Cooperative agreement is a legal instrument reflecting a relationship between the United States Government and a State, a local government,
or other recipient when –
(1) the principal purpose of the
relationship is to transfer a thing of value to the State, local
government, or other recipient to carry out a public purpose of support
or stimulation authorized by a law of the United States instead of
acquiring (by purchase, lease, or barter) property or services for the
direct benefit or use of the United States Government; and
(2) substantial involvement is expected between the executive agency
and the State, local government, or other recipient when carrying out
the activity contemplated in the agreement.
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