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The basic criterion for selecting a cooperative agreement is that substantial involvement is expected between the bureau or office and the recipient when carrying out the activity contemplated in the agreement.[4]
Program offices may–when may consider a variety of factors when determining the use of a cooperative agreement--consider a variety of factors, including a recipient's ability to properly manage the funded activity (to include financial capacity and technical need). Federal involvement in cooperative agreements will be limited to the minimum required consistent with program requirements. Nothing in the Act should be construed as allowing the Government to increase its involvement beyond that which is authorized by applicable laws and OMB requirements [5]
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The agreement sets forth the respective rights and obligations of both the program office and cooperator in such areas as [7]
- project Project performance and management.
- partial Partial or total termination of work.
- changes Changes in the scope of work.
- period Period of performance.
- application Application of funding and resources.
- title Title to property.
- records Records maintenance and access.
- liabiltyLiability.
- etc.
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Service Policy
For cooperative agreements, programs must include a detailed description of the expected Service involvement in the project activities in both the funding opportunity description and the Notice of Award letter.[8] This description will read as follows: [9]
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[1] Federal Grant and Cooperative Agreement Act of 1977, as incorporated in 31 USC § 6305 (cited online at http://www.law.cornell.edu/uscode/text/31/6305)
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[6] ibid., 2.10 A.
[7] ibid., B.[8] FAPO "Issuing a New Financial Assistance Award Guidance "(May 11, 2011), #2 "Determine award instrument", para. 3.[9] ibid., #5 C.