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This final rule is the first of a sequence of six documents that collectively establish for DoD grants and cooperative agreements an updated interim implementation of Governmentwide guidance on administrative requirements, cost principles, and audit requirements for Federal awards. This rule removes a part of the DoD Grant and Agreement Regulations (DoDGARs) that DoD adopted on December 19, 2014, as its interim implementation of the guidance, pending completion of more extensive updates to the DoDGARs needed to implement the guidance on a longer-term basis. It replaces that part with a new DoDGARs part containing a revised implementation of the guidance.

The revised implementation in the new part incorporates 10 other new DoDGARs parts. Those 10 other new parts, set out in rule documents following this one, do several things. First, they provide standard wording of general terms and conditions governing administrative requirements for DoD grant and cooperative agreement awards to educational, nonprofit, and governmental entities subject to the Governmentwide guidance. Second, they provide standard wording for general terms and conditions addressing national policy requirements for DoD grant and cooperative agreement awards to all types of entities. Third, they establish a standard format for DoD grant and cooperative agreement awards. Finally, they establish a central DoDGARs part with definitions of terms used in those regulations.

In conjunction with establishing the revised implementation of the Governmentwide guidance, this rule establishes seven subchapters within DoD’s chapter of the Grants and Agreements title of the Code of Federal Regulations. The purpose of the subchapters is to provide an organizing framework for the DoDGARs to make it easier for users of the regulations to locate the content that they need.

This revision supports a recommendation from the DoD Regulatory Reform Task Force.