Types of Terms and Conditions in Assistance Agreement Awards
The assistance agreement award document is a legally binding agreement between EPA and the recipient organization. Components of the award includes the following:
- EPA assistance application, including the approved work plan/narrative (by reference);
- EPA assistance agreement document, including terms and conditions;
- EPA regulations (by reference)
There are three types of terms and conditions:
- Administrative: Applicable provision of Title 40 of the code of federal regulations as well as other pertinent laws and regulations. For example:
In accordance with EPA guidance and OMB Circular No. A-21 or A-122, as appropriate, the recipient agrees that it will not use assistance funds (federal or non-federal share) for lobbying or political activities.
- Programmatic: Provided by the supporting program office, for example:
The recipient agrees to submit quarterly progress reports to the EPA project officer within thirty days after each reporting period.
Programmatic terms and conditions also include substantial involvement terms and conditions performed by the EPA, usually the project officer, if supported as a cooperative agreement. For example:
The EPA project officer will participate in planning sessions for each phase of the project for the purpose of providing technical input
- High Risk: A recipient may be considered high risk if it:
- has a history of unsatisfactory performance;
- is not financially stable;
- has a management system which does not meet the management standards set for in 40 CFR Part 30 or 31;
- has not conformed to the terms and conditions of a previous award; or
- is otherwise considered not responsible.
Examples of high risk terms and conditions include: (1) payment on a reimbursement basis; (2) prohibiting recipients from proceeding to the next phase of a project until acceptance of performance in previous phases; (3) requiring the recipient to submit more detailed financial reports; (4) and intense monitoring by the EPA project officer.