((a)) ** .—** Notwithstanding any other provision of law, the United States Coast Guard Academy may compete for and accept Federal, State, or other educational research grants, subject to the following limitations:

((1)) No award may be accepted for the acquisition or construction of facilities.

((2)) No award may be accepted for the routine functions of the Academy.

((b))

((1)) ** .—** The Commandant may—

((A)) enter into a contract, cooperative agreement, lease, or licensing agreement with a qualified organization;

((B)) allow a qualified organization to use, at no cost, personal property of the Coast Guard; and

((C)) notwithstanding section 504, accept funds, supplies, and services from a qualified organization.

((2)) ** .—** Notwithstanding chapter 65 of title 31 and sections 3201 through 3205 of title 10, the Commandant may enter into a contract or cooperative agreement under paragraph (1)(A) on a sole-source basis.

((3)) ** .—** The Commandant shall ensure that contributions under this subsection do not—

((A)) reflect unfavorably on the ability of the Coast Guard, any of its employees, or any member of the armed forces to carry out any responsibility or duty in a fair and objective manner; or

((B)) compromise the integrity or appearance of integrity of any program of the Coast Guard, or any individual involved in such a program.

((4)) ** .—** For purposes of this subsection, employees or personnel of a qualified organization shall not be employees of the United States.

((5)) ** .—** In this subsection the term “qualified organization” means an organization—

((A)) described under section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of that Code; and

((B)) established by the Coast Guard Academy Alumni Association solely for the purpose of supporting academic research and applying for and administering Federal, State, or other educational research grants on behalf of the Coast Guard Academy.