Megan Richards 6FP - Contract 18 March 2003 Sixth Framework Programme CONTRACTS

Megan Richards 6FP - Contract 18 March 2003

Sixth Framework Programme

CONTRACTS


Based on Rules for Participation and : Reduction in the number of contracts Collective approach Greater flexibility Greater autonomy for participants

General Contractual Principles


Core contractstandard text (completed with project data)

Annex Ithe “project” (technical tasks - work to be carried out)

Annex IIgeneral conditions (standard, applicable to every instrument)

Annex IIIinstrument specific provisions (variable per instrument)

Contract Structure


Supplemented by supplementary information and guidance notes when necessary

Financial (including auditing, cost methodologies) Negotiation (including technical annex) Consortium agreement (including IPR) Project management (including reporting)

plus guidelines imposed by Rules for Participation Guidelines on Evaluation and Selection

procedures

Guidelines


Regulates internal organisation and management of consortium (Commission is not a party)

New - Compulsory unless exempted by the call for proposals

Non binding guidelines provided by the Commission

After or (preferably) before signing the contract - some decisions must be made by the participants before signature of contract (e.g. exclusion of pre-existing know-how)

Consortium Agreement


Signature and entry into force:

Contractual link of all contractors with the Commission (equal status)New - Contract enters into force upon signature of coordinator and Commission

Coordinator must ensure other contractors sign within delays (established in contract)

Distribution of advance to other contractors possible after minimum requirements met

Project begins on date established in the contract

Core contract


Contractors identified in contract Evolution of consortium possible where one

or more does not sign Community financial contribution and total

estimated costs Reporting and payment modalities Amendments - tacit for approval of technical

reports and for consortium changes Special conditions


Performance obligations - consortium, contractors, coordinator, Commission

Force MajeureSuspension and prolongation - clear

provisions for possibility to suspend and prolong project

Termination - simple without fault or breach and with breach

Subcontracting - if in Annex I approved

General Conditions


Technical Responsibility (applicable to all instruments) Financial Responsibility - New

Used as a last resortLimited in proportion to the participant’s share to

the project, up to the total amount they are entitled to receiveExceptions:

International Organisations, public bodies or entities guaranteed by MS/AS: solely responsible for their own debts specific actions for SME’s and fellowships and, when duly justified, specific support actions

Collective Responsibility of Contractors


New - Cost categories not requiredCosts must be :

actual, economic and necessary for the project

incurred during the duration of the projectrecorded in the accounts (or third parties)follow contractors own accounting rules

and must exclude indirect taxes, duties, interests, costs reimbursed in respect of another Community project, and not give rise to profit

Audit certificates by external auditor for each partner, each year for IP/NoE

for public bodies - competent public officer

Costs


FC: actual direct and indirect costs contractors calculate indirect costs according to their own

accounting rules

New - FCF (variant of FC): actual direct costs + flat rate for indirect costs (20%)

limited to SMEs and organisations eligible for AC

AC: actual additional direct costs + flat rate for indirect costs (20%)

optional for non-commercial or non-profit organisations , international organisations which cannot distinguish between direct and indirect costs - obligatory for physical persons

Cost Reporting Models


Periodic advances (pre-financing) initial advance (pre-financing) upon signature by

Commission and coordinator or when minimum number of contractors have acceded or when all contractors have signed

yearly for IP and NoE (specified in the contract for other instruments)

up to 85% (80% for instruments without collective liability)

EC contribution depends on : contractor’s cost model (AC, FC, FCF) type of activity (research, demonstration,

management, training, etc) submission of audit certificate receipts

Payments


INTEGRATED PROJECTS Reimbursement Rates

Maximum Reimbursement rates of Costs

Research & technological development /

Innovation

Demonstration TrainingManagement

of the consortium

FC / FCFCONTRACTORS 50% 35% 100%

100%up to 7% of the contribution

ACCONTRACTORS 100% 100% 100%

100%up to 7% of the contribution

(1)

(1) Contractors working on the additional cost model may also charge the cost of permanent personel to their contractors, to the extent that they can be identified


Maximum reimbursement rates of

eligible costs

Research and technological

development or innovation activities

Demonstration activities Training activities Management of the consortium activities

Other specific activities (*)

Network of excellence100%

(up to 7% of the contribution)(AC : eligible direct costs)

100%

Integrated project FC/FCF : 50%AC : 100%

FC/FCF : 35%AC : 100%

100%100%


Specific targeted research or innovation project

FC/FCF : 50%AC : 100%

FC/FCF : 35%AC : 100%

100%(up to 7% of the contribution)

(AC : eligible direct costs)

Specific research project for SMEs

FC/FCF : 50%AC : 100%

100%(for collective research only)


(AC : eligible direct costs)

Integrated infrastructures initiative

FC/FCF : 50%AC : 100%

FC/FCF : 35%AC : 100%


(AC : eligible direct costs)100%

Coordination action 100%(FC indirect costs : f lat rate(**))


(AC : eligible direct costs)(FC indirect costs : flat rate(**))

100%(FC indirect costs : f lat rate(**))

Specific support action100%


(FC indirect costs : flat rate(**))

100%(FC indirect costs : f lat rate(**))

(*): Other specific activities means: - for Netw ork of Excellence : Joint Programme of Activities, except management of the consortium activities.- for Integrated infrastructures initiative: any "specif ic activity" covered by Annex I, including transnational access to infrastructures- for Coordination Action: Coordination activities, except management of the consortium activities- for Specif ic support action: any "specif ic activity" covered by Annex I, including transnational access to infrastructures

(**): Flat rate for FC indirect costs : 20% of all their eligible direct costs minus the eligible direct costs of sub-contracts.

Maximum reimbursement rates, instruments, activities and cost

models


Controls Reports

Periodic activity reports (including plan for dissemination and use)

Periodic financial reports Supplementary reports if foreseen (in Annex I or III) Final reports covering the whole project

Audits Scientific, technological, and financial audits New - annual monitoring by Commission with

external experts (particularly for IP and NoE) Ethical or other reviews Contractors right to refuse particular expert

Audits and Controls


Financial irregularity is grounds for exclusion from evaluation or selection procedure

Violation of fundamental ethical principles is grounds for exclusion from evaluation or selection procedure

Recovery decisions (article 256 EC Treaty) Other sanctions in contract (liquidated

damages for overclaims)

Sanctions


Ownership Knowledge created under indirect actions = contractors Joint ownership where joint generation Any transfer of ownership must comply with contractual

obligations (access rights, etc) Protection

Knowledge capable of industrial or commercial application to be protected

Commission may protect (where not envisaged by contractors) Owner of knowledge may publish as long as no impact on

protection Prior notice of publication to Commission and other contractors

Rules for Dissemination and Use


Use and Dissemination Contractors shall use their knowledge

NEW - not all the knowledge from the project Dissemination required if not adversely

affecting protection or use, Commission may disseminate if contractors do not



Access RightsBasic Principles

Granted on request and may be conditioned by specific agreements regarding confidentiality and purpose

Commission may object to grant of access to third party, particularly if not established in MS or AS

NEW - Pre-existing know-how may be specifically excluded



Access Rights

Access for Execution of ActionAccess granted to knowledge and pre-existing

know-how when needed to carry out their own work on the project (royalty-free unless other terms agreed prior to contract signature)



Access Rights

Access for UseAccess granted to knowledge and pre-existing know-how when needed to use their own knowledge (royalty-free unless other terms agreed prior to contract signature) Access may be requested for 2 years after end of project or after termination of contractor’s participation



System of Access System of Access RightsRights

Access rights to pre-existing know-how

Access rights to knowledge

If a participant needs them for carrying out its own work under the projectFor carrying

out the projectRoyalty-free

unless otherwise agreed before signing the contract

Royalty-free

If a participant needs them for using its own knowledge

For use(exploitation +

further research)Non-discriminatory conditions

to be agreed

Royalty-free unless otherwise agreed

before contract’s signature

Possibility to exclude specific pre-existing know-how before EC

contract’s signature (or before entry of a new participant)


Contract, Consortium agreement checklist :http://europa.eu.int/comm/research/fp6/working -groups/model-contract/index_en.html

Web site

Documents

Megan Richards 6FP - Contract 18 March 2003 Sixth Framework Programme CONTRACTS