Understanding Expenditure-based Award: Legal Insights and Implications

Q: How do I apply for an expenditure-based award?

Applications typically involve submitting a proposal that outlines the project and expected costs to the relevant federal agency.

Q: What happens if my project costs exceed the awarded amount?

You may request additional funding based on the actual expenditures, but this requires proper documentation and justification.

Definition & Meaning

An expenditure-based award is a type of federal government contract or assistance grant where the payments made to the recipient are determined by the actual expenses incurred while fulfilling the award's objectives. This means that the total amount paid, including interim payments and the final payment, can be adjusted based on how much the recipient has spent on the project. Most federal grants and cooperative agreements fall into this category, ensuring that funding is aligned with actual project costs.

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Legal Use & context

Expenditure-based awards are commonly used in federal funding programs, particularly in areas such as research, technology development, and public service projects. These awards are governed by specific regulations, such as the Department of Defense Grant and Agreement Regulations. Users can manage the application and reporting processes for these awards using legal templates available through platforms like US Legal Forms, which are designed to simplify compliance with federal requirements.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

For instance, a university receiving a federal grant to conduct research may receive interim payments as they incur costs for equipment and personnel. If the total expenditures exceed the initial budget, the university can request additional funds based on the actual costs incurred. (hypothetical example)

Relevant laws & statutes

Expenditure-based awards are primarily governed by federal regulations outlined in Title 32 of the Code of Federal Regulations (CFR), particularly 32 CFR 37.1285, which defines the terms and conditions for technology investment agreements. Other relevant laws may include the Uniform Guidance (2 CFR Part 200) that governs federal awards to non-federal entities.

Comparison with related terms

Term	Definition	Key Differences
Cost-reimbursement award	A grant where the government pays for costs incurred by the recipient.	Payments are made after costs are incurred, unlike fixed-price contracts.
Fixed-price award	An award with a set payment amount regardless of expenses.	Payments do not vary based on actual expenditures.

Common misunderstandings

What to do if this term applies to you

If you are involved in a project funded by an expenditure-based award, ensure that you keep detailed records of all expenses. Familiarize yourself with the specific federal regulations that apply to your award. If you need assistance, consider using legal templates from US Legal Forms to help with compliance and reporting. For complex situations, consulting a legal professional is advisable.

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Quick facts

Attribute	Details
Typical Fees	Varies based on project scope and federal guidelines.
Jurisdiction	Federal government and applicable state laws.
Possible Penalties	Funding may be revoked for non-compliance or misreporting.