A fixed amount award is a type of grant agreement with a pre-approved amount of funding, irrespective of actual costs under the award. The intent of these types of awards is promote performance results over compliance requirements in order to allow Federal agencies flexibility in achieving better outcomes through Federal awards. 


This information applies to:

Grant agreements only


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2 CFR 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards

§200.45 Fixed amount awards.

Fixed amount awards means a type of grant agreement under which the Federal awarding agency or pass-through entity provides a specific level of support without regard to actual costs incurred under the Federal award. This type of Federal award reduces some of the administrative burden and record-keeping requirements for both the non-Federal entity and Federal awarding agency or pass-through entity. Accountability is based primarily on performance and results. See §§200.201 Use of grant agreements (including fixed amount awards), cooperative agreements, and contracts, paragraph (b) and 200.332 Fixed amount subawards.

[78 FR 78608, Dec. 26, 2013]

§200.201 Use of grant agreements (including fixed amount awards), cooperative agreements, and contracts.

(a) The Federal awarding agency or pass-through entity must decide on the appropriate instrument for the Federal award (i.e. grant agreement, cooperative agreement, or contract) in accordance with the Federal Grant and Cooperative Agreement Act.

(b) Fixed Amount Awards.  In addition, to the options described in paragraph (a) of this section, Federal awarding agencies, or pass-through entities as permitted in § 200.332 Fixed amount subawards, may use fixed amount awards to which the following conditions apply:

(1) The Federal award amount is negotiated using the cost principles (or other pricing information) as a guide.  The Federal awarding agency or pass-through entity may use fixed amount awards if the project scope is specific and if adequate cost, historical, or unit pricing data is available to establish a fixed amount award based on a reasonable estimate of actual cost.  Payments are based on meeting specific requirements of the Federal award.  Accountability is based on performance and results.  Except in the case of termination before completion of the Federal award, there is no governmental review of the actual costs incurred by the non-Federal entity in performance of the award.  Some of the ways in which the Federla ward may be paid include, but are not limited to:

(i) In several partial payments, the amount of each agreed upon in advance, and the "milestone" or event triggering the payment also agreed upon in advance, and set forth in the Federal award; or

(ii) On a unit price basis, for a defined unit or units, at a defined price or prices, agreed to in advance of performance of the Federal award and set forth in the Federal award; or

(iii) In one payment at Federal award completion. 

(2) A fixed amount award cannot be used in programs which require mandatory cost sharing or match.

(3) The non-Federal entity must certify in writing to the Federal awarding agency or pass-through entity at the end of the Federal award that the project or activity was completed or the level of effort was expended.  If the required level of activity or effort was not carried out, then the amount of the Federal award must be adjusted.

(4) Periodic reports may be established for each Federal award.

(5) Changes in principal investigator, project leader, project partner, or scope of effort must receive the prior written approval of the Federal awarding agency or the pass-through entity.

[78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75882, Dec.19, 2014]

§200.332 Fixed amount subawards.

With prior written approval from the Federal awarding agency, a pass-through entity may provide subawards based on fixed amounts up to the Simplified Acquisition Threshold, provided that the subawards meet the requirements for fixed amount awards in §200.201 Use of grant agreements (including fixed amount awards), cooperative agreements, and contracts.

[78 FR 78608, Dec. 26, 2013]

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Frequently Asked Questions


Can State agencies (grantees) utilized fixed amount awards for the various WSFR programs?

§ 200.201(b)(2) states that a fixed amount award cannot be used in programs which require a mandatory cost sharing or match.  Wildlife Restoration, Sport Fish Restoration, Clean Vessel Act, Boating Infrastructure Grant Program, and State Wildlife Grants programs all require a mandatory cost sharing or match component.  Hence fixed amount awards may not be used for these programs.  Fixed amount awards are allowable for other Federal programs that do not require a mandatory cost sharing or match.  

What exactly is a fixed amount award?

A fixed amount award is defined in § 200.45 as a type of grant agreement under which the Federal awarding agency or pass-through entity provides a specific level of support (i.e. funding) without regard to actual costs incurred under the Federal award.  For example a non-Federal entity may enter into agreement with a pass-through entity to construct a specific storage building on its property.  Based upon available cost data (including historical and unit pricing data), the cost to construct such a storage building is typically $50,000.  Both entities could agree to enter into a fixed amount award for $50,000 to construct the storage building, regardless of what the actual costs end up truely being.  

How are fixed amount awards established or negotiated between the non-Federal entity and the Federal awarding agency or pass-through entity?

Fixed amount awards must be established or negotiated using the cost principles or other pricing information available as a guide.  The project scope must be specific and adequate cost, historical, or unit pricing data must also be available to establish the fixed amount based on a reasonable estimate of the actual cost.   

What are the benefits of using a fixed amount award?

The benefits and rationale behind the use of a fixed amount award is that they significantly reduce the administrative burden and record keeping requirements for both the non-Federal entity and the Federal awarding agency or pass-through entity.

How do fixed amount awards reduce the administrative burden on entities?

The level of accountability in a fixed amount award is based more upon the performance and actual completion of the project as opposed to the actual cost.  There is no governmental review of the actual costs incurred by the non-Federal entity in the performance of the award.

How are payments provided to the non-Federal entity in a fixed amount award?

In a fixed amount award, payments are typically provided to a non-Federal entity based upon several options: (1) Payments are paid in several partial payments, the amount of each agreed upon in advance, and the "milestone" or event triggering the payment is also agreed upon in advance, and set forth in the Federal award; (2) On a unit price basis, for a defined unit or units, at a defined price or prices, agreed to in advance of performance of the Federal award and set forth in the Federal award; or (3) In one payment at Federal award completion. 

Do fixed amount awards also apply to cooperative agreements and contracts?

No, fixed amount awards only apply to grants.

What is the Simplified Acquisition Threshold referenced under 2 CFR 200.332 Fixed Amount Subawards?

The Simplified Acquisition Threshold is defined in § 200.88 as the dollar amount below which a non-Federal entity may purchase property or services using small purchase methods.  It is set by the Federal Acquisition Regulation at 48 CFR Subpart 2.1 and in accordance with 41 U.S.C. 1908.  Currently, the threshold is $150,000.

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