VI. Grants and Agreements
Other Types of Agreements
Collection Agreements
The Forest Service uses a Collection Agreement to accept money, equipment, property, or products from a non-federal entity to carry out a purpose authorized by law. Collection Agreements may involve either advances or reimbursements.
As a federal agency, the Forest Service must have legislative authority to accept funding from non-Forest Service entities. Two commonly used authorities for Collection Agreements are:
- Cooperative Funds Act of June 30, 1914
- Granger-Thye Act of April 24, 1950
Cooperative Funds Act of June 30, 1914 (16 USC 498) – This law authorizes the Forest Service to collect funds from partners to perform work that is the responsibility of the Forest Service. Agency policy for using this authority is described in FSM 1584.11. Principle aspects of the Act include:
- The Forest Service can accept cash, checks, or money orders only.
- Funds can be cash advances or reimbursements.
- The work to be done is the responsibility of the Forest Service, and must be on Forest Service land.
- Contributions must be voluntary.
- The Forest Service collects costs unless they are waived. (For more information on indirect cost assessments, see Chapter VIII – Common Challenges for Partnerships.)
- There must be no conflict of interest, or appearance of conflict of interest.
- The Forest Service cannot accept funds that are dependent upon an endorsement of firms or products.
The following types of projects, when the responsibility of the Forest Service, are examples of work that can be conducted through a Collection Agreement under the Cooperative Funds Act:
- Construction and maintenance of National Forest improvements such as trails and signs
- Protection of National Forests from fire, insects, disease, etc.
- Management activities such as planning, analysis, and studies related to resource activities
Granger-Thye Act of April 24, 1950 (16 USC 572) – This law authorizes the Forest Service to collect funds from partners to perform work that is the responsibility of the partner. Agency policy for using this authority is described in FSM 1584.12. Principle aspects of the Act include:
- Full costs, including indirect costs, must be collected in advance for work to be performed.
- Work is the responsibility of the partner, and it may be on or off Forest Service lands.
- Work must result in public benefit.
- Contributed funds must be voluntary.
- The Forest Service cannot accept funds that are dependent upon an endorsement of firms or products.
- Indirect costs cannot be waived.
- The Forest Service holds no liability for damage.
- The authority does not allow for the Forest Service to accept services.
The following types of projects, when the responsibility of the partner, are examples of work that can be conducted through a Collection Agreement under the Granger-Thye Act:
- Land exchange survey
- Biological evaluations
- Cultural resource surveys
- Concessionaires
Interagency Agreement
This instrument should be used when one federal agency is in a position to provide materials, supplies, equipment, work, or services of any kind that another agency needs to accomplish its mission. The Economy Act of 1932 (31 USC 1535, Public Law 97-258 and 98-216) is the most commonly used authority for Interagency Agreements.
Agency policy for Interagency Agreements is described in FSM 1585.12. The general requirements for these agreements include:
- The performing agency recovers full direct and indirect costs of the work.
- A written justification must be submitted to an authorized contracting officer to document that the procurement is more economical than buying from a commercial source. Based on the justification, the contracting officer completes a written determination, called an Economy Act Justification and Determination, to approve the procurement. An authorized person must also certify that funds are available.
- Payment can be either reimbursement or cash advance.
- Allowable formats include: standard narrative template, Forest Service Form AD-672 (for straightforward projects), or other agency's formats.
- The Forest Service cannot provide funding to another federal agency to accomplish the function of that federal agency, as that would constitute an augmentation of their appropriations.
- When doing an Interagency Agreement with another federal agency, the performing federal agency must request reimbursable authority from the Office of Management and Budget (OMB) on an annual basis.
This authority cannot be used with tribal governments because they are sovereign nations, not federal agencies. It is possible to enter into an Economy Act agreement with the Bureau of Indian Affairs who in turn can subcontract the work to a tribal government.
Less Common Agreements
The Office of Management and Budget (OMB) has authorized certain exemptions to the Federal Grants and Cooperative Agreements Act of 1977. Examples of these exempted agreements are:
- Law Enforcement Agreements
- Forest Road Agreements
- Fire Protection Agreements