July, 2005 EXHIBIT 3 Page 1 of 3 pages AGREEMENTS TYPES OF AGREEMENTS, DEFINITIONS, AND APPLICABILITY Definitions of grants and cooperative agreements can be found in Part 600 – Federal Grants and Cooperative Agreements Handbook – to Title 120 of the General Manual (http://www.policy.nrcs.usda.gov). The following definitions further identify and explain the types of agreements: Cooperative agreements: Definition: - The principal purpose of the relationship is to transfer a thing of value to the State, local government, or other recipient to carry out a public purpose of support or stimulation authorized by a law of the United States instead of acquiring (by purchase, lease or barter) property or services for the direct benefit or use of the United States Government; and Substantial involvement is expected between the executive agency and the State, local government, or other recipient when carrying out the activity contemplated in the agreement. May be funded up to 100 percent by NRCS. Competition required (except for PL-566, PL-534, EWP, Rehabilitation Act, and RC&D Programs, and Congressional earmarks.) USDA agencies are required to advertise at http://www.fedgrants.gov. Comments: - Can be with a state or local government or other recipient, depends on the program authority. - Cooperative agreements require competition. The state conservationist has the authority to make exceptions to competition if allowed by 7 CFR 3015.158(d). If a state conservationist makes an exception, document the file with a determination and finding to show the reasoning, and that reasoning does need to comply with 7 CFR. - Per Ed Biggers at NHQ, NRCS cannot restrict competition of cooperative agreements to only nonprofits, or only nonprofits and public agencies. Must be full and open competition to all who are eligible based on the program authority. Grant agreements: Definition: - The principal purpose of the relationship is to transfer a thing of value to the State, local government, or other recipient to carry out a public purpose of support or stimulation authorized by a law of the United States instead of acquiring (by purchase, lease or barter) property or services for the direct benefit or use of the United States Government; and Substantial involvement is not anticipated between the executive agency and the State, local government, or other recipient when carrying out the activity contemplated in the agreement. May be funded up to 100 percent by NRCS. Competition required (except for PL-566, PL-534, EWP, Rehabilitation Act, and RC&D Programs, and Congressional earmarks.) USDA agencies are required to advertise at http://www.fedgrants.gov. Comments: - Can be with a state or local government or other recipient, depends on the program authority. - Competition required. Same comments relative to waiver as above.
Definition of contribution agreements can be found in Part 610 – Federal Grants and Cooperative Agreements Handbook – to Title 120 of the General Manual (http://www.policy.nrcs.usda.gov). The following definition further identifies and explains a contribution agreement: Contribution agreements (Section 714): Definition: - Between NRCS and a state or local government or other recipient. The parties must have a mutual interest in carrying out the program administered by NRCS. Competition is not required. For all programs (except PL-566, PL-534, EWP, Rehabilitation Act, and RC&D Programs and Congressional earmarks), the other party to the agreement is required to contribute at least 50 percent toward cost of accomplishing the objective of the agreement. Where there are more than two parties, all parties will contribute their equal share. Other entity contributions may be through a direct outlay of its funds and/or through in-kind contributions. For PL-566, PL-534, EWP, Rehabilitation Act, and RC&D Program and Congressional earmarks, all parties must contribute substantial resources to accomplish the objective.
EXHIBIT 3 Page 2 of 3 pages AGREEMENTS TYPES OF AGREEMENTS, DEFINITIONS, AND APPLICABILITY
Contribution agreements Continued Comments: - Can be with a state or local government or other recipient, depends on the program authority - The 2001 Ag Appropriations Act in Section 714 shows that all parties will contribute resources. The Recipient must contribution at least 50%. State conservationists have the authority to grant exceptions to this percentage if rationale is documented in writing in the file. - Gratuitous use of office space is also considered a Contribution Agreement, however is not governed by the “50% rule” or Section 714.
NRCS has other categories of agreement instruments available to fulfill its mission known as “Working Agreements.” These agreements are authorized by the NRCS Supplement to Federal Management Regulations. The following are types of agreements authorized by this policy: Joint Agreements Definition: - Characterized by three criteria: - Parties who cooperate in a project or undertaking have mutual interest in its objectives and benefits. - Parties share responsibility for planning and carrying out the project, however each party is responsible for doing their own part. - Each party contributes funds or other tangible resources for the project. Contribution may not necessarily be equal so long as they carry out their own part. Comment: - Between NRCS and Federal, State and local governments, and Other non-federal organizations. For a relationship to be a joint agreement, it must be outside the scope of procurement and other specific relationships or programs established by law and meet the 3 criteria. - Competition is not required.
Memorandum of Understanding Definition: - Documented plan for carrying out a project or an undertaking of mutual interest to NRCS and one or more other parties. Comment: - Between NRCS and other parties, federal or non-federal. - Provide for a joint sharing in the operation of the project or undertaking. - No financial resources directly obligated, transferred, or exchanged between the parties. Each party carries out its responsibilities by using it own authorities and resources, including funding. - May require the parties to enter into another agreement for transfer of resources. - Competition is not required.
Interagency Agreements - Economy Act Definition: - Goods or services provided by one Federal agency to another federal agency, on an actual cost recovery basis, and it is determined to be in the best interest of the government.
EXHIBIT 3 Page 3 of 3 pages AGREEMENTS TYPES OF AGREEMENTS, DEFINITIONS, AND APPLICABILITY Federal contracts: Definition: - The principal purpose of the instrument is to acquire (by purchase, lease, or barter) property or services for the direct benefit or use of the United States Government; or The agency decides in a specific instance that the use of a procurement contract is appropriate. Acquisition of supplies or services that has an anticipated dollar value exceeding $2,500 and not exceeding $100,000 is reserved exclusively for small business concerns (unless there is not a reasonable expectation of obtaining two offers), or the acquisition falls under FAR Part 8 Required Sources of Supplies and Services or Subpart 19, 10 Small Business Competitive Demonstration program. Competition requirements specified in FAR. Comments: - Technical personnel need to develop performance based work statements, similar to the process for those developed for competitive sourcing. - Contracting process. The contracting process takes 2 to 3 months after development of the performance work statement. - Federal contracts between $2,500 and $100,000 must be reserved for small business so public entities, such as state and local governments and non-profits, cannot compete for those federal contracts.
Long-term contracts: Definition: - A binding agreement between NRCS or the conservation district and the participant, which is based on the plan of operations and provides for cost sharing of the conservation treatment. Comments: - Payment rates and practices need to be established for the particular program under which the LongTerm Contract is issued.