10. What would be considered “Acquisition of Service” as a traditional Section 5310 project and eligible for 80/20 percent matching funding?

Acquisition of service occurs in the course of a procurement action resulting in a contract. Generally speaking, a contractor provides service at the request and direction of the designated recipient or subrecipient. The designated recipient or subrecipient establishes the requirements of the service to be performed, such as days, hours, routes, geographic coverage, etc. There is a difference between this contractual relationship and that of a traditional subrecipient relationship. A traditional subrecipient relationship exist when the designated recipient selects an organization such as a nonprofit to provide a service, but the nonprofit determines the characteristics of the service to be provided.