Negotiating Federal Awards April 17, 2005

Negotiating Federal Awards Vincent (Bo) A. Bogdanski Assistant Director, Office of Sponsored Projects, University of Utah

Negotiating Federal Awards With the Federal Contracting Officer With the Program Manager With the Principal Investigator With your boss With other support offices at your University

Negotiating Federal Awards A discussion of facts Well defined rules and regulations An interpretation of facts Understanding the rules and regulations

Negotiating Federal Awards Some things can be changed Don’t just accept what’s in a proposal award Know, understand and articulate for proper negotiation

OMB Circular A-110 Assistance Awards only Sets maximum allowable conditions Cost sharing defined Budget revisions Defines property disposition and handling Technical and financial reporting

OMB Circular A-110 Assistance Awards only 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 Agencies are responsible for adopting this language unless different provisions are required by statute or are approved by OMB

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 Cost sharing defined (Section 23) Section.23 defines cost sharing requirements

OMB Circular A-110 Budget revisions (Section.25) (c) items #1-8, sets the maximum requirements for prior approvals (d) – “No other prior approval requirements for specific items may be imposed unless a deviation has been approved by OMB” (e) provides authorization for Federal agencies to apply expanded authorities, at their option

OMB Circular A-110 Defines property disposition and handling ( ) “Federal awarding agencies shall require recipients to observe these standards under awards and shall not impose additional requirements, unless specifically required by Federal statute” “Title to equipment acquired with Federal funds shall vest in the recipient” Section 34(f) provides records requirements Section 34(g) provides disposition instructions

OMB Circular A-110 Technical and financial reporting ( ) “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 Principals for Federal Grants and contracts All Federal Agencies that sponsor awards A guide for fixed price agreements Incorporated in FAR at section 31.3

OMB Circular A-21 The four factors Reasonable Allocable Allowable Consistent

OMB Circular A-21 Consistent Disclosure statement (DS-2) Cost accounting standards Section “J” Travel Policy Equipment Administrative Salaries

FAR Issues and Clauses FAR Overview Procurement Awards only Title 48 of the CFR Chapter 1 Chapters 2-99 Allowable cost and payments paragraph (a) revisions per

FAR Issues and Clauses Intellectual Property Rights in Data Special Works Patent clauses Security Requirements Beware of export control issues Publication restrictions

FAR Issues and Clauses Stop Work Orders Delete, if possible; else, Limit time period If pass-through, limit to federal agency orders only Cost and Fund Limitations Limitation of Cost Limitation of Funds

FAR Issues and Clauses Other issues: Property clauses; and with Alternate I Small Business Subcontracting Certificate of Current Cost or Pricing Data COGR/FDP list of Problem Clauses – help is available

OMB Circular A-133 Procurements: Subrecipients vs. Vendors Subrecipient monitoring

Agency Specific Guides (Grants and Cooperative Agreements) National Science Foundation (NSF) Grant Proposal Guide (GPG), Grant General Conditions, GC-1 Cooperative Agreement General Conditions (CA-1) Public Health Service (PHHS/NIH) PHS 398 Grant Policy Statement

Agency Specific Guides (Grants and Cooperative Agreements) Department of Defense (DOD) Department of Defense Grant and Agreement Regulations, DoD R 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)

Agency Specific Guides (Grants and Cooperative Agreements) Broad Area Announcement, BAA Request for Proposal, RFP Request for Quotes, RFQ

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

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

Budget Issues Travel Your 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 Indirect Costs 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

Post Award Issues Limitation of Funds 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 (limit to key people)

Reporting Requirements Technical Frequency and Format Financial Consistent with accounting procedure Frequency Spend rates

Reporting Requirements Property Ownership Government furnished Frequency Patent Small Business Plan (294 and 295) Hazardous Substance

Negotiating Federal Awards SCENERIOS