[Code of Federal Regulations]
[Title 20, Volume 2]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 20CFR435.11]

[Page 1109]
 
                      TITLE 20--EMPLOYEES' BENEFITS
 
               CHAPTER III--SOCIAL SECURITY ADMINISTRATION
 
  PART 435_UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND AGREEMENTS 
 
                    Subpart B_Pre-Award Requirements
 
Sec. 435.11  Pre-award policies.

    (a) Use of grants and cooperative agreements, and contracts. In each 
instance, SSA will decide 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.
    (1) Grants and cooperative agreements. A grant or cooperative 
agreement will 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 the executive agency and the State, 
local government, or other recipient when carrying out the activity 
contemplated in the agreement.''
    (2) Contracts. Contracts will 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. SSA will notify the public 
of its intended funding priorities for discretionary grant programs, 
unless funding priorities are established by Federal statute.