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Over the past few years, the federal government, through the U.S. Office of Management and Budget (“OMB”), has significantly rewritten its guidance concerning grants and cooperative agreements (referred to as the “Uniform Guidance”). In light of those changes, the U.S. Department of Defense (“DoD”) established interim implementation of OMB’s guidance in December 2014 and took further steps to implement the OMB’s Uniform Guidance in November 2016.

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On August 19, 2020, the DoD published six final rules that collectively update the department’s existing interim regulations governing grants and cooperative agreements. The DoD Grant and Agreement Regulations (“DoDGARs”) are being updated to, among other things, implement the OMB Uniform Guidance to DoD agencies on administrative requirements, cost principles, and audit requirements applicable to federal grants, cooperative agreements, and other federal financial agreements.

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The final rules seek to establish several new DoDGARs parts and make conforming changes to existing DoDGARs parts. The six rules, all of which go into effect on October 19, 2020, are discussed in further detail below.

The DoDGARs update is comprised of six individual final rules, each addressing a different aspect of the regulations governing DoD grants and cooperative agreements:

The six final rules change certain requirements to provide additional clarity in the regulations for grants and cooperative agreement award recipients. Because the final rules include standardization of terms and conditions in DoD grants and cooperative agreements, in addition to defining certain key acquisition terms, these changes require a thorough review and immediate attention as they could potentially impact award recipients. For example, among other issues, the new rules address how each award document must have an award cover page, define award-specific terms and conditions, define general terms and conditions that apply to an individual DoD component’s grants or awards, include administrative requirements, state the basis for the legal requirements governing the grant or award (executive order, regulation, or law), and state the programmatic requirements of the grant or award.

Given the foregoing discussion, grant and cooperative agreement recipients should review the final rules as well as their current business practices with respect to the application of these important changes due to their impact on award and performance. The above is not an exhaustive list. Interested parties with, or pursuing, agreements subject to the DoDGARs should watch for regulatory changes.

If you have any questions about the final rules, please contact any of the below Thompson Hine grant and cooperative agreement specialists for additional information, including any updates, and other steps your business may need to take:

Tom Mason Partner and Practice Group Leader, Government Contracts 202.263.4168 <a href="mailto:Thomas.Mason@ThompsonHine.com">Thomas.Mason@ThompsonHine.com</a>

Francis E. (Chip) Purcell, Jr. Partner, Government Contracts 202.263.4118 <a href="mailto:Chip.Purcell@ThompsonHine.com">Chip.Purcell@ThompsonHine.com</a>

Ray McCann Senior Counsel, Government Contracts 202.263.4152 <a href="mailto:Ray.McCann@ThompsonHine.com">Ray.McCann@ThompsonHine.com</a>

Mona Adabi Associate, Government Contracts 202.263.4147 <a href="mailto:Mona.Adabi@ThompsonHine.com">Mona.Adabi@ThompsonHine.com</a>

Kelly Gwynn* Grant Specialist 202.973.2706 <a href="mailto:Kelly.Gwynn@ThompsonHine.com">Kelly.Gwynn@ThompsonHine.com</a>

This advisory bulletin may be reproduced, in whole or in part, with the prior permission of Thompson Hine LLP and acknowledgment of its source and copyright. This publication is intended to inform clients about legal matters of current interest. It is not intended as legal advice. Readers should not act upon the information contained in it without professional counsel.

This document may be considered attorney advertising in some jurisdictions.

https://admin.aboutpmc.com/wp-content/uploads/sites/2/2022/10/DoD_Issues_Updates_to_Grant_and_Cooperative_Agreement_Regulations.pdf

DoD Issues Updates to Grant and Cooperative Agreement Regulations