[Federal Register: October 1, 2001 (Volume 66, Number 190)]
[Notices]               
[Page 49917-49922]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr01oc01-39]                         

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DEPARTMENT OF COMMERCE

[Docket No. 010925133-1233-01]

 
Department of Commerce Pre-Award Notification Requirements for 
Grants and Cooperative Agreements

AGENCY: Department of Commerce (DoC).

ACTION: Notice.

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SUMMARY: The Department of Commerce (DoC) announces Department-wide 
requirements which pertain to information provided to applicants for 
funding under grants and cooperative agreements awarded by the DoC.

DATES: These provisions are effective October 1, 2001.

FOR FURTHER INFORMATION CONTACT: Elizabeth Dorfman, Office of Executive 
Assistance Management, Telephone Number--202-482-4115.

SUPPLEMENTARY INFORMATION: The DoC is authorized to award grants and 
cooperative agreements under a wide range of programs that support 
economic development; international trade; minority businesses; 
standards and technology; oceanic/atmospheric services; and 
telecommunications and information.
    It is the policy of DoC to seek full and open competition for award 
of discretionary financial assistance funds. Moreover, DoC financial 
assistance must be awarded through a merit-based review and selection 
process whenever possible. An annual notice announcing the availability 
of Federal funds for each DoC competitive financial assistance program 
with funds available for new awards will be published in the Federal 
Register by the sponsoring operating unit. The announcement will 
reference or include the DoC Pre-Award Notification Requirements 
identified in Sections A and B of this notice and will include program-
specific information as identified in Section C of this notice.
    This announcement provides notice of the DoC Pre-Award Notification 
Requirements which apply to all DoC sponsored grant and cooperative 
agreement programs and may supplement those program announcements which 
make reference to this notice. Some of the DoC general provisions 
published herein contain, by reference or substance, a summary of the 
pertinent statutes or regulations published in the U.S. Code (U.S.C.), 
Federal Register, Code of Federal Regulations (CFR), Executive Orders, 
OMB Circulars (circulars), or Assurances (Forms SF-424B, 424D). To the 
extent that it is a summary, such provision is not in derogation of, or 
an amendment to, any such statute, regulation, Executive Order, 
circulars, or Forms SF-424B and SF-424D.
    Each individual award notice will complete and include an analysis 
of the requirements in Executive Order 12866, Executive Order 13132, 
the Administrative Procedure Act, the Regulatory Flexibility Act, and 
the Paperwork Reduction Act, as applicable.

Pre-Award Notification Requirements

    A. The following pre-award notice provisions will apply to all 
applicants for and recipients of DoC grants and cooperative agreements:
    1. Federal Policies and Procedures. Applicants, recipients and 
subrecipients are subject to all Federal laws and Federal and DoC 
policies, regulations, and procedures applicable to Federal financial 
assistance. The DoC specific regulations and forms, including the DoC 
Financial Assistance Standard Terms and Conditions, as well as OMB 
forms and circulars can be accessed on the Internet through links on 
the DoC Grants Management Web site at http://www.doc.gov/oebam/
grants.htm.
    2. Debarment, Suspension, Drug-Free Workplace, and Lobbying 
Provisions. All applicants must comply with the requirements of 15 CFR 
part 26, ``Governmentwide Debarment and Suspension (Nonprocurement) and 
Governmentwide Requirements for Drug-Free Workplace (Grants)'' and 15 
CFR part 28, ``New Restrictions on Lobbying,'' including the submission 
of required forms and obtaining certifications from lower tier 
applicants/bidders.
    3. Pre-Award Screening of Applicant's and Recipient's Management 
Capabilities, Financial Condition, and Present Responsibility. It is 
the policy of DoC to make awards to applicants and recipients who are 
competently managed, responsible, financially capable and committed to 
achieving the objectives of the award(s) they receive.

[[Page 49918]]

Therefore, pre-award screening may include, but is not limited to, the 
following reviews:
    (a) Past Performance. Unsatisfactory performance under prior 
Federal awards may result in an application not being considered for 
funding.
    (b) Credit Checks. A credit check will be performed on individuals, 
for-profit, and non-profit organizations.
    (c) Delinquent Federal Debts. No award of Federal funds shall be 
made to an applicant who has an outstanding delinquent Federal debt 
until:
    (1) The delinquent account is paid in full,
    (2) A negotiated repayment schedule is established and at least one 
payment is received, or
    (3) Other arrangements satisfactory to DoC are made.
    (d) Name Check Review. Non-profit and for-profit applicants are 
subject to a name check review process, unless an exemption has been 
provided by the DoC Office of Inspector General (OIG). Name checks are 
intended to reveal if any key individuals associated with the applicant 
have been convicted of or are presently facing criminal charges (e.g., 
fraud, theft, perjury), or other matters which significantly reflect on 
the applicant's management honesty or financial integrity. Officials of 
state and local governments, economic development districts, and 
officials of accredited colleges and universities who are acting on 
behalf of their respective entities in applying for assistance are 
exempt from the name check requirement. If any of the conditions listed 
below in paragraphs (1), (2), or (3) occur, DoC reserves the right to 
take one or more of the following actions: consider suspension/
termination of an award immediately for cause; require the removal of 
any key individual from association with management of and/or 
implementation of the award; and make appropriate provisions or 
revisions with respect to the method of payment and/or financial 
reporting requirements:
    (1) A key individual fails to submit the required Form CD-346, 
Applicant for Funding Assistance;
    (2) A key individual makes an incorrect statement or omits a 
material fact on the Form CD-346; or
    (3) The name check reveals significant adverse findings that 
reflect on the business integrity or responsibility of the recipient 
and/or key individual.
    (e) List of Parties Excluded from Procurement and Nonprocurement 
Programs. The list maintained by GSA of parties excluded from Federal 
procurement and nonprocurement programs will be checked to assure that 
an applicant is not debarred or suspended on a government-wide basis 
from receiving financial assistance.
    (f) Pre-Award Accounting System Surveys. The Grants Office, in 
cooperation with the OIG, may arrange for a pre-award survey of the 
applicant's financial management system in cases where the recommended 
applicant has had no prior Federal support, the operating unit has 
reason to question whether the financial management system meets 
Federal financial management standards, or the applicant is being 
considered for a high-risk designation.
    4. No Obligation for Future Funding. If an application is selected 
for funding, DoC has no obligation to provide any additional future 
funding in connection with that award. Amendment of an award to 
increase funding or to extend the period of performance is at the total 
discretion of DoC.
    5. Pre-Award Activities. If applicants incur any costs prior to an 
award being made, they do so solely at their own risk of not being 
reimbursed by the Government. Notwithstanding any verbal or written 
assurance that may have been received, there is no obligation on the 
part of DoC to cover preaward costs unless approved by the Grants 
Officer as part of the terms when the award is made.
    6. Freedom of Information Act (FOIA) Disclosure. The FOIA, 5 U.S.C. 
552 and implementing DoC regulations at 15 CFR Part 4, set forth DoC's 
rules to make requested material, information, and records publicly 
available. Unless prohibited by law and to the extent required under 
the FOIA, contents of applications and proposals submitted by 
applicants may be released in response to FOIA requests.
    7. False Statements. A false statement on an application is grounds 
for denial or termination of an award and grounds for possible 
punishment by a fine or imprisonment as provided in 18 U.S.C. 1001.
    8. Application Forms. Unless the individual programs specify 
differently in their annual notice of availability of funding or in 
other appropriate publications, the following forms and certifications 
will be used in applying for DoC grants and cooperative agreements: 
Standard Forms 424, Application for Federal Assistance; SF-424A, Budget 
Information--Non-Construction Programs; SF-424B, Assurances--Non-
Construction Programs; SF-424C, Budget Information--Construction 
Programs; SF-424D, Assurances--Construction Programs; as well as the 
Form CD-346, Applicant for Funding Assistance, as appropriate, shall be 
used in applying for financial assistance. In addition, Forms CD-511, 
Certifications Regarding Debarment, Suspension and Other Responsibility 
Matters; Drug-Free Workplace Requirements and Lobbying; CD-512, 
Certification Regarding Debarment, Suspension, Ineligibility and 
Voluntary Exclusion-Lower Tier Covered Transactions and Lobbying; and 
SF-LLL, Disclosure of Lobbying Activities, will be used as appropriate.
    B. The following general provisions will apply to all DoC grant and 
cooperative agreement awards:
    1. Administrative Requirements and Cost Principles. The uniform 
administrative requirements for all DoC grants and cooperative 
agreements are codified at 15 CFR part 14, ``Uniform Administrative 
Requirements for Grants and Agreements with Institutions of Higher 
Education, Hospitals, Other Non-Profit, and Commercial Organizations;'' 
and 15 CFR part 24, ``Uniform Administrative Requirements for Grants 
and Agreements to State and Local Governments.'' The following is a 
list of cost principles most often used by DoC in grants and 
cooperative agreements: OMB Circular A-21, ``Cost Principles for 
Educational Institutions;'' OMB Circular A-87, ``Cost Principles for 
State, Local and Indian Tribal Governments;'' OMB Circular A-122, 
``Cost Principles for Nonprofit Organizations;'' and Federal 
Acquisition Regulation Subpart 31.2, ``Contracts with Commercial 
Organizations,'' codified at 48 CFR 31.2. Applicable administrative 
requirements and cost principles are identified in each award and are 
incorporated into the award by reference.
    2. Award Payments. Advances will be limited to the minimum amounts 
necessary to meet immediate disbursement needs. Advanced funds not 
disbursed in a timely manner must be promptly returned to DoC. When the 
Standard Form 270 is used to request payment, advances will be approved 
for periods not to exceed 30 days. DoC may begin using the Department 
of Treasury's Automated Standard Application for Payment (ASAP) system. 
Awards that will be paid using the ASAP system will contain a special 
award condition, clause, or provision. In order to receive payments 
under ASAP, recipients will be required to register with the Department 
of Treasury and indicate whether or not they will use the on-line or 
voice response method of withdrawing funds from their ASAP established 
accounts.
    3. Federal and Non-Federal Sharing.
    (a) Awards which include Federal and non-Federal sharing will 
incorporate an estimated budget consisting of shared

[[Page 49919]]

allowable costs. If actual allowable costs are less than the total 
approved estimated budget, the Federal and non-Federal cost share ratio 
will be calculated as a percentage of Federal and non-Federal approved 
amounts. If actual allowable costs are greater than the total approved 
estimated budget, the Federal share will not exceed the total Federal 
dollar amount of the award.
    (b) The non-Federal share, whether in cash or in-kind, will be 
expected to be paid out at the same general rate as the Federal share. 
Exceptions to this requirement may be granted by the Grants Officer 
based on sufficient documentation demonstrating previously determined 
plans for or later commitment of cash or in-kind contributions. In any 
case, recipients must meet the cost share commitment over the life of 
the award.
    4. Budget Changes. When the terms of an award allow the recipient 
to transfer funds among approved direct cost categories, the transfer 
authority does not authorize the recipient to create new budget 
categories within an approved budget unless the Grants Officer has 
provided prior approval. In addition, the recipient will not be 
authorized at any time to transfer amounts budgeted for direct costs to 
the indirect costs line item or vice versa, without written prior 
approval of the Grants Officer.
    5. Indirect Costs.
    (a) Indirect costs will not be allowable charges against an award 
unless specifically included as a line item in the approved budget 
incorporated into the award. (The term ``indirect cost'' has been 
replaced with the term ``facilities and administrative costs'' under 
OMB Circular A-21, ``Cost Principles for Educational Institutions.'')
    (b) Excess indirect costs may not be used to offset unallowable 
direct costs.
    (c) If the recipient has not previously established an indirect 
cost rate with a Federal agency, the negotiation and approval of a rate 
will be subject to the procedures in the applicable cost principles and 
the following subparagraphs:
    (1) The OIG is authorized to review cost allocation procedures and 
negotiate indirect cost rates on behalf of DoC for those organizations 
for which DoC is cognizant or has oversight. The OIG either will 
negotiate a fixed rate for the recipient or, in some instances, will 
limit its review to evaluating the procedures described in the 
recipient's cost allocation methodology plan. The recipient must submit 
to the OIG within 90 days of the award start date, documentation 
(indirect cost proposal, cost allocation plan, etc.) necessary for the 
OIG to perform its review. The recipient must provide the Grants 
Officer with a copy of the transmittal letter to the OIG.
    (2) When an oversight or cognizant Federal agency other than DoC 
has responsibility for establishing an indirect cost rate, the 
recipient must submit to that oversight or cognizant Federal agency 
within 90 days of the award start date the documentation (indirect cost 
proposal, cost allocation plan, etc.) necessary to establish such 
rates. The recipient must provide the Grants Officer with a copy of the 
transmittal letter to the cognizant Federal agency.
    (3) If the recipient fails to submit the required documentation to 
the OIG or other oversight or cognizant Federal agency within 90 days 
of the award start date, the recipient may be precluded from recovering 
any indirect costs under the award. If the DoC OIG, oversight, or 
cognizant Federal agency determines there is a finding of good and 
sufficient cause to excuse the recipient's delay in submitting the 
documentation, an extension of the 90-day due date may be approved by 
the Grants Officer.
    (4) Regardless of any approved indirect cost rate applicable to the 
award, the maximum dollar amount of allocable indirect costs for which 
DoC will reimburse the recipient shall be the lesser of the line item 
amount for the Federal share of indirect costs contained in the 
approved budget of the award, or the Federal share of the total 
allocable indirect costs of the award based on the indirect cost rate 
approved by an oversight or cognizant Federal agency and current at the 
time the cost was incurred, provided the rate is approved on or before 
the award end date.
    6. Tax Refunds. Refunds of FICA/FUTA taxes received by a recipient 
during or after an award period must be refunded or credited to DoC 
where the benefits were financed with Federal funds under the award. 
Recipients must agree to contact the Grants Officer immediately upon 
receipt of these refunds. Recipients must further agree to refund 
portions of FICA/FUTA taxes determined to belong to the Federal 
Government, including refunds received after the award end date.
    7. Other Federal Awards with Similar Programmatic Activities. 
Recipients will be required to provide written notification to the 
Federal Program Officer and the Grants Officer in the event that, 
subsequent to receipt of the DoC award, other financial assistance is 
received to support or fund any portion of the scope of work 
incorporated into the DoC award. DoC will not pay for costs that are 
funded by other sources.
    8. Non-Compliance With Award Provisions. Failure to comply with any 
or all of the provisions of an award may have a negative impact on 
future funding by DoC and may be considered grounds for any or all of 
the following actions: establishment of an account receivable, 
withholding payments under any DoC awards to the recipient, changing 
the method of payment from advance to reimbursement only, or the 
imposition of other special award conditions, suspension of any DoC 
active awards, and termination of any DoC active awards.
    9. Prohibition Against Assignment by the Recipient. Notwithstanding 
any other provision of an award, recipients may not transfer, pledge, 
mortgage, or otherwise assign an award, or any interest therein, or any 
claim arising thereunder, to any party or parties, banks, trust 
companies, or other financing or financial institutions.
    10. Non-Discrimination Requirements. No person in the United States 
shall, on the ground of race, color, national origin, handicap, 
religion, age, or sex, be excluded from participation in, be denied the 
benefits of, or be subject to discrimination under any program or 
activity receiving financial assistance from DoC.
    11. Audits of For-Profit Recipients. In accordance with 15 CFR 
14.26 (c) and (d), for-profit hospitals, commercial, and other 
organizations not covered by the audit provisions of OMB Circular A-133 
shall be subject to the audit requirements as stipulated in the award 
or sub-award document. For-profit recipients of awards exceeding 
$100,000 in Federal funding must have a program-specific audit 
performed. The DoC award may include a line item in the budget for the 
cost of the audit. If DoC does not have a program-specific audit guide 
available for the program, the auditor should follow Generally Accepted 
Government Auditing Standards and the requirements for a program-
specific audit as described in OMB Circular A-133 section 235.
    12. Policies and Procedures for Resolution of Audit-Related Debts. 
DoC has established policies and procedures for handling the resolution 
and reconsideration of financial assistance audits which have resulted 
in, or may result in, the establishment of a debt (account receivable) 
for financial assistance awards. These policies and procedures are 
contained in the Federal Register notice dated January 27, 1989. See 54 
FR 4053. The policies and procedures are also provided in more detail 
in the Department of Commerce Financial Assistance Standard Terms and 
Conditions.

[[Page 49920]]

    13. Debts. Any debts determined to be owed the Federal Government 
shall be paid promptly by the recipient. In accordance with 15 CFR 
21.4, a debt will be considered delinquent if it is not paid within 15 
days of the due date, or if there is no due date, within 30 days of the 
billing date. Failure to pay a debt by the due date, or if there is no 
due date, within 30 days of the billing date, shall result in the 
imposition of late payment charges. In addition, failure to pay the 
debt or establish a repayment agreement by the due date, or if there is 
no due date, within 30 days of the billing date, will also result in 
the referral of the debt for collection action and may result in DoC 
taking further action as specified in the terms of the award. Funds for 
payment of a debt must not come from other Federally sponsored 
programs. Verification that other Federal funds have not been used will 
be made, e.g., during on-site visits and audits.
    14. Post-Award Discovery of Adverse Information. After an award is 
made, if adverse information on a recipient or any key individual 
associated with a recipient is discovered which reflects significantly 
and adversely on the recipient's responsibility, the Grants Officer may 
take the following actions:
    (a) Require the recipient to correct the conditions.
    (b) Consider the recipient to be ``high risk'' and unilaterally 
impose special award conditions to protect the Federal Government's 
interest.
    (c) Suspend or terminate an active award. The recipient will be 
afforded adequate due process while effecting such actions.
    (d) Require the removal of personnel from association with the 
management of and/or implementation of the project and require Grants 
Officer approval of personnel replacements.
    15. Competition and Codes of Conduct.
    (a) Pursuant to the certification in SF-424B, Paragraph 3, 
recipients must maintain written standards of conduct to establish 
safeguards to prohibit employees from using their positions for a 
purpose that constitutes or presents the appearance of a personal or 
organizational conflict of interest, or personal gain in the 
administration of this award and any subawards.
    (b) Recipients must maintain written standards of conduct governing 
the performance of their employees engaged in the award and 
administration of subawards. No employee, officer, or agent shall 
participate in the selection, award, or administration of a subaward 
supported by Federal funds if a real or apparent conflict of interest 
is or would be involved. Such a conflict would arise when the employee, 
officer, or agent, any member of his or her immediate family, his or 
her partner, or an organization in which he/she serves as an officer or 
which employs or is about to employ any of the parties mentioned in 
this section, has a financial or other interest in the organization 
selected or to be selected for a subaward. The officers, employees, and 
agents of the recipient may not solicit or accept anything of monetary 
value from subrecipients. However, recipients may set standards for 
situations in which the financial interest is not substantial or the 
gift is an unsolicited item of nominal value. The standards of conduct 
must provide for disciplinary actions to be applied for violations of 
such standards by officers, employees, or agents of a recipient.
    (c) All subawards will be made in a manner to provide, to the 
maximum extent practicable, open and free competition. Recipients must 
be alert to organizational conflicts of interest as well as other 
practices among subrecipients that may restrict or eliminate 
competition. In order to ensure objective subrecipient performance and 
eliminate unfair competitive advantage, subrecipients that develop or 
draft work requirements, statements of work, or requests for proposals 
will be excluded from competing for such subawards.
    (d) For purposes of this award, a financial interest may include 
employment, stock ownership, a creditor or debtor relationship, or 
prospective employment with an applicant. An appearance of impairment 
of objectivity could result from an organizational conflict where, 
because of other activities or relationships with other persons or 
entities, a person is unable or potentially unable to act in an 
impartial manner. It could also result from non-financial gain to the 
individual, such as benefit to reputation or prestige in a professional 
field.
    16. Minority Owned Business Enterprise. DoC encourages recipients 
to utilize minority and women-owned firms and enterprises in contracts 
under financial assistance awards. The Minority Business Development 
Agency can assist recipients in matching qualified minority owned 
enterprises with contract opportunities.
    17. Subaward and/or Contract to a Federal Agency. Recipients, 
subrecipients, contractors, and/or subcontractors may not sub-grant or 
sub-contract any part of an approved project to any Federal department, 
agency, instrumentality, or employee thereof, without the prior written 
approval of the Grants Officer.
    18. Foreign Travel. Recipients must comply with the provisions of 
the Fly America Act, 49 U.S.C. 40118. The Fly America Act requires that 
Federal travelers and others performing U.S. Government-financed 
foreign air travel must use U.S. flag carriers, to the extent that 
service by such carriers is available. Foreign air carriers may be used 
only in specific instances, such as when a U.S. flag air carrier is 
unavailable, or use of U.S. flag carrier service will not accomplish 
the agency's mission. The implementing Federal Travel Regulations are 
found at 41 CFR 301-10.131 through 301-10.143.
    19. Purchase of American-Made Equipment and Products. Recipients 
are hereby notified that they are encouraged, to the greatest extent 
practicable, to purchase American-made equipment and products with 
funding provided under DoC financial assistance awards.
    20. Intellectual Property Rights.
    (a) Inventions. The rights to any invention made by a recipient 
under a DoC financial assistance award are determined by the Bayh-Dole 
Act, Public Law 96-517, as amended, and codified in 35 U.S.C. 200 et 
seq., except as otherwise required by law. The specific rights and 
responsibilities are described in more detail in 37 CFR Part 401 and in 
particular, in the standard patent rights clause in 37 CFR 401.14.
    (b) Patent Notification Procedures. Pursuant to EO 12889, DoC is 
required to notify the owner of any valid patent covering technology 
whenever the DoC or its financial assistance recipients, without making 
a patent search, knows (or has demonstrable reasonable grounds to know) 
that technology covered by a valid United States patent has been or 
will be used without a license from the owner. To ensure proper 
notification, if the recipient uses or has used patented technology 
under this award without a license or permission from the owner, the 
recipient must notify the DoC Patent Counsel and Grants Officer.
    (c) Data, Databases, and Software. The rights to any work produced 
or purchased under a DoC Federal financial assistance award are 
determined by 15 CFR 24.34 and 15 CFR 14.36. Such works may include 
data, databases or software. The recipient owns any work produced or 
purchased under a DoC Federal financial assistance award subject to 
DoC's right to obtain, reproduce, publish or otherwise use the work or 
authorize others to receive, reproduce, publish or otherwise use the 
data for Government purposes.

[[Page 49921]]

    (d) Copyright. The recipient may copyright any work produced under 
a DoC Federal financial assistance award subject to DoC's royalty-free 
nonexclusive and irrevocable right to reproduce, publish or otherwise 
use the work or authorize others to do so for Government purposes. 
Works jointly authored by DoC and recipient employees may be 
copyrighted but only the part authored by the recipient is protected 
because, under 17 U.S.C. 105, works produced by Government employees 
are not copyrightable in the United States. If the contributions of the 
authors cannot be separated, the copyright status of the joint work is 
questionable. On occasion, DoC may ask the recipient to transfer to DoC 
its copyright in a particular work when DoC is undertaking the primary 
dissemination of the work. Ownership of copyright by the Government 
through assignment is permitted by 17 U.S.C. 105.
    21. Seat Belt Use. Pursuant to EO 13043, recipients should 
encourage employees and contractors to enforce on-the-job seat belt 
policies and programs when operating recipient/company-owned, rented or 
personally owned vehicles.
    22. Research Involving Human Subjects. All proposed research 
involving human subjects must be conducted in accordance with 15 CFR 
part 27, ``Protection of Human Subject.'' No research involving human 
subjects is permitted under any DoC financial assistance award unless 
expressly authorized by the Grants Officer.
    23. Federal Employee Expenses. Federal agencies are generally 
barred from accepting funds from a recipient to pay transportation, 
travel, or other expenses for any Federal employee unless specifically 
approved in the terms of the award. Use of award funds (Federal or non-
Federal) or the recipient's provision of in-kind goods or services for 
the purposes of transportation, travel, or any other expenses for any 
Federal employee, may raise appropriation augmentation issues. In 
addition, DoC policy prohibits the acceptance of gifts, including 
travel payments for Federal employees, from recipients or applicants 
regardless of the source.
    24. Preservation of Open Competition and Government Neutrality 
Towards Government Contractors' Labor Relations on Federal and 
Federally Funded Construction Projects. Pursuant to Executive Order 
13202, ``Preservation of Open Competition and Government Neutrality 
Towards Government Contractors' Labor Relations on Federal and 
Federally Funded Construction Projects,'' unless the project is 
exempted under section 5(c) of the order, bid specifications, project 
agreements, or other controlling documents for construction contracts 
awarded by recipients of grants or cooperative agreements, or those of 
any construction manager acting on their behalf, shall not: (1) include 
any requirement or prohibition on bidders, offerors, contractors, or 
subcontractors about entering into or adhering to agreements with one 
or more labor organizations on the same or related construction 
project(s); or (2) otherwise discriminate against bidders, offerors, 
contractors, or subcontractors for becoming or refusing to become or 
remain signatories or otherwise to adhere to agreements with one or 
more labor organizations, on the same or other related construction 
project(s).
    25. Minority Serving Institutions (MSIs) Initiative. Pursuant to 
Executive Orders 12876, 12900, and 13021, DoC is strongly committed to 
broadening the participation of MSIs in its financial assistance 
programs. DoC goals include achieving full participation of MSIs in 
order to advance the development of human potential, strengthen the 
Nation's capacity to provide high-quality education, and increase 
opportunities for MSIs to participate in and benefit from Federal 
financial assistance programs. DoC encourages all applicants and 
recipients to include meaningful participation of MSIs. Institutions 
eligible to be considered MSIs are listed on the Department of 
Education Web site at http://www.ed.gov/offices/OCR/minorityinst.html.
    26. Access to Records. The Inspector General of the DoC, or any of 
his or her duly authorized representatives, shall have access to any 
pertinent books, documents, papers and records of the parties to a 
grant or cooperative agreement, whether written, printed, recorded, 
produced, or reproduced by any electronic, mechanical, magnetic or 
other process or medium, in order to make audits, inspections, 
excerpts, transcripts, or other examinations as authorized by law. An 
audit of an award may be conducted at any time. Recipients that are 
subject to OMB Circular A-133, ``Audits of States, Local Governments, 
and Non-Profit Organizations,'' and that expend $300,000 or more 
annually in Federal awards shall have an organization-wide audit 
performed, unless a program-specific audit is determined by DoC to be 
more appropriate. Other recipients will be subject to the audit 
requirements as stipulated in the award or subaward document.
    C. The annual notices announcing the availability of Federal funds 
for each DoC competitive financial assistance program will generally 
contain the following program-specific information: Program Authority; 
Catalog of Federal Domestic Assistance (CFDA) Number and Title; Program 
Description; Funding Availability; Matching Requirements; Type of 
Funding Instrument (grant or cooperative agreement); Eligibility 
Criteria; Award Period; Evaluation Criteria; Project Funding 
Priorities; Selection Procedures; Applicability of Executive Order 
12372; Identification of any Non-Standard Forms Used in the Application 
Package; Citation(s) to the Regulation and/or Department-Wide Notice 
Where Required Information Can Be Found If Not Included in the 
Solicitation; Disposition of Unsuccessful Applications; and Program-
Specific Requirements. Also included should be notice of any program-
specific requirements, such as environmental compliance provisions for 
construction projects and policies on human subjects, patents, care and 
use of laboratory animals, and biosafety measures, as applicable, for 
research awards.

Classification

Executive Order 12866

    This notice has been determined to be ``not significant'' for 
purposes of Executive Order 12866, ``Regulatory Planning and Review.''

Administrative Procedure Act and Regulatory Flexibility Act

    Because notice and comment are not required under 5 U.S.C. 553, or 
any other law, for this notice relating to public property, loans, 
grants benefits or contracts (5 U.S.C. 553(a)), a Regulatory 
Flexibility Analysis is not required and has not been prepared for this 
notice.

Executive Order 13132 (Federalism)

    It has been determined that this notice does not contain policies 
with Federalism implications as that term is defined in Executive Order 
13132.

Paperwork Reduction Act

    These regulatory actions do not impose any new reporting or 
recordkeeping requirements under the Paperwork Reduction Act. 
Notwithstanding any other provisions of the law, no person is required 
to respond to, nor shall any person be subject to a penalty for failure 
to comply with a collection-of-information, subject to the requirements 
of the Paperwork Reduction Act (PRA), 44 U.S.C. 3501 et seq., unless 
that collection of information displays a currently valid

[[Page 49922]]

Office of Management and Budget (OMB) control number. Forms SF-424, SF-
424A, SF-424B, SF-424C, SF-424D, SF-LLL, and CD-346, have been approved 
under control numbers 0348-0043, 0348-0044, 0348-0040, 0348-0041, 
0348,0042, 0348-0046, and 0605-0001, respectively.

Catalog of Federal Domestic Assistance

    This notice affects all of the grant and cooperative agreement 
programs funded by DoC. The Catalog of Federal Domestic Assistance can 
be accessed on the Internet under the DoC Grants Management Web site at 
http://www.cfda.gov.

List of Subjects

    Accounting, Administrative practice and procedures, Grants 
administration, Grant programs-economic development, Grant programs-
oceans, atmosphere and fisheries management, Grant programs-minority 
businesses, Grant programs-technology, Grant programs-
telecommunications, Grant programs-international, Reporting and 
recordkeeping requirements.

    Issued this 26th day of September, 2001, at Washington, DC.
Robert F. Kugelman,
Director, Office of Executive Budgeting and Assistance Management.
[FR Doc. 01-24515 Filed 9-28-01; 8:45 am]
BILLING CODE 3510-FA-P