Federal Acquisition Regulation (FAR): Management fee prohibition; grant and cooperative agreement handbook,

[Federal Register: December 29, 1998 (Volume 63, Number 249)]

[Proposed Rules]

[Page 71609]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr29de98-21]

Proposed Rules Federal Register

This section of the FEDERAL REGISTER contains notices to the public of the proposed issuance of rules and regulations. The purpose of these notices is to give interested persons an opportunity to participate in the rule making prior to the adoption of the final rules.

[[Page 71609]]

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

14 CFR Part 1260

Miscellaneous Revisions to the NASA Grant and Cooperative Agreement Handbook, Section A, Management Fee

AGENCY: National Aeronautics and Space Administration (NASA).

ACTION: Proposed rule.

SUMMARY: This is a proposed rule to revise the NASA Grant and Cooperative Agreement Handbook to specify that for all awards of new grants and cooperative agreements and modifications of existing grants and cooperative agreements, management fee shall not be permitted.

EFFECTIVE DATE: Comments should be submitted on or before March 1, 1999.

ADDRESSES: Interested parties should submit written comments to Steve Miley, NASA Headquarters, Office of Procurement, Analysis Division (Code HC), Washington, DC 20546. Comments may also be submitted by e- mail to steve.miley@hq.nasa.gov.

FOR FURTHER INFORMATION CONTACT: Steve Miley, (202) 358-0493.

SUPPLEMENTARY INFORMATION:

Background

A September 30, 1998, NASA Office of Inspector General (OIG) report questioned NASA's practice of awarding management fee on certain cooperative agreements. Management fee has been provided on less than 1 percent of NASA grants and cooperative agreements. For all types of funding instruments, the recipient of Federal funds is entitled to be reimbursed only those costs which are allowable under the cost principles that are applicable to the particular recipient. Therefore, management fee is not appropriate to the extent that it includes unallowable costs.

Impact

NASA certifies that this regulation will not have a significant economic impact on a substantial number of small business entities under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) because currently less than 1percent of recipients of NASA grants and cooperative agreements have received management fee. The proposed rule does not impose any reporting or recordkeeping requirements subject to the Paperwork Reduction Act.

List of Subjects in 14 CFR Part 1260

Grants programs--science and technology. Tom Luedtke, Acting Associate Administrator for Procurement.

Accordingly, 14 CFR Part 1260 is proposed to be amended as follows:

PART 1260--GRANTS AND COOPERATIVE AGREEMENTS

1. The authority citation for 14 CFR Part 1260 continues to read as follows:

   Authority: 42 U.S.C. 2473(c)(1).

2. In Sec. 1260.10, paragraph (b)(1)(iv) is added to read as follows:

   Sec. 1260.10 Proposals.

   * * * * *

   (b) * * *

   (1) * * *

   (iv) Management fee. Recipients of grants and cooperative agreements are entitled to be reimbursed only those costs which are allowable according to applicable cost principles (see Sec. 1260.127). Accordingly, for new awards or modifications of grants and cooperative agreements, management fee shall not be paid. * * * * *

   [FR Doc. 98-34317Filed12-28-98; 8:45 am]

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