[Federal Register Volume 73, Number 86 (Friday, May 2, 2008)]
[Proposed Rules]
[Pages 24188-24190]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-8789]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Office of the Secretary
49 CFR Parts 18 and 19
[Docket OST-2005-22602]
RIN 2105-AD60
Grants and Cooperative Agreements to State and Local Governments;
Grants and Agreements with Institutions of Higher Education, Hospitals
and Other Non-Profit Organizations
AGENCY: Office of the Secretary (OST), DOT.
ACTION: Notice of proposed rulemaking (NPRM); request for comments.
-----------------------------------------------------------------------
SUMMARY: This proposal would amend Department of Transportation
regulations on uniform administrative requirements for grants and
agreements with institutions of higher education, hospitals and other
non-profit organizations. Specifically, the DOT proposes to make
requirements for these grants and agreements consistent with the
uniform administrative requirements for grants and cooperative
agreements to state and local governments. In addition, this proposal
would update references to applicable cost principles for grants and
cooperative agreements with state and local governments and for grants
and other agreements with institutions of higher education, hospitals
and other non-profit organizations that appear in current Department of
Transportation regulations.
DATES: Comments must be received on or before June 16, 2008
ADDRESSES: You may file comments identified by the docket number DOT-
OST-2007-0022 by any of the following methods:
[cir] Federal eRulemaking Portal: go to http://www.regulations.gov
and follow the online instructions for submitting comments.
[cir] Mail: Docket Management Facility, U.S. Department of
Transportation, 1200 New Jersey Ave., SE., West Building Ground Floor,
Room W12-140, Washington, DC 20590-0001.
[cir] Hand Delivery or Courier: West Building Ground Floor, Room
W12-140, 1200 New Jersey Ave., SE., between 9 a.m. and 5 p.m. ET,
Monday through Friday, except Federal Holidays.
[cir] Fax: (202) 493-2251.
Instructions: You must include the agency name and docket number
DOT-OST-2007-0022 or the Regulatory Identification Number (RIN) for the
rulemaking at the beginning of your comment. All comments received will
be posted without change to http://www.regulations.gov, including any
personal information provided.
FOR FURTHER INFORMATION CONTACT: Ellen Shields, Office of the Senior
Procurement Executive, Office of Administration (M-61), (202) 366-4268,
1200 New Jersey Avenue, SE., Washington, DC 20590-0001. Office hours
are from 7:45 a.m. to 4:15 p.m. ET, Monday through Friday, except
Federal holidays.
SUPPLEMENTARY INFORMATION:
Electronic Access and Filing
You may submit or retrieve comments online through the Document
Management System (DMS) at: http://www.regulations.gov. Acceptable
formats include: MS Word (versions 95 to 97), MS Word for Mac (versions
6 to 8), Rich Text File (RTF), American Standard Code Information
Interchange (ASCII)(TXT), Portable Document Format (PDF), and
WordPerfect (versions 7 to 8). This site is available 24 hours each
day, 365 days each year. Electronic submission and retrieval help and
guidelines are available under the help section of the web site.
An electronic copy of this document may also be downloaded by using
a computer, modem and suitable communications software from the
Government Printing Office's Electronic Bulletin Board Service at (202)
512-1661. Internet users may also reach the Office of the Federal
Register's home page at: http://www.nara.gov/fedreg and the Government
Printing Office's Web page at: http://www.access.gpo.gov/nara.
Background
Regulations governing two types of U.S. Department of
Transportation grant and cooperative agreement recipients are found in
Parts 18 and 19 of Title 49 of the Code of Federal Regulations:
1. 49 CFR Part 18: Uniform Administrative Requirements for
Grants and Cooperative Agreements to State and Local Governments.
2. 49 CFR Part 19: Uniform Administrative Requirements for
Grants and Agreements with Institutions of Higher Education,
Hospitals, and Other Non-Profit Organizations
Both of these parts contain a provision that governs allowable
costs. However, while 49 CFR 18.22(a) identifies certain specific
limitations on the use of grant or cooperative agreement funds by state
or local governments receiving financial assistance from the U.S.
Department of Transportation, 49 CFR 19.27 does not contain similar
limitations. Specifically, under 49 CFR 18.22(a), grant funds may only
be used for:
(1) The allowable costs of the grantees, subgrantees and cost-
type contractors, including allowable costs in the form of payments
to fixed-price contractors; and
(2) Reasonable fees or profit to cost-type contractors but not
any fee or profit (or other increment above allowable costs) to the
grantee or subgrantee.
This proposal would impose the same limitation on the use of funds
used for grants and agreements with institutions of higher education,
hospitals, and other non-profit organizations as there are on the use
of funds used for uniform administrative requirements for grants and
cooperative agreements to state and local governments, which are set
forth above.
In addition, this proposal would update references to applicable
cost principles for grants and cooperative agreements with state and
local governments that appear in 49 CFR 18.22(b) and include comparable
updated references in 49 CFR 19.27(b) with regard to grants and
agreements awarded to institutions of higher education, hospitals, and
other non-
[[Page 24189]]
profit organizations. These updated references are necessary in light
of the establishment of title 2 of the Code of Federal Regulations in
2004. Subtitle A of title 2 of the Code of Federal Regulations consists
of government-wide guidance from the Office of Management and Budget
(OMB) to Federal agencies for grants and other financial assistance and
nonprocurement agreements that previously had been contained in seven
separate OMB circulars and other OMB policy documents. Currently, 49
CFR 18.22(b) references three specific OMB circulars that are now
codified in several Parts in chapter II, subtitle A of title 2 of the
Code of Federal Regulations. This proposal would amend 49 CFR 18.22(b)
by replacing the citations to these former OMB circulars with the
appropriate references in title 2 of the Code of Federal Regulations
and would reflect these same changes in 49 CFR 19.27(b).
Rulemaking Analyses and Notices
All comments received before the close of business on the comment
closing date indicated above will be considered and will be available
for examination in the docket at the above address. Comments received
after the comment closing date will be filed in the docket and will be
considered to the extent practicable. In addition to late comments, the
DOT will also continue to file relevant information in the docket as it
becomes available after the comment period closing date, and interested
persons should continue to examine the docket for new material. A final
rule may be published at any time after close of the comment period.
Executive Order 12866
The Department has determined that this rule is nonsignificant. It
is purely administrative in nature and does not impose new burdens on
any parties.
Regulatory Flexibility Act of 1980
The Department certifies that this rule will not have a significant
effect on a substantial number of small entities. This is because, as a
purely administrative rule, it does not create economic effects on
anyone. The amendment would not change or limit the potential
eligibility of any small entity.
Unfunded Mandates Reform Act of 1995
This regulatory action does not contain a Federal mandate that will
result in the expenditure by State, local, and tribal governments, in
aggregate, or by the private sector of $100 million or more in any one
year, as adjusted for inflation.
Paperwork Reduction Act of 1995
This regulatory action will not impose any additional reporting or
recordkeeping requirements covered under the Paperwork Reduction Act.
Executive Order 13132 (Federalism)
This regulatory action does not have Federalism implications, as
set forth in Executive Order 13132. It will not have substantial direct
effects on the States, on the relationship between the national
government and the States, or on the distribution of power and
responsibilities among the various levels of government.
List of Subjects in 49 CFR Parts 18 and 29
Administrative practice and procedure, Grant programs, Allowable
costs, Cooperative agreements.
Issued on: April 14, 2008.
Mary E. Peters,
Secretary of Transportation.
In consideration of the foregoing, the DOT proposes to amend, title
49, Code of Federal Regulations, parts 18 and 19, as set forth below:
PART 18--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND
COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS
1. The authority citation for part 18 continues to read as follows:
Authority: 49 U.S.C. 322(a).
2. In Sec. 18.22(b), revise the table to read as follows:
Sec. 18.22 Allowable costs.
* * * * *
(b) * * *
------------------------------------------------------------------------
For the costs of a Use the principles in--
------------------------------------------------------------------------
State, local or federal-recognized 2 CFR part 225.
Indian tribal government.
Private non-profit organization other 2 CFR part 230.
than an (1) institution of higher
education, (2) hospital, or (3)
organization named in 2 CFR part 230,
Appendix C, as not subject to that
part.
Institutions of higher education....... 2 CFR part 220.
For-profit organizations other than a 48 CFR part 31, Contract Cost
hospital, commercial organization or a Principles and Procedures, or
non-profit organization listed in 2 uniform cost accounting
CFR part 230, Appendix C, as not standards that comply with
subject to that part. cost principles acceptable to
the Federal agency.
------------------------------------------------------------------------
* * * * *
PART 19--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND
AGREEMENTS WITH INSTITUTIONS OF HIGER EDUCATION, HOSPITALS, AND
OTHER NON-PROFIT ORGANIZATIONS
3. The authority citation for part 19 continues to read as follows:
Authority: 49 U.S.C. 322(a).
4. Revise Sec. 19.27 to read as follows:
Sec. 19.27 Allowable costs.
(a) Limitation on use of funds. Grant funds may be used only for:
(1) The allowable costs of the grantees, subgrantees and cost-
type contractors, including allowable costs in the form of payments
to fixed-price contractors; and
(2) Reasonable fees or profit to cost-type contractors but not
any fee or profit (or other increment above allowable costs) to the
grantee or subgrantee.
(b) Applicable cost principles. For each kind of recipient, there
is a set of Federal principles for determining allowable costs.
Allowability of costs shall be determined according to the cost
principles applicable to the entity organization incurring the costs.
The following chart lists the kinds of organization and the applicable
cost principles:
------------------------------------------------------------------------
For the costs of a Use the principles in--
------------------------------------------------------------------------
State, local or federal-recognized 2 CFR part 225.
Indian tribal government.
[[Page 24190]]
Private non-profit organization other 2 CFR part 230.
than an (1) institution of higher
education, (2) hospital, or (3)
organization named in 2 CFR part 230,
Appendix C, as not subject to that
circular.
Institutions of higher education....... 2 CFR part 220.
Hospitals.............................. 45 CFR part 74, Appendix E,
``Principles for Determining
Costs Applicable to Research
and Development under Grants
and Contracts with
Hospitals.''
For-profit organizations other than a 48 CFR part 31, Contract Cost
hospital, commercial organization or a Principles and Procedures, or
non-profit organization listed in 2 uniform cost accounting
CFR part 230, Appendix C, as not standards that comply with
subject to that part. cost principles acceptable to
the Federal agency.
------------------------------------------------------------------------
[FR Doc. E8-8789 Filed 5-1-08; 8:45 am]
BILLING CODE 4910-9X-P