2 CFR 200.205 sets one requirement for organizations that receive federal grants and cooperative agreements. Applies when you build your application and budget, and to every cost you charge after award.
Discretionary awards must pass an agency merit review whose process and criteria must be described or incorporated by reference in the funding opportunity. A competitive application must therefore respond, point by point, to the published merit review criteria and their weightings.
Application to a discretionary (competed) funding opportunity.
Upload the funding notice and your draft budget or narrative, and ask. Grantable answers from its compliance database of federal, agency and state rules, with citations.
§ 200.205 Federal agency review of merit of proposals.
Unless prohibited by Federal statute, the Federal agency must design and execute a merit review process of applications for discretionary Federal awards. The objective of a merit review process is to select recipients most likely to be successful in delivering results based on the program objectives as outlined in section § 200.202. A merit review is an objective process of evaluating Federal award applications in accordance with the written standards of the Federal agency. These standards should identify the number of people the agency requires to participate in the merit review process and provide opportunities for a diverse group of participants, including those representing underserved communities. The merit review process explained in this section must be described or incorporated by reference in the applicable funding opportunity. See appendix I to this part. See also § 200.204. The Federal agency must also periodically review its merit review process.
Source: eCFR · checked Sep 17, 2026
Discretionary awards must pass an agency merit review whose process and criteria must be described or incorporated by reference in the funding opportunity. A competitive application must therefore respond, point by point, to the published merit review criteria and their weightings.
Application to a discretionary (competed) funding opportunity.
Plain-English summaries for information only, not legal advice. Always check the regulation text, your award terms and your agency’s guidance.