March 4, 2009
MEMORANDUM
From: Counsel
To:
Deputy for Finance
Comptroller
Subj: Application of 10 USC § 6977 – Grants for Faculty Research for Scientific, Literary, and
Educational Purposes: Acceptance; Authorized Grantees
1. As requested, a review was conducted to clarify the Naval Academy’s authority to accept grants under the subject
statute. Specifically, 10 USC § 6977 (c) - Entities From Which Grants May Be Accepted. This review included the
legislative history of the statute, if any, and consultation with Counsel, Office of the Assistant Secretary of the Navy
(Financial Management and Comptroller).
2. The specific scenarios provided include the following: (1) funding for the grant was provided directly to the
Academy from another Federal Government organization; (2) funding for the grant originated with a Federal
Government organization but those funds were subsequently transferred to a non-federal entity that then, in turn,
awarded a grant to the Naval Academy.
3. The general rule in any statutory interpretation is a two-step process. First, is the language itself clear on its face
as to the intent of Congress and second, if not clear, does the legislative history of the statute provide any
clarification as to the meaning Congress ascribed to the terms contained in the legislation?
4. In looking at the plain language of 10 USC § 6977 (c), the examples of organizations from which grants may be
accepted are “…corporation, fund, foundation, educational institution, or similar entity that is organized and
operated primarily for scientific, literary, or educational purposes.” In order to analyze this language, one cannot
isolate terms but instead must view the phrase in its entirety in order to ascertain the meaning. In this case, a string
of both public and private organization types are provided as examples. These are only examples because the string
is followed by the phrase “or similar entity.” And the “similar entity” that Congress sought to include is those
research organizations primarily focusing on “scientific, literary, or educational purposes.” Using the first step of
the two-step process, it is my opinion that the language in 10 USC § 6977 (c), is sufficiently clear to authorize the
acceptance of grants where the funds originated in another federal entity but passed through another non-federal
entity to the Academy as a grant and also where funds pass directly from another federal organization to the
Academy. It does not matter where a grantee received the funds, it is the granting to the Academy that the statute
sought to address. That said, acceptance of any grants, regardless of source must meet all the requirements of the
statute. In those cases where funds from another federal agency clearly do not meet the requirements of the statute,
we need another source of authority, such as the The Economy Act.
5. While it is my opinion that the plain meaning of the statute authorizes acceptance of grants under the scenarios
provided, a check of the legislative history was initiated. Regrettably, no relevant Congressional discussion could be
located. As a result, we are left to the plain meaning analysis.
6. While the inquiry focused on the application of 10 USC § 6977 (c), the authority to use the statute itself must first
be delegated by the Secretary, or designee, to the Superintendent [10 USC § 6977 (a)]. No such delegation or
implementing directive could be located. To expeditiously address this absence of authority, a Policy Memo could
be issued by the appropriate ASN with direction to follow-up with a Departmental Instruction. To that end, I drafted
a Memo for signature by the Acting Assistant Secretary of the Navy (Manpower and Reserve Affairs) with the
concurrence of ASN(M&RA) Counsel, ASN(FM&C) Counsel, and the Secretary of the Navy’s Assistant for
Legislative and Legal Matters. A copy of the signed Memo is attached.
Attachment
.