VI. Grants and Agreements
Federal Financial Assistance and Contracts
The Federal Grant and Cooperative Agreement Act of 1977 (31 USC 6301-6309) requires that federal agencies characterize the relationship between a federal and a non-federal party as one of either a procurement or of Federal Financial Assistance. Certain transactions, such as those discussed in the previous section on mutual benefit agreements, are exempt from or not covered by this Act.
For all other transactions, the Act provides guidance for determining which contract, grant, or cooperative agreement is appropriate.
- Procurement Contract – A contract is appropriate when the intention is to acquire goods or services for the direct benefit of the Forest Service. These transactions are governed by the Federal Acquisition Regulations that require competitive procedures. There are many situations where a simple purchase without a contract may be less complicated and more appropriate. Contracts are discussed in Chapter VII – Contracting with Partners.
- Federal Financial Assistance – Grants and Cooperative Agreements are available
to stimulate or support the activities of non-federal organizations for a public purpose. They are not intended
to provide a deliverable for direct Forest Service benefit.
- Grant – Appropriate when no substantial involvement is expected between the Forest Service and the recipient.
- Cooperative Agreement – Appropriate when substantial involvement is expected between the Forest Service and the recipient.
A Cooperative Agreement is the correct Federal Financial Assistance instrument for documenting a project if Forest Service personnel are substantially involved. The Forest Service is substantially involved when it:
- Reviews and approves one stage of work before the next stage can begin
- Reviews and approves proposed sub-grants and contracts, in excess of those authorized by Title 7, Code of Federal Regulations, Sections 3016 and 3019, prior to the award
- Helps select key recipient personnel
- Participates and collaborates jointly in the project with the recipient
- Directs or redirects the work because of interrelationships with other projects
A statement outlining the specific activities that comprise substantial involvement should be developed as part of the Cooperative Agreement. Normal oversight and review processes (including intervention to correct deficiencies in performance) are not considered to be substantial involvement.
Choosing the Appropriate Instrument – The National Wildland/Urban Interface Fire Program
In 1986, the National Fire Protection Association (NFPA) ( http://www.nfpa.org ) and the Forest Service entered into a Cooperative Agreement to reduce the nation's wildfire losses by developing and implementing fire protection and prevention programs. The agreement established the National Wildland/Urban Interface Fire Program (WUI Fire Program), sponsored by the Forest Service, U.S. Department of the Interior, the National Association of State Foresters, the Department of Homeland Security/U.S. Fire Administration, and NFPA. This Cooperative Agreement was recently renewed.
The Forest Service and other federal partners provide financial and technical assistance to NFPA to carry out the work of the WUI Fire Program. This work includes cooperative development of fire analysis, protection, and prevention programs; publication of research findings; and dissemination of information. An interagency team of representatives from the partner agencies and other organizations provide direction and oversight for program activities.
This partnership is formalized through a Cooperative Agreement. In choosing this instrument, Forest Service Grants and Agreements Specialists went through the following steps to answer two main questions: who receives the benefit of the project, and is the Forest Service substantially involved?
First, they determined that the primary benefit of the work project is to the recipient – in this case, NFPA. NFPA created and manages the Firewise program that helps private landowners achieve a high level of protection against wildland/urban interface fire as well as a sustainable ecosystem balance. Secondarily, the agreement helps spread the Forest Service fire prevention message. Because the primary benefit is to NFPA, the appropriate instrument is Federal Financial Assistance, either in the form of a grant or a Cooperative Agreement.
Second, to determine whether to use a grant or a Cooperative Agreement, Grants and Agreements Specialists assessed the level of Forest Service involvement in the project. In this case the Forest Service is substantially involved by providing direction and oversight as part of the interagency team, so the appropriate instrument is a Cooperative Agreement.