[Code of Federal Regulations] [Title 48, Volume 4] [Revised as of October 1, 2006] From the U.S. Government Printing Office via GPO Access [CITE: 48CFR307.7001] [Page 20-21] TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM CHAPTER 3--HEALTH AND HUMAN SERVICES PART 307_ACQUISITION PLANNING--Table of Contents Subpart 307.70_Considerations in Selecting an Award Instrument Sec. 307.7001 Distinction between acquisition and assistance. (a) 31 U.S.C. 6301-6308 requires the use of contracts to acquire property or services for the direct benefit or use of the Government and grants or cooperative agreements to transfer money, property, services, or anything of value to recipients to accomplish a public purpose of support or stimulation authorized by Federal statute. (b) A contract is to be used as the legal instrument to reflect a relationship between the Federal Government and a recipient whenever: (1) The principal purpose of the instrument is the acquisition, by purchase, lease, or barter, of property or services for the direct benefit or use of the Federal Government; or (2) The Department determines in a specific instance that the use of a type of contract is appropriate. That is, it is determined in a certain situation that specific needs can be satisfied best by using the acquisition process. However, this authority does not permit circumventing the criteria for use of acquisition or assistance instruments. Use of this authority is restricted to extraordinary circumstances and only with the prior approval of the Director, Office of Acquisition Management and Policy (Director, OAMP). (c) A grant or cooperative agreement is to be used as the legal instrument to reflect a relationship between the Federal Government and a recipient whenever the principal purpose of the relationship is the transfer of money, property, services, or anything of value to the recipient to accomplish a public purpose of support or stimulation authorized by Federal statute. (1) A grant is the legal instrument to be used when no substantial involvement is anticipated between the Department and the recipient during performance of the contemplated activity. (2) A cooperative agreement is the legal instrument to be used when substantial involvement is anticipated between the Department and the recipient during performance of the contemplated activity. (d) As a general rule, contracts are to be used for the following purposes: [[Page 21]] (1) Evaluation (including research of an evaluative nature) of the performance of Government programs or projects or grantee activity initiated by the funding agency for its direct benefit or use. (2) Technical assistance rendered to the Government, or on behalf of the Government, to any third party, including those receiving grants or cooperative agreements. (3) Surveys, studies, and research which provide specific information desired by the Government for its direct activities, or for dissemination to the public. (4) Consulting services or professional services of all kinds if provided to the Government or, on behalf of the Government, to any third party. (5) Training projects where the Government selects the individuals or specific groups whose members are to be trained or specifies the content of the curriculum (not applicable to fellowship awards.) (6) Planning for Government use. (7) Production of publications or audiovisual materials required primarily for the conduct of the direct operations of the Government. (8) Design or development of items for Government use or pursuant to agency definition or specifications. (9) Conferences conducted on behalf of the Government. (10) Generation of management information or other data for Government use.