Notices to NIH, HRSA, NCI, CDC, NASA, DOE, EPA, USAID, and OVW grantees and contractors

Monday, March 4, 2013

 

Additional agency guidance is available at the SRA's Sequestration Resource Center.


National Institutes of Health

March 4, 2013

To All NIH Contractors:

As you are likely aware, in accordance with the Budget Control Act of 2011, a series of spending cuts, called sequestration, will cancel approximately $85 billion in budgetary resources across the Federal government for the remainder of the Federal fiscal year.  As a partner with you in accomplishing the National Institutes of Health’s (NIH) mission, I am writing to provide you with information about what this reduction means for the contract(s) with your organization.

At this time, the Department of Health and Human Services and NIH are taking every step to mitigate the effects of these cuts, but based on our initial analysis, it is possible that your contract(s) may be affected.  Examples of this impact could include:  not exercising an option on your contract(s); or negotiating lower prices or other terms via a bilateral modification to meet the constraints imposed by sequestration.  Additionally, plans for new contract(s) may be re-scoped, delayed, or canceled depending on the nature of the work and the availability of resources. 

To the extent that fiscal year 2013 funds for your contract(s) are affected due to these budget cuts, you will be contacted by the appropriate Contracting Officer with additional details at a later point.   Please note that these budget cuts do not affect contract awards made with fiscal year 2012 resources.

Thank you for your continued partnership with the Department of Health and Human Services and NIH, and for your cooperation as we work together to manage these circumstances.

Diane J. Frasier
Head of the Contracting Activity, and
Director of the Office of Acquisition and Logistics Management
National Institutes of Health


HRSA

March 4, 2013

Dear HRSA Grantee:

As you are likely aware, in accordance with the Budget Control Act of 2011, a series of spending cuts, called sequestration, will cancel approximately $85 billion in budgetary resources across the Federal government for the remainder of the Federal fiscal year.  As a partner with the Health Resources and Services Administration ( HRSA), we are writing to provide you with information about what this reduction means for the funds provided to your organization.

At this time, the Department of Health and Human Services and HRSA are taking every step to mitigate the effects of these cuts.  However, based on our initial analysis, the overall payments for the fiscal year for our formula programs will likely be reduced by 5%; therefore, the remaining payments for the fiscal year will be reduced to reflect the new total for your program.

To the extent that your grant is affected due to these budget cuts, you will be contacted by the appropriate Grant Management or Project  Officer with additional details at a later point.  

Thank you for your continued partnership with the Department of Health and Human Services and HRSA, and for your cooperation as we work together to manage these circumstances.

Michael J. Nelson
Associate Administrator
Office of Federal Assistance Management
Health Resources and Services Administration


NCI

March 7, 2013

To the NCI-supported scientific community:

As you have heard and read, the Budget Control Act (aka “sequestration”) has gone into effect as of March 1st.  All components of the NIH, including the NCI, are working diligently to assess the impact of this unprecedented budget reduction on our ability to manage the current research portfolio and to continue to award new and competing grants in this fiscal year.  Knowing the anxiety that we all share about these developments, I am writing to report to you on our objectives, progress, and prognostications, even though a full account is not yet possible.

First, I must emphasize that we cannot provide a definitive and detailed account of our plans for the year at this time because we are currently operating on a so-called Continuing Resolution that extends only through March 27th.  Funding for the rest of the fiscal year (FY2013) will depend on Congress’s ability to propose and pass appropriations measures that carry us through September 30th.  This could be done through another Continuing Resolution, through a more typical appropriations bill, or through some kind of omnibus bill that bundles measures affecting many agencies.

At present, our Continuing Resolution provides funds to the NCI for the first six months of this fiscal year (October 1 - March 27) at 0.62% above last year’s level for the same time period.  Under these circumstances, as in many other years that have begun with Continuing Resolutions, we are paying both new and continuing grants at about 90% of expected levels---a conservative measure that acknowledges our uncertainty about the rest of the year.  Even in this especially difficult year, we anticipate increasing the funding level for those awards (by an amount still to be ascertained) once our funding for the full year has been determined.  As I have described in earlier messages and as is detailed on the NCI’s web site (https://deaissl.nci.nih.gov/roller/ncidea/entry/2012_funding_patterns), we continue to evaluate our applications for new and renewing grants by a careful combination of peer and programmatic review.  I urge you to visit the site to see the outcomes of that process for the past two years.

One of the guiding principles in our plans for adapting to sequestration is to maintain the number of competitive awards ---new grants and renewals---at levels similar to that achieved in the past few years (over 1000 grants, with success rates of 13 to 14 percent).  These are, of course, fewer grants than we would like to make, and the grant sizes are often smaller than they should be.   Moreover, to achieve this goal, we need to make reductions, modest but significant, in virtually all of our extra- and intramural programs, including non-competitive (type 5) grant renewals, cancer centers, and research contracts.    In addition, we do not expect to reduce salaries, place employees on furlough, or take other drastic steps in making these adjustments.  Yet in the plan we envision, we hope to protect, as best we can, the potentially most vulnerable parts of our community:  fully trained scientists who are applying for their first grants, experienced investigators who are renewing their grants and maintaining their research teams, and the trainees we will need for cancer research in the future.

I intend to send you more details about plans for FY2013 once budgets for the rest of the year have been defined.  But I want you to know that those of us working on your behalf at the NCI are making every effort to sustain the functionality of our research enterprise in difficult times.

Harold Varmus
Director, NCI
 


Center for Disease Control

March 4, 2013

Dear Colleagues:

As you are likely aware, in accordance with the Budget Control Act of 2011, a series of spending cuts, called sequestration, will cancel approximately $85 billion in budgetary resources across the Federal government for the remainder of the Federal fiscal year.  As a partner with the Centers for Disease Control and Prevention (CDC), we are writing to provide you with information about what this reduction means for the funds provided to your organization.

At this time, the Department of Health and Human Services and CDC are taking every step to mitigate the effects of these cuts, but based on our initial analysis, it is possible that your grants or cooperative agreement awards may be affected.  Examples of this impact could include: not issuing continuation awards, not awarding incremental funds on multi-year awards, or negotiating a reduction in the scope of your awards to meet the constraints imposed by sequestration.  Additionally, plans for new grants may be re-scoped, delayed, or canceled depending on the nature of the work and the availability of resources. 

To the extent that fiscal year 2013 funds for your grants or cooperative agreement are affected due to these budget cuts, you will be contacted by the appropriate Grant Management Officer with additional details at a later point.  Please note that these budget cuts do not affect grant or cooperative agreement awards made with fiscal year 2012 resources.

Thank you for your continued partnership with the Department of Health and Human Services and CDC, and for your cooperation as we work together to manage these circumstances.

Please direct questions to your grants management officer.

Sherry Smallwood, Chief Grants Management Officer
Centers for Disease Control and Prevention
 


NASA

March 4, 2013

Dear Contractor, Grantee, or Agreement Participant:

This communication is being sent to all the National Aeronautics and Space Administration (NASA) contract, grant, cooperative agreement, and Space Act agreement holders.

As you are likely aware, the President was required by law to issue a sequestration order canceling approximately $85 billion in budgetary resources across the Federal Government for the remainder of the Federal fiscal year. We are writing to provide you with timely and clear information about how these budget cuts impact us, and in turn what it means for funds provided to your organization.

At this time, NASA is taking every step to mitigate the effects of these cuts, but based on our initial analysis, it is possible that your contract, grant, cooperative agreement, or Space Act agreement may be affected. In addition, planned actions for new and existing work may be re-scoped, delayed, or canceled depending on the nature of the work and the degree to which it directly supports the Agency's mission goals.

To the extent that your contract, grant, cooperative agreement, or Space Act agreement is affected due to these budget cuts, you will be contacted by your Contracting, Agreement or Grant Officer with additional details.

Thank you for your continued partnership with NASA, and for your cooperation as we work together to continue operations and produce the important and necessary results that we have planned.

Sincerely,
ELizabeth (Beth) Robinson
Chief Acquisition Officer
 


Department of Energy

March 4, 2013

Dear Contractor or Financial Assistance Recipient:

As you are likely aware, due to the failure of Congress to reach a deal on balanced deficit reduction to avoid sequestration, the President on Friday was required by law to issue a sequestration order canceling approximately $85 billion in budgetary resources across the Federal government for the remainder of the Federal fiscal year. As partners with the Department of Energy, we are writing to provide you with timely and clear information about how these unfortunate budget cuts affect us, and in turn what it means for funds provided to our contractors and financial assistance recipients.

At this time, the Department of Energy is taking every step to mitigate the effects of these cuts. However, the Department may nevertheless need to take certain actions with regard to particular contracts and assistance agreements in order to comply with the required budget cuts.

For procurement contracts, the Department of Energy may decide not to exercise an option or may need to negotiate lower prices or other terms via a bilateral modification to meet the constraints imposed by sequestration. The Department may also determine it necessary to stop or suspend work, reduce the scope of work, or partially or completely terminate your contract for convenience. Additionally, planned contract actions for new work may be re-scoped, delayed, or canceled depending on the nature of the work and the degree to which it directly supports the agency's mission goals. For financial assistance agreements, the Department may decide not to issue a continuation award-including not awarding incremental funds on multi-year awards-and may require negotiation of a reduction in the scope of your award.

To the extent that your contract or financial assistance agreement is affected due to these budget cuts, you will be contacted by the appropriate Contracting Officer with additional details.

Thank you for your continued partnership with the Department of Energy, and for your cooperation as we work together to manage these unfortunate circumstances. 

Daniel B. Poneman
Deputy Secretary of Energy

 


Environmental Protection Agency

March 5, 2013

Dear Assistance Agreement/Fellowship Recipient:

As you know, the American Taxpayer Relief Act of 2012 mandates across-the-board spending cuts (known as sequestration) be ordered on March 1, 2013. As required by law, the President issued a sequestration order cancelling billions in budgetary resources across the federal government for the remainder of the federal fiscal year. Given the significance of the EPA's relationships with the states, tribes, and other stakeholders, it is important to me that we keep you informed about what these budget cuts mean for the agency and its partners.

As a result of sequestration, the agency's overall budget will be reduced for the remainder of the fiscal year, impacting our employees and our programs. In the face of these reductions, the agency is doing everything possible to protect mission critical activities to the greatest extent possible. To the extent that your grant/fellowship agreement is affected due to these budget cuts, you will be contacted by the appropriate Grants Officer with additional details, and we are committed to working closely with you to manage any changes affecting your grant/fellowship agreement.

I thank you for your continued support and partnership with the EPA, and for your cooperation as we work together to manage these unfortunate circumstances. If you have any questions, please do not hesitate to contact me at Corcoran.Howard@epa.gov.
 

Sincerely,
Howard Corcoran
Director, Office of Grants and Debarment/OARM/EPA

 


USAID

March 12, 2013

Dear Recipient,

As you are likely aware, due to the failure of Congress to reach a deal on balanced deficit reduction to avoid sequestration, the President on March 1, 2013, required by law, issued a sequestration order canceling approximately $85 billion in budgetary resources across the Federal government for the remainder of the Federal fiscal year. As partners with the United States Agency for International Development (USAID), we are writing to provide you with timely and clear information about how these unfortunate budget cuts impact us, and in tum what it may mean for funds provided to USAID assistance recipients.

At this time, USAID is taking every step to mitigate the effects of these cuts, but based on our initial analysis, it is possible that your organization's workforce, revenue, and planning processes may be affected. For example, USAID may determine it necessary to reduce current or future funding of your agreement or completely terminate your assistance agreement.

To the extent that your agreement is affected due to these budget cuts, you will be contacted by the appropriate USAID Agreement Officer with additional details. Thank you for your continued partnership with the United States Agency for International Development and for your cooperation as we work together to manage these unfortunate circumstances. 

Sincerely,

Aman S. Djahanbani
Senior Procurement Executive


Office of Violence Against Women

March 21, 2013

Dear Office on Violence Against Women Grantee:

As a result of the Budget Control Act of 2011, the President signed the budget sequestration order on March 1st, which requires across-the-board reductions to most Federal Government accounts.  For the Department of Justice, the total reduction was $1.67 billion in Fiscal Year (FY) 2013, which, by law, must be applied to all Department programs.  This reduction will result in serious consequences for the administration of justice for our communities across the Nation.  The sequestration cut OVW FY2013 funding levels by $20 million.  We understand these reductions impact all of us, including our grantees and customers in the state, local and tribal justice communities.

As I explained in my February 22nd email to OVW’s grantees and cooperative agreement recipients, senior leadership throughout the Department of Justice has been working to determine how we could best manage sequestration budget reductions while protecting the Department’s ability to perform its mission, including how we can best position the Office on Violence Against Women (OVW) to mitigate the impact on our state, local, tribal, and non-profit partners.
 
Sequestration budget reductions will affect FY 2013 funding levels for OVW programs across the board.  Sequestration will not reduce grantee funds received in previous fiscal years.

Providing training and technical assistance to our state, local, tribal, and non-profit partners is part of OVW’s core mission.  However, in light of the budget environment and concerns over government spending, we have redoubled our vigilance of the expenditure of tax dollars, particularly larger expenditures, at such a critical time.  As a result, and due to the restrictions on spending under the sequestration, the ability of OVW’s federal staff to travel and participate in grantee meetings and events will be significantly reduced, and possibly eliminated in the near term.

For cooperative agreement recipients, newly proposed state, local, tribal, and non-profit conferences will continue to be carefully scrutinized throughout the review. We continue to strongly encourage grantees and cooperative agreement recipients to consider alternative means to achieve our collective goals, including the use of video conferencing, webinars, and other technologies when feasible. All conference costs should be kept to the bare minimum needed to support essential business. Large conferences (including training events) with combined expenditures over $100,000 will likely be postponed except in cases where life and safety or other mission critical needs are at risk without the event taking place at the current time.

On March 21, 2013, Congress passed a continuing resolution bill funding the Government until September 30, 2013.  This will now go to the President for his signature.  However, the sequestration is still in effect, and OVW remains subject to a $20 million reduction.  We will continue to monitor this situation closely and will share with you information as it becomes available.

We thank you for your work in support of domestic violence, sexual assault, dating violence, and stalking victims and survivors, your partnership, and your understanding in these extraordinarily difficult times.

Sincerely,

Bea Hanson
Acting Director