42 U.S.C. § 12783 — Conditions of contracts

(a) Eligible organizations: As much as practical, the Secretary must carry out this part through contracts with (1) a participating jurisdiction or one of its agencies; (2) a public-purpose organization set up under state or local law and answerable to the jurisdiction's chief elected official; (3) an agency or authority set up by two or more jurisdictions together; (4) a national or regional nonprofit organization made up mostly of entities or officials that qualify under (1), (2), or (3); or (5) a professional or technical services company that has shown it can provide these services. (b) Contract terms: Contracts under this part cannot run longer than 3 years, and cannot provide more than 20% of the contracting organization's operating budget in any one year. Within one fiscal year, contracts with any single organization cannot total more than 40% of the funds appropriated for this part that year.