What’s a grant, What’s a contract; An introduction to Sponsored Programs

Jan 6, 2011

Sponsored Programs

• Vincent (Bo) A. Bogdanski• Office of Sponsored Programs

• Colorado State University

• bo.bogdanski@colostate.edu

• 970 491 5574

Why are you here?

• Heard there would be good food

• Prepare for cocktail party with professors

• Decided three hours here was better than three hours shopping

• Don’t have a life

Sponsored Programs

• Sponsored programs are projects supported by non-university (external) funds that are awarded as a result of an application submitted to a potential sponsor by the institution on behalf of a faculty or staff member. 

Question?

• Are all Sponsored Programs initiated by the Federal government?

Sponsored Programs (some indicators)

• Formal sponsor application guidelines;

• Restrictions on the use of funds;

• Specific and limited program period;

• Specified performance or outcomes;

• Specified use of program outcomes or data;

• Required fiscal and/or programmatic reports. 

Sponsored Programs are not:

• Direct payments to individuals, such as faculty consulting, honorarium and sabbatical support;

• Student financial aid and scholarship (except through training award);

• Gifts and bequests to the university;

• Donations of equipment or property.

 

Question?

• Can there be a sponsored program with internal institution funds?

The Process

• Proposal

• Negotiation

• Award

• The work

• Closeout

Agency Specific Guides (Grants and Cooperative Agreements)

• Broad Area Announcement, BAA

• Request for Proposal, RFP

• Request for Quotes, RFQ

• Solicitation

• Unsolicited Proposal

The proposal

• A written submission

• The science or work

• Budget

• Specified time period

• Specific proposal requirements

• Terms and conditions

Question?

• Who can sign a proposal?

OMB Circular A-110

• Assistance Awards only

• Sets maximum allowable conditions

• Budget revisions

• Cost sharing defined

• Defines property disposition and handling

• Technical and financial reporting

OMB Circular A-110

• Assistance Awards only ( A public good)• Standards for consistency and uniformity among

federal agencies for grants and agreements with institutions of higher ed, hospitals, and other non-profits

• Recipients shall apply the provisions of this Circular to subrecipients that are passed through or awarded by the primary recipient, if such subrecipients are covered by this Circular

• Does not apply to contracts administered under procurement laws or regulations

Question?

• Can the for-profit arm of a private company issue a grant or cooperative agreement?

OMB Circular A-110

• Sets maximum allowable conditions

• “Federal awarding agencies shall not impose additional or inconsistent requirements, except as provided in Sections __.4, and __.14 or unless specifically required by Federal statute or executive order”

OMB Circular A-110

• Budget and Budget revisions (Section .25)• Estimate at the time of the proposal• Changes in budget

• Change in scope• Change in key personnel• Absence of PI for three months • 25% increase or decrease in effort• As designated by funding agency

OMB Circular A-110

• Cost sharing defined (Section 23)

• Part of budget

• Within the project period

• Verifiable

• Non-Federal

• Necessary for project

• Allowable under cost principals

Question?

• Which are cost sharing?

• 10% unpaid (by grant) committed effort

• Use of a microscope purchased last year

• Department of Defense project performing similar work

• Christmas party paid from gift funds

• Reimbursed use of personal vehicle

OMB Circular A-110

• Defines property handling and disposition (.30-.37)• Real property • Federal owned property• Equipment• Supplies and expendable equipment• Intangible property

• Intellectual property including copyright

OMB Circular A-110

• Technical and financial reporting (.50-.53)• “performance reports shall not be

required more frequently than quarterly or, less frequently than annually”

• “recipient shall not be required to submit more than the original and two copies of performance (or financial) reports”

OMB Circular A-21

• Cost Principles for Federal Grants and Contracts

• All Federal Agencies that sponsor awards

• A guide for fixed price agreements

OMB Circular A-21

• The four factors• Allocable and;• Allowable and;• Consistent and;• Reasonable

Allocable

• Incurred solely to advance the work under that agreement or

• In proportion to benefit for two or more projects (or accounts)

• Not to fund overruns on other projects

• Not for “reasons of convenience”

Question

• Are computer purchases allocable?

Allowable

• Section ‘J’ of OMB circular A-21

• Remember

• Allowable is NOT the only criteria

• Allowable does not necessarily mean direct cost

Question?

• Name something that would be unallowable as a expense to a sponsored program.

Consistent

• Disclosure statement (DS-2)• Cost accounting standards• University policy and practice

Reasonable

• Prudent person test

• Under these specific circumstances

• Multiple individuals would probably make the same decision

OMB Circular A-133

• Procurements:

• Subrecipients vs. Vendors

• Subrecipient monitoring

Question?

• Subrecipient or Vendor?

• Colorado College does some research.

• Colorado College does data analysis.

• Colorado College collects samples

Agency Specific Guides (Grants and Cooperative Agreements)

• National Science Foundation (NSF)• Proposal and Award Policies and Procedures

Guide (PAPP) Jan, 2011• Cooperative Agreement General Conditions

(CA-1)• Public Health Service (PHHS/NIH)

• Grant Policy Statement

Agency Specific Guides (Grants and Cooperative Agreements)

• Department of Defense (DOD)• Department of Defense Grant and Agreement

Regulations (DODGAR), DoD 3210.6R• Service Grant General Conditions

• National Aeronautics and Space Administration (NASA)• Grant and Cooperative Agreement Handbook

• Department of Education (DEPT ED)• Education Department General Administrative

Regulations (EDGAR)

FAR Issues and Clauses

• Federal Acquisition Regulation (FAR) Overview• Procurement Awards only• Title 48 of the CFR

• Chapter 1• Chapters 2-99

• Allowable cost and payments • 52.216-7 with Paragraph 31.3 give A-21

FAR Issues and Clauses

• Intellectual Property• Rights in Data• Special Works• Patent clauses

• Security Requirements• Classified work• Publication restrictions

FAR Issues and Clauses

• Stop Work Orders

• Terminations

• Cost and Fund Limitations• Limitation of Cost• Limitation of Funds

FAR Issues and Clauses

• Other issues:• Property clause 52.245-1 with Alt II• Small Business Subcontracting• Certificate of Current Cost or Pricing Data

Other Policies and Issues

• Institutional Signatures

• Representations and Certifications

• Export Control Issues

Other Policies and Issues

• Institutional Review Board, IRB

• Institutional Animal Care and Use Committee, IACUC

• Conflict of Interest/Conflict of Commitment

• Classified, Sensitive and Propriety

• Misconduct in Science

Question?

• Compliance requirement? Which one?

• Survey of CSU employees by Athletic Department

• Use of bees

• Professor’s son owns catering business

• Accusation of plagiarism

Negotiating Federal Awards

• With the Contracting Officer

• With the Program Manager

• With the Principal Investigator

• With your boss

• With other support offices at your University

Budget Issues

• Effort Reporting versus Hours• % of effort• labor hour contract, time and material

• Employment versus Fellowship• Fringe Benefits

• Composition of rate• Actual versus Negotiate

• Consultants, Employees, or Subcontractor• Additional Compensation

Question?

• Can your employee be paid by your institution under a consultant agreement?

• Professor X helps colleague in Department with a Sponsored Program on Saturday. How does the Department compensate?

Budget Issues

• Travel

• Institution policy

• Justification

• Foreign Travel, pre-approval

• Equipment or Supplies

• “fabricated” equipment

Budget Issues

• Tuition and fees• Your policy• Training grant

• Clerical salaries, office supplies, telephone equipment, memberships, postage• Unusual circumstances• Consistent with DS-2

Budget Issues

• Facilities and Administrative costs (F&A)(also known as indirect or overhead)• Not to be confused with fees or profit• These are real and actual costs associated

with the sponsored activity• If not recovered through the sponsored

project agreement, they must be paid by the institution

Question?

• What are the restrictions imposed on Colleges, Department, and PI’s when expending recovered (paid by sponsor) F&A funds?

Post Award Issues

• Limitation of Funds/Limitations of Costs• Start/End Dates• Pre-award spending• No cost Extensions• Options and Special Provisions• Terminations

• For Cause • For Convenience

Post Award Issues

• Changes:

• In scope

• In budget

• Of PI/institution

• In effort (limited to key people)

Reporting Requirements

• Technical

• Frequency and Format

• Financial

• Consistent with accounting procedure

• Frequency

• Spend rates

Reporting Requirements

• Property• Ownership• Government furnished• Frequency

• Patents• Small Business Plan (294 and 295)• Hazardous Substance

Question?

• A PI moves to another University. Can they take all the equipment purchased under different sponsored programs to continue his research at the new University?

The End