Project Life Cycle Framework Programme VI Training Seminar Bratislava Bratislava 27 – 28 January 2005

2Overview  Introduction  Negotiations – input to the contract  The contract - Consortium Agreement - Signature of the contract  Project reporting (interim and non-financial) - Project reviews  Evolution of the consortium / Contract amendments

3Introduction  Efforts towards simplification in FP6  look at project life cycle aspects  Move from ex ante to ex post control and from micro- to macro management by the Commission  Greater autonomy and flexibility in the management of projects by the participants  e.g. transfer of budget between activities  Greater management responsibility to consortia  e.g. financial collective responsibility  Simpler financial and administrative rules  reliance and audit certificates  no cost categories

4Introduction  Call for Proposals  Submission of a proposal  Evaluation of proposals  Negotiation of a project  Award of a contract  Running of a project  Finalisation of a project

5 Negotiations – input in the contract  Annex I – Description of work  Contract Preparation Forms  Contract Parameters

6 Annnex I Overview – Structure  Project objectives  Potential impact  Outline implementation plan for full duration of project  Detailed implementation plan for first 18 months  Project management  Project resources and budget overview  Ethical and other Issues  Appendix A Example IPsExample IPs

7 Annex I “2. Project objectives” - see IP  Objectives must be measurable, verifiable, specific, realistic and timed  Results and progress of the project will be measured against these objectives  It must be possible to assess the progress of work during project  Annex 1 should give a description of “the current situation” – benchmark data/description – on which they aim to improve.

8 Annex I “5. Potential impact” - see IP  Strategic impact in terms of e.g.  reinforcing competitiveness and/or  solving societal problems and/or  addressing specific problems  Innovation related activities  exploitation/further research  dissemination - awareness also with the public at large  Added value from doing work at European level, how build on other national or international research  To include, if applicable, 5.1 contribution to standards 5.2 contribution to policy developments 5.3 risk assessment and related communication strategy

9 Annex I “6. Outline implementation plan for full duration of the project” - see IP 6.AActivities 6.1Research, technological development and innovation activities 6.2Demonstration activities 6.3Training activities 6.4Consortium Management activities 6.BPlans 6.5Plan for using and disseminating knowledge 6.6Gender Action Plan 6.7Raising public participation and awareness 6.CMilestones 6.8Major Milestones over full project duration

10 Annex I: “8. Detailed implementation plan for first 18 months” - see IP 8.1Introduction - general description and milestones 8.2Planning & Timetable (Gannt chart or similar) 8.3Graphical presentation of WPs (e.g. PERT chart) 8.4Workpackage list 8.5Deliverable list 8.6Workpackage descriptions

11 Annex I “9. Project resources and budget overview” - see IP 9.1Efforts for full duration of the project 9.2Efforts for the first 18 months 9.3Overall budget for the full duration of the project 9.4Budget for the first 18 months 9.5Management level description of resources and budget

12 Annex I “Appendix A - Consortium description” - see IP A.1Participants and consortium A.2Sub-contracting A.3Third parties A.4Competitive calls A.5Funding of third country participants

13 Contract Preparation Forms A1General information on the project - per project A2Information on participants - per participant A2a legal information/statistics + impact cost reporting model A2b authorised representatives - contact details A2c certified declaration A3Detailed financial information - per project depending type of instrument A4Co-ordinator’s banking information - per project A5Confirmation of additional financial information annexed to the CPFs - per project A6Simplified balance sheet & profit and loss account - for co- ordinator and other participant(s), depending risk and take account of collective financial responsibility

14 General information on the proposal Form A1  Abstract will be used for publicity on the project and for communications with the programme management Committee - often a major re-work of abstract is needed  Abstract should provide the reader with a clear understanding of  the objectives of the proposal + the relevance of the project to the specific programme and the work programme

15 Information on participants Form A2c  To be signed by official authorised to sign the contract or to commit the organisation  Participant certifies  has stable and sufficient resources  reference to Art. 93 of the Financial Regulation  reference possibility to be excluded from participation in any future contract  Minimum requirements on provision of legal document

16 Form A3 for instruments IP A3.1 financial information - whole duration project A3.2 estimated breakdown of the EC contribution per reporting period A3.3 financial information – first 18 months project NoE A3.1 estimated breakdown of the requested EC contribution per reporting period A3.2 number of researchers and doctoral students to be integrated. Maximum allowable EC contribution STReP – CA – SSA A3.1 financial information – whole duration project A3.2 estimated breakdown of the EC contribution per reporting period

17 Detailed financial information Form A3.1 for IP

18 Detailed financial information Form A3.2 for IP

19 Contract Parameters  Time allocated for the contractors to accede to the contract  Duration of the project  Start date of the project  Community financial contribution  Reporting periods  Frequency of submitting audit certificates  Pre-financing  Time for the Commission to pay pre-financing  Any special clauses

20 The contract  Legal Framework  Principles  Structure  General conditions  Contractors and Coordinator

21 EC TREATY FRAMEWORK PROGRAMME SPECIFIC PROGRAMMES PARTICIPATION AND DISSEMINATION RULES CONTRACTS Other relevant EC Regulations FINANCIAL REGULATION INTERNATIONAL AGREEMENTS WORK PROGRAMMES & Calls for proposals GUIDELINES ON EVALUATION AND SELECTION PROCEDURES The contract Legal Framework

22  Reflect requirements of the Legal Framework  Simplification (compared to Framework Programme V)  No different categories of contractors  Reduction of the number of contracts  Greater flexibility  Evolution of the project  Composition and changes to consortium  Greater autonomy for participants = Collective approach The contract principles

23  Core contract(standard with specifics of project) (possibly including special clauses)  Annex I (technical tasks - the “project”)  Annex II General Conditions (applicable to every instrument)  Annex IIIInstrument specific provisions (specific to instrument) The contract Structure

24   Annex IV - Form A Consent of contractors identified in the core-contract (article 1.2) to accede to the contract. To be signed by the contractor concerned and by the coordinator.   Annex V - Form B Accession of new legal entities to the contract. To be signed by the new contractor concerned and by the co-ordinator   Annex VI - Form C Financial statement per activity. Specific to each Instrument and/or type of action. To be filled periodically by each contractor The contract Structure

25 The contract structure & instruments Core contractAnnex IIAnnex III IPYes NoEYes STReP CACommonCommonNone SSA SMEYes I3Yes

26 The contract Annex II – General conditions Part AImplementation of the Project Implementation and deliverables  Performance obligations Termination of the contract and responsibility  Financial and technical collective responsibility Part BFinancial Provisions General financial provisions Controls, recoveries and sanctions Part CIntellectual Property Rights  Ownership and protection of knowledge  Use of dissemination  Access rights  Incompatible or restrictive commitments

27   Every legal entity that contributes to the project (incl. Project Managers)   General Rule: Participant = contractor Every legal entity contributing to a project must have a contractual link with the Community   Exceptional cases: subject to restrictive rules   Third parties identified in Annex I   Subcontractors The contract Contractors

28   A contractor among other contractors   No additional rights BUT   Additional obligations   Administrative tasks: single entry point for communication, payments, reporting etc. The contract Co-ordinator

29 Consortium Agreement Private contract between the contractors. Provides for internal operation and management of the consortium Mandatory unless excluded by the call for proposals. Should be concluded before the signature of EC contract. Commission does not review it or approve it. Provisions must not conflict with provisions of EC contract. May be modified/amended after entry into force. Non-binding guidelines published by Commission.

30 Consortium Agreement Issues to be addressed (Art.12.5 Rules for participation)  Internal organisation of the consortium  Designation of the co-ordinator  Management structure  Technical implementation  Allocation of funds paid to the consortium  Changes in consortium membership  Intellectual property arrangements  Rules for dissemination and use  Agreement on exclusion of pre-existing know-how from access, agreement on royalty-bearing access-rights  Settlement of internal disputes  Applicable law  Arbitration procedure  Penalties

31 Signature of the contract The contract is concluded between the Commission and all participants. It enters into force on date of signature by the Commission and the co-ordinator The other participants identified in the contract shall accede to the contract within a maximum of 60 days. They will assume the rights and obligations retroactively from the date of entry into force of the contract (date of signature by the Commission and the co-ordinator - Article 4.1 of the contract).

32 Signature of the Contract Formalities The co-ordinator has the obligation to ensure that the contractors will complete the formalities needed to accede to the contract in a timely manner (Article 2.1 and Article II.3.3(a)) The Forms A have to be completed and signed in 3 originals by each contractor identified in Article 1.2. Forms A : to be sent to the Commission at the latest 30, 45 or 60 calendar days (as indicated in Article 2.1) after the entry into force of the contract. 1 original of Form A for the contractor, 1 original for the co-ordinator (to be made available for consultation by any other contractor)

33 Signature of the Contract Characteristics of Form A "Form A- Accession to the contract". By signing this form, countersigned by the co-ordinator, the contractor consents to become a contractor in the identified contract and accepts all the rights and obligations established by this contract. The Forms A constitute a part of the contract and are attached to it in its Annex IV

34 Periodic reporting  At the end of each reporting period 1.Periodic activity report 2.Periodic management report 1. Justification of resources and costs 2. Form C Financial statement from each contractor (plus audit certificates, if required) 3. Summary financial report 3.Periodic report on the distribution of the Community contribution 4.Draft planning for next 18 months (IPs and NoEs only) 5.Supplementary reports

35 Periodic reporting  At the end of the 1st reporting period only 6.Interim Science & Society questionnaire (all) 7.Interim questionnaire on the implementation of the Gender Action Plan (IPs and NoEs only) 8.Interim questionnaire on Workforce statistics (all except IPs and NoEs) 9.Interim Socio-economic questionnaire (all)  As specified in Annex I 10.Interim activity reports 11.Deliverables

36 Periodic activity report  Publishable executive summary  Objectives, contractors, coordinator details, work, results, intentions for use, publishable results of the plan for using and disseminating the knowledge  Section 1 - Project objectives and major achievements  Section 2 - Workpackage progress  Objectives, progress, deviations, deliverables, milestones  Section 3 - Consortium management  Management tasks, contractors, timetable, coordination  Section 4 - Other issues  Ethical, competitive calls

37 Periodic activity report  Annex – Updated plan for using and disseminating the knowledge  Section 1 – Exploitable knowledge and its Use  Includes an overview table per exploitable result plus short description  Section 2 – Dissemination of knowledge  Includes an overview table per dissemination activity plus short description  Section 3 – Publishable results  Publishable summary of all exploitable results (for the CORDIS results database)

38 Periodic project reviews  Assessment of project reports and deliverables by the Commission at the end of a reporting period, with the assistance of independent experts (reviewers)  The contractors may refuse one or several experts, on grounds of commercial confidentiality  The review can take place when all periodic reports and deliverables have been received by the Commission (incl financial forms)

39 Subject of reviews Fulfilment of workplan / deliverables / objectives Planning for next period (18 months for IPs and NoEs) Plan for using and disseminating knowledge Management Necessity of resources Economy and necessity of costs Continued relevance

40 Possible review outcomes  Approval of reports and deliverables and continuation of the project (with minor modifications, if any)  Request for resubmission of reports and completion of work or addition work, if needed  Re-negotiation of the work for next period (exceptionally combined with a suspension)  Termination  NoEs: the project may choose between 1-yr continuation w/o pre-financing, or termination

41 Possible review outcomes  The Commission is not obliged to follow the recommendations of the independent experts  IPs and NoEs: As soon as the plan for the next 18 months is approved by the Commission, the coordinator shall submit in writing a request for amendment in order to update Annex I

42 Evolution of the consortium  New partners  Partner withdrawals  Competitive calls in Integrated Projects and Network of Excellence

43 New partners New partners The request for the addition of a new contractor must include  the form B, duly signed  together with  the CPF, duly completed and signed  the modified Annex I  the justification for selecting this contractor  a letter explaining the proposed change, as appropriate

44 Partner withdrawals contractor  Request from the contractor itself (Art.II.15.1) via the coordinator 60 days before the end of the project, including a letter of agreement to withdraw from the contractor concerned. consortium  Request from the consortium to terminate the participation of a contractor, including  Justification for doing so  Proposal for reallocation of the tasks  Letter of opinion from contractor concerned N.B. Specific rules apply for the change of the coordinator

45 Competitive calls in IP and NoE Article 15.2 of the Rules for Participation For some changes in the composition of the consortium, requirement of prior publication of a competitive call (see Annex III) Specifications of the changes in the joint programme of activities for a NoE and in the implementation plan for IP The competitive call shall be published by the consortium and advertised widely using specific information support (Internet sites of FP6, specialist press and brochures, national contact points) Offers shall be evaluated by the consortium according to the evaluation and selection criteria of the indirect action (Article 10.4 and 10.5 of RFP), and with the assistance of independent experts appointed by the consortium (procedure of Article 11.2(b) of RFP)

46 Contract amendments   An amendment to a contract is a contractual document that modifies some provisions of the initial contract.   An amendment is needed when the changes to provisions of the contract could affect the rights or obligations of one or more contractors, or of the Commission.   Amendments of FP6 contracts are normally implemented through an exchange of letters. The content of both letters must demonstrate the agreement between the parties.   Amendment guidelines including model requests are available on the EUROPA website.

47 List of changes subject to amendment Change of start date of the project Duration of the project Community contribution Reporting periods Frequency of submission of the audit certificates Complementary pre-financing Intermediate pre-financing percentage Addition or removal of one or more special clauses Change of banking details Modification of Annex I Evolution of the consortium Addition Withdrawal Transfer of rights and obligations Change of coordinator Removal of one or more legal entities from list of contractors (Article 1.2.) due to their non-accession