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Can you provide an example of a scenario where a pass-through entity enters into a relationship with a subrecipient?
Scenario #1:
A state fish and wildlife agency receives a Sport Fish Restoration grant to study the effects of stocking white crappie into a large flood control reservoir in terms of bolstering the population in order to improve abundance for recreational fishing. The state fish and wildlife agency in turn enters into a relationship with a local university to conduct the research as approved in the grant application. Under this scenario, the state fish and wildlife agency acts as the pass-through entity and the university becomes the subrecipient. A subrecipient determination would be adequate in this scenario because the university (1) has its performance measured against whether the objectives of the Federal program at met; (2) most likely has responsibility for programmatic decision making; (3) has responsibility for adherence to applicable Federal compliance requirements; and (4) uses the Federal funds to carry out a program of the organization as compared to simply providing goods or services.
Scenario #2:
A state environmental protection agency has been designated by the governor to be the state agency to receive Clean Vessel Act (CVA) program funding. The state agency receives a Clean Vessel Act grant to construct marine sewage pumpout facilities at public lakes across the state. The state agency enters into an agreement with a private marina to construct a marine sewage pumpout facility that will be open and available to the boating public. The pumpout facility will safely accept and remove marine sewage from recreational vessels. Under this scenario, the state environmental protection agency acts as the pass-through entity and the private marina owner becomes the subrecipient. This subrecipient determination would be adequate because the private marina (1) has its performance measured against whether the objectives of the Federal program are met; (2) has responsibility for programmatic decision making; (3) has responsibility for adherence to applicable Federal compliance requirements; and (4) uses the Federal funds to carry out a program of the organization as compared to simply providing goods or services.
Can you provide an example of a scenario where a pass-through entity enters into a relationship with a contractor?
Scenario #1:
A state fish and wildlife agency receives a Wildlife Restoration grant for annual operations and maintenance of its wildlife management areas and facilities located at the areas. The state fish and wildlife agency determines that a new roof is needed on one of its regional wildlife offices located at one of the wildlife management areas. The state agency in turn enters into a relationship with a local business to remove the existing roof and replace with a new roof. Under this scenario, the state fish and wildlife agency acts as the non-Federal entity and the local roofing business becomes the contractor. A contractor determination would be adequate in this scenario because the local roofing business (1) provides goods or services within normal business operations; (2) provides similar goods or services to many different purchasers; (3) operates in a competitive environment; (4) provides good or services that are ancillary to the operation of the Federal program; and (5) is not subject to compliance requirements of the Federal program.
Scenario #2:
A state fish and wildlife agency receives a Sport Fish Restoration grant to sample, monitor, and manage 50 public recreational sport fisheries across the state. Included in the grant, the state agency requests to purchase five new vehicles and two new electrofishing boats from private businesses. Under this scenario, the state fish and wildlife agency acts as the non-Federal entity, while both the vehicle dealership and the electrofishing boat manufacturer become contractors, respectively. A contractor determination would be adequate in this scenario because both entities are (a) providing goods and services within normal business operations; (2) providing similar goods or services to many different purchasers; (3) operating in a competitive environment; (4) providing goods or services that are ancillary to the operation of the Federal program; and (5) not subject to compliance requirements of the Federal program.
Scenario #3:
A state fish and wildlife agency receives a Sport Fish Restoration grant to compare growth, mortality, and recruitment of northern-strain vs Florida-strain largemouth bass in Lake Bobber. The state fish and wildlife agency will use its internal research biologist staff to conduct the research. However, they do not have the equipment and expertise to run the genetic samples from all largemouth bass collected. They enter into a relationship with a university that will perform the genetic testing of samples to determine which largemouth bass are northern-strain vs Florida-strain. Once completed, the university will provide the results back to the state fish and wildlife agency staff who will in turn then perform the data analysis and develop the final report. Under this scenario, the state fish and wildlife agency acts as the non-Federal entity and the university acts as a contractor. A contractor determination is appropriate because the university is (1) providing goods or services within normal business operations; (2) providing similar goods and services to many different purchasers; (3) providing goods or services that are ancillary to the operation of the Federal program; and (4) not subject to compliance.
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