ance of common items as allowable to the terminated portion of the contract should be limited to the extent that the quantities of such items on hand, in transit, and on order are in excess of the reasonable quantitative requirement of other work.

c. If in a particular case, despite all reasonable efforts by the hospital, certain costs cannot be discontinued immediately after the effective date of termination, such costs are generally allowable within the limitations set forth in these principles, except that any such costs continuing after termination due to the negligent or willful failure of the hospital to discontinue such costs will be considered unacceptable.

d. Loss of useful value of special tooling and special machinery and equipment is generally allowable, provided (1) such special tooling, machinery or equipment is not reasonably capable of use in the other work of the hospital; (2) the interest of the Government is protected by transfer of title or by other means deemed appropriate by the contracting officer; and (3) the loss of useful value as to any one terminated contract is limited to that portion of the acquisition cost which bears the same ratio to the total acquisition cost as the terminated portion of the contract bears to the entire terminated contract and other government contracts for which the special tooling, special machinery or equipment was acquired.

e. Rental costs under unexpired leases are generally allowable where clearly shown to have been reasonably necessary for the performance of the terminated contract, less the residual value of such leases, if (1) the amount of such rental claimed does not exceed the reasonable use value of the property leased for the period of the contract and such further period as may be reasonable; and (2) the hospital makes all reasonable efforts to terminate, assign, settle, or otherwise reduce the cost of such lease. There also may be included the cost of alterations of such leased property, provided such alterations were necessary for the performance of the contract and of reasonable restoration required by the provisions of the lease.

f. Settlement expenses including the following are generally allowable:

(1) Accounting, legal, clerical, and similar costs reasonably necessary for the preparation and presentation to contracting officers of settlement claims and supporting data with respect to the terminated portion of the contract and the termination and settlement of subcontracts; and

(2) Reasonable costs for the storage, transportation, protection, and disposition of property provided by the Government or acquired or produced by the institution for the contract.

g. Subcontractor claims including the allocable portion of claims which are common

to the contract and to other work of the contractor are generally allowable.

45. Voluntary services. The value of voluntary services provided by sisters or other members of religious orders is allowable provided that amounts do not exceed that paid other employees for similar work. Such amounts must be identifiable in the records of the hospital as a legal obligation of the hospital. This may be reflected by an agreement between the religious order and the hospital supported by evidence of payments to the order.

PART 75-DIRECT GRANT PROGRAMS

Subpart A-General

REGULATIONS THAT APPLY TO DIRECT GRANT PROGRAMS

Sec.

75.1 Programs to which part 75 applies. 75.2 Exceptions in program regulations to part 75.

75.3 ED general grant regulations apply to these programs.

75.4 Department contracts.

ELIGIBILITY FOR A GRANT

75.50 How to find out whether you are eligible.

75.51 How to prove nonprofit status.

Subpart B-[Reserved]

Subpart C-How To Apply for a Grant THE APPLICATION NOTICE 75.100 Publication of an application notice; content of the notice.

75.101 Information in the application notice that helps an applicant apply. 75.102 Deadline date for applications. 75.103 Deadline date for preapplications. 75.104 Applicants must meet procedural rules.

75.105 Annual priorities.

APPLICATION Contents

75.107 Applications for new grants under a discretionary grant program. 75.108 Applications for new grants under a formula grant program.

75.109 Changes to application; number of copies.

75.110 Assure compliance with appropriate requirements of law.

75.111 Describe the project.

75.112 Include a proposed project period and a timeline.

75.113 Describe the key personnel. 75.114 Describe the resources.

311-128 0-92-7

Sec.

DEVELOPMENT OF CURRICULA OR

INSTRUCTIONAL MATERIALS

75.190 Consultation.

75.191 Consultation costs.

75.192 Dissemination.

Subpart D-How Grants Are Made

SELECTION OF NEW PROJECTS

75.200 How applications for new grants are selected for funding.

75.201 How to use the selection criteria. 75.202-75.206 [Reserved]

75.210 Selection criteria for a discretionary grant program that does not have regulations.

SELECTION PROCEDURES

75.215 How the Department selects a new project: purpose of §§ 75.216-75.222. 75.216 Returning an application to the applicant.

75.217 How the Secretary selects applications for new grants.

75.218 Applications not selected for funding.

75.219 Exceptions to the procedures under § 75.217.

75.220 Procedures the Department uses under § 75.219(a).

75.221 [Reserved]

75.222 Procedures the Department uses under § 75.219(b).

PROCEDURES TO MAKE A GRANT

75.230 How the Department makes a grant; purpose of §§ 75.231-75.236. 75.231 Additional information. 75.232 The cost analysis; basis for grant amount.

75.233 Setting the amount of the grant. 75.234 The conditions of the grant. 75.235 The notification of grant award. 75.236 Effect of the grant.

APPROVAL OF MULTI-YEAR PROJECTS 75.250 Project period can be up to 60 months.

75.251 The budget period.

75.253 Continuation of a multi-year project after the first budget period.

75.254 [Reserved]

MISCELLANEOUS

75.260 Allotments and reallotments. 75.261 Extension of a project period.

Subpart E-What Conditions Must Be Met by a Grantee?

NONDISCRIMINATION

75.500 Federal statutes and regulations on nondiscrimination.

REGULATIONS THAT APPLY TO DIRECT GRANT PROGRAMS

§ 75.1 Programs to which part 75 applies. (a) The regulations in part 75 apply to each direct grant program of the Department of Education.

(b) If a direct grant program does not have implementing regulations, the Secretary implements the program under the authorizing statute and, to the extent consistent with the authorizing statute, under the General Education Provisions Act and the regulations in this part. For the purposes of this part, the term "direct grant program" includes any grant program of the Department other than a program whose authorizing statute or implementing regulations provide a formula for allocating program funds among eligible States.

NOTE: See part 76 for the general regulations that apply to programs that allocate

funds among eligible States. See § 75.101(c) for a description of the information in the application notice for a discretionary grant program that does not have regulations. For a description of the two kinds of direct grant programs see § 75.200(b) for a description of a discretionary grant program and § 75.200(c) for a description of a formula grant program. Also see § 75.210 for the selection criteria for discretionary grant programs that do not have regulations. (Authority: 20 U.S.C. 1221e-3(a)(1))

[45 FR 22497, Apr. 3, 1980, as amended at 45 FR 28669, Apr. 29, 1980. Redesignated at 45 FR 77368, Nov. 21, 1980, and amended at 45 FR 84059, Dec. 22, 1980, 50 FR 29330, July 18, 1985; 52 FR 27803, July 24, 1987]

875.2 Exceptions in program regulations to part 75.

If a program has regulations that are not consistent with part 75, the implementing regulations for that program identify the sections of part 75 that do not apply.

(Authority: 20 U.S.C. 1221e-3(a)(1))

§ 75.3 ED general grant regulations apply to these programs.

The ED general grant regulations in 34 CFR part 74 of this title apply to the programs covered by this part. To find subjects covered under 34 CFR part 74, look in the table of contents at the beginning of 34 CFR part 74. (Authority: 20 U.S.C. 1221e-3(a)(1))

§ 75.4 Department contracts.

(a) A contract of the Department is governed by:

(1) Chapters 1 and 3 of Title 41 of the Code of Federal Regulations;

(2) Any applicable program regulations; and

(3) The request for proposals for the procurement, if any, referenced in Commerce Business Daily.

(b) The regulations in part 75 do not apply to a contract of the Department unless regulations in part 75 or a program's regulations specifically provide otherwise.

(Authority: 20 U.S.C. 1221e-3(a)(1))

ELIGIBILITY FOR A GRANT

§ 75.50 How to find out whether you are eligible.

Eligibility to apply for a grant under a program of the Department is governed by the authorizing statute and implementing regulations for that pro

gram.

(Authority: 20 U.S.C. 1221e-3(a)(1))

[45 FR 22497, Apr. 3, 1980. Redesignated at 45 FR 77368, Nov. 21, 1980, and amended at 52 FR 27803, July 24, 1987]

$75.51 How to prove nonprofit status.

(a) Under some programs, an applicant must show that it is a nonprofit organization. (See the definition of "nonprofit" in 34 CFR 77.1.)

(b) An applicant may show that it is a nonprofit organization by any of the following means:

(1) Proof that the Internal Revenue Service currently recognizes the applicant as an organization to which contributions are tax deductible under Section 501(c)(3) of the Internal Revenue Code;

(2) A statement from a State taxing body or the State attorney general certifying that:

(i) The organization is a nonprofit organization operating within the

State; and

(ii) No part of its net earnings may lawfully benefit any private shareholder or individual;

(3) A certified copy of the applicant's certificate of incorporation or similar document if it clearly establishes the nonprofit status of the applicant; or

(4) Any item described in paragraphs (b) (1) through (3) of this section if that item applies to a State or national parent organization, together with a statement by the State or parent organization that the applicant is a local nonprofit affiliate.

(Authority: 20 U.S.C. 1221e-3(a)(1))

Subpart B-[Reserved]

Subpart C-How To Apply for a Grant

THE APPLICATION NOTICE

§ 75.100 Publication of an application notice; content of the notice.

(a) Each fiscal year the Secretary publishes application notices in the FEDERAL REGISTER that explain what kind of assistance is available for new grants under the programs that the Secretary administers.

(b) The application notice for a program explains one or more of the following:

(1) How to apply for a new grant.

(2) If preapplications are used under the program, how to preapply for a new grant.

(c)(1) Each fiscal year the Secretary informs grantees that are eligible for continuation awards under § 75.253 about the procedures used to apply for those awards.

(2) The Secretary informs the grantees by individual notice or by publication in the FEDERAL REGISTER.

(Authority: 20 U.S.C. 1221e-3(a)(1))

[45 FR 22497, Apr. 3, 1980. Redesignated at 45 FR 77368, Nov. 21, 1980, and amended at 45 FR 86297, Dec. 30, 1980; 51 FR 20824, June 9, 1986]

§ 75.101 Information in the application notice that helps an applicant apply. (a) The Secretary may include such information as the following in an application notice:

(1) How an applicant can get an application package that contains: (i) Information about the program; and

(ii) The application form that the applicant must use.

(2) The amount of funds available for grants and the estimated number and amounts of those grants.

(3) If the Secretary plans to approve multi-year projects, the project period that will be approved.

(4) Any priorities established by the Secretary for the program for that year and the method the Secretary will use to implement the priorities. (See § 75.105 Annual priorities.)