EPA Grants Community Library of Frequently Asked Questions (FAQ)

Will the Terms and Conditions (T&Cs) always list the Davis Bacon Act if it is applicable to the grant?

Yes, the Davis Bacon Act will always be included in the programmatic T&Cs. Each program has its own requirements, please check the T&Cs of your grant agreement. If questions arise, speak with your Project Officer. For more information on EPA grants and Davis Bacon and Related Acts, visit the Davis Bacon and Related Acts webpage.

Do the new Terms and Conditions (T&Cs) apply to new funding under the same award? What if a recipient receives another award from EPA?

These T&Cs apply to funds on awards and amendments made on/after October 1, 2024. If a recipient receives an award on/after October 1, 2024, then the new T&Cs apply. 

Our four-year award started on 04/01/2024. Do I have to wait until March 31, 2028 to use the increased de minimis rate?

No. Please see the RAIN-2025-G01 for how to request approval from EPA to apply the increased de minimis rate to your grant agreement. EPA must approve this change before implementing the increased de minimis rate. 

How does the updates to the General Terms and Conditions (T&Cs) impact tribes?

The updates to the General T&Cs incorporate the changes to the most recent 2024 Revisions to 2 CFR 200. Specifically, EPA updated General T&C 36 to include the following language: Tangible Personal Property. 36.2.3. Indian Tribes Per 2 CFR 200.313(b), recipients that are Indian Tribes must manage and dispose of equipment acquired under this assistance agreement in accordance with Tribal laws and procedures. If such laws and procedures do not exist, Indian Tribes, unless instructed otherwise on the official award document or at closeout, may keep the equipment and continue to use it on the project originally funded through this assistance agreement or on other federally funded projects whether or not the project or program continues to be supported by Federal funds.

Could you please clarify what you mean by recipients must identify the immediate and highest-level owner and subsidiaries and provide info about predecessors?

According to SAM.gov help section: an immediate owner is another entity that has direct control of your entity (the one you are registering in SAM.gov).  

• Control could include:
  • Ownership or interlocking management
  • Identity of interests among family members
  • Shared facilities and equipment
  • The common use of employees

When is the exact date that the $1,000,000 audit requirement takes effect?

The single audit threshold is not based on the total expenditures across all Federal awards for one entity. This threshold increase is effective for entities with fiscal years that started on or after October 1, 2024. If the recipient's fiscal year started on or after October 1, 2024, then they would follow the new threshold, but if their fiscal year ran from January 1 through December 30, that would mean they are subject to the $750k threshold until their new fiscal year starts on January 1, 2025.  

How do the indirect cost changes impact federally recognized Tribes?

If a federally recognized Tribes does not have a current federal negotiated indirect cost rate, then the de minimis rate is available.

Are the changes automatically in place or do we wait until a new Negotiated Indirect Cost Rate Agreement (NICRA) is in effect since the current NICRA has an expiration date which states the indirect cost rate is applied to the pre-October 1 changes?

Negotiated Indirect Cost Rate Agreements (NICRA) negotiated prior to October 1, 2024, must continue to be honored by both Federal agencies and recipients. However, cognizant agencies for indirect costs may—but are not required to—renegotiate existing NICRAs (i.e., issue revised or amended agreements) to reflect the new Modified Total Direct Cost (MTDC) base. The Office of Management and Budget (OMB) encourages cognizant agencies for indirect costs to accommodate requests to renegotiate existing NICRAs that are in effect beyond October 1, 2025.  

Provisional Rates: Recipients with provisional rates in effect prior to October 1, 2024, must finalize those rates using the provisional rate's approved MTDC base. Future provisional rates must be negotiated with the new MTDC base on or after October 1, 2024.  

Is the audit a requirement that the recipient is responsible for sending to EPA each year or only if asked for it? Who does it get sent to?

The auditee must submit the full audit package (audit report and Data Collection Form) to the Federal Audit Clearinghouse within 30 days of receipt of the audit, or within 9 months of the end of their fiscal year. Whichever is the earlier of the two. Grantees are not required to send their audits to the EPA unless special conditions have been imposed.

Does the new audit requirement mean that if a grant recipient receives less than $1,000,000 from EPA but more than $1,000,000 from another agency, they will need to go through the audit process separately for both agencies?

No! Quite the opposite. The Single Audit Act was introduced to reduce the administrative burden on non-federal entities. Single Audits provide a cost-effective way for non-federal entities to have one audit conducted that summarizes their financial statements and compliance requirements for multiple federal awards.

What are Fair Share Objectives?

The Fair Share Objectives are defined in 40 CFR Part 33.403, as this: A Fair Share Objective is an objective based on the capacity and availability of qualified, certified MBEs and WBEs in the relevant geographic market for the procurement categories of construction, equipment, services and supplies compared to the number of all qualified entities in the same market for the same procurement categories, adjusted, as appropriate, to reflect the level of MBE and WBE participation expected absent the effects of discrimination. A fair share objective is not a quota. For more information on Fair Share Objectives, reference the EPA Fair Share Objectives webpage.  

If our EPA project officer cannot answer our questions about Terms and Conditions, should we contact your office?

No, you should continue to work with your Project Officer to find an answer. We recommend copying your EPA Grant Specialist in the email and they will work with internal EPA sources to provide you with an answer. 

Online there is conflicting information for Forms 6100-2,6100-3,6100-4. The EPA's website says these forms have “been suspended. Is there a 1-page PDF Disadvantaged Business Enterprise (DBE) clause form we can insert into our solicitations?

Online there is conflicting information for Forms 6100-2,6100-3,6100-4. The requirements to use these still appears in 33.302 administrative requirements, but the EPA's website says these forms have "been suspended." We want to make sure we pass the audit. Is there a 1-page PDF DBE clause form we can insert into our solicitations to comply with the requirements?

Can you provide guidance or examples of acceptable Disadvantaged Business Enterprise (DBE) reporting that is required of grant recipients?

When required, the recipient agrees to complete and submit a "MBE/WBE Utilization Under Federal Grants and Cooperative Agreements" report (EPA Form 5700-52A) on an annual basis. The current EPA Form 5700-52A can be found at the EPA Grantee Forms page. Annual reports are due by October 30th of each year. Final reports are due 120 days after the conclusion of the period of performance. If you need assistance completing your report, please contact the DBE-Coordinator identified in your grant agreement. 

What is the frequency of conducting audits? Once per fiscal year over the life of the award, or once during each award?

The frequency will depend on the entity's annual expenditures. If an entity's annual expenditures trigger the $1,000,000 threshold, they will need to have a single audit conducted. Some entities spend over a million every year and some never hit the threshold.

Your slide read modified indirect costs, but I do not see that phrase in the Notice of Funding Opportunity. What does “modified” mean in this case?

Modified Total Direct Costs (MTDCs) are defined at 2 CFR Part 200.1 as, all direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $50,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs, and the portion of each subaward in excess of $50,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs and with the approval of the cognizant agency for indirect costs.

What is the requirement for recipients as it relates to Section 508? The latest guidance, dated October 2023, states that recipients are not required to adhere to this. Can you elaborate and clarify this?

While Section 508 does not apply directly to grant recipients, we encourage recipients to follow either the 508 guidelines or other comparable guidelines that concern accessibility to electronic and information technology (EIT) for individuals with disabilities. More information can be found in the National Term and Conditions titled "Electronic and Information Technology Accessibility."

Has the Simple Acquisition Threshold of $250,000 increased with regard to Minority Business Enterprise (MBE) or Women Business Enterprise (WBE) reporting for fiscal year 2025?

No, the Simple Acquisition Threshold has not changed. 

Is there a point where EPA provides insurance for equipment that an agency purchases through the award? Is the agency required to maintain insurance during and after the award? Where is this stated in the Terms and Conditions (T&Cs)?

EPA does not provide insurance for equipment purchased under the EPA award. Insurance information is not directly stated in the T&C; however, requirements on insurance coverage for equipment can be found at 2 CFR Part 200.310.

Can the same completed 4700-4 be used throughout a fiscal year for all grant applications or does the form require updates throughout the fiscal year to capture any new complaints?

EPA form 4700-4, Preaward Compliance Review Report for All Applicants and Recipients Requesting Federal Financial Assistance, can be reused as Grants.gov allows you to re-use forms, a feature which will allow you to import EPA Form 4700-4 information from another application workspace. If you reuse the information, be sure that all the information is up-to-date and accurate, including the Point of Contact in question I.C. When you submit the application, the form will be signed and dated accordingly. 

For the provision added to #15 on Reporting Subawards and Executive Compensation, who is responsible for reporting to the Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting System (FSRS): the recipient or the EPA?

The recipient is responsible for reporting under Term and Condition "Reporting Subawards and Executive Compensation."

Does the requirement for active registration on SAM.gov apply to subrecipients?

Subrecipients are required to have a Unique Entity Identifier (UEI) but are not required to complete the full SAM.gov registration. The UEI is required by 2 CFR Part 25 and 2 CFR 200.332(b). Subrecipients are not required to complete full System for Award Management (SAM.gov) registration to obtain a UEI. Information regarding obtaining a UEI is available at the System for Award Management (SAM.gov) Internet site.

What if you have an old grant and a new grant, which audit threshold do you use?

The threshold is dependent on the audit year in which the expenditures take place. The expenditures that take place in an entity's audit year beginning on or after October 1, 2024 would follow the $1,000,000 threshold. As stated above, if their audit is being conducted for expenditures between January 1, 2024 through December 30, 2024, those funds would be subject to the $750k threshold. The entity would not increase their threshold until their new fiscal year starts on January 1, 2025. 

Am I correct in understanding that under Section 35 – Light Refreshments and/or Meals, these may be allowable if included in the workplan?

Yes, light refreshments and meals should be described in the workplan to be allowable. For more information, please see General Term and Condition 35.

If we are under a previous Term and Condition that has the old $5K disposition level, does that mean we will still be held to that level instead of the new $10K level?

Yes, that's correct. The set of regulations that will apply to your project is based on the award date of your grant. If the grant is awarded before October 1, 2024, then you would comply with the regulations in effect at the time of award.

Is there a provision that allows Tribes to use their own procurement standards for contractors, and not just for equipment?

Yes, as per 2 CFR 200.317 -- Procurements by States and Indian Tribes, Tribes are allowed to use their own procurement standards for contractors and not just for equipment.

How do state entity procurement rules differ from the 2 CFR 200 timelines? To clarify, as a state entity, I want to confirm that we are allowed to follow our procurement rules, which do not necessarily follow the EPA procurement thresholds.

EPA follows procurement thresholds as described in 2 CFR 200. Each procurement threshold is described in Subpart D. Per 2 CFR 200.317 -- Procurements by States and Indian Tribes, states are allowed to use their own procurement standards. 

Our original Notice of Award included the 2022 Terms and Conditions (T&Cs), but after a budget/timeline revision that included no additional funds, we received a new Notice of Award that obliges us to the 2023 T&Cs - is this correct?

Yes, you should follow the 2023 Terms and Conditions that are listed in your Notice of Award.

Who generally negotiates the Minority Business Enterprise (MBE)/Women Business Enterprise (WBE) negotiated percentages and at what frequency?

Please see Term and Condition 27.5, 27.6, and 27.7. You can also see the Fair Share Objectives website for more information.

How often do we have to report for the Federal Funding Accountability and Transparency Act (FFATA) and how should we report?

Please see 200.322 for reporting requirements. You may also refer to General Term and Condition 15.

Any advice on developing a Fair Share Objective for a very small and rural Tribe?

Please work with your Regional Tribal Program Manager.

Should subrecipients be registered on asap.gov, or does the prime recipient register and handle reimbursements to subrecipients?

ASAP applies to prime recipients. Subrecipients does not receive payments from ASAP.

Is the Facilities and Administration (F&A) cost rate at the time of proposal counted as the rate or the rate at the time of award, as the rate may change between the proposal and the award?

In accordance with Appendix 3, Colleges and Universities must use the negotiated rate(s) on the rate agreement in place at the time of the initial award throughout the life of the Federal award. "Negotiated rates" include final, fixed, and predetermined rates. If the rate(s) approved on the rate agreement do not extend until the end of the award, then the last approved rate should be extended until the end of the award. Each negotiated rate is applied during its effective period defined in the rate agreement.  

Can you confirm that a recipient naming a contractor as a "partner" or otherwise in its proposal does not, by itself, justify a sole-source award?

Yes, the fact that a recipient has named a contractor in its application, including as a "partner" or otherwise, does not justify a sole-source procurement. Note, some EPA grant programs are now imposing a threshold requirement that if applicants name a contractor, the applicant needs to be able to demonstrate that it complied with competitive procurement procedures.

Will subrecipients who sign their subrecipient award after October 1, 2024, be required to follow the updates to 2 CFR Part 200 that took effect post-October 1, 2024, or will they follow the pre-October 1, 2024, guidance?

The regulations trickle down from the prime recipient, so if the EPA grant was awarded before October 1, 2024, the previous regulations would apply to the subaward agreement even if the subaward was awarded after 10/1/2024.

Who is responsible for reporting to Federal Funding Accountability and Transparency Act Reporting System (FSRS) for the subaward?

FSRS.gov reporting is completed by the prime recipient as described in EPA General Terms and Conditions. 

If a grant is an incremental grant, will the grant be subject to prior 2 CFR 200 requirements for the 2023 leg and any new applicable 2 CFR 200 requirements for the 2024 incremental?

For existing awards entered into before October 1, 2024, the EPA will apply the 2024 Revisions to any amendments entered into on or after October 1, 2024, that provide additional funds.

We received a new EPA grant with a start date of October 1, 2024, but the Terms and Conditions are those effective from October 1, 2023. Are we permitted to provide subgrantees with the 15% de minimis rate, or are we still required to limit them to 10%?

If the EPA has not applied the 2024 revisions to an existing award, the pass-through entity must not apply the 2024 revisions to a subaward issued under that Federal award—even if the subaward itself is executed on or after October 1, 2024. The regulations trickle down from the Prime/Recipient/Pass-Through Entity, so if the EPA grant was awarded before October 1, 2024, the previous regulations and agreed upon 10% de minimis rate still apply. If the EPA grant is amended to incorporate the 2024 revisions, you can amend your grant and your subaward to include the new de minimis rate of 15%. 

Do we need to have any conversations about these Terms and Conditions (T&Cs) changes with our project officer? And are there new forms/documents for us to complete regarding these T&C changes?

If you have a current project and are interested in utilizing the new T&Cs from the 2 CFR Part 200 revisions, please refer to this Recipient/Applicant Information Notice (RAIN):  RAIN-2025-G01 Allowing Assistance Agreement Recipients to Request No-Cost Amendments to Fully Funded Assistance Agreements to Reference the October 1, 2024, Revisions to 2 CFR 200 Uniform Grant Guidance.  

Does prohibited “discrimination” include treating people, or groups of people, either more favorably or less favorably because of their protected characteristics?

Yes, "discrimination" is prohibited by the civil rights laws that EPA enforces, which includes treating people more or less favorably on the basis of race, color, national origin, disability, sex, or age, or on the basis of their participation in the discrimination complaint process identified in 40 CFR Part 7. 
 

One of Massachusetts’ environmental justice criteria is a lack of English proficiency. Is that not one of the criteria for EPA?

The environmental justice Executive Orders 12898 and 14096 and Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency, apply to the EPA and other Federal agencies. For more information about Executive Order 13166. 
 

How long would an organization be on suspension if they did not comply with the regulations and terms and conditions?

Under EPA's regulations (40 CFR 7.135), there are procedures for regaining eligibility for funds when assistance has been suspended under 40 CFR Part 7. Any applicant or recipient whose assistance has been denied, terminated, or suspended regains eligibility as soon as it provides reasonable assurance that it is complying and will comply with regulations and satisfies the terms and conditions for regaining eligibility. You can find more detail in the regulations.
 

Does EPA anticipate updating the General Terms and Conditions soon (anticipating a 10/1/24 effective date)?

The updated General Terms and Conditions, effective October 1, 2024 or later, are posted on the Grant Terms and Conditions webpage. 
 

If a small island municipality answered “No” to question 8 and 9 on the 4700-4 Preaward Compliance Review form. Since they are a very small municipal government (the island government is small (<15 employees)), is there any further obligation needed here?

On the Form 4700-4, Question VIII ("Does the applicant/recipient maintain demographic data on the race, color, national origin, sex, age, or disability status of the population it serves?") refers to obligations that apply to all recipients of Federal financial assistance, including entities with fewer than 15 employees. The recipient should follow up with its grant applicant to help them come into compliance with these requirements as soon as possible.  

Question IX's reference to having a policy/procedure ("Does the applicant/recipient have a policy/procedure for providing meaningful access to services for persons with limited English proficiency (LEP)?") does not reflect a regulatory requirement for recipients.  But, as a best practice, a recipient should be able to demonstrate that it is taking reasonable steps to ensure meaningful access to a recipient's program or activities for persons with LEP. The Civil Rights Guidance on Procedural Safeguards is a resource to help the applicant understand requirements and best practices.

Can you tell me what is prohibited by the permanent injunction issued by a district court in Louisiana?

Pursuant to a permanent injunction issued by the US District Court for the Western District of Louisiana on August 22, 2024, EPA will not impose or enforce any disparate- impact or cumulative-impact-analysis requirements under Title VI against any entity in the State of Louisiana.
 

Do subrecipients have to complete the EPA Form 4700-4?

EPA does not require subrecipients to complete the Form 4700-4; this requirement only applies to the applicant (and ultimate recipient) of the Federal financial assistance. However, recipients have an obligation to ensure that subrecipients are in compliance with Federal civil rights laws and may, therefore, require subrecipients to provide some form of certification to the recipient. The EPA's Civil Rights Guidance on Procedural Safeguards includes a sample assurance form that a recipient may refer to in developing its own assurance form for subrecipients. 
 

Can you please explain what needs to be included in a proper log of complaints? Is this only formal complaints or is it for any complaint?

Under 40 CFR 7.85, recipients are required to collect, maintain, and on the request of EPA, provide a log of discrimination complaints which identifies the complaint, the date it was filed, the date the recipient's investigation was completed, the disposition, and the date of disposition. When completing the Form 4700-4, recipients must submit information about:

• All pending civil rights lawsuits and administrative complaints filed under Federal law against the applicant/recipient that allege discrimination based on race, color, national origin, sex, age, or disability. (Do not include employment complaints, unless covered by 40 CFR Parts 5 and 7.)  
• All civil rights lawsuits and administrative complaints decided against the applicant/recipient within the last year that alleged discrimination under Federal law based on race, color, national origin, sex, age, or disability and enclose a copy of all decisions. Please describe all corrective actions taken. (Do not include employment complaints, unless covered by 40 CFR Parts 5 and 7.)  
• All civil rights compliance reviews of the applicant/recipient conducted under Federal nondiscrimination laws by any Federal agency within the last two years and enclose a copy of the review and any decisions, orders, or agreements based on the review. Please describe any corrective action taken. (40 CFR § 7.80(c)(3)). 

What is the EPA's advice for those states that include race as part of their Environmental Justice criteria with respect to legal risks raised by the Louisiana issue?

Recipients should consult their legal counsel for advice about any potential legal risk associated with the use of a state's environmental justice data.

From the Office of Environmental Justice and External Civil Rights (OEJECR) policy perspective, nothing in the State of Louisiana v. U.S. EPA, et al decision affected how a recipient may voluntarily elect to use such data to advance compliance with its Federal nondiscrimination obligations. It is noted that EPA's nondiscrimination regulation at 40 CFR 7.85 requires that every recipient collect and maintain, and if requested by OEJECRC, provide certain data, including racial/ethnic, national origin, age, sex, and disability data.

The EPA's Civil Rights Guidance on Procedural Safeguards provides more guidance regarding the regulatory requirements that all recipients must follow regarding data collection, maintenance and production. It also identifies best practices that recipients may elect to implement to further demonstrate compliance with Federal nondiscrimination laws.
 

Can you please elaborate on "non-compliance?”

Recipients of Federal financial assistance must comply with all applicable Federal civil rights statutes and the EPA's nondiscrimination regulations at 40 CFR Parts 5 and 7. "Non-compliance" is the failure to adhere to these statutory and regulatory obligations. Please refer to the training presentation for more information about what is required for recipients and any subrecipients. 
 

On the last slide, #4 states that subrecipients must comply if contracting with recipients. Would that be a contractor, engineer, etc. working on a project? If not, please explain a scenario where this would apply.

The primary recipient is the entity that receives Federal financial assistance directly from the EPA. The primary recipient may then distribute the Federal assistance to a subrecipient to carry out a program. (Subrecipients are entities that receive Federal financial assistance through a relationship with the primary recipient, including contractors, transferees, and assignees.) Like recipients, subrecipients must comply with Federal civil rights laws. See Civil Rights Guidance on Procedural Safeguards, at Sec. 9 (Definitions); see also DOJ Title VI Legal Manual, at Sec. V(D).
 

The EJ Screening Tool relies on U.S. Census data, and the data is statistically less stable. How can we comply or show compliance when the tool cannot offer strong accuracy on protected groups in the vicinity of a funded project?

EJScreen is EPA's environmental justice mapping and screening tool that provides EPA with a nationally consistent dataset and approach for combining environmental and socioeconomic indicators. Since its public release in 2015, EJScreen has been and will continue to be updated annually with the newest and best data available.

EJScreen users should note there is substantial uncertainty in socioeconomic and environmental data, particularly when looking at small geographic areas. Screening results should be supplemented with additional information and local knowledge to get a better understanding of the issues in a selected location. In addition to EJScreen, recipients may consider data sources such as the US Census, including the American Community Survey (ACS), as well as other Federal and state databases and mapping tools. For more information about data collection best practices, please refer to the EPA's Civil Rights Guidance on Procedural Safeguards.

Can you please provide a citation or link for the Louisiana court case mentioned?

The permanent injunction was issued by the U.S. District Court for the Western District of Louisiana on August 22, 2024, in State of Louisiana v. U.S. EPA, et al. 
 

The recent injunction in Louisiana said it applies to “any entity.” Are Tribal Nations included in this? If so, why?

If a Federally recognized Tribe in Louisiana or doing work in Louisiana is a recipient of EPA financial assistance, EPA will generally consider the Tribe to be an "entity in Louisiana" for purposes of the injunction. 
 

When we share materials with the public, such as outreach materials, board meeting agendas, and website materials, are we also required to provide a translated version if a large majority of our customers speak Spanish?

Under Title VI, recipients have an affirmative obligation to take reasonable steps to provide persons with limited English proficiency (LEP) meaningful access to all of the recipients' programs and activities. This means that persons with LEP must have meaningful access to information about a recipient's programs, activities, services, or benefits that is on par with the information provided to English speakers or persons without LEP.
 
There is not a "one-size fits all" approach to compliance with this requirement – this is a fact-dependent analysis. As a best practice, recipients may use the following, non-exclusive factors to assist in determining the reasonable steps recipients must take in providing meaningful access for persons with LEP to their programs and activities:

• The number or proportion of individuals with LEP encountered in the impacted population.  
• The frequency with which individuals with LEP come in contact with the program or activity.  
• The nature and importance of the program, activity, or service provided.  
• Resources available and costs.

Beyond guidance at LEP.gov and the relevant executive order, are there CFR provisions that specify Limited English Proficiency (LEP) requirements?

40 CFR § 7.35(a) prohibits discrimination on the basis of national origin in the programs or activities of a recipient of EPA assistance and 40 CFR § 7.95(a) requires notices of nondiscrimination to be in languages other than English where appropriate. For more information about meaningful access requirements and best practices, please refer to the EPA's Civil Rights Guidance on Procedural Safeguards.
 

What if our EPA funded project is not providing services to the public. Can you answer N/A on all of the 4700-4 items?

No. The Form 4700-4 must be completed by all applicants for EPA financial assistance, regardless of whether the recipient will be providing direct services to the public. Furthermore, a recipient's obligations to comply with all applicable civil rights statutes and EPA regulations extend to all its programs and activities as defined in 42 U.S.C. 2000d-4a. 
 

The current 4700-4 has expired. When will a new form be available?

We are aware that the current Form 4700-4 indicates an approval expiration date of 06/30/2024. The form is in the process of being re-approved; meanwhile, however, applicants should continue to use the current form available here.
 

Can we use the Justice 40 initiative when deciding how to enforce compliance for disadvantaged communities that will benefit from EPA projects?

Under the Justice 40 Initiative, the Federal government has made it a goal that 40 percent of the overall benefits of certain Federal climate, clean energy, affordable and sustainable housing, and other investments flow to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution. Federal agencies use the Climate and Economic Justice Screening Tool (CEJST) mapping tool to help identify disadvantaged communities. Recipients may also refer to this tool in administering their programs or activities in compliance with the Federal civil rights statutes. However, EPA is not directing such action and, as such, a recipient will need to determine whether the Justice 40 tools provide enough relevant information for the recipient to assess whether its programs or activities comply with Federal nondiscrimination laws and regulations. 
 
Justice 40 does not allow recipients to prioritize enforcement of Federal civil rights laws for disadvantaged communities. The Federal prohibition against discrimination applies to all, regardless of whether a community is disadvantaged as defined in CEJST or not.
 

Why does Louisiana have a permanent injunction against EPA imposing or enforcing disparate impact analysis? Do any other states have similar status?

The permanent injunction was issued by the U.S. District Court for the Western District of Louisiana on August 22, 2024, in State of Louisiana v. U.S. EPA, et al. The permanent injunction only applies to entities in the State of Louisiana. 
 

When it comes to designating a person to coordinate efforts to comply with Federal civil rights laws, would the City's Community Relations Coordinator be enough, or should there be someone who specifically is working on the grant project?

The EPA's nondiscrimination regulations require recipients with 15 or more employees to designate a nondiscrimination coordinator to help ensure compliance with Federal civil rights laws. For more information about requirements and best practices related to the functions and authority of the nondiscrimination coordinator, please refer to the EPA's Civil Rights Guidance on Procedural Safeguards.

Nondiscrimination requirements apply to the recipient of Federal financial assistance with respect to the administration of all its programs or activities, not only those directly funded by such financial assistance. So, for example, if a nonprofit organization receives $50,000 from the EPA to run a specific program, the nondiscrimination coordinator must oversee compliance with Federal civil rights law and the EPA's nondiscrimination regulations for all programs or activities of the nonprofit.  

Can you share what a complaint might look/sound like? Are there base elements to a “complaint?”

EPA publishes the docket online. This docket has links to complaints that have been filed with the Agency. Also, there is information about filing a complaint on EPA's website. 
 

Are you referring to contractors as in construction or does it include consultants?

The primary recipient is the entity that receives Federal financial assistance directly from the EPA. The primary recipient may then distribute the Federal assistance to a subrecipient to carry out a program. (Subrecipients are entities that receive Federal financial assistance through a relationship with the primary recipient, including contractors, transferees, and assignees.) You may read more about contractors in Civil Rights Guidance on Procedural Safeguards; see also DOJ Title VI Legal Manual, at Sec. V.
 

As a recipient, if I believe a sub-recipient is not in compliance what should I do if the project has already begun and/or what authority do I have to ensure the subrecipient is in compliance?

A recipient is required to ensure that its subrecipients are in compliance with Federal civil rights laws and the EPA's nondiscrimination regulations. If a recipient believes that a subrecipient is not in compliance, the recipient should take steps as appropriate under any contractual agreement with the subrecipient; this may include requiring the subrecipient to take corrective actions or, if issues are not remedied, terminating the agreement. Noncompliance on the part of a subcontractor may present a compliance risk for the recipient directly if a civil rights complaint is filed against the subcontractor and/or recipient, or if a compliance review finds deficiencies in the recipient's oversight of its subrecipients. 
 

If I am buying a shelter from a vendor, and the vendor is building the shelter and installing it on our site, is the vendor considered a contractor?

The vendor is considered a subrecipient – and is therefore subject to Federal civil rights law and EPA's nondiscrimination regulations – if the vendor receives Federal financial assistance through a contractual relationship with the primary recipient. 
 

If my agency has grants with different Federal agencies, do Title VI complaints go to both agencies or one agency over the another? Also are there differences in how EPA asks recipients to manage Civil Rights vs other Federal agencies?

Anyone who believes they have been discriminated against by a recipient of Federal financial assistance may file a civil rights complaint. The complaint may be directed to one or more Federal agencies that provide Federal financial assistance to that recipient. In cases where the complaint is filed with more than one Federal agency, the agencies will coordinate to determine which agency (or agencies) will accept the complaint based on factors such as jurisdiction over the subject matter and expertise relevant to the complaint.  

Federal agencies each have their own nondiscrimination regulations that describe how that particular agency implements Federal civil rights statutes. There may be differences among the agencies in their policies and procedures with respect to civil rights compliance and enforcement. To address any specific questions, recipients should consult the regulations and/or the relevant agencies' civil rights offices.

For clarification, what would an activity be (which requires a civil rights coordinator) if broader than the activity the grant is funding?

Nondiscrimination requirements apply to the recipient of Federal financial assistance with respect to the administration of all its programs or activities, not only those directly funded by such financial assistance. So, for example, if a nonprofit organization receives $50,000 from the EPA to run a specific program, all programs or activities of the nonprofit are subject to the nondiscrimination requirements. 
 

You said that the civil rights applying broadly to the program (not just that funding stream) was a “legal question.” But, you've been repeating that. Can you explain? Our legal counsel said they couldn't find any legal support for that broad application.

Title VI defines "program or activity" at 42 U.S.C. 2000d-4a. The DOJ Title VI Legal Manual provides information about the legal basis for how Federal agencies interpret the definition of "program or activity" under Title VI and other Federal civil rights statutes.  
 

If you are waiting on an award as a subrecipient which is not guaranteed, would it cause an issue if I applied independently by the chance the recipient is denied? If both receive an award, I could not accept the award, correct?

For applications that are unique, where an organization is a recipient on one award, and a subrecipient on another, EPA will inquire about how organization will manage funding and costs to ensure work does not overlap. Most of the time, an organization is allowed to be a recipient one award and a subrecipient on another, if the work is unique, and EPA is not paying twice for the same work. However, if you are applying to a competitive grant opportunity, check to make sure the Notice of Funding Opportunity doesn't prohibit applicants from also being subrecipients listed on another applicant's award.
 

If the applicant is an education program or activity, or has 15 or more employees, do they need to designate an employee to coordinate its compliance with 40 CFR Parts 5 and 7?

If an applicant has 15 or more employees, it must designate a nondiscrimination coordinator. EPA's nondiscrimination regulations require as a condition for receiving EPA financial assistance that a recipient publish a notice of nondiscrimination, which should include contact information for the recipient's nondiscrimination coordinator. For more information about requirements and best practices related to the functions and authority of the nondiscrimination coordinator, please refer to the EPA's Civil Rights Guidance on Procedural Safeguards.

If the applicant is an education program or activity, it must designate a Title IX coordinator, and publish the name, office address and telephone number of the person appointed to this position. For more information about the Title IX coordinator, please refer to 40 CFR § 5.135(a).  

Can programs receiving EPA assistance segregate people, deny their opportunity to participate, or restrict people from enjoyment of advantage/privilege based on non-compliance with U.S., State, or local laws?

In the United States, the Supremacy Clause in the U.S. Constitution states that federal law is "the supreme Law of the Land; and the judges in every state shall be bound thereby, anything in the Constitution or laws of any State to the contrary notwithstanding." All recipients of Federal financial assistance must comply with all Federal civil rights laws. Please consult legal counsel for any fact-specific applications of the Federal civil rights laws. 
 

Are all changes that are going to be discussed applicable for all grants federal government wide, or are some changes specific to just U.S. EPA grants?

The 2 CFR 200 Revisions are federal-wide per the Office of Management and Budget. Federal agencies have discretion for some parts of the 2 CFR and is noted in the parts and subparts of the guidance.
 

Are gift cards considered prizes?

This is dependent on their use. Prizes are not allowable except under specific and direct programmatic purpose and are included in a Federal award per 200.438, Entertainment and Prizes. Gift cards purchased under participant support costs, outlined within the 2CFR Part 200, must support participants and their involvement in a Federal award, such as stipends, subsistence allowances, travel allowances, registration fees, temporary dependent care, and per diem paid directly to or on behalf of participants.
 

Are states required to follow these new guidelines? For example, the 319 Grants Program?

These changes are government wide. Please refer to the EPA specific Terms and Conditions for EPA specific changes.
 

Are these new updates in effect for any grants awarded *before* October 1, 2024? If my grant (that was awarded before October 2024) is extended or amended, will these new regulations be in effect?

The set of regulations that will apply to your project is based on the award date of your grant. If the grant is awarded before October 1, 2024, then you would comply with the regulations in effect at the time of award.
 

Are vehicles covered by 200.439?

Purchasing a vehicle is covered under 200.439, Equipment and Other Capital Expenditures. Cars are considered equipment because it is over the allowed threshold ($10,000) and thus are considered covered by 200.439.
 

Can a grantee meet their cost sharing requirement with expenses they incurred pre-award?

Pre-award costs are those incurred before the start date of the Federal award or subaward directly pursuant to the negotiation and in anticipation of the Federal award where such costs are necessary for efficient and timely performance of the scope of work, per 200.458, Per-award Costs. Per 1500.9, Revision of Budget and Program Plans, EPA award recipients may incur allowable project costs 90 calendar days before the Federal awarding agency makes the Federal award. Expenses more than 90 calendar days pre-award require prior approval of EPA. All costs incurred before EPA makes the award are at the recipient’s risk. EPA is under no obligation to reimburse such costs if for any reason the recipient does not receive a Federal award or if the Federal award is less than anticipated and inadequate to cover such costs.
 

Can participant support costs be included in the payments to the Statutory Partner Subawards, since the partner has the written policies?

If you have an existing project, you may need prior approval for this. If this is for a new project under the new regulations, you may not need prior approval as a recipient, but would need to be aware and know what your subrecipient is doing.
 

Can Tribes award subawards how they see fit according to their own procurement policies? Or do sub-awarding rules from before still apply when an Indian Tribe parcels out some of the funds in a subaward?

For awards made on or after October 1, 2024, Tribes must follow the same policies and procedures used for procurements with non-Federal funds when conducting procurement transactions. If such policies and procedures do not exist, Tribes must follow the procurement standards in 200.318 through 200.327. As for the subaward, they must still follow the regulations at 200.333, for fixed amount subawards, they will still require prior approval, regardless of type.
 

Can you explain the cost-reimbursement of procurement contracts – why can the de minimis not be used?

Per 200.414, Indirect Costs, the de minimis rate must not be applied to cost reimbursement contracts issued directly by the Federal Government in accordance with the Federal Acquisition Regulations.
 

Can you give us the website address for the EPA 2 CFR 200 page?

https://www.epa.gov/grants/whats-new-uniform-grants-guidance-2024-revision-2-cfr-200
 

Can you please clarify what is meant by “services” with respect to Modified Direct Costs (MDC)? Is a subcontract for design/construction considered a “service” or a “subaward”?

Construction is considered a capital expenditure, so it’s excluded from the modified Total Direct Cost Base (MTDC). Construction costs that are contracted out are still considered construction costs and not services. Please note constructions costs include all the costs of materials, supplies, and labor that are reasonable and necessary for building the asset and preparing it for its intended use, including professional fees for architects, engineers, appraisers, and attorneys associated with feasibility studies; preliminary engineering, planning, and design. Contracts are typically for goods or services. The contracts for goods are typically included in a recipient’s budget as materials and supplies or as equipment, depending on the prices of the goods purchased. Materials and supplies are included in the MTCD base, while equipment is excluded from MTDC base. Contracts for services are performed by a contractor and are included in the budget have contractual costs. The following list includes examples of services: IT Services, Pest Control Services, and Security Services. The contracts are for services required for the grant but not contracted out by the recipient, and these services are included in the recipient’s MTDC base. Subaward do not include payments to contractors. For more information on Indirect Costs and Modified Direct Costs, please see the EPA Indirect Cost Policy for Recipients of EPA Assistance Agreements.
 

Could you please expand on the indirect costs? I childcare allowable and does it mean employee assistance with childcare? Additionally, are there revisions to assist staff with mental health-gym memberships, etc.?

Do any items discussed today apply specifically to grant awards made prior to 9/20/2024?

The guidance in place when the Federal award was made are still applicable to the award. To access the prior guidance, please visit the eCFR webpage.
 

Do pre-award monies include grant preparation consultants?

If the question is asking whether the cost for grant application preparation services is eligible to be charged to the EPA grant as a pre-award cost, the answer depends on the grant program. For instance, grant application preparation costs are prohibited as an allowable cost under EPA Brownfields Grants. However, other EPA grant programs may allow it. For more information, see EPA’s Guidance on Selected Items of Cost and or consult with your EPA program contact.
 

Do the monitoring provisions under 200.332 apply exclusively during the period of performance?

No. Monitoring provisions would fall under closeout reporting and is described within 200.332(b)(6), Requirements for Pass-Through Entities.
 

Do these guidelines apply to federal loans, such as Clean Water and Drinking Water state revolving fund (SRF), Water Infrastructure Finance and Innovation Act (WIFIA), and Clean Water Infrastructure Financing Program (CWIFP)?

Some of the requirements in 2 CFR Part 200 apply to Federal loan programs administered by EPA, such as CWSRF, DWSRF, and WIFIA; however, this question should be raised to the appropriate EPA program contact (or other Federal government agency as appropriate (e.g., in the case of CWIFP)) as the applicability of the requirements in 2 CFR Part 200 may vary depending on the program.
 

Do these updates apply if a project start date is October 1 but the award notification was sent on September 24?

The set of regulations that will apply to your project is based on the award date of your grant. If the grant is awarded before October 1, 2024, then you would comply with the regulations in effect at the time of award.
 

For larger grants like the Community Change Grants, can the sub-recipient threshold be greater than $500,000? The applicant/pass-through entity is a municipality and the subrecipient is implementing the actual project.

With prior written approval from the Federal agency, a recipient may provide subawards based on fixed amounts up to $500,000, but Fixed amount subawards must meet the requirements of 200.201, per the guidance in 200.333, Fixed Amount Subawards.
 

For our existing subrecipients or vendors with contracts established prior to October 1, but receiving new funding for those contracts after this date, are they required to comply with the new terms?

This is dependent on the project itself and if incorporated into the new revisions and Terms and Conditions (T&Cs).
 

For Tribes that received their original award before October 1st, and then received additional incremental funding after October 1st, do the new procurement rules apply for the entirety of the activities, or only the ones funded in the later action?

The set of regulations that will apply to your project is based on the award date of your grant. If the grant is awarded before October 1, 2024, then you would comply with the regulations in effect at the time of award.
 

How do we get a soft copy of the revised guidelines?

By visiting the eCFR website. You should be able to view the document in full and will have access to a PDF version.
 

How far in advance can payments be requested from the Automated Standard Application for Payments (ASAP)? I thought grantees could only draw down funds for payments that need to be made within 5 days.

Per 200.305, Federal Payment, it states that the timing and amount of advance payments must be as close as is administratively feasible to the actual disbursements by the recipient or subrecipient for direct program or project costs and the proportionate share of any allowable indirect costs. − It is EPA’s interpretation that it is five business days when disbursement can occur. Please refer to the EPA General Terms and Conditions (T&Cs) which provide further information on this.
 

I see that EPA is sponsoring this training, but do these 2 CFR 200 changes apply to all Federal agencies?

Yes, the revisions are Federal-wide. Please see the Council on Federal Financial Assistance (COFFA) webpage for more information.
 

If a cooperative agreement came in-house before 10/1 with a 10% de minimis, but signed off on/after 10/1/24, can we use the new de minimis rate?

This threshold increase is effective for entities with fiscal years that started on or after October 1, 2024. The increase would be based on the recipient’s fiscal year. Because every project has specific factors, we recommend discussing with your Project Officer if using the new de minimis rate is an option.
 

If a grantee asks whether their grant (which was awarded before October 1, 2024) can it be regulated under the new regulations, can we amend the grant to the updated regulations?

Yes. If a recipient is interested in amending their Federal award to point to the 2024 revisions, they will need to formally request this change and be approved by the award official. As the 2024 revisions may impact certain aspects of the grant budget, the recipient must also decide whether they want to request a budget modification.
 

If a pass-through entity mixes EPA funds with another Federal agency funding (one with old Uniform Grants Guidance (UGG) applicable and the other the new UGG), how should that pass-through approach their plan to implement the UGG revisions?

Mixing funds is considered an inappropriate use of federal funds. Recipients must follow the regulations to that federal grant. For example, if a recipient has one grant from EPA and another grant from another agency, the recipient must follow both regulations and not mix them together.
 

If a recipient is currently using the 10% indirect cost rate, do they now have to change it to the 15%?

No, it is an option, not a must, per 200.414, Indirect Costs.
 

If a recipient met the $750,000 threshold before 10/1 but not the $1,000,000 threshold, is a single audit no longer required?

The single audit threshold is not based on one award, but rather based on the total expenditures across all Federal awards for one entity. This means that even if the EPA award is under $1M, there is still a possibility that an audit will need to be conducted if the recipient has expenditures from other awards. − This threshold increase is effective for entities with fiscal years that started on or after October 1, 2024. The increase would be based on the recipient’s fiscal year. If the recipient’s fiscal year started on or after October 1, 2024, then they would follow the new threshold, but if their fiscal year ran from January 1 through December 30, that would mean they are subject to the $750k threshold until their new fiscal year starts on January 1, 2025.
 

If grantees are now required to spend their program income first, does that create an issue when award funding is left over at the end of the grant?

This should not create an issue. When the grant closes, the recipient may work with their Project Officer to determine options, for example, of returning the funds.
 

If one has a different cognizant agency, would that agency provide the certification on the $50,000 threshold or must the grantor provide the certification?

If the threshold is over $50,000, the cognizant agency would provide the approval. Per 200.320, Procurement Methods, the recipient may self-certify a threshold up to $50,000 on an annual basis and must maintain documentation to be made available to the Federal agency or pass-through entity and auditors in accordance with 200.334. For thresholds higher than $50,000, they must be approved by the cognizant agency for indirect costs. The recipient must submit a request that includes the requirements outlined in 200.320.
 

If our organization does not have a Negotiated Indirect Cost Rate Agreement (NICRA), can we still utilize the new de minimis rate of 15%, correct?

Yes. Per 200.414 (c)(1), Indirect Costs, negotiated indirect cost rates must be accepted by all Federal agencies. A Federal agency may use a rate different from the negotiated for either a class of Federal awards or a single Federal award only when required by Federal statute or regulation, or when approved by the awarding Federal agency.
 

If the sub awardee is performing services for the recipient, is it acceptable to have higher subaward amount?

Subawards are defined as an award provided by a pass-through entity to a subrecipient for the subrecipient to contribute to the goals and objectives of the project by carrying out part of a Federal award received by the pass-through entity. It does not include payments to a contractor, beneficiary, or participant, per 200.1, Definitions. Because a subaward is not a contract and not doing services for the recipient, the costs are determined through the subaward agreement.
 

If we pay and then ask for reimbursement, will that be an issue?

Per 200.305, Federal Payment, reimbursement is preferred when the requirements outlined within the guidance cannot be met, when the Federal agency or pass-through entity sets a specific condition per 200.208, when requested by the recipient, when a Federal award is for construction, or when a significant portion of the construction project is accomplished through private market financing or Federal loans, and the Federal award constitutes a minor portion of the project. We also recommend reviewing the General Terms and Conditions section 4, Reimbursement Limitation, and section 5, Automated Standard Application Payments (ASAP) and Proper Payment Draw Down Electronic Payments, for more specific information on EPA’s policy on reimbursement.
 

If we submit an application and include an item less than $10,000 in the Equipment section, will the application be disallowed?

No. If in your application you incorrectly categorize a budget category, and your applicant is accepted for funding, the EPA Project Officer and Grant Specialist will work with you to address and ensure proper budget categorization.
 

Indirect costs—if we do not have an agreed-upon rate and the terms state that we must have one, would we still be able to draw the de minimis rate if we do not yet have an agreed rate?

If the project does not have a negotiated rate, you are allowed to use the de minimis rate. Having a de minimis rate is an option, not a requirement.
 

Is a required match now a required cost share?

Match is considered a type of cost share, and cost share is defined in the guidance as a portion of project costs not paid by Federal funds or contributions (unless authorized by Federal statute). This term includes matching, which refers to required levels of cost share that must be provided. Please see 200.306, Cost Sharing, for more information on the topic of cost share.
 

Is it “may use” or “must use” the new requirements with supplemental funding? The slide said "may."

For supplemental funding, awards must use the new ones.
 

Is it correct that effective 10/1/2024, newly procured equipment with aforementioned threshold requires a physical inspection every two years? Or is the equipment previously procured before 10/1/2024, meet this new threshold?

If the equipment was procured before October 1, 2024, the previous regulations and Terms and Conditions still apply to that procurement and must follow the inventory requirements outlined. The requirements outlined in 200.313, Equipment, remain the same and have not changed with the updates to the guidance, and therefore, taking inventory every two years remain in effect.
 

Is the de minimis rate a fixed 15% or up to 15%?

The de minimis rate is up to 15% modified total direct cost.
 

Is the new audit requirement only for awards greater than $1,000,000? Our award is nearly $1,000,000 but does not exceed the new threshold. Our award ended up being approximately $999,950 so will not be subject to a single audit now, is that true?

The single audit threshold is not based on one award but rather based on the total expenditures across all Federal awards for one entity. This means that even if the EPA award is under $1M, there is still a possibility that an audit will need to be conducted if the recipient has expenditures from other awards. This threshold increase is effective for entities with fiscal years that started on or after October 1, 2024. The increase would be based on the recipient’s fiscal year. If the recipient’s fiscal year started on or after October 1, 2024, then they would follow the new threshold, but if their fiscal year ran from January 1 through December 30, that would mean they are subject to the $750k threshold until their new fiscal year starts on January 1, 2025.
 

Is the new de minimis rate just for EPA grants?

No, this applies to all Federal awards.
 

Is there a link that specifically outlines changes that relate to Tribal entities?

No. We recommend visiting the Bureau of Indian Affairs, White House Council on Native American Affairs page with information and links to a listening and question session they conducted on this topic. EPA will be conducting a webinar on December 4, 2024 that focuses on the revision changes that specifically impact Tribal entities and communities. More information and a link to register will be made available closer to the date.
 

My agency has an incremental award, at what specific point would the guidance switch? Will there be documentation, i.e. a letter ####-1 or -2 etc.?

For existing awards entered into before October 1, 2024, EPA will apply the 2024 Revisions to any amendments entered into on or after October 1, 2024, that provide additional funds. The amendment will be formally documented.
 

Our Prime's grant was awarded before October 1, but we, as the subrecipient, have not been awarded yet – can we ask for 15% de minimis?

No. The regulations trickle down from the Prime, so if the EPA grant was awarded before October 1, 2024, the previous regulations and agreed upon 10% de minimis rate still apply.
 

Please explain the difference between match and cost share. I've always treated the terminology as having the same definition.

Match is considered a type of cost share, and cost share is defined in the guidance as a portion of project costs not paid by Federal funds or contributions (unless authorized by Federal statute). This term includes matching, which refers to the required levels of cost share that must be provided. Please see 200.306, Cost Sharing, for more information on the topic of cost share.
 

Recipients and subrecipients are still required to use a Negotiated Indirect Cost Rate Agreement (NICRA) if they have one in place, correct?

Correct, the entity must use their current negotiated rate.
 

Regarding 200.308 revision of budget changes. Can you please clarify? Are we no longer able to make adjustments within 10% of the award amount without prior approval?

No. This is still allowed per 200.308(f), Revision of Budget and Program Plans, which outlines when a recipient must request prior written approval from the Federal agency or pass-through entity. For further information, we recommend also reviewing the General Terms and Conditions which provides in section 24, Transfer of Funds.
 

The de minimis rate is now 15% as of when?

The change is effective October 1, 2024, for grants awarded on or after that date, per 200.414.
 

To clarify around participant support costs/prior approval being no longer required. Per 200.308, prior approval is still required for the transfer of funds from participant support costs to other budget categories. Is this correct?

Yes, that is correct, prior approval is still required. As provided in 200.308, the recipient must obtain prior approval from EPA’s Grants Management Officer if the cumulative amount of funding transfers among direct budget categories or programs, functions and activities exceeds 10% of the total budget, as last approved by EPA, including cost share. We recommend also reviewing section 24.1, Transfer of Funds, within the EPA’s General Terms and Conditions.
 

Under 200.313, what does it mean that Federal share must be paid back?

Per 200.313, Equipment, if the Federal agency or pass-through entity fails to provide requested disposition instructions within 120 days, items of equipment with a current fair market value in excess of $10,000 (per unit) may be retained or sold by the recipient or subrecipient. However, the Federal awarding agency is entitled to an amount calculated by multiplying the percentage of the Federal agency’s contribution towards the original purchase by the current market value or proceeds from the sale. We also recommend reviewing section 36.2, Disposition, within the EPA’s General Terms and Conditions, which outlines EPA’s stance.
 

Under the new regulations, does this mean that cost-sharing is no longer going to support "in-kind" match as a commitment in an application?

Each competition is different based on their information, but as defined in 200.306, Cost Sharing, Federal agencies are discouraged from using voluntary committed cost sharing as a factor during the merit review of applications for other Federal financial assistance programs. If voluntary committed cost sharing is used for this purpose for other programs, the notice of funding opportunity; must specify how an applicant’s proposed cost sharing will be considered. For all Federal awards, the Federal agency or pass-through entity must accept any cost sharing funds including cash and third-party in-kind contributions, per 200.306, Cost Sharing.
 

We frequently have subrecipients who choose to take a lower indirect rate; however, we don't require it. Is that still allowed per 200.414(c)?

Per 200.414(c), a Federal agency may use a rate different from the negotiated rate for either a class of Federal awards or a single Federal award only when required by Federal statue or regulation, or when approved by the awarding Federal agency. Per the same citation, pass-through entities are subject to the requirements in 200.332(b) and must accept all federal negotiated indirect costs rates for subrecipients.
 

What is the definition of "key personnel"? How can we get pre-approval of a change if the employee gives 2 weeks notice (or less) before leaving?

Per the EPA Key Contacts Form, 5700-54, Key Personnel includes the Project Manager, Authorized Representative, Payee, and Administrative Contact. In section 40, Post-Award Disclosure of Current and Pending Support on Research Grants, within the EPA’s General Terms and Conditions, it states that if there has been a change in senior/key persons, the recipient must report the change within 30 calendar days to the EPA Project Officer. This information should also be included in the next due performance report. For further information on this, we recommend reviewing the above mentioned section within the EPA General Terms and Conditions.
 

What is the difference between a participant and subrecipient?

Participant is defined as any person who submits a proposal for or enters into a covered transaction, including an agent or representative of a participant. Recipients is considered as any individual, corporation, organization, partnership, association, unit of government (except a Federal agency), or legal entity, regardless of how it is organized, that receives an award directly from a Federal agency. Subrecipient means any entity that receives a subaward from a pass-through entity to carry out part of a Federal award. The term subrecipient does not include a beneficiary or participant. A subrecipient may also be a recipient of other Federal awards directly from a Federal agency.
 

What is the effective date of the $1,000,000 single audit threshold?

This threshold increase is effective for entities with fiscal years that started on or after October 1, 2024. The increase would be based on the recipient’s fiscal year. If the recipient’s fiscal year started on or after October 1, 2024, then they would follow the new threshold, but if their fiscal year ran from January 1 through December 30, that would mean they are subject to the $750k threshold until their new fiscal year starts on January 1, 2025.
 

What is the measurement period for the Single Audit requirement? Is the threshold measured based on the calendar year (i.e. 1/1-12/31) or is it the government's fiscal year (10/1-9/30)?

The measurement is based on the pass-through entity’s fiscal year, so the dates are based on calendar year vs the government’s fiscal year.
 

What requirements in 2 CFR 200, if any, have replaced 2 CFR 225, Appendix B, 8h? Do we have to maintain the signed "personnel activity reports" for employees who work on grant-related activities less than 100% of the time?

Within the Uniform Grants Guidance (UGG), there is no 2 CFR 225, but there has previously been an OMB Circular 225, which focused on Cost Principles. We now reference and use the UGG for all grants guidance. Looking at 2 CFR 200.430, Compensation – personal costs, section “g – Standards for Documentation of Personnel Expenses,” for a recipient or subrecipient whose records do not meet the standards described in this section, the Federal Government may require personnel activity reports, including prescribed certification, or equivalent documentation supporting the records as required within this section.
 

When is the $1,000,000 threshold effective? With fiscal years that BEGIN on or after October 1, 2024, or with fiscal years that END on or after October 1, 2024?

This threshold increase is effective for entities with fiscal years that started on or after October 1, 2024. The increase would be based on the recipient’s fiscal year. If the recipient’s fiscal year started on or after October 1, 2024, then they would follow the new threshold, but if their fiscal year ran from January 1 through December 30, that would mean they are subject to the $750k threshold until their new fiscal year starts on January 1, 2025.
 

Who in EPA will approve the micro-purchase self-certification? Is that at the Project Officer (PO) or Grant Specialist (GS) level, or does it require higher approval?

Recipients and subrecipients may establish a micro-purchase threshold over $10,000. Recipients and subrecipients can self-certify micro-purchase thresholds up to $50,000. EPA approval is not required. Micro-purchase thresholds over $50,000 must be approved by EPA if EPA is the cognizant agency. That approval must come from the Award Official.
 

With the change to the de minimis rate increasing to 15%, did the cap on the award level also increase (i.e., the $35 million in direct federal funding threshold for using the de minimis rate)?

No, the $35 million threshold for governmental departments and agencies did not increase. Please see 2 CFR Appendix-VII-to-Part-200 D.1.b.
 

Would the previous regulations be in effect regardless of if my grant (which was awarded before October 1, 2024) is extended or amended?

No. The previous regulations would be in effect up to when your EPA grant is amended. If a recipient is interested in amending their Federal award to point to the 2024 revisions, they will need to formally request this change and be approved by the award official. As the 2024 revisions may impact certain aspects of the grant budget, the recipient must also decide whether they want to request a budget modification.
 

Would you clarify whether, and if so when, local governments can use the de minimis rate for indirect rates? State agencies are using de minimis for local governments.

If a local government is a subrecipient on an award made to a state agency, the de minimis rate will depend on when the award was made to the state (as the prime recipient of the federal financial assistance). If the award was made to the prime recipient prior to October 1, 2024 then the de minimis is still 10% unless the award gets amended to apply the 2024 Revisions. See RAIN regarding amending existing awards. If the state agency (as the prime) is awarded the federal financial assistance after October 1, 2024 then the di minimis rate may go up to 15%.
 

Can an applicant name a consultant/partner upfront, in the grant application? For example, a consultant that they want to support them, should they win the grant.

Yes. However, EPA advises against naming a consultant in a grant application unless: 1) the applicant is subject to 2 CFR 200.317 (all states and tribes covered by 2 CFR 200.317 after October 1, 2024); or 2) the amount of the consulting contract will be less than the $10,000 micro-purchase threshold (some applicants may have a higher micro-purchase threshold if they meet the requirements in 2 CFR 200.320(a)(1)(iii) through (v)); or 3) the applicant has selected the consultant in compliance with all applicable federal competitive procurement requirements, including any statutory requirements, 2 CFR 200.318 through 2 CFR 200-320, and/or EPA’s Participation by Disadvantaged Business Enterprises rule at 40 CFR Part 33.

Note, naming a consultant in an application as a “partner” does not relieve applicants from complying with applicable regulatory or statutory (e.g., Brooks Act for Architectural and Engineering services) procurement requirements.

Do procurement contracts need a Unique Entity Identifier (UEI) like a subaward/subrecipient?

No. Procurement contractors do not require a UEI. It is only for subrecipients.

We have an open grant with two subawards. One we have ceased using but was used only before the Unique Entity Identifier (UEI) was a requirement. Do we need to return to the currently unused subaward to obtain a UEI?

If your relationship with that subrecipient ceased prior to the UEI requirement, it is not required to go back and ask for it retroactively.

Can you confirm that direct recipients of EPA funding are paid in advance, not on a reimbursement level? And if we have a subrecipient, do we pay them in advance as well?

For most EPA grant programs, recipients are paid in advance as provided by 2 CFR 200.305 and the General Terms and Conditions for non-state recipients require that covered recipients disburse the funds for allowable incurred costs (e.g., to pay employees, contractors and subrecipients) within 5 working days of drawing the funds down from the Automated Standard Application for Payments (ASAP) system.

However, for the Office of Water Congressionally Directed Spending construction grants, recipients must obtain prior EPA approval for drawdowns which is a form of reimbursement authorized by 2 CFR 200.305(b)(3).

Recipients who are pass-through entities must also pay subrecipients in advance unless they have made findings pursuant to 2 CFR 200.332 that paying the subrecipient on a reimbursement basis is necessary for proper financial management.

What is the difference between a subrecipient and a beneficiary?

Refer to Section 4 of the EPA Guidance on Participant Support Costs.

Can we create a beneficiary agreement (rather than a subaward) when awarding to a for-profit entity when the funding will aid the company in adding jobs and updating equipment and practices moving towards environmental sustainability (solar, wind, etc.)?

The answer depends on how the arrangements with the for-profit company are structured. If the payment to the for-profit firm is only for the installation of “off the shelf” pollution control equipment or solar/wind technology for generating power the transaction would be a program participation payment as indicated in Section 4 of the EPA Guidance on Participant Support Costs. However, if the payments are to reimburse the for-profit for employee labor, contracts for design and engineering, and overhead costs the transaction would be characterized as a subaward.

What would happen if we were unable to get three or more bids?

You would need to maintain documentation that you conducted a full and open procurement competition consistent with all applicable federal requirements. Consistent with the current version of 2 CFR 200.324 in effect (not applicable to grants awarded on or after October 1, 2024), the recipient “must negotiate profit as a separate element of the price for each contract in which there is no price competition.” Note, this requirement applies to qualifications-based procurement as well.

Will the restriction on Chinese ownership apply only to the applicant itself or also to any pass-through entities that might receive EPA funding?

Yes, restrictions on using EPA funds to benefit Foreign Entities of Concern or 2 CFR 200.216 contained in the terms and conditions of EPA awards flow down to subrecipients.

Does the three bids requirement start at $10,000 or $50,000?

The competition requirements start at over $10,000 unless the recipient has a micro-purchase level above that amount that meets the requirements in 2 CFR 200.320(a)(1)(iii) through (v).

Does the grant statute override our agency's procurement process as well?

The Procurement Standards at 2 CFR Part 200 override any conflicting state laws applicable to local governments. If the Federal grant statute requires a specific method of procurement be followed (e.g., the Brooks Act) that statute would supersede the regulatory Procurement Standards.

For the consulting fee cap, is an LLC with a single consultant an individual or a consulting firm?

An LLC with a single consultant is subject to the consultant fee cap.

Is the percentage of cost computed as contingency for unexpected increases in construction costs allowed in grant budgets?

Yes, contingencies based on a percentage of construction costs are allowed for construction projects to the extent permitted by 2 CFR 200.433. EPA may consider contingencies that exceed 20% of estimated construction costs to be unreasonably high.

If the use of a sole source contract can be proven to save the project considerable amount of time and money, and the sole source contractor will not take a fee for services, would that generally be accepted by the EPA?

EPA does not object to recipients awarding sole source contracts that will be paid for with their own funds as long as the costs for those contracts are not counted toward a cost share for the grant.

Regarding the new Office of Management and Budget (OMB) rules and the elimination of geographic preference, what exactly does it mean to eliminate geographic preference?

It means that the prohibition on using geographic preference in evaluating bids or proposals currently in effect at 2 CFR 200.319(c) is being removed. Refer to the current regulations for a description of geographic preferences.

If an award is made prior to the new rules going into effect, will the new rules not impact the award until it is modified or is there a provision like with Tribal procurement where whatever is in effect at the time of award stays the whole time?

The revised regulations will apply if a grant is amended to add additional funds after October 1, 2024. EPA has not yet made a decision on whether to apply the revised version of 2 CFR Part 200 to grants awarded prior to October 1, 2024, in other situations.

For a construction bidding process, if the lowest bidder is deemed to not be qualified by the recipient, what documentation is required to pass on that bid and move to the next lowest bidder?

Consistent with the requirements in 2 CFR 200.318(i), recipients “must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price.”

Can you explain the consultant fee cap?

The consultant fee cap applies to payments made with EPA grant funds to an individual consultant by the recipient/subrecipients and their contractors, or subcontractors and was enacted as part of Public Law 111-8. EPA implements the cap in 2 CFR 1500.10. As provided in the statute and regulations, EPA grant funds may not be used to compensate individual consultants in amounts in excess of compensation at Level IV of the Federal Executive Schedule. The cap applies to compensation on an hourly, daily or any other basis that compensates the consultant for personal services. It does not apply to fixed priced contracts for specific products such as reports. Travel and overhead are not covered by the cap—only personal compensation reflected in the consultant’s IRS Form 1099.

If the recipient contracts with a consulting firm, the cap does not apply to the salaries/compensation for the employees of that firm, so long as the recipient/subrecipient does not select who from the consulting firm works on their project and does not have direction or control over the day-to-day work of the consulting firm employee working on the recipient’s project.

The cap does not apply to payments made to individual consultants by borrowers under EPA Revolving Loan Fund capitalization programs.

More guidance about the consultant fee cap is available in EPA’s General Terms and Conditions and Best Practice Guide for Procuring Services, Supplies, and Equipment.

What are the triggering activities for Davis-Bacon Related Acts (DBRA)?

If the statute authorizing the EPA grant program applies a Davis Bacon Related Act to activities assisted under the program, prevailing wage requirements typically apply to construction, alteration or repair work. Please refer to the DBRA Term and Condition for the grant program for additional details.

I know it is a problem if the purchase is broken into orders that fall below $10,000 but all ordered from the same company. However, is it a problem if the purchases are broken in smaller orders that fall below $10K but ordered from different companies?

Rotating orders below $10,000 among qualified sources complies with the 2 CFR 200.320(a)(1) micro-purchase threshold.

For participant support costs, is there a guidance on stipend amounts?

Refer to the EPA Guidance on Participant Support Costs which is available at the on the Participant Support Costs webpage. Stipend amounts must be reasonable based on the activity the program beneficiary carries out to earn the stipend. Note that EPA staff have been instructed to question the reasonableness of stipends that exceed compensation called for in Level IV of the Executive Schedule. However, a stipend for attending a community meeting or participating in a training program should be much less than that authorized by Level IV.

Can you develop a request for quote (RFQ) with scoring and cost proposals, review all proposals without opening cost estimates, then open cost estimates and negotiate pricing with the best qualified firm?

It depends on the procurement requirements applicable to the grant program. The procurement method described above is akin to qualifications-based procurement where price is not considered in evaluating proposals. This method of procurement can only be used when the federal statute requires it (e.g., the Brooks Act); or, consistent with 2 CFR 200.320(b)(2)(iv), when procuring services that can only be provided by a licensed architecture/engineering (A/E) firm, such as when state or local law requires work to be performed by a licensed architect or engineer. Otherwise, cost reasonableness must be a substantially weighted evaluation factor (EPA recommends at least 25%) when evaluating proposals in response to a competitive solicitation.

Is there a direct guidance that is enforceable to provide to keep contract solicitations open at least 30 days?

Yes, the regulatory cite for keeping solicitations open for at least 30 days is 40 CFR 33.301(b) which provides that recipients must “...whenever possible, [post] solicitations for bids or proposals for a minimum of 30 calendar days before the bid or proposal closing date.” EPA’s Procurement Best Practice Guide also discusses this requirement.

Do contracts that are funded outside of grant funds (that will be used as part of a match for the grant) need to go through the outlined procurement process, or can they adhere to local and state procurement law?

All costs that will be used for match or cost share must comply with Federal requirements as provided in 2 CFR 200.306(b)(4) and (7). Refer to the Cost Share coverage in the Interim General Budget Development Guidance for Applicants and Recipients of EPA Financial Assistance.

If interns are considered employees, should their pay be categorized as personnel?

Yes.

If recipients are wanting to give a housing stipend in addition to the intern pay, should that be categorized in participant support costs?

Yes.

Is a capacity-based incentive to the owner of a residence to install solar technology a subsidy?

Yes.

Can you provide an example of an acceptable receipt for incentives or stipends paid to program participants? Particularly, I am interested in receipts for cash distributions to participants.

A signed document in which the program participant acknowledges receipt of funds for doing something to earn the stipend such as attending a community meeting or participating in a neighborhood cleanup.

How flexible are the budgets under EPA grant awards? For example, if the contractor cost comes in lower than estimated in the grant budget, can the difference be easily moved to another budget line item?

Funds can be re-budgeted; however, it is important to notify your EPA Project Officer and Grant Specialist of these changes. Depending on the changes proposed, a grant amendment may be required. In other cases, the changes may be made in a less formal manner. Refer to the General Term and Condition Transfer of Funds document all changes and approvals in your grant record.

Can funds be moved between line items within the same budget year and between different years for multi-year grants?

Subject to the General Term and Condition Transfer of Funds rebudgeting between line items in the same budget years is permissible. Transfers of funds between different years for multi-year grants is more complicated and dependent on how EPA funded the grant agreement. If the grant agreement was fully funded, then movement of funds between budget years is permissible again subject to the Transfer of Funds term and conditions. There are restrictions on moving funds between budget years when a grant is incrementally funded. Consult your Grant Specialist and Project Officer in those situations.

States can have various criteria for what constitutes as a Minority and Women-owned Business Enterprise (MWBE). Does the EPA accept all state certified MWBEs when MWBE reporting is required on an EPA grant?

Not necessarily. Refer to 40 CFR 33.204(a)(3) for criteria for certification of MBE/WBE status under state law. Entities that meet the certification criteria under at least one of the following authorizing statutes are qualified for EPA’s DBE program:

EPA's 8% Statute: Under EPA’s 8% statute (Public Law 102-389, 42 U.S.C. 4370d), an entity must establish that it is owned or controlled by socially and economically disadvantaged individuals who are of good character and citizens of the United States. The statute presumes women to be socially and economically disadvantaged individuals. Public Law 102-389, 42 U.S.C. 4370d, provides for an 8% objective for awarding contracts under EPA financial assistance agreements to business concerns or other organizations owned or controlled by socially and economically disadvantaged individuals, including Historically Black Colleges and Universities (HBCU) and women.

EPA's 10% Statute: Under EPA’s 10% statute (Title X of the Clean Air Act Amendments of 1990, 42 U.S.C. 7601 note), an entity must establish that it is owned and controlled by socially and economically disadvantaged individuals who are of good character and citizens of the United States. The statute presumes HBCUs, Black Americans, Hispanic Americans, Native Americans, Asian Americans, Women, and Disabled Americans are socially and economically disadvantaged individuals. Title X of the Clean Air Act Amendments of 1990, 42 U.S.C. 7601 note, provides for a 10% objective for awarding contracts under EPA financial assistance agreements for research relating to such amendments to business concerns or other organizations owned and controlled by socially and economically disadvantaged individuals. Note: Entities not covered by one of the two statute presumptions for socially and economically disadvantaged must meet the criteria listed in 40 CFR §33.202 and/or 40 CFR §33.203 to qualify for EPA’s DBE Program.

What circumstances trigger the need for competitive procurement?

Refer to 2 CFR 200.319, 2 CFR 200.320 as interpreted in the Best Practice Guide for Procuring Services, Supplies, and Equipment Under EPA Assistance Agreements. Generally, any procurement for property or services with a contract price of $10,000 must be competitive.

What is a reasonable amount for participant support for disadvantaged community members to attend a meeting where they are providing valuable input?

Refer to the EPA Guidance on Participant Support Costs which is available at the EPA website. Stipend amounts must be reasonable based on the activity the program beneficiary carries out to earn the stipend. Note that EPA staff have been instructed to question the reasonableness of stipends that exceed compensation called for in Level IV of the Executive Schedule. However, a stipend for attending a community meeting or participating in a training program should be much less than that authorized by Level IV.

Do participant support costs apply to subawards at all? For example, if the subrecipient has travel costs, would those be part of the subaward costs, or would that be participant support costs?

Travel costs for subrecipient employees would be part of the subaward, and they would go in the “Other” cost category in the EPA budget.

We have a subaward program where municipalities are partnering with non-profit organizations to fulfill work. Is the municipality allowed to charge an indirect rate on their invoice for the subaward?

The answer to this question depends on the distribution base for the municipality’s indirect cost rate. Some distribution bases, consistent with Modified Total Direct Cost as defined in 2 CFR 200.1, limit the distribution of indirect costs to the first $25,000 of subaward costs an amount that will increase to $50,000 on October 1, 2024.

Would entertainment costs (e.g., food, music, etc.) for community awareness events be considered participant support costs?

No. Allowable entertainment costs are covered by 2 CFR 200.438 and Item 3 of the EPA Office of Grants and Debarment (OGD) Guidance on Selected Items of Cost for Recipients.

What pass-through requirements get passed through to subrecipients when states award grants?

There are no differences in how Federal requirements flow down to subrecipients under pass-through grants to states and other types of recipients. All pass-through entities are subject to the flow down provisions in 2 CFR 200.332.

Are individual consultants working under their own business entity (like an LLC) always under procurement or could they potentially be a subrecipient?

Individual consultants are not eligible subrecipients (except in extremely rare cases) and their services must be procured under the 2 CFR 200.319 and 2 CFR 200.320 procurement procedures and are subject to the 2 CFR 1500.10 consultant fee cap. The only exception would be a situation described in Appendix A to the EPA Subaward Policy in which a recipient provided the consultant with a subaward for improvements to a building the consultant owns to reduce pollution (e.g., a subaward to install solar technology or energy efficiency upgrades). These types of improvements, however, are typically funded as participant support cost subsidies or rebates under 2 CFR 1500.1 and the EPA Guidance on Participant Support Costs.

Can you pay a contractor, then ask for reimbursement?

Yes.

Can subrecipients receive services from for-profit companies and/or individual consultants? For example, a company that prints fliers or a graphic designer.

Yes, as long as those services are competitively procured consistent with all applicable statutory and/or regulatory requirements.

Can non-working hours that are charging only 50% of their time to the EPA award, for leave, etc., be prorated to be allocated to the EPA award?

Yes. Fringe benefits may be allocated to an EPA award in proportion to the amount of time the employee works on the EPA funded project. Refer to 2 CFR 200.431(d).

We have participant support costs that will be administered via a subaward and were budgeted within the subaward amount. Would the subawardee need to follow these participant support costs guidelines for documenting these costs?

Yes.

When the speaker said that states do not have to follow the timely disbursement of funds rules, does that include county/city governments or just state governments?

Just state governments as provided in 2 CFR 200.305(a). County/city governments are covered by 2 CFR 200.305(b) and EPA’s General Term and Condition, Automated Standard Application Payments (ASAP) and Proper Payment Draw Down.

We use paper checks. I am concerned about drawdowns and the 5-day rule. Who to contact to get that exception?

Contact the Grant Specialist for the agreement and work with the GS to submit an “undue burden” exception request to the Grants Management Officer. Refer to EPA’s General Term and Condition, Automated Standard Application Payments (ASAP) and Proper Payment Draw Down.

Our non-profit is staffed by a for-profit firm. The competitive bid process for that contract occurred over 10 years ago. Would our non-profit have to open a competitive RFP before using the EPA grant to pay for these contractual staffing costs?

Yes. A bidding process that took place 10 years ago is “too stale” and beyond the 5-year window for using existing contracts described in EPA’s Best Practice Guide for Procuring Services, Supplies, and Equipment Under EPA Assistance Agreements in section 3. Long Term Contracts. Additionally, for the procurement to comply with the full and open competition requirements in the 2 CFR Part 200 Procurement Standards, no one from the for-profit consulting firm can be involved in the development of the RFP, the evaluation of offers, the selection of the contractor, and the management of the contract. For more information, refer to 2 CFR 200.318(c), 2 CFR 200.319, 2 CFR 200.320, and EPA’s Best Practice Guide for Procuring Services, Supplies, and Equipment Under EPA Assistance Agreements.

Is local preference allowed for non-tribal entities?

It depends on which version of 2 CFR Part 200 applies. For grants awarded prior to October 1, 2024, consistent with the version of 2 CFR 200.319(c) in effect prior to that date, both tribal entities and non-tribal entities must conduct procurements in a manner that prohibits the use of statutorily or administratively imposed state, local, or tribal geographical preferences in the evaluation of bids or proposals, except in those cases where applicable federal statutes expressly mandate or encourage geographic preference. Additionally, consistent with version of 2 CFR 200.319(c) in effect prior to October 1, 2024, “When contracting for architectural and engineering (A/E) services, geographic location may be a selection criterion provided its application leaves an appropriate number of qualified firms, given the nature and size of the project, to compete for the contract.”

The prohibition on using geographic preference as an evaluation factor will be removed for grants awarded on or after October 1, 2024. EPA may provide additional information on this subject at a later date.

Can you elaborate on § 200.320 Methods of Procurement? Is the micro-purchase threshold $50,000 or $10,000?

Consistent with the definition of micro-purchase threshold in 2 CFR 200.1 and under 2 CFR 200.320(a)(1), the micro-purchase threshold is generally $10,000 for most non-federal entities. However, some non-federal entities may have a higher threshold than $10,000 (to include up to $50,000 or higher) consistent with the requirements in 2 CFR 200.320(a)(iv), (v).

Would the use of a purchasing co-op count as fulfilling the competitive procurement requirement?

Yes, if the goods and services are purchased competitively. The federal procurement standards at 2 CFR 200.318(e) encourage the use of cooperative purchasing where appropriate. Note that in addition to complying with competitive procurement requirements in 2 CFR Part 200 the contracting process must adhere to EPA’s 40 CFR Part 33 Disadvantaged Business Enterprise Rule and applicable statutory requirements such as Davis-Bacon Related Acts and Build America, Buy America.

How does the requirement for disbursement of EPA funds within 5 business days of drawdown apply to a recipient that does not have electronic payment abilities?

Contact the Grant Specialist for the agreement and work with the Grant Specialist to submit an “undue burden” exception request to the Grants Management Officer. Refer to EPA’s General Term and Condition, Automated Standard Application Payments (ASAP) and Proper Payment Draw Down.

If a scope of work is not funded by EPA funds, do procurement regulations apply?

It depends. If you are intending to use this work toward a required cost-share/match requirement, contractors must be procured in compliance with all applicable federal requirements. Otherwise, no, federal procurement standards (including those in 2 CFR Part 200), apply to work that is not funded by EPA funds. However, please be aware that statutory requirements (such as Davis-Bacon; Build America, Buy America; and American Iron and Steel) may apply to the non-federally funded work that is a part of a Federally funded project. Recipients should contact their EPA Project Office for details.

For time and materials contracts, which tend to be common with some grantees, what considerations would be looked at in determining no other contracting instruments were available?

Consistent with 2 CFR 200.318(j), the determination that “no other contracting instrument” is available is up to the grantee; however, in certain circumstances, EPA may look at what led the grantee to the determination that “no other contracting instrument” is available (e.g., How do you know no other contracting instrument is available? Is the determination based on market research?). In addition, the grantee may only utilize this contract type “if the contract includes a ceiling price that the contractor exceeds at its own risk.” And, further, “the non-Federal entity awarding such a contract must assert a high degree of oversight in order to obtain reasonable assurance that the contractor is using efficient methods and effective cost controls.”

If contractor's name cannot be included in the proposal, does that restriction also apply to subawardee in the proposal?

No. Applicants can name eligible subrecipients (which rarely include for-profit firms and never include individual consultants) in their proposals. Note, however, that EPA does not prohibit applicants from naming contractors in their proposals as long as the contractor has been selected in compliance with the competitive procurement requirements in 2 CFR Parts 200 and 1500. EPA does not recommend or encourage this practice; however, it is not prohibited.

You distinguished between “states” and “universities” with regard to following state procurement policies and procedures under 2 CFR 200.317. What about “state universities?”

The answer depends on two factors. 1) whether the “state university” is actually an agency or instrumentality of the state government under state law and, 2) whether the state university used the state purchasing system or the university’s own system. If the state university is an agency or instrumentality of the state government and the transaction at issue was handled by the state purchasing system, then 2 CFR 200.317 applies. Otherwise, the state university is subject to the Federal competition rules in 2 CFR 200.318 through 2 CFR 200.320.

When EPA policies say, “EPA approval,” who at EPA can approve? Is it the Project Officer?

The Grants Management Officer or Award Official. Project Officers cannot approve financial transactions.

Any advice on how to ensure compliance with Build America Buy America (BABA) requirements? Aside from putting it into the contracts, is there anything grantee can/should do to monitor the compliance with this?

Information on Build America, Buy America requirements is available on EPA’s Build America, Buy America website. Grantees should obtain certifications from vendors that the items they are procuring comply with BABA.

For the “Selected Items of Cost,” in addition to providing a robust budget justification, do you recommend requesting explicit approval?

The EPA Award Official’s approval of a budget justification that provides a precise description of the item of cost requiring prior approval is sufficient. Refer to Section I B. “Prior Approval” of the Interim General Budget Development Guidance for Applicants and Recipients of EPA Financial Assistance.

When are joint Request for Proposals (RFPs) / competitive procurements appropriate?

The grantee is responsible for deciding whether a joint solicitation is appropriate for their procurement. However, 2 CFR 200.318(e) does indicate some circumstances where a joint solicitation may be appropriate, i.e., “the non-Federal entity is encouraged to enter into state and local intergovernmental agreements or inter-entity agreements where appropriate for procurement or use of common or shared goods and services.”

If the prime grant recipient and a subawardee need the same services related to the grant, is it appropriate to run a joint competitive procurement process for efficiency?

Yes.

If my organization has a micro-purchase threshold of $50,000, do we just need to ensure our audit has no findings and a clear procurement policy? (2 CFR 200.320) Or must we get our cognizant agency's approval?

No adverse audit findings are sufficient to establish a $50,000 micro-purchase threshold as provided in 2 CFR 200.320(a)(1)(iv)(A).

We received a multi-year grant and intend to contract with a for-profit project partner who will help us implement a training program for less than $10K per year for 3 years. Does that keep us under the competition threshold?

No. As provided in 2 CFR 200.320(a)(1)(i) micro-purchases must be equitably distributed among qualified sources to the extent practicable. There are many firms and individual consultants who have expertise in implementing training programs.

Do EPA Marking and Branding Standards apply to public relations/participant support expenditures?

No.

How do you recommend incorporating required cost match for contracted services?

The recipient’s financial records must differentiate between amounts the contractor is paid with EPA funds and amounts the contractor is paid with non-Federal funds or the value of goods/services the contractor donates to the project. Refer to 2 CFR 200.306.

Should cost match requirements be covered in a Memorandum of Understanding?

EPA does not prescribe a particular form for documenting cost share contributions.

If the grantee hires a construction manager for an EPA grant funded project but the construction manager's scope is NOT grant funded, does the construction manager's contract need to be competitively bid?

The procurement standards in 2 CFR Part 200 and 1500 (and EPA’s Disadvantaged Business Enterprise (DBE) Rule at 40 CFR Part 33) do not apply to contractual services that are not funded with EPA financial assistance. However, state and/or local law may speak to procurement requirements. Additionally, while the federal procurement standards do not apply, federal requirements such as Build America, Buy America and/or Davis-Bacon might.

Regarding the consultant fee cap, what about consultants who are not quasi-employees, like technical experts/sole practitioners? We are in a high cost of living area, and the consultant fee cap applying to individuals and not firms seem inequitable.

The consultant fee cap described at 2 CFR 1500.10 is statutory, and EPA cannot waive or adjust the cap although the Level IV Executive Level rate does have a geographic cost of living component. The cap does apply to the services of individual technical experts.

When did the Consultant Fee Cap statutory requirement become effective? Was it upon the last EPA reauthorization?

The Consultant Fee Cap was enacted in 2009 in Public Law 111-8 through a permanent restriction on the use of EPA’s appropriated funds.

Would a nonprofit organization whose mission is focused on providing programming, services, and regranting dollars to native communities fall under the tribal procurement exception?

No. The nonprofit must follow the Procurement Standards in 2 CFR Part 200. Note that our answer presumes that the nonprofit organization is not an inter-tribal consortium as defined in 40 CFR 35.504.

Can you please clarify what the “grant statute” refers to when referenced in this webinar?

The grant statute is the federal law that authorizes the grant program.

Is there any relationship besides a subrecipient or procurement relationship where a pass-through entity can give funds to another entity?

Pass-through entities may be able to provide participant support cost payments to program participants. Examples include stipends or travel support to enable individuals to participate in community meetings or subsidies/rebates to encourage businesses to participate in environmental stewardship programs. Refer to the EPA Guidance on Participant Support Costs.

Where Federal and State grant funds are used, does Davis Bacon and Related Acts (DBRA) apply to the whole project or just the portion the federal funds pay for?

Any contract for construction in excess of $2,000 on a project funded in whole or in part with federal assistance under the Clean Air Act (CAA) must comply with DBRA requirements. Note that even when only non-construction elements of a project receive CAA assistance, the construction activities on that project become subject to the DBRA. A “project” for purposes of DBRA application consists of all activities needed to undertake and complete the project, regardless of the number of discrete contracts or financial awards involved so long as all are sufficiently closely related in purpose, time, and place.

Do we have to go through the new applicant/recipient trainings before we apply?

No, however it would be most beneficial to you if you complete it before applying. It will help you with your application. It will also be required should you be offered an award.

I work for a pass-through entity, are our subrecipients required to take these new applicant/recipient trainings?

The training requirement is only for direct EPA grant applicants/recipients.

Can an applicant name a consultant/partner upfront in the grant application, i.e., a consultant that they want to support them, should they win the grant?

Please refer to the Notice of Funding Opportunity (NOFO) for requirements specific to that grant opportunity. However, please note that if you name a contractor in your grant application, you should demonstrate that you complied with proper procurement procedures. If you do not demonstrate this or have not already gone through proper procurement procedures to select them, it may impact EPA's ability to award the grant or deem the application ineligible. Please also see the Contracts and Subawards clause in our EPA Solicitation Clauses.

We are writing grants for various clients. Can we use our Grants.gov for their applications?

If the applicant organization provides you with the proper roles in Grants.gov, you should be able to apply on behalf of any organization that provides you with those roles. However, please make sure that when you submit the application the Unique Entity Identifier (UEI) and applicant organization name match. Applying on behalf of multiple organizations sometimes leads to confusion and has led to applications being deemed ineligible due to the wrong UEI or applicant organization being listed.

We are a subrecipient now, but will apply to be a prime recipient. How will you know we completed the required trainings?

After the completion of each training, you should get a certificate of completion which you can save for your records. We compile completions automatically within the Agency.

You said doing the new applicant/recipient training would help you with your application. Do you mean help you fill it out, or do you actually score people higher if they had already taken the training already?

The trainings cover various topics, such as applying for a grant, managing a grant, and how to develop a budget, which will provide you with information that may help you prepare a more effective and responsive application. While taking the training will not result in an automatic increase in score, the knowledge you gain from the trainings may improve the quality of your application, which may result in a higher score.

If you are having technical difficulties with Grants.gov and try submitting the application via email just in case, what email would you send that to? The one available in Section VII?

Please review the Notice of Funding Opportunity (NOFO) carefully, including instructions on what to do when experiencing technical difficulties during application submission which are located throughout the NOFO. If you anticipate difficulties or are experiencing them, follow the instructions and reach out to the Agency contact listed in Section VII as soon as possible.

What are your thoughts on using Chat GPT for writing grants? Can it be used merely to clean up wording?

There is no legal prohibition to an applicant using Artificial Intelligence (AI) to write their grant application. However, applicants must keep in mind that whatever they submit they are proposing to do regardless of whether they wrote the proposal or AI wrote the proposal. The applicant is submitting the proposal, so the applicant is standing behind what is written.

Do you ever consider not awarding the same organization more than once to give other communities a chance?

Yes. Some programs put in place a "new applicant set-aside" or include a selection factor that takes into account whether the applicant has received a grant under the program in the past. This allows the program to select applications from new applicants, even if they are not the highest ranked application.

If a consultant prepares a grant application for an applicant, are they precluded from bidding on the work funded by the grant?

No. EPA does not prohibit consultants who prepare grant applications from competing for contracts that will be funded under the grant as long as the competition is conducted fairly and openly. The contractor may not assist with drafting specifications, requirements, statements of work, or invitations for bids or requests for proposals and also be allowed to compete for the services or products that will be procured as indicated in 2 CFR § 200.319(b). This practice violates 2 CFR § 200.319(b) and may result in EPA disallowing any costs for the tainted contract that are charged to the grant. Non-competitive contracts with consulting firms on retainers are another example of an unfair competitive practice as indicated at 2 CFR § 200.319(b)(4). Additionally, EPA will not accept sole source justifications for procurement contracts for services such as consulting, engineering, construction services, or information technology support that are available in the commercial marketplace.

You mentioned two new trainings at the beginning of the presentation. Are they mandatory for all applicants or recommended?

They are required for new applicants/recipients (entities that have not had any EPA grants since October 1, 2014).

Does the contractor and consultant procurement requirement also apply to any subawardee? In short, do not mention a subawardee name in the proposal unless that subawardee is selected based on the procurement procedure, right?

Please review the specific Notice of Funding Opportunity (NOFO), or contact the Section VII point of contact in the NOFO, for subaward requirements specific to that grant opportunity. However, subrecipients are not generally required to be competitively selected. You can learn more about making subawards under EPA grants by reviewing GPI 16-01: EPA Subaward Policy for EPA Assistance Agreement Recipients. Please also see the Contracts and Subawards clause in our EPA Solicitation Clauses.

Can a community applying for EPA grant funding initiate a request for proposals for the type of entities that may be utilized in deployment of a grant infrastructure, equipment, or vehicles?

Yes, applicants may solicit proposals and applications from partners and/or contractors when applying for grant awards.

How do we get a copy of evaluation of my submitted application? I tried through FOIA, it didn't work.

Applicants have the opportunity to request a debriefing within 15 days of being notified that they are ineligible or were not selected. See the Debriefings and Disputes clauses located in our EPA Solicitation Clauses, which are referenced in every Notice of Funding Opportunity.

How are we notified if we are selected for an award? Is it an email?

In most cases, you will receive an email from the Program Office. However, this may vary depending on the program. Check the applicable Notice of Funding Opportunity, which should contain details on how notification is made in Section VI.

I've had conflicting responses from Thriving Communities Technical Assistance Centers (TCTACs) regarding what kind of technical grant assistance they can provide. Please clarify.

This issue should be addressed directly by the TCTAC Program Office. You can find EPA contacts on the Environmental Justice Thriving Communities Technical Assistance Centers Program website.

EPA Form 4700-4, Pre-award Compliance Review Report for All Applicants and Recipients Requesting EPA Financial Assistance OMB (Control No 2030-0020) states the approval expires on 06/30/2024. Will this form be acceptable?

Yes. This form is in the final stages of being approved with no changes. Its expiration date will be updated soon to confirm its viability through 2027. If the new form is not approved by the expiration date, the expired form will be able to be used until the new form is available.

Would it be a conflict of interest for people involved with a non-profit organization (unpaid in their personal capacity) who are also involved in subaward decision making, to include the related non-profit?

We assume that this question relates to whether an individual who is involved with a nonprofit organization as a volunteer, unpaid board member or another unpaid advisory capacity can participate in the selection process for competitive subaward funding that the nonprofit organization is participating in as a competitor pursuant to EPA's "Grantmaker" award for the Environmental and Climate Justice grant program. The answer to that question is yes, it would be an impermissible conflict of interest for the individual to participate in a competitive selection process when the individual is actively involved in the activities of one of the competing organizations. This would, at a minimum, create the appearance of unfairness towards other competitors. EPA's Subaward Policy provides in Section 10.0 that "… pass-through entities may choose to select subrecipients competitively provided this practice is consistent with applicable statutes, regulations and the terms of their EPA financial assistance agreement." The terms of EPA's Grantmaker awards will contain terms and conditions precluding the practice described in the question.

Can a public university be a subrecipient if they are providing analytical/research services?

Yes. Refer to Appendix A of EPA's Subaward Policy.

Can you clarify that a subrecipient does have to have a Unique Entity Identifier (UEI) and be registered on SAM.gov if they receive a subaward? Don't they have to register on SAM.gov to get the UEI?

Subrecipients are not required to complete full System for Award Management (SAM) registration to obtain a UEI. Information regarding obtaining a UEI is available on SAM.gov: https://sam.gov/content/home.

If we send samples to a university to complete testing and pay them a set fee per sample, why is that considered a subaward?

Universities typically do not meet the test in 2 CFR 200.331(b) for being considered a procurement contractor because they do not sell goods and services in the commercial marketplace under terms that allow them to make a profit. That is the basis for EPA's determination in Appendix A of the EPA Subaward Policy that transactions between recipients and Institutions of Higher Education are with very few exceptions subawards rather than procurement contracts. Fixed amount subawards could be structured to pay a university for samples on a unit price basis. Additionally, EPA provides recipients with the flexibility to use non-competitive contract vehicles to make subawards in fixed amounts less than the $10,000 micro-purchase threshold in order to minimize the administrative burdens associated with complying with the extensive requirements in 2 CFR 200.332. Note that if a recipient (other than a state agency) were to use procurement procedures to acquire sampling services from a university, competition would be required for contracts over the micro-purchase threshold and that micro-purchases would need to be equitably distributed among qualified sources as required by 2 CFR 200.320. As provided in 2 CFR 200.317, EPA defers to state policies and procedures for competition for procurement contracts. Additionally, if under state laws and policies a state agency is authorized to transfer funds to a state university to acquire sampling services, EPA would defer to the state process for such transfers as well as how the state characterizes the transaction for accounting purposes.

Where would an intergovernmental agreement fall between a state agency and a tribal nation?

Either a subaward or an inter-entity agreement for procurement of common services depending on the activities covered by the agreement. As stated in Appendix A to the EPA Subaward Policy, "EPA has determined that transactions: 1. Between legally distinct units of government (e.g., a state providing funds to a local government) will in almost all cases be either subawards or intergovernmental agreements under 2 CFR 200.318(e) rather than procurement contracts since governmental units do not provide services on commercial terms." Under 2 CFR 200.318(e), two or more recipients of EPA grant funds may establish "… agreements where appropriate for procurement or use of common or shared goods and services. Competition requirements will be met with documented procurement actions using strategic sourcing, shared services, and other similar procurement arrangements."

Can, or should, we include budget outlines for the subawarded community-based organizations (CBO) and collaborative pass-through entities? We have them as a line item in the overall budget but were wondering if any additional details would be needed.

We presume based on the terminology that this question relates to the "Grantmaker" competition (FUNDING OPPORTUNITY NO: EPA-R-OEJECR-OCS-23-03) for EPA's Clean Air Act Section 138 Environmental and Climate Justice Block grant program. The Request for Applications for that competition only provides that a signed letter of commitment from the subrecipient of the subaward necessary to establish that the "statutory" partnership with a Community Based Nonprofit Organization is required to document the partnership. There is no requirement that the amount of the subaward for the CBO be specified. For the statutory partnership subaward as well as for the collaborative pass-through subawards the following passage from the Interim General Budget Development Guidance for Applicants and Recipients of EPA Financial Assistance (p. 38) is instructive: 

As provided by Section 8.0(a) of the Subaward Policy recipients must provide the aggregate amount they propose to allocate to subawards as a separate line item in the "Other" category... Pass-through entities must provide a description of the types of activities to be supported with subawards in either the budget narrative or the scope of work to comply with the prior approval provision of 2 CFR 200.308(c)(1)(vi)... The Subaward Policy does not require that pass-through entities identify subrecipients or the amount of anticipated funding for specific subawards although some do so voluntarily particularly for competitive proposals... Under 2 CFR 200.308(c)(1)(vi) recipients must obtain prior EPA approval for post-award for subawards that are not described in the scope of work for the agreement and budgeted for in the aggregate line item in the recipient's budget narrative. EPA's Recipient Subaward Frequent Questions contains additional guidance on when EPA approval is required for changes to a pass-through entity's subaward plans.

Does the total amount of the EPA award have to be listed in the subaward agreement (in addition to the amount of the subaward)?

No, you need to include:

• Amount of EPA Funds Obligated under the initial subaward;
• Total or cumulative amount of EPA funds obligated to the subrecipient under the initial subaward plus any subsequent funded amendments; and
• Total amount of the EPA funds committed to the subrecipient by the pass-through entity.

Do we have the right to disqualify institutions from our competition if they have not submitted reports or other required information in previous competitions?

Yes. Under 2 CFR 200.332(b) pass-through entities must:

(1) The subrecipient's prior experience with the same or similar subawards; Pass-through entities may also evaluate and score applicants for competitive subawards based on these factors and others relating to past performance. If the pass-through entity determines that a potential subrecipient poses a risk of noncompliance, then they can disqualify the application based on a low score for past performance.

For some awardees, like IHEs (Institution of Higher Education), personnel effort is assigned as a percentage (and not hourly). Would that raise a concern?

Our review of 2 CFR 200.430((b)(2) and (i)(1)(iii) did not provide a basis for determining that Institutions of Higher Education can charge Federal grants for personnel costs using formulas derived from budget estimates (percentages of time) as opposed to actual time spent working on the Federally funded project. There are some unique proportional calculations of how salary of academic personnel is determined for charging purposes based on the "Institutional Base Salary" and "Incidental Work" concepts. However, the rule in 2 CFR 430(i)(1)(viii) is that "[B]udget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards, but may [only] be used for interim accounting purposes ..." subject to after the fact adjustment applies to IHEs. You may be referring to the 2 CFR 200.430(i)(1)(ix) and (x) which provide:

(x) It is recognized that teaching, research, service, and administration are often inextricably intermingled in an academic setting. When recording salaries and wages charged to Federal awards for IHEs, a precise assessment of factors that contribute to costs is therefore not always feasible, nor is it expected.

These provisions, however, do not permit an IHE to charge employee time to Federal grants without regard to the actual time spent carrying out the grant funded activity.

Where do we find additional guidance on the appropriate way to ensure compliance with the list of federal assurances?

EPA provides additional guidance on compliance with cross-cutting requirements that typically apply to EPA funding such as the Davis Bacon Related Acts and Build America Buy America in the terms and conditions of our financial assistance agreements. as well as posted frequent questions.

Do you allow virtual inspections to verify materials listed on the drawdowns or invoice submittals or do you require onsite inspections?

Virtual inspections are permitted.

Can a federal agency be a subrecipient?

Yes. Below is the relevant provision, Subsection 7.0(b) of the EPA Subaward Policy:

Are required EPA reporting guidelines required to be passed down to subrecipients?

Yes. As required by 2 CFR 200.332(b), which is implemented in EPA's General Terms and Conditions, subaward agreements must specify "[A]ll requirements imposed by the pass-through entity on the subrecipient so that the Federal award is used in accordance with Federal statutes, regulations and the terms and conditions of the Federal award."

What is EPA’s definition of a 'consultant'?

For the purposes of the cap on fees paid to individual consultants under 2 CFR 1500.10, consultant services are provided by "… designated individuals with specialized skills who are paid at a daily or hourly rate."

Can you go into more detail on the exceptions to funding needing to be disbursed within 5 days? This is difficult for large municipalities.

As provided in EPA's "Proper Payment Drawdown" General Term and Condition:

f. If the recipient believes that there are extraordinary circumstances that prevent it from complying with the 5-business day disbursement requirement throughout the performance period of this agreement, recipients may request an exception to the requirement by following the procedures specified in RAIN-2018-G06-R. EPA will grant exceptions to the 5-business day disbursement requirement only if the recipient demonstrates that compliance places an undue administrative or financial management burden or EPA determines that granting the exception is in the public interest.

Should a subgrantee's exclusions/debarment be checked in SAM.gov by the pass-through agency with every grant payment, or just at the initial subaward agreement?

The requirement for checking the SAM.gov Excluded Parties list applies when the pass-through entity enters into or renew the subaward agreement (the lower covered transaction referred to in 2 CFR 180.300(a)). Pass-through entities do not have to check the Excluded Parties list before making payments to subrecipients.

Do subawardees need to keep their SAM.gov account active if they only need a UEI (Unique Entity Identifier), or is that just for full registrations?

Subrecipients only need to have a UEI.

If a subawardee is a nonprofit university and it has regular staffers who are contractors, does that nonprofit university need to outsource and compete work under the subaward or can they noncompetitively contract with their regular staffers?

The "regular staffers" referred to in this question are contract consultants. Transactions with them must comply with the competitive procurement requirements in 2 CFR Parts 200 and 1500 (including the consultant fee cap) for the costs to be allowable under EPA financial assistance agreements.

Does EPA have preference on level of financial review of subawards, i.e., two years of audit history for non-profits? How would that apply to Tribal entities?

Reproduced below are the applicable provisions of 2 CFR 200.332 regarding financial monitoring and auditing requirements for subrecipients. These requirements apply to all types of Non-Federal entities, including Indian Tribes.

(d) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Pass-through entity monitoring of the subrecipient must include:

(1) Reviewing financial and performance reports required by the pass-through entity.

(2) Following-up and ensuring that the subrecipient takes timely and appropriate action on all deficiencies pertaining to the Federal award provided to the subrecipient from the pass-through entity detected through audits, on-site reviews, and written confirmation from the subrecipient, highlighting the status of actions planned or taken to address Single Audit findings related to the particular subaward.

(3) Issuing a management decision for applicable audit findings pertaining only to the Federal award provided to the subrecipient from the pass-through entity as required by § 200.521.

(4) The pass-through entity is responsible for resolving audit findings specifically related to the subaward and not responsible for resolving crosscutting findings. If a subrecipient has a current Single Audit report posted in the Federal Audit Clearinghouse and has not otherwise been excluded from receipt of Federal funding (e.g., has been debarred or suspended), the pass-through entity may rely on the subrecipient's cognizant audit agency or cognizant oversight agency to perform audit follow-up and make management decisions related to cross-cutting findings in accordance with section § 200.513(a)(3)(vii). Such reliance does not eliminate the responsibility of the pass-through entity to issue subawards that conform to agency and award-specific requirements, to manage risk through ongoing subaward monitoring, and to monitor the status of the findings that are specifically related to the subaward.

(e) Depending upon the pass-through entity's assessment of risk posed by the subrecipient (as described in paragraph (b) of this section), the following monitoring tools may be useful for the pass-through entity to ensure proper accountability and compliance with program requirements and achievement of performance goals:

(1) Providing subrecipients with training and technical assistance on program-related matters; and

(2) Performing on-site reviews of the subrecipient's program operations;

(3) Arranging for agreed-upon-procedures engagements as described in § 200.425.

(f) Verify that every subrecipient is audited as required by Subpart F of this part when it is expected that the subrecipient's Federal awards expended during the respective fiscal year equaled or exceeded the threshold set forth in § 200.501.

(g) Consider whether the results of the subrecipient's audits, on-site reviews, or other monitoring indicate conditions that necessitate adjustments to the pass-through entity's own records.

If another Federal agency can be a recipient of a subaward from a state agency pass-through grant, could the Federal agency’s time or other funds be used as in-kind match?

No. Match for the Section 319(h) grant program must always come from non-federal funding sources, except where a Federal statute authorizing a program specifically provides Federal funds available for that program can be applied to meet cost share requirements of other Federal programs. See 2 CFR 200.306(b)(5). If the question is asking about when a state agency may decide to use 319 funding in a local watershed effort that might involve collaborating with Natural Resource Conservation Center (NRCS) using Environmental Quality Incentives Program (EQUIP) funds – such as in a Regional Conservation Partnership Program (RCPP), it would still hold that 319 funds would not be considered federal match to RCPP funds, nor would the RCPP funds be considered match under CWA 319. Rather, a project might be considered a co-funded project if it receives funding from both sources.

Does an organization need to accept their award in 21 business days or calendar days?

In general, it's calendar days; however, if that does not allow for enough time to conduct a thorough review and acceptance of the grant, please reach out to your Project Officer and Grant Specialist with any concerns.

Is a draft grant agreement sent to the grantee prior to the final agreement (which is accepted if not communicated within 21 days)? Or is there just one grant agreement sent to the grantee?

Only the final grant agreement is provided, which is why it is important to go through the grant agreement and attachments very carefully.

Does EPA provide help with applying for grants?

EPA does not provide hands-on assistance with applying; however, we have training available to help with applying. There are several online trainings available on the EPA Grants website.

When can we expect to get the Award Document?

It's going to depend on various factors, but generally within 2 to 6 months.

How does Environmental Justice (EJ) fall into grants? What should we be looking for as far as EJ requirements?

Environmental Justice is a priority for the EPA, with approximately $100 million available in grant funding. Please check out the EPA's Environmental Justice page for more information.

How do we find out who our EPA Disputes Decision Official is?

The Dispute Decision Official is identified in 2 CFR 1500 Subpart E. However, please note that this Dispute Decision Official does not review disputes related to grants competition decisions; the Grants Competition Dispute Decision Official resolves grants competition disputes. In order to file a dispute under a grants competition, applicants must first request a debriefing within the 15 days of receiving the notification that they are not selected for award. The Grants Competition Disputes Decision Official will be identified during the debriefing. Refer to Grants Competition Dispute Resolution Procedures for more information on disputes related to grants competitions.

So any costs incurred after the date we are told we have been awarded the grant are allowable?

Any allowable costs (funds used for allowable grant activities) incurred within the Project and Budget Period on the Grant Award document are allowable. Costs incurred prior to the start date of the Project and Budget period are considered unallowable. The grant would need to be amended to change the Project and Budget period start date in order for those costs to be allowable.

Is there a match requirement, and if so, is there a waiver request process?

Match requirements are dependent on each program. Some have match requirements required by statute and the program would not have the authority to provide waivers. Some programs have chosen to require match, and in those cases, waivers may be an option.

Does in-kind support count towards the match requirement?

It generally does, but that should be a conversation you have with your Project Officer and Grant Specialist during the planning phase.

Can you please explain the 90 pre-start date allowable costs?

Essentially, you just need to make sure your Project Officer and Grant Specialist are aware that you plan to incur pre-award costs, so that they can ensure they are captured in the grant award's Project and Budget period. If the Project Officer and Grant Specialist are unaware that you plan to incur costs prior to the Award Date, your incurred pre-award costs may be unallowable, because they must be incurred on or after the Project and Budget period start date.

Can required matching funds be incurred prior to the award date?

Grant costs must be incurred within the Project/Budget period. If an applicant would like to incur costs (including costs that will be paid for with matching funds) on a grant prior to the award date, the applicant must ensure that the costs are incurred on or after the Project Start Date and Budget Start Date. The applicant should contact the EPA Project Officer and Grant Specialist to ensure these dates will be included in the award document. Applicants may be required to justify incurring pre-award costs.

What if you come in under budget for the amount of the grant you applied for?

Check with your Project Officer and Grant Specialist. You may be able to use the funding for additional work that is within the scope of your grant. Otherwise, leftover funding will be returned to the EPA to be made available for future grants.

Regarding grant funds to be used for incurred costs/actual costs, can those costs be paid for something that will occur in the future (for example, paying to reserve a conference center for a meeting to be held in the future)?

As long as documentation is provided (most likely a confirmation and/or receipt in this case), and the conference is an allowable cost under the grant, it should be fine to incur costs for future occurrences. Make sure to document the transaction appropriately.

What happens if you fail to turn in your progress reports timely? Is the grant taken away?

A grant will not be terminated due to overdue reports. EPA will work with the grantee to resolve the issue at the lowest level possible. EPA can and will terminate grants; however, that is not the first solution, unless we suspect waste, fraud, or abuse. There are remedies EPA can take when compliance issues arise, although the remedies will generally match the severity of the issues.

How long are records required to be held?

Record retention requirements depend on each program and should be covered in the grant Terms and Conditions. It will be a minimum of 3 years from closeout or audit resolution, whichever is later, but some can be much longer.

Is the grant project file a file we keep on our computers, or is this a specific system EPA uses?

You may use whatever system your entity uses, assuming that your entity's system is sufficient. Some use paper files, and others are electronic.

Does DBE/WBE/MBE apply to professional services or just to the actual construction?

Disadvantaged Business Enterprise (DBE)/Women-Owned Business Enterprise (WBE), and Minority-owned Business Enterprise (MBE) requirements apply to services, in addition to supplies, equipment, and construction.

If we receive a grant agreement and the General Terms and Conditions 10/1/22 are in place at the time...if a 10/1/23 version is issued during the project term, do we have to follow the 10/1/23 Terms/Conditions?

You will have to follow the version of the Terms and Conditions that was applicable when your funding was awarded.

Are there any sample progress reports or preferred templates available?

I would recommend asking you Project Officer for examples. Please note that unless approved by the Office of Management and Budget, EPA cannot require you to fill out a specific template, however your Project Officer may be able to share some examples with you.

For MBE/WBE items, is this an automatic requirement for all projects over $250,0000? How does this apply to a rural, isolated area with severely limited contracting options? We are on an island in southeast Alaska.

This is a requirement if more than $250,000 is budgeted for procuring supplies, equipment, construction, or services. The grant itself can be over $250,000 without triggering MBE/WBE requirements.

Do consultants to the project need to provide timesheets or just grantee employees?

Check your award for a Term and Condition that addresses "Consultants". You will need a record of the consultant's charges in order for it to be considered an allowable cost; however, it may not need to be in the form of a time sheet. An invoice may be allowable, but always check your Terms and Conditions.

What is involved in a Title VI Self Review or Self Assessment?

Generally, from an EPA applicant/recipient perspective, it is ensuring that the applicant/recipient is complying with the federal civil rights laws that EPA enforces (Title VI, Section 504, Age Discrimination Act, Title IX, and Sec.13 of the FCWPAA), as well as EPA's implementing regulations at 40 CFR Parts 5 and 7. Please see also Section 39 of the EPA Grant Terms and Conditions and Form 4700-4. The Form 4700-4 covers more of the "procedural aspects" of civil rights compliance (e.g., notice, grievance procedures, etc.), and under the laws, a recipient must comply with civil rights laws in their programs and activities, as well (e.g., permitting). So, a self-audit would ensure that an applicant/recipient is meeting those procedural elements but also evaluating its programs and activities to ensure compliance with civil rights laws in decision-making and actions.

Is there a grantee portal that EPA uses to manage the grant and submit reports?

Generally, this will be done via email, however, some EPA offices or programs may have portals established. Your grant's Terms and Conditions will provide instructions on how to submit reports.

Could you please clarify on non-working hours (sick/vacation/holiday) being prorated among all cost centers or charged to the general ledger?

In general, if an employee works 50% of the time on the EPA grant and 50% of the time on non-grant activities, we expect that the EPA grant covers 50% of the vacations, health insurance, and other fringe benefits. The grantee should not charge the EPA grant for 100% of an employee's benefits if the employee is not spending 100% of their time on the EPA grant.

Does the single audit threshold include all grants totaling $750,000 or does a single grant have to be $750,000?

It is a total of $750,000 or more in overall expended Federal funds, during a fiscal year.

When you receive an award, when are the funds available? Is it right away or is there a timeframe for budget clearance?

It's generally immediate once you are set up in the Automated Standard Application for Payments (ASAP) system, but it will depend on whether you are on reimbursement. Please review your grants terms and conditions and contact the financial contact listed in the grant award if you have any additional questions.

How many days/weeks does the grantee have to draw down the first money?

There is no requirement that money be first drawn down by a specific date. However, EPA monitors grants from a financial perspective and if a grantee is not drawing down funding, we are required to contact the grantee to understand why drawdowns are not being made. In some cases, it's perfectly fine (e.g., a grantee only does drawdowns quarterly after balancing their books) but in other cases, it can be an indication that progress is not being made on the grant.

In ASAP, how long do you have to cancel or modify a payment?

Payment is usually made within a day from the request, so the recommendation is to do it as soon as possible. If you need assistance, please reach out to your financial contact listed in your grant Terms and Conditions.

How often can you submit a payment request?

You may submit a payment request as often as you need to but remember that the funds must be expended on allowable costs within five days.

Are non-profits eligible for an EPA grant?

Yes, non-profits are eligible for many (but not all) EPA grant programs.

I inherited a grant from someone who left. Can I still find the original grant notice on Grants.gov?

Grants.gov contains closed grant announcements as well as open ones. If you go to Grants.gov and click on the "Search Grants" tab, you can filter for "Closed" and "Archived" Opportunities on the left of the screen.

What constitutes a subaward?

According to the definitions in 2 CFR 200.1, "Subaward means an award provided by a pass-through entity to a subrecipient for the subrecipient to carry out part of a Federal award received by the pass-through entity. It does not include payments to a contractor or payments to an individual that is a beneficiary of a Federal program. A subaward may be provided through any form of legal agreement, including an agreement that the pass-through entity considers a contract."

Has EPA considered extending the RFP response time? 45-60 days isn't a lot for the amount of information typically required (juggled with normal responsibilities). It's especially challenging for small/ EJ communities.

EPA is sensitive to the fact that applicants need adequate time to prepare quality applications. Please contact the Point of Contact(s) listed in Section VII of the relevant Funding Opportunity Announcement(s) to provide feedback that your organization needs more time. If there is no open funding opportunity currently, you can reach out to the point of contact listed in the Assistance Listing on SAM.gov.

Do you give feedback on grants not approved?

You can request a debriefing within 15 days of being notified that you are not selected or are ineligible, and we highly encourage it. It can help you create a stronger application in the future.

Don't project officers work with grant managers to review application materials? Is that only prohibited for new applicants?

Project Officers and Grants Management Specialists review all grant applications prior to award. Competitive grant applications that are selected for funding undergo this review after the competitive grant process is complete.

Can we apply for the same program or project under different opportunities? We struggle with wanting to include the same programs in different opportunities as we don't know what will be funded.

Yes, applicants may submit the same proposal under more than one NOFO. However, EPA may not make multiple awards to fund the same work in a project. If the same project is selected under more than one NOFO, you will have to work with EPA to determine which program to fund the project under. Also, each NOFO has unique requirements, and the same project may not be eligible or competitive under multiple NOFOs.

Are you always notified if you are not approved for a grant? Who does this come from?

Yes. You will be notified within 15 days of the determination. The notification will likely come from the Point of Contact listed in Section VII of the NOFO. If you have questions about the notification process under a particular funding opportunity, contact the Point of Contact in Section VII.

Could you talk a bit more about the review/scoring process? Who is typically involved? Are scores "normalized" if applications are reviewed by different individuals?

The evaluation process can vary from program to program. NOFOs will describe the evaluation process in Section V. Typically, EPA staff review applications, but it's not uncommon for program offices to use reviewers external to EPA as well. This is typically specified in Section V of the NOFO. Scores from review panels are typically averaged; however, it depends on the program.

Are the EPA Regions required to follow the same feedback responses to applicants as the Washington Office? Especially, if the applicant is not successful after peer review?

All EPA program offices follow the same debriefing and dispute procedures.

Do we have to have audited financials in order to receive a grant?

No. An applicant does not have to have audited financial statements prior to receiving a grant award. However, recipients who are interested in being reimbursed for indirect costs must submit an indirect cost (IDC) proposal to a Federal cognizant agency for review and approval. IDC proposals should be based on audited financial statements. Similarly, recipients who expend more than $750,000 in federal grant funds in a given fiscal year are required to undergo a single audit performed by an independent auditor.

Do you anticipate future funding will support capacity building for the organizations that are performing work within harder-to-reach communities?

Yes.

Are there brochures/pamphlets available to distribute to tribes and other communities that have info on certain grants (BIL related) that we can print out or send via email?

There are no brochures or pamphlets available, However, information about the Infrastructure Investment and Jobs Act (IIJA), also known as the Bipartisan Infrastructure Law (BIL), can be found at the EPA's BIL website and at EPA Funding Announcements from the Bipartisan Infrastructure Law and the Inflation Reduction Act. Also, you can find IIJA-related funding opportunities on Grants.gov by clicking on the Search tab on the homepage, and then selecting "Infrastructure Investment and Jobs Act (IIJA)" from the drop down list under "CATEGORY". You can also sign up to receive email alerts when new IIJA funding opportunities are posted on Grants.gov. 

Please repeat the abbreviation re. BIL vs IRA?

The Infrastructure Investment and Jobs Act (IIJA) is also often referred to as the Bipartisan Infrastructure Law (BIL). IRA is an abbreviation for the Inflation Reduction Act.

Could you please repeat how to identify what is BIL vs IRA via the Opportunity number ID?

Opportunities with Funding Opportunity Numbers beginning with "EPA-I-" include IIJA/BIL funding, and Funding Opportunity Numbers beginning with "EPA-R-" include IRA funding.

How long does it take to receive funding after the award is approved?

Generally, it will take from a few weeks to several months from when a funding award is approved to when funding is able to be drawn down on the grant.

Are grants available to private industry? Or only to government and related agencies?

For-profit organizations are generally not eligible for EPA grant funding. Non-profits; State, tribal, and local governments; interstate agencies; and Institutions of Higher Education are among the common eligible applicant types. To determine whether your organization is eligible for a specific funding opportunity, refer to Section III of the Notice of Funding Opportunity on Grants.gov. To determine whether your organization is generally eligible under a grant program, refer to the Applicant Eligibility section of the Assistance Listing on SAM.gov.

In the eligibility categories, what institution categories would state and public universities fall under?

State and public universities can potentially fit into two categories. First, they are all institutions of higher education (IHE). Second, some State and public universities may qualify as an eligible entity as a State for certain programs. State is often defined in our grant programs using the definition in 2 CFR 200.1. That definition includes instrumentalities of the State as part of the State government for eligibility purposes. In some cases, State or public universities are able to show that they are instrumentalities of the State under State law. In those cases the university is eligible as a State. Note that (1) not all State or public universities are able to demonstrate that they are instrumentalities of a State under State law and those universities are not eligible as part of a State; and (2) there are instances in which an authorizing statute uses a different definition of State and may not allow for a state university to be included.

Would each person in an organization need to register in SAM.gov, or would one registration be enough for the entire organization?

It's one registration per organization, not per person.

Do you have to reapply/renew the Unique Entity Identifier (UEI) every year? One of our subawardees got one this year and said they would have to go through the process annually.

Yes, SAM.gov registration must be renewed annually.

Do you renew the UEI through SAM.gov?

Yes. Go to SAM.gov and click "Renew Entity".

Are all EPA grants on Grants.gov?

All EPA grant funding opportunities are posted on Grants.gov.

Is it okay to wait to draw down until after expenses are paid by us? I usually drawdown quarterly after I submit quarterly reports.

Yes, it is acceptable to draw after expenses are paid.

Can I get Automated Standard Application for Payments (ASAP) access directly from EPA?

Instructions on accessing ASAP are included in the Terms and Conditions of EPA Grant Awards.

So applicants can drawdown 120 days after the end date of the grant, correct?

Yes, the regulations changed on 11/12/2020 to extend the period from 90 to 120 days. Grants awarded prior to 11/12/2020 may fall under the 90-day period. Check your grant Terms and Conditions for instructions if it was awarded prior to 11/12/2020.

Does an organization need a separate ASAP account for each grant?

No, all your grants from EPA will be under one ASAP recipient account.

If I would like Inquiry permissions for ASAP, do I start by asking EPA or our Fiscal Office? What's the process for setting that up?

You will need to start with your Fiscal Office and the point of contact (POC) there for ASAP. That POC can request you be added as a user via ASAP, which will issue you a user ID and password.

My organization already has access set up within ASAP.gov but through the US Department of the Interior - National Park Service. Will we need to do something new for access concerning EPA funds?

Yes, you will need to be enrolled by each federal agency that you have grants with. The process is simple: EPA will enroll your organization and all you need to do is link your banking account to our Agency Location Code, which allows EPA grants to be linked to your bank account for payment.

Can we send the book entry adjustment to EPA if we need to make a correction if drawn against wrong site?

Book entry corrections should be completed within ASAP. It ensures a proper record for audit purposes.

If funds need to be returned to the EPA, how does that process work? Do you use ASAP to send funds back?

You can use ASAP as long as it's been 32 days or less. If it has been longer, you can use Pay.gov or a check.

Are there guidelines on how often we need to draw? We pay our vendors before drawdowns and sometimes only draw twice per year.

There are no guidelines on how often you must draw.

What if we previously had an EPA grant (just ended in Dec 2022) so we have ASAP through EPA – will the new funds show up?

Yes, once awarded, your funds will show up under your existing account. There is no need to sign up for ASAP.

Whom do I contact to delete a prior user and add me in ASAP?

You would contact your organization's point of contact in ASAP to make changes to personnel who access ASAP.

You said you would circle back and elaborate on being able to drawdown on funds 120 days after the grant ends. Please and thank you.

After your budget period ends, your grant will change to Liquidated status in ASAP. This is a notification that your budget period ended, but you can still draw funds for costs incurred during the budget period.

What supporting documentation is required when drawing down and disbursing funds?

Recipients are not required to submit documentation for drawdowns but must keep documentation on file for audits.

How would a temporary federal government shutdown impact the ASAP process and the drawdown/reporting timelines?

It depends on the length and reason for the government shutdown. If the government shuts down due to the budget not passing, recipients will have access to draw funds in ASAP. If the government hits the debt ceiling, recipients may not have access to funds.

If an organization is already enrolled with ASAP and the EPA agency location code, when that organization receives a new grant, are there any other steps necessary prior to accessing funds?

No, we will load your funds under your existing account.

If we need to provide an annual report, is it by 9/30 (FFY) or 1 year from the start of the grant?

It's based on the end date of the budget period. If your grant budget period is 10/1-9/30, your report period will be 10/1 â€" 9/30 and is due within 90 days of the end of the period for annual reports.

Do recipients get a notification reminder to submit the quarterly/annual Federal Financial Report (FFR) or final FFR?

Notifications are sent only for final FFRs.

What does FFR stand for?

Federal Financial Report. There are interim FFRs and a Final FFR which is due within 120 days after the grant ends.

Are interim FFRs required by every grantee, even if not included in the Notice of Award?

Generally, one-year grants do not require interim FFRs, but the regulations say EPA must ask for an interim FFR at least annually. This information will be in the grant Terms and Conditions.

Who do we send FFRs to?

Please send them to the RTPFC at [email protected].

What is the website where we can find the FFR form?

Grant closeout forms, including the FFR, can be found on the EPA Frequent Questions about Closeouts page.

If our approved Indirect Cost increases between the time we completed our application and when we receive the award and the award reflects the lower percent rate. How do we get the percent allowed in our award to be increased to the correct percent?

In order to get your award to reflect the higher Indirect Cost (IDC) rate, it is best to submit an amendment request to your Grants Specialist for review and approval. Keep in mind that even though your IDC rate changed, the total amount of the grant award will not. In order to recoup IDC at the higher rate, it is likely you would have to make adjustments to your overall budget.

What is allowed in the indirect rate?

Indirect costs are costs that are incurred for a common/joint objective. They are not easily identifiable to a specific assistance agreement. Indirect costs benefit the award and other work necessary for the overall operation of the organization. Indirect costs are stated as a percentage of direct costs. Examples of indirect costs are rent, utilities, office supplies, postage, and salaries of executive/general/administrative staff.

What qualifies as "publishing" the policies?

"Publishing" is used to indicate communicating the policies. Organizations should ensure that staff are aware of the policies and any subsequent changes or updates.

Do policies and procedures have to be formally adopted or only formally adopted if that is what is called for in your policies and procedures?

For the purposes of pre-award certification, we are looking to assess the organization's overall operational policies and procedures. These policies and procedures should reflect the actual processes that are used to draw, expend, and document the use of Federal funds. Given that, the policies and procedures that are submitted should be the policies and procedures that your organization practices on a daily basis.

Are electronic timesheets acceptable if the employee has to submit them via the Oracle system?

Absolutely! Electronic timesheets are acceptable.

For an organization applying for its first federal award, is it sufficient to have the policies and procedures drafted and finalized to go into effect upon receipt of an award?

We offer several tools/checklists to help applicants facilitate policy development. Many new recipients do not have written policies and procedures in place prior to the award. The Office of Grants and Debarment (OGD) Compliance Team will work with the recipient to develop written policies.

What are the audit requirements for changes in compensation after approval of the original rates?

Essentially, the change in salary/compensation just has to be documented. The documentation must show the effective date of the new salary/rate and include signed approval by EPA.

Do you have a minimum list of what policies and procedures we need to have?

The policies and procedure that grantees must follow vary by the type of grant and recipient. This overview of policies and procedures may be helpful for you to review.

How are pre-award certification requirements different for small non-profit organizations with budgets <$200k?

Pre-award certification is only required of non-profit organizations who are slated to receive awards greater than $200,000. If your award is less than $200,000, pre-award certification is not required.

Is it true you are required to draw down funds regularly and no more than 90 days should lapse between regular drawdowns to show programmatic capability of your organization?

Drawdowns should be based on actual costs and should not happen regularly if you are not incurring costs regularly. The funds should be disbursed on allowable costs within five days of the drawdown.

There used to be defined 6 good faith efforts. Do these still exist?

This process is currently being revised. Definitions of the six good faith efforts are provided in the EPA training course, Accurately Completing EPA Form 5700-52A: MBE-WBE Utilization Under Federal Grants and Cooperative Agreements.

Is there a recommended place online to find vendors that meet the EPA definition of a qualified Minority Business Enterprise/Women-Owned Business Enterprise (MBE/WBE)?

EPA does not have a directory or list of certified MBE/WBE's at this time. However, EPA recommends checking with the Small Business Administration, U.S. Department of Transportation, or the state in which your organization intends to do business. One possible resource that may be useful is the U.S. Department of Transportation's Table of State DBE Website Links. 

When purchasing equipment for field work, do we need to look up three quotes for each item? For example, we need a field computer and there is only one company that I found that manufactures a field laptop.

A cost versus price analysis and/or lease versus purchase analysis is required for every procurement. Three quotes are ideal. However, in the absence of three quotes, a sole source justification is REQUIRED and must be well documented.

Where can recipients, contractors, and vendors find guidance or forms for subrecipient or subcontractor funding agreements?

The prime recipient is responsible for providing oversight of subrecipients and subcontractors. Subrecipients/subcontractors are subject to the same federal regulations and cost principles as the prime recipient.

What is an example of pre-award costs? Why would someone request these?

Sometimes it may make sense to start on a project before the award date, for example, if there is work on hazardous waste or lead in pipes, it may not make sense to wait until the grant is awarded to get started. However, all pre-award costs must be allowable under the grant and must be included in the budget and work plan, and there is no guarantee that EPA will fund the grant until it has been awarded.

Is EPA required to provide the debrief within a specific timeframe after it's requested?

Not specifically; however, we are required to provide a timely debriefing. Applicants then have the opportunity to file a dispute within 15 days of that debriefing. Generally, Program Offices will be mindful of their current selections and funding availability to determine whether they need to pause awards while the dispute is resolved to be responsive to whatever determination is made.

For EPA competitive grants for private businesses under Inflation Reduction Act (IRA), do companies need to take the steps that are described during this webinar?

Anyone looking to do business with the federal government, including applying for IRA grants, will need to have an active SAM.gov and Grants.gov registration. Section III of any competitive grant announcement will highlight if non-profits or any other entity type are eligible. EPA received funding through IRA to establish new grant programs and existing grant programs.

When do you think IRA grant guidance or Notices of Funding Opportunities (NOFO) will come out?

EPA does not have a specific timeline for when IRA-funded competitive grant programs will be announced.

Can we ask if a project is acceptable for the grant since it would be a yes or no question?

Yes, you can ask if your project is eligible under the Funding Opportunity Announcement. If the Program Office cannot answer your question, they will let you know.

Are Unique Entity Identifiers (UEI) provided to individuals or to entities (e.g., if we work with a university, does the university receive the UEI, or does the Principal Investigator (PI) on the application need a UEI)?

Individuals and organizations can register in SAM.gov to do business with the federal government. The most common are organizations. In the example you described the PI on the application will not have a separate UEI from the organization applying. The grant application form will use the UEI of the organization that is applying. There are instances (e.g., fellowships) where an individual applies directly and will need to register in SAM.gov and will use a separate UEI on the grant application forms.

Does an entire agency need to register on SAM.gov or would the individual departments register? For example, I work for a county. I know that the county has registered through SAM.gov, but I'm not sure if my department needs to register.

There are parent and child relationships with organization registrations in SAM.gov. I would advise checking with your county to see if it is appropriate to use their UEI when applying for grants. While you may be able to use their UEI, you may need to work with the Ebiz point of contact to ensure your department has the applicable roles and responsibilities in Grants.gov to be able to submit applications. Only Authorized Organization Representatives (AOR) can submit applications on behalf of the

Is there a fee to register on SAM.gov or Grants.gov?

No. Registering on SAM.gov and Grants.gov is free.

Do you suggest we register on SAM.gov and Grants.gov now, even if we are not currently applying for a grant, or wait until we are interested in a NOFO/Request for Application (RFA)/Request for Proposal (RFP)?

Yes! That is a best practice that we recommend. Don't wait to register! The open periods are only 45 days, so being already registered will make the process less stressful and put you in a better position to be successful.

I am still confused about the UEI. Would a subrecipient, not a subawardee, need to get a UEI?

Most federal agencies, including EPA, use the term subrecipient and subawardee interchangeably. EPA does not have a direct relationship with subrecipients and therefore does not require them to have an active SAM.gov registration or a UEI. You will need to determine if the prime recipient requires it. If you are planning on doing business directly with EPA or any other federal agency, a SAM.gov registration is required. There is a Federal Service Desk FAQ on the difference between SAM.gov registration and obtaining a UEI.

Do subaward recipients typically need a SAM ID for Federal Funding Accountability and Transparency Act (FFATA) reporting by prime recipients?

EPA does not require subrecipients to have a SAM.gov registration or UEI as we do not have a direct relationship with the subrecipient. The prime recipient may require a subrecipient to be registered in SAM.gov or have a UEI. FSRS.gov reporting is completed by the prime recipient in specific situations (described in detail in our EPA General Terms and Conditions). To my knowledge, FSRS.gov does not require the prime recipient to report the subrecipient's UEI or SAM.gov registration status as that is not a federal requirement.

Can you provide the formula for calculating the cost share amount?

The percentage of cost share will depend on your specific grant award. Your federal share plus recipient share is going to be your total amount of expenses on the award. So for example, if you have a 20% cost share and $80,000 of your grant is federal funds, the formula for calculating the cost share among is: $80,000 federal funds + $20,000 recipient funds = $100,000 total, then multiplied by 20% is $20,000 which is the cost share amount.

If the award is $100,000 with 10% cost share and you have $20,000 program income, does the cost share need to change to match the new grant amount of $120,000?

Cost share is based on federal expenditures, not program income.

How do you know if you have an existing Automatic Standard Application for Payments (ASAP) account? Do all previous reward recipients have an ASAP existing account? Is there a way to check?

To verify ASAP enrollment with any federal agency, contact ASAP at 855-868-0151 and choose option 2 and then option 3.

The ASAP Enrollment Form says, 'Do not drop off with 3rd party.' Isn't all this automated and online? I don't need to drop this form off anywhere, correct?

The ASAP Enrollment Form is generally emailed to the grantee by RTPFC-Grants Financial Specialist; we do not have an online portal for this form. This disclaimer is for when we used to use paper forms. NOTE: We are working to implement an online fillable form that can be completed and submitted to us directly (without the grantee downloading it).

If the recipient responds promptly for each step of the ASAP enrollment process, how long will the process take?

A grantee's Point of Contact (POC) can complete all of the six enrollment steps in the same day. NOTE: Each step has a 45-day window. If the 45-day window is exceeded on any step, ASAP will delete the enrollment and the grantee's POC must start over again by sending RTPFC-Grants a new ASAP enrollment form. After all the enrollment steps are complete, the Fiscal Bureau Services conducts a thorough financial check on the POC's organization that can take 6-10 business days to complete. After the financial check is complete, RTPFC-Grants will make the funds available the next business day.

Are there guides and checklists for recipients to make sure we don't miss important deadlines?

The Terms and Conditions of your grant should outline reporting dates. All deadlines and details for ASAP enrollment can be found in the ASAP.gov help forum, including payment/draw and Book Entry Adjustment procedures.

What are some of the main reasons that Book Entry Adjustments would be required?

Book Entry Adjustments are typically completed to correct a draw.

Is there another way to obtain the printer-friendly version of the payment transaction confirmation after you exit the screen?

You will not be able to obtain a payment transaction confirmation page once you exit the screen. However, there are report features within ASAP that will allow you to run reports on payments, Book Entry Adjustments, etc. These reports can be found under the Reports or Inquiries Tab. You may also contact RTPFC-Grants ([email protected]) to request a detailed list of payments that EPA has on-file.

We are a current ASAP recipient. What would be the process of adding another person to our ASAP account that would allow them to request drawdowns?

This is best performed by the organization directly in ASAP. The organization's ASAP point of contact can add and remove personnel from the ASAP account. EPA cannot add users to your ASAP account. Also, the ASAP Help Desk may be able to assist. Please contact the ASAP Help Desk at (855) 868-0151.

I do journal entries for any overdraw of an award. Did you go over that?

This was covered under Book Entry Adjustments during EPA's Financial Management Webinar. View a recording or the webinar and download webinar materials from the Financial Management Webinar page. 

Do Federal Financial Reports (FFR) also get uploaded to the Assessment, Cleanup and Redevelopment Exchange System (ACRES)?

No, we don't upload FFRs to ACRES.

Is Line 10d. in the FFR the award amount that will be received by the closeout date?

The information you include on Line 10d. is the total amount of federal funds you have been awarded for the life of the entire grant (not what you have drawn, and not the total amount of funds required for the project). NOTE: There is a separate section in the SF-425 (FFR) to include recipient funds contributed, if required.

On interim FFRs for awards with multi-year project and budget periods, are Lines 10a, b, and c cumulative (including draws from prior reporting periods to date) or only for that reporting period (e.g., prior year)?

It is cumulative. If you are in the second year of an award, then you will include expenses from the first day of the budget periods all the way to that reporting period's end date.

How long after a grant has closed can you submit an amended final FFR?

There's no prescribed timeframe, but EPA will question if a grantee comes back 2 years after closeout and asks for more funding.

If you draw down indirect funds in a grant period using a provisional indirect rate, close the grant, and then receive the final indirect rate which resulted in overdrawn indirect funds, how do you pay back the overdrawn funds?

Yes, you would amend the final FFR and pay the difference back via Pay.gov.

Is the Project Officer or Grant Specialist assigned to the application or could a municipal agency have a Project Officer or Grants Specialist who helps walk through the process?

An EPA Project Officer and Grants Specialist are not assigned to an application. If you have questions about the application process, please consider attending a future Competition Process Webinar or view the recently recorded webinar here to learn about what EPA can and can't do regarding assistance to applicants. If you are interested in a particular grant program, please contact the agency contacts in the posted Notice of Funding Opportunity.

Do you submit the non-construction or construction SF-424, or do you have to submit both?

You will submit the SF-424A or the SF-424C for EPA grant programs. Most EPA grant programs utilize the SF-424A (Budget for Non-Construction). The specific application forms are always specified in the specific grant funding opportunity notice.

What is the difference between a direct and indirect cost?

Please take the How to Develop a Budget Course. Module 2 discusses Direct Costs and Module 4 discusses Indirect Costs. Definitions of these terms are also in 2 CFR 200.1.

If using a 10% indirect rate, what can it be 10% of? Subcontractors? Labor if the labor is being used as a match?

Please review EPA's Indirect Cost Policy for Recipients. The de minimis rate is explained in more detail in Section 6.3 and in the regulations at 2 CFR 200.414.

Since certain conferences can be anywhere in the country, how should you estimate and show travel costs?

Costs need to be reasonable, allocable, and allowable. Your SF-424A will detail the budget you are proposing. It is the applicant's responsibility to research costs.

Can I charge a grant an indirect cost without having an approved indirect cost rate?

Organizations must work with their federal cognizant agency to negotiate indirect costs rate, or the 10% de minimis rate is available. The award budget must reflect indirect costs in order for them to be incurred. You can view Section 6.3 of EPA's Indirect Cost Policy for Recipients of EPA Assistance Agreements.

Could you give examples of typical pre-award costs? And can you please repeat the time window prior to award approval that pre-award costs qualify?

Please see the definition of Pre-Award Costs at 2 CFR 200.458.

Does the EPA define what it considers to be permit fees that aren't to be included in program income?

EPA's supplemental regulations at 2 CFR 1500.8 discuss program income and governmental revenues (such as permit fees). Each grant program will outline permit fees. Please contact the agency contact in the funding opportunity if you have questions about a specific grant funding opportunity.

Does EPA have guidance showing how to complete the SF-424A? If not, please consider making a training video to show applicants the correct way to fill out the form.

EPA has a How to Develop a Budget Training that will help you fill out the SF-424A. We also have General Budget Development Guidance.

What would trigger the need for a post-award budget revision?

It depends. If you have questions regarding a post award budget revision, contact your Grants Specialist. One example is if an activity (such as putting on a conference) was planned and included in the budget of the award but then the pandemic hit and the conference had to be cancelled. If the grant recipient wants to use the funds that were approved for the conference for other activities instead, it is likely that a post-award budget revision would be necessary. Depending on the proposed new activities, a change to the workplan could also be required, and EPA would likely need to amend the grant.

Are there any training or webinars for developing the actual budget table and where to find accurate rates?

EPA has a How to Develop a Budget Training that will help you fill out the SF-424A, particularly in modules 2-4. We also have General Budget Development Guidance.

Where can the budget tool be found for dividing time on multiple projects?

EPA does not have a tool for dividing time on multiple projects; however, there may be some accounting or payroll programs that include this feature. Grant recipients are required to have systems in place to manage these aspects of the grant(s).

Can a subaward, if awarded to an LLC for-profit organization, still receive the 10% indirect rate?

EPA does not have a direct relationship with the prime awardee/recipient. The subrecipient needs to work directly with the prime recipient to negotiate indirect costs. It is the prime recipient's discretion to allow/not allow the use of the 10% de minimis rate.

How are we evaluated for grants if we are a new applicant without prior business or grant history?

Evaluation criteria are specific to the EPA grant program and will be discussed in the Notice of Funding Opportunity, Section V. If the EPA grant program includes past performance, they recognize that some applicants may not have past performance and will receive a neutral score.

How will EPA ensure that Environmental Justice communities are prioritized if their application isn't reviewed due to a technical error?

EPA is continually working to make our application process as accessible as possible. Some program offices provide simple instructions on what needs to go on the proposal. If you are referring to technical issues registering in SAM.gov and Grants.gov and the potential issues that can crop up because of that, I would encourage you to document the issues you're having, contact the Grants.gov Help Desk, and follow the directions in Section IV of the funding opportunity announcement.

How can a first-time applicant receive guidance on communicating relevant past performance?

If the specific EPA grant program is using past performance as an evaluation criteria, they will expressly state that in the Notice of Funding Opportunity (NOFO). If you do not have past performance, state that in the application and you will receive a neutral score as it will state in the NOFO.

What is the timeframe to receive the Notice of Award?

Generally within 120 days, but it may vary by program, number of applications received, etc.

Are there any recommended instructional resources for the Uniform Guidance for applicants who have never received a federal grant before and want to make sure they follow all the requirements?

There are many resources to learn more about the Uniform Guidance. All of EPA's grants trainings follow 2 CFR 200 and our Agency specific regulations at 2 CFR 1500. There are many companies that offer general trainings, but there are a lot of free trainings on Grants.gov.

What roles are required to apply for a grant?

An Administrative Contact, Financial Contact, Project Manager, and Authorized Representative are required.

EPA and other agencies seek comments on development of grant programs. Does submitting comments help when applying for a grant?

When EPA seeks comments and feedback on development of grant programs is it done in a way that ensures no potential applicant will receive a competitive advantage.

Would an Environmental Justice community need to form a non-profit 501(c)(3) to be eligible?

Eligibility is generally determined by the Assistance Listing and varies by competitive funding opportunity. To determine eligibility for a specific program, review Section III of the Notice of Funding Opportunity.

Are the procurement requirements for contractors different than if a subrecipient was written into a proposal or application?

No, the procurement requirements, found at 2 CFR 2003.317 through 200.327 and 2 CFR 1500.10 through 1500.11, are the same regardless of whether the contractor is written into the proposal at the time of application. However, when an applicant names a contractor in a competitive proposal, if they have not followed proper procurement procedures it may jeopardize their selection and/or award.

Is it possible to search EPA grants by region or state on EPA's website or on Grants.gov?

There are various filters you can select to limit grant opportunities. These filters do not include regions/states. However, you can replicate that filtering by using the keyword "region." Most EPA regional grant opportunities include the Region in the title.

What is the difference between SAM.gov and Grants.gov?

SAM.gov is the system to do business with the federal government-all awards (contracts and grants). The registration is tailored to one or both of those tracks. Grants.gov is the federal government one-stop shop for assistance awards, also known as grants. It is the system to which you will submit an application to an EPA funding opportunity.

Does EBiz replace DUNS registration? If we have already registered on SAM.gov can we ignore registering with EBiz for now?

DUNS was phased out on April 4, 2022. The SAM.gov-generated Unique Entity Identifier (UEI) is now the official UEI. Within the SAM.gov registration, you need to identify your organization's EBiz point of contact. Should you want to register an account and apply for grants in Grants.gov, you need to identify the EBiz point of contact in SAM.gov for your organization. Please visit the Grants.gov Online Help tool for details about how to manage roles.

Is Workspace a new system?

It has been around for a few years; it's within Grants.gov.

Are Unique Entity Identifier (UEI) numbers public? I have subgrantees that had DUNS numbers, but I don't see some of them on SAM.gov.

Unique Entity Identifiers (UEI) are public, however there are some limitations. Non-federal users can only check the registration status of entities that are linked to your SAM.gov account. 

Would the best way to find out future information/updates about EPA-designated Bipartisan Infrastructure Law funds be by subscribing to the EPA listserv? Or is there a specific other link for updates on funding, webinars, etc.?

Information about how EPA is implementing the Bipartisan Infrastructure Law and associated funding can be found at EPA's Bipartisan Infrastructure Law website.

Are there ongoing reporting requirements for equipment beyond the term of the award?

Yes. All federal awards, including EPA awards, require reporting requirements beyond the "term of the award" or period of performance to close out the award. Please visit Frequent Questions about Closeouts. There are also record retention requirements. These details are outlined in our award terms and conditions. Visit Grant Terms and Conditions for those that are applicable to all EPA assistance agreements and monetary amendments. Program-specific Terms and Conditions will detail the specific cadence and any additional program specific reporting requirements.

Can you outline the pre-award certification through affirmation of award process?

The pre-award certification only applies to nonprofit organizations, and only nonprofit organizations that are receiving $200,000 or more. Currently, that is the policy. If you are a nonprofit that triggers the pre-award certification process, EPA will reach out to you and give you a questionnaire to fill out to make sure you have the right policies and procedures in place. If you do not, EPA will work with you to help you get those policies and procedures in place. For the affirmation of award process, once EPA has signed the award document and the Grants Management Office sends it to you, you will have 21 days to read it and raise any potential issues. If those 21 days go by and you don't raise any objections or any concerns, then you automatically accept the award. Also, if you draw down funds, you automatically accept the award. When you receive the notice of award, make sure you make note of the date and ask any questions or raise any issues within 21 days.

Once you receive notification of the award, you have to submit a QAPP before you spend any funds. Many environmental projects are tied to time, and delays preparing a QAPP before initiating sampling/measuring may delay the project substantially.

In order to ensure quality of the measurements being taken and the data being collected, we have to have a QAPP in place. If you are concerned about timing, please reach out to the Project Officer on that grant or the QAPP Coordinator/QA Coordinator.

If our organization has been awarded EPA grants in the past, are we currently eligible for others?

Eligibility is specific to each grant program; however, if you have received EPA grants in the past under a program, it would be worth looking into current opportunities under that program and additional EPA programs.

Are these grants only available for non-profit organizations or are small businesses able to apply?

EPA does have a Small Business Innovation Research (SBIR) Program. Non-profit organizations are eligible entities for many EPA grants programs. Eligibility is specific to each grant program. Please check the eligibility requirements of the specific EPA funding opportunity to determine whether non-profit organizations are eligible. You can also search grants.gov using and eligibility filter and select non-profit organizations to see all federal funding opportunities where non-profit organizations are eligible.

Where can we find procurement guidelines to use after we are awarded a grant?

Procurement Regulations are available at 2 CFR 220.317 - 200.327. EPA does have some specific regulations in 2 CFR 1500 on procurement standards at 2 CFR 1500.10 and 2 CFR 1500.11. The EPA Grants Policy Resources page provides policy and guidance documents, including one on procurement.

Has EPA identified a date for transitioning from DUNS to UEI in Grants.gov application forms? I realize the referenced RAIN does not identify a change date.

EPA updated RAIN-2021-G01-R1 on February 4, 2022. Competitive programs with closing dates of April 1, 2022, will use UEI grant application packages and associated UEI compatible forms. Noncompetitive programs will transition February 21,2022.

Should a department or an agency have one UEI?

SAM.gov allows for parent and child entities. However, each entity wishing to do business with the federal government must register in SAM.gov and have a UEI. To learn more about UEI, please take a look at the resources in RAIN-2021-G01-R1. You can also find information about UEI on SAM.gov.

Does EPA have a training on the Subrecipient Policy and how to determine which non-discretionary federal laws must be passed through with an award?

The Subaward Policy training is in the process of being updated and will be available once it's ready. Visit the EPA Grants home page to find available trainings.

Can one public school district be a lead applicant and include other school districts in their application?

It depends on what is contained in the Notice of Funding Opportunity (NOFO), but generally yes. If public school districts are an eligible entity, they can apply and include other school districts as partners in their application. If this question is related to a specific opportunity, please contact the Point of Contact in Section VII of the NOFO.

Can the EPA please define what a public-private partnership is? What is an example of a public-private partnership?

The definition will depend on the funding opportunity. If the funding opportunity you are interested in does not adequately define this term, you can reach out to the point of contact listed in Section VII of the Notice of Funding Opportunity.

Is it possible to get Justice40 funding for a public park in an affluent area, neighboring a disadvantaged area?

If you can demonstrate how the project will benefit the disadvantaged area, it is possible the park might be eligible for funding under Justice40; however, it will depend on the details listed in the Notice of Funding Opportunity.

Where do you go to sign up for automatic notifications for various grant opportunities?

When you click on an opportunity, the main landing page for that opportunity should have two red buttons in the upper right corner. Click the one that says "subscribe"

Are EPA grant programs subject to Buy America?

Some of EPA's programs are subject to Buy America provisions. If construction will be funded under the grant, Buy America will likely apply.

If I only signed up for partial access to SAM.gov, can I "upgrade" to the full registration?

Yes, you should be able to take the initial SAM Unique Entity Identifier (UEI)-only registration and use it to apply for a full registration. There are various options you can select from, some of which are required in order to apply for federal government grants, including at EPA. For additional information, please review the Frequently Asked Questions: How to update/renew an existing entity registration in SAM.gov and Difference between signing up and registering in SAM.gov. You may also contact the Federal Service Desk or visit How to Register to Apply for Grants for assistance with how to do this.

How do we determine whether sub-awardees have exclusions if they are not "fully registered" on SAM?

SAM Exclusion Records contains the data for all active exclusion records entered by the federal government identifying those parties excluded from receiving federal contracts, certain subcontracts, and federal financial and non-financial assistance and benefits.

How often do you have to register for SAM.gov? Once and done?

You only have to register once, but you do have to renew the registration annually. I recommend setting a reminder in your calendar to renew so the registration doesn't lapse. You can find more information here: GSA Federal Service Desk Service Portal.

Is an awarded application an implicit approval by EPA to proceed with actions that require approval?

If the activities that you would need preapproval for are contained in the approved workplan associated with the executed award document, that is considered approval. However, any activities not covered under the workplan that require preapproval would need separate approval.

As a state entity, we have a Buy Priority where we have approved vendors using our state procurement code. Could we use those vendors and add federal terms in a resulting agreement? Or do we have to re-solicit with the EPA required solicitation terms?

States follow their own procurement procedures. See 2 CFR 317.

Do we need an EPA account to utilize your services?

You do not need any kind of EPA account to apply for or receive grant funding. You do need a SAM.gov registration which is a federal government-wide registration system. Registering for SAM.gov works for all federal agencies and is the system whereby you can receive federal funding, either in the form of a grant or a contract. You will also need to set up a Grants.gov account and register to submit applications for federal grants. Detailed instructions are available at How to Register to Apply for Grants.

Are non-profits allowed to apply for multiple grants during the same cycle if they are eligible?

Different grant programs have different rules on how many projects you can submit under the same grant program or the same competition. Information on this will be listed clearly in Section III of the Notice of Funding Opportunity (NOFO), which is the eligibility section. You should look under threshold eligibility requirements. If you are still unclear, please reach out to the point of contact in Section VII of the same NOFO.

In terms of the 15-day window to schedule a debriefing, does this timeframe vary for each federal agency?

Yes. EPA has its own dispute procedures that we put in place as part of the EPA Competition Order. Other agencies may have different timeframes depending on their particular procedures.

Are 501(c)6 non-profits generally eligible for EPA funding?

It depends on the grant program. Applicants should review the eligibility section in the Notice of Funding Opportunity (NOFO). If they are uncertain of their eligibility, they should contact the Point of Contact listed in Section VII of the NOFO. A nonprofit that is tax exempt under 501(c)(6) is generally eligible for EPA grants similar to other nonprofit organizations.

As a state entity, if we subaward to another state entity, would the terms also apply to the state subawardee?

Many of EPA's grant Terms and Conditions apply to the subawardee. States follow their own regulations which would still be the case if you were a state that was a subawardee.

Do you have a formula for calculating cost share as a percent of a project?

The cost share formula is dependent on the grant program. Some grant programs have statutory or regulatory match requirements and sometimes the cost share is a percentage of the total project cost, which includes both federal and nonfederal, and sometimes it's a percentage of just the federal amount. Typically, the Notice of Funding Opportunity will tell you explicitly how to calculate cost share. If a program is allowing for voluntary matching, then it will not have a specific formula for calculating cost share.

Can a Technical Assistance Provider have a SAM.gov login/password to apply for a grant for a town?

You will not apply for a grant through SAM.gov. SAM.gov is where you must register to do business with the federal government. You will apply for grants through Grants.gov and it is possible to have someone from an outside organization apply on your behalf. You must ensure that they are applying under the correct Unique Entity Identifier (UEI).

Are designated Environmental Justice (EJ) areas a priority?

EJ is a priority for EPA. We have several ongoing initiatives to better incorporate and address environmental justice concerns and areas in our grant programs. Please find more information on EPA's Environmental Justice website.

Can a contract be awarded to a public university, or does that have to be a subaward? Our state agency’s policies allow for agency-to-agency transfer of funds to a public university without competition.

It depends on state law. If state law provides that state universities are legally separate from other components of the state for the purposes of financial transactions, then EPA would consider the transaction to be a subaward for the purposes of the Uniform Grants Guidance (UGG). There may be unique situations in which state law characterizes transfers of funds between state agencies and state universities as Interagency Service Agreements or a similar designation for an internal financial transaction because state universities are instrumentalities of state government. If that is the case, the governing regulation would be 2 CFR 200.417. There may also be other unique situations in which state law provides that transactions between state universities and other components of the state government are procurement contracts in all cases. As provided at 2 CFR 200.317, states follow their own procurement procedures with the exception of the requirements in 2 CFR 200.321 (small and disadvantaged businesses), 2 CFR 200.322 (domestic preferences), 2 CFR 200 200.323 (recycled materials), and 2 CFR 200 200.327 (contract clauses contained in Appendix II to 2 CFR Part 200). EPA’s 40 CFR Part 33 Disadvantaged Business Participation rule also applies to states.

Are contracted legal services under $10k considered microtransactions and thus not held to competitive procurement policy? Specifically, when those legal services are used to create subaward agreements/assist with contract drafting.

Yes, procurement of legal services described in this question would be considered a microtransaction because is it under the $10,000 threshold. Also, law firms are not subject to the consultant fee cap consistent with 61 Comp. Gen. 69 (1981).The grant regulations at2 CFR 200.320(a)(1) discuss procurement procedures for micro-purchases, including the requirement for distributing micro-purchases equitably among qualified sources.

If our Agency’s thresholds are more stringent than the thresholds EPA has, then we still follow our own purchasing policy, correct? We are an independent special district.

Yes, if your Agency’s competition thresholds are more stringent than the federal thresholds, you would follow your Agency’s procedures.

If a contractor provides services in the design phase of a project, are they not able to compete for the construction phase of the project?

It depends. EPA’s regulation that speaks to this scenario is 2 CFR 1500.11. If an applicant/recipient competed the contract at the design phase, they could use the same firm for the construction phase. However, construction is different than architectural/engineering (A/E) services. The grant regulations at 2 CFR 200.320(b)(2)(iv) make clear that an applicant/recipient can use qualifications-based procurement for A/E services, where price is not a selection factor, only for the A/E services, not subsequent construction services. If the A/E firm gives an applicant/recipient the specifications for the general contract for the construction work, the construction arm of the A/E firm cannot bid on that work. This situation is explicitly prohibited by 2 CFR 200.319(b), which states that “contractors that develop or draft specifications, requirements, statements of work, or invitations for bids or requests for proposals must be excluded from competing for such procurements.”

If a Request for Proposals/Quotes or Qualifications developed by a city includes an attachment with a logo of a private company, does that disqualify the company? Can any material developed by a prospective bidder be included?

Yes, that disqualifies the company from bidding on the procurement. No material developed by a prospective bidder can be included in the RFP/RFQ. This situation is explicitly prohibited by 2 CFR 200.319(b), which states that “contractors that develop or draft specifications, requirements, statements of work, or invitations for bids or requests for proposals must be excluded from competing for such procurements.”

How does the municipality obtain the grant funding? Do you reimburse or do we simply provide invoices and get paid (in a subaward or procurement contract situation)?

EPA typically pays municipal recipients in advance as provided in 2 CFR 200.305(b) and the EPA General Term and Condition “Automated Standard Application Payments (ASAP) and Proper Payment Draw Down.” Recipients must be enrolled or enroll in the ASAP system to receive payments under EPA financial assistance agreements. Drawdowns should be based on actual costs incurred (e.g., payroll, payment of contractor invoices) rather than estimates or “even” amounts each month or week based on anticipated cash flow. Recipients must disburse essentially all drawn down funds within 5 business days of receiving payment from EPA via ASAP.

Are there any suggestions where to research to find profit margins for different categories?

Online; speaking with other grantees located in your area.

If professional/engineering services are not included in the grant (funded by the grant), is the grant recipient required to follow the procurement requirements when procuring the professional/engineering services?

No.

Is quality of work or experience level acceptable for not selecting the lowest bidder?

Yes, quality of work/experience could be a basis for not selecting the lowest bidder. As required by 2 CFR 200.318(h) and (i),however, if you select a contractor that is not offering the lowest price, you must document the rationale and basis for the contract price. You may also be required to provide this documentation to the EPA Award Official.

If using the QBS process to select an engineer, how do we negotiate costs?

It depends on the grant program. If the Brooks Act applies, the requirements for selection/negotiation of A/E services are discussed at 40 USC 1101; and, under 2 CFR 200.320(b)(2), costs for A/E services must be fair and reasonable even though price may not be a selection factor. Conducting market research to make independent estimates of prices for A/E services is one means of complying with the cost/price analysis provisions of 2 CFR 200.324(a). In any event, the A/E firm must not charge recipients more than their commercial rates for similar services.

Would the inability to comply with the Build America, Buy America Act (BABA) be a suitable reason for not going with the lowest bid?

Yes, the inability to comply with BABA could be an acceptable reason for not going with the lowest bid. However, you are going to have to provide documentation showing that you conducted market research and there is only one domestic firm who can provide American-made goods; a conclusory statement is insufficient.See2 CFR 200.318(h),(i). EPA’s BABA website contains resources on market research for firms that supply American-made materials.

Can RFPs take place before the grant is approved?

Yes. Note, however, that consistent with 2 CFR 1500.9, “all costs incurred before EPA makes the award are at the recipient's risk. EPA is under no obligation to reimburse such costs if for any reason the recipient does not receive a Federal award or if the Federal award is less than anticipated and inadequate to cover such costs.”

Can an entity that is awarded a federal grant pass-through funds to a nonprofit association to pay a contractor, if the association competed for the contractor and the scope for the federal grant is consistent with the scope of services?

Yes, the grant recipient can passthrough funds to a nonprofit which then selects a contractor in compliance with the competitive procurement requirements in 2 CFR Parts 200 and 1500 as well as 40 CFR Part 33. However, the pass-through funding is subject to the requirements for subawards in 2 CFR 200.332, the EPA Subaward Policy, and EPA’s General Term and Condition “Establishing and Managing Subawards.”

If an applicant was approved based on their application stating they would use a specific vendor, does that constitute approval from EPA?

No. The fact that a recipient has named a contractor in its application, including as a “partner” or otherwise, does not justify a sole-source procurement. Note, some EPA grant programs are now imposing a threshold requirement that if applicants name a contractor, the applicant needs to be able to demonstrate that it complied with competitive procurement procedures.

Our participants are seasonal W2 employees. How would that impact participant support costs?

Persons who receive W2s are employees. The fact that they are seasonal is irrelevant. You would classify these costs as Personnel costs and whatever fringe benefits they receive. Participant support costs are the direct costs for items such as stipends or subsistence allowances, travel allowances, and registration fees paid to or on behalf of participants or trainees (but not employees) in connection with conferences, or training projects. See Participant Support Costs as defined in 2 CFR 200.1. A grantee’s employees cannot receive participant support costs, but grantees may train the employees as provided in 2 CFR 200.473.

How does the Brooks Act play into the cost inclusion in a competitive solicitation?

The Brooks Act requirements for procuring A/E services do not apply to all EPA grant programs, only if the Act is incorporated by reference in the grant statutory language such as for the Clean Water State Revolving Fund (33 U.S.C. 1382(b)(14)).However, when the Brooks Act applies, the negotiation/selection of A/E services must be in accordance with the procedures discussed at 40 USC 1101 etc. Specifically, and in relevant part, qualifications-based procurement, where price is not a consideration, is required.

Does the competition and selection reason information need to be submitted when applying for the grant or is this completed once the grant is awarded?

It depends. Depending on what EPA grant you are applying for, if you have named your contractor in your grant application, you may have to demonstrate to EPA that you properly selected that contractor as a threshold requirement. Competition requirements would be followed post-award if you have not selected a contractor at time of application. In any event, you must maintain documentation regarding the competitive process as required by 2 CFR 200.318(i) should any questions arise regarding the procurement post-award.

We require all subrecipients to have a UEI issued from SAM; we do NOT have the same requirements for contractors/consultants/vendors. Am I reading 2 CFR 25.100 (a) and 2 CFR 25.105 correctly?

Yes, Federal regulations do not require that recipient contractors have UEIs.

How often can you draw down grant funds? We pay biweekly, can we draw down on that schedule?

With the exception of states, recipients must comply with the “immediate cash needs” requirements in 2 CFR 200.305(b) as interpreted in EPA’s “Automated Standard Application Payments (ASAP) and Proper Payment Draw Down” General Term and Condition which requires that recipients disburse substantially all drawn down funds within 5 business days of receiving payment from EPA. Drawdowns should be based on actual costs incurred (e.g., payroll, payment of contractor invoices) rather than estimates or “even” amounts each month or week based on anticipated cash flow. If your payment schedule is biweekly, then you can draw down funds biweekly as long as the funds are disbursed in compliance with the term and condition.

To confirm, the requirement to disburse funds in 5 business days only applies to non/for-profit entities that receive grants from the EPA, correct?

No. The 5-business day disbursement standard applies to local governments and tribes as well as non-profits. Only states are not subject to the requirement.

If you have a multi-year agreement, how often do you have to check whether a subrecipient or contractor is an excluded entity?

Consistent with 2 CFR 180.300, every time you renew the agreement, you must check whether the organization or firm is an excluded entity.

How do you best recommend working with subrecipients to ensure compliance? Do we ask for time records? We have subrecipients of $5-10k so wondering about how much onus we can put on them for relatively small amounts of money.

As provided in 2 CFR 200.332(d), pass-through entities have several tools to monitor and verify subrecipient compliance with regulatory requirements and the terms of their Federal award. Pass-through entities can require subrecipients to provide timesheets or other documentation of the subrecipient work. It may be easier if the recipient enters into fixed amount procurement contracts when acquiring services from for-profit organizations or when a micro-purchase (typically $10,000 or less) is a more efficient means of supporting an eligible subrecipient’s participation in a project. Please refer toRAIN-2018-G04-R1,Micro-Purchase and Simplified Acquisition Threshold for Procurement by EPA Assistance Agreement Recipients and Subrecipients.

Is it acceptable to issue one RFQ for multiple professional services needed? It would spell out the different services and qualifications needed to be evaluated separately as well as result in individual contracts per service.

Yes, so long as the competition is conducted fairly and openly, recipients may procure multiple types of services through a single RFQ. Note, this may not be practically feasible, and you should speak with your own procurement professionals.

If another city went through a competitive procurement process for selecting an engineering firm, can we go into an interlocal agreement with that city to utilize their procurement so we do not have to do it ourselves?

Yes. The grant regulations at 2 CFR 200.318(e) state: “To foster greater economy and efficiency, and in accordance with efforts to promote cost-effective use of shared services across the Federal Government, the non-Federal entity is encouraged to enter into state and local intergovernmental agreements or inter-entity agreements where appropriate for procurement or use of common or shared goods and services. Competition requirements will be met with documented procurement actions using strategic sourcing, shared services, and other similar procurement arrangements.”

What is the allowable overhead charge from a state university?

The state university’s indirect cost rate with their cognizant federal agency is allowable as provided at 2 CFR 200.332(a)(4).See Appendix III to 2 CFR Part 200 for information on indirect cost rates for institutions of higher education.

What sort of documentation do you require to show staff/personnel time spent on grant-funded work for organizations that don't use timesheets?

As provided at 2 CFR 200.430(i),recipients must have some type of system that provides actual estimates of the time spent on the grant. EPA cannot endorse or recommend a specific software system that would keep track of employee’s time spent on grants.

Are there any specific rules for competition when a subrecipient uses subcontractors?

The same rules for competitive procurement that apply to the pass-through/direct recipient flow down to the subrecipient as provided 2 CFR 200.322(a).See EPA’s General Term and Condition “Establishing and Managing Subawards.”

When writing the proposal, the Program Director included a specific consultant on the budget with his qualifications and reasons why his specific knowledge serves the grant. Do we still need to go through a procurement process?

Yes, naming a consultant in the grant application and describing his or her qualifications does not allow the recipient to make a sole source contract to the consultant if the amount of the contract is over the 2 CFR 200.320(a) micro-purchase threshold. EPA does not accept sole source justifications for consultant services given that those services are widely available in the commercial marketplace.See2 CFR 200.320.

I work for a municipality who is the grant recipient. Our project will have legal costs. The municipality has a contract with an Attorney's office. Can we use our contracted attorney, or do we need to put an RFQ out?

It depends. If the direct cost for legal services that will be charged to the grant exceeds the municipality’s micro-purchase threshold under 2 CFR 200.320(a), which is generally $10,000, the municipality must follow competitive procurement procedures to acquire the legal services.

If we have to make a purchase of various types of equipment over $10k, are we able to use a store/vendor we have a current account with even if we might find it less expensive somewhere else for reasons other than cost?

No, you must follow the competitive procurement procedures discussed at 2 CFR 200.320 to acquire equipment. Off the shelf equipment is fungible and does not matter where you have the account, it matters who gives you the best price. However, you can take the availability of technical support into account in determining which vendor offers the best overall package as part of the competitive selection process.

Do the procurement practices for equipment differ from those for supplies or is really the key issue the cost of the item and not which category it is listed in on the budgeting form?

No. The focus is the cost of the supplies, services, or equipment, not which category it is listed in on the SF 424budgeting form. Although items with unit costs of less than $5,000 are considered supplies, when a recipient buys supplies in bulk, the total purchase amount may exceed the 2 CFR 200.320(a)micro-purchase threshold for non-competitive procurement.

What if the bid for a particular item is lower, but purchasing said item will cause the City higher costs in the end?

Yes. This may be an acceptable argument for a sole source justification. For instance, in the scenario described in the question, if the lowest bid to replace the radios is incompatible with charging equipment or radio mounts, you would need to purchase new charging equipment and radio mounts, and this would make the overall contract more expensive than the cost of replacing the radios with additional radios of a type that are compatible with your current chargers and radio mounts.

Does EPA have a set aside Disadvantaged Business Enterprise (DBE) goal for Construction Invitation for Bids (IFBs) over $250k? Or do you review Construction IFBs documents for over $250k?

EPA’s DBE rule at 40 CFR 33.301 requires recipients to makegood faith efforts as discussed in that regulation whenever procuring construction, equipment, services and supplies under an EPA financial assistance agreement. The DBE rule does not mandate that recipients set aside a specific amount of work for DBEs. EPA may review construction IFB documents at the recipient’s request. Additionally, the grant regulations at 2 CFR 200.325 discuss specific scenarios when the recipient/subrecipient must make available upon request, for EPA or pass-through entity pre-procurement review, procurement documents, including when the recipient/subrecipient’s procurement procedures fail to comply with the Federal procurement standards or when the procurement is expected to exceed the Simplified Acquisition Threshold and the contract is awarded without competition/only one bid is received in response to the procurement. Moreover, and consistent with 2 CFR 200.337, EPA “must have the right of access to any documents, papers, or other records of the non-Federal entity which are pertinent to the Federal award, in order to make audits, examinations, excerpts, and transcripts.” Note, some EPA grant programs are now imposing a threshold requirement that if applicants name a contractor, the applicant needs to be able to demonstrate that it complied with competitive procurement procedures.

If we use a Master Program Agreement for a professional corporation contractor, then identify a task for them, how do we document the price negotiation for each task?

We will presume for the purposes of our response that the recipient entered into the Master Program Agreement in compliance with the competitive procurement requirements in 2 CFR Parts 200 and 1500 as well as EPA’s 40 CFR Part 33 Disadvantaged Business Enterprise rule. Consistent with 2 CFR 200.324(b), non-federal entities must negotiate profit as a separate element of the price for each contract in which there is no price competition and in all cases where cost analysis is performed. To establish a fair and reasonable profit, consideration must be given to the complexity of the work to be performed, the risk borne by the contractor, the contractor's investment, the amount of subcontracting, the quality of its record of past performance, and industry profit rates in the surrounding geographical area for similar work.

What process should a rural small town with staff inexperienced in EPA matters put together the scope and cost estimates required for a grant application without excluding any of the few local consultants from applying for the work?

EPA provides guidance on acquiring consulting services for grant application preparation and grant implementation in a manner that complies with the full and open competition requirements in 2 CFR 200.319 at MARC Grant Application Resources. See also Best Practice Guide for Procuring Services, Supplies, and Equipment Under EPA Assistance Agreements.

Can hourly rates for personnel be used in the selection for professional services as the determining factor for selecting a subcontractor using a Master Program Agreement?

If the question is can you as the grant recipient use the rates you pay your own employees as a benchmark for determining whether the rates that a subcontractor are proposing for their professionals is reasonable, the answer is yes. Keep in mind, however, that for individual consultants, there is the statutory consultant fee cap at Level IV of the Executive Schedule that EPA implements at 2 CFR 1500.10. The Best Practice Guide for Procuring Services, Supplies, and Equipment Under EPA Assistance Agreements provides additional guidance on the consultant fee cap.

A consulting firm charged us their hourly rate which did not exceed the Level IV of the Executive Compensation rate, but they also added on a profit margin which made their hourly billable rate at $185 an hour. Is this okay or is profit margin too high?

The cap does not include the firm’s overhead rate or the amount of profit a consulting firm earns. The loaded hourly rate can be above Level IV of the Executive Schedule. The consultant fee cap only applies to personal compensation (as depicted on W-2s or1099s for Federal income tax purposes) for individual consultants and rarely applies to rates charged by consulting firms as indicated in 2 CFR 1500.10. The Executive Compensation rate cap only applies to individual consultants who you select and are functioning like your employees subject to your direction and control. The Best Practice Guide for Procuring Services, Supplies, and Equipment Under EPA Assistance Agreements provides additional guidance on the consultant fee cap.

Is the $10k per contract or per total project cost for micro purchases?

Per total project cost. You cannot break your contracts up to avoid competition and micro-purchases must be rotated among qualified sources as provided at 2 CFR 200.320(a)(1).

Can ordering off of GSA Fleet or Sourcewell suffice instead of going through the RFP process?

Non-federal entities other than tribes are generally not eligible to use GSA Fleet/GSA Schedule. Regardless, some contractors may offer you their GSA-listed price, however, that still does not justify lack of full and open competition. Please reach out to your EPA Project Officer/point of contact regarding Sourcewell as it appears this only applies for the state of Minnesota. As a general matter, if state law allows local governments to procure services or products through master agreements entered into by the state, that practice complies with 2 CFR 200.318(e).

When do we have to have everything submitted by to draw down funds?

The answer to this question depends on the grant program. States follow their Cash Management Improvement Act agreements with the Department of Treasury or default procedures under31 CFR Part 205 as provided in 2 CFR 200.305(a). Other recipients are subject to2 CFR 200.305(b) as implemented in the EPA General Term and Condition “Automated Standard Application Payment (ASAP) and Proper Payment Drawdown.” EPA generally does not require recipients to submit documentation prior to drawing down funds and recipients must disburse substantially all of the drawn down funds to satisfy obligations to pay employees, contractors, subrecipients and other entities within 5 business days of receiving payment from EP Avia ASAP. If EPA requires you to submit documents to the EPA before drawing down funds (e.g., for Superfund Technical Assistance Grants, construction grants such as OW Community Grants, or recipients EPA places in reimbursement status under 2 CFR 200.208),you have some discretion, depending on how quickly you would like to draw down the funds. It may coincide with biweekly payroll, quarterly accounting reconciliation, as soon as costs are incurred, or other times as appropriate based on the terms and conditions of the grant.

Is university considered a subrecipient or contractor when it is retained to conduct research on behalf of a pass through entity and: (1) the pass through entity retains rights to the data collected; and (2) the pass through entity oversees the research?

As indicated in Appendix A to EPA’s Subaward Policy, transactions between recipients and institutions of higher education are subawards in almost all cases particularly when the university is performing research. The fact that the pass-through entity retains all rights to the data collected does not change that relationship given that pass-through entities always have rights to use data subrecipients collect pursuant to 2 CFR200.315 which flows down to subawards pursuant to 2CFR200.322(a)(2) and (3). Note also that pursuant to EPA’s General Term and Condition “Copyrighted Material and Data” EPA has a “Federal Purpose” license in the data collected by the subrecipient as well given that this term and condition also flows down through the pass-through entity’s agreement with EPA under EPA’s General Term and Condition “Establishing and Managing Subawards.”

If a grant recipient contracts services with a competitive market and the contractor they select has contracted employees under them as part of their "package," do the contractor’s contractors also need to be competitive?

No, it is up to the contractor on how they pick their subcontractors.

What about the Minority/Women-owned Business Enterprises (MBE/WBE) 6 good faith efforts? Don't they apply to all procurements regardless of size/threshold?

Yes. For example, even though recipients do not need to competitively procure services and products in amounts less than the micro-purchase threshold, EPA expects recipients to make good faith efforts to include MBE/WBE firms in efforts to rotate micro-purchases among qualified sources. See also Best Practice Guide for Procuring Services, Supplies, and Equipment Under EPA Assistance Agreements.

What if you are not in compliance with your reporting requirements; can you still draw down funds?

This is difficult to answer without context, as “not in compliance” could have different meanings. If you are a week late with a report, and this is not part of a larger pattern of noncompliance, it is unlikely that you would be prevented from drawing down. However, if patterns of noncompliance, evidence of financial management noncompliance, or other serious issues with grants management occur, EPA does have the ability to take action, such as withholding payment until reporting requirements are met or placing the recipient in reimbursement status as authorized by2 CFR 200.208and 2 CFR 200.305(b)(6).

Do contractors procured on a federal grant award have to have a Unique Entity Identifier from SAM.gov?

No.

Do we need to compete for the services of the grant recipient’s employees and do the services of the contracted employees also need to be competed?

No and yes. No, a grant recipient’s employees are their own employees and may be hired in accordance with HR procedures as long as the recipient complies with Civil Rights Laws as provided in 40 CFR Part 7.Employees receive W-2s for Federal income tax purposes. Yes, for the contract employees, they are contractors/consultants whose services must be procured in compliance with the 2 CFR Parts 200 and 1500 Procurement Standards. The easy way to differentiate employees versus contractors is employees receive W-2s, you pay payroll taxes on them, and you report their income on a W-2 form. Independent contractors receive1099s and are not on payroll. Note, contractor employees are subject to the consultant fee cap at Level IV of the Executive Schedule for their individual compensation as indicated in 2 CFR 1500.10.

Are non-employees who travel to meetings to serve as presenters considered participants for participant support costs?

It depends. That could be a participant support cost if, for example, you have people from the community/as part of a community involvement type of meeting and the non-employee is going to come and make a presentation, that could be a participant support cost. Sometimes, however, presenters are consultants, and you pay them a fixed-price speaker fee (honorarium) using micro-purchase procedures.

What about the vacation and sick pay of a person who works on the grant, are these considered direct or indirect costs?

Those costs are generally in the "Fringe" cost category for grant employees listed in the "Personnel" cost category, which is a direct cost.

I heard that the Office of Management and Budget (OMB) is proposing to raise the de minimis rate for indirect costs from 10% to 15%. Has this been approved yet?

OMB is working on updating 2 CFR Part 200, but we will not know for sure if the 10% de minimis rate will be raised to 15% until the new regulations are published.

Can an organization have more than one federal cognizant agency?

The cognizant agency is based on the total federal funding for your organization. The Schedule of Expenditures of Federal Awards included in your organization's audit can be used to determine which Federal agency provided the most direct federal funding. An organization may negotiate more than one indirect cost rate when its major departments benefit from indirect costs in varying degrees.

What about contracts over $25K, will they be excluded from the Modified Total Direct Cost (MTDC)?

The definition of the MTDC base does not specifically identify if contracts are excluded or included. The definition includes "services" as part of the base, but it excludes capital expenditures and construction. Therefore, it depends on the type of contract. In addition, the MTDC definition states "Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs." Therefore, your cognizant agency may determine that it's necessary to exclude or limit the dollar amount of each contract included your MTDC base.

For the Modified Total Direct Costs (MTDCs), do “services” include contracts such as for environmental contracting? Can MTDC include contractual construction costs?

The MTDC may include an environmental contract if the contract is for services. However, if the environmental contract is part of construction costs, then it would not be included because construction costs are not included in the MTDC. In addition, capital expenditures are not included in the MTDC base. Therefore, contracts to make additions, improvements, modifications, replacements, rearrangements, reinstallations, renovations, or alterations to capital assets that materially increase their value or useful life are also excluded from the MTDC base.

Has there been any discussion about how the $25k limit on each subaward may incentivize some fund recipients to award smaller subawards?

One of the proposed updates to 2 CFR Part 200 is to adjust the exclusion threshold of subawards from $25,000 to $50,000 in the Modified Total Direct Cost (MTDC) base; however, we will not know if the increased threshold is approved until the new regulations are published. For more information, visit: https://www.federalregister.gov/documents/2023/10/05/2023-21078/guidance-for-grants-and-agreements.

When it says the first $25K of each subaward, is that on a per year basis (i.e., if there is a single $50K subaward every year, the first $25K of that subaward for each year counts towards the indirect costs)?

The first $25,000 of a subaward is not on a per year basis. The allowance of $25,000 is for one time during the period of performance of each individual subaward.

If you are a prime awardee and were awarded a federal grant with the de minimis indirect rate, but over the course of a multi-year award you negotiate and receive a provisional rate, will the EPA allow you to incorporate your new rate?

Yes. Please notify your Grant Specialist and Project Officer if/when you receive a new approved rate. Also, keep in mind that although your indirect cost rate changed, the total amount of the grant award will not change.

How does carryforward work for the fixed rate?

The difference between the amount of indirect costs recovered during the fiscal year using the approved indirect cost rate for that year and the actual indirect costs incurred during that year is carryforward and included in a future fixed indirect cost rate. A fixed rate with carryforward is based on the actual indirect costs incurred during a previous fiscal year, for example, the actual Fiscal Year (FY) 2021 costs were used to negotiate indirect cost rates for FY 2023. Now that FY 2023 is over, we have to account for the difference between the indirect costs the recipient recovered using the FY 2023 approved rate and the actually indirect costs incurred during FY 2023. The different between the indirect cost drawdowns during FY 2023 and the actual indirect costs incurred during FY 2023 will be carryforward and included in the FY 2025 indirect cost rate.

Can an awardee use less than their Negotiated Indirect Cost Rate Agreement (NICRA) if they choose? For example, if their NICRA is 18%, but they only wish to claim 13% to put more money into the programmatic costs.

Awardees are allowed to use a lower rate than their approved rate; however, the EPA cannot make an applicant/grantee use a lower rate than their approved rate. This must be only the applicant's/recipient's decision.

So, if our fiscal year is July 1 – June 30 and the grant period is from August 1, 2023 – July 31, 2028, do I have more than two rates?

Your indirect cost rate will likely change each fiscal year unless you opt for the 10% de minimis rate. If the grant is over two fiscal years and the indirect cost rate approved for the first fiscal year is less than the rate for the second fiscal year, you don't have to use the higher rate. You can continue to use the lower original rate because recipients are always allowed to use a lower rate than their approved rate.

We had an agency interpret the de minimis rate as we could only recoup $2,500, or 10% of the $25,000. Is this the EPA’s interpretation?

It depends on what costs are included in the $25,000. The 10% rate can only be applied to costs included in the Modified Total Direct Cost (MTDC) base. The de minimis rate of 10% can be applied to a recipient's MTDCs as defined in 2 CFR Part 200.1. If the $25,000 only includes allowable MTDCs, then the allowable indirect costs would equal $25,000 X 10% = $2,500.

Has the federal government found that different agencies and departments have different capacities and willingness to serve as the cognizant agency for a funding recipient?

Federal agencies without the expertise or resources to negotiate indirect cost rates can set up an interagency agreement with other federal agencies to negotiate their rates on their behalf. Department of Defense agencies have agreements with the Defense Contract Management Agency and the Defense Contract Audit Agency, while other federal agencies setup interagency agreements with the Department of Interior, Interior Business Center (DOI, IBC) to negotiate indirect cost rates on their behalf. DOI, IBC has interagency agreements with many federal agencies, including EPA, to negotiate indirect cost rate agreements on their behalf.

Would a soil and water conservation district negotiate with the EPA or the Department of the Interior?

The cognizant agency for negotiating indirect cost rates shall be the Federal agency that provides your District with the majority of its direct federal funding. Please note that 2 CFR Part 200, Appendix VII(D) does not require governmental agencies that receive less than $35 million in direct federal awards to submit their indirect cost proposals to their cognizant agency for approval. They are only required to develop an indirect cost rate proposal and maintain the proposal and its documentation for audit.

Can you confirm that it is the first $25k of each subaward vs. contracts?

The definition of the Modified Total Direct Costs (MTDCs) does not specifically identify contracts, but it does include services. The MTDC means all direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs. Contracts are, as defined by 2 CFR 200.1, a legal instrument by which a non-federal entity purchases property or services needed to carry out the project or program under a federal award. Services are included in the MTDC base, but property is not.

If a nonprofit normally uses the de minimis rate, must you use the same rate as a subawardee?

The EPA's Indirect Cost policy only covers our grantees, not subawardee relationships. Recipients should have policies and procedures that cover indirect costs to subawardees. The pass-through entity and the subawardee are not required to use the same indirect cost rate. If a subawardee has a federally approved rate, the pass-through entity must honor that rate.

Does Modified Total Direct Cost (MTDC) include contracts (not subawards)?

The definition of MTDCs does not specifically include contracts but it does include services. A contract means, for the purpose of federal financial assistance, a legal instrument by which a recipient or subrecipient purchases property or services needed to carry out the project or program under a federal award. In addition, construction costs are excluded. Therefore, it depends on the type of contract.

What is the reason for excluding participant support costs from the MTDC? Does this disincentivize grant recipients from using funds to support things like event participation?

This requirement is in the regulations that OMB published, and federal agencies are required to comply with them. These regulations have been in place since 2016; however, OMB is currently updating them.

Does the $35,000,000 limit include temporary American Rescue Plan Act (ARPA) funds?

The only exception the Office of Management and Budget approved to 2 CFR 200.405(b), Allocable Costs, was to allow tribal, state, and local governments to exclude from the direct cost base any Coronavirus Aid, Relief, and Economic Security (CARES) Act funds that deny indirect cost recovery. This exception applies to CARES Act funding granted under the Treasury's Coronavirus Relief Fund (CARES Act, P.L. No. 116-136, Division A, Title V (2020), codified at 42 U.S.C. § 801) that does not permit indirect cost recovery. In addition, such CARES Act funding should not be included toward the threshold amount for indirect cost rate proposal submission requirements per 2 CFR Part 200, Appendix VII, paragraph D.1.b. All other direct federal funding should be included in the threshold amount.

If we are a subawardee to the National Fish and Wildlife Foundation (NFWF), can we still negotiate an indirect cost, or can we only do so if we receive direct funds from the EPA?

The EPA's Indirect Cost Policy only covers our direct financial assistance to recipients. It does not cover subawardees. However, grantees should have policies and procedures in place to cover indirect costs and subawardees. Please note NFWF is not part of EPA.

Are securing audited financials an eligible expense in a multiyear award, if a new rate must be negotiated?

2 CFR 200.425(a) states a reasonably proportionate share of the costs of audits required by, and performed in accordance with, the Single Audit Act Amendments of 1996 (31 U.S.C. 7501–7507), as implemented by requirements of this part, are allowable.

Our agency has an indirect cost rate for fringe and a different rate for contracts. Can you discuss why this is?

The fringe benefit rate and the indirect cost rate are used to allocate different costs. The fringe benefit rate is used to allocate allowable fringe benefit costs such as social security; employee life, health, unemployment, and worker's compensation insurance; and pension plan costs. The fringe benefit rate is applied to direct salaries to determine the amount of allowable direct fringe benefits. The indirect cost rate for grants and contracts is used to allocate administrative costs to all the projects and programs that benefitted from those costs. Indirect costs typically include human resources, payroll, accounting, rent, utilities, etc. The indirect cost rate is applied to the approved basis of application to determine the amount of allowable indirect costs for an award.

Is there a list available of approved indirect costs?

There is no universal rule for classifying certain costs as either direct or indirect (Facilities and Administrative (F&A)) under every accounting system. A cost may be direct with respect to some specific service or function, but indirect with respect to the federal award or other final cost objective. Therefore, it is essential that each item of cost incurred for the same purpose be treated consistently in like circumstances either as a direct or an indirect (F&A) cost in order to avoid possible double charging of federal awards. Guidelines for determining direct and indirect (F&A) costs charged to federal awards are provided in 2 CFR 200 Subpart E—Cost Principles.

Can you apply the 10% de minimis rate to some federal awards but not others?

Per 2 CFR 200.414(f), the de minimis rate of 10% of Modified Total Direct Costs (MTDCs) may be used indefinitely. As described in 2 CFR 200.403, costs must be consistently charged as either indirect or direct costs but may not be double charged or inconsistently charged as both. If chosen, this methodology once elected must be used consistently for all federal awards until such time as a non-Federal entity chooses to negotiate for a rate, which the non-Federal entity may apply to do at any time.

If a grant budget was prepared with one approved rate, say 20%, but the approved rate goes up in the next fiscal year to 22%, can we charge the grant the current approved rate of 22% or are we capped at charging at the budgeted rate of 20%?

You can charge the current approved indirect cost rate during its effective period; however, the total award amount will not change when the indirect cost rate changes.

Can you define participant support costs?

Per 2 CFR Part 200.1, participant support costs mean direct costs for items such as stipends or subsistence allowances, travel allowances, and registration fees paid to or on behalf of participants or trainees (but not employees) in connection with conferences or training projects. Participant support costs also includes payments to individuals who participate in grant activities but are not employees of the grant recipient.

Just for clarification, in computing for the Modified Total Direct Costs (MTDC), does it apply to employees who will be working on the grant?

The MTDC definition includes direct salaries and their applicable fringe benefits.

What if the actual indirect rate is lower than the negotiated indirect rate? At the drawdown timing, should the indirect cost rate be at the actual/lower rate or the negotiated indirect/higher rate?

Recipients can always draw down less indirect costs than allowed by their approved indirect cost rate. If you have a provisional rate approved that is significantly higher than the final rate for the same fiscal year, then you will probably want to apply the lower final rate. Final rates supersede provisional rates, so indirect cost drawdowns have to adjusted once the final rate is approved and any over recoveries have to be paid back to the federal funding agencies. Therefore, in order to prevent over recoveries, it's better to adjust the rate. However, if the approved rate is a fixed rate with carryforward, the recipient can continue to use the approved rate because the difference between the approved rate and the actual rate will be carryforward and included in a future fixed rate as a carryforward adjustment. &%23160;

Our agency has a cooperative agreement with the EPA. We do not have an indirect cost agreement, but we plan to award a subaward to a higher education institution for a specific task. Does this impact how we write a subaward agreement and how we pay them?

If indirect costs are allowed on the subaward, the university should use its federally approved indirect cost rate to calculate their allowable indirect costs for the subaward. The university's allowable indirect costs are included in their total subaward amount.

Is contractual an indirect cost?

It depends on the contract. Your cognizant Federal agency can help you determine if a contract is an allowable indirect cost. However, if a contract will only benefit one project or program, it should be charged directly to that program.

Can the E-Business (EBiz) Point of Contact (POC) be changed?

Yes. Please note that it's much easier to change the EBiz POC while the existing EBiz POC is still with your organization.

My organization's Authorized Organization Representative (AOR) has left for a different position. How can I gain access to the AOR role, as our Unique Entity Identifier (UEI) is still active?

The best way to make sure you take the correct steps is to contact Grants.gov support so they can guide you based on the roles already in your particular organization's Grants.gov registration. Please note that we encourage organizations to designate multiple AORs to avoid delays in submitting applications when an AOR isn't available.

What is the difference between initial and final proposals?

Initial proposals will often be shorter and have less detailed requirements. Final proposals will require more detailed information.

What if we do not have past performance for any grants?

The Notice of Funding Opportunity (NOFO) will explain how these applicants will be evaluated. Typically, they will receive half of the points available, as long as they follow the instructions and include a statement that they do not have any relevant past performance.

Does the EPA make pass-through awards at the state or county level that are less competitive than open federal EPA opportunities? How would I find out about pass-through EPA opportunities at the state or county level if there are such opportunities?

EPA does make pass-through awards to recipients that then issue subawards. However, as it is a grant or cooperative agreement, the recipient is responsible for disseminating information on how to apply for the subawards they plan to issue under their award. For this reason, it will vary based on the recipient and grant program.

Who should we reach out to if the funding opportunity contact doesn't answer?

You can email [email protected]; however, please note that the point of contact of the Notice of Funding Opportunity (NOFO) is the only person who can respond to questions about the opportunity. Check the Frequently Asked Questions (FAQ) website of the NOFO if there is one as your question may have already been answered in the FAQ.

Are there any advantages to Black, Indigenous, and People of Color (BIPOC) nonprofits?

EPA does not confer priority access to grants or other benefits on the basis of the racial composition/identity of an organization or its constituents, consistent with federal and constitutional law. However, depending on the specific grant program, there may be preferences or set-asides for community-based organizations serving underserved or disadvantaged communities, low-income communities, tribal communities, or those experiencing disproportionate environmental and human health burden.

Are there any advantages to Native American-owned for-profit organizations?

Yes. As stated on page 10 of the Best Practice Guide for Procuring Services, Supplies, and Equipment Under EPA Assistance Agreements (available at https://www.epa.gov/grants/best-practice-guide-procuring-services-supplies-and-equipment-under-epa-assistance):

b. Under the Indian Self-Determination and Education and Assistance Act (ISDEAA), as amended, 25 U.S.C 450-458ddd-2 tribal recipients may give preference to Indian organizations and to Indian-owned economic enterprises when awarding procurement contracts under EPA assistance agreements. EPA does not interpret the ISDEAA to, in and of itself, authorize sole source procurements with Indian organizations and Indian owned economic enterprises. However, tribal recipients may give preference to these entities when developing lists for soliciting bids and proposals.

Please note that Indian Organizations and Indian-owned economic organizations are defined at 25 U.S.C. 1452.

Any advice for an organization with multiple grant seekers (in different divisions within a single entity)?

Organizations with multiple divisions that already have a SAM registration should verify whether they have multiple SAM registrations/Unique Entity Identifiers (UEIs) or a single SAM registration/UEI. If they have multiple registrations, they should pay careful attention to the roles their staff have under the various registrations to ensure that everyone has the appropriate access in Grants.gov. Additionally, they should pay careful attention to which UEI is being used in the Workspace they are using to apply under a particular funding opportunity to ensure it's the appropriate UEI, and that it matches the organization listed on the SF-424 being submitted with the application. Applicants should also check Section III of any funding opportunity they are applying for to make note of any threshold eligibility restrictions on the number of applications an applicant submits. Organizations with multiple divisions that do not already have a SAM registration should decide whether they would like to have one registration or multiple registrations, taking into consideration the factors mentioned above. If you are unsure of the details of your organization's SAM registration(s), contact the Federal Service Desk for assistance.

Does the Agency foresee a time when application windows are open longer than 45 days?

The Agency encourages programs to provide as much time as possible for applicants to pull together the necessary materials and information to submit their proposals. Many EPA grant competitions are open for longer than 45 days. However, we are often limited by other requirements, such as legislation that calls for awards to be made by a certain date or within a specific timeframe.

What if you can’t find the assistance listing on Grants.gov?

You will not find assistance listings on Grants.gov. Assistance listings are published on SAM.gov and provide an overview of the assistance program, including a description of the program, which entities are eligible for funding, and how programs are funded. Grant opportunities are published on Grants.gov. If you are unable to locate an assistance listing or grant opportunity for a program you are interested in, try searching the EPA website (epa.gov) or contacting the program office for additional information.

If the EPA uses Grants.gov for grant submissions, do you then require a signed SF-424 sent in later to the EPA since that's not an option in Grants.gov?

Application packages submitted through Grants.gov are automatically signed when the Authorized Organization Representative (AOR) clicks the "sign and submit" button in Workspace. This includes the SF-424, which is part of the application package. If your application is selected for award and the SF-424 needs to be revised, EPA may require that you revise it and sign the revised version. In these cases, the SF-424 will be submitted via email.

What is a subaward and how is it relevant when applying for an opportunity?

As defined in 2 CFR 200.1, Subaward means an award provided by a pass-through entity to a subrecipient for the subrecipient to carry out part of a Federal award received by the pass-through entity. It does not include payments to a contractor or payments to an individual that is a beneficiary of a Federal program. A subaward may be provided through any form of legal agreement, including an agreement that the pass-through entity considers a contract. You can learn more about subawards by referring to EPA's Subaward Policy for EPA Assistance Agreement Recipients here: https://www.epa.gov/grants/grants-policy-issuance-gpi-16-01-epa-subaward-policy-epa-assistance-agreement-recipients.

I'm confused about how EPA defines a Community-Based Organization (CBO). Can we check to see if we qualify?

Community-Based Organizations are defined in the Notice of Funding Opportunities (NOFOs) where they are eligible. Please refer to the NOFO for the CBO requirements applicable to that program.

Could you clarify if sub-grantees have to follow the competitive procurement requirements as contractors?

Recipients do not have to follow the procurement standards in 2 CFR 200 for subawards. However, it is important to understand the difference between a subaward and a contract before determining whether or not you have to follow the procurement standards. You can learn more about the difference between subawards and contracts by referring to EPA's Subaward Policy for EPA Assistance Agreement Recipients here: https://www.epa.gov/grants/grants-policy-issuance-gpi-16-01-epa-subaward-policy-epa-assistance-agreement-recipients. Please note that subrecipients are not contractors and contractors are not subrecipients.

Do you have any web links or tools to assist with questions focused on Justice40 issues, eligibility criteria, etc.?

Yes, you can find information about Justice40 at EPA on the EPA website: https://www.epa.gov/environmentaljustice/justice40-epa/.

You said you don't help folks with applications, because you don't want to give anyone an unfair advantage. There are organizations who have greater capacity to complete your complicated applications. Doesn't that alone create an unfair advantage?

EPA Order 5700.5A1: EPA's Policy for Competition of Assistance Agreements requires that EPA conduct fair competitions and that EPA doesn't provide a competitive advantage to any one applicant or group of applicants. While some organizations may inherently be more experienced or have more capacity than others, that is not within EPA's control. Notwithstanding that, we do ensure that all applications are evaluated using the evaluation criteria in the Notice of Funding Opportunity (NOFO). While EPA strives to simplify requirements where possible, we must comply with the statutes and regulations that govern our grant programs, and grant recipients must do the same. Additionally, EPA works to ensure that smaller organizations with less capacity are able to compete effectively in our grant competitions in various ways as appropriate, including new applicant set-asides, informational webinars (see the specific NOFO for information), training opportunities, and by making technical assistance available. In addition, EPA's Environmental Justice Thriving Communities Technical Assistance Centers are available to provide technical assistance to applicants and grantees. Further information can be found here: https://www.epa.gov/environmentaljustice/environmental-justice-thriving-communities-technical-assistance-centers Submitting a Request for Technical Assistance.

Do we include salary expenditures in our Minority Business Enterprise/Women Business Enterprise (MBE/WBE) reporting?

Recipients must complete EPA Form 5700-52A to report MBE/WBE utilization under EPA assistance agreements when the combined total of funds budgeted for procuring supplies, equipment, construction, or services exceeds the Simplified Acquisition Threshold ($250,000). Annual reports are due by October 30^th of each year. Final reports are due by October 30^th or 120 days after the end of the project period, whichever comes first.

Is the $250k threshold applicable to the total grant agreement budget, or just the equipment, supplies, and services portion of the budget?

If the combined total of funds budgeted for procuring supplies, equipment, construction, or services exceeds the $250K threshold, then a recipient must negotiate Fair Share Objectives (FSO).

Are the Fair Share Objectives (FSO) obligations of other EPA grant recipients public?

No.

Do State Revolving Fund (SRF) subrecipients over $250k have to create a Fair Share Objective (FSO)? And if so, do they have to go through EPA approval?

Yes, the only recipients that are exempt are recipients of an EPA financial assistance agreement in the amount of $250K or less for any single assistance agreement, or of more than one financial assistance agreement with a combined total of $250K or less in any one fiscal year. No, FSOs are negotiated though the loan recipient. See 40 CFR Part 33 Section 402.

Are the regulations still the same as before? The Fair Share Objectives (FSO) goals were not in place for a few years.

EPA is reinstating the older requirements of FSOs.

Please define fair share as to intent and performance.

A fair share objective is an objective based on the capacity and availability of qualified, certified Minority Business Enterprises (MBEs) and Women Business Enterprise (WBEs) in the relevant geographic market for the procurement categories of construction, equipment, services, and supplies compared to the number of all qualified entities in the same market for the same procurement categories, adjusted, as appropriate, to reflect the level of MBE and WBE participation expected absent the effects of discrimination.

We will award Bipartisan Infrastructure Law (BIL) grants for over $250,000. This will take a significant amount of work. Can you develop Fair Share Objectives (FSOs) for each region?

No, unfortunately regional FSOs will not be available. However, recipients can accept the goals from a lead state agency as long as it's within the same geographical market.

For recipients that receive multiple EPA grants, such as states, do they have to create Fair Share Objectives (FSOs) for every single grant? Or can the recipient do just one and cover grants received within the 3 years?

Once FSOs are negotiated, they remain in place for three years. 

Can you elaborate on how to determine Fair Share Objectives (FSOs)?

The FSO negotiation process includes many flexibilities to recipients to craft their FSO. Such flexibilities include:

• Allowing multiple constructs of "Relevant Geographic Market" (scope of the data analysis).
• Offers multiple methods for using different data sources (i.e., Census Data, Disparity Studies, etc.).
• Allowing the combination of the four categories into one goal (construction, equipment, services, and supplies).
• Allowing the combination of Minority Business Enterprise (MBE) goal and Woman Business Enterprise (WBE) goal into one consolidated goal.
• Allows recipients to designate a lead agency for negotiation.
• Allows recipients to adopt FSOs of another recipient with special considerations.

These are goals not requirements, correct? Are we required to meet a certain percentage?

Fair Share Objectives are not quotas; therefore, compliance with the specific percentage cannot be enforced.

For the exemptions, would the $250k or less be the amount reimbursed in a year or a grant award amount? For example, a grantee received a $500k grant but only $200k is spent each year. Would they then be exempt?

No, the $250k or less exemption is not based on the reimbursement amount. This exemption is based on the total amount of the assistance agreement (EPA and Recipient Share).

Do you have a few websites we can use for Fair Share Objective (FSO) research?

The Department of Transportation and Census Bureau websites are useful for FSO research.

Do State Revolving Fund (SRF) subrecipients over $250k have to create a Fair Share Objective? And if so, do they have to go through EPA approval or can they be approved by the State SRF program?

Yes, EPA approval is required. You can also accept the goals of the State.

Do states need to determine their Fair Share Objectives (FSOs) or does EPA do that for us?

The recipients must determine their FSOs.

Do subrecipients of an EPA award need to have separate Fair Share Objective (FSO) obligations?

No. Subrecipients of an EPA award do not have separate FSO obligations.

Did I hear correctly that we cannot draw funds for a grant until the Fair Share Objectives (FSOs) has been approved by EPA for that grant?

Minority Business Enterprise (MBE) and Women Business Enterprise (WBE) FSOs must be agreed upon by the recipient and EPA before funds may be expended for procurement under the recipient's financial assistance agreement.

Where can we find the Fair Share Objective goal that EPA has established?

The statutory requirements can be found on the Disadvantaged Business Enterprise (DBE) Program Requirements website.

Does the EPA publish examples of Fair Share Objectives (FSOs)?

Not currently.

Are there any plans to conduct a training covering the entirety of Title 40/ Chapter I / Subchapter B / Part 33? I'm especially interested in Subpart C: Good Faith Efforts, and Subpart E: Recordkeeping and Reporting.

Training is a key component of EPA's Disadvantaged Business Enterprise (DBE) Program. We are in the process of developing more training.

So, the Fair Share Objectives (FSOs) requirement pretty much applies to all grants that started on October 1, 2023, or later, correct?

Effective October 1, 2023, means that all new awards made on or after that date will have a term and condition requiring recipients to comply with the 40 CFR Part 33, Subpart D. An FSO is an objective based on the capacity and availability of qualified, certified Minority Business Enterprises (MBEs) and Women Business Enterprises (WBEs) in the relevant geographic market for the procurement categories of construction, equipment, services, and supplies compared to the number of all qualified entities in the same market for the same procurement categories, adjusted, as appropriate, to reflect the level of MBE and WBE participation expected absent the effects of discrimination.

How do you meet poster requirements with remote staff?

You may distribute the poster to remote staff electronically.

Where can we obtain the posters mentioned during the Fraud Awareness and Prevention Webinar presentation?

Materials from the webinar are available on the Fraud Prevention and Awareness webinar webpage.

Do most fraud investigations involve large programs? Most of our grants are $500,000 or less.

There is not a prescribed dollar amount for investigations, and the grant amounts vary.

Is there a requirement for copies of documents, emails etc., when reporting a suspected violation?

There is no requirement to provide copies of documents when reporting a suspected violation. Please provide all the information available to you.

For first time recipients of grants, what general advice do you have to be in compliance?

Ensure you are aware of all your responsibilities as a grantee by attending webinars, taking trainings, and reading all instructions provided to you.

On large sites, where do you recommend posting the posters?

We recommend locating posters near the other Federal required posters, such as required Occupational Safety and Health Administration or Equal Employment Opportunity posters.

Is Davis-Bacon applicable to the Diesel Emissions Reduction Act (DERA) and the Charging and Fueling Infrastructure (CFI) programs?

Yes, the Davis-Bacon Act's prevailing wage requirements apply to projects funded by the DERA and CFI programs.

1. DERA: The Environmental Protection Agency (EPA) administers the DERA program, which provides grants and loans to retrofit or replace older diesel engines to reduce emissions. Davis-Bacon Act requirements apply to DERA-funded construction projects if federal funds are used for construction, alteration, or repair of public works.

2. CFI Program: The Charging and Fueling Infrastructure program, part of the Bipartisan Infrastructure Law (BIL), aims to expand electric vehicle (EV) charging and alternative fueling infrastructure. The Davis-Bacon Act applies to construction projects funded under the CFI program to ensure that workers are paid locally prevailing wages. In summary, if the DERA or CFI programs involve construction, alteration, or repair projects, the Davis-Bacon Act's requirements for prevailing wages are applicable.

Where can I submit questions regarding procurement regulations and grant/tax credits?

1. Government Agencies

• Small Business Administration (SBA): For small business-related procurement questions, the SBA is a good resource.
• Grants.gov: If you have questions about federal grants, you can use their support center or help desk.
• Internal Revenue Service (IRS): The IRS offers various resources, including online FAQs and helplines, for questions about tax credits.

2. State and Local Government Offices

• Your state's Department of Commerce or Economic Development might offer guidance on procurement and grant opportunities, as well as tax incentives.
• Local government procurement offices can also provide specific information regarding local regulations.

3. Professional Organizations

• National Institute of Governmental Purchasing (NIGP): They offer resources and support for procurement professionals.
• Council on Governmental Relations (COGR): Focused on federal grants management.

4. Consulting Firms and Legal Advisors

• Many consulting firms specialize in government procurement and grants and can provide expert advice for a fee.
• Tax attorneys or Certified Public Accountants with experience in grants and tax credits can be valuable resources for complex questions.

5. Online Forums and Communities

• GovWin IQ by Deltek: A platform for businesses pursuing government contracts, where you can ask questions and connect with others in the field.
• Reddit: Subreddits like r/grants or r/tax might have community members who can provide advice.

6. Official Websites

• Directly through the Federal Register or specific government procurement portals (like SAM.gov) for clarifications on regulations.

These channels should cover a wide range of questions related to procurement regulations, grants, and tax credits.

If we are receiving zero grant funds but are getting tax credits, do Davis-Bacon rules apply?

Generally, Davis-Bacon applies to federally funded construction projects. If no federal funds (grant funds) are involved and only tax credits are received, Davis-Bacon typically would not apply. However, specific cases may vary, and it's advisable to consult with a legal expert or the Department of Labor (DOL).

Does the force account labor exemption only apply to government entities? What about grants/subgrants from the prime recipient (state) to entities such as rural electric cooperatives or private for-profit utilities using in-house labor?

The force account labor exemption generally applies to work performed by a government entity's own employees. For non-government entities, like rural electric cooperatives or private utilities, this exemption might not apply. For specific situations, check with the Department of Labor (DOL) or legal counsel.

Does Davis-Bacon apply to installing septic systems for a State Revolving Fund (SRF) grant funded with EPA funds? Is installing a septic system “treatment work?”

Yes, Davis-Bacon may apply if the project is funded with federal SRF grants. Installation of septic systems could be considered "treatment work" under the Clean Water Act if it involves the construction, alteration, or repair of public works. The EPA often requires Davis-Bacon compliance for SRF-funded projects.

Do projects installing new electric vehicle (EV) charging infrastructure trigger Davis-Bacon? Does this count as construction?

Yes, Davis-Bacon may apply if federal funds are used, and the installation is considered construction, alteration, or repair of public works. EV charging infrastructure installation could be categorized as construction, depending on the scope and funding source.

Is there a clear definition of construction? Particularly, under removal response action, what constitutes as construction?

The Department of Labor (DOL) defines construction broadly, including alteration, repair, remodeling, or installation. Under removal response actions, activities considered as construction may include site preparation, removal, installation of equipment, etc. For specific definitions, refer to the DOL or consult legal guidance.

If the project is not on a permanent job site, for example, if activities include remediation or activities on or in personal residences that are not continuous, where would the poster be posted?

The Department of Labor (DOL) requires that Davis-Bacon posters be displayed in a visible and accessible location where employees can see them. For non-permanent or personal residence job sites, it might be necessary to display posters at the main project office or another centralized location where workers gather.

So, if there is no mention of Davis-Bacon in the grant agreement, does it not apply?

The absence of a mention in the grant agreement does not necessarily exempt a project from Davis-Bacon requirements if the project otherwise meets the criteria for Davis-Bacon applicability. It's essential to verify with the grantor or legal counsel (Office of General Counsel).

Does the Code of Federal Regulations (CFR) specify bi-weekly payrolls?

The CFR under the Davis-Bacon Act requires that contractors submit weekly certified payrolls, not bi-weekly.

Does Davis-Bacon apply to grants for Tribal entities?

Yes, Davis-Bacon can apply to projects funded by federal grants, even for Tribal entities, particularly if the projects involve construction, alteration, or repair of public buildings or public works.

Is there a Spanish version of the Davis-Bacon Interview Form?

Yes, the Department of Labor (DOL) provides certain forms, including the Davis-Bacon Employee Interview Form (Form WH-347), in Spanish.

Can we use a different interview form?

Generally, the Davis-Bacon Act requires the use of specific forms for worker interviews, such as the Standard Form WH-347. However, alternative forms may be used if they capture all the required information and are approved by the Department of Labor (DOL).

What is the maximum number of hours per week before the time and a half-requirement begins?

Under the Fair Labor Standards Act (FLSA), time-and-a-half (overtime) pay is required for hours worked over 40 in a work week.

Are the forms available as Word documents?

Davis-Bacon forms, such as the WH-347 payroll form, are typically available in PDF format on the Department of Labor's (DOL) website. Some forms may also be available in Word format through other sources or by request.

Can Davis-Bacon interviews be done by a borrower, or can it be done on a Revolving Loan Fund (RLF)?

Interviews must be conducted by the appropriate entity responsible for ensuring Davis-Bacon compliance. This typically falls to the prime recipient or their designated representative, not the borrower.

Who conducts the interviews? Is it the contractor or the EPA? Are the interviews part of the Davis-Bacon terms and conditions?

Interviews are generally conducted by the contracting agency, prime recipient, or an authorized representative, not by the contractor. Yes, conducting interviews is part of the Davis-Bacon compliance requirements.

Does the EPA need to review contracts and bids for Community Grants/Earmarks?

The EPA may need to review contracts and bids to ensure compliance with federal requirements, including Davis-Bacon, if applicable. This review helps ensure adherence to terms and conditions.

When determining the 45-mile zone radius, is this measured by road miles or direct radius mileage?

Typically, a 45-mile radius is measured as a straight-line distance, or "as the crow flies," rather than by road miles.

How is public works defined for Davis-Bacon?

Public works projects under Davis-Bacon generally involve construction funded by the federal government and intended for public use or benefit. If the project does not meet these criteria, it may be exempt from Davis-Bacon requirements. However, specific cases can vary, and legal guidance or Department of Labor (DOL) consultation is recommended.

Will Solar for All grants have Davis-Bacon requirements? The Notice of Funding Opportunity (NOFO) did not mention Davis-Bacon.

If federal funds are used for construction projects under Solar for All grants, Davis-Bacon requirements may apply even if not mentioned in the NOFO. Verification with the grant officer or Department of Labor (DOL) is advisable.

Can you clarify if Davis-Bacon applies to Brownfields 128(a), even though construction is one of the budgeted categories?

Davis-Bacon may apply to Brownfields 128(a) projects if they involve construction, alteration, or repair of public works. Each grant and project should be reviewed for specific applicability.

Is Davis-Bacon required for the entire project if we have additional funds outside of federal funds? Do we have to follow Davis-Bacon for the entire construction project?

Yes, Davis-Bacon requirements generally apply to the entire project if federal funds are used, even if combined with non-federal funds. All construction work under the contract must comply.

Is there a page that defines job classes? Specifically, what job class defines a pipefitter?

The Department of Labor's Wage Determinations website (SAM.gov) provides job classifications and descriptions. A pipefitter's duties are typically defined under "Plumber, Pipefitter, or Steamfitter" in the relevant wage determination.

Does the grant recipient conduct the worker interviews?

Yes, the grant recipient or their designated representative is responsible for conducting Davis-Bacon worker interviews to ensure compliance with wage requirements.

If a contractor issues an addendum a year after their bid/award date, do they have to update and operate under the wage determination based on the addendum date? Does this apply to monetary changes too or just work/construction addendums?

Wage determinations in effect at the time of contract award generally apply for the duration of the project. However, substantial changes, such as addendums, may require updates to the wage determination. Legal or Department of Labor (DOL) guidance is recommended.

Does the definition of construction include streambank restoration or erosion control activities such as berms, rock structures, etc.?

Yes, these activities are typically considered construction under Davis-Bacon, as they involve altering or repairing public works.

Are infrastructure and remediation projects the only types of projects subject to Davis-Bacon and Related Acts (DBRA)?

No, DBRA applies to a broader range of projects, including construction, alteration, and repair of public buildings and works, regardless of the specific type of project.

When undertaking residential contracts, does compliance paperwork need to be completed for each project or is some aggregation of the projects permitted for compliance purposes?

Compliance paperwork typically needs to be completed for each individual project unless the projects are part of a larger contract that aggregates multiple works. Consult with the Department of Labor (DOL) for specific guidance.

Our Indefinite Delivery, Indefinite Quantity (ID/IQ) contracts include language related to minimum wage laws. Do we need to amend the contracts to reference the Davis-Bacon Act?

If the contract involves federal funds for construction, Davis-Bacon requirements should be included, and the contract may need to be amended accordingly.

Are our state recipients who receive grants every year getting training?

Yes, federal agencies like the EPA often provide training to state recipients on compliance with Davis-Bacon and other grant conditions.

The Terms and Conditions seem oriented to workers working full days or weeks, but EPA grants can include residential projects. How do the 8-hour and weekly wage requirements apply to a sub-contractor who may work only a few hours on an EPA funded project?

Davis-Bacon requirements apply to all hours worked on federally funded projects, even if the worker only spends a short time on the project. The wage rate and fringe benefits must be paid for every hour worked on the project, regardless of the total hours in a week.

How often do wage rates change? Do they change frequently?

Wage rates can change periodically based on surveys conducted by the Department of Labor (DOL). The frequency can vary, but they are typically updated annually or when significant wage changes in the industry occur.

As a grant recipient, would our project officer alert us of any change in Davis-Bacon requirements during the performance period of a grant?

While project officers may provide updates, it is ultimately the responsibility of the grant recipient to stay informed about Davis-Bacon requirements throughout the performance period.

For the State Revolving Fund (SRF) program, who needs to verify that the correct wage determination is being used? When should that check occur?

The grant recipient or their designated representative is responsible for verifying that the correct wage determination is used. This should occur at the time of contract award and be checked again before construction begins.

Regarding the wage lock, what about promotions or staff changes that might increase wages?

Promotions or wage increases can be implemented, but they must meet or exceed the locked wage determination for the project. The wage determination sets the minimum, not the maximum, wage.

How can you change wage rates after a contract is awarded? The contract price includes proposed rates. This would be a disadvantage if higher wage rates became effective.

Typically, wage rates locked in at the time of the contract award remain in effect for the project. If changes are necessary, they must be negotiated, and contract adjustments may be required.

Who could a grant recipient (or a subrecipient) contact to discuss if certain types of work are subject to Davis-Bacon?

The grant recipient or subrecipient should contact the Department of Labor's Wage and Hour Division or consult with their project officer or legal counsel for clarification.

Who identifies the specific labor category for the wage determination? Is it the contractor or the grant recipient?

The grant recipient or their designated representative typically identifies the specific labor category for the wage determination based on the work being performed.

Should both our state's prevailing wage rates and Davis-Bacon wage rates be included in the specifications so the contractor will have to pay their employees the higher wage? Or do you have to do a project specific Davis-Bacon wage rate request?

Contractors are required to pay the higher of the two rates—federal Davis-Bacon or state prevailing wage. Both rates should be included in the project specifications.

When do we submit the certified payrolls to the EPA?

Certified payrolls are typically submitted weekly to the contracting agency or recipient overseeing the project. The EPA may require copies as part of compliance reviews.

Other than trying to determine if we fall within the heavy construction area, is there another way to know if our EPA contract requires Davis-Bacon? Is it listed in all grant agreements or only those specifically subject to this act?

Davis-Bacon applicability is generally stated in the grant agreement. If there is uncertainty, it's advisable to confirm with the EPA or consult the grant terms and conditions.

How do we know when federal wages apply? Will it be in the grant contract?

Yes, federal wage requirements, including Davis-Bacon, will be specified in the grant contract if they apply.

Does the use of the higher wage determination between the federal and state rates apply to all states?

Yes, the higher of the federal Davis-Bacon or state prevailing wage rate must be paid, regardless of the state where the work is performed.

Can you clarify if Davis-Bacon requirements apply to financing programs by EPA grantees? If an EPA grantee is making loans, is the recipient a contractor?

Davis-Bacon applies if federal funds are used for construction projects. If a grantee makes loans to fund construction, the recipient of the loan is considered a contractor, and Davis-Bacon requirements may apply.

Does Davis-Bacon apply to certain projects under new grant programs (e.g. the Environmental Justice Government-to-Government program (EJG2G))? Does it apply to activities like expanding solar photovoltaic (PV) systems, energy efficiency upgrades, etc.?

If these activities involve construction, alteration, or repair of public works and are federally funded, Davis-Bacon requirements likely apply. The specific terms of the grant agreement will clarify applicability.

Outside of construction contracts, does the EPA apply prevailing wages when reviewing the remaining payroll on their grants? Should the wage determination be used for those positions as well?

Prevailing wage requirements generally apply to construction, alteration, or repair projects. &%23160;Other positions may not be subject to Davis-Bacon but must comply with any applicable wage laws.

Could you please share the link for the comparison chart showing the recent changes?

The comparison chart of recent Davis-Bacon changes can typically be found on the Department of Labor's website or through the specific federal agency managing the grant.

Is there somewhere that defines what type of jobs are considered Heavy, Highway, or Residential? For example, we do broadband projects, and we struggle to determine what category projects would fit under.

The Department of Labor (DOL) provides definitions for these categories on their wage determinations website (SAM.gov). Generally, heavy construction includes large-scale infrastructure projects, highway construction involves roadways, and residential construction pertains to housing projects.

What is the difference between building and heavy construction?

Building construction typically involves the construction of structures such as schools, offices, and other buildings. Heavy construction includes large-scale infrastructure projects like bridges, dams, and highways.

Does Davis-Bacon and Related Acts (DBRA) apply to all EPA grants? Are retrofits or installations of stormwater infrastructure considered construction under DBRA?

DBRA applies to EPA grants that involve construction, alteration, or repair of public works. Retrofits and installations of stormwater infrastructure are typically considered construction and thus subject to DBRA.

How do we identify the Davis-Bacon requirements for residential?

Residential Davis-Bacon requirements can be identified by reviewing the specific wage determination for residential projects in the area where the work will be performed, available on SAM.gov.

Is the Davis-Bacon fringe rate added to the Davis-Bacon rate? Does the Davis-Bacon rate already include fringe?

The Davis-Bacon wage rate typically consists of the basic hourly rate plus any fringe benefits. If the employer does not provide the fringe benefits, they must be added to the hourly wage rate to meet the total required wage.

We usually pay above prevailing wage, and this has stopped us from applying for EPA grants or federal grants with Davis-Bacon requirements. Is there any flexibility in the regulation to allow payment of above-standard prevailing rates?

There is no restriction on paying wages above the Davis-Bacon prevailing wage rates. Employers can pay higher rates, but they must at least meet the minimum Davis-Bacon requirements.

If a site has environmental remediation and construction, how do we separate the projects from the Davis-Bacon Act?

If both remediation and construction are part of the same project and are federally funded, Davis-Bacon likely applies to the entire project. Projects may not be easily separable for Davis-Bacon purposes.

Is this still true that the Davis-Bacon Act is applicable to only 319 grants that fund construction of treatment works?

Yes, the Davis-Bacon Act applies to 319 grants if they involve the construction, alteration, or repair of public works, including treatment works as defined by the Clean Water Act §212.

In SAM.gov, on the wage determinations page, are fringes listed in dollars or percentages?

Fringes on the wage determinations page in SAM.gov are typically listed in dollar amounts.

Are Tribes exempt from creating Fair Share Objective (FSO) goals?

Tribal and Intertribal Consortia recipients of program grants can be included in Performance Partnership Grants (PPGs) under 40 CFR Part 35, Subpart B. Tribal and Intertribal consortia recipients of PPG eligible grants are not required to apply the fair share objective requirements of this subpart to those grants. This exemption is limited to the fair share objective requirements of this subpart.

EPA provides most grant funding to Tribes as “cooperative agreements.” Is that also considered a “grant” for the purposes of Fair Share Objectives (FSO)?

Yes. We tend to use the term “grants” because it is simpler than saying “assistance agreements” or “grants and cooperative agreements,” but this applies to grants and cooperative agreements equally.

For disparity studies, how do you find out if some agency in your jurisdiction has completed one in the past 10 years?

The Census Bureau’s website.

If an entity receives a total $1 million EPA grant and then provides subgrants less than $250k, is it exempt from negotiating Fair Share Objectives?

If the combined total of funds budgeted for procuring supplies, equipment, construction, or services exceeds the $250,000 threshold, then a recipient must negotiate Fair Share Objectives.

Is there a specific format or layout that the Fair Share Objectives should be drafted in?

There is no specific format. However, we have some draft templates.

What does it mean to be Minority Business Enterprise/Woman-Owned Business Enterprise (MBE/WBE) certified?

Under EPA’s 8% statute, an entity must establish that it is owned or controlled by socially and economically disadvantaged individuals who are of good character and citizens of the United States. The statute presumes women to be socially and economically disadvantaged individuals.

Under EPA’s 10% statute, an entity must establish that it is owned and controlled by socially and economically disadvantaged individuals who are of good character and citizens of the United States. The statute presumes Historically Black Colleges and Universities, Black Americans, Hispanic Americans, Native Americans, Asian Americans, Women and Disabled Americans are socially and economically disadvantaged individuals.

What is a North American Industry Classification System (NACIS) code?

The NAICS is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy.

What is the database that we can use to determine available Minority Business Enterprise/Woman-Owned Business Enterprise (MBE/WBE) in my area?

EPA does not have a directory or list of certified MBEs/WBEs. However, EPA recommends checking with the Small Business Administration, U.S. Department of Transportation, or the state in which the organization intends to do business. One possible resource that may be useful is the U.S. Department of Transportation website.

Who are the Fair Share Objectives (FSO) coordinators in each EPA Region?

The Disadvantaged Business Enterprise (DBE) Regional Coordinators information can be located at the EPA DBE Program Coordinators webpage.

Would an Agency within a State need a separate Fair Share Objective (FSO) from the State FSO? Or can the Agency use the State FSO?

A recipient may use, as its base figure, the FSO of another EPA recipient if the recipient demonstrates that it will use the same, or substantially similar, relevant geographic market as the other EPA recipient’s approved FSO.

Do the training requirements flow down to subrecipients?

The EPA Grants Management Training for Applicants and Recipients and the How to Develop a Budget training requirements do not flow-down to subrecipients. We would encourage them to take the training, but they are not required to.

Is it required that one staff member complete both the EPA Grants Management Training for Applicants and Recipients and the How to Develop a Budget training?

We recommend that a single individual completes the training, but we are not requiring that a single individual completes all the training. When we check for completion, we are searching by your Unique Entity Identifier (UEI) – not an individual's name. However, we do recommend that someone is from the EPA Key Contacts Form.

Is registration on both SAM.gov and Grants.gov required for all grants or are there specific grants offered on each individual website?

SAM.gov and Grants.gov registration is required to apply for all federal grants. All federal grant opportunities are published on Grants.gov.

Is there a signup option that does not charge?

There is no cost to register on Grants.gov, SAM.gov, or for the EPA listserv.

If you are applying on Grants.gov, do you still need to do stuff on SAM.gov too? Do they go hand in hand, or are they completely separate entities?

They are separate registrations but do coordinate to a certain extent. You first need to register on SAM.gov to receive a Unique Entity Identifier (UEI), complete your registration (note that receiving a UEI does not mean your registration is complete), and designate an E-business point of contact. Then, use the UEI along with other information to register with Grants.gov. Additionally, there are other tasks you'll need to complete in Grants.gov before being able to apply such as identifying Authorized Organizational Representatives (AORs), creating a workspace, etc. Please refer to the How to Register to Apply for Grants webpage and first several slides in this presentation for detailed information and links.

Will an applicant be notified if their submission is late (e.g. 5 minutes past deadline)?

Applicant submissions are time and date stamped by Grants.gov. You will be unable to submit if it’s after the deadline.

For registration, on SAM.gov and Grants.gov, do you need to register every year / re-register or is it one and done? Then you just update assigned roles as personnel changes?

You need to renew your SAM.gov registration annually.

There are times where the federal award allows for expenditures to happen prior to the award date. Do we have to reach back out to EPA prior to allowing this for our subrecipients?

Yes, you should be in touch with the Program Office before making any grant expenditures. It varies from program to program.

If you are working on a grant now that will start on October 1st or later, can you incorporate the 2 CFR 200 updates now?

The updates are not legally effective until October 1, 2024. The set of regulations that will apply to your project is based on the award date of your grant. If the grant is awarded before October 1, 2024, then you would comply with the regulations in effect at the time of award. If the grant is awarded after October 1, 2024, you would comply with the updated regulations.

Would a Council of Government assisting a city on a grant be considered a subaward?

The definition of Local government in 2 CFR 200.1, provides that Councils of Governments are classified as local governments even if they are incorporated as nonprofits under state law. Transactions between legally distinct units of government (e.g. a state providing funds to a local government) will, in almost all cases, be either subawards or intergovernmental agreements under 2 CFR 200.318(e) rather than procurement contracts since governmental units do not provide services on commercial terms. See Appendix A of EPA’s Subaward Policy.

Are contractors required to have a Unique Entity Identifier (UEI)?

Federal regulations do not require that recipient contractors have UEIs.

Is the change in de minimis rate the only updated regulation that won't apply to grants awarded this summer? Or will the Modified Total Direct Cost (MTDC) subaward threshold also not be increased from $25K to $50K when an unrelated amendment is processed?

Grants awarded before September 30th are not subject to the updated regulations, including the updated de minimis rate. Grants awarded after October 1st will be subject to the updated 2 CFR 200 requirements.

If a state grantee is contracting out to a separate branch of their government, like an IT office, for work related to their project that needs to be funded separately, should this be considered as a contract or as a subaward?

Transfers of funds between agencies of the same unit of government are typically not procurement contracts for the purposes of the Uniform Grant Guidance (UGG) unless state law provides otherwise. EPA also does not consider intragovernmental transfers to be subawards subject to the UGG’s management and monitoring requirements of 2 CFR 200.332 unless state law provides otherwise.

Do the state's own laws go into the subrecipient/contractor analysis?

The legal status of an organization is an important factor to consider when determining whether a transaction is a subaward or procurement contract. However, it is not necessarily determinative of whether the transaction at issue is a subaward or procurement contract. As provided in 2 CFR 200.331, recipients must exercise sound judgment in deciding whether a transaction is a procurement contract or subaward. The substance of the agreement between the State and subrecipient/contract is also an important factor to determine whether a transaction is a subaward or contract. See Appendix A of EPA’s Subaward Policy.

In general, how is the line drawn between a contract and a subaward?

Pass-through entities make subawards to other organizations to carry out a portion of the Federal award under terms that establish a financial assistance relationship to accomplish a public purpose that is authorized under a Federal program. Subrecipients only receive reimbursement for their actual direct or approved indirect costs such that they do not “profit” from the transaction and subrecipients are subject to the same Federal requirements as the pass-through entity. Procurement contractors typically provide goods and services on commercial terms, operate in a competitive environment and a reasonable profit is allowable. Appendix A of the subaward policy provides helpful guidance for distinguishing between contractors and subawardees. Generally, transactions with for-profit firms are NOT subawards.

What about grants that were notified in 2023, but we haven't actually received our award, and at the pace EPA is distributing the competitive awards, it may be after October 1, 2024. Will the new 2 CFR updates apply?

The updates are not legally effective until October 1, 2024. The set of regulations that will apply to your project is based on the award date of your grant. If the grant is awarded before October 1, 2024, then you would comply with the regulations in effect at the time of award. If the grant is awarded after October 1, 2024, you would comply with the updated regulations.

We are proposing to hire a community liaison through the environmental consultant hired to manage our grant. Would this be considered a subaward or just a contract with the consultant? Any special requirements doing it this way?

It depends on the nature of the relationship between your organization and the environmental consultant. Subrecipients can provide subawards or contracts to other entities. Contractors can only provide subcontracts to other entities.

We set up a task order under an existing agreement for our state university to help us. Would that be considered “interagency” and not a subaward or are all universities considered subawardees to states?

If state law provides that state universities are legally separate from other components of the state for the purposes of financial transactions, then EPA would consider the transaction to be a subaward for the purposes of the Uniform Grants Guidance (UGG). Please refer to Appendix A to the EPA Subaward Policy. There may be unique situations in which state law characterizes transfers of funds between state agencies and state universities as Interagency Service Agreements or a similar designation for an internal financial transaction because state universities are instrumentalities of state government. If that is the case, the governing regulation would be 2 CFR 200.417. There may also be other unique situations in which state law provides that transactions between state universities and other components of the state government are procurement contracts in all cases. As provided at 2 CFR 200.317, states follow their own procurement procedures.

Is one local government who has an ILA and work assignment to assist funding another local government, would that be an intergovernmental transfer?

Transactions between legally distinct units of government will in almost all cases be either subawards or intergovernmental agreements under 2 CFR 200.318(e). Intergovernmental agreements are recognized at 2 CFR 200.318(e) as mechanisms for two different units of government (e.g. a state and local government or a city government and a county government) to use to procure or use common goods and services.

If participant costs aren't subawards, how are they allocated?

Participant Support Costs (PSCs) are defined at 2 CFR 200.1 as: “ . . . direct costs for items such as stipends or subsistence allowances, travel allowances and registration fees paid to or on behalf of participants or trainees (but not employees) in connection with conferences or training projects.” EPA regulations at 2 CFR 1500.1 expand the definition of PSCs to include subsidies, rebates and other payments to program beneficiaries to encourage participation in statutorily authorized environmental stewardship programs. PSCs are allowable with prior EPA approval as provided at 2 CFR 200.456. Recipients of EPA awards should include estimated costs for direct PSC payments in a separate line item in the “Other” budget object class category on their Standard Form (SF) 424A, Application for Federal Assistance and budget detail narrative. Recipients track and report on PSC expenditures under this category. For more information, see EPA Guidance on Participant Support Costs (pdf) (213.02 KB) .

If we submit an application this summer and are awarded after 10/1/24, will we be able to revise our indirect cost from 10% to 15% per the new CFR 200 guidelines?

The updates are not legally effective until October 1, 2024. The set of regulations that will apply to your project is based on the award date of your grant. If the grant is awarded before October 1, 2024, then you would comply with the regulations in effect at the time of award. If the grant is awarded after October 1, 2024, you would comply with the updated regulations.

Just to clarify, the application should include copies of the subaward agreements?

Copies of subaward agreements are not always required to be submitted with a grant application. Check the requirements for the specific grant you are applying for. However, grant applications must include information on the types of subawards you plan to make.

Can you clarify what you mean when you say, “prevailing wage determination must be included in solicitation documents?” Can EPA program officers provide review and feedback on solicitations prior to them going public?

EPA grant recipients, subrecipients, prime contractors, and subcontractors must include the link to the Contract Provisions for Davis-Bacon and Related Acts (DBRA) in all contracts that are subject to DBRA requirements.

Does Davis-Bacon only apply to construction projects?

Davis-Bacon applies when required by Federal program legislation (e.g., the grant statute such as the Clean Air Act or Clean Water Act). The Federal program legislation will define construction project for the purposes of Davis-Bacon.

Is there a way for interested contractors to find project opportunities?

EPA does not have a system for contractors to find project opportunities.

Does EPA have guidance for posting of civil rights information within remote organizations?

The notice of nondiscrimination, for example, needs to be posted in a prominent location. As a best practice, recipients/subrecipients could post their civil rights information on a webpage on their websites.

For tax purposes, there are certain exceptions to Build America, Buy America (BABA) and Davis-Bacon and Related Acts (DBRA) from Treasury. Do subawardees and contractors just follow Treasury’s guidance?

No, EPA grantees and subrecipient follow EPA’s interpretation of BABA and DBRA. Treasury’s interpretation of BABA or DBRA are not binding on EPA. EPA does not provide tax advice.

Are the civil rights requirements only for organizations with 15 or more employees?

Applicants for and recipients of EPA financial assistance (including any subrecipients) must adopt certain required procedural safeguards, including:

Could you clarify if there is a cap in the amount of money a sub-awardee can receive from the lead applicant or pass-through entity?

There is no cap. However, pass-through entities cannot use subawards to transfer or delegate their responsibility for successful completion of their EPA assistance agreement.

Is there a specific list of subaward grant opportunities online?

No - the grant recipient is the one who would make the subaward (not EPA).

Is a subawardee the same thing as a subrecipient?

Yes.

Who is the entity that would be responsible to comply with the reporting requirement which requires pass-through entities to report subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System?

The grant recipient is responsible for this reporting requirement. Please see General Term & Condition 15. Reporting Subawards and Executive Compensation for more information.

If a line item for subawards is included in the approved award budget, would a second approval be needed when selecting the specific subaward entities?

For most programs no. Some programs may have different requirements so you should check with your Project Officer.

Does a subawardee need to have competitive procurement for contracts or regardless of the cost can they just pick any entity they'd like without any competition?

The competitive procurement requirements flow-down to subawardees. Subawardees must use competitive procurement methods that comply with the requirements in 2 CFR 200.317-327.

Are state universities always considered eligible for non-competitive subawards (vs. a competitive contract) for grants received by state government agencies?

If state law provides that state universities are legally separate from other components of the state for the purposes of financial transactions, then EPA would consider the transaction to be a subaward for the purposes of the Uniform Grants Guidance (UGG). Please refer to Appendix A to the EPA Subaward Policy. There may be unique situations in which state law characterizes transfers of funds between state agencies and state universities as Interagency Service Agreements or a similar designation for an internal financial transaction because state universities are instrumentalities of state government. If that is the case, the governing regulation would be 2 CFR 200.417. There may also be other unique situations in which state law provides that transactions between state universities and other components of the state government are procurement contracts in all cases. As provided at 2 CFR 200.317, states follow their own procurement procedures.

Can sick days or vacation days be charged to fringe benefits for one grant, or must that be divided across the programs that employees charge to?

It should be divided across the programs that the employee charges to.

Is prior EPA approval required for participant support costs that a subaward plans to incur?

Yes.

Can you send more information on subawards for non-profit organizations, is the fixed-amount the only option?

More information is available in EPA’s Subaward Policy and Appendices. Subawards to non-profits are usually made on an actual cost incurred reimbursement basis. Fixed-amount awards require approval by EPA.

Do municipalities use the Automated Standard Application for Payments (ASAP) system for reimbursements?

Yes. See EPA Requirements for Enrolling in the Automated Standard Application for Payments (ASAP) System and Disbursing EPA Funds Within 5 business Days of Drawdown.

If a subrecipient submits invoices and as the state we draw down funds, then once the funds are received, we reimburse the subrecipient, is this considered an “advance” or “reimbursement” to the state?

It is a reimbursement.

Can there be more information given or a webinar on Federal Funding Accountability and Transparency Act (FFATA) reporting?

Visit the FFATA Subaward Reporting System (FSRS) website for more information.

Can you talk about the difference between interagency agreements and subawards?

Intergovernmental agreements are recognized at 2 CFR 200.318(e) as mechanisms for two different units of government (e.g. a state and local government or a city government and a county government) to use or procure common goods and services. Determining whether something is or is not a subaward depends on the nature of the transaction.

Should we be preparing budgets with the new uniform guidance in place?

If your award date is October 1, 2024 or later, you will follow the updated 2 CFR 200.

Does EPA have guidance for negotiating an alternative indirect cost rate?

Please visit the EPA’s Indirect Cost Guidance for Recipients is available on the EPA website.

If we have a 3 year grant starting in June 2024 and ending in 2027, are we stuck with the 10% for 3 years?

The updates to 2 CFR 200 are not effective until Oct. 1, 2024. If your award date is before that, you will comply with the version of 2 CFR 200 in place on the date of your award.

What is the process to perform a Suspension & Debarment check of a potential subawardee?

Suspension and debarment information is available in SAM.gov.

Does EPA have suggested best practices for ensuring that subawardees comply with Civil Rights requirements?

Pass-through entities should actively monitor their subawardees, institute procedures to investigate complaints, and promptly investigate complaints.

Are subawardees supposed to be paid in advance?

Yes, see 2 CFR 200.305(b)(1).

Is there a resource to guide us on which costs can specifically be counted as a direct vs. indirect costs for EPA grants?

EPA’s Indirect Cost Guidance is available at RAIN-2018-G02-R.
 

Does the recipient submit the subaward agreements to EPA, or keep for our records?

Some programs require pass-through entities to submit subaward agreements to EPA, but pass-through entities should always keep copies for their records. Check with your Project Officer.

If the grant application didn't name contractors, but they've been identified, how can they get authorized by EPA?

Your Project Officer will ask for documentation that shows the contracts meet the procurement standards at 2 CFR 200.317-327.

Can you list the information that needs to be included in a subaward?

Subaward agreements must include the information required in 2 CFR 200.332(a). See Appendix D of EPA’s Subaward Policy for a subaward agreement template. EPA does not mandate use of the template.

Can you explain more about what are the uniform guidelines, would this determine if the grant is cost reimbursement or cash advance?

The Uniform Grant Guidelines are regulations that apply to any federal financial assistance agreement. Payment of federal financial assistance funds is covered by 2 CFR 200.305.

To clarify, we follow the 2 CFR 200 for our grant award term? We don't continue to update our grant to the new annual 2 CFR 200 updates?

You follow the laws and regulations in effect at the time the grant was awarded. The updates to 2 CFR 200 are not effective until Oct. 1, 2024. If your award date is before that, you will comply with the version of 2 CFR 200 in place on the date of your award.

Can the EPA provide more support to subrecipients, for example identifying a Project Officer for subawardees?

The pass-through entity is responsible for supporting their subawardees. EPA’s relationship is with the pass-through entity.

How are the requirements for intergovernmental agreements different from subawards?

Intergovernmental agreements are recognized at 2 CFR 200.318(e) as mechanisms for two different units of government (e.g. a state and local government or a city government and a county government) to use or procure common goods and services. Determining whether something is or is not a subaward depends on the nature of the transaction.

So, for current grants, we cannot apply the higher de minimis rate? This higher rate can only be used on grants awarded October 1, 2024 or after?

Yes. The updates to 2 CFR 200 are not effective until October 1, 2024. If your award date is before that, you will comply with the version of 2 CFR 200 in place on the date of your award.

When will the updated 2 CFR guidance be publicly released?

The updates to 2 CFR 200 are effective October 1, 2024. The Office of Management and Budget’s Federal Register Notice explaining the updates is available on the Guidance for Federal Financial Assistance Webpage.

Recently we converted a couple contracts and grant funding to a subaward agreement. The expense line we use is still coded in contracts and/or consultants. Where are entities posting their expenses?

EPA policy requires that pass-through entities include the aggregate amount for subawards in the “Other” budget category of their Standard Form (SF) 424A, “Budget Information for Non-Construction Programs” or equivalent forms for construction agreements unless the Office of Management and Budget revises the budget categories in the SF-424A to include one for subawards.