Q-4: Are prime recipients responsible for reporting information on their contracts for procurement of property or services?

A-4: No.  In grant and loan programs such as the Federal-aid Highway Program (FAHP), the definition of “subaward” does not extend to procurement of property and services needed to carry out the project or program.   For example, a construction or architectural/engineering firm design contract procured by a state to carry out a federal-aid highway project would not be subject to the reporting requirements.  Federal agency-administered contracts are subject to separate requirements as contained in the Federal Acquisition Regulation and OMB guidance.

Q-5: There seems to be new uses of existing terminology.  Please define the following: Prime Recipient; Subrecipient; Award; Subaward.

A-5: Based on the definitions in the Sept. 14, 2010 Federal Register Notices announcing the Interim Final Rule on 2 CFR 170 and the final rule on 2 CFR 25, those terms have the meanings described below.

Award: For purposes of 2 CFR Part 170, means a grant or cooperative agreement.   On future dates to be specified by OMB in policy memoranda available at the OMB Web site, award also will include other types of awards of Federal financial assistance subject to the Transparency Act, as defined in § 170.320.  As specifically noted in this paragraph, it does not include technical assistance, which provides services in lieu of money, nor a transfer of title to Federally owned property provided in lieu of money, even if the award is called a grant.  For the FAHP, “award” is generally synonymous with a “project agreement” at the point of obligation of Federal funds.

Entity: Means all of the following, as defined at 2 CFR part 25, subpart C:

a. A Governmental organization, which is a State, local government, or Indian Tribe;  b. A foreign public entity;  c. A domestic or foreign nonprofit organization;  d. A domestic or foreign for- profit organization; and  e.  A Federal agency, but only as a subrecipient under an award or subaward to a non-Federal entity.  An example of a Federal agency in this capacity might be the US Forest Service carrying out a subaward under the Recreational Trails Program.

Executive: Executive means officers, managing partners, or any other employees in management positions.  There are no distinctions for public vs. private entities, or political vs. civil servant status.  The key to reporting is whether or not the basic criteria are met (80% of gross revenues from Federal funds, etc., gross revenues in excess of $25 million, not already available via SEC reporting…)