[Code of Federal Regulations]

[Title 32, Volume 1]

[Revised as of July 1, 2006]

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

[CITE: 32CFR37.580]



[Page 237]

 

                       TITLE 32--NATIONAL DEFENSE

 

              CHAPTER I--OFFICE OF THE SECRETARY OF DEFENSE

 

PART 37_TECHNOLOGY INVESTMENT AGREEMENTS--Table of Contents

 

                 Subpart E_Pre-Award Business Evaluation

 

Sec.  37.580  What is recovery of funds and when should I consider 

including it in my TIA?



    (a) Recovery of funds refers to the use of the authority in 10 

U.S.C. 2371 to include a provision in certain types of agreements, 

including TIAs, that require a recipient to make payments to the 

Department of Defense or another Federal agency as a condition of the 

agreement. Recovery of funds is a good tool in the right circumstances, 

at the discretion of the agreements officer and the awarding 

organization, but its purpose is not to augment program budgets. It may 

be used to recover funds provided to a recipient through a TIA or 

another Federal procurement or assistance instrument, and the recovery 

should not exceed the amounts provided. Recovery of funds is distinct 

from program income, as described in Sec.  37.835.

    (b) In accordance with 10 U.S.C. 2371, as implemented by policy 

guidance from the Office of the Under Secretary of Defense 

(Comptroller), the payment amounts may be credited to an existing 

account of the Department of Defense and used for the same program 

purposes as other funds in that account.

    (c) Before you use the authority to include a provision for recovery 

of funds, note that 10 U.S.C. 2371 requires you to judge that it would 

not be feasible or appropriate to use for the research project a 

standard grant or cooperative agreement (in this instance, a ``standard 

cooperative agreement'' means a cooperative agreement without a 

provision for recovery of funds). You satisfy that 10 U.S.C. 2371 

requirement when you judge that execution of the research project 

warrants inclusion of a provision for recovery of funds.