Federal Grant and Cooperative Agreement Act

Federal Grant and Cooperative Agreement Act - 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, when no 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, 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.

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 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.