[Federal Register Volume 75, Number 177 (Tuesday, September 14, 2010)]
[Rules and Regulations]
[Pages 55671-55676]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-22706]
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OFFICE OF MANAGEMENT AND BUDGET
2 CFR Subtitle A, Chapter I, and Part 25
Financial Assistance Use of Universal Identifier and Central
Contractor Registration
AGENCY: Office of Federal Financial Management, Office of Management
and Budget.
ACTION: Final guidance.
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SUMMARY: OMB is issuing guidance to Federal agencies concerning two
requirements for financial assistance applicants and recipients, and
one requirement for first-tier subrecipients. An agency under the
guidance must require applicants other than individuals, with some
specific exceptions, to have Dun and Bradstreet Data Universal
Numbering System (DUNS) numbers and maintain current registrations in
the Central Contractor Registration (CCR) database. An agency must
require applicants and recipients of grants and cooperative agreements
to comply with the DUNS number and CCR requirements by October 1, 2010
and require applicants and recipients of all other financial assistance
types to comply by October 1, 2011. The guidance provides standard
wording for a new award term that each agency must
[[Page 55672]]
include in its financial assistance awards to require recipients to
maintain current CCR registrations, which requires that they also have
DUNS numbers. The guidance also specifies that each recipient may make
subawards only to entities that have DUNS numbers.
DATES: Effective September 14, 2010.
FOR FURTHER INFORMATION CONTACT: Marguerite Pridgen, Office of Federal
Financial Management, Office of Management and Budget, telephone (202)
395-7844.
SUPPLEMENTARY INFORMATION:
I. Summary of Changes
On February 18, 2010 (75 FR 7316), OMB proposed a number of changes
to title 2 of the Code of Federal Regulations (2 CFR). Some of the
proposed changes were to provide new guidance to agencies that was
needed to implement section 872 of the Duncan Hunter National Defense
Authorization Act for Fiscal Year 2009 (Pub. L. 110-417, hereafter
referred to as ``section 872''), as that statute applies to grants.
Some of the other proposed changes were to update guidance that existed
elsewhere and relocate it in 2 CFR to provide needed context for the
new guidance implementing section 872. The remaining changes were
administrative in nature, to create seven subchapters in 2 CFR, Chapter
I, as a better organizational framework for existing and future content
in that chapter.
OMB now is finalizing some of those proposed changes, with the rest
to follow separately. The substantive changes being finalized relate to
the use of DUNS numbers and registration in the CCR. These changes are
being finalized separately and expedited because they will enhance the
quality of information available to the public when recipients begin on
October 1, 2010 to report information on subawards, as required by the
Federal Funding Accountability and Transparency Act of 2006 (Pub. L.
109-282, as amended, hereafter referred to as ``the Transparency
Act''). OMB also is finalizing the administrative changes proposed in
February 2010, by creating the new subchapters in 2 CFR, Chapter I.
II. Relationship to Existing Requirements
The requirement for applicants to have DUNS numbers is not new. OMB
established the DUNS requirement for applicants for grants or
cooperative agreements in 2003. The policy was published in the Federal
Register [68 FR 38402] and communicated to Federal agencies in OMB
Memorandum M-03-16. The requirement was broadened to include applicants
for other types of Federal financial assistance subject to the
Transparency Act in 2008, in OMB Memorandum 08-19. Therefore, the sole
effect of the guidance following this preamble is to relocate the
requirement in the Code of Federal Regulations, in 2 CFR part 25.
There are several existing requirements concerning applicants'
registration in the CCR. For example, an applicant must be registered
in CCR if it wants to submit its applications electronically through
Grants.gov. In another example, several providers of payment management
services require that recipients be registered in CCR before receiving
payments. As yet another example, OMB Memorandum M-09-10 required
applicants for funding under the American Recovery and Reinvestment Act
of 2009 (Pub. L. 111-5, hereafter referred to as ``the Recovery Act'')
to register in CCR. The guidance following this preamble broadens the
existing requirements to all other applicants for Federal financial
assistance awards subject to the Transparency Act.
Similarly, the requirement for recipients to maintain their
registration in the CCR throughout the period of performance under
their awards is not entirely new. The final OMB guidance on reporting
under the Recovery Act, OMB Memorandum M-09-21, requires recipients to
register in CCR in order to access the FederalReporting.gov site at
which they must report. That memorandum also allows a recipient to
delegate some reporting responsibilities to its first-tier
subrecipients, in which case those subrecipients must register in the
CCR in order to report (a first-tier subrecipient is one that receives
a subaward directly from the prime recipient, as distinct from a lower-
tier subrecipient that receives a subaward from another subrecipient).
For prime recipients, the guidance following this preamble broadens the
existing Recovery Act requirement to recipients of other awards subject
to the Transparency Act. Although the guidance proposed in February
2010 would have broadened the CCR requirement to first-tier
subrecipients, the final guidance being adopted at this time does not
require CCR registration for any subrecipients.
The standard award term that agencies must use to communicate the
DUNS and CCR requirements to recipients is new. It will help ensure
Government-wide uniformity, a benefit for recipients that receive
awards from multiple agencies.
Applicants and recipients of grants and cooperative agreements must
comply with the policy by October 1, 2010. Applicants and recipients of
all other financial assistance types must comply by a date to be
provided by the agency.
III. Comments and Responses
We received comments on the proposed guidance in 2 CFR part 25 from
three State agencies and three Federal agencies. We considered the
comments in developing the final guidance, which closely parallels the
proposed guidance. We made some changes based on the recommendations
and others for clarity. The following paragraphs summarize the comments
and our responses:
Comment: Three State agencies commented on the requirements for
first-tier subrecipients in the award term in Appendix A to the
proposed 2 CFR part 25. Two agencies cited burdens on subrecipients and
the Transparency Act's definition of ``Federal award'' as reasons to
exempt a subrecipient from the requirement to register in the CCR if
the amount of the subaward is $25,000 or less. The third agency asked
whether the prime recipient would be required to submit verification of
subrecipients' compliance with the CCR requirement to the Federal
agency and, if so, how frequently it would be required to do so. One of
the agencies also recommended exempting subrecipients with awards of
$25,000 or less from the requirement to obtain a DUNS number.
Response: Agree in part. We revised the final guidance so that
there is no requirement at this time for any subrecipient to register
in the CCR. Concerning the requirement for first-tier subrecipients to
obtain a DUNS number, we did not adopt a $25,000 threshold. The DUNS
number still is the only identifier with the advantages that led us to
establish it in 2003 as the universal identifier for recipients of
grants and cooperative agreements (see the preamble to 68 FR 38403,
June 27, 2003). We do not agree that the one-time requirement to obtain
a DUNS number is an undue hardship. We appreciate that first-tier
subrecipients who are not also prime recipients of other Federal awards
may need to adjust their procedures and systems initially to
accommodate the DUNS number requirement, but we believe that the long-
term benefits to transparency justify those changes.
Comment: Two Federal agencies commented on the definition of
``award''
[[Page 55673]]
in section 25.305 of the proposed 2 CFR part 25. One agency questioned
whether excluding technical assistance and transfers of Federally owned
property from the definition could have the inadvertent effect of
exempting them from the effects of suspension and debarment actions
taken under 2 CFR part 180, in which the term ``nonprocurement
transaction'' is defined in a way that would include them. The second
agency suggested adding the words ``for the purposes of this part'' to
the definition.
Response: Agree to add ``for the purposes of this part'' for added
clarity, as the term ``award'' must be defined in each part of 2 CFR in
a way that conforms to the purpose of that part. For example, the
definitions of ``award'' in 2 CFR parts 182 and 225 differ
significantly. Part 182 implements the Drug-Free Workplace Act of 1988
(41 U.S.C. 701-707, as amended) and defines ``award'' to include grants
and cooperative agreements. The definition of ``award'' in 2 CFR part
225, ``Cost Principles for State, Local, and Indian Tribal Governments
(OMB Circular A-87),'' includes not only grants and other financial
assistance awards but also cost reimbursement contracts, because that
part specifies principles and standards for determining costs for that
wider range of Federal funding instruments.
Comment: A Federal agency suggested that we delete paragraph
25.200(a)(2) in the proposed 2 CFR part 25 because it would be
burdensome for an agency to modify every program announcement it
already had issued under which it anticipated making awards after
October 1, 2010. It further noted that the wording included some
announcements under which applications already had been submitted.
Response: We disagree. We did not delete paragraph 25.200(a)(2), as
suggested. We revised it to require agencies to notify potential
applicants only in previously issued announcements that have due dates
for applications or plans after October 1, 2010, and not all
announcements under which awards would be made after that date. This
does not change the fact that all new awards, as defined in the policy,
after October 1, 2010 must reflect this reporting requirement.
Providing potential applicants with more complete information about the
requirements with which they will have to comply if their applications
are successful is important, in order to enable them to make better
informed decisions on whether to invest the time and expense in
preparing applications. That benefit for potential applicants justifies
the burdens on agencies associated with issuing amendments to the
previously issued announcements.
List of Subjects in 2 CFR Part 25
Administrative practice and procedures, Grants administration,
Grant programs, Loan programs.
Danny Werfel,
Controller.
Authority and Issuance
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For the reasons set forth above, the Office of Management and Budget
amends 2 CFR, subtitle A, as follows:
SUBTITLE A
PARTS 2-99--[TRANSFERRED TO CHAPTER I]
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1. In subtitle A to title 2, parts 2 through 99, which are currently
reserved, are transferred to chapter I.
0
2. Subchapter A to chapter I, consisting of parts 2 through 19, is
established and reserved to read as follows:
Subchapter A--General Matters [Reserved]
PARTS 2-19--[RESERVED]
0
3. Subchapter B to chapter I, consisting of parts 20 through 39, is
established and added to read as follows:
Subchapter B--Pre-Award Responsibilities
PARTS 20-24--[RESERVED]
PART 25--UNIVERSAL IDENTIFIER AND CENTRAL CONTRACTOR REGISTRATION
Sec.
Subpart A--General
25.100 Purposes of this part.
25.105 Types of awards to which this part applies.
25.110 Types of recipient and subrecipient entities to which this
part applies.
25.115 Deviations.
Subpart B--Policy
25.200 Requirements for program announcements, regulations, and
application instructions.
25.205 Effect of noncompliance with a requirement to obtain a DUNS
number or register in the CCR.
25.210 Authority to modify agency application forms or formats.
25.215 Requirements for agency information systems.
25.220 Use of award term.
Subpart C--Definitions
25.300 Agency.
25.305 Award.
25.310 Central Contractor Registration (CCR).
25.315 Data Universal Numbering System (DUNS) Number.
25.320 Entity.
25.325 For-profit organization.
25.330 Foreign public entity.
25.335 Indian Tribe (or ``Federally recognized Indian Tribe'').
25.340 Local government.
25.345 Nonprofit organization.
25.350 State.
25.355 Subaward.
25.360 Subrecipient.
Appendix A to Part 25--Award Term
Authority: Pub. L. 109-282; 31 U.S.C. 6102.
Subpart A-General
Sec. 25.100 Purposes of this part.
This part provides guidance to agencies to establish:
(a) The Dun and Bradstreet (D&B) Data Universal Numbering System
(DUNS) number as a universal identifier for Federal financial
assistance applicants, as well as recipients and their direct
subrecipients.
(b) The Central Contractor Registration (CCR) as the repository for
standard information about applicants and recipients.
Sec. 25.105 Types of awards to which this part applies.
This part applies to an agency's grants, cooperative agreements,
loans, and other types of Federal financial assistance included in the
definition of ``award'' in Sec. 25.305. The requirements in this part
must be implemented for grants and cooperative agreements by October 1,
2010. The requirements in this part must be implemented for all other
award forms listed in Sec. 25.200 requirement at a date to be
specified in the future.
Sec. 25.110 Types of recipient and subrecipient entities to which
this part applies.
(a) General. Through an agency's implementation of the guidance in
this part, this part applies to all entities, other than those exempted
in paragraphs (b), (c), and (d) of this section, that--
(1) Apply for or receive agency awards; or
(2) Receive subawards directly from recipients of those agency
awards.
(b) Exemptions for individuals. None of the requirements in this
part apply to an individual who applies for or receives Federal
financial assistance as a natural person (i.e., unrelated to any
business or non-profit organization he or she may own or operate in his
or her name).
(c) Exemptions for Federal agencies. The requirement in this part
to maintain a current registration in the CCR does not apply to an
agency of the Federal
[[Page 55674]]
Government that receives an award from another agency.
(d) Other exemptions. (1) Under a condition identified in paragraph
(d)(2) of this section, an agency may exempt an entity from an
applicable requirement to obtain a DUNS number, register in the CCR, or
both.
(i) In that case, the agency must use a generic DUNS number in data
it reports to USASpending.gov if reporting for a prime award to the
entity is required by the Federal Funding Accountability and
Transparency Act (Pub. L. 109-282, hereafter cited as ``Transparency
Act'').
(ii) Agency use of a generic DUNS should be used rarely for prime
award reporting because it prevents prime awardees from being able to
fulfill the subward or executive compensation reporting required by the
Transparency Act.
(2) The conditions under which an agency may exempt an entity are--
(i) For any entity, if the agency determines that it must protect
information about the entity from disclosure, to avoid compromising
classified information or national security or jeopardizing the
personal safety of the entity's clients.
(ii) For a foreign entity applying for or receiving an award or
subaward for a project or program performed outside the United States
valued at less than $25,000, if the agency deems it to be impractical
for the entity to comply with the requirement(s).
(3) Agencies' use of generic DUNS numbers, as described in
paragraphs (d)(1) and (2) of this section, should be rare. Having a
generic DUNS number limits a recipient's ability to use Governmentwide
systems that are needed to comply with some reporting requirements.
Sec. 25.115 Deviations.
Deviations from this part require the prior approval of the Office
of Management and Budget (OMB).
Subpart B--Policy
Sec. 25.200 Requirements for program announcements, regulations, and
application instructions.
(a) Each agency that awards types of Federal financial assistance
included in the definition of ``award'' in Sec. 25.305 must include
the requirements described in paragraph (b) of this section in each
program announcement, regulation, or other issuance containing
instructions for applicants that either:
(1) Is issued on or after the effective date of this part; or
(2) Has application or plan due dates after October 1, 2010.
(b) The program announcement, regulation, or other issuance must
require each entity that applies and does not have an exemption under
Sec. 25.110 to:
(1) Be registered in the CCR prior to submitting an application or
plan;
(2) Maintain an active CCR registration with current information at
all times during which it has an active Federal award or an application
or plan under consideration by an agency; and
(3) Provide its DUNS number in each application or plan it submits
to the agency.
(c) For purposes of this policy:
(1) The applicant is the entity that meets the agency's or
program's eligibility criteria and has the legal authority to apply and
to receive the award. For example, if a consortium applies for an award
to be made to the consortium as the recipient, the consortium must have
a DUNS number. If a consortium is eligible to receive funding under an
agency program but the agency's policy is to make the award to a lead
entity for the consortium, the DUNS number of the lead entity will be
used.
(2) A ``program announcement'' is any paper or electronic issuance
that an agency uses to announce a funding opportunity, whether it is
called a ``program announcement,'' ``notice of funding availability,''
``broad agency announcement,'' ``research announcement,''
``solicitation,'' or some other term.
(3) To remain registered in the CCR database after the initial
registration, the applicant is required to review and update on an
annual basis from the date of initial registration or subsequent
updates its information in the CCR database to ensure it is current,
accurate and complete.
Sec. 25.205 Effect of noncompliance with a requirement to obtain a
DUNS number or register in the CCR.
(a) An agency may not make an award to an entity until the entity
has complied with the requirements described in Sec. 25.200 to provide
a valid DUNS number and maintain an active CCR registration with
current information (other than any requirement that is not applicable
because the entity is exempted under Sec. 25.110).
(b) At the time an agency is ready to make an award, if the
intended recipient has not complied with an applicable requirement to
provide a DUNS number or maintain an active CCR registration with
current information, the agency:
(1) May determine that the applicant is not qualified to receive an
award; and
(2) May use that determination as a basis for making an award to
another applicant.
Sec. 25.210 Authority to modify agency application forms or formats.
To implement the policies in Sec. Sec. 25.200 and 25.205, an
agency may add a DUNS number field to application forms or formats
previously approved by OMB, without having to obtain further approval
to add the field.
Sec. 25.215 Requirements for agency information systems.
Each agency that makes awards (as defined in Sec. 25.325) must
ensure that systems processing information related to the awards, and
other systems as appropriate, are able to accept and use the DUNS
number as the universal identifier for financial assistance applicants
and recipients.
Sec. 25.220 Use of award term.
(a) To accomplish the purposes described in Sec. 25.100, an agency
must include in each award (as defined in Sec. 25.305) the award term
in Appendix A to this part.
(b) An agency may use different letters and numbers than those in
Appendix A to this part to designate the paragraphs of the award term,
if necessary, to conform the system of paragraph designations with the
one used in other terms and conditions in the agency's awards.
Subpart C--Definitions
Sec. 25.300 Agency.
Agency means a Federal agency as defined at 5 U.S.C. 551(1) and
further clarified by 5 U.S.C. 552(f).
Sec. 25.305 Award.
(a) Award, for the purposes of this part, means an award of Federal
financial assistance that a non-Federal entity described in Sec.
25.110(a) receives or administers in the form of--
(1) A grant;
(2) A cooperative agreement (which does not include a cooperative
research and development agreement pursuant to the Federal Technology
Transfer Act of 1986, as amended (15 U.S.C. 3710a));
(3) A loan;
(4) A loan guarantee;
(5) A subsidy;
(6) Insurance;
(7) Food commodities;
(8) A direct appropriation;
(9) Assessed or voluntary contributions; or
(10) Any other financial assistance transaction that authorizes the
non-Federal entity's expenditure of Federal funds.
[[Page 55675]]
(b) An Award does not include:
(1) Technical assistance, which provides services in lieu of money;
and
(2) A transfer of title to Federally owned property provided in
lieu of money, even if the award is called a grant.
Sec. 25.310 Central Contractor Registration (CCR).
Central Contractor Registration (CCR) has the meaning given in
paragraph C.1 of the award term in Appendix A to this part.
Sec. 25.315 Data Universal Numbering System (DUNS) Number.
Data Universal Numbering System (DUNS) Number has the meaning given
in paragraph C.2 of the award term in Appendix A to this part.
Sec. 25.320 Entity.
Entity, as it is used in this part, has the meaning given in
paragraph C.3 of the award term in Appendix A to this part.
Sec. 25.325 For-profit organization.
For-profit organization means a non-Federal entity organized for
profit. It includes, but is not limited to:
(a) An ``S corporation'' incorporated under Subchapter S of the
Internal Revenue Code;
(b) A corporation incorporated under another authority;
(c) A partnership;
(d) A limited liability corporation or partnership; and
(e) A sole proprietorship.
Sec. 25.330 Foreign public entity.
Foreign public entity means:
(a) A foreign government or foreign governmental entity;
(b) A public international organization, which is an organization
entitled to enjoy privileges, exemptions, and immunities as an
international organization under the International Organizations
Immunities Act (22 U.S.C. 288-288f);
(c) An entity owned (in whole or in part) or controlled by a
foreign government; and
(d) Any other entity consisting wholly or partially of one or more
foreign governments or foreign governmental entities.
Sec. 25.335 Indian Tribe (or ``Federally recognized Indian Tribe'').
Indian Tribe (or ``Federally recognized Indian Tribe'') means any
Indian Tribe, band, nation, or other organized group or community,
including any Alaskan Native village or regional or village corporation
(as defined in, or established under, the Alaskan Native Claims
Settlement Act (43 U.S.C. 1601, et seq.)) that is recognized by the
United States as eligible for the special programs and services
provided by the United States to Indians because of their status as
Indians.
Sec. 25.340 Local government.
Local government means a:
(a) County;
(b) Borough;
(c) Municipality;
(d) City;
(e) Town;
(f) Township;
(g) Parish;
(h) Local public authority, including any public housing agency
under the United States Housing Act of 1937;
(i) Special district;
(j) School district;
(k) Intrastate district;
(l) Council of governments, whether or not incorporated as a
nonprofit corporation under State law; and
(m) Any other instrumentality of a local government.
Sec. 25.345 Nonprofit organization.
Nonprofit organization--
(a) Means any corporation, trust, association, cooperative, or
other organization that--
(1) Is operated primarily for scientific, educational, service,
charitable, or similar purposes in the public interest;
(2) Is not organized primarily for profit; and
(3) Uses net proceeds to maintain, improve, or expand the
operations of the organization.
(b) Includes nonprofit--
(1) Institutions of higher education;
(2) Hospitals; and
(3) Tribal organizations other than those included in the
definition of ``Indian Tribe.''
Sec. 25.350 State.
State means--
(a) Any State of the United States;
(b) The District of Columbia;
(c) Any agency or instrumentality of a State other than a local
government or State-controlled institution of higher education;
(d) The Commonwealths of Puerto Rico and the Northern Mariana
Islands; and
(e) The United States Virgin Islands, Guam, American Samoa, and a
territory or possession of the United States.
Sec. 25.355 Subaward.
Subaward has the meaning given in paragraph C.4 of the award term
in Appendix A to this part.
Sec. 25.360 Subrecipient.
Subrecipient has the meaning given in paragraph C.5 of the award
term in Appendix A to this part.
Appendix A to Part 25--Award Term
I. Central Contractor Registration and Universal Identifier
Requirements
A. Requirement for Central Contractor Registration (CCR)
Unless you are exempted from this requirement under 2 CFR
25.110, you as the recipient must maintain the currency of your
information in the CCR until you submit the final financial report
required under this award or receive the final payment, whichever is
later. This requires that you review and update the information at
least annually after the initial registration, and more frequently
if required by changes in your information or another award term.
B. Requirement for Data Universal Numbering System (DUNS) Numbers
If you are authorized to make subawards under this award, you:
1. Must notify potential subrecipients that no entity (see
definition in paragraph C of this award term) may receive a subaward
from you unless the entity has provided its DUNS number to you.
2. May not make a subaward to an entity unless the entity has
provided its DUNS number to you.
C. Definitions
For purposes of this award term:
1. Central Contractor Registration (CCR) means the Federal
repository into which an entity must provide information required
for the conduct of business as a recipient. Additional information
about registration procedures may be found at the CCR Internet site
(currently at http://www.ccr.gov).
2. Data Universal Numbering System (DUNS) number means the nine-
digit number established and assigned by Dun and Bradstreet, Inc.
(D&B) to uniquely identify business entities. A DUNS number may be
obtained from D&B by telephone (currently 866-705-5711) or the
Internet (currently at http://fedgov.dnb.com/webform).
3. Entity, as it is used in this award term, means all of the
following, as defined at 2 CFR part 25, subpart C:
a. A Governmental organization, which is a State, local
government, or Indian Tribe;
b. A foreign public entity;
c. A domestic or foreign nonprofit organization;
d. A domestic or foreign for-profit organization; and
e. A Federal agency, but only as a subrecipient under an award
or subaward to a non-Federal entity.
4. Subaward:
a. This term means a legal instrument to provide support for the
performance of any portion of the substantive project or program for
which you received this award and that you as the recipient award to
an eligible subrecipient.
b. The term does not include your procurement of property and
services needed to carry out the project or program (for further
explanation, see Sec. ----.210 of the attachment to OMB Circular A-
133, ``Audits of States, Local Governments, and Non-Profit
Organizations'').
[[Page 55676]]
c. A subaward may be provided through any legal agreement,
including an agreement that you consider a contract.
5. Subrecipient means an entity that:
a. Receives a subaward from you under this award; and
b. Is accountable to you for the use of the Federal funds
provided by the subaward.
PART 26-39--[RESERVED]
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4. Subchapter C to chapter I, consisting of parts 40 through 59, is
established and reserved to read as follows:
Subchapter C--Award Content and Format [Reserved]
PARTS 40-59--[RESERVED]
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5. Subchapter D to chapter I, consisting of parts 60 through 79, is
established and added to read as follows:
Subchapter D--Post-Award Responsibilities
PARTS 60-79--[RESERVED]
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6. Subchapter E to chapter I, consisting of parts 80 through 99, is
established and reserved to read as follows:
Subchapter E--Cost Principles [Reserved]
PARTS 80-99--[RESERVED]
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7. Subchapter F to chapter I, consisting of parts 100 through 119, is
established and reserved to read as follows:
Subchapter F--Audit Requirements [Reserved]
PARTS 100-119--[RESERVED]
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8. Subchapter G to chapter I, consisting of parts 120 through 199, is
established, and a new subchapter heading is added to read as follows:
Subchapter G--National Policy Requirements
[FR Doc. 2010-22706 Filed 9-13-10; 8:45 am]
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