---
kind: "range"
citation: "31 U.S.C. §§ 6301–6308"
title: "31"
from: "6301"
to: "6308"
count: 8
release: "119-102"
url: "https://uscodex.org/usc/31/6301..6308"
---

# §6301. Purposes


The purposes of this chapter are to—

- (1) promote a better understanding of United States Government expenditures and help eliminate unnecessary administrative requirements on recipients of Government awards by characterizing the relationship between executive [agencies](/usc/31/1352.md?p=g-2) and contractors, [States](/usc/31/6302.md?p=5), [local governments](/usc/31/6302.md?p=3), and [other recipients](/usc/31/6302.md?p=4) in acquiring property and services and in providing United States Government assistance;
- (2) prescribe criteria for executive [agencies](/usc/31/1352.md?p=g-2) in selecting appropriate legal instruments to achieve—
  - (A) uniformity in their use by executive [agencies](/usc/31/1352.md?p=g-2);
  - (B) a clear definition of the relationships they reflect; and
  - (C) a better understanding of the responsibilities of the parties to them; and
- (3) promote increased discipline in selecting and using procurement contracts, grant agreements, and cooperative agreements, maximize competition in making procurement contracts, and encourage competition in making grants and cooperative agreements.

# §6302. Definitions


In this chapter—

- (1) “executive [agency](/usc/31/1352.md?p=g-2)” does not include a mixed-ownership Government corporation.
- (2) “grant agreement” and “cooperative agreement” do not include an agreement under which is provided only—
  - (A) direct United States Government cash assistance to an individual;
  - (B) a subsidy;
  - (C) a loan;
  - (D) a loan guarantee; or
  - (E) insurance.
- (3) “local government” means a unit of government in a [State](#5), a local public authority, a special district, an intrastate district, a council of governments, a sponsor group representative organization, an interstate entity, or another instrumentality of a local government.
- (4) “other recipient” means a [person](/usc/31/3701.md?p=c) or recipient (except a [State](#5) or [local government](#3)) authorized to receive United States Government assistance or procurement contracts and includes a charitable or educational institution.
- (5) “State” means a State of the United States, the District of Columbia, a territory or possession of the United States, an [agency](/usc/31/1352.md?p=g-2) or instrumentality of a State, and a multi-State, regional, or interstate entity having governmental duties and powers.

# §6303. Using procurement contracts


An executive [agency](/usc/31/1352.md?p=g-2) shall use a procurement contract as the legal instrument reflecting a relationship between the United States Government and a [State](/usc/31/6302.md?p=5), a [local government](/usc/31/6302.md?p=3), or [other recipient](/usc/31/6302.md?p=4) when—

- (1) the principal purpose of the instrument is to acquire (by purchase, lease, or barter) property or services for the direct benefit or use of the United States Government; or
- (2) the [agency](/usc/31/1352.md?p=g-2) decides in a specific instance that the use of a procurement contract is appropriate.

# §6304. Using grant agreements


An executive [agency](/usc/31/1352.md?p=g-2) shall use a grant agreement as the legal instrument reflecting a relationship between the United States Government and a [State](/usc/31/6302.md?p=5), a [local government](/usc/31/6302.md?p=3), or [other recipient](/usc/31/6302.md?p=4) when—

- (1) the principal purpose of the relationship is to transfer a thing of value to the [State](/usc/31/6302.md?p=5) or [local government](/usc/31/6302.md?p=3) or [other recipient](/usc/31/6302.md?p=4) to carry out a public purpose of support or stimulation authorized by a law of the United States instead of acquiring (by purchase, lease, or barter) property or services for the direct benefit or use of the United States Government; and
- (2) substantial involvement is not expected between the executive [agency](/usc/31/1352.md?p=g-2) and the [State](/usc/31/6302.md?p=5), [local government](/usc/31/6302.md?p=3), or [other recipient](/usc/31/6302.md?p=4) when carrying out the activity contemplated in the agreement.

# §6305. Using cooperative agreements


An executive [agency](/usc/31/1352.md?p=g-2) shall use a cooperative agreement as the legal instrument reflecting a relationship between the United States Government and a [State](/usc/31/6302.md?p=5), a [local government](/usc/31/6302.md?p=3), or [other recipient](/usc/31/6302.md?p=4) when—

- (1) the principal purpose of the relationship is to transfer a thing of value to the [State](/usc/31/6302.md?p=5), [local government](/usc/31/6302.md?p=3), or [other recipient](/usc/31/6302.md?p=4) to carry out a public purpose of support or stimulation authorized by a law of the United States instead of acquiring (by purchase, lease, or barter) property or services for the direct benefit or use of the United States Government; and
- (2) substantial involvement is expected between the executive [agency](/usc/31/1352.md?p=g-2) and the [State](/usc/31/6302.md?p=5), [local government](/usc/31/6302.md?p=3), or [other recipient](/usc/31/6302.md?p=4) when carrying out the activity contemplated in the agreement.

# §6306. Authority to vest title in tangible personal property for research


The head of an executive [agency](/usc/31/1352.md?p=g-2) may vest title in tangible personal property in a nonprofit institution of higher education or in a nonprofit organization whose primary purpose is conducting scientific research—

- (1) when the property is bought with amounts provided under a procurement contract, grant agreement, or cooperative agreement with the institution or organization to conduct basic or applied scientific research;
- (2) when the head of the [agency](/usc/31/1352.md?p=g-2) decides the vesting furthers the objectives of the [agency](/usc/31/1352.md?p=g-2);
- (3) without further [obligation](/usc/31/3801.md?p=a-11) to the United States Government; and
- (4) under conditions the head of the [agency](/usc/31/1352.md?p=g-2) considers appropriate.

# §6307. Interpretative guidelines and exemptions


The Director of the Office of Management and Budget may—

- (1) issue supplementary interpretative guidelines to promote consistent and efficient use of procurement contracts, grant agreements, and cooperative agreements; and
- (2) exempt a transaction or program of an executive [agency](/usc/31/1352.md?p=g-2) from this chapter.

# §6308. Use of multiple relationships for different parts of jointly financed projects


This chapter does not require an executive [agency](/usc/31/1352.md?p=g-2) to establish only one relationship between the United States Government and a [State](/usc/31/6302.md?p=5), a [local government](/usc/31/6302.md?p=3), or [other recipient](/usc/31/6302.md?p=4) on a jointly financed project involving amounts from more than one program or appropriation when different relationships would otherwise be appropriate for different parts of the project.