Section 600.29 - Fixed obligation awards(a)General. This section contains provisions applicable to the award of financial assistance instruments on a fixed amount basis. Under a fixed obligation award, funds are issued in support of a project without a requirement for Federal monitoring of actual costs subsequently incurred.(b)Provisions applicable to fixed obligation awards. Financial assistance awards may be made on a fixed obligation basis subject to the following requirements:(1) Each fixed obligation award may neither exceed $250,000 nor exceed one year in length.(2) Programs which require mandatory cost sharing are not eligible.(3) Proposed costs must be analyzed in detail to ensure consistency with applicable cost principles.(4) Budget categories are not stipulated in making an award. However, budgets are submitted by an applicant and reviewed for purposes of establishing the amount to be awarded.(5) Payments must be made in the same manner as other financial assistance awards, except that when determined appropriate by the cognizant program official and Contracting Officer a lump sum payment may be made.(6) Recipients must certify in writing to the Contracting Officer at the end of the project that the activity was completed or the level of effort was expended, however should the activity or effort not be carried out, the recipient would be expected to make appropriate reimbursements.(7) Periodic reports may be established for each award so long as they are not more frequently than quarterly.(8) Changes in principal investigator or project leader, scope of effort, or institution, must receive the prior approval of the Department.61 FR 7166, Feb. 26, 1996, as amended at 74 FR 44277, Aug. 28, 2009