[Code of Federal Regulations]
[Title 14, Volume 5]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 14CFR1260.4]

[Page 274]
 
                     TITLE 14--AERONAUTICS AND SPACE
 
                   CHAPTER V--NATIONAL AERONAUTICS AND
                          SPACE ADMINISTRATION
 
PART 1260_GRANTS AND COOPERATIVE AGREEMENTS--Table of Contents
 
                            Subpart A_General
 
Sec.  1260.4  Applicability.

    (a) Subparts A and B of this part 1260 establish policies and 
procedures for grants and cooperative agreements awarded by NASA to 
institutions of higher education, hospitals, and other non-profit 
organizations.
    (b) Subject to the special considerations in this paragraph, 
subparts A and B of this part 1260 are also applicable to NASA grants 
and cooperative agreements awarded to commercial firms which do not 
involve cost sharing. (This does not prohibit voluntary cost sharing.) 
When the commercial firm is expected to receive substantial compensating 
benefits for performance of the work, resource contributions are 
required for the award of a grant or cooperative agreement. For policies 
on cooperative agreements with commercial organizations requiring 
resource contributions by the Recipient, see 14 CFR part 1274.
    (1) The allowability of costs incurred by commercial firms is 
determined in accordance with the provisions of the Federal Acquisition 
Regulation (FAR) at 48 CFR part 31.
    (2) NASA does not allow for payment of profit or fee to commercial 
firms under grant awards.
    (3) When applying the policies set forth under Sec.  1260.74, the 
grant officer shall vest title to any equipment purchased under the 
grant with the Government. The special condition at Sec.  1260.67, 
Equipment and Other Property Under Grants With Commercial Firms, shall 
be incorporated into all grants with commercial firms in place of the 
provision at Sec.  1260.27, Equipment and Other Property.
    (4) Due to differing NASA patent policies applicable to large 
businesses, special conditions at Sec.  1260.57, New Technology, and 
Sec.  1260.58, Designation of New Technology Representative and Patent 
Representative, shall be incorporated into all grants with commercial 
firms other than those with small businesses, in place of the provision 
at Sec.  1260.28, Patent Rights. Grants with small businesses should 
retain the Sec.  1260.28 provision.
    (5) Payments under grants with commercial firms will be made based 
on incurred costs. NASA Form 272 is not required. Commercial firms will 
be required to submit invoices on a no more than quarterly basis. 
Payments to be made on a more than quarterly basis require the written 
approval of the grant officer. The center finance office should also be 
informed when payments are to be made on other than a quarterly basis. 
The special condition at Sec.  1260.68, Invoices and Payments Under 
Grants With Commercial Firms, shall be incorporated into all grants with 
commercial firms in place of the provision at Sec.  1260.26, Financial 
Management.
    (6) Payments will be made to commercial firms via electronic funds 
transfer. The special condition at Sec.  1260.69, Electronic Funds 
Transfer Payment Method, shall be incorporated into all grants with 
commercial firms.
    (7) Delegation of grant administration functions consistent with the 
policies set forth at Sec.  1260.70 (i.e., property administration and 
closeout are to be delegated) will be made to the cognizant field office 
of the Defense Contract Management Agency instead of to the Office of 
Naval Research. Delegations will be made using NASA Form 1674, Letter of 
Delegation, for the Administration of Grants and Cooperative Agreements 
(Exhibit F to subpart A of this part 1260, available at the address 
given in Exhibit F). Cognizant offices for performing administration 
under individual grants are set forth in the ``DoD Directory of Contract 
Administration Services Components,'' which is available on the internet 
at: http://www.dcmc.hq.dla.mil/casbook/casbook.htm.