Federal Grant and Cooperative Agreement Act

Federal Grant and Cooperative Agreement Act - Declares the purposes of this Act to be: (1) to characterize Federal/non-Federal relationships in the acquisition of property and services and in the furnishing of assistance by the Federal Government; and (2) to establish Government-wide standards for selection of appropriate legal instruments to achieve uniformity in the use by the executive agencies of such instruments, a clear definition of the relationships they reflect, and a better understanding of the responsibilities of the parties.

Requires each executive agency to use a procurement contract as the legal instrument reflecting a relationship between the Federal Government and a State or local government or other recipient whenever the principal purpose of the agreement is the acquisition, by purchase, lease, or barter, of property or services for the direct benefit or use of the Federal Government.

Requires each executive agency to use a grant agreement as the legal instrument reflecting a relationship between the Federal Government and a State or local government or other recipient whenever the principal purpose of the relationship is the transfer of money, property, services, or anything of value to the State or local government; and whenever no substantial involvement is anticipated between the executive agency, acting for the Federal Government, and the State or local government or other recipient during performances of the contemplated activity.

Requires each executive agency to use a cooperative agreement as the legal instrument reflecting a relationship between the Federal Government and a State or local government or other recipient whenever the principal purpose of the relationship is the transfer of money, property, services, or anything of value to the State or local government; and whenever substantial involvement is anticipated between the executive agency, acting for the Federal Government, and the State or local government or other recipient during performance of the contemplated activity.

Directs the Director of the Office of Management and Budget, in cooperation with the executive agencies, to undertake a study to develop a better understanding of alternative means of implementing Federal assistance programs, and to determine the feasibility of developing a comprehensive system of guidance for Federal assistance programs.