EXECUTIVE OFFICE OF THE PRESIDENT

OFFICE OF MANAGEMENT AND BUDGET

WASHINGTON, D.C. 20503

THE DIRECTOR

February 18, 2009

M-09-10

MEMORANDUM FOR THE HEADS OF DEPARTMENTS AND AGENCIES

FROM: Peter R. Orszag

Director

SUBJECT: Initial Implementing Guidance for the American Recovery and Reinvestment Act
of 2009

This memorandum transmits the first installment of government-wide guidance for

carrying out programs and activities enacted in the American Recovery and Reinvestment Act
(“Recovery Act”) of 2009. Please bring this memorandum and attachment to the attention of any
personnel within your organization who will be involved in these matters.

The Administration is committed to investing Recovery Act dollars with an

unprecedented level of transparency and accountability so Americans know where their tax
dollars are going and how they are being spent. The guidance issued today contains critical
action steps that Federal agencies must take immediately to meet these objectives and to
implement the Act effectively. Of particular note, the guidance addresses Federal agency
requirements to provide spending and performance data to the “Recovery.gov” website. To
deliver a website that allows citizens to hold the government accountable for every dollar spent,
the law and guidance require Federal agencies to implement mechanisms to accurately track,
monitor, and report on taxpayer funds.

More broadly, the guidance establishes requirements for various aspects of Recovery Act
planning and implementation. These requirements are intended to meet crucial accountability
objectives:

• Funds are awarded and distributed in a prompt, fair, and reasonable manner;
• The recipients and uses of all funds are transparent to the public, and the public
benefits of these funds are reported clearly, accurately, and in a timely manner;
• Funds are used for authorized purposes and instances of fraud, waste, error, and abuse
are mitigated;
• Projects funded under this Act avoid unnecessary delays and cost overruns; and
• Program goals are achieved, including specific program outcomes and improved
results on broader economic indicators.
 Additional guidance providing further detail and covering a fuller range of items will be
issued within 30-60 days of this memorandum. Questions about this memorandum or the
guidance generally can be addressed to your organization’s OMB counterparts or to
[email protected].

Thank you for your attention to these matters.

Attachment
 Initial Implementing Guidance for the
American Recovery and Reinvestment Act of 2009
Table of Contents

Section 1: General Information…………………………………………. 2

Section 2: Agency Plans and Public Reporting………………………… 9

Section 3: Governance and Risk Management………………………… 19

Section 4: Budget Execution…………………………………………….. 25

Section 5: Grants………………………………………………………… 32

Section 6: Contracts……………………………………………………... 38

Section 7: Loans and Loan Guarantees………………………………... 49

Appendix 1……………………………………………………………..…. 54

Appendix 2…………………………………………………………….….. 58

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Section 1 – General Information

1.1 What is the purpose of this Guidance?

The purpose of this Guidance is to promulgate an initial set of government-wide requirements

and guidelines that Federal agencies must immediately implement or prepare for in order to
effectively manage activities under the American Recovery and Reinvestment Act (Recovery
Act) of 2009.

The Guidance outlines necessary enhancements to standard processes for awarding and
overseeing funds to meet accelerated timeframes and other unique challenges posed by the
Recovery Act’s transparency and accountability framework. More specifically, the Guidance:
• Answers questions and clarifies issues related to the mechanics of implementing the
Recovery Act;
• Provides initial clarification on what information will be reported on Recovery.gov and what
information will be required to be reported on agency websites;
• Instructs agencies on initial steps which must be taken to meet these reporting requirements,
including incorporation of recipient reporting requirements in award documents and
communications with funding recipients; and
• Establishes a common framework for agencies to manage the risks associated with
implementing Recovery Act requirements.

1.2 What is the goal of this Guidance?

The goal of this Guidance is to establish and clarify the required steps Federal agencies must take
to meet the following crucial accountability objectives:
• Funds are awarded and distributed in a prompt, fair, and reasonable manner;
• The recipients and uses of all funds are transparent to the public, and the public benefits of
these funds are reported clearly, accurately, and in a timely manner;
• Funds are used for authorized purposes and instances of fraud, waste, error, and abuse are
mitigated;
• Projects funded under this Act avoid unnecessary delays and cost overruns; and
• Program goals are achieved, including specific program outcomes and improved results on
broader economic indicators.

1.3 Under what authority is this Guidance being issued?

This Guidance is issued under the authority of 31 U.S.C. 1111; Reorganization Plan No. 2 of
1970; Executive Order 11541; the Chief Financial Officers Act of 1990 (P.L. 101-576); the
Office of Federal Procurement Policy Act (41 U.S.C. Chap. 7); and the Federal Funding
Accountability and Transparency Act of 2006 (P.L. 109-282).

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1.4 To which agencies does this Guidance apply?

The provisions of this Guidance apply to all Executive Branch departments and agencies
involved in or impacted by the Recovery Act or which otherwise perform services for agencies
that receive such appropriations.

The Head of the applicable Federal agency is responsible for the requirements in this Guidance
and must determine what, if any, specific actions at the bureau or sub-agency level will be
required to meet these responsibilities.

1.5 What are the critical requirements or elements of this Guidance for which agencies
must begin to immediately implement or prepare?

[Further detail and explanation on each of the areas identified below are provided in Sections 2
through 7 and the Appendices of this Guidance.]

The Recovery Act and this Guidance include several provisions that require agencies to take
steps beyond standard practice, including reporting, information collection, budget execution,
risk management, and specific actions related to award type.

Transparency and Reporting

• Major Communications. Beginning immediately, agencies receiving Recovery Act funds
should determine which major communications are appropriate for posting on Recovery.gov.
(see Section 2.2 and Appendix 1 for required data fields and reporting instructions)
• Formula Block Grant Allocation Reports. As soon as information becomes available,
Federal agencies are required to provide details on the allocations made for each formula
block grant. (see Section 2.3 and Appendix 1 for required data fields and reporting
instructions)
• Weekly Updates. Starting March 3rd, agencies must submit weekly reports providing a
breakdown of funding, major actions taken to date, and major planned actions. (see Section
2.4 and Appendix 1 for required data fields and reporting instructions)
• Monthly Financial Reports. Starting May 8th, agencies must provide monthly financial
reports providing obligations, expenditures, and other financial data by Treasury Account,
vendor, and award number, as well as information on allocations of mandatory and
entitlement programs by State, county, or other appropriate geographical unit. (see Section
2.5)
• Award Transaction Data Feeds. Starting on May 5th, agencies must provide all Recovery Act
assistance transactions (primarily grants, loans, and loan guarantees) in the standard format
currently provided to USASpending.gov. Agencies must also begin planning now for how
they would provide this information on a more frequent basis if a decision is made to do so.
(see Section 2.6)
• Agency Recovery Plan. No later than May 1st, agencies must provide their “Agency
Recovery Plan” that describes both broad recovery goals and the agency’s coordinating
efforts. Agencies should work with their Office of Management and Budget (OMB)
representative to set an appropriate submission date and review process. (see Section 2.7)

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• Recovery Program Plans. No later than May 1st, agencies must provide a separate “Recovery
Program Plan” for each Recovery Act program named in the legislation. Agencies should
work with their OMB representative to set an appropriate submission date and review
process. (see Section 2.8)

Information Collection and Dissemination

• Starting immediately, agencies must ensure all funds provided by the Recovery Act are
clearly distinguishable from non-Recovery Act funds in all agency financial systems,
business systems (i.e., grant and contract writing systems), and reporting systems.
• To support reporting requirements, agencies need to have the appropriate contract/grant/loan
number recorded on the obligation, expenditure, and other transactions in their financial
system.
• Starting immediately, agencies must have all award documents and related communications
include the clauses and provisions necessary to clarify that award recipients are legally
obligated and must meet their reporting requirements under the Recovery Act and this
Guidance.
• To facilitate transparency and reporting, agencies should establish a page on their existing
website dedicated to the Recovery Act (i.e., www.agency.gov/recovery), which will link to
Recovery.gov and will provide a single portal for all agency-specific information related to
the Act.
• For each government contract or order (or modification to an existing contract or order) over
$500,000, agencies should provide a summary of the contract or order (or modification to an
existing contract or order), including a description of the required products and services,
which will be made available publicly and linked to Recovery.gov.
• A summary of any contract or order (or modification to an existing contract or order),
including a description of the required products and services, using Recovery Act funds shall
be posted in a special section of the web site Recovery.gov unless the contract or order is
both fixed-price and competitively awarded.
• By March 15th, each agency should begin identifying to OMB’s E-Gov Office current agency
systems that collect or will collect significant Recovery Act program information from
recipients, but are currently unable to make this information available to the public.
• Within one week of issuing this guidance, agencies must establish a dedicated page on their
website for recovery efforts. Appendix 2 describes agency website requirements, guidelines,
and best practices.

Budget Execution
• Agencies must establish unique Treasury Appropriation Fund Symbols (TAFSs) in their
financial systems for all Recovery Act funding, unless a waiver is granted by the Director of
OMB by February 25th.
• Agencies should start planning now to submit apportionment requests to OMB in as
expeditious a manner as possible.
• Agencies receiving Recovery Act funds should determine whether they plan to procure goods
and services from other agencies in inter-agency agreements so they can inform the
performing agencies as soon as possible.

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• Agencies in interagency agreements that perform services for other agencies that receive
Recovery Act funds should start planning now on fulfilling the reporting requirements
resulting from the law.
• Agencies that administer TAFSs that receive non-expenditure transfers or expenditure
transfers from TAFSs that receive Recovery Act funds should start planning now on
fulfilling the reporting requirements resulting from the law.

Risk Management
• Agencies must immediately review the risk framework provided in Chapter 3 of this
Guidance, capture and report against the common government-wide accountability measures,
identify any additional agency-specific risks not provided for in Chapter 3, prioritize risk
areas, and initiate risk mitigation strategies.
• At a minimum, immediate risk mitigation actions must address:
o Audits and investigation of Recovery Act funds to identify and prevent wasteful spending
and minimize waste, fraud, and abuse;
o Qualified personnel overseeing Recovery Act funds;
o Competitive awards maximized;
o Timely award of dollars;
o Timely expenditure of dollars;
o Cost overruns minimized; and
o Improper payments minimized.
• To assess how well the Federal government and funding recipients are progressing in
meeting the items above, agencies should begin preparing to track progress against the above
accountability measures.
• To assess risks for individual programs that receive Recovery Act funding, agencies should
consider the following when assessing risk (note that the following list is intended to be
illustrative):
o Which programs are receiving (or providing) the most funding;
o Are program outputs and outcomes clear and measurable and do agencies have tools to
measure those outputs and outcomes;
o Are existing resources sufficient to achieve program objectives;
o Who is (are) the final recipient(s) of funds (e.g., contractor, sub-contractor, state, locality,
educational institution);
o Are existing internal controls sufficient to mitigate the risk of waste, fraud, and abuse
adequately;
o Are there performance issues with (potential) funding recipients; and
o Are there leading indicators or lagging indicators (e.g., error measurements) to monitor
ongoing program performance.

Actions Specific to Award Type

• For contract awards, agencies must:
o In addition to the Federal Acquisition Regulation (FAR) Part 5 requirements for pre-
solicitation and award notices, publish pre-solicitation and award notices of orders under
task and delivery order contracts on FedBizOpps;

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 o Include special formatting for pre-solicitation and award notices in FedBizOpps and
award reporting in the Federal Procurement Data System (FPDS) to distinguish Recovery
Act actions;
o Include terms and conditions in contract documents necessary for effective
implementation of Recovery Act data collection and accountability requirements;
o For each government contract or order (or modification to an existing contract or order)
over $500,000, agencies should provide a summary of the contract or order (or
modification to an existing contract or order), including a description of the required
products and services, which will be made available publicly and linked to Recovery.gov;
and
o A summary of any contract or order (or modification to an existing contract or order),
including a description of the required products and services, using such funds shall be
posted in a special section of the web site Recovery.gov unless the contract or order is
both fixed-price and competitively awarded.

• For grant and cooperative agreement awards, agencies must:

o Request an expedited “Recovery Act” Catalog of Federal Domestic Assistance (CFDA)
number for new Recovery Act programs or existing programs for which the Recovery
Act provides for compliance requirements that are significantly different for the
Recovery Act funding;
o Provide notification of existing CFDA program descriptions that will be modified during
the next CFDA update cycle to reflect Recovery Act authorities, financial information,
etc.;
o Within twenty (20) days after enactment of the Recovery Act, agencies shall post funding
opportunity announcements (i.e., “synopses’) to Grants.gov;
o Within thirty (30) days of enactment, the Grants.gov synopsis shall link to the full
announcement on the agency website;
o Include prominent labels and tags in funding opportunity synopses, full funding
opportunity announcements, and award notices that clearly distinguish them as
“Recovery Act” actions;
o Begin outreach efforts with potential applicants to create or update their profiles in Dun
and Bradstreet Universal Numbering System (DUNS) and Central Contractor
Registration (CCR);
o Provide their Weekly Report allocations for each formula grant award (see section 2.4);
o Include terms and conditions in award documents necessary for effective implementation
of Recovery Act data collection and accountability requirements; and
o Identify opportunities to streamline data collection to help alleviate reporting burden on
funding recipients.

• For loans and loan guarantees, agencies must:

o Request an expedited “Recovery Act” Catalog of Federal Domestic Assistance (CFDA)
number for new Recovery Act programs, or existing programs for which the Recovery
Act provides for compliance requirements that are significantly different for the
Recovery Act funding; modify existing CFDA program descriptions to reflect Recovery
Act authorities, financial information, etc.;

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 o Publish funding opportunity notices and/or funding allocation information on
GovLoans.gov;
o Include prominent labels and tags in funding opportunity synopses, full funding
opportunity announcements, and award notices that clearly distinguish them as Recovery
Act actions;
o Begin outreach efforts with potential applicants to create or update their profiles in Dun
and Bradstreet Universal Numbering System (DUNS) and Central Contractor
Registration (CCR);
o Include terms and conditions in loan or loan guarantee award documents necessary for
effective implementation of Recovery Act data collection and accountability
requirements; and
o Identify opportunities to streamline data collection to help alleviate reporting burden on
funding recipients.

Appendices 1 & 2 describe specific immediate transparency and reporting requirements.

Additional guidance on other reporting requirements will be forthcoming.

1.6 What additional responsibilities exist for Executive Branch agencies?

The Executive Branch shall distribute Recovery Act funds in accordance with:
• All applicable anti-discrimination and equal opportunity statutes and regulations. These
include (but are not limited to) Titles VI and VII of the Civil Rights Act of 1964; Title IX of
the Education Amendments of 1972; the Rehabilitation Act of 1973; the Fair Housing Act;
the Fair Credit Reporting Act; the Home Mortgage Disclosure Act; and the Americans with
Disabilities Act; as well as the Uniform Relocation Act.
• The National Environmental Policy Act, the National Historic Preservation Act, and related
statutes, including requirements for plans and projects to be reviewed and documented in
accordance with those processes.
• Section 1605 of the Recovery Act, which provides (subject to certain exceptions) that
"[n]one of the funds appropriated or otherwise made available by this Act may be used for a
project for the construction, alteration, maintenance, or repair of a public building or public
work unless all of the iron, steel, and manufactured goods used in the project are produced in
the United States."
• Section 1606 of the Recovery Act, which requires the payment of not less than the prevailing
wages under the Davis-Bacon Act to "all laborers and mechanics employed by contractors
and subcontractors on projects funded directly by or assisted in whole or in part by and
through the Federal Government pursuant to this Act."

1.7 Will additional Guidance be issued?

Yes. This Guidance document is intended to cover items critical to the first phase of Recovery
Act implementation. More detailed guidance covering a fuller range of items will be issued 30-
60 days after enactment.

In addition, OMB is creating the Recovery Act Architecture Package to support shared
understanding of technical requirements and solution approaches across all stakeholders. Drafts

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of this document will be issued for review and comment on an accelerated schedule shortly after
issuance of this guidance.

1.8 Are there specific instructions for transmitting required reporting to OMB or to
other appropriate recipients?

Throughout this Guidance, there are numerous instances where Federal agencies are required to
submit information to OMB or to other locations. Specific reporting instructions are provided in
Appendices 1 and 2 of this Guidance or will otherwise be provided in future guidance.

1.9 Does this Guidance automatically provide Federal agencies with a waiver of existing
legislative or administrative requirements?

No. If an agency believes it is appropriate to seek a waiver of an existing requirement in order to

facilitate effective implementation of the Recovery Act, the agency shall pursue such waiver
consistent with existing processes.

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Section 2 – Agency Plans and Public Reporting

2.1 What reporting is required under the Recovery Act?

There are eight different levels of reporting necessary to meet accountability and transparency
objectives of the Recovery Act and this Guidance. The reporting requirements in this Guidance
apply at the department or agency level, except those reporting requirements in Section 2.8.

Note: Each reporting requirement below should be considered a part of the agency-wide and
program-specific plans required in Sections 2.7 and 2.8. Thus, the planning process begins
immediately and certain aspects of the plan will be made available on Recovery.gov and agency
websites as they are ready for publication. The completed plans required by May 1st in Sections
2.7 and 2.8 will build off these earlier planning documents and fill in the remaining required
elements.

Section Reporting Requirement Period

2.2 Major communications Immediate/Ongoing
2.3 Formula block grant allocation reports Immediate/Ongoing
2.4 Initial weekly reports to help populate early phases of 3/3/09 – 5/12/09
Recovery.gov
2.5 Monthly financial reports Starting 5/8/09
2.6 Award-level reporting consistent with what is currently required Starting 5/5/09
for USAspending.gov
2.7 Agency-wide Recovery Act plans NLT 5/1/09
2.8 Program-specific Recovery Act plans NLT 5/1/09
2.9 Recipient reporting Starting 7/10/09

2.2 What communications materials are agencies required for posting to Recovery.gov?

Beginning immediately, all Federal agencies receiving Recovery Act funds should determine
which major communications are appropriate for posting to the ‘Announcements’ section of
Recovery.gov. These materials should be in a press release format, and should include a clear
heading and short (no more than 5 sentences) overview of the main communications points.
Items should be of interest to a broad cross section of the American public, and focus on
Presidential priorities and programs with a major impact.

In addition, agencies should provide notification of any major press events or videos produced
for the implementation of the Recovery Act. Recovery.gov will feature videos highlighting both
major actions being taken by the Federal government as well as the impact the Recovery Act is
having for the American people.

These communication materials should be cleared by the senior accountable official at the
agency or his/her designee.

Instructions for reporting this information are included in Appendix 1.

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2.3 What is required for the formula block grant allocation reports?

As soon as information becomes available, Federal agencies are required to provide details on
the allocations made for each formula block grant.

These formula block grant reports should be cleared by the senior accountable official at the
agency or his/her designee.

See Appendix 1 for required data fields and reporting instructions.

2.4 What is required for the initial weekly reports?

Starting on Tuesday March 3rd, and on each Tuesday thereafter through May 12th, all agencies
receiving Recovery Act funds will submit the following information to OMB for cumulative
recovery activity through the preceding Friday. All amounts are cumulative, year-to-date.
• By Treasury Account, total appropriations, total obligations, and total expenditures as
recorded in agency financial systems on a cumulative basis; and
• A short bulleted list of the major actions taken to date and major planned actions. “Major”
actions include those of likely interest to senior government officials, Congress, and the
public.

Please note: Expenditure data is optional on the weekly report until April 6th. Other required
amounts should be reported as zero if unknown at the time of reporting.

This information will be made publically available on Recovery.gov, and should be provided
according to the format and instructions included in Appendix 1.

These weekly reports should be cleared by the senior accountable official at the agency or his/her
designee.

2.5 What is required for the monthly financial reports?

Starting on May 8th, agencies must begin submitting financial data for the population of
Recovery.gov. Agencies will submit obligations and expenditures by TAFS, vendor,
contact/grant/loan number, program, and other data elements.1 Agency submissions will take
place no later than eight work days after the end of the month. This will allow agencies time to
complete their SF 224, FMS 1219/1220, and SF 1218/1221 reporting to FMS. Agency reporting
on obligations and expenditures will show cumulative amounts through the fiscal year.

1
OMB will work with agencies in the immediate future to evaluate the implementation challenges associated with
reporting obligations and expenditures by categories beyond TAFS (i.e., vendor, contract/grant/loan number, etc.).
OMB will incorporate, as appropriate, the result of these consultations into the next issuance of Recovery Act
guidance.

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In addition to this reporting, each agency shall submit monthly reports no later than eight work
days after the end of the month providing allocations of all mandatory and other entitlement
programs by State, county, or other appropriate geographical unit.

Further information, including the format and instructions for monthly reports, will be included
in future Guidance.

2.6 What is required for award level transaction data?

Recovery Act award obligations will be reported according to the current procedures for
USASpending. To the extent possible, agencies should immediately begin including Recovery
Act awards in their USASpending files, using the methodologies described below. Specifically:

For Contracts: Information will be reported to USASpending.gov through FPDS. When

entering data in FPDS on any action (including modifications) funded by the Recovery Act,
agencies must enter the Treasury Account Symbol (TAS) in the Description of Requirement
field. The TAS code should be entered with TAS:: preceding the code and ::TAS following the
code. The code itself should have spaces between the segments, i.e., Agency code (2 characters)
would be entered followed by a space then the Account code (4 characters) followed by a space
and then the Subaccount code (3 characters) which is optional and would only be included by
those agencies utilizing this segment of the code. The entry would appear as follows:

TAS::XX XXXX XXX::TAS

Agencies should coordinate with their budget\finance offices to identify the applicable TAS
codes.

Standard data validation practices currently required by the Office of Federal Procurement Policy
(OFPP) assure the accuracy of contracting data, including data on contracts awarded under the
Recovery Act.

For All Assistance Transactions (including grants, cooperative agreements, loans, loan
guarantees, and other assistance): Agencies will continue to submit information on Federal
assistance transactions in the FAADS PLUS file format currently required for reporting on
USASpending.gov. For Recovery Act funds there are two modifications to the normal
procedures for submitting FAADS PLUS files:

1. If agencies cannot ensure the Program Source/Treasury Account Symbol (TAS) is sufficient
to segregate Recovery Act funding from non-Recovery Act funding in their FAADS PLUS
submission, agencies must include a 3 digit code at the end of their FAADS PLUS file
(following Original Subsidy Cost of the Direct Loan/Loan Guarantee), with the following
values:
a. NON: Indicates the transaction does not utilize Recovery Act funds.
b. REC: Indicates the transaction utilizes Recovery Act funds.
Transactions which utilize both Recovery Act and non-Recovery Act funding must be broken
into two separate lines in the FAADS PLUS file.

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2. FAADS PLUS submissions will be required 5 days after the close of each month starting on
May 5th, instead of the current 20 days. Options are currently being explored for developing
the capability to accept this data more frequently in the future, and agencies should begin
preparing for a system-to-system interface which would enable this information to be made
available with a minimal time-lag after the transaction occurs.

If agencies are not able to meet these requirements for their March 20th and April 20th FAADS
PLUS submissions, no later than May 5th agencies must have in place the capability to clearly
identify Recovery Act awards in their USASpending files, and must also be able to retroactively
identify any awards submitted before May 5th as Recovery or non-Recovery.

For both Assistance and Contracts: Current reporting under the Federal Funding Accountability
and Transparency Act only requires information above $25,000 to be reported to
USASpending.gov. The Recovery Act requires reporting on all funding, though it does allow for
reporting of aggregates for amounts under $25,000.

Beginning on May 5th, agencies must be prepared to report all Recovery Act funding through
FPDS or in their FAADS PLUS files. Amounts under $25,000, payments to individuals,
administrative funding, and other amounts not currently reported to USASpending.gov can be
entered into FPDS or in the FAADS PLUS file using a single vendor name from a list to be
provided in future guidance. Purchase card transactions will be addressed in subsequent
guidance as well. Agencies unable to report aggregate contract information through FPDS may
include these aggregate amounts in their FAADS PLUS file.

For obligations that are funded by both recovery and non-recovery funds, agencies must record
each line of accounting in financial systems and in business systems (i.e., grant and contract
writing systems) separately. Example: An award is made for $100,000. The existing Pell Grant
program award amount is increased by $500 of recovery money. The obligation would reflect
one line of accounting for the current base Pell Grant amount that is funded by non-recovery
money and a second line of accounting for the increase of $500 funded by recovery money.

Data Quality and Completeness: Given the high priority placed on the accurate display of
information related to Recovery Act on Recovery.gov, agencies are responsible for pre-
dissemination review of all information that will appear on Recovery.gov. All agencies must
ensure all reporting related to Recovery Act funding is complete and accurate and complies with
the agency’s Information Quality Act guidelines. Each agency on its Recovery.gov page shall
provide it’s point-of-contact for information quality.

2.7 What is required for agency-wide Recovery Act plans?

Agency plans will be due to OMB no later than May 1st. Agencies should work with their OMB
representative to set an appropriate submission date and review process. Consistent with sound
program management principles, each agency receiving recovery funds must develop formal
documented plans for how the recovery funds will be applied and managed.

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The Agency Plan should describe both broad Recovery Act goals and how different parts of the
agency are coordinating efforts toward successful implementation and monitoring. The agency
must provide a summary table that lists each Recovery Act program and the amount of Recovery
Act funds covered by the plan broken-out by appropriation title. For example, agencies should
describe processes in place for senior managers to regularly review the progress and performance
of major programs, including identifying and completing corrective actions. Agency plans
should also identify the expected savings (e.g., from energy efficient buildings) and future costs
(e.g., having to maintain new facilities) related to implementing the Recovery Act.

Consistent with OMB review process identified above, any component of these plans that are
substantially complete prior to May 1st should be posted on agency web pages as soon as
available.

2.8 What is required for program-specific Recovery Act plans?

Agency Program plans will be due to OMB no later than May 1st. Agencies should work with
their OMB representative to set an appropriate submission date and review process. These
separate plans are required for each Recovery Act program specifically named in the legislation
and corresponding to new Treasury accounts established. To the extent possible, each agency’s
Recovery Program Plan should be a summary of the specific Recovery Act projects and activities
planned.

Each Recovery Program Plan must minimally include:

a. Funding Table: agency funding listed by program, project, and activity categories, as
possible. Funds returned to the program or any offsetting collections received as a result of
carrying out recovery actions are to be specifically identified.
b. Objectives: a general Recovery Act description of the program’s Recovery Act objectives
and relationships with corresponding goals and objectives through on-going agency
programs/activities. Expected public benefits should demonstrate cost-effectiveness and be
clearly stated in concise, clear and plain language targeted to an audience with no in-depth
knowledge of the program. To the extent possible, Recovery Act goals should be expressed
in the same terms as programs’ goals in departmental Government Performance Results Act
strategic plans.
c. Activities: kinds and scope of activities to be performed (e.g. construction, provision of
services, conduct of research and development, assistance to governmental units or
individuals, etc.)
d. Characteristics: types of financial awards to be used (with estimated amount of funding for
each), targeted type of recipients, beneficiaries and estimated dollar amounts of total
Recovery Act funding for Federal in-house activity, non-federal recipients and methodology
for award selection.
e. Delivery Schedule: schedule with milestones for major phases of the program’s activities
(e.g. the procurement phase, planning phase, project execution phase, etc., or comparable)
with planned delivery date(s).
f. Environmental Review Compliance: description of the status of compliance with National
Environmental Policy Act, National Historic Preservation Act, and related statutes.

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g. Savings or costs: expected increases or reductions in future operational costs (e.g., savings
due to energy efficient facilities or increased operational costs as a result of having more
buildings to manage and maintain).
h. Measures: expected quantifiable outcomes consistent with the intent and requirements of the
legislation and the risk management requirements of Section 3.5, with each outcome
supported by a corresponding quantifiable output(s) (in terms of incremental change against
present level of performance of related agency programs or projects/activities specified in the
plan) – agencies must specify the length of the period between measurements (e.g., monthly,
quarterly), the measurement methodology, and how the results will be made readily
accessible to the public. The measures currently used to report programs’ performance in
relationship to these goals (consistent with Administration policy) should be retained. In
addition to reducing burden on grant recipients and contractors, use of existing measures will
allow the public to see the marginal performance impact of Recovery Act investments.
i. Monitoring/Evaluation: description of the agency process for periodic review of program’s
progress to identify areas of high risk, high and low performance, and any plans for longer
term impact evaluation.
j. Transparency: description of agency program plans to organize program cost and
performance information available at applicable recipient levels.
k. Accountability: description of agency program plans for holding managers accountable for
achieving Recovery Act program goals and improvement actions identified.
l. Barriers to Effective Implementation: a list and description of statutory and regulatory
requirements, or other known matters, which may impede effective implementation of
Recovery Act activities and proposed solutions to resolve by a certain date.
m. Federal Infrastructure Investments: a description of agency plans to spend funds effectively
to comply with energy efficiency and green building requirements and to demonstrate
Federal leadership in sustainability, energy efficiency and reducing the agency’s
environmental impact.

Consistent with the OMB review process identified above, any components of these plans that
are substantially complete prior to May 1st should be posted on agency web pages as soon as
available.

2.9 What reporting will be collected from recipients of Federal funding for reporting on
Recovery.gov?

The Recovery Act and this guidance require extensive reporting from recipients of Federal
funding. The Recovery Act defines “recipient” as any entity that receives Recovery Act funds
directly from the Federal Government (including Recovery Act funds received through grant,
loan, or contract) other than an individual and includes a State that receives Recovery Act funds.
See Section 1512 of the Recovery Act.

These requirements apply to:

• Prime recipients. Reporting requirements only apply to the prime non-Federal recipients of
Federal funding, and the subawards (i.e., subgrants, subcontracts, etc.) made by these prime
recipients. They do not require each subsequent subrecipient to also report. For instance, a
grant could be given from the Federal government to State A, which then gives a subgrant to

14
 City B (within State A), which hires a contractor to construct a bridge, which then hires a
subcontractor to supply the concrete. In this case, State A is the prime recipient, and would
be required to report the subgrant to City B. However, City B does not have any specific
reporting obligations, nor does the contractor or subcontractor for the purposes of reporting
for the Recovery.gov website. All recipients of Federal funds must continue to comply with
existing agency and program reporting requirements.
• Only recipients receiving awards funded through discretionary appropriations. These
reporting requirements only apply to non-Federal recipients who receive funding provided
through discretionary appropriations. The reporting requirements do not apply to funding
received through entitlement or other mandatory programs, except as specifically required by
OMB.

As required by Section 1512 of the Recovery Act and this guidance, each recipient, as described
above, is required to report the following information to the Federal agency providing the award
10 days after the end of each calendar quarter, starting on July 10th.

These reports will include the following data elements, as prescribed by the Recovery Act:
(1) The total amount of recovery funds received from that agency;
(2) The amount of recovery funds received that were obligated and expended to projects or
activities. This reporting will also included unobligated Allotment balances to facilitate
reconciliations.
(3) A detailed list of all projects or activities for which recovery funds were obligated and
expended, including--
(A) The name of the project or activity;
(B) A description of the project or activity;
(C) An evaluation of the completion status of the project or activity;
(D) An estimate of the number of jobs created and the number of jobs retained by the
project or activity; and
(E) For infrastructure investments made by State and local governments, the purpose,
total cost, and rationale of the agency for funding the infrastructure investment with
funds made available under this Act, and name of the person to contact at the agency
if there are concerns with the infrastructure investment.
(4) Detailed information on any subcontracts or subgrants awarded by the recipient to include
the data elements required to comply with the Federal Funding Accountability and
Transparency Act of 2006 (P.L. 109-282), allowing aggregate reporting on awards below
$25,000 or to individuals, as prescribed by the Director of OMB.

The final guidance issued by OMB for the Recovery Act will lay out in more detail specific
reporting instructions and how the data collection for this reporting will work government-wide.
OMB is actively pursuing options for collecting some of this information centrally, focusing first
on the data required in (4) above in the standard formats currently used by Federal agencies to
report to USASpending.gov. OMB is also actively considering how to centralize the collection
and reporting of the information required in section (3) above, though the current preference is
that, to the extent possible, this data should be collected and reported through existing program
level systems. Agencies should develop initial contingency plans for collecting and reporting
this information directly on the agency recovery website within the 30 days specified by law.

15
Instructions for reporting this information will be provided in subsequent guidance. Agencies
should be cautious before making investments in new system capabilities before further guidance
is issued or before consulting with OMB.

Regarding the reporting requirements in 3(d), usual methods for reporting jobs created by a
contract do not take into account the time frame over which the jobs are created. As a result,
they are likely to be inconsistent with macroeconomic estimates of jobs created at a point in
time. For this reason, departments and agencies should use conventional jobs estimates for
internal planning purposes only. Uniform reporting requirements for estimates of job
creation will be specified at a later time.

Federal agencies must instruct recipients covered by these reporting requirements that Recovery
Act funds can be used in conjunction with other funding as necessary to complete projects, but
tracking and reporting must be separate to meet the reporting requirements of the Recovery Act
and this Guidance.

For information related to the Recovery Act to be fully transparent to the public, each agency
must develop a list of agency systems which will capture significant program-related information
related to the use of Recovery Act funds from recipients, either through existing or new reporting
requirements. Further, agencies must identify what information each system captures, if it is
publicly available in a user-friendly format, and if not, what technological or policy barriers exist
to it being made public. For those systems presently unable to make information public in a user-
friendly format, agencies should provide an estimate of resources necessary to achieve full
transparency. This list need not include core financial and other systems which make information
available through existing financial reporting, USASpending.gov, or other government-wide
reporting requirements. Each agency should assemble this list and provide it to the E-Gov
Administrator no later than March 15th. Reports can be sent to [email protected].

2.10 How will agencies implement tribal self-determination contracting authorities with
Recovery Act funding?

Section 1610(b) of the Recovery Act allows the Department of the Interior’s Bureau of Indian
Affairs, the Department of Health and Human Services’ Indian Health Service, and the
Department of Housing and Urban Development to use existing self-determination contracting
authorities with Indian tribes. However, it also requires the appropriate Secretary to “incorporate
provisions to conform the agreement with the provisions of this Act regarding the timing for use
of funds and transparency, oversight, reporting, and accountability, including review by the
Inspectors General, the Accountability and Transparency Board, and Government Accountability
Office, consistent with the objectives of this Act.”
In their Agency-wide Recovery Act plans, DOI, HHS, and HUD shall identify how they will
incorporate these provisions into tribal self-determination contracts that are used for Recovery
Act funds. To assist these agencies, OMB will convene a meeting for the agencies to discuss how
to incorporate appropriate transparency and accountability provisions into tribal self-
determination contracts.

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2.11 Will these reports be made available to the public?

Yes. All reporting described above may be used to populate Recovery.gov or agency recovery
websites. Agency-wide and program-specific plans will be posted on agency websites, on a
dedicated page for Recovery Act activities. See Section 2.12 and Appendix 2 for more
information on agency websites.

2.12 What are the requirements for agency websites?

Agencies are not required to develop new websites dedicated to recovery efforts. The initiative
is designed to create one portal where the public can find and analyze information and report
potential fraud, waste and abuse pertaining to the Recovery Act. As such, www.recovery.gov is
intended as the single, consolidated portal to that information. Multiple websites will confuse
the public.

Each agency should, however, dedicate a section of its primary website to Recovery Act
activities within one week of issuance of this guidance. Those pages must be consistently
identified with a url that identifies the key entry page to that information with a “/recovery”
extension, i.e. www.agency.gov/recovery.

See Appendix 2 for a description of specific requirements and best practices for agency websites.

2.13 What impact do the new data reporting requirements under Recovery Act have on
pre-existing data collection requirements?

This Guidance is intended to ensure the government-wide reporting requirements in the

Recovery Act are fulfilled and that all necessary data to populate Recovery.gov is available. All
other reporting requirements in the Recovery Act and existing law must continue to be fulfilled
and should be made transparent on agency recovery websites.

In the short term, agencies should not change standard reporting for awards, unless there is a
legal or other compelling justification. However, if the Recovery Act requires modifications or
additions, agencies should integrate new and existing procedures to streamline data collection
and to minimize funding recipients’ burden. Cases that may require waivers to existing
standards to accommodate Recovery Act reporting requirements will be evaluated by the
Recovery Act Accountability and Transparency Board (see Section 3.1) and OMB in the context
of a government-wide review of data reporting.

2.14 What procedures will agencies follow to comply with relevant requirements of the
Paperwork Reduction Act?

The collections of information that will be necessary to comply with Recovery Act disclosure
and transparency provisions will be subject to OMB review and approval under the Paperwork
Reduction Act of 1995 (PRA). In recognition of the need to act quickly to collect information

17
from recipients of Recovery Act funds, OMB will allow agencies to request “emergency
processing” of information collection requests under OMB’s PRA regulations (5 CFR 1320.13)

Each request for emergency processing needs to be accompanied by a written determination that
the information collection is necessary to implement provisions of the Recovery Act. In
addition, the agency is to submit information indicating that it has taken all practicable steps to
consult with interested agencies and members of the public in order to minimize the burden of
the collection of information.

1. Public notice. The agency is to publish in the Federal Register a notice that the emergency
clearance request has been submitted to OMB for review (unless such notice is waived by
OMB). This notice is to include a statement that the agency is requesting emergency processing
within a specified time period.

2. Potential OMB Actions. OMB will approve or disapprove an emergency collection of

information within a reasonable time period, provided that such time period is consistent with the
purposes of the PRA. An inconsistent time period is one that does not permit OMB to evaluate
independently whether the proposed collection of information:

• Is necessary for the proper performance of the agency functions;

• Imposes unnecessary or excessive burden;

• Unnecessarily duplicates other available information;

• Maximizes practical utility; and

• Otherwise meets the substantive criteria embodied within the PRA.

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Section 3 – Governance and Risk Management

3.1 What is the role of Recovery Act Accountability and Transparency Board (the
“Board”) in coordinating government-wide policy on the Recovery Act?

The Board is responsible for coordinating and conducting oversight of Federal spending under
the Recovery Act to prevent waste, fraud, and abuse. One way the Board will fulfill these
responsibilities is by monitoring the accountability objectives of the law, including the
following:

• Funds are awarded and distributed in a prompt, fair, and reasonable manner;
• The recipients and uses of all funds are transparent to the public, and the public benefits of
these funds are reported clearly, accurately, and in a timely manner;
• Funds are used for authorized purposes and instances of fraud, waste, error, and abuse are
mitigated;
• Projects funded under this Act avoid unnecessary delays and cost overruns; and
• Program goals are achieved, including specific program outcomes and improved results on
broader economic indicators.

3.2 What is the role of OMB in coordinating government-wide policy on the Recovery
Act?

OMB will coordinate Recovery Act activities until the Board is in place. Once the Board is fully
in place, OMB will support the Board in its oversight of Recovery Act implementation, including
working with agencies to meet full performance of the accountability objectives. Additionally,
Federal agencies will be expected to continue to work directly with OMB on implementation
issues related to the Recovery Act.

3.3 Are agencies required to designate a senior accountable official for Recovery Act
activities?

Yes, agencies are required to designate a senior accountable official for Recovery Act activities.
This individual should have responsibility and authority to coordinate across agency bureaus,
program offices, and programs. It is recommended that the senior accountable official be at the
sub-cabinet or Deputy Secretary level, and lead regular reviews of recovery planning,
implementation, and performance. The senior accountable official should also designate a
person or office for maintaining their agency’s Recovery Act content on their website.

3.4 Are there certain risks that all agencies must include as part of their risk mitigation
process?

Yes, there are specific risks that all agencies must include as part of their risk mitigation process.
These risks can also be thought of as “accountability objectives,” which are outlined in Section
3.1 above. This means that if agencies are not meeting an accountability objective, such as

19
effectively mitigating the risk of fraud, there may be a risk of not meeting the broader goals of
the Recovery Act (e.g., job creation, economic growth).

Figure 1, includes the government-wide accountability measures and organizes them into an
accountability risk framework. The framework places the objectives under the phase(s) of the
funding lifecycle where, if necessary, those risks will be monitored and mitigated: pre-award,
performance-period, post performance.

Figure 1, Recovery Act Accountability Framework and Objectives

An additional area of risk is improper implementation of transparency and reporting

requirements (i.e., providing timely and accurate data via prescribed technical solution
approaches). The appropriate mitigation is to participate in the review and comment on the
Recovery Act Architecture Package while it is being developed, and then use it to guide agency
Recovery Act transparency and reporting activities.

3.5 What are the reporting requirements for these common risk areas?

There are no specific reporting requirements related to risk management established by this
Guidance. However, it is anticipated that the Board may initiate reporting requirements related
to risk management at some point in the future. More information on this issue will be available
in the next issuance of this Guidance.

In the interim, agencies should begin planning to capture statistics related to the accountability
objectives. This information could be available on Recovery.gov and be presented in aggregate
as well as by agency and project, when possible. Reporting the information in this manner
would allow stakeholders to see government-wide, agency–by- agency, and agency-program and
therefore enable visibility in both aggregate and detailed views.

To assess how well the Federal government and funding recipients are progressing in meeting
the objectives, the agencies should begin considering how they would track progress against
accountability measures, such as the following:

1. Audits and investigation of Recovery Act funds occurring to identify wasteful spending and
minimize waste, fraud, and abuse;
2. Qualified personnel overseeing Recovery Act funds;
3. Opportunities to use competitive awards maximized;
4. Timely award of dollars;
5. Timely expenditure of dollars;
6. Timely completion of planned work;

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7. Cost overruns minimized; and
8. Improper payments minimized.

3.6 For risks that are common to all agencies, are there specific risk mitigation actions
that all agencies must initiate?

Yes, for the risks that are common to all agencies, specific risk mitigation actions are included
throughout this Guidance and include, but are not limited to, the following:

• Ultimately, agencies must determine what award method(s) will allow recipients to
commence expenditures and activities as quickly as possible consistent with prudent
management and statutory requirements. Agencies may consider obligating funds provided
under Recovery Act on an existing grant, including, but not limited to, a continuation or
renewal grant.
• To enable timeliness of awards, agencies should engage in aggressive outreach to potential
applicants to begin application planning activities, including the process for Central
Contractor Registration (CCR) and obtaining a Dun and Bradstreet Universal Numbering
System (DUNS) number. Outreach can also include efforts to update and validate existing
CCR and DUNS registration data.
• Consider weighting selection criteria to favor applicants for assistance with demonstrated
ability to deliver programmatic result and accountability objectives included in the Recovery
Act.
• Adapt current performance evaluation and review processes to include the ability to report
periodically on completion status of the program or activity, and program and economic
outcomes, consistent with Recovery Act requirements. Establish procedures to validate the
accuracy of information submitted on a statistical basis and/or risk based approach as
approved by OMB.
• Using other than fixed-price contracts requires agencies to pay special attention to ensuring
that sufficient qualified acquisition personnel are available to perform contract administration
to mitigate the government’s risk. When riskier contract types are proposed, agencies should
provide appropriate oversight so that all alternatives have been considered and that qualified
staff is available for monitoring performance to mitigate risks.
• Agencies should review their internal procurement review practices to promote competition
to the maximum extent practicable. For instance, agencies might lower the dollar thresholds
at which higher level review is required when a non-competitive acquisition strategy is
contemplated.
• Agencies must ensure receipt of funds is made contingent on recipients meeting the reporting
requirements in Section 1512 of the Act.
• Agencies must structure acquisitions to result in meaningful and measurable outcomes that
are consistent with agency plans and that promote the goals of the Recovery Act. The
evaluation criteria for award should include those that bear on the measurement and
likelihood of achieving these outcomes.
• Consider alternatives to contract financing, including structuring contract line items to allow
invoicing and payments based upon interim or partial deliverables, milestones, percent-of-
completion, etc. Ensuring consideration of contractor cash flow during acquisition planning

21
 will mitigate schedule and performance risks to the government and reduce costs to the
contractor associated with financing in a tight credit market.
• Evaluate workforce needs in order to appoint qualified Contracting Officers, Contracting
Officer Technical Representatives (COTRs), and Program Managers with certification levels
appropriate to the complexity of Recovery Act projects.

Sections 4 – 7 include additional detail on the items above.

3.7 Should agencies undertake efforts to identify, prioritize, and mitigate implementation
risks associated with the Recovery Act that are specific to their agency and programs?

Yes, beyond the “common risks” discussed above, agencies should also be identifying,
prioritizing, and mitigating agency / program specific-risks. Whereas the common risks may
impact the larger objectives of the Recovery Act (i.e., job creation, economic growth), agency
risk management efforts should focus on items that may negatively impact the achievement of
programmatic objectives. Whenever possible, agencies should leverage existing practices (e.g.,
assessments required under OMB Circular A-123) and teams (e.g., senior assessment teams) to
manage risk.

For programs that receive Recovery Act funding, agencies should consider the following when
assessing risk (note that the following list is intended to be illustrative):

• Which program are receiving the most funding;

• Are program outputs and outcomes clear and measurable;
• Are existing resources sufficient to achieve program objectives and proper award and
management in accordance with statutory and regulatory requirements;
• Who is (are) the final recipient(s) of funds (e.g., contractor, sub-contractor, state, locality,
educational institution);
• Are existing internal controls sufficient to mitigate the risk of waste, fraud, and abuse
adequately;
• Are there performance issues with (potential) funding recipients; and
• Are there leading indicators or lagging indicators (e.g., error measurements) to monitor
ongoing program performance?

Agencies should also develop a plan for monitoring and reassessing risk throughout Recovery
Act funding availability and project close-out.

3.8 What risk mitigation actions must agencies take for risks specific to their agency and
programs?

Depending on the answers to the questions suggested in Question 3.7, agencies should develop
mitigation plans that align with specific risks. At a minimum, agencies should focus on those
risks with the highest probability of occurrence and the greatest impact if not mitigated. As with
the common government-wide risks, agencies are strongly encouraged to identify common
agency risks and corresponding accountability objectives.

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Agencies should determine whether final action has been taken regarding weaknesses or
deficiencies disclosed by prior audits and investigations in program areas under which Recovery
Act funds are authorized. If final action has not been completed, agencies should: (1) expedite
such action to preclude the continuance of such weaknesses or deficiencies in the administration
of Recovery Act funded programs; or (2) provide an explanation of why such corrective actions
cannot or should not be taken in the administration of Recovery Act funded programs.

3.9 What are the reporting requirements for these agency-specific risk areas?

Initially, agencies risk assessments, mitigation plans, and reporting for risks specific to an agency
or program are for internal agency use. Agencies are also required to include in program-
specific planning documents information about how managers will be held accountable for
achieving recovery program goals and improvement actions identified.

Per Section 3.5 above, agencies will eventually be required to report on their risk mitigation
efforts in these areas to OMB or the Board, including performance measures for the
accountability objectives with associated performance ranges. If programs fall outside of what is
considered to be an acceptable performance range, those programs should be required to explain
why a shortfall exists and / or provide a corrective action or get-well plan.

3.10 Does the Office of Personnel Management offer any tools that my agency can use to
match the right talent with the right job and hire as quickly as possible?

Currently, there are many, important hiring flexibilities available to agencies.

The Chief Human Capital Officers Act of 2002 provided new hiring authorities which, coupled
with those that already existed, have the potential for dramatically improving agencies’ ability to
get the right people in the right jobs at the right time.

OPM has a number of tools on its website to help agencies understand and implement human
resources flexibilities that may serve their needs under the Recovery Act and the agency Chief
Human Capital Officer (CHCO) can provide advice and assistance on using these flexibilities:

• The Human Resources Flexibilities and Authorities in the Federal Government handbook
provides detailed information on staffing, benefits, compensation, work/life and other HR
flexibilities. The Handbook can be accessed at: http://www.opm.gov/omsoe/hr-
flex/HumanResourcesFlexibilities_and_AuthoritiesHandbook.pdf

• The Federal Hiring Flexibilities Resource Center provides guidance on hiring flexibilities
and includes an interactive tool to help determine the appropriate flexibility based on
particular needs. The Resource Center can be accessed at:
http://www.opm.gov/Strategic_Management_of_Human_Capital/fhfrc/default.asp

• The Hiring/Recruitment Video Library is a Web-based learning tool featuring vignettes on a

number of hiring flexibilities, including direct hire, veterans’ appointing authorities, and
excepted service hiring. The Video Library can be accessed at:
http://www.opm.gov/video_library/Recruitment/Hiring/Index.asp

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• The Hiring Toolkit provides strategies, tools and techniques to help agencies improve their
hiring processes. The Toolkit can be accessed at: http://www.opm.gov/hiringtoolkit/

When deciding which hiring flexibility to use, agencies should assess their needs in relationship
to the duration of the funding. Therefore, they should strongly consider temporary or term
appointments with durations consistent with the monies.

OPM will continue working closely and directly with agencies impacted by the Recovery Act so
they understand the range of currently available human resources flexibilities and will partner
with agencies to develop effective human capital strategies aimed at meeting program objectives
under the Act.

To support the goals of transparency and accountability for activities carried out under the Act,
OPM will also provide oversight so that agencies are exercising human resources flexibilities
effectively, efficiently, and in accordance with merit system principles. For additional questions,
please contact your agency’s OPM Human Capital Officer or for other OPM questions please
email [email protected].

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Section 4 – Budget Execution

4.1 Where is general guidance on budget execution?

OMB publishes general guidance on budget execution in OMB Circular A-11. Sections 120 and
121 address apportionments, and Section 130 addresses budget execution reporting. OMB will
publish additional guidance, most likely in an OMB Bulletin, after enactment of the American
Recovery and Reinvestment Act of 2009 (Recovery Act).

4.2 Can agencies co-mingle Recovery Act and non-Recovery Act funds?

No. To maximize transparency of Recovery Act spending required by Congress and the
Administration, agencies must not co-mingle Recovery Act funds with other funds in
apportionment requests they prepare for OMB; SF 133 budget execution reports; or data feeds or
reports they provide to Recovery.Gov. Within their financial systems, agencies must separately
track apportionments, allotments, obligations, and expenditures related to Recovery Act funding.

Agencies in some cases may need to use Recovery Act funds in conjunction with other funds to
complete projects. They may do so, but they must separately track and report the use of
Recovery Act funds for these projects.

4.3 Can agencies use Recovery Act funds to pay their own fixed costs?

Sometimes. When an agency receives a supplemental appropriation of Recovery Act funds for a
program, project, or activity for which Congress provided appropriations for in a prior Act, the
agency should not use Recovery Act funds to pay fixed, administrative support costs, e.g. rent.
By contrast, agencies can exercise judgment in using Recovery Act funds provided for a new
program, project, or activity to support fixed administrative costs.

4.4 Can agencies request a waiver from OMB to the requirement that they use new
TAFSs to record and report Recovery Act financial activity?

Yes. The requirement that new TAFSs be created to record and report Recovery Act financial
activity applies to both Division A and Division B of the Recovery Act. If an agency feels that
establishing unique TAFSs will impose an extreme burden, will significantly delay funding
allocations and awards, AND will negatively impact its ability to fulfill its reporting
requirements under the Act, the agency can apply for a waiver from this provision. A request for
a waiver must be made in writing by the Agency head and a scanned copy of the letter must be
emailed to [email protected] by close of business on February 20th, 2009. All requests
will be considered and waivers issued by COB on February 25th, 2009. Such requests will only
be approved when the three conditions above are met. You should include in the letter the email
address to which a scanned copy of the response should be sent.

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4.5 Will agencies need to do anything beyond standard practice if OMB grants a waiver
from establishing a unique TAFS for a program funded by the Act?
Yes. In cases without a unique TAFS for Recovery Act funds, OMB will use Category B
projects to facilitate separation of Recovery Act and non-Recovery Act funds in agency financial
systems. The apportionment process will provide a basis for agencies to report obligations
financed through Recovery Act budget authority in their budget execution reports. The omission
of unique TAFSs for Recovery Act funds will complicate the reporting of net outlays in TAFSs
that take in offsetting collections for both Recovery Act and non-Recovery Act programs; as a
result, OMB will require separate reporting of Recovery Act collections in these TAFSs.
Agencies may also have slightly different requirements in reporting some of their data to the
Recovery.gov web site.
4.6 How will OMB apportion Recovery Act funds?

OMB in large measure will apportion TAFSs with Recovery Act funds the same way it
apportions other TAFSs. In some cases, this will involve apportioning funds by time period
(Category A). In other cases this will involve apportioning funds by project (Category B). The
next four questions describe exceptions to these standard processes.

4.7 What special treatment is required on apportionment requests if OMB allows a TAFS
to have both Recover Act and non-Recovery Act funding?

If a TAFS has both Recovery Act and non-Recovery Act funding, OMB will establish very strict
conventions requiring agencies to use separate Category B projects for all Recovery Act funds in
both apportionments and budget execution reports. Agencies must separately track and report on
apportioned amounts financed through Recovery Act and non-Recovery Act sources, as well as
separately track and report on obligations captured in their financial systems or submitted in SF
133 budget execution reports. Agency apportionment requests and SF 133 reports will show
apportioned amounts and obligations, respectively, using Category B project stubs that start with
the words “Recovery Act”.

In addition, if OMB grants a waiver so a TAFS has both Recovery Act and non-Recovery Act
funds, the apportionment requests must use a line split to separately show Recovery Act and non-
Recovery Act budget authority. The stub for the line should read “Recovery Act budget
authority”.

4.8 What special treatment is required on apportionment requests with regard to

authority from offsetting collections if a TAFS has both Recovery Act and non-
Recovery Act funds.

If a TAFS has both Recovery Act and non-Recovery Act funding, agencies must separately show
authority from offsetting collections that comes from recovery funding versus non-recovery
funding on their apportionment requests. Agencies will use a line split value of “9” on the
apportionment to do this. In addition, they will preface the line stub with the phrase “Recovery
Act”.

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The lines that show BA from offsetting collections are:

Line
Number Description
3D1A BA: Offsetting Collections - Earned, Collected
3D1B BA: Offsetting Collections - Earned, Change in receivables from Fed
sources
3D3 BA: Offsetting collections - Anticipated
3D4 BA: Offsetting Collections - Previously unavailable

The reason to distinguish authority from offsetting collections that come from recovery funds is
to accumulate sufficient information on offsetting collections to calculate net outlays. While
FACTS II data that underlie the SF 133 reports identify the obligations and disbursements
associated with recovery funds, the FACTS II data do not provide sufficient detail to determine
the collections associated with Recovery Act funding in a TAFS that has both Recovery Act and
non-Recovery Act funding. To compute or cross-check net outlays, OMB will compile
obligations and disbursements from FACTS II as well as authority from collections – as a proxy
for actual collections – in the apportionments.

4.9 What special treatment is required on apportionment requests for a TAFS that is an
ordering account in an interagency agreement?

As background, Section 130.9 in Circular A-11 uses the words “ordering agency \ ordering
account” and “performing agency \ performing accounts” to describe the parties involved in
interagency agreements. This guidance follows A-11 by also using the words ordering and
performing.

OMB will issue a bulletin that provides automatic apportionment authority for ordering TAFSs.
The bulletin will provide agencies with flexibility to incur new obligations within the parameters
of their existing apportionments. The purpose of these Category B projects is to provide a
mechanism for the ordering TAFS to explicitly report the obligations it uses for interagency
work on SF 133 reports. In addition, ordering TAFSs must also use the stub “Recovery Act
Interagency Agreement” on their SF 133 reports. The purpose of this requirement is to acquire
sufficient information to facilitate reconciliation between ordering agency obligations and
performing agency obligations. For example, the Revovery.gov site will check that obligations
from performing agencies do not exceed obligations from ordering agencies.

4.10 What special treatment is required on apportionment requests when a TAFS uses a
non-expenditure transfer to shift funds to a different TAFS?

There are no additional requirements for TAFSs that use non-expenditure transfers to shift
Recovery Act funds to other TAFSs. The reason is that the Treasury Department Financial
Management Service (FMS) processes all requests for non-expenditure transfers using its NET
system, and provides this information to OMB on a weekly basis. OMB will forward the

27
information to Recovery.gov. OMB also publishes reports on the Budget Community that show
non-expenditure transfers; the URL is: https://max.omb.gov/community/x/pwCwBQ.

4.11 What are the reporting requirements for performing TAFSs when the ordering TAFS
uses recovery funding?

To the degree practical, agencies should flag the use of Recovery Act funds in making new inter-
agency agreements. OMB will also issue a request that asks agencies to identify the ordering
TAFSs they anticipate will use inter-agency agreements, and post this report on the Budget
Community web site.

Performing agencies must take necessary steps to provide detailed information on their
obligations and disbursements to Recovery.gov. To help establish a framework to facilitate
accurate reporting from performing agencies to Recovery.gov, OMB will issue a bulletin that
provides automatic apportionment authority for performing TAFSs. The bulletin will provide
performing agencies with flexibility to incur new obligations within the parameters of their
existing apportionments. However, performing agencies will need to use Category B projects to
highlight obligations generated from Recovery Act funds. The stubs for these Category B
projects used in budget execution reports must start with the phrase “Recovery Act”. The
requirements in this paragraph are not needed for budget execution, per se, but are attempting to
leverage the budget execution framework to respond to the needs of Recovery.gov.

Performing agencies in their financial system and budget execution reports will separately show
obligations incurred against reimbursable income from ordering TAFSs that hired it to perform
work using Recovery Act funds. Performing agencies will also submit detailed spending reports
to the Recovery.gov web site showing, among other things, how much funding each vendor
received. Section 2.5 provides guidance for handling inter-agency agreements, and data
submissions by performing agencies to Recovery.gov.

Performing agencies will report obligations and disbursements in their budget execution reports
and to Recovery.gov. They may report back to ordering agencies as part of normal inter-agency
processes. However, ordering agencies will not provide this information back to Recovery.gov.

GSA and other performing agencies should begin to plan how to handle these requirements and
modify inter-agency agreements or processing Interagency Payment and Collection (IPAC)
transactions to help them fulfill these requirements.

4.12 What are the reporting requirements for TAFSs that receive non-expenditure
transfers of Recovery Act funds?

TAFSs receiving non-expenditure transfers of Recovery Act funds have the same reporting
requirements as performing TAFS in interagency agreements. See section 4.12 for additional
information.

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4.13 Will agencies that receive Recovery Act funds need to take any special actions to
report spending in FACTS II \ SF 133 budget execution reports?

No. Agencies will submit FACTS II data the same way they do now. If a TAFS receives
Recovery Act and non-Recovery Act funds, its FACTS II reporting must use Category B projects
to show obligations incurred from Recovery Act funds. The stubs for the Category B projects
must start with the words “Recovery Act”.

4.14 How will agency budget execution reporting fit with agency reporting to the
Recovery.gov site?

In general, agencies will report much more detailed information on obligations and expenditures
to the Recovery.gov site than they do in normal budget execution reporting. While agencies may
report Recovery Act obligations in a given TAFS using a single Category B project, they may
submit many lines to Recovery.gov that, in total, agree with the Category B project obligations.
For example, a single Category B project may show $100 million in grants to states, but the
underlying detail agencies report to Recovery.gov will show separately the 20 states that receive
the funds.

Section 2.5 describes the Recovery.gov reporting requirements.

4.15 Some provisions of the Recovery Act provide supplemental budget authority for
existing programs, projects, and activities. Will agencies have new or different
reporting requirements for these existing programs?

It is unclear at this time what additional reporting requirements will be levied on non-recovery
funds used for recovery programs. Agencies should use Recovery Act budget execution page in
the budget community web site to describe and share ideas on how to handle such potential
additional requirements.

4.16 Are agencies required to obligate recovery funds prior to obligating non-recovery
funds?

No. This question only applies in cases when Congress appropriates Recovery Act funds to
programs where Congress has previously appropriated funds. In those cases, agencies should
determine the most appropriate sequence of obligation to maximize program efficiency. In
making this determination, agencies need to explore ways to effectively expedite recovery
expenditures in a manner that does not compromise program objectives or increase the risk of
unintended consequences (e.g., accounting and/or payment errors, waste, fraud, etc.)

29
4.17 Do Inspectors’ General need to follow special rules in reporting their own Recovery
Act spending?

Yes. Inspectors’ General (IGs) will be required to separately report obligations associated with
oversight of Recovery Act programs. The Recovery Act includes provisions that provide
supplemental funding to some IGs to carry out additional oversight of activities funded by the
Act. IGs will report these funds separately in their budget execution reports and submissions to
Recovery.gov. IGs will also report other funds not provided through the Recovery Act that they
otherwise use to monitor Recovery Act programs in their agencies. The purpose of these
requirements is to provide the Administration with a basis to inform Congress and the public
how much money IGs are obligating on oversight of Recovery Act funded activities.

OMB will issue a bulletin that provides automatic apportionment authority for IGs to carry out
Recovery Act oversight activities. The bulletin will provide IGs with the flexibility to incur new
obligations for Recovery Act oversight activities within the parameters of their existing
apportionments.

4.18 Will OMB issue a Budget Data Request (BDR) to collect information relating to the
Recovery Act?

Yes. In the near future, OMB will issue a BDR asking agencies to, among other things:

• Identify existing programs and TAFSs that the Recovery Act will add funds to.
• Identify Recovery Act TAFSs that will likely use inter-agency agreements.
• Identify Recovery Act TAFSs that will likely bring in offsetting collections.
• Identify sub-functions for each Recovery Act TAFS.

4.19 Will FMS use expedited processes to establish TAFSs and process Recovery Act
warrants?
Yes. FMS working with OMB will provide agencies with a list of the majority of new TAFSs on
Wednesday, February 18th. Each TAFS will include a new 4-digit account number. OMB will
post the list of TAFSs on the Budget Execution and Recovery Funding page of the Budget
Community; the URL is https://max.omb.gov/community/x/-4BeDw.

Agencies should use these TAFSs in their financial systems. OMB will make the new TAFSs
available in the apportionment system so that agencies can use the new TAFS to send
apportionment requests to OMB.

FMS will do its best to develop a list that is complete. However, agencies finding any omissions
will need to work with their normal contacts at FMS to create new TAFSs.

FMS is identifying the TAFSs that it will create in its central systems – prior to putting the
TAFSs into its systems. FMS is taking this action to help agencies expedite the processes they
use to create TAFSs in their systems, and that they use to submit their apportionment requests to

30
OMB. Over the next couple of weeks, FMS will put the TAFSs in its systems as well as process
warrants.

4.20 Can agencies start preparing apportionment requests for newly established TAFSs
prior to FMS creating the TAFSs.

Yes. Agencies should start preparing apportionment requests in anticipation of FMS quickly
establishing the new TAFSs.

4.21 Can agencies submit apportionment requests for newly established TAFSs prior to
knowing the TAFS identifier that FMS will create?

No. Agencies must wait until Wednesday, February 18th when FMS produces a list of TAFSs it
will create in its systems. OMB will post the list of TAFSs on the Budget Execution and
Recovery Funding page of the Budget Community; the URL is
https://max.omb.gov/community/x/-4BeDw.

4.22 Can agencies process payment requests prior to FMS creating TAFSs?

No. Most if not all payment systems and IPAC require agencies to use valid TAFSs.

4.23 Do agencies need to follow different processes in handling recoveries, upward

adjustments, or downward adjustments of Recovery Act funds?

No. TAFSs funded exclusively from the Recovery Act do not need to follow different processes
in handling of recoveries, upward adjustments, or downward adjustments. After processing
requests and identifying the TAFSs that will have both Recovery Act and non-Recovery Act
funds, OMB may issue additional guidance on this topic. The expectation is that very few
TAFSs will include Recovery Act and non-Recovery Act funds.

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Section 5 – Grants and Cooperative Agreements

5.1 Are there actions, beyond standard practice, that agencies must take while planning
for competitive and formula grant awards under Recovery Act?

Yes.

(1) Determining Grant Objectives and Evaluation Criteria for Award

Agencies should structure grants to result in meaningful and measurable outcomes that are
consistent with agency plans and that promote the goals of the Recovery Act. The evaluation
criteria for award should include those that bear on the measurement and likelihood of achieving
these outcomes, such as, jobs creation and preservation.

(2) Competition

Although the Recovery Act calls on agencies to commence expenditures and activities as quickly
as possible consistent with prudent management, this statement, by itself, does not constitute a
sufficient justification to support award of a federal grant on a non-competitive basis. Agencies
are expected to follow the same laws, principles, procedures, and practices in awarding
discretionary grants with Recovery Act funds as they do with other funds. Agencies should
review their internal policies with a goal towards promoting competition to the maximum extent
practicable. In conducting this review, agencies may want to consider the appropriateness of
limited competitions among existing high-performing projects versus full and open competitions
and formula allocations.

(3) Existing Grants

Ultimately, agencies must determine what award method(s) will allow recipients to commence
expenditures and activities as quickly as possible consistent with prudent management and
statutory requirements. Agencies may consider obligating funds provided under the Recovery
Act on an existing grant, including, but not limited to, a continuation or renewal grant. Because
Recovery Act funds must be tracked and accounted for separately, supplements to existing
agreements are not recommended as there is a greater risk that the grant recipient will be unable
to track and report Recovery Act funds separately. Also, agreements must spell out the
assignment of agency roles and responsibilities to fulfill the unique requirements of the Recovery
Act. These include, but are not limited to, report development and submission, accurate and
timely data reporting, and special posting requirements to agency web sites and Recovery.gov.

(4) Timeliness of Awards

Agencies need to assess existing processes for awarding formula allocations and announcing,
evaluating and awarding discretionary grant opportunities to comport with the objective to make
awards timely.

32
To enable timeliness of awards, agencies should engage in aggressive outreach to potential
applicants to begin application planning activities, including the process for Central Contractor
Registration (CCR) and obtaining a Dun and Bradstreet Universal Numbering System (DUNS)
number. Outreach can also include efforts to update and validate existing CCR and DUNS
registration data.

(5) Other Planning Activities

The following activities should also be part of the planning process for Recovery Act grants:

• Request an expedited “Recovery Act” Catalog of Federal Domestic Assistance (CFDA)

number for new Recovery Act programs or existing programs for which the Recovery Act
provides for compliance requirements that are significantly different for the Recovery Act
funding;
• Provide notification of existing CFDA program descriptions that will be modified during the
next CFDA update cycle to reflect Recovery Act authorities, financial information, etc.;
• Work with managers and staff at all levels of the agency so that they can plan and secure the
resources needed to implement the Recovery Act requirements;
• Coordinate with agencies with similar grant programs to determine if there are ways to
consolidate resources and efforts during the planning, award, and post-award stages of the
grant cycle; and
• Review reporting responsibilities outlined in Section 2 of this Guidance and initiate
necessary planning and implementation.

5.2 Are there actions, beyond standard practice, that agencies must take related to
solicitation and evaluation of competitive grants awarded under Recovery Act?

Yes. Federal agencies must:

• Provide information in funding opportunity announcements and award notifications on

Recovery Act-specific reporting requirements.
• Within twenty (20) days after enactment of the Recovery Act, agencies shall post funding
opportunity announcements (i.e., “synopses’) to Grants.gov. Information about specific
requirements (e.g., use of funds, certification, data reporting, performance measures, etc.)
under the Recovery Act should be in the full funding announcement. The Grants.gov
synopsis shall link to the full announcement on the agency website within thirty (30) days of
enactment. In the interim, the synopsis should link to an agency instruction on when the full
announcement is expected to become available.
• Consider weighting selection criteria to favor applicants for assistance with demonstrated
ability to deliver programmatic result and accountability objectives included in Recovery
Act.

33
5.3 What are the requirements for use of Grants.gov?

• For “find,” agencies are required to post synopses to Grants.gov, consistent with the
requirements in section 5.2 above.
• For “apply,” agencies should generally use the “apply” feature of Grants.gov, but may, in
limited circumstances, link from Grants.gov to an on-line application on the agency website.

Agencies who currently use the “apply” function for Grants.gov must consult with OMB prior to
initiating a separate solution for Recovery Act awards.

5.4 Are Federal agencies expected to initiate additional oversight requirements for grants,
such as mandatory field visits or additional case examinations for error
measurements, to comply with grant rules and regulations?

Yes. Agencies must take steps, beyond standard practice, to initiate additional oversight
mechanisms in order to mitigate the unique implementation risks of the Recovery Act. At a
minimum, agencies should be prepared to evaluate and demonstrate the effectiveness of standard
monitoring and oversight practices.

(1) Performance Management and Accountability

Agencies must adapt current performance evaluation and review processes to include the ability
to report periodically on completion status of the program or activity, and program and economic
outcomes, consistent with Recovery Act requirements.

Agencies in consultation with the Inspectors General, shall establish procedures to validate the
accuracy of information submitted on a statistical basis and/or risk based approach as approved
by OMB.

(2) Internal Controls Assessment

Consistent with normal practices, agencies must use appropriate internal control assessments to
assess the risk of program waste, fraud, and/or abuse. Using the aforementioned risk
assessments, agencies must have defined strategies, developed with input from the Inspector
General for the agency, to prevent or timely detect waste, fraud, or abuse.

Also, consistent with Section 3 of this Guidance, agencies should initiate additional measures, as
appropriate, to address higher risk areas.

5.5 Are agencies expected to comply with existing administrative grants requirements?

Yes. Agencies are expected to follow administrative requirements as directed OMB Circular A-
102, Grants and Cooperative Agreements with States and Local Governments, the agency’s
adoption of the grants management common rule; and OMB Circular A-110, Uniform
Administrative Requirements for Grants and Agreements with Institutions of Higher Learning,
Hospitals, and other Non-profit Organizations. (see 2 CFR part 215)

34
5.6 What audit tools will be used to drive accountability for Federal awards under the
Recovery Act?

• Non-Federal entities (States, local governments, tribes, and non-profit organizations) are
required by the Single Audit Act Amendments of 1996 (Single Audit) and OMB Circular A-
133 to have an annual audit of their Federal awards (e.g., grant programs).2
• Consistent with Section 3 of this Guidance, Federal agencies will perform a risk analysis of
Recovery Act programs and request OMB to designate any high risk programs as Single
Audit major programs, i.e., programs which must be tested in a particular year.3
• In addition to single audits, OIGs will use risk assessment techniques where data is available
to identify high risk programs and non-Federal entities to be targeted for priority audits,
inspections, and investigations with faster turnaround reporting.4
• OIGs will perform audits and inspections of their respective agencies awarding, disbursing,
and monitoring of Recovery Act funds to determine whether safeguards exist to for funds to
be used for their intended purposes.

5.7 What steps will be taken to make Single Audits effective in promoting accountability
of Recovery Act grants.

• OMB will use the OMB Circular A-133 Compliance Supplement to notify auditors of
compliance requirements which should be tested for Recovery Act awards. OMB will issue
interim updates as necessary to keep Recovery Act requirements current.5
• Offices of Inspectors General (OIGs) will reach out to the auditing profession and provide
technical assistance and training as well as perform quality control reviews to ensure single
audits are properly performed and improper payments and other non-compliance is fully
reported. OIGs will perform follow-up reviews of Single Audit quality with emphasis on
Recovery Act funds and report the results on Recovery.gov.6

2
Entities expending less than $500,000 a year are exempt from Single Audit and a few non-Federal entities are
permitted to have biennial audits under a grandfathering clause.
3
Circular A-133 §___.520(c) (2) allows OMB to designate selected Type A programs as major programs. Notice is
required to be given to the recipient and the auditor 180 days prior to the end of the fiscal year to be audited. This
information can be provided in the A-133 Compliance Supplement, OMB’s website, and Recovery.gov.
4
Single audits normally are not received until at least 9 months after the end of the non-Federal entity’s fiscal year.
OIG audits can be completed and reported on more of a real time basis.
5
The OMB Circular A-133 Compliance Supplement is issued annually to guide the auditor on what compliance
requirements should be tested under Single Audit. OMB will use issue interim updates as necessary to ensure
auditors have adequate guidance on testing Recovery Act funds. Notice will be provided in the April 2009
Compliance Supplement of the interim update process, including where the update will be available.
6
It is anticipated that this review will be performed for fiscal years ending between June 30, 2010 and 2011 which
will cover the majority of the Recovery Act awards.

35
5.8 How will transparency be provided for the results of Single Audits?

• For fiscal years ending September 30, 2009 and later, all Single Audit reports filed with the
Federal Audit Clearinghouse (FAC) will be made publicly available on the internet. A link
will be provided from Recovery.gov.7
• Federal agencies will review Single Audits of Recovery Act funding and provide a synopsis
of audit findings relating to obligations and expenditures of Recovery Act funding.

5.9 Are there terms and conditions, beyond standard practice, that must be included in
competitive and formula grant agreements under Recovery Act?

Agencies must:

• Use the agency’s standard award terms and conditions on award notices, where applicable,
unless they conflict with the requirements of the Recovery Act.
• Agencies must ensure receipt of funds is made contingent on recipients meeting the reporting
requirements in Section 1512 of the Act.8
• Ensure that there is an award term or condition requiring first tier subawardees to begin
planning activities, including obtaining a DUNS number (or updating the existing DUNS
record), and registering with the Central Contractor Registration (CCR)9. Prime recipients
and Federal agencies must establish mechanisms to meet Recovery Act data collection
requirements. Agencies should work with prime recipients to ensure that DUNS and CCR
requirements for first tier subawardees are met no later than the first time Recovery Act data
requirements are due.

7
The Single Audit Act (31 U.S.C. § 7502(h)) and OMB Circular A-133 §___.320(a) and (d) require non-Federal
entities to file Single Audit reports with the Federal Audit Clearinghouse (FAC). Entities are also required to make
the reports available for public inspection. So in effect, Single Audit reports are public reports. The law does not
require (or prohibit) the FAC from making the reports publicly available. Public access to these reports is a logical
outgrowth to promote transparency since the FAC is a central repository of all reports and beginning in 2008 reports
are filed in an electronic format. A current concern with the FAC making the reports publicly available on-line is a
report may inadvertently include personally identifiable information (PII). While the reports are currently subject to
the Freedom of Information Act, the FAC sends all FOI requests to the Federal Cognizant agency who is responsible
to review, redact as necessary, and send to the requestor. Currently the FAC has an on-line system for Federal
agencies to access Single Audit reports. There is no current plan as to how the FAC would respond to a FOI request
for the whole data base of reports and ensure PII is not disclosed. The OMB can direct the FAC to take proactive
steps to ensure Single Audit reports do not include PII. FAC steps can include: (1) notifying non-Federal entities,
auditors, and Federal agencies that beginning with reports for fiscal years ending 9/30/09 the FAC will make the
reports publicly available and that they should take steps to ensure the reports do not include PII; (2) include
appropriate notices on the FAC website that reports will be made publicly available and therefore non-Federal
entities and their auditors are responsible to ensure the reports do not include PII; and (3) use computer assisted
techniques to screen reports for PII.
8
OMB will work with the relevant personnel from the Federal community to define a standard term and condition
for all awards related to section 1512 reporting requirements that can be implemented in the short-term. OMB will
also work with agencies to develop a standard term and condition that aligns to additional accountability
requirements (e.g., prevention of misuse of funds).
9
A final decision on the extent to which subawardees will be required to register in CCR will be included in the
final guidance.

36
• In the case where the Recovery Act requirement conflicts with an agency’s standard award
term or condition, the agency’s award term or condition should be modified, as necessary, to
ensure compliance with the Recovery Act requirement. A modification may not be necessary
if the award term and condition is sufficiently rigorous to meet Recovery Act requirements.
• Make clear that that any funding provided through the Recovery Act that is supplemental to
an existing grant is one-time funding.
• Include the requirement that each grantee or sub-grantee awarded funds made available under
the Recovery Act shall promptly refer to an appropriate inspector general any credible
evidence that a principal, employee, agent, contractor, sub-grantee, subcontractor, or other
person has submitted a false claim under the False Claims Act or has committed a criminal or
civil violation of laws pertaining to fraud, conflict of interest, bribery, gratuity, or similar
misconduct involving those funds.

37
Section 6 – Contracts

6.1 Are there actions, beyond standard practice, that agencies must take while planning
for contract awards under the Recovery Act?

The critical importance of the Recovery Act, and the funds it will make available to stimulate the
American economy, require heightened management attention on acquisition planning in order
to:

• Mitigate schedule, cost, and performance risk;

• Define contract requirements that deliver meaningful and measurable outcomes consistent
with agency plans and the goals of Recovery Act;
• Obtain maximum practicable competition;
• Maximize opportunities for small businesses to compete for agency contracts and to
participate as subcontractors;
• Use supplies and services provided by nonprofit agencies employing people who are blind or
severely disabled as provided in FAR Subpart 8.7;
• Expeditiously award contracts using available streamlining flexibilities;
• Apply sufficient and adequately trained workforce to responsibly plan, evaluate, award, and
monitor contracts (see Section 6.6 below for further workforce guidance);
• Ensure an adequate number of qualified government personnel are available to perform
inherently governmental functions during the acquisition life-cycle; and
• Provide appropriate agency oversight at critical decision points.

Key considerations during the acquisition planning process include the following:

(1) Contract Type Selection

FAR Part 16 addresses contract types. The objective of contract type selection and negotiation is
to ensure reasonable contractor risk and provide the contractor with the greatest incentive for
efficient and economical performance. Agencies should emphasize the importance of selecting a
contract type that supports requirements for meaningful and measurable outcomes consistent
with agency plans for, and the goals of, the Recovery Act. Fixed-price contracts (FAR Subpart
16.2) provide maximum incentive for the contractor to control costs and perform effectively and
impose a minimum burden upon the contracting parties. These contracts expose the government
to the least risk. Fixed-price contracts can also accommodate market fluctuations or other
contingencies, when appropriate, using economic price adjustments. Using other than a fixed-
price contract may be appropriate but requires agencies to pay special attention to ensuring that
sufficient qualified acquisition personnel are available to perform contract administration to
mitigate the government’s risk. When riskier contract types are proposed, agencies should
provide appropriate oversight to ensure that all alternatives have been considered and that
qualified staff is available for monitoring performance to mitigate risks. See requirements for
posting summary information on contracts and orders that are not both fixed-price and did not
use competitive procedures in (2) below.

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(2) Competition

Although the law calls on agencies to commence expenditures and activities as quickly as
possible consistent with prudent management, this statement, by itself, does not constitute a
sufficient justification to support award of a federal contract on a non-competitive basis.
Agencies are expected to follow the same laws, principles, procedures, and practices in awarding
non-competitive contracts with Recovery Act funds as they do with other funds. Competition is
the cornerstone of our acquisition system. The benefits of competition are well established.
Competition saves money for the taxpayer, improves contractor performance, curbs fraud, and
promotes accountability for results. Agencies should review their internal procurement review
practices to ensure they promote competition to the maximum extent practicable. For instance,
agencies might lower the dollar thresholds at which higher level review is required when a non-
competitive acquisition strategy is contemplated.

To the maximum extent practicable, contracts using Recovery Act funds shall be awarded as
fixed-price contracts (See FAR Subpart 16.2) using competitive procedures. These procedures
include those identified under FAR Subparts 6.1, 6.2, and 16.505(b)(1) and Subsections 8.405-1
and 8.405-2. Existing fixed-price contracts that were competitively awarded may be used to
obligate funds expeditiously.

A summary of any contract or order (or modification to an existing contract or order), including
a description of the required products and services, using such funds shall be posted in a special
section of the web site Recovery.gov unless the contract or order is both fixed-price and
competitively awarded (see Section 6.2(5) below).

(3) Determining Acquisition Objectives and Evaluation Criteria for Award

Agencies should structure acquisitions to result in meaningful and measurable outcomes that are
consistent with agency plans and that promote the goals of the Recovery Act. The evaluation
criteria for award should include those that bear on the measurement and likelihood of achieving
these outcomes.

(4) Existing Contracts

If agencies obligate funds provided under the Recovery Act on an existing order or contract,
including but not limited to a Governmentwide Acquisition Contract (GWAC), multi-agency
contract, General Services Administration (GSA) Federal Supply Schedule contract, or agency
indefinite-delivery/indefinite-quantity (ID/IQ) contract, they must be reported as “Recovery”
actions per Section 6.2(3) and comply with Sections 6.2(4) and (5) below.

39
(5) Interagency Agreements

When using assisted acquisitions, Interagency Agreements must spell out the assignment of
agency roles and responsibilities to fulfill the unique requirements of the Recovery Act. These
include, but are not limited to, report development and submission, accurate and timely data
reporting, and special posting requirements to agency web sites and Recovery.gov.

(6) Small Business Participation

Small businesses play a critical role in stimulating economic growth and creating jobs. They are
the engine of our economy, and provide creativity, innovation and technical expertise to support
our agencies. Agencies must provide maximum practicable opportunities for small businesses to
compete for agency contracts and to participate as subcontractors in contracts awarded by
agencies. Agencies may take advantage of any authorized small business contracting program.
If, in making an award to a small business, a non-competitive procedure is used, such as a non-
competitive set-aside under section 8(a) of the Small Business Act, then a summary of any such
contract, including a description of the supplies and services, shall be posted in a special section
of Recovery.gov (see Section 6.2(5).

(7) Javits-Wagner-O’Day Act (41 U.S.C. 46-48c) - AbilityOne

To maximize participation of Americans who are blind or severely disabled in our economic
recovery, agencies must continue to purchase required goods and services on the Procurement
List maintained by the Committee for Purchase From People Who Are Blind or Severely
Disabled, which are produced or provided by qualified nonprofit agencies employing such
individuals. Agencies are encouraged to pursue additional opportunities to award contracts to
AbilityOne sources as authorized by the Javits-Wagner-O’Day Act. See FAR Subpart 8.7 and
www.abilityone.gov.

(8) Environment, Energy and Water Efficiency, Renewable Energy Technologies, Occupational
Safety, and Drug-Free Workplace

Agencies must continue to comply with the requirements of FAR Part 23 when acquiring
supplies and services using Recovery Act funds.

(9) Contract Financing and Structuring Contract Deliverables

Agencies should give special attention to structuring contract deliverables to promote the
economic stimulus goals (including expenditure timeframes) of the Recovery Act.

Contract financing is not a normal practice in commercial item fixed-price contracting.

However, tight credit markets may make it difficult for some contractors to secure the cash flow
they need to fund their operations. Increased management and oversight must be provided if
government financing is provided to ensure accountability for these taxpayer funds.

40
Alternatives to contract financing include structuring contract line items to allow invoicing and
payments based upon interim or partial deliverables, milestones, percent-of-completion, etc.
Ensuring consideration of contractor cash flow during acquisition planning will mitigate
schedule and performance risks to the government and reduce costs to the contractor associated
with financing in a tight credit market.

(10) Tribal Self-Determination Contracts

See Chapter 2 regarding tribal self-determination contracts.

6.2 Are there actions, beyond standard practice, that agencies must take related to
solicitation of offers and award of contracts under the Recovery Act?

Yes. While the FAR generally provides the necessary policy and procedure for solicitation of
offers and award of contracts, the Recovery Act imposes unique transparency requirements that
change the pre-solicitation and award notice process, beyond standard practice, as described in
(1) – (5) below:

(1) Unique Requirements for Posting of Presolicitation Notices

Presolicitation notices must be posted on FedBizOpps (FBO) in accordance with FAR Part 5,
including applicable dollar thresholds. Under the Recovery Act, presolicitation notices are
required for any order, meeting the FAR Part 5 dollar thresholds, under a task or delivery order
contract, including GWACs, multi-agency contracts, GSA Federal Supply Schedule contracts.
These notices will be posted in FBO for information purposes only (i.e., the requirements of
FAR Subpart 5.203 do not apply). Contracting officers should continue to also use their usual
solicitation practice (e.g., e-Buy).

To facilitate transparency and ensure consistency in tracking notices for Recovery Act funds,
agencies must use the following special formatting requirements:

• All presolicitation notices must include the word “Recovery” as the first word in the Title
field in FBO preceding the actual title.

• Presolicitation notices for delivery and task orders must also include the following statement
in the Description field preceding the actual description:

“THIS NOTICE IS PROVIDED FOR INFORMATION PURPOSES ONLY. THIS

OPPORTUNITY IS AVAILABLE ONLY TO CONTRACTORS UNDER [contracting
officer insert program name. For example: GSA Schedule 03FAC, COMMITS, Navy’s
SEAPORT-E.]

(2) Unique Requirements for Announcing Contract Awards

Contract award notices must also be posted at FBO in accordance with FAR Part 5, including all
task and delivery orders as described in (1) above. To facilitate transparency and ensure

41
consistency in tracking award announcements for Recovery Act funds, agencies must use the
following special formatting requirement:

• All award announcements must include the word “Recovery” as the first word in the Title
field in FBO preceding the remaining title.

(3) Unique Requirements for Entering Awards into the Federal Procurement Data System
(FPDS)

When entering data in FPDS on any action (including modifications) funded by the Recovery
Act, agencies must enter the Treasury Account Symbol (TAS) in the Description of Requirement
field. The TAS code should be entered with TAS:: preceding the code and ::TAS following the
code. The code itself should have spaces between the segments, i.e., Agency code (2 characters)
would be entered followed by a space then the Account code (4 characters) followed by a space
and then the Subaccount code (3 characters) which is optional and would only be included by
those agencies utilizing this segment of the code. The entry would appear as follows:

TAS::XX XXXX XXX::TAS

Agencies should coordinate with their budget\finance offices to identify the applicable TAS
codes.

Standard data validation practices currently required by the Office of Federal Procurement Policy
(OFPP) assure the accuracy of contracting data, including data on contracts awarded under the
Recovery Act.

(4) Unique Requirements for Contracts, Orders, and Modifications Exceeding $500,000.

For each government contract or order (or modification to an existing contract or order) over
$500,000, agencies shall provide a summary of the contract or order (or modification to an
existing contract or order), including a description of the required products and services, which
will be made available publicly and linked to Recovery.gov. Subsequent guidance will provide
additional details.

(5) Unique Requirements for Actions that are not Fixed-Price or Competitive

A summary of any contract or order (or modification to an existing contract or order), including
a description of the required products and services, using such funds shall be posted in a special
section of the web site Recovery.gov unless the contract or order is both fixed-price and
competitively awarded. (See table below).

42
 Posting of Notice/Summary on Special Section

Description of Contract Action Posting on Special Section of

Recovery.Gov
(1) A contract is competitively awarded and Not Required
is fixed price
(2) A contract is awarded that is not fixed- Required
price
(3) A contract is awarded without competition Required
(4) An order is issued under a new or existing Required if order is made under a
single award IDIQ contract contract described in (2) or (3)
(5) An order is issued under a new or existing Required if one or both of the following
multiple award IDIQ contract conditions exist:
i. the order is not fixed-price
ii. the order is awarded pursuant to an
exception to the competition
requirements applicable to the
underlying vehicle (e.g., award is
made pursuant to an exception to
the fair opportunity process)

(6) A modification is issued Required if modification is made:

i. to a contract described in (2) or
(3)
above; or
ii. to an order requiring posting as
described in (4) or (5) above

(7) A contract or order is awarded pursuant to Required if one or both of the following
a small business contracting authority conditions exist:
(e.g., SBA’s section 8(a) program) i. the contract or order is not fixed-
price
ii. the contract or order was not
awarded using competition (e.g., a
non-competitive 8(a) award)

Subsequent guidance will provide additional details.

In general, if a question arises about whether to provide public disclosure of information,

agencies should promote transparency to the maximum extent practicable when consistent with
national security interests.

43
Agencies should also give special attention to the following:

(6) Responsibility Determinations

FAR Part 9 addresses contractor qualifications. Agencies should place special emphasis on
responsibility determinations and pre-award surveys. The award of a contract based solely on
lowest evaluated price can produce a false economy, increasing performance, cost, and schedule
risk. FAR Subpart 9.103 states that a prospective contractor must affirmatively demonstrate its
responsibility, including, when necessary, the responsibility of its proposed subcontractors. The
general standards for responsibility include that the prospective contractor have:

• Adequate financial resources to perform the contract or the ability to obtain them;
• The ability to comply with the required or proposed delivery or performance schedule, taking
into consideration all existing commercial and governmental business commitments;
• A satisfactory record of past performance, integrity, and business ethics;
• The necessary organization, experience, accounting and operational controls, and technical
skills, or the ability to obtain them; and
• The necessary production, construction, and technical equipment and facilities, or the ability
to obtain them.

Additionally, the prospective contractor must be otherwise qualified and eligible to receive an
award under applicable laws and regulations. Agencies are reminded that they should review the
Excluded Parties List System (see FAR Subpart 9.404) before determining that a prospective
contractor is responsible. When an acquisition poses unique risks, agencies may also use special
responsibility standards to mitigate the risk. If an Agency cannot obtain sufficient information to
make a determination of responsibility, a pre-award survey should be requested unless the
contract will have a fixed-price at or below the simplified acquisition threshold or will involve
the acquisition of commercial items (see FAR Subsection 9.106-1).

(7) Acquisition Flexibilities

Agencies should use authorized acquisition flexibilities as appropriate to avoid unnecessary

delays in awarding contracts with Recovery Act funds. See Table below. Agencies are
cautioned that the Recovery Act does not independently trigger use of emergency procurement
authorities in FAR Part 18. These authorities are triggered in limited, statutorily identified,
circumstances, such as in support of a contingency operation or to facilitate the defense against
or recovery from nuclear, biological, chemical, or radiological attack against the United States.
See FAR 18.001. Unless one of these circumstances exists, the special emergency authorities in
FAR Part 18 shall not be used.

44
 Generally Available Acquisition Flexibilities
A Quick Reference

Small Dollar Acquisitions under the Simplified Acquisition Threshold (SAT) ($3,000 to $100,000)
9 Various flexibilities are provided in connection with publicizing -- e.g., an oral solicitation
may be efficient for actions up to $30,000 & other actions for which there is an exception to
notice; response time may be less than 30 days provided a response time is reasonable (FAR
5.101, 5.202, 5.203, 13.106-1).

Acquisitions under the test program for commercial items

($100,000 to $5,500,000)
9 Acquisition generally may be treated like a purchase under the SAT, with certain exceptions
(see FAR Part 13.501)

Commercial Item Acquisitions

(over $5,500,000)
9 FAR Part 12 policies & procedures apply, including optional streamlined procedures for
evaluation & solicitation.
9 Wait period after notice & before issuance of solicitation may be reduced (FAR 5.203(a)).
9 Based on circumstances, the contracting officer may allow for fewer than 30 day response
time for receipt of offers (FAR 12.205, 5.203(b)).

Non-commercial item acquisitions

(over $100,000)
9 Some acquisitions of non-commercial items may qualify to use FAR Part 12
(FAR 12.102(f) & (g)).
9 Offerors may be allowed to give oral presentations (FAR 15.102).

(8) Davis-Bacon Act and Service Contract Act.

The Davis-Bacon Act and Service Contract Act apply to contract actions using Recovery Act
funds. Agencies must follow the same laws, principles, procedures, and practices in awarding
contracts with Recovery Act funds as they do with other funds.

6.3 Are there actions, beyond standard practice, that agencies must take related to the
monitoring of contracts under Recovery Act?

Agencies must provide for appropriate oversight of contracts to ensure outcomes that are
consistent with and measurable against agency plans and goals under the Act. It is critical that
agencies evaluate their workforce needs so that they are able to appoint qualified Contracting
Officers, Contracting Officer Technical Representatives (COTRs), and Program Managers with
certification levels appropriate to the complexity of Recovery Act projects. In addition, agencies
should actively monitor contracts to ensure that performance, cost, and schedule goals are being
met, including:

45
• Ensuring that incentive and award fees are effectively administered. (For further guidance,
see the OFPP memorandum entitled Appropriate Use of Incentive Contracts, 12/4/07);
• Implementing quality assurance procedures established for the contract;
• Documenting timely inspection and acceptance of deliverables;
• Promptly using all available tools to identify and remedy deficiencies related to contractor
performance, cost, and schedule (e.g., Quality Assurance Surveillance Plans, cure notices,
show cause letters); and
• Completing timely contractor performance evaluations that accurately reflect the contractor’s
actual performance, supported by appropriate documentation.

6.4 Are there terms and conditions, beyond standard practice, that must be included in
contract agreements under the Recovery Act?

The Recovery Act establishes several special contract requirements. For example, the Recovery
Act requires reporting on first-tier subcontractor awards. A FAR case is in process that will
accommodate this requirement. Other Recovery Act matters under consideration for FAR
coverage or other governmentwide guidance include:
• Special Buy American Act requirements;
• Additional requirements for contractor reporting; and
• Expanded GAO/OIG access to contractor records.

Agencies must ensure receipt of funds is made contingent on recipients meeting the reporting
requirements in Section 1512 of the Act.11

6.5 Are there actions, beyond standard practices, that agencies must take related to
oversight and audit of contracts awarded under Recovery Act?

Agencies already have in place processes and procedures to continuously monitor and improve
the effectiveness of internal control associated with their programs. In light of the
Administration’s commitment to high levels of accountability and transparency, special attention
should be given to maintaining strong internal controls over Recovery Act program funds. High
risk associated with the award and expenditure of Recovery Act program funds, merit increased
oversight by the Agency. In addition, the Recovery Accountability and Transparency Board,
established by the Act, Congress and the Office of Management and Budget will oversee and
monitor implementation of the Recovery Act through periodic reporting on the use and
expenditure of funds. Reporting will be in a variety of areas including:

• Progress against program schedule and performance objectives;

• Qualification and number of acquisition, grants and program management staff
• Use of competition;
• Timeliness of awards; and
• Dollars obligated and expended
11
OMB will work with the relevant personnel from the Federal community to define a standard term and condition
for all awards related to section 1512 reporting requirements that can be implemented in the short-term. OMB will
also work with agencies to develop a standard term and condition that aligns to additional accountability
requirements (e.g., prevention of misuse of funds).

46
Agencies should identify any special reporting requirements required by the Act and take action
to ensure the information will available for timely reporting.

Agencies are reminded that proper documentation must be maintained for each contract award.
FAR Part 4 prescribes policies and procedures related to the proper documentation of contract
files.

6.6 We know we will need more acquisition people to carry out our agency’s
responsibilities under Recovery Act. How do we meet this need?

Once you’ve determined your workforce needs, determine if there are agency resources that can
be reallocated. If there are immediate, temporary needs that cannot be filled from within your
agency, OFPP and the Federal Acquisition Institute can assist in identifying human capital and
other resources. Assistance could be in a variety of forms, such as interagency collaboration,
details, or teaming.

If you identify a need for short-term supplemental acquisition personnel, please consult with
your agency Chief Human Capital Officer (CHCO) when planning how to meet your agency
human capital needs. Also consult with your OMB representative. Below is guidance that might
be helpful in hiring additional temporary or term employees quickly.

- Re-hiring Federal retirees – The GSA Modernization Act (P.L. 109-313) amended the
OFPP Act with provisions relating to reemployment of retired acquisition-related
professionals (defines as those in the GS-1102 and GS-1105 series and other series with
significant acquisition-related duties). The OFPP memorandum of Sept 4, 2007, Plans for
hiring reemployed annuitants to fill acquisition-related positions
http://www.whitehouse.gov/omb/procurement/workforce/090407_reemployed.pdf provides details on how to use
this authority to re-hire retired Federal professionals without impacting their annuity. The
authority includes special provisions for temporary emergency need and provided your
agency has documentation for each annuitant, your agency head can approve multiple people
for hiring at a time. If your agency has not already developed a plan for this authority,
consult with your CHCO on building the plan, obtaining approval, and implementation.

- Direct Hire Authority – The Services Acquisition Reform Act (P.L. 108-136) authorized
direct hire authority for civilian agencies. Once an agency head determines there is a
shortage of acquisition professionals (which includes personnel in the GS-1102, GS-1105,
and other series with significant acquisition-related duties), the agency can announce jobs,
rate applications, hold a large-scale event with agency personnel to conduct interviews and
make offers the same day as interviews. If your agency has not already developed a plan for
this authority, consult with your CHCO on building the plan, obtaining approval, and
implementation.

- Hiring Veterans – based on the Veterans’ Recruitment Appointment (VRA) Authority (P.L.
107-288) and 5 CFR 307, agencies may also identify and rapidly hire qualified professionals
(through the GS-11 or equivalent grade). This is a non-competitive appointment authority
that your CHCO can help you use.

47
 - Hiring Persons with Disabilities - using Schedule A appointments as outlined in 5 CFR 213,
agencies may identify and rapidly hire qualified professionals with disabilities. This is a
non-competitive appointment authority that your CHCO can help you use.

For more comprehensive guidance on hiring flexibilities, please consult with your CHCO who
can guide you through OPM’s Human Resources Flexibilities and Authorities in the Federal
Government handbook at: http://www.opm.gov/omsoe/hr-
flex/HumanResourcesFlexibilities_and_AuthoritiesHandbook.pdf

If multiple agencies are interested in hiring a substantial number of professionals under any of
these authorities, OFPP and the CAOC may consider facilitating a large-scale recruitment
initiative to identify interested candidates. OFPP will reach out to agencies shortly to determine
the interest and need for a coordinated activity.

48
Section 7 – Loans and Loan Guarantees

7.1 What actions, beyond standard practice, must agencies take while planning for
awarding loans and loan guarantees under Recovery Act?

Consistent with standard agency practices, Federal credit policies under OMB Circular A-129,
and the Administration’s commitment to accountability and transparency, planning for loan and
loan guarantee awards under the Recovery Act is critical to:

• Mitigate performance and credit risk;

• Define program requirements that deliver meaningful and measurable outcomes consistent
with agency plans and the goals of Recovery Act;
• Obtain maximum practicable competition consistent with program authorizing legislation;
• Expeditiously award financial assistance using available streamlining flexibilities;
• Apply sufficient and adequately trained workforce to responsibly evaluate, award and
monitor loans and loan guarantees;
• Ensure adequate government personnel is available to perform inherently governmental
functions during the loan award and credit management cycles;
• Provide appropriate agency oversight at critical decision points; and
• Make information available to the public, consistent with the Recovery Act.

In addition to the transparency provisions, consistent with statutory and regulatory requirements,
standard agency practices, and Federal credit policies under OMB Circular A-129, key
considerations during the planning process include the following areas:

(1) Compliance with Statutory Provisions

Agencies should evaluate specific program provisions, and incorporate necessary information
collection and other requirements into opportunity notices, applications, award agreements, and
processes to ensure adequate oversight and management, and compliance with any unique
provisions under the Recovery Act.

(2) Competition

Although the law calls on agencies to commence expenditures and activities as quickly as
possible consistent with prudent management, this statement, by itself, does not constitute a
sufficient justification to support award of federal assistance on a non-competitive basis.
Program authorizing language, (with possible clarification provided by the Recovery Act),
agency regulations, and other documentation specify the competition requirements for awards.
Agencies shall enforce competition requirements consistent with the provisions of all applicable
statutory, regulatory, and other requirements.

49
(3) Financial Assistance Objectives and Evaluation Criteria

Agencies should develop specific performance goals and target measures prior to developing a
funding opportunity notice. Agencies shall obtain sufficient information from applicants, to
evaluate the degree to which the loan or loan guarantee would meet the desired program
outcomes.

Where competition is permitted by program authorization, agencies shall publish in the

opportunity notice, criteria for determining the best use of funds for each opportunity notice and
formalize the procedures to evaluate applications.

(4) Performance Measure, Accountability, and Reporting

Agencies should also establish systems or other processes using existing systems to capture,
validate, report, and evaluate information regarding the loan and loan guarantee award, from the
borrowers, the lenders or other relevant sources, to periodically assess and report performance
against expected results consistent with Recovery Act reporting requirements. Such systems or
processes include development of a standard format for award recipients to report summary
information on the award and use of funds, and making such information available on a public
website. Reviews of spending shall be designed to proactively identify and minimize risks.

7.2 What are the requirements related to loan and loan guarantee announcements under
the Recovery Act?

Agencies shall use the GovLoans.gov web portal in conjunction with agency websites and
existing agency marketing and outreach initiatives to assure public awareness of loan availability
under the Recovery Act.

(1) Requirements for Opportunity Notices

Current GovLoans.gov opportunity announcements include sections for eligibility determination,

terms and conditions, application process, and contact information. Opportunity notices posted
on GovLoans.gov must include the following sections:

• Performance Measurement;
• Data Collection; and
• Loan and Loan Guarantee Award Selection and Evaluation Criteria

(2) Requirements for Loan and Loan Guarantee Award Notices

The loan and loan guarantee award notice shall address the following topics:

• Statement of Expected Benefit/Outcome;

• Face Value of Loan or Loan Guarantee;
• Subsidy cost to Government of the Loan or Loan Guarantee;

50
• Congressional District;
• Key Performance Measures;
• Competitive Award Process Determination; and
• Justification of Non-Competitive Selection Process, if appropriate.

7.3 Are Federal agencies expected to initiate additional requirements related to the
implementation and monitoring of loans and loan guarantees under Recovery Act?

Yes. Agencies must take steps, beyond standard practice, to mitigate the unique implementation
risks of the Recovery Act. At a minimum, agencies should be prepared to evaluate and
demonstrate the effectiveness of standard monitoring and oversight practices.

(1) Performance Management and Accountability

Agencies must adapt current performance evaluation and review processes to include the ability
to report periodically on completion status of the program or activity, and program and economic
outcomes, consistent with Recovery Act requirements.

Agencies in consultation with the Inspectors General, shall establish procedures to validate the
accuracy of information submitted on a statistical basis and/or risk based approach as approved
by the Office of Management and Budget (OMB).

(2) Internal Controls Assessment

Consistent with normal practices, agencies must use appropriate internal control assessments to
assess the risk of program waste, fraud, and/or abuse. Using the aforementioned risk
assessments, agencies must have defined strategies to prevent or timely detect waste, fraud, or
abuse, developed with input from the Inspector General for the agency.

Also, consistent with Section 3 of this Guidance, agencies should initiate additional measures, as
appropriate, to address higher risk areas.

7.4 Are there terms and conditions, beyond standard practice, that must be included in
loan and loan guarantee agreements under Recovery Act?

Agencies must ensure receipt of funds is made contingent on recipients meeting the reporting
requirements in Section 1512 of the Act.12

Include the requirement that each grantee or sub-grantee awarded funds made available under the
Recovery Act shall promptly refer to an appropriate inspector general any credible evidence that
a principal, employee, agent, contractor, sub-grantee, subcontractor, or other person has
submitted a false claim under the False Claims Act or has committed a criminal or civil violation

12
OMB will work with the relevant personnel from the Federal community to define a standard term and condition
for all awards related to section 1512 reporting requirements that can be implemented in the short-term. OMB will
also work with agencies to develop a standard term and condition that aligns to additional accountability
requirements (e.g., prevention of misuse of funds).

51
of laws pertaining to fraud, conflict of interest, bribery, gratuity, or similar misconduct involving
those funds.

7.5 Are there actions, beyond standard practices, that agencies must take related to
oversight and audit of loan and loan guarantees awarded under Recovery Act?

While Recovery Act does not mandate specific requirements, the law does envision that
additional steps, beyond standard practice, will be taken to mitigate the unique implementation
risks. At a minimum, agencies should be prepared to evaluate and demonstrate the effectiveness
of standard monitoring and oversight practices. Also, consistent with Section 3 of this Guidance,
agencies should initiate additional measures, as appropriate, to address higher risk areas.

7.6 What audit tools will be used to ensure accountability for Federal loans and loan
guarantees under the Recovery Act?

• Non-Federal entities (States, local governments, tribes, and non-profit organizations) are
required by the Single Audit Act Amendments of 1996 (Single Audit) and OMB Circular A-
133 to have an annual audit of their Federal awards (e.g., loan programs). 13
• Consistent with Section 3 of this Guidance, Federal agencies will perform a risk analysis of
Recovery Act programs and request OMB to designate any high risk programs as Single
Audit major programs, i.e., programs which must be tested in a particular year.14
• In addition to single audits, OIGs will use risk assessment techniques where data is available
to identify high risk programs and non-Federal entities to be targeted for priority audits,
inspections, and investigations with faster turnaround reporting.15
• OIGs will perform audits and inspections of their respective agencies awarding, disbursing,
and monitoring of Recovery Act funds to determine whether safeguards exist to ensure the
funds are used for their intended purposes.

7.7 How will transparency be provided for the results of Single Audits?

• For fiscal years ending September 30, 2009 and later, all Single Audit reports filed with the
Federal Audit Clearinghouse (FAC) will be made publicly available on the internet. A link
will be provided from Recovery.gov.16
13
Technical Single Audit exceptions applicable to a very small percentage of funding are entities expending less
than $500,000 a year are exempt from Single Audit and a few non-Federal entities are permitted to have biennial
audits under a grandfathering clause.
14
A-133 §___.520(c) (2) allows OMB to designate selected Type A programs as major programs. Notice is
required to be given to the recipient and the auditor 180 days prior to the end of the fiscal year to be audited. This
information can be provided in the A-133 Compliance Supplement, OMB’s website, and Recovery.gov.
15
Single audits normally are not received until at least 9 months after the end of the non-Federal entity’s fiscal year.
OIG audits can be completed and reported on more of a real time basis.
16
§ 7502(h) of the SAA and OMB Circular A-133 §___.320(a) and (d) require non-Federal entities to file Single
Audit reports with the Federal Audit Clearinghouse (FAC). Entities are also required to make the reports available
for public inspection. So in effect, Single Audit reports are pubic reports. The law does not require (or prohibit) the
FAC from making the reports publicly available. Public access to these reports is a logical outgrowth to promote
transparency since the FAC is a central repository of all reports and beginning in 2008 reports are filed in an
electronic format. A current concern with the FAC making the reports publicly available on-line is a report may
inadvertently include personally identifiable information (PII). While the reports are currently subject to the

52
• Federal agencies will review Single Audits of Recovery Act funding and provide a synopsis
of audit findings and required corrective action taken on Recovery.gov.

Freedom of Information Act, the FAC sends all FOI requests to the Federal Cognizant agency who is responsible to
review, redact as necessary, and send to the requestor. Currently the FAC has an on-line system for Federal
agencies to access Single Audit reports. There is no current plan as to how the FAC would respond to a FOI request
for the whole data base of reports and ensure PII is not disclosed. The OMB can direct the FAC to take proactive
steps to ensure Single Audit reports do not include PII. FAC steps can include: (1) notifying non-Federal entities,
auditors, and Federal agencies that beginning with reports for fiscal years ending 9/30/09 the FAC will make the
reports publicly available and that they should take steps to ensure the reports do not include PII; (2) include
appropriate notices on the FAC website that reports will be made publicly available and therefore non-Federal
entities and their auditors are responsible to ensure the reports do not include PII; and (3) use computer assisted
techniques to screen reports for PII.

53
Appendix 1 – Detailed Instructions on Transmitting Materials

This appendix currently includes transmission instructions for the following information flows:
Major Communications (Section 2.2), Formula Block Grant Allocations (Section 2.3), and
Weekly Reports (Section 2.4). Future guidance will include instructions for the submission of
the reports required in sections 2.5 through 2.9.

For each of the near term reporting requirements (major communications, formula block grant
allocations, weekly reports) agencies are required to provide a feed (preferred: Atom 1.0,
acceptable: RSS) of the information so that content can be delivered via subscription. Note that
the required information can be supplied in the feed or the feed can point to a file at the agency
using the convention noted below. If an agency is immediately unable to publish feeds, the
agency should post each near term information flow (major communications, formula block
grant allocations, weekly reports) to a URL directory convention suggested below:
www.agency.gov/recovery/year/month/date/reporttype. It is expected that the information files
will be posted at the following URLs:

• Major Communications: www.HUD.gov/recovery/2009/02/16/comms

• Formula Block Grant Allocation: www.HUD.gov/recovery/2009/02/16/fbga
• Weekly Report: www.HUD.gov/recovery/2009/03/01/weekly

In addition to posting the files either via feed or the URL structure, agencies are also required to
email the files to the following email address: [email protected]. Emails should have a
subject in the following format: Official Agency Abbreviation, Report Type. For example:

• HUD, Major Communications

• HUD, Formula Block Grant Allocation
• HUD, Weekly Report #X

Note that the body of the email should include the appropriate completed template as an
attachment and should include the name, title, and contact information for the submitter.
Templates for these files can be found at https://max.omb.gov/community/x/doC2Dw.

54
Major Communications: Agencies are asked to send major announcements for potential use on
Recovery.gov. The announcements should be written in the normal agency press release format,
and include a short paragraph in the following format:

PRESIDENT OBAMA ANNOUNCES ECONOMIC

ADVISORY BOARD
Washington (February 17, 2009) – President Barack Obama today signed an
executive order establishing the new Economic Recovery Advisory Board.
Modeled on the Foreign Intelligence Advisory Board created by President Dwight
D. Eisenhower the Board will provide an independent voice on economic issues
and will be charged with offering independent advice to the President as he
formulates and implements his plans for economic recovery.

Data elements for the major communications feed should include:

Major Communications Data: 
(Based on Recovery Act Guidance) 
Data Elements  Field Type  Source of  Source of 
Requirement  Record 
Title (Clear Heading)  varchar(45)  OMB Guidance  Agency 
Link to Communications Item  varchar(250)  OMB Guidance  Agency 
Type of Major Communication (Press Release, Video, Press  varchar(45)  OMB Guidance  Agency 
Event, Other)  
Short (no more than 5 sentences) overview of the main  Up to 65535  OMB Guidance  Agency 
communications points  characters 
Date and time of communication  MMDDYYYY  OMB Guidance  Agency 
HH:MM 
Additional citizen friendly tags that can be used on Recovery.gov  varchar(45)  OMB Guidance  Agency 
to help present the news items 

Formula Block Grant Allocation Reports: Agencies are asked to provide Formula Block Grant
Allocation information as soon as it becomes available. Data elements for the formula block
grant allocation feed should include:

Formula Block Grant Allocation Data: 
(Based on Recovery Act Guidance, Recovery Act, and FFATA.) 
Data Elements  Description  Field  Source of  Source 
Type  Requirement  of 
Record 
Recipient Name  The name of the recipient of the award.  varcha OMB Guidance  Agency 
r(45) 
Federal Funding  Amount of federal government's obligation or  int(11)  OMB Guidance  Agency 
Amount  contingent liability, in dollars. A negative number 
represents a decrease in funding. 
Recipient DUNS  Unique nine‐digit number issued by Dun &  char(1 OMB Guidance  Agency 

55
Number  Bradstreet to the agency. Followed by optional  3) 
DUNS Plus 4 which allows an agency to submit 
different bank account data for a single DUNS 
(Assigned by Dun & Bradstreet) 
CFDA Program  The numeric code that indicates the program under  varcha OMB Guidance  Agency 
Number  which this award was funded within the Catalog of  r(7) 
Federal Domestic Assistance (CFDA). Numbers that 
contain AAA, AAB etc. are pseudo‐codes and are not 
in CFDA. 
CFDA Program  The title of the program under which the award was  varcha OMB Guidance  Agency 
Title  funded, taken from the Catalog of Federal Domestic  r(74) 
Assistance (CFDA). 
Recipient  Recipient 's Full address Line 1  char(3 OMB Guidance  Agency 
Address Line 1  5) 
Recipient  Recipient 's Full address Line 2  char(3 OMB Guidance  Agency 
Address Line 2  5) 
Recipient  Recipient 's Full address Line 3  char(3 OMB Guidance  Agency 
Address Line 3  5) 
Recipient City  The five‐digit FIPS city code for the city in the  varcha OMB Guidance  Agency 
Code  address of the recipient of the award.  r(5) 
Recipient City  The city in which the address of the recipient of the  varcha OMB Guidance  Agency 
Name  award is located.  r(21) 
Recipient County  The three‐digit FIPS county code for the county in  char(3)  OMB Guidance  Agency 
Code  which the address for the recipient of the award is 
located. 
Recipient County  The county in which the address for the recipient of  varcha OMB Guidance  Agency 
Name  the award is located.  r(21) 
Recipient State  The two‐digit FIPS state code for the state or  char(2)  OMB Guidance  Agency 
Code  territory in which the address for the recipient of 
the award is located. 
Recipient State  The name of the state or territory in which the  varcha OMB Guidance  Agency 
Name  address for the recipient of the award is located.  r(25) 
Recipient Zip  The Zip code in the address of the recipient of the  varcha OMB Guidance  Agency 
Code  award.  r(9) 
Program  Agency Code part (First 2 characters) of Treasury  varcha OMB Guidance  Agency 
Source/Treasury  Account Symbol (9 characters) assigned by U.S.  r(2) 
Account Symbol:  Department of Treasury 
Agency Code 
Program  Account Code part (3rd to 6th characters) of  varcha OMB Guidance  Agency 
Source/Treasury  Treasury Account Symbol (9 characters) assigned by  r(4) 
Account Symbol:  U.S. Department of Treasury 
Account Code 
Program Source/  Sub‐Account Code part (7th to 9th characters) of  varcha OMB Guidance  Agency 
Treasury Account  Treasury Account Symbol (9 characters) assigned by  r(3) 
Symbol; Sub‐ U.S. Department of Treasury 
Account Code 
(OPTIONAL) 

56
Weekly Update Reports: Starting 3/3/2009, agencies will be required to submit a weekly update
report on a cumulative, year-to-date basis for Recovery.gov. Expenditure data is optional on the
weekly report until April 6th. Other required amounts should be reported as zero if unknown at
the time of reporting. Data elements for the weekly update report feed should include:

Weekly Update Report Data: 
(Based on Recovery Act Guidance) 
Data Elements  Description  Field  Source of  Source 
Type  Requirement  of 
Record 
Week Start Date  The date for the first day in the week covered in  MMDD OMB Guidance  Agency 
the weekly update report.  YYYY 
Program Source/  Agency Code part (First 2 characters) of Treasury  varcha OMB Guidance  Agency 
Treasury Account  Account Symbol (9 characters) assigned by U.S.  r(2) 
Symbol: Agency  Department of Treasury 
Code 
Program  Account Code part (3rd to 6th characters) of  varcha OMB Guidance  Agency 
Source/Treasury  Treasury Account Symbol (9 characters) assigned  r(4) 
Account Symbol:  by U.S. Department of Treasury 
Account Code 
Program  Sub‐Account Code part (7th to 9th characters) of  varcha OMB Guidance  Agency 
Source/Treasury  Treasury Account Symbol (9 characters) assigned  r(3) 
Account Symbol;  by U.S. Department of Treasury 
Sub‐Account Code 
(OPTIONAL) 
Total  Total Allocations ‐ actual dollar amount, rounded  int(12)  OMB Guidance  Agency 
Appropriation  to the nearest whole dollar 
Total Obligations  Total Obligations ‐ actual dollar amount, rounded  int(12)  OMB Guidance  Agency 
to the nearest whole dollar 
Total  Total Expenditures ‐ actual dollar amount, rounded  int(12)  OMB Guidance  Agency 
Expenditures  to the nearest whole dollar 
Major Completed  Short bulleted list of the major actions taken to  Up to  OMB Guidance  Agency 
Actions  date  65535 
charac
ters 
Major Planned  Short bulleted list of the major planned actions  Up to  OMB Guidance  Agency 
Actions  65535 
charac
ters 

Note on Federal Solicitation Data: The Recovery Act requires that Recovery.gov include links to
contract and financial assistance solicitations. Contract solicitations will be published through
the Federal Business Opportunities website (www.fbo.gov) and Federal financial assistance
solicitations will be published through Grants.gov. The legislation does not state any specific
data field requirements for contract or financial assistance solicitations to be presented on
Recovery.gov.

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Appendix 2 — Agency Recovery Related Web Pages

As discussed in Section 2.12 of this guidance, agencies are not required to develop new websites
dedicated to American Recovery and Reinvestment Act (Recovery Act) efforts. Each agency
should dedicate a page of its primary website to Recovery Act activities (entitled “[Insert Agency
Name] Information Related to the American Recovery and Reinvestment Act of 2009”. Those
pages must be consistently identified with a URL that identifies the key entry page to that
information with a “recovery” standard extension, i.e. www.agency.gov/recovery. Agencies
must create their recovery related page within one week of the issuance of this guidance.

This section outlines specific requirements and best practices for agency recovery related web
pages.

Requirements

In order to facilitate transparency to the public, agencies must follow some minimum common
formats for their Recovery Act pages. These include:

• Page titles. To help the public find the information via commercial and government search
engines, agencies should use a consistent page title for their main Recovery Act page
(“Agency X Information Related to the American Recovery and Reinvestment Act of 2009”).

• Main headings. Each agency’s Recovery Act key entry page should include the following
main headings:

o “Overview of the American Recovery and Reinvestment Act of 2009 (Recovery Act).
The American Recovery and Reinvestment Act of 2009 (Recovery Act) was signed into
law by President Obama on February 17th, 2009. It is an unprecedented effort to
jumpstart our economy, create or save millions of jobs, and put a down payment on
addressing long-neglected challenges so our country can thrive in the 21st century. The
Act is an extraordinary response to a crisis unlike any since the Great Depression, and
includes measures to modernize our nation's infrastructure, enhance energy
independence, expand educational opportunities, preserve and improve affordable health
care, provide tax relief, and protect those in greatest need.”

o “Implementing the American Recovery and Reinvestment Act of 2009 (Recovery Act)”.
Agencies should include a short paragraph or bullets giving an overview of
implementation of the Recovery Act for your agency.

o “Agency Plans and Reports”. This section should include agency plans and reports as
required by this guidance, the Recovery Act, or as determined by the agency. This
includes agency and program specific reports required by the Recovery Act.

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 o “Learn more about our programs”. Agencies should use this section to highlight program
plans and other programmatic activities. There are no specific formatting requirements
for this section.

• Prominent link to Recovery.gov. Agencies should include the “Recovery.gov” graphic

prominently on their Recovery pages, linked to www.recovery.gov. Agencies can find the
recovery graphic at https://max.omb.gov/community/x/7QCtDw.

• Legislation. Agencies should include a link to the final legislation on their main Recovery
page.

• How to Apply. Agencies should have prominent links to Grants.gov and FBO.gov so that
people and entities that want to apply or bid for grants, contracts, loans or loan guarantees
have a clear and consistent avenue to learn more and act.

• Link to agency Inspector General (IG) website. Include a link to the IG's websites to allow
for fraud reporting and easy access to IG reports.

• Transparency & reporting. Agencies will also be using the web for transparency and
reporting that is required for compliance with the Recovery Act. Please see Appendix 1 for
more information.

Best practices

Agencies should have a prominent link to their Recovery Act key entry page from their home
page and from other relevant sections of their site where visitors are likely to look for this
information. For example, agencies should link to their Recovery Act section from their
“Performance and Budget” page and their “Grants” page, where applicable. Agencies should
also link to their Recovery Act page from relevant program areas that are receiving funding
from Recovery Act.

• Content should be written in plain language and follow government-wide best practices for
plain language (see:
http://www.usa.gov/webcontent/managing_content/writing_and_editing.shtml).

• Agencies should ensure that all content, including printable reports, is accessible to people
with disabilities and meets requirements of Section 508 of the Rehabilitation Act of 1973 as
well as any agency specific Section 508 procedures. Agencies should ensure that large
documents are presented in a way for users to easily scan their contents and download them.

• To ensure maximum transparency and accountability, agencies should provide contact

information for the person or office responsible for maintaining their agency’s Recovery Act
content. Agencies should also provide contact information for the office of the senior
accountable agency official responsible for Recovery Act activities.

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• As they develop their web content, agencies should follow general government-wide web
best practices developed by the Federal Web Managers Council, published on
WebContent.gov: http://www.usa.gov/webcontent/reqs_bestpractices/best_practices.shtml

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