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1 Receivin g the Award When the Award Arrives Module 7
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Receiving the Award
Receiving the AwardWhen the Award Arrives
Module 7
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Office of Sponsored Programs Contact Information
Director
Jeanne Wicks 472-1825 [email protected]
Associate Director
Suzan Lund 472-1930 [email protected]
Assistant Directors
Deb Arent 472-6327 [email protected]
Mike Behne 472-6323 [email protected]
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Office of Sponsored Programs Contact Information
Grants Coordinators
Nancy Becker 472-3601 [email protected]
Shelly Cutsor 472-2247 [email protected]
Julie Poykko-Post 472-6174 [email protected]
Contracts Coordinator
Andy Budell 472-3759 [email protected]
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Office of Sponsored Programs Contact Information312 N 14th StreetAlexander Bldg West Lincoln, NE 68588-0430Ph 402-472-3171Fax 402-472-9323http://research.unl.edu/sp1
Official Applicant/Recipient Entity:The Board of Regents of the University of Nebraska for the University of Nebraska-Lincolnuse same address as above
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Negotiation & Signature Authority Sponsored Programs has authority for negotiation and acceptance of grants, cooperative agreements and contracts.
Signature authority is delegated by the Board of Regents (http://bf.unl.edu/bfpolicy/SignatureAuthority.pdf)
Note: PIs, deans, chairs and others are not authorized to negotiate or sign agreements or any other sponsored programs document on behalf of the Board of Regents of the University of Nebraska.
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Funding Mechanisms
• Grants
• Cooperative Agreements
• Contracts
• Incoming Subawards – can come in any of these forms – sometimes come in as Purchase Order
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Financial assistance for a project that will benefit the public. There is no substantial involvement between the sponsor and the recipient during performance. Federal grants are governed by Office of Management and Budget (OMB) circulars and Code of Federal Regulations (CFR).
Grant
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Grants• Financial Assistance Award (CFDA)• Funding Opportunity Announcement (FOA),
Broad Agency Announcements (BAA), Program Announcement/Solicitation (PA)
• Made for stated purpose (proposal/award)• Made for stated period of time (project period)• Made to an organization in the name of a
Principal Investigator (PI)• No substantial programmatic involvement by
awarding agency
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Grants• Funding may be annual, multi-year or for entire
budget period• Minimum of limiting conditions (governed by
OMB Circulars A-21 and A-110)
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Financial assistance for a project that will benefit the public. Substantial involvement is expected between the government agency and the recipient during performance. Federal cooperative agreements are governed by OMB and CFR regulations.
Cooperative Agreement
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Cooperative Agreements• Financial Assistance Award (CFDA)• Funding Opportunity Announcement (FOA),
Broad Agency Announcements (BAA), Program Announcement/Solicitation (PA)
• Made for stated purpose usually developed in conjunction with the sponsor (scope of work)
• Made for stated period of time (project period)• Made to an organization in the name of a
Principal Investigator (PI)• Substantial programmatic involvement by
awarding agency
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Cooperative Agreements• Agencies have substantial freedom to structure
the terms and conditions (T&Cs)• Often differ from standard assistance regulations
and may even resemble acquisition regulations
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An agreement, enforceable by law, between two or more competent parties, to do or not do something not prohibited by law, for a legal consideration.
FAR 2.101 defines a contract as a mutually binding legal relationship that obligates the seller to furnish supplies or services and the buyer to pay for them.
Contract
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Contracts
• Request for Proposal (RFP) and Invitation for Bid (IFB)
• Handled as a procurement or acquisition• Terms are usually detailed and specific• Activities frequently dictated by sponsor (buyer)• Scope of work dictated by sponsor with less
latitude to modify it• Depending on contract type, may not be able to
modify line-item expenditures
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Contracts
• Funding may be incremental, tied to set deliverables or schedules
• final payment (e.g. 10%) may be held until “acceptance” of deliverables
• Federal process governed by Federal Acquisition Regulations (FAR)
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Contracts - Research & Development
• Purpose is to advance scientific and technical knowledge and apply that knowledge to the extent necessary to achieve agency and national goals.
• Focus is on the Statement of Work (SOW)
• Regulations found at FAR Part 35
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Contract TypesCost-Reimbursement (CRC)
• Pays allowable costs that are expensed and invoiced
• Contractor must have adequate accounting system to track applicable costs
Fixed Price (FPC)• Price-based, not cost-based• Price defined in contract (by unit or deliverable)• May be firm or adjustable
Purchase Orders
• Contract becomes effective upon written acceptance or actual performance
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Contracts – Cost Reimbursable vs. Fixed Price • Cost reimbursable contracts paid on regular billing
intervals or payment schedule – only costs incurred will be paid – excess balance returned to sponsor
• Fixed-price contracts pay a flat amount whether or not costs are covered – any excess balance is retained
• UNL requires a substantial up-front payment on industry contracts regardless of the type (usually 75-100%)
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Contracts – Fixed Price Issues
• UNL must fully recover costs in performing services and cannot generate profit or be in deficit
• Even if costs are found to be underestimated, UNL must still perform full SOW promised and loses money
• If costs are significantly overestimated, residual balances at project end may be subject to UBIT and affect UNL’s tax status
• UBIT is Unrelated Business Income Tax – UNL’s tax status is based on its non-profit related mission (education, research and community outreach)
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Contracts – Fixed Price Issues• Residual balances can also violate state or federal
regulations on non-profit status, or on cost-accounting standards
• Salaries for staff working on the project but not charged to the account in proportion to the effort expended may not comply with OMB Circular A-21 effort reporting requirements
• Must track all effort through PARs • Account may not pass an audit – costs could be
disallowed and required to be returned to the sponsor, possibly with penalty fees
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What is FAR?
• Federal Acquisitions Regulations (FAR)
• System of uniform policies and procedures governing the acquisition (purchasing) for all federal agencies
• Procedures manual for federal agencies to acquire goods and services, including research
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Location of the FAR
• The FAR is codified at Title 48 of the Code of Federal Regulations (CFR) and consists of 63 chapters.
• The components consist of:– Federal Acquisition Regulations (Chapter 1)
– Agency Specific Supplemental Regulations (Chapters 2-63)
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Path to the FAR
Code of Federal Regulations
US CodePublic Law
Federal Acquisition Regulations
Federal Agency Supplements
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Contracting under the FAR
• Begin by determining the nature of contract:– Type
• Cost-Reimbursement• Fixed-Price• Time & Material/Labor Hour• Indefinite Delivery/Indefinite Quantity• Basic Ordering
– Purpose• Construction• Research & Development• Supply• Service
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Export ControlsWhat are Export Controls?
• Restrictions on shipments outside of the US and/orand/or• Restrictions on the transfer of information and/or
technology (either outside or inside the US)– 'deemed' exports
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Export ControlsHow are Export Controls Regulated?
• Department of State (International Traffic in Arms Regulations [ITAR]) - Primarily Military and Space related items
• Department of Commerce (Export Administration Regulations [EAR]) - dual-use items
• Department of Treasury - imposes sanctions on foreign countries prohibiting exports
• Other government agencies (i.e. USDA - fungi, etc)
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Export Controls
Fundamental Research
• Basic and applied research in science and engineering, the results of which ordinarily are published and shared broadly within the scientific community
• Excluded from Export Control Regulations (Fundamental Research Exclusion)
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Export Controls
Fundamental Research
• Differs from proprietary research and industrial development, design, production, and product utilization, the results of which ordinarily are restricted for proprietary or national security reasons.
• The Fundamental Research Exclusion applies only to the dissemination of research data and information, not to the transmission of material goods.
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Export Controls
• The Fundamental Research Exclusion is DESTROYED IF:
The university accepts any contract clause that
– Forbids the participation of foreign persons
– Gives the sponsor a right to approve publications resulting from the research; or
– Otherwise operates to restrict participation in research and/or access to and disclosure of research results.
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Export Controls
• “Side deals” between a PI and Sponsor to comply with such requirements, even though not stated in the research contract, may destroy the fundamental research exclusion.
• Civil and/or Criminal penalties for export control violations can result for both the PI and the University and may also violate university policies on openness in research.
• A separate Export Control NURAMP course is in preparation for the upcoming fall or spring session.
• UNL’s Export Control website: http://research.unl.edu/orr/exportcontrol.shtml
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Contracts & OMB Circulars• OMB A-21 (2 CFR 220) – Cost Principles
– Incorporated by FAR 31.3, allowable costs
• OMB A-110 (2 CFR 215) – Uniform Admin Requirements– Sets standards for grants & cooperative agreements
– Specific actions not applicable to contracts (i.e. expanded authorities)
– FAR replaces this circular in contracts
• OMB A-133 – Audit Requirements– incorporated by FAR 52.215-02, Alt.II
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Major Differences between Contracts & GrantsContracts• Often RFP solicitations• Need for specific
service/product• Schedule technical &
expenditure reports and/or other deliverables
• Payment often tied to deliverables
• Numerous special terms and conditions
• Close control on budget • Usually audited• Can be cancelled for default
Grants• Often standard
guidelines/proposal kits• Support for proposed work in
general programmatic areas - need to advance knowledge
• Requires technical progress reports
• Payments may be in advance, by schedule, or upon completion
• General terms and conditions• Flexible budget control• Some audited• Almost never cancelled
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Pre-award awarding processAward arrives in OSP and Pre-award Coordinator:
• Reviews award terms & conditions alongside original proposal documents– Verifies routing form fully signed
• Reviews award budget against proposed budget– Verifies any cost share commitments documented
• Verifies subaward documents complete – Letter of commitment– contact information– budget and justification– detailed work statement
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Pre-award awarding process• Verifies compliance requirements are met, as
necessary– IRB approvals obtained– IACUC approvals obtained– Biosafety approvals obtained– DOI process complete
• Submits to Post-award for creation of WBS and ongoing financial management
• NOTE: PARs from previous awards must be current before WBS is established.
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Useful Web sites
OMB CircularsOMB Circulars: http://www.omb.gov/circulars
CFRCFR: http://www.access.gpo.gov/nara/cfr/cfr-table-search.html
FARFAR: http://www.arnet.gov/far/ or http://farsite.hill.af.mil/vffara.htm
FDPFDP: http://www.thefdp.org
CFDACFDA: http://12.46.245.173/cfda/cfda.html
MIT Export ControlsMIT Export Controls: http://web.mit.edu/osp/www/Export_Controls/index.htm
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