Re: Equipment Terry Edwards 11 Nov 1998 18:06 EST
For institutions of higher education...under a federal grant title to equipment should pass to the grantee. Funds for the purchase of equipment under the $5,000 federal limit should pass without any terms or provisions. For items that exceed the federal limit of $5,000, usually requires an approval from the agency (normally done in the budget justification in the proposal stages) and a title to equipment provision included in the agreement that specifies that title to equipment purchased with federal funds shall pass to the grantee. Charges relating to the use of the equipment should not be charged to another federal grant. However, government-furnished equipment is government property before it is passed to the grantee and therefore remains government property unless title is released and passed to the grantee. Under some circumstances, the federal government may wish to retain title to specialized equipment or even retain some control over the use of the equipment. This is usually negotiated prior to signing the agreement. This is supposed to have been the policy adopted by all federal agencies in order to meet the insurance requirements for educational institutions. Best examples of special circumstances: Example 1....Microscopes ($2,000)...title passes automatically, no clause needed. Example 2....Acoustical Sensors ($6,500)...agency approval & title to grantee provision Example 3....US Government vehicle ($25,000)...government-furnished property, vehicle liability insurance carried by the institution during the project, title transfers from federal to grantee with federal rights to inspect property for determination of disposition (allows the agency to inspect equipment and decide whether they will retain title or pass full title to the grantee.) Suzette S. Mauney wrote: > 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