VI. Grants and Agreements

Challenge Cost Share Agreements

The Interior and Related Agencies Appropriations Act of 1992 (Public Law 102-154) authorizes the Forest Service to cooperate with other parties to develop, plan, and implement projects that are mutually beneficial to all parties and enhance Forest Service activities. This includes financing projects with matching funds from partners including public and private agencies, organizations, institutions, and/or individuals.

Agency policy for using this authority is described in FSM 1587.12 and FSH 1509.11 (Chapter 60).

Requirements in Challenge Cost Share Agreements include:

• Forest Service expenditures are commensurate with the value received.
• The Forest Service may reimburse a partner for part of the actual costs of materials and/or labor. Reimbursement cannot be based on value, but must be the actual costs incurred in support of the project.
• No advance payments are allowed.
• Forest Service funds appropriated from Congress cannot be used for improvements on non-federal lands.
• The match can be cash, real or personal property, services, and/or in-kind contributions.
• Financial plans are required prior to start of work.
• Income resulting from the project must be shown on a financial plan.
• Modifications do not need to retain the cost share ratio, but do need to be commensurate with the level of effort or funding provided.
• Federal Acquisition Regulations might apply.