The Federal Grant and Cooperative Agreement Act of 1977 (P.L. 95-224, 31 USC 6301 and following) establishes the fundamental distinctions between purchase contracts, grants and cooperation contracts. The Federal Grants and Cooperative Agreement Act of 1977, 31 U.S.C No. 6301-6308 (FGCAA) was created to promote a better understanding of U.S. government spending and eliminate unnecessary administrative requirements for recipients of state awards, by establishing relationships between executive agencies and contractors, states, local governments and other beneficiaries in acquiring property and services and assisting the U.S. government. The law sets out the criteria for executive agencies in selecting appropriate legal instruments to achieve consistent use by executive agencies; A clear definition of the relationships they reflect and a better understanding of the parties` responsibilities towards them. The law promotes greater discipline in the choice and use of purchase contracts, subsidy agreements and cooperation agreements, maximizes competition in the awarding of contracts and encourages competition in the granting of grants and cooperation agreements. For more information on the law, click on this 1978 OMB Grants and Contracts Guide. Federal authorities use purchase contracts and various forms of financial assistance (subsidies, cooperation agreements and others) to transfer funds to individuals and organizations in order to achieve the Agency`s authorized mission. There are many differences between public procurement and subsidies. The following graph contains a number of you, and it can help define the instrument you want to request. The HQ Grants Management Division Office of Acquisition Management provides the Ministry of Commerce`s promotion policy for grants and cooperation agreements.
The Ministry of Commerce`s GMD OAM website has extensive grants and cooperation agreements containing documents and political information. In order to improve the efficiency and effectiveness of federal financial assistance programs, simplify the enforcement and reporting requirements for federal aid, improve service delivery to the public, and facilitate better coordination among those responsible for providing these services, Congress passed the 1999 Federal Financial Assistance Management Improvement Act, Pub. 106-107, 113 Stat. 1486. (FFAMIA). There is also the Federal Funding Accountability and Transparency Act of 2006, Pub.L. No. 109-282, 120 Stat.1186 (FFATA), which builds on efforts to increase accountability and public availability of information on federal spending. To provide federal assistance, there must be a legal authority to provide allocation and funding at the time of award.