Co-operative contracts are different from traditional purchase contracts and are therefore not subject to the Federal Acquisition Regulation (FAR). Like the other transaction authority, this approach gives agencies greater freedom to create the conditions for an agreement on new or innovative projects. For example, the FDA uses this freedom to promote food security with states by funding the implementation of food safety legislation. As the landscape of federal contracts becomes increasingly complex, cooperation agreements offer some contractors the opportunity to engage in a lighter federal funding mechanism. A co-operative agreement “distinguishes itself from a grant in that it provides for substantial participation between the federal granting agency or the passport unit and the non-federal agency in the exercise of the activity under the federal award.” The question now is: What is a “substantial commitment” from the federal government? Dave, yes, they can be. But it really depends on the specific funding possibility – which is the main purpose of the grant. As long as the grant achieves this goal, funding can support all or part of a 508-compliant website. For other questions, we advise you to contact the grant funding agency or the cooperation agreement concerned, as we are not in a position to provide binding answers to this question. If you are interested in more detailed information on grants and cooperation agreements, there are still some resources: cooperation contracts and grants are “a legal instrument of financial support between a federal agency or a pass unit and a non-federal entity” within the meaning of the unique OMB guidelines (200.24 for cooperation agreements and 200.51 for the grant agreement).
On Grants.gov, of course, we have public subsidies, but you will also find many “cooperation agreements” if you are looking for financing. This is because cooperation agreements and subsidies are very similar, but with a big difference. While the federal agency remains involved in the delivery, the task should never be postponed so that it is carried out for the Agency. The FGCAA expressly prohibits federal authorities from using co-operative contracts to acquire real estate or services for direct use or use by the federal government. This distinction distinguishes cooperative contracts from “purchase contracts” or “acquisitions” related to FAR. This distinction is also essential to limit the protest actions made available to disappointed bidders for cooperation agreements. Key Takeaways 1. Subsidies and cooperation agreements are very similar.
2. The differences lie in the details of implementation (i.e., cooperation agreements are accompanied by “substantial participation” by the federal agency). 3. There are also legal implications of these different agreements, so read the agreements carefully and discuss them with the lawyers. The Federal Grant and Cooperative Agreement Act of 1977 (P.L. 95-224, 31 USC 6301 and following) establishes the fundamental distinctions between purchase contracts, grants and cooperation contracts.