University of California

Costing Policy & Analysis

Research Administration Office

Memo
Operating Guidance

No. 96-05
February 20,1996

CONTRACT AND GRANT OFFICERS (CAMPUS AND LAB)
VICE CHANCELLORS-ADMINISTRATION

Subject: Transportation Research Board Liability Statement

The Transportation Research Board of the National Research Council (TRB/NRC), under the National Academy of Sciences (NAS), requires that all proposals include a Liability Statement which would make The Regents liable for the actions of third parties. Under Standing Order 100.4(dd)(9), the assumption of third party Iiability requires approval by The Regents. Therefore, every proposal to the NRC had to be submitted for approval by The Regents prior to the acceptance of a NRC award.

On November 16, 1995, The Regents approved an item granting the President blanket authorization to approve all NRC Liability Statements, and on January 19, 1996, this authority was further delegated to all Chancellors, Laboratory Directors, and Senior Vice President Kennedy (Enclosure 1). Consequently, NRC proposals no longer require Regental approval, and can be signed by individual campuses provided no more than $5,000,000 per year in direct costs are requested.

The item approved by The Regents (Enclosure 2), requires campuses to attempt to reduce the University's Iiability by: (1) negotiating appropriate contractual provisions; (2) asking subcontractors to indemnify The Regents and NAS, and including both as additional insureds on their insurance policies; and (3) coordinating with the campus Risk Management Office.

The delegation of January 19, 1996 can be further delegated to campus Contract and Grant Officers.

Refer: Lourdes G. DeMattos, (510) 987-9850, 1ourdes.demattos@ucop.edu

Subject Index: 02, 21
Organization Index: G-070

David F. Mears
Director
Research Administration Office

Enclosures

cc: Campus Risk Managers


Enclosure I

DA 2053

OFFICE OF THE PRESIDENT
300 Lakeside Drive
Oakland, California 94612-3550
Phone: (510) 987-9074
Fax: (510) 987-9086

January19, 1996

CHANCELLORS
LABORATORY DIRECTORS
SENIOR VICE PRESIDENT-BUSINESS AND FINANCE

Delegation of Authority--Liability Statement. Transportation Research Board/National Research Council

At the November 17, 1995 meeting, The Regents granted the President blanket authorization to execute a Transportation Research Board/National Research Council (TRB/NRC) Liability Statement which requires assumption by the University of third-party Iiability, action which is restricted to The Regents under Standing Order 100A(dd)(9).

Effective immediately, you are authorized to solicit and accept or execute any grants or contracts containing the TRB/NRC Liability Statement, subject to the terms of the November 17, 1995 Regental authorization, a copy of which is attached.

Any redelegation of this authority shall be in writing, with copies to the Senior Vice President--Business and Finance, the Special Assistant--Coordination & Review, the General Counsel and Vice President for Legal Affairs, and the Secretary of The Regents.

Richard C. Atkinson

Attachment

cc:
Members, President's Cabinet
Executive Director Feuerborn
Special Assistant Gardner
General Counsel and Vice President Hoist
Secretary Trivette


Enclosure 2

501 E

COMMITTEE ON FINANCE

November 16, 1995

E. LIABILITY STATEMENT. TRANSPORTATION RESEARCH BOARD/NATIONAL RESEARCH COUNCIL

The President recommends that the Committee on Finance recommend to The Regents that the President be given blanket authorization to execute a Transportation Research Board/National

Research Council Liability Statement which requires assumption by the University of third-party liability, action which is restricted to The Regents under Standing Order 100.4(dd)(9).

The Statement is required by the National Research Council in the submission process for all contract proposals for research.

BACKGROUND

In the last twelve months, campuses have prepared and submitted various proposals to the Transportation Research Board of the National Research Council (TRB/NRC), a part of the National Academy of Sciences (NAS). Each proposal has separately required Regental approval since TRB/NRC requires (per NAS regulations) that The Regents sign a Liability Statement that may result in the assumption of Iiability by the University for acts of NAS and any other non-University entities and persons for the work undertaken by the University in the proposed research. TRB/NRC has refused all requests from many higher education institutions to modify the terms and conditions to delete possible assumption of unwanted liability and would have rejected any proposal that did not include a signed Liability Statement.

It is likely that the University will continue to submit occasional proposals to TRB/NRC, which will include acceptance of the Liability Statement. In the interest of administrative facility, it is proposed that The Regents grant the President blanket authorization to sign the TRB/NRC Liability Statement, with the option to redelegate this authorization to Chancellors.

Campuses would be required to attempt to reduce the University's potential risk for subcontractors' liability by negotiating appropriate contractual relationships and asking the subcontractors to (1) indemnify The Regents and NAS against such liability and (2) name The Regents and NAS as additional insureds on their insurance policies. Coordination ,with the campus Risk Management Office would also be required for risk assessment and action recommendations.


DA 2053

Approved

COMMITTEE ON FINANCE

November 17, 1995

TO THE REGENTS OF THE UNIVERSITY OF CALIFORNIA

E. Liability Statement, Transportation Research Board/National Research Council

The Committee recommends that the President be given blanket authorization to execute a Transportation Research Board/National Research Council Liability Statement which requires assumption by the University of third-party liability, action which is restricted to The Regents under Standing Order 100.4{dd)(9).