Cooperative agreement means a legal instrument of financial assistance between a Federal awarding agency or pass-through entity and a non-Federal entity that, consistent with
31 U.S.C. §6302‐6305:
- (1) Is used to enter into a relationship the principal purpose of which is to transfer anything of value from the Federal awarding agency or pass through entity to the non-Federal entity to carry out a public purpose authorized by a law of the United States (see 31 U.S.C. §6101(3)); and not to acquire property or services for the Federal government or pass-through entity's direct benefit or use;
- (2) Is distinguished from a grant in that it provides for substantial involvement between the Federal awarding agency or pass-through entity and the non-Federal entity in carrying out the activity contemplated by the Federal award.
- (3) The term does not include:
- (i) development agreement as defined in 15 U.S.C. §3710a; or
- (ii) An agreement that provides only:
- (A) Direct United States Government cash assistance to an individual;
- (B) A subsidy;
- (C) A loan;
- (D) A loan guarantee; or
- (E) Insurance.
Quoted from 45 CFR §75.2.
