VI. Grants and Agreements

How to Determine the Appropriate Instrument for a Partnership

Basic guidelines for choosing partnership instruments are listed below. Appendix B – Glossary of Terms – defines terms used here.

Agreement does not include an exchange or expenditure of something of value. (For example funds, resources or services)
Use Memorandum of Understanding

Agreement includes an exchange or expenditure of something of value.
(For example funds, resources or services) Choose type of agreement from below.

We buy goods or services and pay 100% of the costs and are working with another federal agency.
Use an Interagency Agreement
Agreement can include funds to another agency or another agency providing funds to the Forest Service. Use procurement with any other entity besides federal agency.

There is a mutal non-monetary benefit and we are sharing costs. Use one of the following agreements:

There is no mutal non-monetary benefit and we are not sharing costs.
Use a Cost Reimbursable Agreement
Forest Service buying goods/services from a State Cooperative Institution of higher education. Services or goods available in-house for agriculture teaching activities.

We are supporting a nonfederal entity in performing a public good (S&PF, RES).
For Federal Financial Assistance use a Grant or Cooperative Agreement

The funds are coming to the Forest Service from a nonfederal entity.
Use a Collection Agreement
There must be no conflict of interest; a signed agreement and opportionment authority is needed prior to starting work.

The agreement deals with law enforcement, fire protection, or road projects. Use one of the following agreements: