[Code of Federal Regulations]

[Title 14, Volume 5]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 14CFR1274.102]



[Page 461-462]

 

                     TITLE 14--AERONAUTICS AND SPACE

 

                          SPACE ADMINISTRATION

 

PART 1274_COOPERATIVE AGREEMENTS WITH COMMERCIAL FIRMS--Table of Contents

 

                         Subpart 1274.1_General

 

Sec. 1274.102  Scope.



    (a) The business relationship between NASA and the recipient of a 

cooperative agreement differs from the relationship that exists between 

NASA and the recipient of a grant. Under the auspices of a grant, there 

is very little involvement and interaction between NASA and the grantee 

(other than a few administrative, funding, and reporting requirements, 

or in some cases matching of funds). Under a cooperative agreement, 

because of its substantial involvement, NASA assumes a higher degree of 

responsibility for the technical performance outcomes and associated 

financial costs of research activities. In some cooperative agreement 

projects, NASA may be required to indemnify the recipient (to the extent 

authorized by Congress). While the principal purpose of NASA's 

involvement and commitment of resources is to stimulate or support 

research activity, a major incentive for involvement by commercial firms 

(particularly where costs are shared) is the profit potential from 

marketable products expected to result from the cooperative agreement 

project.

    (b) Cooperative agreements (in areas or research relevant to NASA's 

mission) are ordinarily entered into with commercial firms to--

    (1) Support research and development;

    (2) Provide technology transfer from the Government to the 

recipient; or

    (3) Develop a capability among U.S. firms to potentially enhance 

U.S. competitiveness.

    (c) Projects that normally result in a cooperative agreement award 

to a commercial entity are projects that:

    (1) Are not intended for the direct benefit of NASA;

    (2) Are expected to benefit the general public;

    (3) Require substantial cost sharing; and

    (4) Have commercial applications and profit generating potential.

    (d) The principal purpose of cooperative agreements is to stimulate 

research to benefit the general public



[[Page 462]]



through the criteria stated in paragraphs (a) through (c) of this 

section. Since all research activities must be within NASA's authorized 

expenditure of appropriations, there may be instances where NASA can 

derive incidental use or benefits while preserving the principal purpose 

of the cooperative agreement. However, a careful balance must be 

established and maintained in the cooperative agreement's technical and 

business objectives, so that the principal purpose of the project serves 

to benefit the general public (i.e., technology will transfer from the 

Government to the public and the commercial partner expects a marketable 

product to result). If a cooperative agreement is awarded when the 

proper award instrument should have been a contract (because the primary 

purpose of the award is for the direct benefit of NASA), the cooperative 

agreement award can be protested. Thus, before pursuing any incidental 

benefits that materialize under a cooperative agreement, NASA Centers 

should ensure that the advice of legal counsel is obtained.