August 14, 2001
To:
From:
Subject:
SNF AdCom
SNF Staff (John, Jim P, Jim M, Mike, Dick, Mary)
Draft of the SNF Industrial Affiliates Program Proposal
In our last meeting (8/2/01), one of the topics of discussion was the need to establish an unrestricted
account for SNF. Currently the SNF Director does not have any SNF unrestricted funds at his/her
disposal. The only funds which are managed by the SNF Director are the NSF NNUN contract and the
Stanford University clearing account which is used to collect SNF charges and transfer them to user
accounts. Both of these accounts operate with very tight restrictions on how their funds can be spent.
The proposal to create an SNF unrestricted account, under the control of the SNF Director is driven by
the following issues:
1. Current SNF accounts are restricted and cannot be used to cover unpaid lab charges. Such bad debts
have been relatively rare to this point in time, but they have happened and we are increasingly
vulnerable, particularly as the number of startups we are now seeing in the lab grows. In cases of
non-payment of lab fees, the only option is to cover these charges from an unrestricted account.
2. The SNF has missed some excellent opportunities for NSF and other equipment grants that require
matching funds from non-government sources. This is particularly aggravating, because these
agencies have made it clear that they are more inclined to consider SNF proposals as we are an open
lab and part of the NNUN; thus, they'd get more users for their money.
3. Having an unrestricted account available would enable the lab to respond quickly to new
opportunities that are presented to us. Small pieces of capital equipment could be purchased,
modifications to existing machines could be undertaken, contributions to joint purchases of major
equipment and the like could all happen quickly at the discretion of the SNF Director.
4. The SNF has no mechanism for supporting employee incentives, such as bonuses or overtime.
These types of compensation are increasingly being used throughout the university to reward and
retain excellent staff performance. Bonuses etc. must be paid from unrestricted accounts.
It was determined in the AdCom meeting that probably the best mechanism for funding an unrestricted
account would be through an industrial affiliates program, where our industrial labmembers (or rather,
their companies) would be asked to contribute. According to John Shott, there were approximately 100
companies active in SNF the past calendar year. If we ask for a contribution of $2500 from each
company, this would give us a fund of $250K. We chose $2500 because on average, there are 2-3
people from each company, and this amount should be nominal in comparison to the lab fees they can
accrue in a one year period. We hope by keeping the fee low, we encourage participation.
Appended here is a draft document describing the affiliates program.
The Stanford Nanofabrication Facility Industrial Affiliates Program
Background:
The Stanford Nanofabrication Facility (SNF) is a university resource that is open to researchers from
across the country and around the globe, from industry as well as academia. The SNF provides not only
the tools for hands-on fabrication of very small devices and structures, but also staff expertise to help
labmembers turn their ideas into reality. More than just a laboratory, SNF is also a vibrant community
of researchers from a wide range of disciplines, constituting a dynamic, highly interactive and creative
environment.
Day-to-day operation and infrastructure costs of running this facility are funded completely by usebased labmember fees and an ongoing grant from the National Science Foundation. Funds for program
development, certain capital expenditures for new equipment and upgrades, and other discretionary
activities, are supported through funds generated by the SNF Industrial Affiliates Program.
Any incorporated entity may become a member of the Program.
Program are outlined in this document.
The terms and limitations of the
Terms of Membership in the SNF Industrial Affiliates Program:
Membership in the Program commences when the Industrial Affiliate makes its first annual contribution
to the "SNF Industrial Affiliates Fund". Membership is renewed automatically with each annual
contribution, and may be terminated by written notice by either party to the other. The membership fee
for 2001-2 is $2500.
Benefits of Membership:
SNF Industrial Affiliates members are considered to be corporate partners who have a long term interest
in the success of the SNF in enabling a broad range of user projects. Thus these affiliated companies
receive expedited access to SNF programs and are partners with the SNF in developing new SNF
capabilities. Specific benefits of membership include:
1.
2.
3.
4.
5.
6.
7.
8.
9.
Access to the SNF community.
Acknowledgement of SNF Industrial Affiliates in SNF media.
Corporate listing and links from the SNF website.
Specific acknowledgement of SNF Industrial Affiliates in capital equipment acquisitions.
Preferred status in granting of desk and storage locker space.
Preferred status in Introduction and Safety Training classes.
Inclusion in email announcements for some Stanford seminars and workshops.
SNF public relations support for corporate development.
Special consideration in requests for new materials and equipment.
Comments about Membership benefits:
The benefits listed on the previous page are services and resources that are either already available in
some form to all in members of the SNF community or require minimal administrative support to
implement. Thus, none of these activities should distract from our ability to support our current
labmembers. "Preferred status" and "special consideration" are to be exercised in keeping with the goals
of SNF -- thus, priority (for desk/locker space, Intro/Safety class slots, and new material/equipment
requests) will still be accorded to students and university researchers, but thereafter, preference will be
awarded to industrial labmembers whose companies belong to the affiliates program. PR support (in the
form of acknowledgements and corporate development) is already provided to large extent through
website links and lab tours (such as those given to senior management and investors).