Suzette,

the title to equipment may depend on the value of the equipment at the end
of
the project period. In some cases, the agency does have the right to
request
transfer of equipment.

See the post-award administration policies in the PHS Grants Policy
Statement
(on-line at http://www.nih.gov/grants/policy/gps/). Look through the
section on
"Post-award administration" for the subsection on Equipment and Supplies:

===quoted section ===
Under authority of Public Law 95-224, nonprofit institutions of higher
education
and nonprofit organizations whose primary purpose is the conduct of
scientific
research are exempted from further obligation to the Federal Government for
equipment and supplies acquired under a grant for support of basic or
applied
scientific research, although PHS has the right to require transfer of
title to
certain equipment as provided in 45 CFR Part 74.136. The exemption does not
apply to other types of institutions nor to other types of grants, e.g.,
training grants, regardless of the type of institution. All other equipment
 and
supplies acquired under PHS grant-supported projects and activities are
considered nonexempt.

For items of equipment having a unit acquisition cost of $1,000 or more
(for
grants subject to 45 CFR Part 74) or $5,000 or more (for grants subject to
45
CFR Part 92), PHS has the right to require transfer of the equipment,
including
title, to the Federal Government or to an eligible third party named by the
 PHS
awarding office under the conditions specified in 45 CFR Parts 74.136 and
92.32,
respectively. This right applies to all types of grantees, including
Federal
institutions, under all types of grants under the stipulated conditions.

=== end of quoted section ===

Molly Daniel
Grants Specialist
Sarah Bush Lincoln Health System
Mattoon, IL
email: xxxxxx@sblhs.org

____________________Reply Separator____________________
Subject:    Equipment
Author: "Suzette S. Mauney" <xxxxxx@APPSTATE.EDU>
Date:       11/11/98 8:35 PM

I have a quick question regarding title to equipment in a
Federal Grant. The clause is written as follows:
Status of Equipment Purchased with Contract Funds:
Title to the equipment purchased with funds under this
Agreement shall be retained by the Division.  The
disposition of title to the equipment upon completion of the
Agreement Shall be determined by the Division. (The agency
is DHHS.) I questioned whether or not we should give up the
title and also questioned the maintenance and repair. Is it
true, that DHHS would get the title since they are a federal
agency? My attorney advised me to ask for the title and now
I am getting a conflicting answer from a faculty. The
faculty said that in all federal grants they, meaning
the agency, keep the title. Obviously, I am new at
negotiating contracts and would appreciate any insight.
Thanks, Suzette
You can respond to me at xxxxxx@appstate.edu.
----------------------
Suzette S. Mauney
Appalachian State University
Assistant Director, Sponsored Programs
(704)262-2694*fax(704)262-2709
xxxxxx@appstate.edu