Section 0690-03-01-.15 - GRANTS(1) Grant Contract(a) A Grant Contract is a contract used to effect an award of funding or property to a grant recipient or Grantee. A grant shall benefit the general public or some population of the general public. Deliverables pursuant to a grant contract shall be comprised of services to third-party beneficiaries rather than services provided to the State.(b) A Grant shall represent one of the following:1. A contract effecting an award to a nonprofit organization, a for-profit organization or governmental entity, the primary purpose of which is to grant funds to finance operations or program activities;2. A contract passing through a federal award that specifically identifies by name a Grantee or subrecipient; or3. A contract effecting an award to fund work toward the completion of an activity or program that could not otherwise be more advantageously procured under a fee-for-service type contract. A grant representing this type of award must be determined by the Chief Procurement Officer to be in the best interests of the State.(2) Cost Reimbursement Grant - A Cost Reimbursement Grant may create either a subrecipient or a vendor relationship between the Grantor State Agency and the Grantee as defined by Central Procurement Office Policy or applicable law.(a) A Cost Reimbursement Grant Contract shall detail the State approved Grant Budget.1. A Grant Budget shall contain a schedule itemizing one or more specific activities or purposes under the Grant Contract along with the maximum amounts that may be reimbursed for each. A Grant Budget shall also detail the total sum that shall be available for reimbursement for all purposes under the Grant Contract and that total shall equal the maximum liability under the Grant Contract.2. A Grant Budget may also include a schedule of one or more specific units of service or milestones and the amounts that shall be reimbursed upon completion of each unit or milestone.3. A Cost Reimbursement Grant Contract shall be written, signed by the parties, and approved in accordance with these Rules and Central Procurement Office Policy.(3) Grant Budget.(a) The Grantor State Agency shall conduct analyses and negotiations to ensure that Grant Budget amounts are appropriate to support the activities contemplated in the Grant Contract.(4) Grantee Selection Process.(a) The Grantor State Agency shall document the Grantee selection process specifying whether it was competitive or non-competitive and detailing reasons for noncompetitive selections. The Grantor State Agency shall also provide a summary of said documentation to the Central Procurement Office with the Grant Contract as a condition for approval. The Central Procurement Office shall maintain a record of the selection process.(5) Endowment Grant.(a) An Endowment Grant is a limited Grant Contract that originates from a specific appropriation, effecting an award and conveyance of funds or property to a Grantee for a particular purpose to benefit the general public as a whole or some population of the general public. An Endowment Grant is used to transfer funds to a grantee pursuant to an appropriation.1. An Endowment Grant Contract shall meet the following requirements:(i) The State has documented authority to make an Endowment Grant and the State can justify that a cost-reimbursement is not a more appropriate grant model to use;(ii) The State's intention to make an endowment award free of conditions beyond the specified purpose of the grant is clear;(iii) The State has made a written offer of an endowment award to the Grantee;(iv) The Grantee has accepted the grant award in writing; and(v) The fulfillment of the Grant's specific purpose by the Grantee is set forth in the Grant Contract.(b) An Endowment Grant Contract shall result in the provision of services that are ancillary to the operation of State or federal programs, but does not involve the management and implementation of a State or federal program.(c) An Endowment Grant Contract shall not create a subrecipient relationship between the State and the Grantee as defined by Central Procurement Office Policy.(d) An Endowment Grant Contract must be determined to be in the best interests of the State by the Chief Procurement Officer.(e) The Grantor State Agency shall document the Grantee selection process specifying whether it was competitive or non-competitive and detailing reasons for a noncompetitive selection. The State Agency shall provide a summary of said documentation to the Central Procurement Office with the Grant Contract as a condition for approval.(f) An Endowment Grant Contract shall cite the State's authority to make the grant.(g) An Endowment Grant Contract shall be written, signed by the parties, and approved in accordance with these Rules and Central Procurement Office Policy.(h) Documentation of the justification to enter into an endowment grant shall be maintained by the Central Procurement Office.(6) All programs funded by a Grant Contract are subject to audit. It is not intended, however, that the existence of more than one Grant Contract or source of funds for a single Grantee require more than one audit in a single audit period.Tenn. Comp. R. & Regs. 0690-03-01-.15
Original rule filed October 22, 2013; effective January 20, 2014.Authority: T.C.A. §§ 4-56-102 and 4-56-105.