[Code of Federal Regulations]
[Title 34, Volume 1]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR74.11]

[Page 106]
 
                           TITLE 34--EDUCATION
 
PART 74--ADMINISTRATION OF GRANTS AND AGREEMENTS WITH INSTITUTIONS OF 
HIGHER EDUCATION, HOSPITALS, AND OTHER NON-PROFIT ORGANIZATIONS--Table of 
Contents
 
                    Subpart B--Pre-Award Requirements
 
Sec. 74.11  Pre-award policies.

    (a) Use of grants and cooperative agreements, and contracts. In each 
instance, the Secretary decides on the appropriate award instrument 
(i.e., grant, cooperative agreement, or contract). The Federal Grant and 
Cooperative Agreement Act (31 U.S.C. 6301-08) governs the use of grants, 
cooperative agreements, and contracts. A grant or cooperative agreement 
shall be used only when the principal purpose of a transaction is to 
accomplish a public purpose of support or stimulation authorized by 
Federal statute. The statutory criterion for choosing between grants and 
cooperative agreements is that for the latter, substantial involvement 
is expected between ED and the recipient when carrying out the activity 
contemplated in the agreement. Contracts shall be used when the 
principal purpose is acquisition of property or services for the direct 
benefit or use of the Federal Government.
    (b) Public notice and priority setting. The Secretary notifies the 
public of intended funding priorities for discretionary grant programs, 
unless funding priorities are established by Federal statute.

(Authority: 20 U.S.C. 1221e-3, 3474; OMB Circular A-110)