1. Funding instruments
February 19, 2019 BRIEF

2. What are the different types of awards BC receives?
Grant
Contract
Gift

3. Gifts
No single factor distinguishes a gift from a sponsored project. Some of the indicators are:
Use of the funds is directly related to the University’s mission
The donor receives no value, or only nominal value, in exchange for the support provided
No detailed scope of work, budget, or period of performance is specified by the donor or promised by the University (the general area of work to be supported may be specified)
There is no line-item budget, nor any restriction on the use of funds (as long as the use is consistent with the donor’s original, accepted, stipulations)
There is no requirement to return unexpended funds to the donor

4. GIFTS
OSP works with Advancement and the Controllers Office to make the determination of gift status when it’s not clear.
Funders tend to be:
Family Foundations or Individuals
Non-profit organizations
Corporations
Corporate Foundations

5. Grants
Grants are defined as an “exchange” transaction, i.e., a grantor and a grantee both receive something of value.
The ideas for grants are conceived by the PI
Grantors give money in hopes of grantee achieving goals as outlined in the proposal.

6. Grants What are things that characterize a proposal as a grant:
A line-item budget for the expenditure of funds for the project Activity
A detailed statement of the planned Activity or scope of work
A specified period of performance as a term and condition
A commitment to provide “deliverables” (e.g., products, or periodic technical or progress reports)
Fiscal accountability, such as submission of financial reports, audit provisions, sponsor prior approval of or control over expenditures, and/or an obligation to return unexpended funds
Obligation to convey rights to tangible or intangible property resulting from the project (equipment, data, technical reports, copyrightable or patentable materials).

7. No reporting, no restrictions
Grant
Gift
Description
Represents an "exchange transaction" in which each party receives commensurate value
Represents a "contribution," an unconditional transfer of cash which is voluntary and non-reciprocal.
Reporting
Usually has reporting requirements or specific restrictions on how the funds can be spent
No reporting, no restrictions
Time Period
Usually has a specified time period over which the work will be done (a start date and an end date)
No specific time period
Funding
Sometimes requests that unused funds must be returned to the awarding agency/foundation/ corporation
Usually all of the funds are received upfront.

8. Contracts Is a binding agreement between two or more parties
The sponsor has a specific need with identified aims and objectives
Differs from a grant in that there is an expectation work will result in a specific deliverable product
Ownership of the intellectual property is negotiated prior to work starting
Normally this benefits the sponsor

9. Contracts
The different types of contracts or agreements that we encounter are:
Research Contracts
Collaboration Contracts
Cooperative Agreements
Federal Contracts
Subcontracts
Memorandum of Understanding
Material Transfer Agreement
Service Contracts
Professional Services Contract

10. Research Contracts
Research Contract sets out the roles and responsibilities of the defined parties.
Define the work to be undertaken
Define the financial contributions/payment terms
Define the share of technical, commercial and economic risks of each party
Set out publication rights of results
Establish who will own the results of the work and who has the right to use them
Set out agreed liability and indemnities.

11. Research Contracts What is the process?
Often start with a request for a proposal
OSP is contacted to provide a contract template or company provides its own
OSP works with the company to negotiate terms and conditions

12. Collaborative Contract
Normally between BC and an Industry Partner
This agreement sets out the responsibilities, roles and rights of collaborating parties working on a specific research project.
Both parties will be bound by the same terms and conditions, and the agreement will usually set out how the overall project will be managed between the parties.
Often results in joint ownership of intellectual property

13. Cooperative Agreements
Grant
Contract

14. Cooperative Agreement
Are issued when the Federal sponsor expects to have substantial involvement with the project
It is like a grant in that the idea is conceived by the PI, but the federal government issues a Request for Application (RFA) for a specific topic
The awarded document has additional terms and conditions beyond a standard grant award
This is in support of a public purpose or benefits in the public

15. Federal Contracts
Directly benefit the government in fulfilling public duties
Primarily for the procurement of services
Regulated by the Federal Acquisition Regulation (FAR)
Scope of Work is defined by the Federal agency and relatively inflexible
Payments based upon deliverables and milestones
Announced through Request for Proposals (RFP) or Request for Quotes (RFQ)

16. Memorandum of Understanding (MOU)
A Memorandum of Understanding is a document intended to describe a bilateral or multilateral agreement between parties. It is often a preliminary document and is generally not intended to create a legal commitment between the parties but to set out the working principles of the relationship

17. Material Transfer Agreement (MTA)
A Material Transfer Agreement (MTA) is a contract that governs the transfer of tangible research materials between two organizations when the recipient intends to use them for their own research purposes. It defines the rights of the parties in respect to scope of use of material, confidentiality, publication, and ownership of Intellectual Property.

18. MTA There are two types of MTA’s
An MTA-out covers the transfer of materials owned or controlled by BC to another university, company or other external body for research purposes
An MTA-in covers the transfer of materials to BC from another university, a company or other external body
OTL is the BC office that deals with these types of Agreements.

19. Subcontracts
A subcontractor is normally defined as a third party contracted to conduct a significant portion of the scope of work or research plan included in a research proposal. As such, use of a subcontractor is normally included in the funded proposal and is essential to the completion of the work. Therefore, a subcontract almost always requires prior sponsor approval.
The agreement is often drawn up following a main grant award or another research funding agreement
BC is responsible for the main award, and will flow down any relevant terms and conditions to the research partner and will be reflected in the agreement.
Subs are initiated via the Subcontract Initiation Form

20. Service Contracts
Service agreements are legally binding contracts used for the sale of a good or service (fee for service) from BC to an external entity.  These agreements include standard university requirements and terms and conditions relevant to the current work.
Categories may include, work for hire, testing, analysis, equipment use, specific training, etc. The work may be similar to sponsored research projects, but without scientific investigation or conclusions.
All results will be owned by BC, with no right of use assigned to the service provider. These agreements are not appropriate to use for a research sub- agreement or collaboration.
Procurement is responsible for this type of contract.

21. Subject Matter Expert (SME) Agreement
Also called Consulting Agreements
This type of agreement is used to facilitate the commissioning of specific professional services from a third party
No research or novel work is intended to be carried out under these agreements, rather just standard analysis, processing, manufacture or provision of expertise
BC normally seeks to own any intellectual property and may also expect complete confidentiality on the part of the SME, thus negating any publication opportunities
Procurement is also responsible for this type of contract

22. Professor X is working on a project and realized that he needs someone to run some tests for him. They may need to repeat the tests every year. What kind of agreement should we use?
Service Contract

23. Biosys is interested in developing a portable testing kit for the Zika Virus. They’ve contacted one of our faculty who is an expert in virology. Biosys wants the kits as soon as possible and wants our PI to start right away. The IP will be jointly owned. What agreement(s) do we use?
We can use a MOU to get the project going while we work on the Research Collaborative Agreement.

24. On Prof. Smart’s proposal to NSF, he has a consultant listed in the budget. When his grant administrator asks for more details on the consultants role, he finds that the consultant is going to be using his institutions facilities and plans on publishing. Should this raise any flags for the grant admin?
YES! Why?

25. Questions?
Please speak with your OSP rep with any questions on these types of funding instruments