PART 550—GENERAL ADMINISTRATIVE POLICY FOR NON-ASSISTANCE COOPERATIVE AGREEMENTS Authority: Section 1472(b) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977, as amended (7 U.S.C. 3318(b)). Source: 81 FR 69999, Oct. 11, 2016, unless otherwise noted. § 550.100 Purpose and scope. (a) Purpose. (b) Scope. § 550.101 Definitions. As used in this part: Agency Principal Investigator i.e., Authorized Departmental Officer (ADO) Award Cooperator Cooperator resource contributions Funding period Non-Assistance Cooperative Agreement (NACA) Peer Review Principle Investigator (PI) REE Agency State Cooperative Institution (1) The First Morrill Act—The Land Grant Institutions. (2) The Second Morrill Act—The 1890 Institutions, including Tuskegee University. (3) The Hatch Act of March 2, 1887 (24 Stat. 440-442, as amended; 7 U.S.C. 361a-361i)—The State Agricultural Experiment Stations. (4) The Smith-Lever Act of May 8, 1914 (38 Stat. 372-374, as amended; 7 U.S.C. 341-349)—The State Extension Services. (5) The McIntire-Stennis Cooperative Forestry Act; 16 U.S.C. 582a et seq. (6) Public Law 95-113, Section 1430—A college or university having an accredited college of veterinary medicine or a department of veterinary science or animal pathology or similar unit conducting animal health and disease research in a State Agricultural Experiment Station. (7) Public Law 95-113, Section 1475(b), as added by Public Law 97-98, section 1440—Colleges, universities, and Federal laboratories having a demonstrated capacity in aquaculture research. (8) Public Law 95-113, section 1480, as added by Public Law 97-98, section 1440—Colleges, universities, and Federal laboratories having a demonstrated capacity of rangeland research. § 550.102 Applicability. This part applies to all REE non-assistance cooperative agreements awarded under the authority of 7 U.S.C. 3318(b). § 550.103 Eligibility. REE Agencies may enter into a non-assistance cooperative agreements with eligible entities to further research, extension, or teaching programs in the food and agricultural sciences. Eligible entities are any State agricultural experimental station, State cooperative extension service, any college or university, other research or education institution or organization, Federal or private agency or organization, an individual, or other party, either foreign or domestic. § 550.104 Competition. REE Agencies may enter into non-assistance cooperative agreements, as authorized by this part, without regard to any requirements for competition specified in 2 CFR 200.202 and 200.206. (7 U.S.C. 3318(e)). § 550.105 Duration. REE Agencies may enter into non-assistance cooperative agreements for a period not to exceed five years. (7 U.S.C. 3318(c)). § 550.106 Mutuality of interest. The REE Agency must document all parties' interest in the project. Mutual interest exists when all parties benefit in the same qualitative way from the objectives of the award. If one party to the non-assistance cooperative agreement would independently have an interest in the project, which is shared by the other party, and all parties contribute resources to obtain the end result of the project, mutual interest exists. § 550.107 Exceptions. This part does not apply to: (a) USDA Federal Financial Assistance agreements subject to 2 CFR parts 400 and 415; (b) Procurement contracts or other agreements subject to the Federal Acquisition Regulation (FAR) or the Agriculture Acquisition Regulation (AgAR); or (c) Agreements providing loans or insurance directly to an individual. § 550.108 Conflicting policies and deviations. This part supersedes and takes precedence over any individual REE regulations and directives dealing with executed and administered non-assistance cooperative agreements entered into under the delegated authority of 7 U.S.C. 3318(b). This part may only be superseded, in whole or in part, by a specifically worded Federal statute, regulation, or Executive Order. Deviations from specific provisions of part 550 must be authorized by the USDA-REE-Administrative and Financial Management (AFM)-Financial Management and Agreements Division (FMAD), or any successor organization, based on a documented justification. In the interest of maximum uniformity, exceptions from any requirements of this Part will be permitted only in unusual circumstances. Responsibility for developing, interpreting, and updating this Part is assigned to the USDA-REE-AFM-FMAD, or any successor organization. § 550.109 Formation of non-assistance cooperative agreements. In lieu of 2 CFR 200.201 through 200.204, 200.206, and 200.306, this section establishes project development, resource contributions, indirect cost reimbursement, and tuition remission provisions for non-assistance cooperative agreements. (a) Project development. (1) Project plan. project plan (2) Statement of work. statement of work (3) Budget. budget (b) Resource contributions. (1) Agency resource contributions. Agency's contribution (2) Cooperator resource contributions. Cooperator's contribution (i) Cooperator resource contributions must meet all of the following criteria: (A) Are verifiable from the Cooperator's records; (B) Are not included as contributions for any other Federal award; (C) Are necessary and reasonable for accomplishment of project or program objectives; (D) Are allowable under 2 CFR part 200, subpart E; (E) Are not paid by the Federal government under another Federal award, except where the Federal statute authorizing a program specifically provides that Federal funds made available for such program can be applied to cooperator resource contributions of other Federal programs; (F) Conform to other provisions of this Part, as applicable. (ii) Cooperator's share of contributions to the project may include: (A) Unrecovered indirect costs, including indirect costs of the cooperator's resource contributions. Unrecovered indirect cost means the difference between the amount charged to the award and the amount which could have been charged to the award under the cooperator's approved negotiated indirect cost rate. (B) Values for cooperator's contributions of services and property, established in accordance with 2 CFR 200.434. If the REE Agency authorizes the cooperator to donate buildings or land for construction/facilities acquisition projects or long term use, the value of the donated property for cooperator contributions must be the lesser of paragraph (b)(2)(ii)(B)( 1 2 ( 1 ( 2 1 (C) Volunteer services furnished by third-party professional and technical personnel, consultants, and other skilled and unskilled labor, if the service is an integral and necessary part of an approved project or program. Rates for third-party volunteer services must be consistent with those paid for similar work by the cooperator. In those instances in which the required skills are not found in the cooperator, rates must be consistent with those paid for similar work in the labor market in which the cooperator competes for the kind of services involved. In either case, paid fringe benefits that are reasonable, necessary, allocable, and otherwise allowable may be included in the valuation. (Refer to paragraph (b)(2)(ii)(H) of this section for more on third-party in-kind contributions.) (D) Donated employee services furnished by third-party organization. These services must be valued at the employee's regular rate of pay plus an amount of fringe benefits that is reasonable, necessary, allocable, and otherwise allowable, and indirect costs at either the third-party organization's approved federally negotiated indirect cost rate, or, a rate in accordance with 2 CFR 200.414(d), provided these services employ the same skill(s) for which the employee is normally paid. Where donated services are treated as indirect costs, indirect cost rates will separate the value of the donated services so that reimbursement for the donated services will not be made. (Refer to paragraph (b)(2)(ii)(H) of this section for more on third-party in-kind contributions.) (E) Donated property from third parties, which may include such items as office supplies, laboratory supplies, or workshop and classroom supplies. Value assessed to donated property included in the cooperator contributions must not exceed the fair market value of the property at the time of the donation. (Refer to paragraph (b)(2)(ii)(H) in this section for more on third-party in-kind contributions.) (F) Third-party-donated equipment, buildings and land. The method used for determining cooperator contributions for which title passes to the cooperator may differ according to the purpose of the Award, if paragraph (b)(2)(ii)(F)( 1 2 ( 1 ( 2 (G) The value of donated property must be determined in accordance with the usual accounting policies of the cooperator, with the following qualifications: ( 1 e.g., ( 2 ( 3 ( 4 (H) For third-party in-kind contributions, the fair market value of these goods and services must be documented and to the extent feasible supported by the same methods used internally by the cooperator. (c) Indirect costs and tuition remission Reimbursement of indirect costs. (i) State cooperative institutions. (ii) Non-profit organizations. (iii) All other cooperating entities. (2) Tuition remission. (d) Terms and conditions. § 550.110 Certifications and compliance with statutory and national policy requirements; REE conflict of interest policy. (a) Federal statutory and national policy (b) REE conflict of interest policy. (2) The Cooperator must maintain written standards of conduct covering conflicts of interest and governing the performance of their employees engaged in the selection, award and administration of contracts, and any subawards. § 550.111 Project supervision and responsibilities. (a) The Cooperator is responsible and accountable for the performance and conduct of all its employees assigned to the project. REE Agencies do not have authority to supervise cooperator employees nor engage in the employer/employee relationship. (b) The Cooperator PI must: (1) Work jointly with the Agency PI on developing the project statement of work and budget; (2) Assure that technical project performance and financial status reports are timely submitted in accordance with the terms and conditions of the award; (3) Advise the Agency PI of any issues that may affect the timely completion of the project (award); (4) Assure that appropriate acknowledgements of support are included in all publications and audiovisuals, in accordance with § 550.119 of this part; (5) Assure that inventions are appropriately reported, in accordance with § 550.124 of this part; (6) Upon request, provide the Agency a project plan for use during external peer reviews; and (7) When appropriate, work with the Agency PI to prepare findings for peer-reviewed publication in scientific journals, and make presentations/talks to shareholders, etc. § 550.112 Administrative supervision. The Cooperator is responsible for employer/employee relations such as personnel, performance, and time management issues. The Cooperator is solely responsible for the administrative supervision of its employees, even when its employees are working in Agency facilities. § 550.113 Rules of the workplace. Cooperator employees, while engaged in work at REE facilities, will abide by the Agency's standard operating procedures with regard to the maintenance of laboratory notebooks, dissemination of information, equipment operation standards, facility access, hours of work, Federal agency required training, and the Rules and Regulations Governing Conduct on Federal Property (41 CFR part 102-74, subpart C). Cooperator employees will also undergo any background investigations/clearances, and submit to any health monitoring medical surveillance requirements associated with the REE facility where they will work. § 550.114 Availability of funds. Unless otherwise stated in the agreement, the funding period will begin on the start date of the period of performance specified on the Award Face Sheet. § 550.115 Payment. Reimbursement is the standard method of payment for non-assistance cooperative agreements. All payments to the Cooperator will be made in U.S. dollars by Electronic Funds Transfer (EFT), utilizing the Cooperator's DUNS number and current SAM registration information. The method of payment will be identified on the Award Face Sheet and includes: (a) Electronic payment system. (b) EFT/Treasury Check. (1) Total dollar amount requested for reimbursement itemized by approved budget categories, including the indirect cost rate for the award, when applicable. (2) Name, phone number, email address, and the Cooperator's financial contact, should the ADO or Agency PI have any invoice questions. § 550.116 Prior approvals. (a) Approval. (b) No cost extensions. (1) The length of additional time required to complete project objectives and a justification for the extension; (2) A summary of progress to date (a copy of the most recent progress report is acceptable provided the information is current); and, (3) Signature of the Authorized Representative and the Principal Investigator requesting the extension. Any request received by the ADO that does not meet this requirement will be returned for the necessary signature(s). (c) Budget revisions. exceeds exceeds is expected to exceed (d) Advertising. § 550.117 Program income. (a) Use of program income. (2) When specified in the award, program income can be used towards fulfilling the cooperator's resource contributions for the same award. (b) Disclosing program income. (c) Program income closeout. § 550.118 Peer review. Upon request of the REE Agency, Cooperators may be required to provide documentation in support of peer review activities, and Cooperator's personnel may be requested to participate in peer review forums to assist the REE Agency with their reviews. § 550.119 Publications and audiovisuals. In addition to 2 CFR 415.2, “Acknowledgement of USDA Support on Publications and Audiovisuals,” the Cooperator must adhere to the following: (a) The REE Agency acknowledgment of support must read: “This material is based upon work supported by the Department of Agriculture, (type Agency name) under Agreement No. (type the Federal Award Identification Number (FAIN) here).” (b) All material described in 2 CFR 415.2 must also contain the following disclaimer unless the publication or audiovisual is formally cleared by the REE Agency: “Any opinions, findings, conclusion, or recommendations expressed in this publication are those of the author(s) and do not necessarily reflect the view of the Department of Agriculture.” (c) Any public or technical information related to work carried out under a non-assistance cooperative agreement must be submitted by the developing party to the other for advice and comment. Information released to the public must describe the contributions of both parties to the work effort. In the event of a dispute, a separate publication or audiovisual may be made with effective statements of acknowledgment and disclaimer. (d) The Cooperator must submit to the Agency PI copies of all final publications and audiovisuals resulting from the research conducted under the non-assistance cooperative agreement. (e) REE Agencies and the Federal Government shall enjoy a royalty-free, nonexclusive, and irrevocable right to reproduce, publish, or otherwise use, and to authorize others to use, for Federal purposes any materials developed in conjunction with a non-assistance cooperative agreement or contract under such a cooperative agreement. § 550.120 Press releases. Press releases or other forms of public notification for a broad public audience will be submitted to the REE Agency for review, prior to release to the public. The REE Agency will be given the opportunity to review, in advance, all written press releases and any other written information (including web content postings) to be released to the public by the Cooperator, and require changes as deemed necessary, if the material mentions by name the REE Agency, or the USDA, or any REE or USDA employee or research unit or location. § 550.121 Advertising. The Cooperator will not refer in any manner to the USDA or any REE Agency in connection with the use of the results of the award, without prior specific written authorization by the REE Agency. Information obtained as a result of the award will be made available to the public in printed or other forms by the REE Agency at its discretion. The Cooperator will be given due credit for its cooperation in the project. Prior approval is required. § 550.122 Vesting of title. Title to equipment and supplies and other tangible personal property will vest in the Cooperator as described in 2 CFR 200.313 and 200.314, unless otherwise specified in the award. (7 U.S.C. 3318(d)) § 550.123 Financial reporting. The Cooperator must submit financial reports at the interval required by the REE Agency, as identified on the Award Face Sheet, and may submit financial reports to the ADO electronically (refer to 2 CFR 200.335 Methods for collection, transmission, and storage of information). (a) The OMB-approved SF-425, “Federal Financial Report,” may be used to report the financial status of an award; however, a financial report must contain an itemization of actual dollar amounts expended on the project during the reporting period (in line with the approved budget), and cumulative totals expended for each budget category from the start date of the award. (b) Financial reporting due dates: (1) Quarterly and semi-annual reports are due no later than 30 calendar days after the reporting period. (2) Annual reports are due no later than 90 days following the end of the award anniversary date ( i.e., (c) Final financial report: (1) Requests for extensions must be submitted to the ADO. (2) Regardless of Agency-provided extensions for submission of the final financial report, funds will not be available for any drawdowns/payments that exceed statutory limits, as well as any expiring appropriations. § 550.124 Technical and property reporting requirements. (a) Technical performance report. (1) The performance report must follow the format of the Government wide Research Performance Progress Report, and must include the information described in 2 CFR 200.328(b)(2)(i) through (iii). (2) The final performance report covers the entire period of performance of the award, and must describe progress made during the entire timeframe of the project. (b) Intellectual property reporting. www.iedison.gov. (c) Tangible personal property report.