[Code of Federal Regulations]
[Title 32, Volume 1]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 32CFR21.205]

[Page 60-61]
 
                       TITLE 32--NATIONAL DEFENSE
 
              CHAPTER I--OFFICE OF THE SECRETARY OF DEFENSE
 
PART 21--DoD GRANTS AND AGREEMENTS--GENERAL MATTERS--Table of Contents
 
               Subpart B--Authorities and Responsibilities
 
Sec. 21.205  DoD Components' authorities.

    (a) In accordance with 31 U.S.C. 6301 et seq., DoD Components shall 
use grants and cooperative agreements as legal instruments reflecting 
assistance relationships between the United States Government and 
recipients.
    (b) Unlike the use of a procurement contract (for which Federal 
agencies have inherent, Constitutional authority), use of a grant or 
cooperative agreement to carry out a program requires authorizing 
legislation, the intent of which supports the use of an assistance 
instrument (e.g., the intent of the legislation authorizing a program 
supports a judgment that the principal purpose of the program is 
assistance, rather than acquisition). DoD Components may award grants 
and cooperative agreements under a number of statutory authorities that 
fall into three categories:
    (1) Authorities that statutes provide to the Secretary of Defense. 
These authorities generally are delegated by the Secretary of Defense to 
Heads of DoD Components, usually through DoD directives, instructions, 
or policy memoranda that are not part of the Defense Grant and Agreement 
Regulatory System. Examples of statutory authorities in this category 
are:
    (i) Authority under 10 U.S.C. 2391 to make grants or conclude 
cooperative agreements to assist State and local governments in planning 
and carrying out community adjustments and economic diversification 
required by changes in military installations or in DoD contracts or 
spending that may have a direct and significant adverse consequence on 
the affected community.
    (ii) Authority under 10 U.S.C. 2413 to enter into cooperative 
agreements with entities that furnish procurement technical assistance 
to businesses.
    (2) Authorities that statutes may provide directly to Heads of DoD 
Components. When a statute authorizes the head of a DoD Component to use 
a grant or cooperative agreement or to carry out a program with a 
principal purpose of assistance, use of that authority requires no 
delegation by the Secretary of Defense. For example, 10 U.S.C. 2358 
authorizes the Secretaries

[[Page 61]]

of the Military Departments, in addition to the Secretary of Defense, to 
perform research and development projects through grants and cooperative 
agreements. A Military Department's use of the authority of 10 U.S.C. 
2358 therefore requires no delegation by the Secretary of Defense.
    (3) Authorities that arise indirectly as the result of statute. For 
example, authority to use a grant or cooperative agreement may result 
from:
    (i) A federal statute authorizing a program that is consistent with 
an assistance relationship (i.e., the support or stimulation of a public 
purpose, rather than the acquisition of a good or service for the direct 
benefit of the Department of Defense). In accordance with 31 U.S.C. 
chapter 63, such a program would appropriately be carried out through 
the use of grants or cooperative agreements.
    (ii) Exemptions requested by the Department of Defense and granted 
by the Office of Management and Budget under 31 U.S.C. 6307, as 
described in 32 CFR 22.220.