Definition

A financial assistance award instrument used by awarding agencies when the relationship with the recipient has as its principle purpose the transfer of a thing of value to the recipient in order to carry out a public purpose of support or stimulation authorized by a law of the United States, and substantial involvement is expected.[1]

Department of Interior Policy

Selecting the Cooperative Agreement as the proper award instrument

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.[2] Additionally, cooperative agreements may be the solely authorized award instrument for specific programs; check the program's guidance for clarification [3].

Program offices may–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 [4]

 Cooperative Agreement Structure and Contents

The agreement will be structured in a manner which [5]:

1. Adequately describes the relationship based upon the degree of involvement of the parties; and
2. Defines and allocates respective responsibilities, obligations, rights, and accountability as appropriate to the particular project. Requirements contained in statutes and implementing requlations will govern 

[1] 505 DM 2.6 C.

[2] ibid, 2.9 B.

[3] A good source to check is CFDA.gov under the funding's CFDA number.

[4] 505 DM 2.9 B. (5), (6)

[5] ibid., 2.10 A.