University of California

Office of the President

 

Senior Vice President—

Business and Finance

Memo

Operating

Guidance

 

Research Administration Office

No. 02 - 05


October 22, 2002

 

 

CONTRACT AND GRANT OFFICERS

Subject: Federal Demonstration Partnership Phase IV – Terms and Conditions

The University of California is continuing its membership in the Federal Demonstration Partnership (FDP), with the renewal of the FDP under Phase IV. The term of FDP-IV is October 1, 2002 to September 30, 2008. All ten of the University’s campuses continue their participation in the FDP through the University’s systemwide membership, represented by my office, Research Administration, in the Office of the President. In addition, the Los Angeles campus continues as its own FDP membership.

In the past, some federal agencies have not understood that all University of California campuses are in the FDP under our systemwide membership. All ten of our campuses are listed on the FDP website,

http://thefdp.org/, under "Member Info", http://www.thefdp.org/Phase4/#Listing. Anyone with questions about the scope of our systemwide membership can be referred to this website.

FDP IV General Terms and Conditions:

Two clarifications are made to the FDP General Terms and Conditions, http://www.nsf.gov/pubs/fdp/fdpIV.pdf In Article 25., Revision of budget and program plan, paragraph (c) (1), a sentence is added to clarify that prior approval for pre-award costs "….within a multiple-year project, including any optional years, are not subject to….." the 90-day limitation or federal prior approval.

In Article 33., Federally-owned and exempt property, the word "equipment" is added to the first sentence to clarify that only equipment, and not supplies, acquired by the recipient could vest in the federal government if the award so specifies.

FDP Agency-Specific Terms and Conditions:

Most agency modifications to their specific terms and conditions are minor, such as providing new, detailed information about electronic reporting. There is one prior approval change in the National Institutes of Health agency-specific terms and conditions which is reflected in the new "FDP IV Prior Approval Requirements" chart attached. This revised chart updates the one provided with C&G Operating Guidance Memo 00-11, Revised Federal Demonstration Partnership General Terms and Conditions, dated May 16, 2000 and Agency Implementations, dated July 2000. http://www.ucop.edu/raohome/cgmemos/00-11.html.

Agency changes are summarized below:

Air Force Office of Scientific Research: http://www.nsf.gov/pubs/fdp/afosr02.pdf

AFOSR has deleted Article 23., Delegation of Administration. This article just described administrative duties of the AFOSR Grants Office.

Department of Energy: http://www.nsf.gov/pubs/fdp/doe02.pdf

The Department of Energy (DOE) has added a new Article 8., Reporting, which specifically states that: "Failure to comply with the reporting requirements contained in this award will be considered a material noncompliance with the terms of the award." It continues with warnings of "withholding of future payments, suspension or termination of current award, and withholding of future awards." Technical Reporting, Article 9., provides more details on submitting reports electronically.

NASA: http://www.nsf.gov/pubs/fdp/nasa02.pdf

NASA has added a new Article 17., Buy American Encouragement. This article incorporates the NASA Grants and Cooperative Agreements Handbook Property Standards, sections 1260.131 through 1260.137.

National Institutes of Health: http://www.nsf.gov/pubs/fdp/nih02.pdf

The National Institutes of Health (NIH) now applies FDP terms, with the exception of automatic carryover, to all its grants to FDP institutions. The specific NIH grant mechanisms that require prior approval for carryover are listed in its agency-specific terms and conditions.

"Prior approval is required for carryover of unobligated balances on all P mechanisms except P01s, cooperative agreements (U’s); National Research Service Awards (T’s and F’s); Phase I SBIR & STTR (R43, R41; clinical trials (regardless of mechanism) and awards to individuals.

The agency continues its review of carryforward estimates that exceed 25% of the total award for grants not requiring prior approval of such carryforwards and states that "Automatic carryover authority will be indicated on the Notice of Grant Award." NIH has deleted prior review of rebudgeting of costs between budget categories that exceeds 25% of the total award.

National Science Foundation: http://www.nsf.gov/pubs/fdp/nsf02.pdf

NSF has added a new Article 16., Government Permits and Activities Abroad. This article reminds grantees that they must obtain any "required permits prior to undertaking the proposed activities."

Office of Naval Research: http://www.nsf.gov/pubs/fdp/onr02.pdf

The Office of Naval Research now states that symposia grants will issued via "award instruments containing ONR Educational and Non-Profit Institutions Symposium Grant Terms and Conditions dated October 1999."

USDA Cooperative State Research, Education, and Extension Service: http://www.nsf.gov/pubs/fdp/usda02.pdf

The main change for USDA CSREES is the expansion of FDP coverage to all grants except those for "building and facilities awards or cooperative agreements." Previous CSREES FDP terms were limited to only research and research-related grants.

FDP IV Effective Date:

Phase IV terms are effective for all FDP agencies; new grants to FDP grantees beginning on or after Oct. 1, 2002. While some agencies have indicated that existing FDP III grants will remain under the FDP III terms and conditions until they expire, other agencies will implement FDP IV terms and conditions with amendments or renewals to existing FDP III grants. For a specific agency’s implementation of FDP IV to FDP III grants, see Summary of Agency Implementation Procedures for

Phase IV of the Federal Demonstration Partnership, http://www.nsf.gov/pubs/fdp/implementIV.pdf.

If you currently have a subaward to an institution which has just become an FDP member in Phase IV, the next subaward or amendment to that institution could use the FDP subaward model. If you have subawardees which are no longer FDP members, the next subaward or amendment should reflect this change. You do not have to modify any existing subawards for either case. The FDP demonstration subaward model for subawards to FDP institutions is available at: http://www.rtto.psu.edu/spa/subawards/FDP%20subaward%2010-02.pdf. The FDP demonstration subaward model to non-FDP institutions is at: http://www.rtto.psu.edu/spa/subawards/Non-FDP%20subaward%2010-02.pdf. For OP guidance on subawards, see Operating Guidance Memo 02-03, Guidance on the Classification and Monitoring of Transactions with Third Parties under Federal Grants and Cooperative Agreements, http://www.ucop.edu/raohome/cgmemos/02-03.htm.

Refer: Samuela A. Evans Subject Index: 02. 19

(510) 987-9849 Organization Index: U-115

Samuela.Evans@ucop.edu

 

 

 

David F. Mears

Director, Research Administration

Attachments

FDP IV AGENCY-SPECIFIC PRIOR APPROVAL REQUIREMENTS

Is agency prior approval required if action/cost is not in the approved budget?

ITEM

ARTICLE

AGENCY REQUIREMENTS

1. Relatedness

27. (a) (2)

NO – All Agencies

2. Change in Scope

25. (b) (1)

YES – All Agencies

3. Absence or Change of PI

25. (b) (2)

YES – All Agencies

4. Preaward costs up to 90 days

25. (c) (1)

NO – All Agencies

5. No-cost extension up to one year

25. (c) (2)

NO – EPA; NASA; NSF; AMR; DOE; & USDA. However, EPA requires prior approval if project period would exceed 5 yrs. with extension.

DOE requires prior approval for no-cost time extension & carry forward of unobligated balances when award indicates funding is restricted to one year money.

YES – AFOSR; ARO; ONR; NIH on specified grant mechanisms.

6. Equip > $5,000 threshold

27. (a) (1)

NO – All Agencies except ARO

YES – ARO

7. Substantial contracting out of work

25. (b) (4)

YES – All Agencies

DOE – Notify CO "only when transfer represents more than 25% of effort or a change of scope. (Article 2.)

NIH – "only when transfer represents a change of scope, unless the transfer is to a foreign entity." Must notified NIH in latter case.

USDA – Requires prior written approval when more than 50% of total dollars is subcontracted.

8. Contracting out to Federal Agency

 

NO – All Agencies except USDA.

YES – USDA. Any subcontract to federal agency must have prior written approval.

9. Foreign Travel

 

NO – All Agencies except ARO and EPA.

YES – ARO and EPA – Prior written approval if not identified in budget.

10. Alteration/ Renovation > $25,000

27. (a) (1) (v)

YES – All Agencies

ARO requires approval even if source is funds is cost-sharing.

NIH > $300,000.

USDA – No funds may be used for renovations.

 

11. Budget carryforwards > 25% of total award

NIH & DOE Agency Specifics

NO – All Agencies except NIH. However, DOE requires prior agency approval if award funds are restricted to one year. (Art.2)

YES - NIH - Requires agency review. Specified grant mechanisms named in agency terms require prior approval.

12. Rebudgeting to patient care costs

NIH Agency Specific

NO – All Agencies except NIH.

YES – NIH - Requires agency notification.

13. Rebudgeting of participant/trainee support allowances

Article 25. (c) (7)

NO - All Agencies except NSF.

YES – NSF - Requires written prior approval for reallocation of any participant/trainee support costs.

 

 

 

FDP IV AGENCY-SPECIFIC SPECIAL RESTRICTIONS ON EXPENDITURES

In addition to costs specifically unallowable under A-21

Is the cost allowable without specific approval of the granting agency if the cost benefits the project?

ITEM

ARTICLE

AGENCY REQUIREMENTS

1. Use of non-U.S. flag air travel.

Appendix B – Page 9

NO – All Agencies unless specific conditions in Appendix B, Page 9 are met.

2. Purchase of real property

Article 32.

NO – All Agencies

3. Interest for late payment to contractor

 

YES – All Agencies except DOE.

NO - DOE

4. Payment of consultant fee > Fed. Exec. Level IV

Appendix B. – Page 9

YES – All Agencies except EPA, NASA, and NSF.

NO – EPA, NASA, & NSF

5. Salary payment > salary cap.

NIHGPS – Part II.

YES – All Agencies except NIH.

NO – NIH

6. Purchase of dogs/cats for research

Appendix B. p. 14

YES – All Agencies except AMR.

NO – AMR Article 13. If restricted in award document.