Are there any sample templates for contracting with subrecipients of ARP funds to help ensure that subrecipients are compliant with all program requirements?

The U.S. Department of the Treasury (“Treasury”) has not issued templates for contracting with vendors or subrecipients under the American Rescue Plan Act of 2021 (“ARP”).

Treasury’s Final Rule defines subrecipients as “entities that receive a subaward from a recipient to carry out a program or project on behalf of the recipient with the recipient’s Federal award funding.”[1] The Final Rule requires subrecipients to comply with “requirements such as the treatment of eligible uses of funds, procurement, and reporting requirements.”[2] Beneficiaries, defined as individuals or entities receiving funds that directly benefit the recipient, are not subject to monitoring and reporting requirements.[3]

Resources are available that offer insight regarding subrecipient compliance with program requirements. These resources include, but are not limited to:

• Code of Federal Regulations Part 200: Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“2 CFR 200”), which provides guidance on requirements inclusive of the Post Federal Award Requirements[4] that may be helpful, particularly regarding contract provisions for non-federal entity contracts under federal awards.[5]
• The Federal Emergency Management Agency (“FEMA”) Office of Chief Counsel has issued a procurement template, which focuses on contract provisions that may be useful to municipalities for Treasury funding.[6]
• Reference material provided by states on procurement, which may include federal and state requirements. These types of documents may provide good practices for local governments and are helpful guides. Frequently, these publications are issued by a state level organization such as disaster response agencies. For example, Louisiana published a comparative regulation guide useful to subrecipients in all 50 states and U.S. Territories.[7]
• Treasury ARP reporting guidance, which includes activities required during and after expenditures, provides a list of requirements for municipalities using contractors or vendors.[8] 
• NEU and Non - UGLG Distribution Templates User guide: This document explains how to use Treasury’s Portal to submit reports for Coronavirus State and Local Fiscal Recovery Funds (“CSLFRF”). It contains reporting requirements for Non-Entitlement Units of Local Government and Units of General Local Government within Counties that are Not Units of General Local Government. This is a supplement to the Reporting Guidance. [9]

It should be noted that additional information may be provided when the Treasury issues new Frequently Asked Questions (“FAQ”) specific to the Final Rule.[10] In addition, Treasury encourages municipalities to consider the guidance issued in the Statement Regarding Compliance with the Coronavirus State and Local Fiscal Recovery Funds Interim Final Rule and Final Rule.[11]

Last Revised: February 16, 2022