Can a federal agency be a partner on a project?

It depends on the situation.

• As a source of leveraged funds: Other federal grant awards may be leveraged as part of ‘Other Leveraged Funding / Resources’.  Applicants should carefully review Section III.B. Cost Sharing/Match Requirements on pgs. 12-13 of the RFA document for more detailed information about this type of leveraging.
• As non-monetary partners (not receiving project funds): Other federal agencies may be non-monetary partners on a project. However, neither the other federal agency nor the applicant organization may direct the work of the other. Applicants should clearly identify the roles and proposed involvement of the other federal agency in the Project Narrative.
• As a subaward (receiving funds): In rare cases, federal agencies can receive funds through a subaward. The allowability of another federal agency receiving funds through a subaward depends on the other federal agency’s authority. Applicants should clearly identify the other federal agency’s authority as part of their Project Narrative and should identify the other federal agency’s work and corresponding costs in the Project Narrative and Budget.