Page:United States Statutes at Large Volume 92 Part 1.djvu/57

 PUBLIC LAW 95-224—FEB. 3, 1978

92 STAT. 3

Public Law 95-224 95th Congress An Act To distinguish Federal grant and cooperative agreement relationships from Federal procurement relationships, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act be cited as the "Federal Grant and Cooperative Agreement Act of 1977". FINDINGS AND PURPOSE

SEC. 2. (a) The Congress finds that— (1) there is a need to distinguish Federal assistance relationships from Federal procurement relationships and thereby to standardize usage and clarify the meaning of the legal instruments which reflect such relationships; (2) uncertainty as to the meaning of such terms as "contract", "grant", and "cooperative agreement" and the relationships they reflect causes operational inconsistencies, confusion, inefficiency, and waste for recipients of awards as well as for executive agencies; and (3) the Commission on Government Procurement has documented these findings and concluded that a reduction of the existing inconsistencies, confusion, inefficiency, and waste is feasible and necessary through legislative action. (b) The purposes of this Act are— (1) to characterize the relationship between the Federal Government and contractors. State and local governments, and other recipients in the acquisition of property and services and in the furnishing of assistance by the Federal Government so as to promote a better understanding of Federal spending and help eliminate unnecessary administrative requirements on recipients of Federal awards; (2) to establish Government-wide criteria for selection of appropriate legal instruments to achieve uniformity in the use by the executive agencies of such instruments, a clear definition of the relationships they reflect, and a better understanding of the responsibilities of the parties; (3) to promote increased discipline in the selection and use of types of contract, grant agreement, and cooperative agreements ' and to maximize competition in the award of contracts and encourage competition, where deemed appropriate, in the award of grants and cooperative agreements; and (4) to require a study of the relationship between the Federal Government and grantees and other recipients in Federal assistance programs and the feasibility of developing a comprehensive system of guideline for the use of grant and cooperative agreements, and other forms of Federal assistance in carrying out such programs.

Feb. 3, 1978 [H.R. 7691] Federal Grant and Cooperative Agreement Act of 1977. 41 USC 501 note. 41 USC 501.

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