DOT 4600.17A

1. PURPOSE. This Order updates DOT Order 4600.17, Grant Management Requirements, pertaining to the administration of financial assistance programs and prescribes the procedures for implementing laws, regulations, Executive Orders, and Office of Management and Budget (OMB) Circulars, providing guidance for the administration of DOT financial assistance programs.
   For purposes of this Order, "financial assistance" means the forms of assistance that provide funds to eligible recipients, e.g., grants, cooperative agreements, and assistance-type other transactions. Although it does not include loans, loan guarantees, interest subsidies or insurance, this Order provides guidance that can be used to better manage these instruments.
   A grant or cooperative agreement is the transfer of money, property, services, or anything of value to an eligible recipient to accomplish a public purpose of support or stimulation authorized by Federal statute, rather than the acquisition, by purchase, lease or barter, of property or services for the direct benefit of the Federal Government. A cooperative agreement differs from a grant in that, in the case of the former, substantial involvement is anticipated between the Federal Government and the recipient.An assistance-type “other transaction” is an instrument specifically created by Congress that is not a contract, grant or cooperative agreement, but is specifically designed to allow government entities, non-profit organizations and private industry to freely transfer funds, materials and technical assistance among themselves for the mutual benefit of all participants.

2. CANCELLATION.  DOT Order 4600.17, Grant Management Requirements, is superseded.  Deputy Secretary memorandums dated August 7, 1998, "Other Transactions Authority Under the Transportation Equity Act for the Twenty-First Century," and December 9, 1998, "Selection of Discretionary Grants," are cancelled.

3. BACKGROUND.  Executive Order 12861 of September 12, 1993, required that all executive branch departments and agencies eliminate at least 50 percent of their internal regulations by September 11, 1996.  In addition, several DOT Performance Review recommendations addressed the problem of a lack of centralized information for financial assistance program guidance.  As a result, all financial assistance guidance was combined into one publication, DOT Order 4600.17, in 1995.
   This Order revises requirements on audits, program announcements, indirect costs and lobbying and adds guidance for a new financial assistance instrument, “other trans-actions. New guidance on discretionary grant selection, based on the Deputy Secretary's memorandum of December 9, 1998, and the requirements of Section 1311 of TEA-21, Discretionary Grant Selection Criteria and Process, has added.

4. POLICY.  DOT policy is to comply with all instructions and standards as contained in Appendices A through I of this Order except where enabling legislation for a specific financial assistance program prescribes different policies or requirements, or where a specific exemption has been granted by OMB or the Assistant Secretary for Administration in accordance with paragraph 6 of this Order.

5. APPLICABILITY.  The provisions of this Order and its Appendices apply to all operating administrations and secretarial offices that award Federal assistance to non-Federal entities, or provide policy guidance to departmental financial assistance managers.

6. RESPONSIBILITIES.
   • The Assistant Secretary for Administration shall issue additional instructions as required for implementing the contents of this Order only in those instances where the prescribed requirements need further clarification and/or implementation.

   • Operating administrations and applicable secretarial offices shall establish any necessary implementing procedures to comply with this Order.

   • Operating administrations and applicable secretarial offices shall submit all new and/or revised procedures which are designed to implement the requirements of this Order, or the directives this Order implements,to the Assistant Secretary for Administration for clearance before the procedures are issued. Procedures will be reviewed to determine compliance with the appropriate guidance.

   • When required, operating administrations and applicable secretarial offices shall request waivers to the requirements of this Order, or the directives this Order implements, from the Assistant Secretary for Administration.Waivers must be accompanied by sufficient information to justify an exemption.

7. IMPLEMENTATION. The policy and procedures contained in Order and its Appendices are effective immediately. Implementing directives required by paragraph 6 shall be submitted within 90 days of the publication of this Order.