34 C.F.R. § 606.20
(a) The Secretary evaluates an application on the basis of the criteria in—
(c)
(2) The Secretary considers funding an application for a development grant that—
(ii) In the case of an application for a cooperative arrangement grant, demonstrates that the grant will enable each eligible participant to meet the goals and objectives of its comprehensive development plan better and at a lower cost than if each eligible participant were funded individually.
(Authority: 20 U.S.C. 1101 et seq.)
[64 FR 70147, Dec. 15, 1999, as amended at 70 FR 13373, Mar. 21, 2005]