1. Call ref.: FP6-2004-ACC-SSA-2 (10/2004) Contract Negotiation - Sofia - Bulgaria 10 February, 2005 1 Mrs Marina ZANCHI DG Research Directorate N International scientific cooperation E-mail: marina.zanchi@cec.eu.int marina.zanchi@cec.eu.int

2. Call ref.: FP6-2004-ACC-SSA-2 (10/2004) Contract Negotiation - Sofia - Bulgaria 10 February, 2005 2 Procedure Proposal submission Evaluation, ranking and opening of negotiation for successful proposals Project negotiation Commission Decision for selection Contract signature Starting of the project with advance payment

3. Call ref.: FP6-2004-ACC-SSA-2 (10/2004) Contract Negotiation - Sofia - Bulgaria 10 February, 2005 3 Negotiation Finalised Opinion of the Programme Committee Commission Decision for the selection of the projects Individual Commitments Signature of the contract

4. Call ref.: FP6-2004-ACC-SSA-2 (10/2004) Contract Negotiation - Sofia - Bulgaria 10 February, 2005 4 Project Negotiation : contractors receive a letter with: –The Evaluation Summary Report (ESR) –Contract Preparation Forms (CPFs) (signature of CPFs at the end of negotiation) –Description of work (Annex I) to be submitted with the CPFs

5. Call ref.: FP6-2004-ACC-SSA-2 (10/2004) Contract Negotiation - Sofia - Bulgaria 10 February, 2005 5

6. Call ref.: FP6-2004-ACC-SSA-2 (10/2004) Contract Negotiation - Sofia - Bulgaria 10 February, 2005 6

7. Call ref.: FP6-2004-ACC-SSA-2 (10/2004) Contract Negotiation - Sofia - Bulgaria 10 February, 2005 7

8. Call ref.: FP6-2004-ACC-SSA-2 (10/2004) Contract Negotiation - Sofia - Bulgaria 10 February, 2005 8

9. Call ref.: FP6-2004-ACC-SSA-2 (10/2004) Contract Negotiation - Sofia - Bulgaria 10 February, 2005 9

10. Call ref.: FP6-2004-ACC-SSA-2 (10/2004) Contract Negotiation - Sofia - Bulgaria 10 February, 2005 10

11. Call ref.: FP6-2004-ACC-SSA-2 (10/2004) Contract Negotiation - Sofia - Bulgaria 10 February, 2005 11

12. Call ref.: FP6-2004-ACC-SSA-2 (10/2004) Contract Negotiation - Sofia - Bulgaria 10 February, 2005 12

13. Call ref.: FP6-2004-ACC-SSA-2 (10/2004) Contract Negotiation - Sofia - Bulgaria 10 February, 2005 13 Contractor Participant = contractor  A legal entity contributing to a project must have a contractual link with the Community  It has some rights and obligations Exception to rule: subject to very restrictive rules –Third parties –Subcontractors (but these contributors are NOT participants)

14. Call ref.: FP6-2004-ACC-SSA-2 (10/2004) Contract Negotiation - Sofia - Bulgaria 10 February, 2005 14 Subcontracting Contractor shall ensure that the work to be performed can be carried out by them. Exception: where it is necessary to subcontract certain elements of the work, this should be clearly identified in Annex I Management activities should not be subcontracted Minor services may be subcontracted: –which do not represent core elements of the project –which cannot be directly assumed by contractors –where necessary for the implementation of the project

15. Call ref.: FP6-2004-ACC-SSA-2 (10/2004) Contract Negotiation - Sofia - Bulgaria 10 February, 2005 15 Financing Cost Reporting Models FC: actual direct and indirect costs (for SSA indirect costs 20% of total actual direct costs, except costs of subcontracts - all instruments) (New) FCF (variant of FC): actual direct costs + flat rate for indirect costs (20% of total actual direct costs, except costs of subcontracts - all instruments) AC: actual additional direct costs + flat rate for indirect costs (20% of total actual additional direct costs, except costs of subcontracts - all instruments)

16. Call ref.: FP6-2004-ACC-SSA-2 (10/2004) Contract Negotiation - Sofia - Bulgaria 10 February, 2005 16 Cost reporting models General Rule: a legal entity applies the same cost model in ALL contracts established under FP6 except may move from AC to FCF/FC or from FCF to FC (“one way ticket”) Cost modelWho can use it ? FC- All legal entities FCF- Non-commercial or non-profit organisations - International organisations - Small or Medium-Sized Enterprises (SMEs) AC- Obligatory for physical persons - Non-commercial or non-profit organisations or international organisations not having an accounting system allowing them to distinguish the share of their direct and indirect costs to the project

17. Call ref.: FP6-2004-ACC-SSA-2 (10/2004) Contract Negotiation - Sofia - Bulgaria 10 February, 2005 17 Eligible costs New :  1 - No more cost categories  2 - Costs must be :  actual, economic and necessary for the project  incurred during the duration of the project (exception: costs of final reports)  recorded in the accounts of the contractor (or third parties) and must exclude indirect taxes, duties, interests, costs reimbursed in respect of another Community project, and not give rise to profit 3 - Total costs identified both in the A.3.1 form and Annex I

18. Call ref.: FP6-2004-ACC-SSA-2 (10/2004) Contract Negotiation - Sofia - Bulgaria 10 February, 2005 18 Managing a project Active monitoring is essential Adequate management structures to deal with an increased level of autonomy and flexibility (dedicated management staff from the consortium) Recording and identifying costs in relation to the project Protecting, publishing and using the knowledge generated

19. Call ref.: FP6-2004-ACC-SSA-2 (10/2004) Contract Negotiation - Sofia - Bulgaria 10 February, 2005 19 Contract: Content Core contract (standard with specifics of project - negotiated) timing, financing, reporting details of this project any special clauses specific to this project Annex I (technical tasks - the “project” - negotiated) technical details of this project – specific to it including budget and breakdown, subcontracting, third parties Annex II General Conditions (standard) (applicable to every instrument) Annex VI - Form CFinancial statement per activity. To be filled periodically by each contractor

20. Call ref.: FP6-2004-ACC-SSA-2 (10/2004) Contract Negotiation - Sofia - Bulgaria 10 February, 2005 20 Signature and entry into force Contractual link of the contractor with the Commission (New) Contract enters into force upon both signatures of the contractor and Commission Project begins the first day of the month after the Commission signature of the contract

21. Call ref.: FP6-2004-ACC-SSA-2 (10/2004) Contract Negotiation - Sofia - Bulgaria 10 February, 2005 21 Reporting and deliverables Periodic reports and final report to be submitted within 45 days following the end of each period (12 months) Types of report: –Activity report –Management report –Distribution of the Community contribution between contractors –Supplementary reports required by Annex to the Contract –Audit certificates if required by the contract The Commission undertakes to evaluate reports within 45 days of receipt. The absence of a response within this delay does not imply approval by the Commission

22. Call ref.: FP6-2004-ACC-SSA-2 (10/2004) Contract Negotiation - Sofia - Bulgaria 10 February, 2005 22 Payment modalities Distribution of pre-financing to contractor by Commission: within 45 days of the date of entry into force of contract High degree of flexibility in the management of the EC financial contribution System of periodic advance payments (pre-financing) covering a reporting period plus the first six months of the following reporting period (normally 80% of the estimated EC contribution) Further payments based on the approval of the periodic reports

23. Call ref.: FP6-2004-ACC-SSA-2 (10/2004) Contract Negotiation - Sofia - Bulgaria 10 February, 2005 23 Payments and reporting schedule for an SSA (example of a 3 year contract) Activity report Reported costs Detailed work plan Adjusted advance Activity report Reported costs Activity report Reported costs Detailed work plan Initial advance 0 6 12 18 24 30 36 Months Detailed work plan Adjusted advance

24. Call ref.: FP6-2004-ACC-SSA-2 (10/2004) Contract Negotiation - Sofia - Bulgaria 10 February, 2005 24 Audits Audit certificates by external auditor –At the end of the project –For public bodies – competent public auditor Audits by the Commission, Court of Auditors or external reviewers

25. Call ref.: FP6-2004-ACC-SSA-2 (10/2004) Contract Negotiation - Sofia - Bulgaria 10 February, 2005 25 For more information General information on FP6 –http://europa.eu.int/comm/research/fp6/index_en.htmhttp://europa.eu.int/comm/research/fp6/index_en.htm –http://www.cordis.lu/nmp/find-doc.htm#coorguidehttp://www.cordis.lu/nmp/find-doc.htm#coorguide Legal framework within FP6 –Model contract : http://europa.eu.int/comm/research/fp6/working- groups/ model-contract/index_en.html Helpdesk –http://www.ipr-helpdesk.org –RTD-A03-Question-juridiques@cec.eu.int

26. Call ref.: FP6-2004-ACC-SSA-2 (10/2004) Contract Negotiation - Sofia - Bulgaria 10 February, 2005 26 Thank you for your attention Marina ZANCHI Unit N4 - Administration and Finance DG RTD, Directorate N - International Scientific Co- operation, Square de Meeûs 8, Office SDME 1/76, Brussels. Phone +32-2-295 38 14 Fax +32-2-299 47 43 Email: marina.zanchi@cec.eu.int