GIM 18
Attachment A
Part 5

REQUESTS FOR APPROVALS

Construction Grants

Under discretionary grants, all requests that require PHS awarding office prior approval must be submitted in writing to the GMO designated on the NGA. All requests must bear the signature of an authorized official of the business office of the grantee organization as well as the principal investigator or program or project director. The GMO shall be responsible for reviewing the request with PHS program officials, as necessary, and for informing the grantee in writing of the final disposition of the request.

Only responses signed by the GMO are to be considered valid. Grantees who take action on the basis of letters by unauthorized officials do so at their own risk. Such responses will not be considered binding by or upon the Public Health Service.

Whenever grantees contemplate rebudgeting or other post- award changes and are uncertain about the allowability of types or levels of cost or an activity(ies), particularly when such items are not mentioned in the regulations, cost principles, or other HHS or PHS policy documents, they are strongly encouraged to consult in advance with the designated GMO.

Failure to obtain prior approval when required from the appropriate PHS awarding office may result in the disallowance of costs. Additionally, even where the grantee has responsibility for rebudgeting actions, if it is determined, through audit or otherwise, that the costs do not meet the required tests of allowability, allocability, applicability, reasonableness, etc., the costs may be disallowed.

Under construction grants, the grantee (owner) must request PHS awarding office prior approval for unsolicited modifications or changes to previously approved construction contracts whenever--

1. The revision results from changes in the scope or objective of the grant-supported project, including proposed modifications that would materially alter the costs of the project, space utilization, or financial layout.

2. The revision increases the amount of Federal funds needed to complete the project.

After receipt of written prior approval from the PHS awarding office GMO, the grantee may authorize the approved modification(s) of the construction contract. Other less substantive modifications to construction contracts may be accomplished without PHS awarding office prior approval. However, copies of all change orders to construction contracts must be retained as grant-related records (see "Record Retention and Access").

3. For subgrants and contracts under grants, the prior approval authority is usually the grantee. However, the grantee may not approve any action or cost that is inconsistent with the purpose or terms of the Federal grant. If an action by a subgrantee or contractor will result in a change in the overall grant project or budget requiring granting agency approval, the grantee shall obtain that approval from PHS before giving its approval to the subgrantee or contractor.