H.R. 7691, a Bill to Distinguish Federal Grant and Cooperative Agreement Relationships from Federal Procurement Relationships and for Other Purposes

The purpose of H.R. 7691 was outlined and support recommended. The bill is intended to characterize the relationship between the federal government and recipients in the acquisition of property and services and in the furnishing of assistance by the federal government. This would promote a better understanding of federal spending and help eliminate unnecessary administrative requirements. It would also establish governmentwide criteria for selection of appropriate legal instruments, a clear definition of the relationships they reflect, and a better understanding of the responsibilities of the parties. It would promote increased discipline in the selection and use of types of contract or agreement and maximize competition. It would require a study of the relationship between the federal government and recipients in federal assistance programs, and the feasibility of developing a system of guidance in carrying out such programs. Enactment of the bill would have the effect of adopting two recommendations of the Commission on Government Procurement supported by the Comptroller General. The first recommendation related to clarifying differences between grant-type relationships and contracts; the second related to standardization of assistance methods and establishing a system of guidance for management of assistance programs.