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For-profits (this will go in 2 CFR part 200)

USDA will adopt 2 CFR part 200 for use with for-profit entities. The USDA assistance regulations applied to for-profits from their creation in 1981 to 2013, when the Uniform Guidance was implemented. The Uniform Guidance does not require the application of 2 CFR part 200 to for-profits. USDA should have taken an independent regulatory action to bring the for-profits back in, but it was not done. During this period, the USDA agencies and staff offices have been binding for-profits to comply with 2 CFR part 200 at the level of the individual awards. In discussion with OGC, this proposed action will ensure uniformity in the regulatory body and ensure clarity of application of 2 CFR part 200 to for-profits.

Mutual interest agreements and 2 CFR part 200 (this will go in 7 CFR)

USDA has several authorities which, by statute, are neither assistance nor procurement. However, in an evaluation of the activities completed and the relationships established, they are more like assistance than procurement. In alignment with GAO direction on these types of authorities, it is more appropriate to then apply requirements (and appropriations law concepts) relating to financial assistance than procurement. To reduce administrative burden, it is appropriate to adopt 2 CFR part 200 for use and applicability to these authorities, which will increase consistency in agency and staff office procedures and reduce burden on recipients/cooperators.