In grants management, what does the term Federal Agency refer to?

In grants management, the term "Federal Agency" specifically refers to an agency as defined in 5 U.S.C. 551(1). This definition encompasses various governmental entities created by statute or established by the President and includes executive departments, independent establishments, and other organizations of the Federal Government.

Understanding this definition is crucial because it establishes the legal framework and responsibilities of Federal Agencies when it comes to grants. They are accountable for overseeing the distribution of federal funds, ensuring compliance with federal regulations, and managing the grant lifecycle, including application, award, monitoring, and closeout processes.

The other options do not accurately represent the term "Federal Agency." An organization that awards grants to individuals could be a federal agency, but this is too broad and does not capture the specific legal definition. A private company contracting with the government describes a different entity altogether and does not fall under the federal agency category. Similarly, a local government body operates at a different governmental level and is not classified as a federal agency. Thus, the correct answer is rooted in the precise legal definition found within U.S. law.