TITLE 31 - US CODE - CHAPTER 63 - USING PROCUREMENT CONTRACTS AND GRANT AND COOPERATIVE AGREEMENTS

31 USC 6301 - Purposes

The purposes of this chapter are to
(1) promote a better understanding of United States Government expenditures and help eliminate unnecessary administrative requirements on recipients of Government awards by characterizing the relationship between executive agencies and contractors, States, local governments, and other recipients in acquiring property and services and in providing United States Government assistance;
(2) prescribe criteria for executive agencies in selecting appropriate legal instruments to achieve
(A) uniformity in their use by executive agencies;
(B) a clear definition of the relationships they reflect; and
(C) a better understanding of the responsibilities of the parties to them; and
(3) promote increased discipline in selecting and using procurement contracts, grant agreements, and cooperative agreements, maximize competition in making procurement contracts, and encourage competition in making grants and cooperative agreements.

31 USC 6302 - Definitions

In this chapter
(1) executive agency does not include a mixed-ownership Government corporation.
(2) grant agreement and cooperative agreement do not include an agreement under which is provided only
(A) direct United States Government cash assistance to an individual;
(B) a subsidy;
(C) a loan;
(D) a loan guarantee; or
(E) insurance.
(3) local government means a unit of government in a State, a local public authority, a special district, an intrastate district, a council of governments, a sponsor group representative organization, an interstate entity, or another instrumentality of a local government.
(4) other recipient means a person or recipient (except a State or local government) authorized to receive United States Government assistance or procurement contracts and includes a charitable or educational institution.
(5) State means a State of the United States, the District of Columbia, a territory or possession of the United States, an agency or instrumentality of a State, and a multi-State, regional, or interstate entity having governmental duties and powers.

31 USC 6303 - Using procurement contracts

An executive agency shall use a procurement contract as the legal instrument reflecting a relationship between the United States Government and a State, a local government, or other recipient when
(1) 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
(2) the agency decides in a specific instance that the use of a procurement contract is appropriate.

31 USC 6304 - Using grant agreements

An executive agency shall use a grant agreement as the legal instrument reflecting a relationship between the United States Government and a State, a local government, or other recipient when
(1) the principal purpose of the relationship is to transfer a thing of value to the State or 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
(2) substantial involvement is not expected between the executive agency and the State, local government, or other recipient when carrying out the activity contemplated in the agreement.

31 USC 6305 - Using cooperative agreements

An executive agency shall use a cooperative agreement as the legal instrument reflecting a relationship between the United States Government and a State, a local government, or other recipient when
(1) 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
(2) 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.

31 USC 6306 - Authority to vest title in tangible personal property for research

The head of an executive agency may vest title in tangible personal property in a nonprofit">nonprofit institution of higher education or in a nonprofit">nonprofit organization whose primary purpose is conducting scientific research
(1) when the property is bought with amounts provided under a procurement contract, grant agreement, or cooperative agreement with the institution or organization to conduct basic or applied scientific research;
(2) when the head of the agency decides the vesting furthers the objectives of the agency;
(3) without further obligation to the United States Government; and
(4) under conditions the head of the agency considers appropriate.

31 USC 6307 - Interpretative guidelines and exemptions

The Director of the Office of Management and Budget may
(1) issue supplementary interpretative guidelines to promote consistent and efficient use of procurement contracts, grant agreements, and cooperative agreements; and
(2) exempt a transaction or program of an executive agency from this chapter.

31 USC 6308 - Use of multiple relationships for different parts of jointly financed projects

This chapter does not require an executive agency to establish only one relationship between the United States Government and a State, a local government, or other recipient on a jointly financed project involving amounts from more than one program or appropriation when different relationships would otherwise be appropriate for different parts of the project.