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B-196872-O.M. 1 (1980-03-12)

handle is hein.gao/gaobadqje0001 and id is 1 raw text is: UNITED SFATES \IENMtNT r ,,Co:. ... OI.prCC.' A/I el'i o ran itt ?fl TO Director; GGD MAR 12 1980 FROM : General Counsel - Milton J. Socolar SUBJECT: Interpretation of Federal Grant and Cocperative Afgreement Act of 1977 - B-196872-O.M. The purpose of this memorandum is to expand and clarIfy our interrre- tation of the Federal Grant and Cooperative Aree-,,nt Act of 1977 (FGCA Act), Pub. L. No. 95-224, 92 Stat. 3, February V, li37, 41 ,.T.S.C.A. 501 et seq. This act requires that agencies use the correct lelral instru- ment Igrant, cooperative agreement, or contract) -,w-hen proct'rir:r goods or services from or providing assistance to recipient ot-ganization;. Because there are very different requirements and consequences which: flow from the use of one instrument rather than tle other, it i very irpo:'tant to determine whether or to what extent the FCC.A epandd ea.... ancs pre- existing authority to enter into pnrticular types of rclatlonshiu. Since 0''13 has been given the leading role in the study and expianaiion of this Act, GAO's role at this time should be one of advising OMB and keeping Conress in- formed rather than addressing the vaiiditv of individual ae-nv actions. We note that the examples used to illustrate certain issues shouLId not be 2onsidered final decisions of this Ofice since we have not ha-___he benefit f the views of the agencies responsible for the programn exanipes nor ave we much experience with actual cases that wxild permit u-s to test ur views. Application of the FGCA Act should be a case-by-ease process. The FGCA Act and, TLeisladve History The portions of the FCCA Act of primary importarce to this memorandum are as follows: USE OF CONTRACTS SSc. 4. Each executive a-gency shall use a type of ro - curemet contract is the c-Zal instru,-nt refl...t.i.. a r - lationshin between the Federal Governmient and a atc or local governrrent or &'hex recipient--