[Federal Register Volume 68, Number 124 (Friday, June 27, 2003)]
[Notices]
[Pages 38402-38405]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-16356]


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OFFICE OF MANAGEMENT AND BUDGET


Use of a Universal Identifier by Grant Applicants

AGENCY: Office of Management and Budget.

ACTION: Notice of final policy issuance.

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SUMMARY: The Office of Management and Budget (OMB) is issuing a policy 
directive to implement the requirement for grant applicants to provide 
a Dun and Bradstreet (D&B) Data Universal Numbering System (DUNS) 
number when applying for Federal grants or cooperative agreements on or 
after October 1, 2003.
    OMB has determined that there is a need for improved statistical 
reporting of Federal grants and cooperative agreements. Use of the DUNS 
number government-wide will provide a means to identify entities 
receiving those awards and their business relationships. The identifier 
will be used for tracking purposes, and to validate address and point 
of contact information. The DUNS number already is in use by the 
Federal government generally to identify entities receiving Federal 
contracts and by some agencies in their grant and cooperative agreement 
processes. Among existing numbering systems, the DUNS is the only one 
that provides the Federal government the ability to determine 
hierarchical and family-tree data for related organizations.
    The DUNS number will be required whether an applicant is submitting 
a paper application or using the government-wide electronic portal 
(Grants.gov). By using the Grants.gov portal, entities will be able to 
store in a central repository organizational information that does not 
change from application to application. The DUNS number will be one of 
those stored elements.
    The DUNS number will supplement other identifiers required by 
statute or regulation, such as tax identification numbers. It is our 
intent over time to use the DUNS number throughout the grants life 
cycle.
    Organizations should verify that they have a DUNS number or take 
the steps needed to obtain one as soon as possible if there is a 
possibility that they will be applying for Federal grants or 
cooperative agreements on or after October 1, 2003. Organizations can 
receive a DUNS number at no cost by calling the dedicated toll-free 
DUNS Number request line at 1-866-705-5711. Individuals who would 
personally receive a grant or cooperative agreement award from the 
Federal government apart from any business or non-profit organization 
they may operate are exempt from this requirement.

DATES: A DUNS number must be included in every application for a new 
award or renewal of an award, including applications or plans under 
mandatory grant programs, submitted on or after October 1, 2003.

FOR FURTHER INFORMATION CONTACT: Sandra R. Swab, Office of Federal 
Financial Management, Office of Management and Budget, 725 17th Street, 
NW., Washington, DC 20503; telephone 202-395-5642; or e-mail 
[email protected].

SUPPLEMENTARY INFORMATION

A. Background

    In a Federal Register notice [67 FR 66177] published on October 30, 
2002, the Office of Management and Budget (OMB) proposed to establish 
the DUNS number as the universal identifier for Federal grant and 
cooperative agreement applicants. The OMB notice also included a 
proposed policy to establish this policy as a government-wide 
requirement. We received comments from 37 separate entities: 3 
universities; 12 State/local governments; 7 non-profit organizations; 9 
Federal agencies; 5 associations, and a for-profit business. We 
considered all comments in developing the final policy. Comments 
generally were in support of the concept of the Universal Identifier 
although there were concerns about the use of the DUNS number and the 
impact on certain types of recipients. These concerns are addressed in 
the responses below. Other comments which were outside the scope of 
this proposal, will be separately considered by the Grants.gov Program 
Management Office or the Public Law 106-107 working groups, as 
appropriate.
    The following paragraphs summarize the major comments and our 
responses. For simplicity, the term ``grant'' used in the following 
section also means ``cooperative agreement''.

B. Comments and Responses

Comments on Applicability

    Comment: Four commenters questioned whether the requirement to 
obtain a DUNS number should be applied to individuals. They urged that 
individuals that apply for grants directly from the Federal government 
be exempted from the requirement to obtain a DUNS number in order to 
apply.
    Response: Agree. We clarified the policy directive to indicate that 
individuals who would personally receive a grant or cooperative 
agreement award from the Federal government, apart from any business or 
non-profit organization they may operate, are not required to provide a 
DUNS number in order to apply for or conduct subsequent business with 
the Federal government under a grant. Individuals may continue to apply 
under programs for which they are eligible applicants without providing 
a DUNS number.
    Comment: Ten commenters indicated that applying the DUNS number 
requirement to subrecipients would create difficulty and perhaps delay 
primary applicants in preparing their funding requests.
    Response: Agree. The final policy directive indicates that 
applicants are not required to submit DUNS numbers for entities with 
which they may enter into subawards. Only the primary applicant, i.e., 
the entity that makes application to the Federal government, including 
State, local, and Tribal governments, and other entities receiving 
block or other mandatory grants, will need a DUNS number at time of 
application.
    Comment: Five commenters recommended that non-U.S. recipients be 
excluded from the DUNS number requirement since it would be difficult 
for many foreign organizations to obtain the number.
    Response: Disagree. Foreign applicant organizations which are able 
to apply for a grant and meet the normal terms and conditions, 
including reporting requirements should be able to apply for and 
receive a DUNS number.

Comments on Numbering System/Alternate Process

    Comment: Fourteen commenters recommended that the Federal Employer 
Identification Number (EIN) be considered for the universal identifier 
instead of the DUNS because it is already widely used during the 
Federal government's administrative processing of grants, or that an 
entirely new numbering system be designed.
    Response: Disagree. Although other numbering systems currently are 
in use (and will continue), none is adequate to identify family tree 
relationships or can provide the access and validation capabilities 
offered by the DUNS. Many potential applicants already possess DUNS 
numbers. Further, the cost of developing and maintaining another 
numbering system for grantees would not be justified.
    Comment: One commenter recommended we use the Social Security 
Number (SSN) as the universal identifier. The commenter suggested that 
the DUNS number be used only for organizations, or other entities for 
which a SSN would not be appropriate.
    Response: Agree with the substance of the comment. We have exempted 
individuals who would personally receive a grant or cooperative 
agreement award from the Federal government apart from any business or 
non-profit

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organization they may operate from the policy directive's 
applicability.
    Comment: Two commenters appeared to misinterpret our proposal for a 
universal identifier and assumed that our intent was to have the DUNS 
number replace all other identifiers. One commenter also suggested that 
the multiple grant identifiers currently in use by various Federal 
agencies should be replaced by DUNS, and the DUNS should be used 
consistently throughout the grant life cycle to complement grant award 
numbers.
    Response: Agree. The final policy directive clearly states the 
purpose of the DUNS and the continued existence of other numbering 
systems. It also is our intent over time to use the DUNS number in 
other parts of the grants life cycle, replacing other numbers if 
possible.

Comments on Implementation

    Comment: Six commenters expressed concern regarding the burden 
required in obtaining a DUNS number for those organizations that do not 
currently have one, with one noting a particular burden for small and 
community and faith-based organizations.
    Response: Disagree. OMB has determined that obtaining a DUNS number 
is not a significant burden under the Paperwork Reduction Act. There 
should be minimal burden on applicants. Obtaining a DUNS number is a 
one-time activity. With use of the toll-free request line, there will 
be an immediate DUNS number assignment at no charge to the requestor.
    Comment: Nine commenters requested guidance for entities that have 
multiple DUNS numbers. They were particularly concerned that large 
organizations with multiple DUNS numbers may not use the appropriate 
DUNS number when applying, which would result in inaccurate tracking. 
They also questioned whether Federal agencies will be responsible for 
verifying that applicants are using valid DUNS numbers.
    Response: Agree in part. Dun and Bradstreet (D&B) will work with an 
applicant to understand or change their numbers, however each 
organization is responsible for controlling its own DUNS hierarchy. D&B 
recommends a single point of contact for each entity. The DUNS will not 
affect the ability of the entity to structure its organizational 
delegations and authorities for submitting applications. A central 
Federal repository [currently named the Business Partner Network (BPN), 
formerly the Central Contractor Registry (CCR)], rather than individual 
Federal agencies, will be responsible for performing periodic 
verification of DUNS numbers.
    Comment: Four commenters suggested that the universal identifier 
might enhance the ability of State governments to track recipients of 
Federal funds within their States. These commenters also requested 
clarification of whether payment processes will be affected, for 
example, if the DUNS number would be required as part of each request 
to draw down Federal funds.
    Response: No change. OMB is working to ensure that, for 
applications subject to the DUNS number requirements, Federal grant 
financial reporting, payment, and audit requirements are modified to 
also incorporate use of the DUNS number. It is OMB's intent to expand 
use of the DUNS number throughout the entire grants life-cycle.

Comments on Education/Outreach

    Comment: Three commenters strongly recommended that applicants be 
notified up front through both paper and electronic means of the need 
to apply for a DUNS number before submitting a grant application and/or 
verify their organization's DUNS number. In addition, they suggested 
that applicants should know in advance what information they would be 
asked to provide.
    Response: Agree. Guidance on how to obtain a DUNS number, verify 
whether an entity already has a DUNS number, and obtain copies of the 
organization family-tree will be provided at the Grants.gov portal. 
Links to this guidance will be included on Federal web sites, and it 
will be used in outreach and other education efforts.
    Comment: Three commenters asked for information concerning how the 
Federal government will conduct outreach on the new policy within the 
various grant communities. In particular, they asked whose 
responsibility it is to inform the public. They suggested that OMB work 
with technical assistance providers that currently provide services to 
nonprofits on the outreach and educational efforts.
    Response: Agree. Federal agencies will be responsible for notifying 
their respective applicant/recipient communities of the change. A link 
to the guidance on how to obtain a DUNS number will be available from 
Federal web sites. In addition, we will work with associations 
representing various constituencies for their assistance in ``getting 
the word out.''

    Dated: June 23, 2003.
Linda M. Springer,
Controller.

To the Heads of Executive Departments and Agencies

Subject: Requirement for a DUNS Number in Applications for Federal 
Grants and Cooperative Agreements.

    1. Purpose. This policy directive establishes the requirement that 
applications for Federal grants or cooperative agreements include a Dun 
and Bradstreet (D&B) Data Universal Numbering System (DUNS) number.
    2. Authority. This policy directive is part of the implementation 
of the Federal Financial Assistance Management Improvement Act of 1999 
(Pub. L. 106-107). This policy is also designed to further implement 
the Grants.gov">E-Grants.gov initiative, one of the 24 electronic government (E-
Gov) initiatives under the President's Management Agenda.
    3. Background. Public Law 106-107 requires the Office of Management 
and Budget (OMB) to direct, coordinate, and assist Executive Branch 
departments and agencies in establishing an interagency process to 
streamline and simplify Federal financial assistance procedures for 
non-Federal entities. It also requires executive agencies to allow 
applicants to electronically apply for, and report on the use of, funds 
from the Federal financial assistance programs administered by the 
agency.
    Under the Grants.gov">E-Grants.gov initiative, the Federal agencies are in the 
process of developing an electronic grant application system using 
standard core data elements. The DUNS number is one of those data 
elements. It will be used to link to fixed applicant data, such as name 
and address fields, maintained in a central Federal registration 
repository. This will allow the data to automatically populate 
corresponding fields in the electronic application. Applicants will not 
have to re-enter this information on each electronic application they 
submit. The DUNS number requirement is also applicable to paper 
applications because of planned reporting requirements.
    4. Policy.
    a. Applicability. This policy applies to all types of entities 
applying for Federal grants or cooperative agreements under 
discretionary and mandatory grant programs or activities except:
    i. Individuals who would personally receive a grant or cooperative 
agreement award from the Federal government apart from any business or 
non-profit organization they may operate.
    ii. Any applicant that receives an exemption, or an applicant under 
a

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program that receives an exemption (see paragraph c. below).
    For purposes of this policy, the applicant is the entity that meets 
the agency's or program's eligibility criteria and has the legal 
authority to apply. For example, a consortium formed to apply for a 
grant or cooperative agreement must obtain a DUNS number for that 
consortium. If a consortium is eligible, and 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.
    b. Effect. Every application for a new award or renewal of an 
award, including applications or plans under mandatory grant programs, 
submitted on or after October 1, 2003 must include a DUNS number for 
the applicant. Unless an exemption is granted, an application will not 
be considered complete until a valid DUNS number is provided by the 
applicant.
    For Federal purposes, the applicant is not required at this time to 
submit DUNS numbers for entities with which it may enter into 
subawards.
    The DUNS number does not replace existing numbers, such as the 
Employer Identification Number (EIN), the Tax Identification Number 
(TIN), and State Application Identifier (SAI) numbers that are required 
by statute, Executive Order, or regulation.
    c. Exemptions. Agencies may not grant exemptions from this policy. 
Requests for exemptions must be directed to OMB.
    5. Agency Responsibilities. Agencies that award grants or 
cooperative agreements shall:
    a. Issue any needed implementing direction to component offices to 
meet the requirements of this policy directive.
    b. Provide outreach and education appropriate to their applicant 
communities regarding the requirement for a DUNS number. Agencies 
should encourage entities that anticipate applying for Federal grants 
or cooperative agreements to obtain a DUNS number in advance of a 
specific application. Agencies should inform entities that it is their 
responsibility to obtain a DUNS number.
    c. Include this requirement in all funding opportunity 
announcements issued on or after the effective date of this policy 
directive with application due dates or acceptance dates on or after 
October 1, 2003. For all other funding opportunity announcements with 
due dates or acceptance dates on or after October 1, 2003, agencies 
must amend their announcements or take other appropriate measures to 
inform potential applicants of this requirement. These requirements 
apply equally to other types of notifications if funding opportunity 
announcements are not used.
    d. Revise their grant and cooperative agreement applications and 
plans to include a DUNS number. OMB approval is not required to add a 
DUNS number field to previously approved forms.
    e. Ensure that their grant-related processing systems, and other 
systems as appropriate, are able to accept the DUNS number.
    6. Information Contact. Direct any requests for exemption or 
questions about this policy directive to Sandra Swab, Office of Federal 
Financial Management, 202-395-5642 (direct) or 202-395-3993 (main 
office), or via e-mail ([email protected])
    7. Effective Date. This policy directive is effective 30 days after 
issuance.


    Dated: June 23, 2003.
Linda M. Springer,
Controller.
[FR Doc. 03-16356 Filed 6-26-03; 8:45 am]
BILLING CODE 3110-01-P