DoD Contracting/Grant Policies & Procedures and Research Opportunities March 22, 2011

1. DoD Contracting/Grant Policies & Procedures and Research Opportunities March 22, 2011 Presented by: Vonetta Y. Goodson US Army Contracting Command-APG (SCRT) RTP Contracting Division 919-549-4291 vonetta.goodson@us.army.mil

2. PURPOSE: The purpose of this presentation is to provide guidance on Contracting/Grant Policies & Procedures and identify potential research opportunities.

3. COMMON QUESTIONS ● What are the differences between a contract, grant, and cooperative agreement? ● What is an Other Transaction? ● What is my role as the Principal Investigator (PI)? ● What is involved in the closeout process?

4. COMMON QUESTIONS (cont) ● Is prior approval required for pre-award costs? ● How does the Indirect Cost Limitation for Basic Research impact the award? ● What is the Federal Awardee Performance and Integrity Information System (FAPIIS)? ● What is the Federal Funding Accountability and Transparency Act (FFATA)?

5. Understanding Funding Instruments • ●Procurement Contracts • ●Assistance Instruments (Grants, Cooperative Agreements) • ●Other Transactions (Technology Investment Agreements and Prototype Agreements)

6. Understanding Funding Instruments • ● Procurement Contracts • Goods and services acquired for the direct benefit of the • Government. • ● Buyer/Seller Relationship • ● Includes Statement of Work to govern effort • ● Allows profit or fee • ● Requires compliance with Government regulations, • e.g. Federal Acquisition Regulation (FAR), Defense Federal Acquisition Regulation Supplement (DFARS), Army Federal Acquisition Regulation Supplement (AFARS)

7. Understanding Funding Instruments • ● Assistance Instruments (Grants, Cooperative Agreements) • The carrying out of a public purpose of support and stimulation • of fundamental research and development projects • ● Guidance found in the Department of Defense Grant and Agreement Regulations (DoDGARs) • ● More flexibility with agreement terms and conditions • ● Typically faster to award than procurement contracts for similar efforts • ● No profit or fee permitted • ● Government gets rights to intellectual property

8. Understanding Funding Instruments • ●Grants • Recipient performs proposed research effort without substantial • Government involvement • Mostly used with universities - ARO ISSUES • APPROXIMATELY 600 NEW GRANTS EACH YEAR TO • UNIVERSITIES!

9. Understanding Funding Instruments • ●Cooperative Agreements • Recipient performs proposed research effort with substantial • Government involvement • ● The Government/Recipient relationship is essentially a partnership • ● Each year a Program Plan is jointly developed that describes the research milestones and budget • ● Research is performed collaboratively and could result in joint papers and inventions

10. Understanding Funding Instruments • ●Other Transactions - Technology Investment Agreements • Basic, Applied or Advanced Research efforts by for-profit firms, • particularly those firms that have not done business with the • Government • ● Flexibility can be given in areas like cost accounting and intellectual property rights • ● 50/50 cost share required, when practicable • ● Only authorized when standard instruments are not feasible or appropriate

11. Understanding Funding Instruments • ●Other Transactions – Prototype Agreements • Acquisition of military prototypes or prototype technology • ● Flexibility can be given in areas like cost accounting and intellectual property rights • ● Requires a 1/3 cost share for traditional defense contractors

12. Funding Instruments Numbers • Here is how to identify a funding instrument by its number: • For example: • W911NF-11-C-0112 • W911NF-11-1-0364 • W911NF-11-2-0018 • W911NF-11-3-0002 • W911NF-11-9-0001 • The “W911NF” is the Contracting Office Code otherwise called the “PIIN.” • The next field is the fiscal year, e.g. “11” • The next field tells you the type of instrument: • “C” is for a contract • “1” is for a grant • “2” is for a cooperative agreement • “3” is for an other transaction - technology investment agreement • “9” is for an other transaction – prototype agreement

13. Funding Terms

14. Contracting/Grants Officer This individual signs the award and is the official who is responsible for the business management and other non-programmatic aspects of the award.

15. Program Manager This individual is responsible for the programmatic, scientific, and/or technical aspects of assigned applications and grants/contracts.

16. Authorized Representative (AR): The AR is the designated representative of the grantee organization in matters related to the award and administration of grants. This person is typically in the Office of Sponsored Programs Office.

17. Principal Investigator: (PI) The PI is the individual designated by the applicant organization to have the appropriate level of authority and responsibility to conduct research and direct the project or program supported by the award.

18. Principal Investigator (cont) Each PI is responsible and accountable to the grantee organization for the following: ● Proper conduct of the project or program ● Submission of all required reports ● Compliance with the financial and administrative aspects of the award ● Appropriately acknowledge federal support of research findings in publications, announcements, news programs, and other media

19. Award Information By accepting the award, the grantee accepts the associated terms and conditions. ● Research Terms and Conditions dated 1 JULY 2008 ● U.S. Army Research Office Agency-Specific Requirements dated 1 JUNE 2009

20. Award Information Grants These Requests Require Prior Approval ●Change in Scope ● Absence or Change of PI ● Need for Additional Funding ● Sub award of "significant part" of programmatic effort ● Pre-award costs (more than 90 days) ● Initial no-cost extension of up to 12 months

21. Award Information Grants Prior Approval Waived ● Carry-forward of unexpended balances to subsequent funding periods ● Pre-award costs (90 days) ● Rebudgeting among budget categories ● Rebudgeting between direct and F&A costs

22. Award Information Grants Terms and Conditions and Prior Approval Matrix can be found at the following website below: http://www.arl.army.mil/www/default.cfm?page=8

23. CLOSEOUT PROCESS DoD Grant and Agreement Regulations 33.50 (a) General. The Federal agency will close out the award when it determines that all applicable administrative actions and all required work of the grant has been completed. (b) Reports. Within 90 days after the expiration or termination of the grant, the grantee must submit all financial, performance, and other reports required as a condition of the grant.

24. CLOSEOUT PROCESS These may include but are not limited to: (1) Final performance or progress report (2) Financial Report (3) Invention disclosure (if applicable) (4) Federally-owned property report: In accordance with §33.32(f), a grantee must submit an inventory of all federally owned property (as distinct from property acquired with grant funds) for which it is accountable and request disposition

25. SPECIAL TERMS AND CONDITIONS: Under the provisions of P.L. 111-242, The Continuing Appropriations Act, 2011, DoD's indirect cost cap of 35% for basic research funds (i.e., 6.1 type funds) remains in effect pending passage of an FY11 DoD appropriations act. The guidance on the next slide remains in effect until such time as new legislation either removes or extends the restriction.

26. SPECIAL TERMS AND CONDITIONS: LIMITATION OF PAYMENTS FOR INDIRECT COSTS (Defense Appropriation 2010) Pursuant to DOD APPROPRIATIONS ACT, FY 2010. Public Law 111-118, 19 December 2009, no funds made available under that act may be used to pay indirect costs that exceed thirty-five percent of the total amount of the agreement for basic research.

27. Federal Awardee Performance and Integrity Information System (FAPIIS) The Duncan Hunter National Defense Authorization Act of 2009 (Public Law 110-417) was enacted on October 14, 2008. Section 872 of this Act required the development and maintenance of an information system that contains specific information on the integrity and performance of covered Federal agency contractors and grantees. FAPIIS provides access to integrity and performance information from the Contractor Performance Assessment Reporting System (CPARS), Central Contractor Registration (CCR) database, and suspension/disbarment information from the Excluded Parties List system (EPLS).

28. The Federal Funding Accountability and Transparency Act (FFATA) ● The intent is to empower every American with the ability to hold the government accountable for each spending decision. ● The FFATA legislation requires information on federal awards to be made available to the public via a single, searchable website.

29. The Federal Funding Accountability and Transparency Act (FFATA) The FFATA Subaward Reporting System (FSRS) is the reporting tool Federal prime awardees (i.e. prime contractors and prime grants recipients) use to capture and report subaward and executive compensation data regarding their first-tier subawards to meet the FFATA reporting requirements. Prime contract awardees will report against sub-contracts awarded and prime grant awardees will report against sub-grants awarded. The sub-award information entered in FSRS will then be displayed on www.USASpending.gov associated with the prime award furthering Federal spending transparency.

30. FUNDING OPPORTUNITIES ● ARO CORE BROAD AGENCY ANNOUNCEMENT (W911NF-07-R-0003-04) ● ARL CORE BROAD AGENCY ANNOUNCEMENT (W911NF-07-R-0001-05) ● SMALL BUSINESS INNOVATIVE RESEARCH PROGRAM (SBIR) ● SMALL BUSINESS TECHNOLOGY TRANSFER PROGRAM (STTR) ● SCIENTIFIC SERVICES PROGRAM ● UNIVERSITY AFFILIATED RESEARCH CENTERS (UARCs)

31. FUNDING OPPORTUNITIES ● Fiscal Year 2011 Department of Defense Research and Educational Program for Historically Black Colleges and Universities and Minority-Serving Institutions (HBCU/MI) ● Federal Business Opportunities Website https://www.fbo.gov/ ● Grants.gov http://www07.grants.gov/ ● ARL Website http://www.arl.army.mil/www/default.cfm?page=8

32. THINGS TO REMEMBER WHEN SUBMITTING PROPOSALS ● CAREFULLY READ THE BAA/SOLICITATION ● PROVIDE BACKUP DOCUMENTATION (Approved Rate Agreements, quotes, invoices, etc) ● START EARLY!!!

33. QUESTIONS ?