cost
Org.
Obligation
7. Issuing Authority
Reimbursable authority must be issued for each IAG. Once the IAG is fully executed, the
program office enters a reprogramming request in the Integrated Financial Management System
(IFMS) by budget object class. The budget division reviews these request and weekly prepares a
reimbursable analysis which includes each allowance holder/regional offices request for authority.
When this analysis is reviewed and approved the reprogramming request are approved in IFMS
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and the authority is then reflected in the appropriate operating plan. The budget division notifies
CFMC that authority has been issued. CFMC then activates the account code in IFMS.
8. Spending Authority
When the authority is received in the program office's operating plan, funding documents to
perform work for the requesting agency can be executed. These funding documents may be a
labor distribution time sheet, travel order, procurement request for a contract or a grant order. It
is imperative that the reimbursable account code component assigned to the IAG be used on all
funding documents. Reimbursable funding may only be used to perform work in accordance with
the budget categories on the IAG.
9. Billing the Requesting Agency
CFMC reviews all reimbursable lAG's obligations/expenditures recorded against the reimbursable
account code to determine the amount to bill the requesting agency. A bill is issued when an
amount is reflected as expended in IFMS.
10. Agency Locations Codes
Agency location codes (ALC) assigned by Dept. of Treasury is essential information when billing
the other agency. This number is used when a bill is submitted using the On Line Payment and
Collection(OPAC) system. It is important to obtain this code if it is not provided on the
information received from the requesting agency.
11. CFMC's Address and Contacts
Mailing Address
EPA
Cincinnati Financial Management Center
Cincinnati, OH 45268
Contacts:
Connie Ely - 513-487-2075
Valarie Anderson - 513-487-2082
Natalie Koch -513-487-2062
Molly Williams - 513-487-2076
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Appendix N
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FINANCIAL GUIDANCE FOR
INTERAGENCY AGREEMENTS
DISBURSEMENTS
1. RESPONSIBILITY
The Cincinnati Financial Management Center (CFMC) is responsible for the oversight of financial
requirements of all Interagency Agreements (lAG's).
2. TYPES OF AGREEMENTS
Disbursement Interagency Agreements - A disbursement LAG is used when EPA pays money to
another federal agency.
3. IAG IDENTIFICATION NUMBER
The IAG identification number which is located in Block 1 of the EPA Form 1610-1 is a critical
number in the financial process of LAG's. For clarification, the following is a breakdown of the
number. EX: DW14 93.3537-01-0, DW14 94_3537-01-0, and DW14 95 3537-01-0. A brief
description of each field is listed below:
DW = Disbursement Agreement
14 = Agency Number. Each federal agency has a two digit identification number assigned by the
Dept. of Treasury. This number will change for each LAG depending on which agency is
performing services.
93 = IAG processed in Headquarters
94 = LAG processed in Regions 1-5
95 = LAG processed in Regions 6-10
3537 = This number is sequentially assigned by the Grants Office processing the agreement. (All
LAGS are filed in the CFMC by these four digits)
01 = Order of task related to IAG
0 = Original agreement. This number changes sequentially as amendments are processed to the
agreement.
1
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3.a IAG NUMBERS RECORDED IN BFMS (EPA'S FINANCIAL SYSTEM)
For HQ lAG's, the "93" is dropped from the number in Block 1 of the EPA Form 1610-1
because these two digits are standard for all HQ LAG's. IFMS will only allow ten digits to be
used for an obligating number (i.e. obligating number will be DW 14 3537 01). For Regional
lAG's, the "94" or "95" is used for the obligating number and the "01" at the end of the IAG
number is dropped from the number in Block 1 of the EPA Form 1610-1 (i.e. obligating number
will be DW 14 94 3537 or DW 14 95 3537). The obligating number is the number that is used by
CFMC on any approval forms that are sent to the Project Officer. In most cases, the bill from the
Other Agency will reference the complete IAG number and even though the IAG number on the
approval form is different, theses two numbers are for the same IAG.
4. DISBURSEMENT TNTERAGENCY AGREEMENTS
When the IAG is processed and fully executed (an agreement with all three required signatures),
the appropriate Grants Office forwards a copy to CFMC. Upon receipt, CFMC logs in the IAG,
verifies the committment, records the obligation, and establishes a file. After the agreement is
fully executed, the Other Agency may begin billing EPA,
4.a. METHODS OF PAYMENTS
There are three billing methods the Other Agency can use to receive funds from EPA.
Reimbursement - When this method is used, the Other Agency requests reimbursement of actual
costs. This bill must be submitted to CFMC for payment on a Standard Form 1080 or a Form in
lieu of that, or through an electronic transfer of funds via the OP AC (On Line Payment and
Collection) system.
Advance - This method is available to Agencies who operate using a working capital fund or with
an appropriate justification of need. Unexpended funds will be returned to EPA at completion of
work. The Other Agency must submit an invoice to request advance payment. Quarterly cost
reports must be forwarded to CFMC. The Project Officer may also request a copy of this report
for their records.
Allocation Transfer - Prior to choosing this method, CFMC should be contacted to insure that
this is the proper financial arrangement for a particular agreement. Prior approval from the
budget office is required before negotiating this type of payment. This method transfers EPA
appropriated funds to another Federal Agency and delegates to that Agency a portion of EPA's
obligation and spending authority for that appropriation. The Financial Reports and Analysis
Branch, Financial Management Division is responsible for the financial aspects of this type of
agreement.
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4.b. PROJECT OFFICER'S INTERAGENCY AGREEMENT INVOICE APPROVAL
FORM-EPA 2550-21
When CFMC receives an invoice for payment, a Project Officer Interagency Agreement Invoice
Approval Form, EPA Form 2550-21 is sent to the Project Officer (the exception would be Army
COE Superfund site specific bills which fall under the guidelines established by the MOU between
EPA and the Army COE). In addition to this form, a copy of the invoice and any additional
documentation that is provided to CFMC is also sent. If the Project Officer requires specific
information, the Project Officer needs to clarify the requirements during the LAG negotiation.
stage. The Project Officer should be provided with enough information to determine if the costs
are necessary and reasonable.
The following is a brief description of each section of the EPAForm 2550-21:
Project Officer and Address - Name and Address of the person listed in Block 9 of the EPA Form
1610-1 (This name can change as additional amendments are received)
Servicing Finance Office - Address to which all approvals should be returned to
Billing Agency - Name or abbreviation of the Agency submitting the payment request
Bill Type:
1) J080 - This type of bill is used by Agencies requesting to be paid by EPA issuing a check
(mostly used by Department of Defense Agencies). For all non DOD Agencies, DOD Agencies
other than the Army COE, and Army COE non Superfund site specific LAG's, CFMC must
receive an approved Project Officer LAG Invoice Approval Form from the Project Officer before
processing the the bill for payment. For invoices received from the US Army COE which are for
Superfund site specific LAG's, there is an MOU in place between EPA and the Army COE which
requires EPA to pay these bills within 5 days of receipt. CFMC will also receive Contractor Pay
Estimates (ENG93 or SF1034) from the Army COE for certain Superfund site specific LAG's.
These pay estimates are paid according to the Prompt Pay standards based on the Army COE
certification. CFMC will only send these bills (1080 or Pay Estimates) out to the EPA Project
Officers for approval if the bill is for a period beyond the end of the Project Period or if the bill is
marked "Final". CFMC must verify that these bills are certified by a representative of the Army
COE (CFMC maintains a file of DD form 577 signature cards for Army COE personnel who may
sign these bills as certifying officers). The Army COE is responsible for sending copies of these
bills to the EPA Project Officers and to meet with them on a quarterly basis to review any possible
billing discrepancies. For all 1080 bills and Contractor Pay Estimates, CFMC will submit these
bills to be processed by generating a Treasury check (from the Department of Treasury office in
Kansas City).
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2)OPAC - This type of payment is used to pay federal agencies other than DOD. When an
OP AC charge is reflected against CFMC's Agency Location Code (ALC) 68-01-0727, the
Treasury Department will automatically transfer funds to the requesting Agencies ALC. These
charges would be recorded in a Cash Difference Liability Account by CFMC after they have been
downloaded from the OP AC system. Each OP AC charge made by requesting ALC's is assigned a
Schedule number (CFMC internal tracking identification number). CFMC would then process an
accounting entry for each Schedule number which would reduce the Cash Difference Liability
Account and disburse funds from the accounting information on the IAG number being referenced
on the OP AC bill. A Project Officer LAG Invoice Approval form is then generated and sent to the
Project Officer for approval or disapproval. Even though the performing Agency has received
their collection of these bills, the EPA Project Officer is still required to review the bill and either
approve or disapprove the charges in a timely manner. If the charges are disapproved, CFMC will
initiate a chargeback (bill and collect the funds from the originating ALC) based on the Project
Officers explanation of disapproval and then refund the money back to the account(s) on the IAG
in question. In accordance with OP AC regulations, there is a three month time limitation from the
original bill date to charge back the billing Agency for unauthorized charges. If the Project
Officer does not receive supporting documentation for the charges being billed, they must first
make an effort to get this information from the performing Agency. If these efforts fail, then the
charges can be disapproved and charged back.
Contact - Phone number of CFMC personnel to call for LAG related questions
IAG Number - This is the IAG number as it is reflected in IFMS (EPA's Financial System).
Invoice Number - For 1080 bills, this is the bill number on the bill. For OP AC bills, this is the
Document Reference Number for the OP AC bill that is being paid. A copy of the invoice will
always be attached to the approval form when it is sent to the Project Officer.
Invoice Dale - For 1080 bills, this will indicate the date which the bill was received in CFMC. For
OP AC bills, this will be the Accomplished Date from the OP AC printout indicating the date which
the other Agency submitted their request to the OP AC system.
Site Name - This would indicate which Superfund site is being charged.
Invoice Amount - The amount of the invoice that the Other Agency has submitted
Approval for Payment - This is where the Project Officer will mark whether an invoice is to be
approved (partially or fully) or disapproved. If an invoice is to be partially approved with
suspension, the Project Officer must indicate the amount to be approved and the amount to be
disapproved. For any disapproved amounts, the Project Officer must fill in the Explanation of
Suspension/Disapproval with enough information for CFMC to explain the disapproval to the
Billing Agency. The Project Officer must also mark whether the invoice is for goods or services,
or whether the invoice is for a progress payment.
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Financial and Accounting Data - This should be completed whenever multiple funding is cited on
the IAG. The Project Officer may indicate the amount to be paid from each account. This
process also applies if payment should be distributed to multiple Superfund sites. If necessary, a
sheet can be attached to the approval with this same information if there is not enough room on
the approval form.
Certification - This is where the Project Officer would sign the approval, date it, and provide their
phone number for CFMC to call if there are any questions.
Note: The Project Officer should make a copy of the signed approval and keep it for their records.
The original copy of the approval should be returned to the CFMC. The copy of the bill that is
sent to the Project Officer can be kept by the Project Officer for their records. The original copy
of the bill will be maintained by the CFMC along with the original copy of the approval.
5. CFMC's Address and Contacts
Mailing address:
EPA, CFMC
26 W. Martin Luther King DR.
M/S002
Cincinnati, Ohio 45268-7002
Contacts:
JefFMarsala - 513-487-2056
Sandy Chapman - 513-487-2060
CFMC Fax number - 513-487-2063
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FINANCIAL GUIDANCE FOR
INTERAGENCY AGREEMENTS
DISBURSEMENTS
1. RESPONSIBILITY
The Cincinnati Financial Management Center (CFMC) is responsible for the oversight of financial
requirements of all Interagency Agreements (lAG's).
2. TYPES OF AGREEMENTS
Disbursement Interagency Agreements - A disbursement IAG is used when EPA pays money to
another federal agency.
3. IAG IDENTIFICATION NUMBER
The IAG identification number which is located in Block 1 of the EPA Form 1610-1 is a critical
number in the financial process of IAG's. For clarification, the following is a breakdown of the
number. EX: DW14 93_3537-01-0, DW14 94.3537-01-0, and DW14 95 3537-01-0. Abrief
description of each field is listed below:
DW = Disbursement Agreement
14 = Agency Number. Each federal agency has a two digit identification number assigned by the
Dept. of Treasury. This number will change for each IAG depending on which agency is
performing services.
93 = IAG processed in Headquarters
94 = IAG processed in Regions 1-5
95 = IAG processed in Regions 6-10
3537 = This number is sequentially assigned by the Grants Office processing the agreement. (All
IAGS are filed in the CFMC by these four digits)
01 = Order of task related to IAG
0 = Original agreement. This number changes sequentially as amendments are processed to the
agreement.
1
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3.a IAG NUMBERS RECORDED IN DFMS (EPA'S FINANCIAL SYSTEM)
For HQ lAG's, the "93" is dropped from the number in Block 1 of the EPA Form 1610-1
because these two digits are standard for all HQ lAG's. IFMS will only allow ten digits to be
used for an obligating number (i.e. obligating number will be DW 14 3537 01). For Regional
lAG's, the "94" or "95" is used for the obligating number and the "01" at the end of the IAG
number is dropped from the number in Block 1 of the EPA Form 1610-1 (i.e. obligating number
will be DW 14 94 3537 or DW 14 95 3537). The obligating number is the number that is used by
CFMC on any approval forms that are sent to the Project Officer. In most cases, the bill from the
Other Agency will reference the complete IAG number and even though the IAG number on the
approval form is different, theses two numbers are for the same IAG.
4. DISBURSEMENT INTERAGENCY AGREEMENTS
When the LAG is processed and fully executed (an agreement with all three required signatures),
the appropriate Grants Office forwards a copy to CFMC. Upon receipt, CFMC logs in the LAG,
verifies the committment, records the obligation, and establishes a file. After the agreement is
fully executed, the Other Agency may begin billing EPA.
4.a. METHODS OF PAYMENTS
There are three billing methods the Other Agency can use to receive funds from EPA.
Reimbursement - When this method is used, the Other Agency requests reimbursement of actual
costs. This bill must be submitted to CFMC for payment on a Standard Form 1080 or a Form in
lieu of that, or through an electronic transfer of funds via the OP AC (On Line Payment and
Collection) system.
Advance - This method is available to Agencies who operate using a working capital fund or with
an appropriate justification of need. Unexpended funds will be returned to EPA at completion of
work. The Other Agency must submit an invoice to request advance payment. Quarterly cost
reports must be forwarded to CFMC. The Project Officer may also request a copy of this report
for their records.
Allocation Transfer - Prior to choosing this method, CFMC should be contacted to insure that
this is the proper financial arrangement for a particular agreement. Prior approval from the
budget office is required before negotiating this type of payment. This method transfers EPA
appropriated funds to another Federal Agency and delegates to that Agency a portion of EPA's
obligation and spending authority for that appropriation. The Financial Reports and Analysis
Branch, Financial Management Division is responsible for the financial aspects of this type of
agreement.
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4.b. PROJECT OFFICER'S LNTERAGENCY AGREEMENT INVOICE APPROVAL
FORM-EPA 2550-21
When CFMC receives an invoice for payment, a Project Officer Interagency Agreement Invoice
Approval Form , EPA Form 2550-21 is sent to the Project Officer (the exception would be Army
COE Superfund site specific bills which fall under the guidelines established by the MOU between
EPA and the Army COE). In addition to this form, a copy of the invoice and any additional
documentation that is provided to CFMC is also sent. If the Project Officer requires specific
information, the Project Officer needs to clarify the requirements during the LAG negotiation
stage. The Project Officer should be provided with enough information to determine if the costs
are necessary and reasonable.
The following is a brief description of each section of the EPA Form 2550-21:
Project Officer and Address - Name and Address of the person listed in Block 9 of the EPA Form
1610-1 (This name can change as additional amendments are received)
Servicing Finance Office - Address to which all approvals should be returned to
Billing Agency Name or abbreviation of the Agency submitting the payment request
Bill Type:
}) 1080 - This type of bill is used by Agencies requesting to be paid by EPA issuing a check
(mostly used by Department of Defense Agencies). For all non DOD Agencies, DOD Agencies
other than the Army COE, and Army COE non Superfund site specific LAG's, CFMC must
receive an approved Project Officer IAG Invoice Approval Form from the Project Officer before
processing the the bill for payment. For invoices received from the US Army COE which are for
Superfund site specific LAG's, there is an MOU in place between EPA and the Army COE which
requires EPA to pay these bills within 5 days of receipt. CFMC will also receive Contractor Pay
Estimates (ENG93 or SF1034) from the Army COE for certain Superfund site specific LAG's.
These pay estimates are paid according to the Prompt Pay standards based on the Army COE
certification. CFMC will only send these bills (1080 or Pay Estimates) out to the EPA Project
Officers for approval if the bill is for a period beyond the end of the Project Period or if the bill is
marked "Final". CFMC must verify that these bills are certified by a representative of the Army
COE (CFMC maintains a file of DD form 577 signature cards for Army COE personnel who may
sign these bills as certifying officers). The Army COE is responsible for sending copies of these
bills to the EPA Project Officers and to meet with them on a quarterly basis to review any possible
billing discrepancies. For all 1080 bills and Contractor Pay Estimates, CFMC will submit these
bills to be processed by generating a Treasury check (from the Department of Treasury office in
Kansas City).
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2) OP AC - This type of payment is used to pay federal agencies other than DOD. When an
OP AC charge is reflected against CFMC's Agency Location Code (ALC) 68-01-0727, the
Treasury Department will automatically transfer funds to the requesting Agencies ALC. These
charges would be recorded in a Cash Difference Liability Account by CFMC after they have been
downloaded from the OP AC system. Each OP AC charge made by requesting ALC's is assigned a
Schedule number (CFMC internal tracking identification number). CFMC would then process an
accounting entry for each Schedule number which would reduce the Cash Difference Liability
Account and disburse funds from the accounting information on the IAG number being referenced
on the OP AC bill. A Project Officer IAG Invoice Approval form is then generated and sent to the
Project Officer for approval or disapproval. Even though the performing Agency has received
their collection of these bills, the EPA Project Officer is still required to review the bill and either
approve or disapprove the charges in a timely manner. If the charges are disapproved, CFMC will
initiate a chargeback (bill and collect the funds from the originating ALC) based on the Project
Officers explanation of disapproval and then refund the money back to the account(s) on the IAG
in question. In accordance with OP AC regulations, there is a three month time limitation from the
original bill date to charge back the billing Agency for unauthorized charges. If the Project
Officer does not receive supporting documentation for the charges being billed, they must first
make an effort to get this information from the performing Agency. If these efforts fail, then the
charges can be disapproved and charged back.
Contact - Phone number of CFMC personnel to call for IAG related questions
JAG Number - This is the IAG number as it is reflected in IFMS (EPA's Financial System).
Invoice Number - For 1080 bills, this is the bill number on the bill. For OP AC bills, this is the
Document Reference Number for the OP AC bill that is being paid. A copy of the invoice will
always be attached to the approval form when it is sent to the Project Officer.
Invoice Date - For 1080 bills, this will indicate the date which the bill was received in CFMC. For
OP AC bills, this will be the Accomplished Date from the OP AC printout indicating the date which
the other Agency submitted their request to the OP AC system.
Site Name - This would indicate which Superfund site is being charged.
Invoice Amount - The amount of the invoice that the Other Agency has submitted
Approval for Payment - This is where the Project Officer will mark whether an invoice is to be
approved (partially or fully) or disapproved. If an invoice is to be partially approved with
suspension, the Project Officer must indicate the amount to be approved and the amount to be
disapproved. For any disapproved amounts, the Project Officer must fill in the Explanation of
Suspension/Disapproval with enough information for CFMC to explain the disapproval to the
Billing Agency. The Project Officer must also mark whether the invoice is for goods or services,
or whether the invoice is for a progress payment.
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Financial and Accounting Data - This should be completed whenever multiple funding is cited on
the IAG. The Project Officer may indicate the amount to be paid from each account. This
process also applies if payment should be distributed to multiple Superfund sites. If necessary, a
sheet can be attached to the approval with this same information if there is not enough room on
the approval form.
Certification - This is where the Project Officer would sign the approval, date it, and provide their
phone number for CFMC to call if there are any questions.
Note: The Project Officer should make a copy of the signed approval and keep it for their records.
The original copy of the approval should be returned to the CFMC. The copy of the bill that is
sent to the Project Officer can be kept by the Project Officer for their records. The original copy
of the bill will be maintained by the CFMC along with the original copy of the approval.
5. CFMC's Address and Contacts
Mailing address:
EPA, CFMC
26 W. Martin Luther King DR.
M/S002
Cincinnati, Ohio 45268-7002
Contacts:
JeffMarsala - 513-487-2056
Sandy Chapman - 513-487-2060
CFMC Fax number - 513-487-2063
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IAG Identification Number
DW14 93 3537-01-0
. Obligated as DW14353701
DW14 94 3537-01-0
. Obligated as DW14943537
DW14 95 3537-01-0
. Obligated as DW14953537
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Bill Tyoe
1) OP AC
Non DOD Agencies
2) 1080
DOD, Army COE non S/F
Army COE S/F
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OPAC Bills
Bills downloaded from Treasury
Schedule number assigned to each bill
Post to Cash Difference Liability Account
CFMC processes payment in IFMS
Bill sent with Approval to Project Officer
Project Officer reviews bill for accuracy
Project Officer approves or disapproves
Disapproved bills charged back
Accounts adjusted if necessary
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1080 (Non S/F) Bills
Bills received at CFMC
CFMC logs in bill
CFMC prepares approval form
Approval and bill sent to Project Officer
Project Officer reviews bill for accuracy
Project Officer approves or disapproves
CFMC processes approved bills in IFMS
Disapproved bills are suspended
and returned to the Other Agency
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1080 (COE S/F) Bills
Bills received at CFMC
CFMC logs in bill
CFMC verifies IAG # and Project Period
CFMC verifies COE certification
Bills processed for payment in IFMS
Project Officer receives info from COE
Discrepancies resolved between EPA
Project Officer and COE Project Mgr.
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Disbursement IAG Processing - Origination Phase
1) The EPA Program Office and the Other Agency initiate an IAG. This is where the terms of the IAG are
developed and negotiated between the two sides.
2) The EPA Program Office would then prepare an IAG Form (1610-1) with a signature of the Decision
Official on behalf of the Program Office and a Decision Memorandum. This would be forwarded along
with a Commitment Notice to the Grants Office (GMO).
3) GMO would assign the document an IAG number, enter the appropriate data into GICS and then obtain
the necessary signature of the Action Official on behalf of EPA.
4) GMO would send the LAG with a transmittal letter to the Other Agency for their acceptance/signature.
5) The Other Agency would return the signed TAG to GMO.
6) GMO would update the IAG information in GICS and then send copies of the completed IAG to the
Program Office for their files and to the Cincinnati Financial Management Center (CFMC).
7) CFMC would verify that the IAG is signed by all three officials and then log the IAG in as an accepted
document.
8) CFMC would verify the commitment in IFMS and then obligate the funds.
9) CFMC would establish an LAG file by Region/HQ and by the 4 digit sequential IAG number.
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Disbursement IAG Processing - Execution Phase
1) The Other Agency would begin to provide the services as outlined in the IAG.
2) The EPA Project Officer would monitor the work to ensure that is in conformaiice with the terms of the
IAG.
3) The Other Agency would submit invoices to EPA according to the terms and conditions of the LAG.
4) CFMC would process the bills for payment according to the guidelines established for each type of bill
that is received (i.e. 1080 bills are processed differently than OP AC bills)
5) CFMC would post the transaction to IFMS (the timing of this posting can vary depending on the type
of the bill that is being processed).
6) CFMC would send an approval form (EPA Form 2550-21) to the Project Officer for each bill (the
exception would be Army COE Superfund site specific bills which fall under the guidelines established
by the MOU between EPA and the Army COE).
7) The Project Officer should review the invoice along with any supporting documentation that is received
from the Other Agency to determine if the costs billed are correct.
8) The Project Officer would monitor the project to determine if more funds are needed or if the Project
Period needs to be extended. If an amendment is necessary, the Project Officer should follow the steps
outlined in the Origination Phase to process the amendment.
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Disbursement IAG Processing - Closeout Phase
1) The Project Officer should contact GAD to initiate closeout of an IAG if they know that a project is
complete and that all costs have been billed and paid.
2) EPA's Closeout Policy states that all lAG's should be closed out within nine months after the end of the
Project Period. If the Project Officer has not initiated closeout procedures, GMO will begin closeout
procedures no later than 90 days after the end of the Project Period. GMO will contact CFMC to
determine the balance of funds on an IAG and to find out if there are any outstanding bills waiting to
be processed. GMO will then send a closeout certification letter to the Project Officer asking whether
they received the final report or product(s), whether the CFMC balance is correct, and whether the
Project Officer approves to close the IAG.
3) GMO will send a closeout letter to the Other Agency stating EPA's balance of funds and notify them
that this balance will be deobligated within 15 days if EPA is not notified that there is a difference in
the balance between the two Agencies. GMO will also send a copy of this letter to the EPA Project
Officer and to CFMC. GMO will then mark the IAG as closed in GICS (Administrative closeout)
4) If CFMC is not notified to suspend closeout, the funds would be deobligated in IFMS by using a
Journal Voucher (Financial Closeout).
5) If CFMC is notified of a discrepancy in the balance, they will work with the Other Agency to reconcile
the balances and then deobligate the funds after this reconciliation is complete.
6) If a bill comes in after closeout, CFMC will send the bill to the Project Officer to determine if the bill is
valid. If the Project Officer certifies the bill as valid, CFMC will reopen funds in IFMS to pay the bill.
The Project Officer should notify GMO that the final balance has now changed.
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Bill Type - OP AC
1) The OPAC (Online Payment and Collection) system is an online system operated by the Department of
Treasury for all Federal Agencies to issue bills and receive immediate collections from other Federal
Agencies.
2) These OPAC bills are charged against an Agency Location Code (ALC) which represents the Agency
and the specific office within that Agency. The ALC for CFMC is 68-01-0727.
3) The billing Agency would enter a bill online into the OPAC system to the EPA ALC of 68-01-0727
(All bills for lAG's should be billed to this ALC). CFMC would download all charges to their ALC and
assign these bills a Schedule number.
4) CFMC records all OPAC bills to the Cash Difference Liability Account and then distributes the bills
internally to be processed for payment.
5) Any supporting documentation which is received at CFMC will be forwarded if necessary to the EPA
Project Officer.
6) CFMC would verify the IAG number on the OPAC bill and then process the OPAC bill in IFMS. This
would require CFMC to make an entry in IFMS which reduces the Cash Difference Liability Account
and increases the amount of expenditures against the LAG number referenced. CFMC processes the
payments using a "first-in-first-out" method because the proper account(s) to be charged cannot be
identified by CFMC if there are multiple accounts on the LAG.
7) CFMC would then prepare a Project Officer Approval Form (Form 2550-21) and mail it to the Project
Officer along with a copy of the OPAC bill and any supporting documentation.
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8) The Project Officer is responsible for reviewing the charges to determine if they are reasonable and
accurate.
9) The Project Officer should be receiving some form of information from the Other Agency which would
allow them to verify the charges. The type of information required should be negotiated at the
origination phase of the IAG. If no information is received to verify the charges or if the information
does not match the charges billed, the Project Officer should contact the Other Agencies Project
Officer to request the necessary information for the bill to be approved.
10) Since the Other Agency has already received the payment for these charges, the Project Officer should
try to resolve any disputed charges in a timely manner (the OPAC system allows for 3 months after the
original bill date for a bill to be charged back).
11) The Project Officer should return the completed approval form to CFMC with all the required
information filled in . If the Project Officer wants to disapprove the charges, they need to fill in the
explanation of disapproval or attach a memo which explains why the charges are being disapproved.
12) If the approval form is received at CFMC marked as approved, CFMC will log in the approval and
check to see if any accounting entries need to be made to adjust where the charges were originally
made. If the Project Officer identifies an account(s) different from where the original charge was
made, CFMC will process a Journal Voucher to properly reflect the charges in IFMS.
13) If the approval form is received at CFMC marked as disapproved, CFMC will initiate a chargeback
through the OPAC system to the billing ALC. This would reduce the Cash Difference Liability
Account and then CFMC would process a Journal Voucher to return the funds to the appropriate
accounts of the LAG in question.
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Bill Type - 1080 (Non Superfund) Bills
1) CFMC receives the 1080 bill (many Agencies use other forms in lieu of a 1080) from the Other
Agency. CFMC verifies the information on the bill to determine if the bill is an actual 1080 bill or a
backup copy to an OP AC charge (Note: some Agencies still produce the 1080 bill as their input
document for the OP AC system and send it to CFMC as supporting documentation).
2) If the bill is determined to be correct, CFMC would then log the bill into the CFMC database which
tracks all 1080 invoices received and paid.
3) CFMC would prepare a Project Officer Approval Form (Form 2550-21) and send it with a copy of the
bill plus any attached documents to the Project officer for approval.
4) The Project Officer is responsible for reviewing the charges to determine if they are reasonable and
accurate.
5) The Project Officer would use either information received directly from the Other Agency or the
attached documents to the bill (if there are any) to verify the charges. If no information is received or
the information does not support the charges, the Project Officer should contact the Other Agencies
Project Officer to request the necessary information for the bill to be approved.
6) The Project Officer should return the completed approval form to CFMC with all the required
information filled in. If the Project Officer disapproves the charges, they should fill in the explanation
of disapproval or attach a memo which explains why the charges are being disapproved.
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7) If the approval form is received at CFMC marked as approved, CFMC will log in the approval and then
match it with the original 1080 bill. The bill will then be posted to IFMS against the accounl(s) that is
marked on the Approval Form or against the first open account using the "first-in-first-out" payment
method. After the payment is posted in IFMS, it will be reviewed and then certified for payment by a
certifying officer at CFMC. After the payment has been certified, it will be posted with all EPA
payments to have a check cut by the Department of Treasury.
8) If the Approval Form is received at CFMC marked as disapproved, CFMC will prepare a suspension
letter to the billing Agency. This letter will explain the reason for disapproval and list both the EPA
Project Officer's name and phone number and a contact point and phone number of someone at CFMC
for the billing Agency to call if they have any questions concerning the disapproval.
9) If it is determined that a suspended bill should not have been suspended, the billing Agency would
have to resubmit the bill for processing again. When this bill is received, CFMC would log in the bill
and submit it to the Project Officer again for approval.
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Bill Type - 1080 (Army COE Superfund) Bills
Note: The following information only pertains to 1080 (or bill forms in lieu of a 1080) bills received from
the Army COE for Superfund site specific charges. There is a specific MOU between EPA and the
Army COE which allows for these payments to be made differently than other 1080 bills. This
procedure would also apply to Contractor payments (From ENG93 or SF1034) which EPA makes on
certain Superfund site specific agreements between EPA and the Army COE.
1) CFMC receives the 1080 bill or the Contractor Pay Estimate from the Army COE. CFMC would verify
that this bill pertains to a site specific IAG and if so, would verify that the bill has been certified by the
Army COE and that there is a signature card on file at CFMC for the person certifying the charges.
2) If the bill is determined to be a valid site specific bill, CFMC would log the bill into the CFMC
database which tracks all 1080 invoices received and paid.
3) According to the MOU between EPA and the Army COE, all site specific 1080 bills should be certified
by a representative of the Army COE and EPA would pay these bills within 5 days of receipt. CFMC
is required to have a signature card (DD Form 577) on file from anyone at the Army COE who would
be representing the Army COE as a certifying officer. For Pay Estimates from the Contractor, EPA is
required to pay these bills according to Prompt Pay standards for all government contract payments.
The date the Army COE receives the invoice from the contractor is the date which is used to determine
when the payment should be made in accordance with the Prompt Pay Act.
4) The Army COE should be sending a copy of each bill marked "copy" to the EPA Project Officer along
with a status report so CFMC is not required to forward anything to the Project Officer for these bills.
Any discrepancies or disputes in these bills should be discussed between the EPA Project Officer and
the Army COE Project Manager.
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5) Any disputes would be resolved by either an adjustment to a future bill or by the Army COE issuing a
refund to EPA CFMC. If a refund is received at CFMC, these funds would be posted back to the
account from where the original payment was made.
6) If the bill is determined to be a valid site specific bill, CFMC would process the payment in IFMS
using the "first-in-first-out" payment method unless CFMC is informed ahead of time by the Project
Officer which accounts should be used in which order. The bill will then be posted in IFMS for
payment where it will be reviewed and then certified by a certifying officer at CFMC. After the
payment has been certified, it will be posted with all EPA payments to have a check cut by the
Department of Treasury.
7) CFMC is required to send either a 1080 bill or a Contractor Pay Estimate which is marked "final" to the
EPA Project Officer for approval. CFMC would also send any bill to the Project Officer for approval
which is for a service period beyond the end of the Project Period (according to the files at CFMC). If
these bills were sent to the EPA Project Officer for approval, they would be treated like a non
Superfund 1080 bill and will follow the guidelines established for those bills.
8) If a bill (either 1080 or a Contractor Pay Estimate) is received from the Army COE without all the
necessary information to make payment, CFMC will return these bills to the billing office with a cover
letter which would explain why the bill is being returned. The Army COE should then resubmit the
bill with the correct information to CFMC so that the bill can be paid.
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Project Officer Responsibilities
1) Initiate the IAG and negotiate the terms and conditions of the IAG.
2) Verify that there is enough funding in place to cover expected costs.
3) Make sure that the Project Period of the IAG is long enough to cover the time that it will take to
complete the project. This would include notifying the Grants office when an IAG needs to be
extended to either add funds or extend the Project Period.
4) Monitor the project to make sure that the Other Agency is performing the services at an acceptable
level according to the terms of the LAG.
5) Monitor the costs of the IAG through the approval process. This would include reviewing all bills
received from the Other Agency and approving or disapproving them based on the terms of the LAG.
6) Notify GMO if there is a Project Officer change. GMO would then notify the Other Agency and
CFMC by issuing an amendment which would identify the new Project Officer.
7) Initiate closeout procedures when a project is complete.
8) Contact CFMC or the Other Agency if there are any questions concerning billing issues.
9) Maintain a file of all documentation received pertaining to the IAG including the original IAG and any
amendments, bills, approvals, and any supporting documentation received from the Other Agency.
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Generic IAGfs (Multiple Superfund sites)
1) EPA would obligate funds under a generic Superfund account ("ZZ", "WQ", or "00") for an IAG where
work is going to be done at multiple Superfund sites which are undeterminable at the time of the
origination of the agreement.
2) The terms and conditions of these LAG's should be negotiated at the time of the origination of the LAG.
3) EPA is responsible for notifying the Other Agency when work is needed to be done at a certain
Superfund site. A Work Authorization Form (WAF) should be used to redistribute the funding from
the generic Superfund account to the appropriate site specific account. This form would need to be
sent to CFMC so the funds can be moved in IFMS.
4) When bills are received at CFMC for specific sites on these multi site agreements, CFMC would verify
that there is money set up for the specific site being billed before processing the bill. If there is no site
specific account established yet, CFMC would contact the Project Officer to get the necessary
paperwork to establish the site account before processing the payment of the bill.
5) If a bill is received at CFMC without a site identified which references a multi site IAG, CFMC will
forward this bill to the Project Officer to identify what site(s) the bill is for.
6) The Project Officer is responsible for ensuring that all charges are properly distributed to the correct
site specific accounts. Charges can be made to the generic account, but all charges need to eventually
be redistributed to the appropriate site specific accounts. If the invoice does not clearly identify what
site(s) the charges are for, the Project Officer should contact the Other Agency to receive the proper
documentation which would allow EPA to distribute the charges according to the Superfund site.
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7) The Other Agency is responsible for providing support documentation which would identify the
Superfund site and amount of charges which are relevant to that site. If charges for more than one site
are combined on one bill, the Other Agency should provide either CFMC or the the Project Officer
with the documentation which would allow EPA to identify each Superfund site and the amount of
charges for each site. It is then the Project Officer's responsibility to ensure that each cost is correct
and that the charges are posted to the correct site accounts.
8) Each WAF can identify a Project Period for that particular Superfund site. The only limits are that the
beginning Project Period cannot be for a time prior to the beginning of the LAG Project Period and that
the ending Project Period cannot be for a period after the ending Project Period of the IAG.
9) To close out the funds on these generic lAG's, the Project Officer can either issue a decrease WAF or
wait until the end of the IAG and reference each site that has a balance on the closeout letter. It is
more efficient to close each of the individual sites with a WAF. CFMC cannot process a closeout
request referencing multiple sites until the Other Agency confirms that each sites balance has been
reconciled.
Note: Most Agencies cannot move funds from one site to another or from a site specific account back to
the generic account. This means that once funds are obligated to a Superfund site, EPA should not try
to move the balance of these funds back to the generic account or to another Superfund site for more
work to be done. EPA should be conservative when obligating funds to a specific Superfund site so
that they don't risk losing excess funds. Amended WAF's can always be processed if additional
funding is needed for any Superfund site.
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Appendix 0
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GRANTS PROGRAM ASSIGNMENTS
Wayne Anthofer, 303-312-6305
Director
Joyce Brame 303-312-6367
Danette Quick* 406-441-1120
Beverly GoodseU 303-312-6507
Sherron Holloway 303-312-6349
Tempa Graves 303-312-6368
Carol O'Donnell 303-312-6824
Barbara Rodriguez 303-312-6360
Maurice Velsaquez 303-312-6862
PROGRAM CODE PROGRAM DEFINITION SPECIALIST
*Danette Quick is responsible for ALL Montana Grants and lAGs managed by the
Montana Operations Office.
A
BG
BL
BP
C
C
C
C
CD
CL/S
Air Pollution Control Program Support
Performance Partnership Grants
Colorado
Montana
North Dakota
South Dakota
Utah
Wyoming
Tribal
Brownfields Revolving Loan Fund
Brownfields Site Assessment
Construction Grants
Wastewater Treatment Construction
Programs
Construction Grants for Planning
& Design (Advance of Allowance)
Construction Management Assistance
(205[gJ)
Clean Water Act (CWA)
Section 109(b) Training
Wetlands Protection State Development
Clean Lakes Program
Sherron Holloway
Joyce Brame
Danette Quick
Beverly GoodseU
Sherron Holloway
Tempa Graves
Joyce Brame
Joyce Brame
Beverly Goodsell
Beverly Goodsell
Joyce Brame
Joyce Brame
Sherron Holloway
Sherron Holloway
Sherron Holloway
Sherron Holloway
Sherron Holloway
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PROGRAM CODE
CM
CP
CS
C6
C8
PROGRAM DEFINITION
Municipal Water Pollution Prevention
(MWPP)
National Pollutant Discharge Elimination
System Program Implementation - Construction
Waste Water State Revolving Fund
Water Quality Management Planning
(Section 604[b])
Nonpoint Source Reservation/Develop-
ment Program (Section 205lj][5])
SPECIALIST
Sherroa Holloway
Tempa Graves
Joyce Brame
Joyce Brame
Joyce Brame
C9
D
EQ
F
FS
G
GA
HG
I
lAG's
K
Kl
Nonpoint Source Implementation Pro-
gram
Hazardous Waste Management State Pro-
gram
Consolidated Pesticides Compliance
Monitoring And Program Cooperative Agreements
Environmental Equity Program
State Public Water System Supervision
(PWSS)
Drinking Water State Revolving Fund
State Underground Water Source Pro-
tection (UIC)
General Assistance Program (GAP) for
Indian tribes
Hardship Grants
Indian Water Pollution Control
(Section 106)
Interagency Agreements
Toxic Substances Compliance
Monitoring Program
State Indoor Radon Grant Pro-
gram Support
Joyce Brame
Tempa Graves
Sherron Holloway
Tempa Graves
Tempa Graves
Joyce Brame
Tempa Graves
Beverly Goodsell
Joyce Brame
Beverly Goodsell
Carol O'Donnell
Sherron Holloway
Sherron Holloway
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PROGRAM CODE
L
LS
MM
NE
NI
NP
PB
PJ
PM
S
S
SR
T
V
vc
X
XP
XI
1
PROGRAM DEFINITION
Solid Waste Demonstration and Planning,
and Underground Storage Tanks State
Program Support (UST)
Leaking Underground Storage Tank
Trust Fund (LUST)
Regional Multi-Media Initiatives Program
(See separate listing for Grant Specialist)
Environmental Education
General Assistance Program (GAP) for
Indian Tribes
Pollution Prevention Incentives for States
State Lead Grants
Environmental Justice through Pollution
Prevention
PM2.5
Colorado
Montana
North Dakota
South Dakota
Utah
Wyoming
Indian Radon Grant Program Support
Clean Lakes
Superfund Reuse Initiative
Training
Outreach Operation 104(G)(1)
Superrund Agreements
State CORE & Tribal CORE
Special Studies
FY95 Water Infrastructure Grants
Solid Waste, Management Assistance
Superrund Technical Assistance for
Citizen Groups at Priority Sites (TAGs)
(all states except Montana)
SPECIALIST
Tempa Graves
Tempa Graves
All Specialists
Beverly Goodsell
Beverly Goodsell
Tempa Graves
Sherron Holloway
Tempa Graves
Joyce Brame
Danette Quick
Beverly Goodsell
Sherron Holloway
Tempa Graves
Sherron Holloway
Sherron Holloway
Sherron Holloway
Beverly Goodsell
Carol O'Donnell
Beverly Goodsell
Beverly Goodsell
All Specialists
Joyce Brame
Tempa Graves
Beverly Goodsell
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OTHER
Audit Manager Barbara Rodriguez
MBE/WBE Utilization Officer Maurice Velasquez
Revised 1/12/00
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PROJECT OFFICER REFRESHER COURSE
Interagency Agreement Training Evaluation
Date of Training:
Project Officer Name: (optional)
Project Officer Mail Code: (optional)
Trainer:
1. What did you like about the training material/information?
2. What did you dislike about the training material/information?
3. Were your questions answered? If NO, please explain.
4. What material/information would you add or remove?
COMMENTS:
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