University of California
Office of the President

Senior Vice-President
Business and Finance

Costing Policy & Analysis
Research Administration Office

Memo
Operating
Guidance

No. 98-09
November 3, 1998


CONTRACT AND GRANT OFFICERS*

VICE CHANCELLORS--ADMINISTRATION

 

Subject: Revised Federal Demonstration Partnership Terms Dated July 1, 1997 and Agency-Specific Implementations as of October 1, 1998


Federal Demonstration Partnership (FDP) III published its last revision of its General Terms and Conditions on July 1, 1997. Since that time, several FDP member agencies have revised their agency-specific requirements. The revised terms dated July 1, 1997 as well as any agency-specific requirements are accessible via the NSF Web page at: http://www.nsf.gov/home/grants/grants_fdp.htm or through the RAO home page at: http://www.ucop.edu/raohome/. 

Modifications to the FDP General Terms and Conditions as of July 1, 1997:

Article 2. f., Allowable Costs and Prior Approvals, has a new sentence authorizing the use of unrecovered indirect costs as part of cost sharing unless otherwise specified in an award.

Article 2. h. (3), Allocability and Documentation Standards, is now also applicable to National Institutes of Health grants. A new sentence was added to state that costs should be allocated among two or more projects in proportion to the benefit if "that can be determined without undue effort or cost." If this is not possible, "costs may be allocated or transferred to benefited projects on any reasonable basis…"

Article 7., Financial Reports, was revised so that only the Federal Cash Transactions Report is required to be submitted 15 days following the end of each funding quarter.

Modifications to Agency-Specific Terms and Conditions:

Several agencies have made changes to their agency-specific terms and conditions.

Air Force Office of Scientific Research (4/97) now requires prior written approval for a no-cost time extension. The agency must be notified in writing at least 30 days before the award expires.

Army Research Office (9/96) deleted prior approval requirements for travel rebudgeting and line-item transfers. The threshold for approving an equipment purchase not in the budget was raised to $5,000.

Department of Energy changed the requirement for approval of sole source contracting above $25,000 to making procurement documents available upon request.

National Aeronautics and Space Administration (9/96) has eliminated its prior approval for purchasing equipment above $25,000.

National Science Foundation (10/98) has added information on electronic submission of:

The new annual progress and annual and final project reports available via the NSF Fastlane project reporting system are significantly different and more complex than the previous NSF reports. Additional Requirement No. 1 c. --the Annual Project Report Submissions for NSF Standard Grants, changes the due date of project reports from 90 days after the anniversary of the effective date of the grant to three months prior to the anniversary date of the grant.

Additional Requirement No. 2 -- Cost Sharing and Cost Sharing Records, b. Specific Cost Sharing Requirements, was amended to add important information on reporting cost sharing when cost sharing will not equal the amount identified in line M of the NSF award budget. A consultant services daily rate is provided in Additional Requirement No. 3. No. 6 incorporates Important Notice No. 120, Year 2000 Computer Problem.

Office of Naval Research (10/98) has deleted its requirement for prior approval of foreign travel.

The agency-specific terms and conditions that appear on the NSF Web site should be congruent with terms that the individual agencies are currently using in their FDP awards.

Attached to this C&G Memo are two tables, "Special Restrictions on Expenditures Under the FDP" and "Prior pproval Requirements Under the FDP," which replace two similar tables that were distributed with C&G Memo 96-06 (2/27/96).

 

David F. Mears
Director
Research Administration Office

Refer: Samuela A.Evans
(510) 987-9849
Samuela.Evans@ucop.edu

Subject Index: 02, 19
Organization Index: U-115

Enclosures

 

 

SPECIAL RESTRICTIONS ON EXPENDITURES UNDER THE FDP1

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

 

ITEM

ARO DOE NASA NIH2 NSF ONR USDA

All

Others

1. Use of non U.S. flag carriers for air travel except in accordance w/ FDP Art. 17 No No No No No No No No
2. Purchase of real property (FDP Art. 15.e.) No No No No No No No No
3. Pmt. of interest for late payment to a contractor Yes No Yes Yes Yes Yes Yes Yes
4. Pmt. of consultant fee > fed. exec. schedule level IV Yes Yes No Yes No Yes Yes Yes
5. Pmt. of salary at rate > cap N/A N/A N/A No3 N/A N/A N/A N/A
6. Reimburse travel costs to federal employees4 Yes Yes Yes Yes Yes No Yes Yes
7. Purchase of passenger carrying vehicles Yes Yes No Yes Yes Yes Yes Yes
8. Renovation of research space & related costs in accordance w/ FDP Art. 16. Yes Yes Yes Yes If <

$10k		 Yes No Yes
9. Consulting by federal employee that results in extra compensation Yes Yes Yes Yes Yes Yes No Yes
10. IDC rate in subawards greater than rate allowed in prime award Yes Yes Yes Yes Yes Yes No Yes

 

1 In addition to costs specifically unallowable under A-21.

2 See NIH Grants Policy Statement for clarification of allowable and unallowable charges on NIH grants. http://www.nih.gov/grants/policy/nihgps/search_gps.html

3 Cap is $125,000 beginning FY 1992; rates are on an annual basis. Ref: NIH Notice 2/12/98. http://www.nih.gov/grants/guide/notice-files/not98-012.html

4 Employee generally must obtain approval from his/her supervisor. 

PRIOR APPROVAL REQUIREMENTS UNDER THE FDP

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

 

ITEM

AFOSR ARO/

ARDMC		 DOE EPA NASA NIH NSF ONR USDA
1. Relatedness Yes Yes Yes Yes Yes Yes Yes1 Yes Yes
2. Change in scope Yes Yes Yes Yes Yes Yes Yes Yes Yes
3. Change in PI Yes Yes Yes Yes Yes Yes Yes Yes Yes
4. Preaward costs up to 90 days No No No No No No No No No
5. No-cost extension up to one year Yes No No No No No No Yes No
6. Equip. > threshold N/A $5,000 N/A N/A N/A N/A N/A N/A N/A
7. Substantial contracting out of actual research Yes Yes Yes Yes Yes Yes Yes Yes Yes
8. Contracting out to federal agency No No No No No No No No Yes
9. Foreign travel No Yes No No No No No No No
10. Alteration/renovation > threshold No No No No No No $10k No Unallowable
11. Transfer from participant/trainee support categories No No No No No No Yes No No

 

1 Not required when two or more NSF grants are to be related.