USIA GRANTS.

SEC. 212. USIA GRANTS. (a) Competitive Grant Procedures.—Except as provided in subsection (b), the United States Information Agency shall work to achieve full and open competition in the award of grants. (b) Exceptions.—The United States Information Agency may award a grant under procedures other than competitive procedures when— (1) a grant is made under the Mutual Educational and Cultural Exchange Act of 1961 (commonly known as the Fulbright- Hays Act) or any statute which expressly authorizes or requires that a grant be made with a specified entity; 105 STAT. 696 (2) the terms of an international agreement or treaty between the United States Government and a foreign government or international organization have the effect of requiring the use of procedures other than competitive procedures; (3) a recipient organization has developed particular expertise in the planning and administration of longstanding exchange programs important to United States foreign policy; or (4) introducing competition would increase costs. (c) Compliance With Grant Guidelines.— (1) After October 1, 1991, grants awarded by the United States Information Agency shall substantially comply with United States Information Agency grant guidelines and applicable circulars of the Office of Management and Budget. (2) If the Agency determines that a grantee has not satisfied the requirement of paragraph (1), the United States Information Agency shall notify the grantee of the suspension of payments under a p-ant unless compliance is achieved within 90 days of such notice. (3) The Agency shall suspend payments under any grant which remains in noncompliance 90 days after notification under paragraph (2). (d) Report to Congress.—Not later than 90 days after the date of the enactment of this Act, the Director of the United States Information Agency shall submit a detailed report to the Committee on Foreign Relations of the Senate and the Committee on Foreign Affairs of the House of Representatives on United States Information Agency action to comply with subsection (a).