Negotiation And Execution Of The Grant Agreement
Following the receipt of the Final award letter, the grantee should contact the Regional Manager/Asset Manager or Business Manager identified in the award letter to initiate contracting procedures. The grant agreement is a written contract entered into by the State and the local grantee which specifies the responsibilities, authority and benefits of both parties and of subcontractors of the grantee.
Based on the grantee's application and subsequent negotiations and discussions with the grantee, the Contract Specialist from DOLA prepares the final draft grant agreement for signature by all parties. The State staff then transmits three copies of the agreement to the grantee for review and signature. It is recommended that local officials have the municipal/county attorney review the document for accuracy and to ensure that it is consistent with local power and authorities. Any discrepancies or issues should be raised with the State Project Monitor assigned to the project or with the Contract Specialist.
Following local review and acceptance of the contract, the chief elected official or his/her authorized designee must sign all three copies of the contract and return all three copies to the state. The State will then execute the agreement and specify the effective date (on the last page of the main body of the grant agreement.) A fully executed copy of the contract will then be returned to the grantee.
Once an environmental review has been completed and the contract is fully executed by all parties, the grantee can begin to incur costs subject to:
- Limitations And Restrictions Resulting From Federal Environmental Review Requirements; and
Any Special Conditions (which are identified in the award letter and/or contract).
This procedural step is not always applicable; however, special conditions are occasionally imposed by State staff. Any special conditions that may have been established are usually identified in both the award letter and contract. An example of such a special condition may be a requirement that certain other financial commitments be finalized within certain time frames. If these special conditions are not met, then the State may withdraw its award.