[Federal Register: June 6, 2008 (Volume 73, Number 110)]
[Proposed Rules]
[Page 32417-32421]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06jn08-31]
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OFFICE OF MANAGEMENT AND BUDGET
2 CFR Part 33
Requirements for Federal Funding Accountability and Transparency
Act Implementation
AGENCY: Office of Federal Financial Management, Office of Management
and Budget (OMB).
ACTION: Proposed guidance to agencies.
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SUMMARY: OMB proposes to issue guidance to agencies to establish
requirements for federal financial assistance applicants, recipients,
and subrecipients that are necessary for the implementation of the
Federal Funding Accountability and Transparency Act of 2006 (Pub. L.
109-282, hereafter referred to as ``the Transparency Act'' or ``the
Act''). An agency under the proposed guidance would 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. The guidance also provides standard wording for an award term
that each agency would include in its financial assistance awards. The
award term would require recipients and subrecipients that are subject
to the policy to have DUNS numbers, maintain current CCR registrations,
and report subaward data that the implementation of the Transparency
Act requires. This proposed implementation of the requirement for
reporting of subawards under federal financial assistance awards
parallels the Federal Acquisition Regulation implementation of that
Transparency Act reporting requirement for subcontracts under federal
procurement contracts (72 FR 51306, September 6, 2007).
DATES: Comments are due on or before August 5, 2008.
ADDRESSES: Due to potential delays in OMB's receipt and processing of
mail sent through the U.S. Postal Service, we encourage respondents to
submit comments electronically to ensure timely receipt. We cannot
guarantee that comments mailed will be received before the comment
closing date.
Electronic mail comments may be submitted to: Marguerite Pridgen at
mpridgen@omb.eop.gov. Please include ``Transparency Act Guidance'' in
the subject line and the full body of your comments in the text of the
electronic message and not as an attachment. Please include your name,
title, organization, postal address, telephone number, and e-mail
address in the text of the message. Comments may also be submitted via
facsimile to 202-395-3952.
Comments may be mailed to Marguerite Pridgen, Office of Federal
Financial Management, Office of Management and Budget, Room 6025, New
Executive Office Building, Washington, DC 20503.
Comments may also be sent via http://www.regulations.gov--a Federal
E-Government Web site that allows the public to find, review, and
submit comments on documents that agencies have published in the
Federal Register and that are open for comment. Simply type
``Transparency Act Guidance'' (in quotes) in the Comment or Submission
search box, click Go, and follow the instructions for submitting
comments. Comments received by the date specified above will be
included as part of the official record.
All responses will be summarized and included in the request for
OMB approval.
FOR FURTHER INFORMATION CONTACT: Marguerite Pridgen, Office of Federal
Financial Management, Office of Management and Budget, telephone (202)
395-7844 (direct) or (202) 395-3993 (main office) and e-mail:
Marguerite_E._Pridgen@omb.eop.gov.
SUPPLEMENTARY INFORMATION:
I. Background on the Transparency Act
The Act requires the Office of Management and Budget (OMB) to
ensure the existence and operation of a single Web site at which the
public may access and search data on federal financial assistance
awards. It:
Specifies that data on federal agencies' awards to non-
federal entities are to be available at the Web site by January 1,
2008.
Specifies that data on subawards under those federal
awards are to be available by January 1, 2009.
Exempts awards to individuals and individual transactions
of less than $25,000.
The Act identifies sixteen specific data elements that the Web site
must include for each federal award and authorizes OMB to specify
additional elements for other relevant information. The sixteen
elements the Act specifies are:
The name of the entity receiving the award;
The amount of the award;
The transaction type;
The funding agency;
The Catalog of Federal Domestic Assistance number;
The program source;
The location of the entity receiving the award, including
four data elements for the city, State, Congressional district, and
country;
The location of the primary place of performance under the
award, including four data elements for the city, State, Congressional
district, and country;
A unique identifier of the entity receiving the award; and
A unique identifier of the parent entity of the recipient,
should the recipient be owned by another entity.
Although the Act does not identify specific data elements for
subaward reporting, it does require that the data about subawards be
disclosed in the same manner as the data for federal agencies' awards.
It also requires OMB to conduct a pilot to determine how best to
implement a reporting system under which the entity issuing a subaward
is responsible for fulfilling the subaward reporting requirement.
II. Purposes of the Guidance
The proposed guidance following this preamble has three purposes,
all of which are related to the implementation of the Transparency Act.
Those purposes, which are identified in section 33.100 of the guidance,
are to establish:
A requirement to use the Data Universal Numbering System
(DUNS) number as the unique identifier for each entity receiving an
award or subaward;
Requirements for applicant, recipient and subrecipient
registration in the Central Contractor Registration (CCR) as a way to
maintain a reliable source of standard information about organizations
for Transparency Act reporting and other purposes; and
Requirements for recipient and subrecipient reporting of
obligations of federal funds for subawards.
The following paragraphs provide further information about these
three requirements.
DUNS number. The interagency task force that OMB established to
help implement the Transparency Act selected the DUNS number as the
unique identifier that the Act requires to be reported both for the
recipient and, if applicable, its parent entity. The proposed guidance
following this preamble therefore includes a Government-wide policy
under which agencies will require federal financial assistance
applicants and recipients, with a few exceptions, to have DUNS numbers.
The proposed guidance thereby would expand a current OMB policy
requiring use of DUNS numbers in conjunction with grants and
cooperative agreements, by broadening the policy to loans and other
types of
[[Page 32418]]
federal financial assistance awards. The current policy, the full text
of which is in the Federal Register [68 FR 38402, June 27, 2003], was
established by the July 15, 2003, OMB memorandum M-03-16, ``OMB Issues
Grants Management Policies'' (available at http://www.whitehouse.gov/
omb/memoranda/m03-16.pdf).
Central Contractor Registration. The proposed guidance also would
establish a requirement for applicant, recipient, and subrecipient
registration in the CCR, as a way to help ensure consistent reporting
of data about each entity and thereby make the data more useful to the
public. Without the requirement, multiple agencies doing business with
the same entity may use different variations of the entity's name,
address, or parent organization when they each report on their awards
to the entity. Using the DUNS number as the identifier for the entity,
as described in the preceding paragraph, can partially alleviate that
problem--each report of an award or subaward then can be linked to
standard information about the award recipient in data bases of Dun and
Bradstreet, Inc., which assigns and maintains DUNS numbers and
associated organizational information. The proposed guidance requiring
recipient and subrecipient registration in the CCR would further
improve data quality by allowing a report of an award or subaward to
also be linked to standard information that federal business partners
provide about themselves to that Government repository.
Subaward reporting. The Transparency Act requires reporting of
information about subawards under federal financial assistance awards.
The proposed guidance therefore includes a basic policy requiring
recipients and subrecipients to report on subawards they make. For two
reasons, however, it does not specify the data elements that must be
reported about each subaward. One reason is that data elements are best
maintained separately from the Code of Federal Regulations. The other
reason is that the data elements may be refined due to lessons learned
during the subaward pilot that The Transparency Act requires, so they
need not be formally established until after the pilot. At a later
date, separately from today's policy proposal, we will publish the data
elements for subaward reporting in the Federal Register with an
opportunity for comment before formally establishing them as the
required set.
III. The Proposed Guidance
The proposed guidance in 2 CFR part 33 is organized into three
subparts:
Subpart A states the purposes of the guidance, as
described above in Section II of this preamble. It also specifies the
types of federal financial assistance awards and types of recipient and
subrecipient entities to which the proposed guidance would apply.
Subpart B contains five sections that provide authorities
and specify responsibilities for agencies. Section 33.200 states
requirements for the content of agencies' program announcements,
regulations, or other issuances providing instructions for applicants.
Section 33.205 authorizes agencies to disqualify applicants that do not
comply with requirements to provide a DUNS er and register in the CCR.
Section 33.210 permits agencies to add DUNS number fields to
application forms or formats that OMB cleared previously and section
33.215 establishes requirements for agencies' information systems.
Finally, section 33.220 specifies standard wording of an award term for
federal financial assistance subject to The Transparency Act. The award
term requires recipients and subrecipients to register in the CCR and
report on subaward obligations that are subject to the Transparency Act
reporting requirements.
Subpart C contains definitions of terms used in 2 CFR part
33.
IV. Invitation To Comment
We invite comments from the affected public on all aspects of the
proposed guidance to agencies, including the proposal to require use of
the DUNS number, registration in the CCR, and reporting on subawards.
All comments will be considered in developing the final guidance.
List of Subjects in 2 CFR Part 33
Business and industry, Colleges and universities, Cooperative
agreements, Farmers, Federal aid programs, Grant programs, Grants
administration, Hospitals, Indians, Insurance, International
organizations, Loan programs, Nonprofit organizations, Reporting and
recordkeeping requirements, State and local governments, Subsidies.
Danny Werfel,
Deputy Controller.
Authority and Issuance
For the reasons set forth above, the Office of Management and
Budget proposes to amend 2 CFR chapter I by adding part 33 to read as
follows:
PART 33--UNIVERSAL IDENTIFIER, CENTRAL CONTRACTOR REGISTRATION, AND
SUBAWARD REPORTING
Sec.
Subpart A--General
33.100 Purposes of this part.
33.105 Applicability.
33.110 Deviations.
Subpart B--Policy
33.200 Requirements for program announcements, regulations, and
application instructions.
33.205 Effect of noncompliance with requirements in Sec. 33.200.
33.210 Authority to modify agency application forms or formats.
33.215 Requirements for agency information systems.
33.220 Award term.
Subpart C--Definitions
33.300 Agency.
33.305 Award.
33.310 Central Contractor Registration (CCR).
33.315 Data Universal Numbering System (DUNS) Number.
33.320 Entity.
33.325 Federal financial assistance subject to the Transparency Act.
33.330 For-profit organization.
33.335 Foreign public entity.
33.340 Indian tribe (or ``federally recognized Indian tribe'').
33.345 Local government.
33.350 Nonprofit organization.
33.355 State.
33.360 Subaward.
33.365 Subrecipient.
Authority: Pub. L. 109-282; 31 U.S.C. 6102.
Subpart A-General
Sec. 33.100 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, recipients, and subrecipients.
(b) The Central Contractor Registration (CCR) as the repository for
standard information about federal financial assistance applicants,
recipients, and subrecipients.
(c) Requirements for recipients' and subrecipients' reporting of
information on subawards, as required by the Federal Funding
Accountability and Transparency Act of 2006 (Pub. L. 109-282, hereafter
referred to as ``the Transparency Act'').
Sec. 33.105 Applicability.
(a) Types of awards. This part applies to an agency's grants,
cooperative
[[Page 32419]]
agreements, loans, and other federal financial assistance subject to
the Transparency Act, as defined in Sec. 33.325.
(b) Types of recipient and subrecipient entities. (1) General.
Through an agency's implementation of the guidance in this part, this
part applies to all entities, other than those excepted in paragraph
(b)(2) of this section, that--
(i) Apply for or receive agency awards; or
(ii) Receive subawards under those awards.
(2) Exceptions. (i) 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).
(ii) The requirement in this part to maintain a current
registration in the CCR does not apply to:
(A) An agency of the Federal Government that receives an award from
another agency.
(B) A foreign entity applying for or receiving an award or subaward
for a project or program performed outside the United States, if an
agency deems it to be impractical for the entity to register in the
CCR.
(C) An entity to which an agency grants an exception based on a
need to 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.
Sec. 33.110 Deviations.
Deviations from this part require the prior approval of the Office
of Management and Budget (OMB).
Subpart B--Policy
Sec. 33.200 Requirements for program announcements, regulations, and
application instructions.
(a) Each agency that awards grants, cooperative agreements, loans,
or other Federal financial assistance subject to the Transparency Act
must include the requirements described in paragraph (b) of this
section in each program announcement, regulation, or other issuance
containing instructions for applicants:
(1) Under which awards may be made that are subject to Transparency
Act reporting requirements; and
(2) That either:
(i) Is issued on or after the effective date of this part; or
(ii) Has application or plan due dates or anticipated award dates
after October 1, 2008.
(b) The program announcement, regulation, or other issuance must
require each entity that applies and does not have an exception under
Sec. 33.105(b)(2) to:
(1) Be registered in the CCR prior to submitting an application or
plan;
(2) Maintain a current CCR registration 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 something else.
Sec. 33.205 Effect of noncompliance with requirements in Sec.
33.200.
(a) An agency may not make an award to an entity until the entity
has complied with all applicable requirements to provide a valid DUNS
number and register in the CCR.
(b) If an entity does not comply with an applicable requirement to
provide a DUNS number or register in the CCR, as specified in the
program announcement or other instructions, 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 an
alternative applicant.
Sec. 33.210 Authority to modify agency application forms or formats.
To implement the policies in Sec. Sec. 33.200 and 33.205, 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. 33.215 Requirements for agency information systems.
Each agency that awards or administers grants, cooperative
agreements, loans, or other federal financial assistance subject to the
Transparency Act 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. 33.220 Award term.
(a) To accomplish the purposes described in Sec. 33.100, an agency
must include the following award term in each award to a non-federal
entity of federal financial assistance subject to the Transparency Act:
I. Central Contractor Registration and subaward reporting.
a. Central Contractor Registration.
1. Unless you are excepted from this requirement under 2 CFR
33.105(b)(2), you as the recipient must maintain the currency of your
information in the Central Contractor Registration (CCR) until you
submit the final financial report required under this award or receive
the final payment, whichever is later.
2. If you are authorized to make subawards under this award and it
is possible that you will make a subaward to an entity (see definition
in paragraph d of this award term) with a total value of $25,000 or
more in federal funds over the life of the subaward, you:
i. Must notify potential subrecipients that no entity may receive
funds for a subaward with a total value in that range unless the entity
is registered in the CCR, which also requires that the subrecipient
have a Data Universal Numbering System (DUNS) number.
ii. May not make a subaward to an entity with a total value in that
range, or obligate additional funds for the subaward, unless the entity
is registered in the CCR.
b. Reporting of first-tier subawards.
1. Applicability. Unless you have a current exception from this
requirement under paragraph (e) of the Federal Funding Accountability
and Transparency Act of 2006 (Pub. L. 109-282), you must report each
action that obligates $25,000 or more in federal funds under any
subaward to an entity (see definitions in paragraph d of this award
term).
2. Where and when to report. You must report each action described
in paragraph b.1 of this award term:
i. To the http://WWW.USASpending.gov at usaspendingdata@gsa.gov.
[[Page 32420]]
ii. No later than 30 days after the date of the obligation.
3. What to report. You must report the information about each
action that the http://WWW.USASpending.gov specifies.
c. Requirements for lower-tier subawards and obligating actions.
1. Subawards. In any subaward that you make to an entity under this
award that you expect to have a total value of $25,000 or more in
federal funds over the life of the subaward, you must include an award
term that:
i. Provides the subrecipient with the federal award number or other
unique federal identifying number for this award.
ii. Requires the subrecipient to maintain a current registration in
the CCR during the period of performance under the subaward; and
iii. Requires the subrecipient, if it makes any obligating action
to which paragraph b.1 of this award term applies, to:
A. Report the action to either:
(1) The http://WWW.USASpending.gov within 30 days of the date of
obligation, providing the information about the action that the system
specifies; or
(2) You, if you prefer to have your subrecipient report each
obligating action to you, in which case you must report the action to
the http://WWW.USASpending.gov within 30 days of the subrecipient's
obligation; and
B. Ensure that the lower-tier subaward includes a term requiring
the lower-tier subrecipient to comply with the requirements in
paragraph c of this award term.
2. Obligating actions. For each action that you take to obligate
funding under a subaward described in paragraph c.1 of this award term,
you must provide the subrecipient with the amount of federal funding
that is included in the amount of funding obligated by the action.
d. 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 an award recipient or subrecipient.
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 or the Internet (currently at http://
www.dunandbradstreet.com).
3. Entity means all of the following, as defined at 2 CFR part 33,
subpart C:
i. A Governmental organization, which is a State, local government,
or Indian tribe;
ii. A foreign public entity;
iii. A domestic or foreign nonprofit organization; and
iv. A domestic or foreign for-profit organization.
4. Subaward:
i. 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:
A. You as the recipient awards to an eligible subrecipient; or
B. A subrecipient at one tier awards to a subrecipient at the next
lower tier.
ii. 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'').
iii. A subaward may be provided through any legal agreement,
including an agreement that you or a subrecipient considers a contract.
5. Subrecipient means an entity that:
i. Receives a subaward from you or from another subrecipient under
this award; and
ii. Is accountable to you or the other subrecipient for the use of
the federal funds provided by the subaward.
(b) An agency may--
(1) Reserve paragraphs b and c of the award term in paragraph (a)
of this section if there is no possibility of a subaward with a total
value of $25,000 or more in federal funds over the life of the
subaward; and
(2) Use different letters and numbers 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. 33.300 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. 33.305 Award.
Award means an award of Federal financial assistance subject to the
Transparency Act, as defined in Sec. 33.325.
Sec. 33.310 Central Contractor Registration (CCR).
Central Contractor Registration (CCR) has the meaning given in
paragraph d.1 of the award term in Sec. 33.220.
Sec. 33.315 Data Universal Numbering System (DUNS) Number.
Data Universal Numbering System (DUNS) Number has the meaning given
in paragraph d.2 of the award term in Sec. 33.220.
Sec. 33.320 Entity.
Entity has the meaning given in paragraph d.3 of the award term in
Sec. 33.220.
Sec. 33.325 Federal financial assistance subject to the Transparency
Act.
Federal financial assistance subject to the Transparency Act means
assistance that non-federal entities described in Sec. 33.105(b)
receive or administer in the form of--
(a) Grants;
(b) Cooperative agreements;
(c) Loans;
(d) Loan guarantees;
(e) Subsidies;
(f) Insurance;
(g) Food commodities;
(h) Direct appropriations; and
(i) Other financial assistance transactions that authorize the non-
federal entities' expenditure of federal funds.
Sec. 33.330 For-profit organization.
For-profit organization means a non-Federal party 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. 33.335 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.
[[Page 32421]]
Sec. 33.340 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. 33.345 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. 33.350 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. 33.355 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. 33.360 Subaward.
Subaward has the meaning given in paragraph d.4 of the award term
in Sec. 33.220.
Sec. 33.365 Subrecipient.
Subrecipient has the meaning given in paragraph d.5 of the award
term in Sec. 33.220.
[FR Doc. E8-12558 Filed 6-5-08; 8:45 am]
BILLING CODE 3110-01-P