How to Prepare and Obtain Clearance for ITA Agreements

 01/09/2007

Scope:  The term, agreements, applies to reimbursable agreements, agreements authorized under joint project authority, and Memoranda of Understanding/Agreement (MOU/A).  The samples included provide specific guidance referenced by the type of agreement.  See additional samples located at the Office of General Counsel (OGC) website— http://www.ogc.doc.gov/ogc/admin/general.html.

1.        Determine Applicable Type of Agreement – There are three types of agreements which are used by the International Trade Administration (ITA): 

§         Joint Project Agreement (JPA) – A JPA applies only when ITA engages in joint projects or performs services on matters of mutual interest with nonprofit organizations, research organizations, or public organizations and agencies.  Government funds can be either received or paid in JPAs.

 

      Sample I includes a sample MOU utilizing Joint Project Authority.  All ITA JPAs must include a budget, which breaks out costs (monetary or “in-kind” resources) for all parties entering the agreement.

 

§         Memorandum of Understanding/Memorandum of Agreement (MOU) – An MOU applies only when ITA enters into a binding agreement with international, Federal, state or local agencies, universities, or other private institutions.  An MOU may or may not involve funding because an MOU can include a reimbursable agreement. 

 

            Sample II is a sample MOU for a non-reimbursable detail.

 

§         Reimbursable Agreement - A reimbursable agreement applies only between ITA and another Federal Agency where government funds are either received or paid.  The majority of Reimbursable Agreements cite Economy Act authority.

 

      Sample III provides a concurrence record and a completed ITA reimbursement form (ITA-237).  All ITA Reimbursable Agreements must include a budget, although no particular format is specified or included in the sample.  (When Economy Act authority is used, please attached a Determinations and Findings sheet (ITA-2080).)

2.  Recovery of Full Costs - It is ITA's policy to recover full costs, both direct and indirect, for performance of services for others.  Direct costs also include any pay increases that might be approved after negotiation of the agreement and any overruns in cost that are incurred in the performance of the agreement.  Indirect costs are calculated at 12% of total direct costs in order to capture all General Support and Common Services costs such as the recording and assignment of direct labor hours, and the costs of equipment, supplies, and other acquisitions that benefit the project.

Assistant Secretaries or their designees may not commit to waive any element of cost (direct or indirect) or pay increases or costs overruns, without the appropriate prior approval from the Deputy Under Secretary.

3.  Waivers - Since it is ITA's policy to recover total costs, the waiving of any distributed cost associated with reimbursable work is discouraged.  No waivers of any element of distributed cost may be made without prior approval of the Deputy Under Secretary.  Before requesting a waiver, the project manager must inform the participating ITA office(s) and obtain their agreement.  A single direct project number must be agreed upon by the primary ITA office and ITA Accounting Division for assignment of waived costs as each office must use its direct appropriations to fund approved waivers.

Requests for waivers of distributed costs must be fully justified in writing prior to negotiating the agreement.  All requests for waivers must include the amount requested to be waived, and must contain a direct project number to which the waived costs will be charged.  Request for waivers are required to be submitted for all revised agreements and for all modifications to the agreements.

If disapproved, the package is returned to the appropriate project manager for re-negotiation with the sponsor.  If approved, the ITA Accounting Division will notify the appropriate project manager.  The project manager will then draw up the proposed agreement with the sponsor.

4.  Draft the Agreement – ITA offices have the primary responsibility for preparing the draft agreement.  Draft agreements will be prepared following the samples indicated above and must be cleared by the appropriate Deputy Assistant Secretary (DAS).

5.  Transmit Draft Agreement to ITA's Accounting Office – The project manager; i.e. originator, transmits the draft agreement to ITA's Accounting Division, along with a memorandum justifying the agreement and its related costs, if applicable.  (Be sure to include a Determination and findings Form (ITA-2080) for reimbursable agreements that cite Economy Act authority.)

ITA Accounting Division will review the agreement and justification to ensure the information listed appears to be appropriate.  Agreements greater than $25,000 will be forwarded to the Assistant General Counsel for Administration for legal review and approval.  Agreements $25,000 and below will be forwarded to the Office of Organization and Management Support (OOMS) for approval.   

4.       6. Obtain Legal Review and Produce Final Signed Agreement – The Assistant General Counsel for Administration reviews all the agreements greater than $25,000 and provides comments/concurrence and, once approved, returns it to the originator for preparation of the final agreement.  After obtaining OGC’s clearance, the appropriate DAS can sign the final agreement.

7. Obtain Effective Date – The final signed agreement is returned to the ITA's Accounting Division.  The Accounting Division forwards one copy to the National Business Center (NBC) for entry into the accounting system, retains one copy for internal use, and returns the others to the appropriate originator.  The agreement becomes effective for the period specified when signed by all appropriate parties. 

8.  Central File – NBC is the official central repository of all ITA agreements.