IMPLEMENTATION TOOLS

Identification and Use of Forest Service Instruments

Financial Assistance (Federal). A grant or cooperative agreement executed between the Forest Service and a recipient wherein the purpose is the transfer of money, property, services, or anything of value to the recipient in order to accomplish a public purpose of support or stimulation.

Other Agreements. Forest Service instruments, which are not considered Federal assistance relationships within the coverage of the Federal Grants and Cooperative Agreements Act of 1978 (31 U.S.C. 6301-6308). This includes the following agreement types: Participating, Challenge Cost-Share, Joint Venture, Cooperative Research and Development, and Cost-Reimbursable.

Partnership. A voluntary, mutually beneficial arrangement entered into for the purpose of accomplishing mutually agreed upon objective(s). Specific legislative authority must exist to form partnerships where funds, property, or other items having value are anticipated being exchanged between the parties.

Procurement. A written legal document between the Forest Service and a non-Federal party to document the acquisition by the Forest Service, by purchase or lease, of property or services for the direct benefit or use of the Forest Service.

As a potential recipient, cooperator, or contractor please consult the specific program staff representative prior to concrete discussion regarding the which mechanism would create the proper use of appropriations, availability of authority, and selection of the appropriate instrument to accomplish a specific action.

1. Transactions covered under Federal Grants and Cooperative Agreements Act of 1977, (FGCA), as Amended. (FSM 1580.11, para. 5). Base the selection of the appropriate instrument upon the provisions of the FGCA (31 U.S.C. 6301-6308), and make decisions on the classification of transactions by considering specific laws and regulations. Under the FGCA, there are basically the following two choices:

a. Federal Financial Assistance Transaction. If there is specific authority and appropriated funds available for its use, a Federal financial assistance transaction in the form of a grant or cooperative agreement shall be used, depending upon the degree of Forest Service involvement, and subject to various Office of Management and Budget (OMB) administrative, cost, and audit circulars as implemented by the U.S. Department of Agriculture (USDA) regulations, at Title 7, Code of Federal Regulations, Parts 3016-3019 (7 CFR 3016-3019) and 7 CFR 3052. Grants and cooperative agreements are primarily available to be used with Research, State and Private Forestry, and International Programs appropriations to transfer a thing of value to stimulate or support others' activities for public benefit, not to receive a product or service, that is, a deliverable, for direct Forest Service benefit. A grant is appropriate where the Forest Service is not substantially involved. A cooperative agreement is appropriate where the Forest Service is substantially involved.

b. Procurement Transaction. Use a procurement contract or purchase order where the intention is to acquire (by purchase or barter) goods or services for its direct benefit. These transactions are governed by FSH 6309.32, Federal Acquisition Regulation that require competitive procedures.

Consistent with specific statutory and OMB exemptions granted to the Forest Service, some transactions are not considered either procurement contracts or Federal financial assistance as defined under the provisions of the FGCA. These types of transactions may be entered into under specific authority and when specific criteria are met. Some of these types of agreements are used to form what the Forest Service commonly refers to as partnerships (FSM 1580.5). Although these transactions are distinguished from procurement contracts and Federal financial assistance, maintain sound administrative and financial control, and follow procurement, labor law, competition, and Government Printing Office requirements where applicable.

2. Transactions Not Covered Under FGCA.

a. Sale of Government property and services for full value (timber sales).

b. Collection agreements for full value, regardless of whether the contributed funds are advanced or reimbursed.

c. Interagency and Intra-agency agreements.

d. Leases, licenses, or permits (for example, for grazing or recreational use where the government receives full value for the authorization).

e. Transactions where goods, services, or money flow to the Forest Service (for example, gifts or donations).

3. Transactions Exempt from Provisions of FGCA by OMB Approval.

a. Cooperative Law Enforcement Agreements.

b. Cooperative Forest Road Agreements.

c. Cooperative Fire Protection Agreements.

4. Transactions Exempt from Provisions of FGCA by Specific Statutory Language.

a. Participating Agreements.

b. Challenge Cost-Share Agreements.

c. Joint Venture Agreements.

d. Cost Reimbursable Agreements.

e. Cooperative Research and Development Agreements.

Implementation Tools