Lifecycle of a Partnership File

1. RAD 301 Lifecycle of a Partnership File Partnership and Institutional Projects Team MaritaHobman

2. What is a partnership file anyway? • Well, the definition is a bit flexible, but what generally defines a partnership file is: • More than one sponsor – can be 2, 10, 20 … , and • Complex financial and reporting management • Partnerships also negotiate “Relationship Agreements”, that is MOU’s, Master Agreements, etc.

3. What kind of projects? • Federal/Provincial industry match programs as well as assorted industry and industry organization partnering schemes • Most files are from Engineering and ALES, but other faculties are represented as well • Many partnership projects build on existing projects and relationships

4. Most common files include: • NSERC CRD matched with one or more industry partners • NSERC IRC, often involving a large number of companies • Other Chairs • Agricultural Consortium funding matched with industry and/or industry organizations • Industry “Consortiums” • Genome Canada/Alberta projects • Networks • Western Economic Diversification

5. Stages of a Partnership file • Application stage • Agreement negotiation stage • Set-up stage • Management stage • Reporting • Extensions • Budget changes • Adding/removing sponsors • Adding/removing sub-grantees and collaborators

6. Important role of the Research Facilitator • The Faculty Research Facilitation Office is a satellite office of the RSO • Manages the Application Stage on behalf of the RSO • Provides advice and updates throughout

7. Application stage: In the beginning there was an idea… If we are lucky there is an application, which is then processed as any grant: • The PI forwards an application to the RF, who provides comments • Chair and Dean approves/signs – which gives go-ahead for RSO to work on the file, i.e,, in time negotiate an agreement with the sponsor(s) • Application is submitted to Sponsor(s) • Project is approved for funding • Sponsor(s) forward conditional or final award letter to PI • PI accepts funding • Sponsor forwards draft agreement to RSO – or the RSO drafts the agreement

8. This is where it can start getting complex • Matching funding might be covered in a multi-sponsor agreement or in several separate agreements with different sponsors • Another version is a combination, where there is a multi-sponsor agreement, as well as one or more separate agreements • Obligations and reporting (financial and project) can be inter-connected between different agreements, e.g., NSERC CRD • We work with TecEdmonton – sometimes documents that affect the legal framework have been negotiated by TecEd and might not be in our files

9. It can get really complex… Collaborator 2 Collaborator 1 Collaborator 3

10. So what if we are not lucky – no application? • Sometimes the first we hear about a partnership project is a signed agreement in the inbox. Might be signed by sponsor only, or by sponsor and PI … • We will ask for the application (project scope and budget including overhead, are needed) - and for approval from Chair/Dean • More often than not there are issues with the agreement and we need to contact the sponsor to negotiate those points • In other words, it is really helpful if RSO can be in at the beginning because nobody likes to start negotiating all over again when everybody has already agreed

11. Best case scenario for complicated projects • The PI, RF, Partnership negotiator, perhaps RSO legal, and other stakeholders, meet and discuss the project early on, when planning is starting • The project can be outlined and discussed: • Governance of the project • Financial management • Sub-granting requirements Then we work together moving forward…

12. Negotiation Stage: • When industry or interest organizations are involved, each award is subjected to the rules of a freshly negotiated agreement • This could be a multi-sponsor, multi-collaborator agreement • Or it could be several agreements, one with each sponsor, but all covering the very same project • Or it could be a combination of both

13. Partnering with Government-affiliated Agencies (1) • Federal agencies and government funded agencies usually have some strict rules around matching funding, for example: • NSERC (CRD and IRC) requires the industry funder to be a Canadian company or a foreign company with a Canadian branch • NSERC also has some rules around publication rights, intellectual property management, and students’ rights that often baffles companies that might have funded “service contract” type projects earlier – sometimes on a related project with the same PI • Mitacs requires the sponsoring company to send the funds to Mitacs, which then turns around and sends the money to the University

14. Partnering with Government-affiliated Agencies (2) • Working with government on partnered funding can be challenging as the room for negotiation is very limited and agreements often includes cumbersome provisions (e.g., Natural Resources Canada) • Even if the University can live with those provisions, it is sometimes difficult to fit the expectations of one or several sponsoring corporations that provide matching funds, into the scheme

15. Who negotiates the Agreements? • The agreement is always between the sponsor(s) and the University of Alberta so signature needs to be by someone who is authorized to sign on behalf of the University

16. Who negotiates the Agreements? • For research funding contracts/agreements it is the VPR Office that signs • The RSO has signing authority for the VPR up to a certain $$ amount, so in most cases it is the RSO that signs the agreement for the University

17. Who negotiates the Agreements? • It is also the VPR/RSO’s responsibility to make sure the agreement does not contain any provisions that the University will not be able to fulfill. For example, agreements sometimes ask us to follow laws of another country – we cannot promise to follow laws without knowing what they are …

18. RSO and PI need to work together to make sure Agreements are reasonable

19. Why does it take so long to negotiate a Partnership Agreement with the sponsors?? • With the exception of a few agreements that have been previously negotiated as “templates” – e.g., Agriculture Consortium Investment Agreement – there is always something that needs to be changed!

20. Why does it take so long to negotiate a Partnership Agreement with the sponsors?? • Negotiating with several parties gets complicated – for example, IRC’s can include 10+ corporate sponsors that all have their own internal policies and specific expectations …

21. Why does it take so long to negotiate a Partnership Agreement with the sponsors?? • Corporate sponsors often do not appreciate the framework around partnered funding – they have sometimes had previous collaborations with the University, as the solo sponsor, and want to continue with the same type of contract

22. Why does it take so long to negotiate a Partnership Agreement with the sponsors?? • Agreements that originate from the sponsor often have clauses around liability and insurance that need to be reviewed by legal or risk management

23. Why do we need all those signatures??? • It is the VPR/RSO signature that binds the University • Chair and Dean signatures acknowledge that Department and Faculty support the project and that the researcher is in a position to carry out the project (e.g., is employed during the term, has access to facilities, etc.) • PI signature acknowledges that he/she will fulfill his/her responsibilities under the agreement. This could be: • Perform the research and finish the project on time • Submit reports • Keep records of spending • Assign Intellectual Property to the University so that the University is able to offer licensing rights to the sponsor

24. Set up Stage • Reporting can be quite complex for Partnership Projects: • Some agencies/sponsors require financial and project reporting on entire project, including parts that are funded by other sponsors • It is important to establish which “financial reporting” is expected from the RSO and which is the PI’s responsibility – communication between PI, sponsor and RSO often needed to sort this out

25. Financial set-up • Communication is also needed in order to come up with the best financial management model, for example: • One RES • Several RES for related funding • One RES number, but with sub-accounts (e.g., RES#/core funding + RES#/Project funding + RES#Salary)

26. Management stage • Agreements might regulate how funding from one sponsor is to be spent in relationship to funding from other sources • For example, industry funding matching a CRD, is to be spent at the same rate as the money from NSERC • It can be challenging to manage expectations of different sponsors on the same project…

27. Projects Change • Partnership projects are often dynamic with sponsors and collaborators coming and going • Term extensions and budget changes are common • Each time something changes we need to amend agreements, sometimes with several sponsors

28. Challenges during Project Term • Extensions and changes to budget – if this happens during particularly busy times, e.g., fiscal year end, it will take us some time to get them done and project might be closed or O/E in the meantime, so advance notice is really helpful • Any change might open up new “cans of worms”, especially if new sponsors are added/removed

29. Partnership files … littered with Stakeholders …

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