[Code of Federal Regulations]

[Title 48, Volume 5]

[Revised as of October 1, 2006]

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

[CITE: 48CFR731.770]



[Page 41-42]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

             CHAPTER 7--AGENCY FOR INTERNATIONAL DEVELOPMENT

 

PART 731_CONTRACT COST PRINCIPLES AND PROCEDURES--Table of Contents

 

          Subpart 731.7_Contracts With Nonprofit Organizations

 

Sec. 731.770  OMB Circular A-122, cost principles for nonprofit organizations; 

USAID implementation.





    (a) Paragraph 6 of the transmittal letter for OMB Circular A-122 

specifies that ``Agencies shall designate a liaison official to serve as 

the agency representative on matters relating to the implementation of 

this Circular.'' The Director, Office of Procurement, has been so 

designated. The Overhead and Special Cost and Contract Close-Out Branch, 

Office of Procurement (OCC) provides staff assistance to the Director 

concerning OMB Circular A-122. OCC is also responsible for obtaining 

cognizance under the criteria in the transmittal letter for OMB Circular 

A-122; for liaison with other cognizant agencies; for authorizing 

exclusion of OMB Circular A-122 coverage for a particular nonprofit 

organization pursuant to paragraph 5 of the OMB Circular A-122 

transmittal letter; and for advice and assistance in applying OMB 

Circular A-122 cost principles.

    (b) Paragraph 4b of the OMB Circular A-122 transmittal letter 

contains a definition of prior approval as follows:



    Prior approval means securing the awarding agency's permission in 

advance to incur costs for those items that are designated as requiring 

prior approval by OMB Circular A-122. Generally, this permission will be 

in writing. Where an item of cost requiring prior approval is specified 

in the budget of an award, approval of the budget constitute approval of 

that cost.





Consequently, an award containing a budget constitutes prior approval of 

the direct cost item in the budget, unless otherwise annotated. 

Accordingly, award budgets should be appropriately annotated 

substantially as follows:



    Inclusion of any cost in the line item budget of this award does not 

obviate the requirement for prior approval of cost items designated as 

requiring prior approval by OMB Circular A-122 ; or

    In accordance with the requirements to OMB Circular No. A-122, 

approval is granted to incur costs for (name specific item or



[[Page 42]]



items) which are included in the budget of this award.



[49 FR 13250, Apr. 3, 1984, as amended at 50 FR 50302, Dec. 10, 1985; 51 

FR 20651, June 6, 1986; 56 FR 67225, Dec. 30, 1991]