BUSINESS OPERATIONS AND
STRATEGIES SEMINAR (BOSS)
May 2, 2013
OFFICE OF THE PRESIDENT
Scott Rayder
Senior Advisor to the UCAR President
How Washington Works:
Science Budgets, Policy and Advocacy
Scott Rayder, Senior Adviser to the UCAR President
UCAR Staff in Washington
Mike Henry
Manager,
Government Relations
UCAR Washington Office
1201 New York Avenue NW, 4th Floor
Washington, DC 20005
202 787-1633
Oldaker Group
(UCAR’s legislative consultant)
818 Connecticut Avenue NW, Suite 1100
Washington, DC 20006
Joel Widder, Partner
Meg Thompson, Partner
Phil Bye, Associate
Ari Gerstman
Manager,
Business Development
Why a UCAR Washington office?






Serves as a community presence in D.C. for the
atmospheric sciences
Provides downtown space for community leaders
Builds relationships with policy makers; connecting
policy makers to scientists
Advocates for community priorities
(e.g., NCAR base funding, COSMIC-2)
Tracks funding and policy developments
Empowers/helps scientists to engage in the policy
process
Collocated with Consortium for Ocean Leadership
Same liquid, different densities!
Government Relations Mission
We bring science to bear on the
policy and legislative issues of the
day, focusing on key investment
priorities critical to our nation and
planet, and advocating for sciencebased weather, climate, and
research policies.
Office of the UCAR President
External Relations
Development and Partnerships
Government Relations
UCAR FY12 Expenditures
(Agencies We Track)
Total: $287.9M
How Federal Dollars Flow
Budget
$
Authorizing
Appropriations
Administration’s Budget Request Process
NSF
NASA
NOAA
DOE
Congress
Office of
Management
and Budget
(OMB)
The
White
House
Office of
Science
and
Technology
Policy
(OSTP)
The Ideal Federal Budget Process







2nd Mon. in Feb: President submits budget proposal
March–April: Congress hears stakeholder testimony
Spring: Congress passes budget resolutions (House
and Senate) setting overall spending levels
May–June: House passes 12 appropriations bills in
committee and then on floor
June–July: Senate does the same
September: House, Senate reconcile & finalize bills
October 1: New fiscal year begins
Appropriations timeline is slipping
(which makes planning difficult)
Each year: 12 appropriation bills (shown by diamonds above)
Final FY13 Funding Details
FY13
appropriation
NSF
NASA
$7.4B
FY12
Actual
Amount
change
$7.0B +$360M
$17.5B $17.8B
%
change
% change
w/sequester
+5.1%
–2.8%
–$280M
–1.5%
–9.3%
NOAA
$5.1B
$4.9B +$206M
+4.2%
–3.9%
DOE
Science
$4.8B
$4.8B
–0.9%
–7.7%
–$44M
Total sequester = –7.81% for major science agencies in FY13
Our slice of the federal pie in FY14 Request
SCIENCE AGENCY BUDGETS IN
PRESIDENT’S FY14 REQUEST
FY12
actual
NSF
$7.106B
NASA $1.926B
Earth Sci
FY14
request
Amount
change
%
change
$7.626B +$520M
+7.3%
$1.846B
–$80M
–4.2%
NOAA
$5.263B
$5.448B +$185M
+3.5%
DOE
Science
$4.935B
$5.153B +$218M
+4.4%
AGENCY BUDGETS IN FY2014:
THE BRUTAL REALITY
These numbers tell you what you need to know—
nondefense discretionary spending caps
President’s proposal:
Senate proposal:
House proposal:
$603B
$506B
$414B
The House proposal is the ONLY one that aligns with current
budget law! President and Senate proposals assume changes
in current laws.
QUESTIONS?
http://president.ucar.edu/government-relations
TREASURY OPERATIONS
Anita Monk-Ryan (on behalf of Dan Wilson)
Manager, Project Accounting
UCAR HISTORY
• UCAR’s roots go back to 1946. Originally organized as the High
Altitude Observatory of Harvard University and the University of
Colorado
• Name changed in 1960 to UCAR with the creation of the
National Center for Atmospheric Research (NCAR)
• In 1960 UCAR had 14 member universities. This list has now
grown to include 76 member universities, 25 Academic Affiliates,
and 53 International Affiliates.
• Today UCAR’s organized includes two major operational units,
NCAR and the UCAR Community Programs (UCP). Each unit
is headed by its own director.
Member Institutions
Board of Trustees
UCAR
Thomas Bogdan,
President
Integrated Science
Program (ISP)
Peter Backlund
Advanced Study
Program (ASP)
Chris Davis
NCAR
New Director hire in process
Maura Hagan, Interim Director
Computational & Information Systems
Laboratory (CISL)
Al Kellie
Earth Observing Laboratory (EOL)
Vanda Grubišić
Finance &
Administration
Katy Schmoll, VP
UCAR Community Programs (UCP)
Emily CoBabe Ammann, Director
Cooperative Program for
Operational Meteorology Education
& Training (COMET)
Rich Jeffries
Global Learning & Observations to
Benefit the Environment (GLOBE)
Constellation Observing System for
Meteorology Ionosphere Climate
(COSMIC)
Bill Kuo
Digital Learning
Sciences (DLS)
Unidata
Mohan Ramamurthy
Visiting Scientists Program
(VSP)
Meg Austin
Joint Office for Science Support
(JOSS)
Karyn Sawyer
National Science Digital Library
(NSDL)
Kaye Howe
Tony Murphy
Mary Marlino
NCAR Earth Systems Laboratory (NSSL)
Jim Hurrell
Research Applications Laboratory (RAL)
Brant Foote
High Altitude Observatory (HAO)
Michael Thompson
Spark UCAR Science Education
Raj Pandya
UCAR’s 78 Member Institutions (2013/1960)
University of Alabama in Huntsville
Howard University
Pennsylvania State University
University of Alaska
University of Illinois at
Urbana-Champaign
Princeton University
University at Albany, State U of NY
University of Arizona
Arizona State University
Brown University
California Institute of Technology
University of California, Berkeley
University of California, Davis
University of California, Irvine
University of California, Los Angeles
University of Chicago
Colorado State University
University of Colorado at Boulder
Columbia University
University of Connecticut
Cornell University
University of Delaware
University of Denver
Drexel University
Florida State University
George Mason University
Georgia Institute of Technology
University of Georgia
Harvard University
University of Hawaii
University of Houston
Iowa State University
University of Iowa
The Johns Hopkins University
University of Maryland
Massachusetts Institute of Technology
Purdue University
University of Rhode Island
Rice University
Rutgers University
Saint Louis University
McGill University
Scripps Institution of Oceanography
at UCSD
Michigan State University
Stanford University
University of Maine
University of Stony Brook - State
University of New York
University of Miami
University of Michigan-Ann Arbor
University of Minnesota
University of Missouri
Naval Postgraduate School
University of Nebraska Lincoln
Nevada System of Higher Education
University of New Hampshire
New Mexico Institute of Mining
and Technology
Texas A & M University
University of Texas at Austin
Texas Tech University
University of Toronto
Utah State University
University of Utah
University of Virginia
University of Washington
Washington State University
New York University
University of Wisconsin- Madison
North Carolina State University
University of Wisconsin-Milwaukee
University of North Dakota
Woods Hole Oceanographic
Institution
The Ohio State University
University of Oklahoma
Old Dominion University
Oregon State University
University of Wyoming
Yale University
York University
STORM
Science & Technology Opportunity Risk
Mitigation
STORM Expenditures FY00-FY12
Risk Mitigation/Bad
Debt Write-off
$1,744,111
45.5%
Administrative
Support
$57,501
1.5%
Administrative
Support /
Discretionary
$10,339
0.3%
Science Support
$2,022,186
52.7%
As of September 30, 2012
Total $3.8M
Science Expenditures FY00-FY12
Cost Sharing
$826,515
41%
Equipment
$33,111
2%
Indirects
$10,107
0%
Scientist Salaries
$92,872
5%
Prog. Support
$76,225
4%
Prof Dev/Conf
$169,634
8%
As of September 30, 2012
New Prog. Startup
$813,185
40%
Total $2.02M
SCIENCE OPPORTUNITIES in
STORM
MRI Blue Gene/L Acquisition (CISL,RAL)
Cost Sharing
$315,000
Center for Multiscale Modeling (NCAR, MMM, CGD)
Cost Sharing
278,000
Geophysical turbulence program (NCAR)
New Prog. Startup
173,000
African Initiative (NCAR)
New Prog. Startup
112,000
Cost Sharing
91,000
New Prog. Startup
83,000
Program Support
81,000
Development of a New Institute in DPC (UOP)
New Prog. Startup
78,000
Meteo Forum (COMET, UOP)
New Prog. Startup
70,000
Cost Sharing
60,000
Earth Simulator – CCSM (CGD)
Prof. Development
58,000
UNIDATA: Interactive Media (COMET, UOP)
New Prog. Startup
53,000
Earth Guage Prototype (RAL, UCP
Low-level utility library – WACCM (NCAR)
Tropical Meterology On-line Textbook (COMET, UCP)
EPA - NEETF Rainsheds (COMET)
Other
570,000
TOTAL
$2,022,000
FY00 to FY12
STORM Balances as of 9/30/12
Other
E&O
$39,638
$33,944
0.86% 1.00%
NCAR director
$568,768
14.41%
UCP programs
$965,165
24.46%
UCP director
$412,043
10.44%
NCAR divisions
$1,926,224
48.82%
$3.9M
Debt Financing
UCAR’s Debt History
Debt Financed Projects
1977- Ten-year capital lease with Colorado State University Research Foundation to finance the
acquisition of a Cray I supercomputer.
Amount
$9M
Series 1986 Revenue Bonds- issued to finance the acquisition of a Cray XMP/48 Supercomputer System $21.6M
Series 1988 Revenue Bonds- Proceeds were used to purchase Foothills Lab 1, 2, and 3 and refurbish it. $33.2M
Series 1989 Refunding and Revenue Bonds- issued to refund Series 1986 revenue bonds and to acquire
a Cray YMP/664 Supercomputer System
$25.1M
Series 1991 Refunding Bonds- issued to refinance the 1988 building bonds and to refurbish the Mesa
Lab
Series 1993 Refunding and Revenue Bonds- issued to refund the Series 1989 Bonds and to acquire
improved physical facilities at NCAR Mesa Laboratory
Series 1996 Revenue Bonds A&B (taxable)- issued to purchase FL4 and General Purpose Equipment
Status
Paid in Full
Refunded in 1989
Refunded with 1991
Bonds
Refunded in 1993
$30.1M
Called with 2001 Bonds
$16.3M
Paid in Full
Refunded Series B in
2001, Series A Called
in 2010
$8M &
$1.4M
Series 1999 Revenue Bonds- issued to acquire General Purpose and Special Purpose Equipment needs
from FY99 to FY06
$13.8M
Called with 2010 Bonds
Series 2001 Refunding Bonds- Issued to refund the 1996B and the 1991 Bonds
$30M
Called in 2011A
Series 2002 Revenue Bonds- Issued to purchase 3 Center Green Buildings
$29.3M
Called in 2012
Series 2003 Refunding Bonds- Issued to build Chemistry Lab
$25M
Partially refunded 5/12
Series 2010 Refunding and New $ for FL4 and FLA, etc
$27.5M
O/S
Series 2011A & B Refunding and New $ for FL4
$33.5M
O/S
Series 2012A & B Refunding
$13.5M
TOTAL
$317.3M
O/S
$84.5M O/S as of
9/30/12
Debt Balances as of 9/30/12





2003 Series
$16.8M
2010 Series
$24.7M
2011 Series A1, A2 and B
$28.5M
2012 Series A and B
$14.5M
$84.5M
CG2
CG3
CG1
FLA
FL4
FL0
FL3
FL2
FL1
COMPLIANCE ISSUES
Anita Monk-Ryan
Manager, Project Accounting
Circular Compliance




OMB Circular A-110: Administration of Grants and
Agreements
OMB Circular A-122: Cost Principles
OMB Circular A-133: Audit Requirements
http://www.whitehouse.gov/omb/circulars_indexeducation
OMB Circular A-110

Institutions of Higher Education, Hospitals, and
Other Non-Profit Organizations
 Administration
 Pre-award
of grants and agreements
requirements
 Post award requirements
 Close out requirements
OMB Circular A-122

Cost Principles for Non-Profit Organizations
 Principles
for determining costs
 Factors
affecting allowability of costs. To be allowable
under an award, cost must meet the following general
criteria:




Be reasonable for the performance of the award and be
allocable thereto under these principles
Be consistent with policies and procedures that apply uniformly to
both federally financed and other activities of the organization.
Be accorded consistent treatment
Be adequately documented
OMB Circular A-122 Attachments

Attachment A
 Direct
vs. Indirect costs
 Allowability and allocability of costs
 Determination of indirect cost rates
 Negotiation of rates by cognizant audit agency
OMB Circular A-122 Attachments

Attachment B
 Selected
items of cost such as
 Advertising
 Alcoholic
Beverages
 Entertainment Costs
 Fines and Penalties
 Participant Support Costs
 Lobbying
OMB Circular A-133

Audits of States, Local Governments, and NonProfits Organizations
 Sets
forth standards for obtaining consistency and
uniformity among Federal agencies for the audit of
states, local governments, and non-profit organizations
expending Federal Awards.
OMB Circular A-133 items





Audit requirements
Auditee responsibilities
Auditor responsibilities
Instructions for submitting the audit report to the
Federal Audit Clearing House for the US Census
Bureau
http://harvester.census.gov/sac/
Break!

Be back at 2:35 for more BOSS!

2nd Session - Panel Presenters
 Valerie
Koch, Goeff Cheeseman and Kelly Smith
 Gina Taberski and Peter Chamberlain
 Dave Sundvall
INDIRECT COST RATES
Justin Young
Manager, Budget Analysis
Why do we have indirect cost rates?
Federal Regulations
OMB Circular A-122, Cost Principles for Non-Profit
Organizations
http://www.whitehouse.gov/omb/circulars_a122_2004/
OMB Circular A-122, Cost Principles for Non-Profits

Defines Direct and Indirect Costs

Details methodology for developing indirect cost pools

Defines allocation bases for distributing indirect costs, e.g.,
Modified Total Direct Costs (MTDC)
Indirect Cost Pool Components

Cost Pool is comprised of expenses of like character in
terms of the functions they benefit

Allocation base measures benefit to each function

Indirect Cost Pool/ Allocation Base = Indirect Cost Rate
FY2014 Indirect Cost Rates
Indirect Cost Rate
Employee Benefit Rates:
Reduced Benefit Rate
Full Benefit Rate
Communications:
Facilities Cost Rate:
UCAR G&A:
NCAR Indirect Cost Rates:
On-site
Off-site
UCP Indirect Cost Rates:
On-site
Off-site
FY 2014
BASE
9.6%
53.8%
$3,055
$26.96
15.5%
Salary*
Salary
Headcount
GASF
MTDC+IC
58.8%
43.1%
MTDC
MTDC
34.1%
23.5%
MTDC
MTDC
* Includes casual employee and student visitor salaries .
UCAR Indirect Cost Flowdown
*The graphic is intended to show the flow of costs and the proportions do not reflect total dollars.
Benefits Cost Pool - $50M(FY14)
Vacation/PTO
23%
Other
5%
Group Life & Major
Medical
24%
Sick Leave SLR/SCP/FSL
4%
FICA
15%
Holiday
8%
TIAA/CREF
19%
Disability
2%
Communications Cost Pool - $4.9M (FY14)
Enterprise Services
5%
NETS
75%
Network Security
11%
Computing
Facilities
9%
Facilities Cost Pool - $17.4M (FY14)
Building Maintenance
19%
Engineering and
Space Management
4%
Space Project Office
1%
Other
7%
Building Debt
Service
40%
Logistics
3%
Utilities
14%
Communications
Allocation
1%
Security
5%
Custodial
5%
Leases
1%
UCAR G&A Cost Pool - $25M (FY14)
Finance and
Administration
53%
Library
7%
Communications
Allocation
2%
Facilities
Allocation
9%
Other
8%
President's Office
21%
NCAR Cost Pool - $54.4M (FY14)
Facilities
Allocation
26%
UCAR G&A
Allocation
37%
Communications
Allocation
6%
NCAR Director's
Office
5%
Division/Lab
Indirect Cost
26%
UCP Cost Pool - $9.8M (FY14)
UCAR G&A
Allocation
57%
UCP Program
Indirect
12%
UCP Director's
Office
9%
Facilities
Allocation
17%
Communications
Allocation
5%
Indirect Rate Methodology Change
FROM
Fixed w/Carry Forward



Fixed indirect rates are
determined based on budgeted
revenues and budgeted expenses
Fixed indirect rates are applied
throughout the fiscal year
Variances based on actual
revenues and expenses are
carried forward (2 years) in order
to adjust future indirect rate
calculations (up or down)
TO
Final and Provisional Rate





Provisional indirect rates are
determined based on budgeted
revenues and budgeted expenses
Provisional indirect rates are applied
during the fiscal year
Final rates are calculated based on
audited actual revenues and expenses
Final rates are applied to award
expenses, thereby recalculating
indirect charges
All indirect cost pools will have zero
variances at the end of the fiscal year
Indirect Cost Rate Timeline for FY2014
FY2014 Rate
Submission
to NSF
March 2013
Begin FY2014
with
Provisional
Rates
Oct.
2013
Calculate and
apply FY2014
Final Rates
Oct.
2014
Audit complete,
Final Rate
Submission to
NSF
Jan.
2015
Projected
approval of
Final Rates by
NSF
May/June
2015
BUDGETING AND PROPOSALS
NCAR & UCP BUDGET OFFICES
NCAR – Valerie Koch
UCP – Geoff Cheeseman
- Kelly Smith
NCAR Budget & Planning Office
Rena Brasher-Alleva
Budget and
Planning Director
Amy Stephens
Administrative
Assistant
Valerie Koch
Manager, Proposal
Operations
Andrea Martinez
Budget Analyst
Christina Book
Budget Analyst
Caron Chambers
Manager, Budget
Operations
Rebecca Greenberg
Budget Analyst
Reta Kubler
Cognos Business
Intelligence Analyst
What does the NCAR B&P Office do?
What is the diversity of funding for
NCAR?
FY2012 NCAR Direct Expenditures** by Fund Source
Total: $166.9M
Total NSF = $112.2M, 67%
NSF Spec
$25.53M
15%
FOREIGN
$4.26M
3%
NASA
$9.94M
6%
FAA
$6.18M
4%
Base
$86.67M
52%
Non-NSF
$54.71M
33%
NOAA
$7.08M
4%
EPA
$0.13M
0%
DOI
$0.25M
0%
OTHER
$4.11M
3%
DOE
$5.38M
3%
DOD
$8.92M
5%
COMM
$3.62M
2%
*OTHER includes: State Governments, US Department of
Agriculture, etc.
**Expenditures based on actuals.
UNIV
$4.84M
3%
Any fund source with less than $5,000
in expenditures will not appear.
UCAR Community Programs (UCP)

Education, Service, Community Building, and Innovation
are the hallmarks of the UCAR Community Programs.
UCP's vision and mission are:


Vision. Bring Communities together to address large-scale,
integrated research and education issues.
Mission. Provide leadership, services, and innovation in support of
UCAR community education and research goals.
UCP Budget Office
Geoff Cheeseman
Director of Budget
and Operations
Kelly Smith
Proposal and
Budget Manager
Ligea Ruff
Administrative
Assistant III
Reta Lorenz Kubler
Business Intelligence
Analyst
What does the UCP Budget Office do?
What is the diversity of funding for the
UCP programs?
FY12 UCP Direct Expenditures by Fund Source
$48,930,476
COMM
1.29%
DOE
0.07%
DOD
1.69%
FOREIGN
2.28%
OTHER
1.52%
UNIV
1.73%
NASA
19.85%
NOAA
50.79%
NSF
20.78%
Proposals
What constitutes a proposal and when do
I need permission to submit a proposal?


A proposal is an application for funding, for activities such
as research, training, or service that is submitted to a
sponsor such as a federal or state agency, commercial,
foreign or non-profit organization.
Prior to submission, all proposals must be reviewed and
approved by:
 Lab/Division or Program Director
 Entity Budget Office

NCAR Specific – Use of NCAR staff and facilities on all non-NSF and
NSF Grant activities requires approval of the NCAR Budget Office.


Unfunded collaboration on another organization’s proposal.
Proposals are officially submitted by UCAR on behalf of the
principal investigator.
Who is allowed to be a principal
investigator (PI) on a proposal?



Principal Investigators have responsibility for the
scientific/technical direction and administrative and
financial management of the project.
UCAR employees such as Sr. Scientists, Scientists, Project &
Associate Scientists, Software Engineers, Technicians, etc.
may serve as Principal Investigator on a proposal.
Proposals submitted by post docs, visitors and term
employees must have a UCAR employee designated as
the PI, with the post doc, visitor or term employee
designated as Co-I/Co-PI.
What guidance must I follow when
submitting a proposal?

Sponsor Requirements

Proposal requirements and guidance differ by sponsor.
 From
required content to specific margins and font to
submission method.
 Individual sponsor announcements also contain unique
requirements:
Eligibility
 Limited Submissions



Must be coordinated across UCAR
Budget Restrictions

Limitations on overhead or fee
 Requires additional processes such as Cost Sharing, STORM or UCAR
Management Fee Waiver
What guidance must I follow when
submitting a proposal? (Continued)

NCAR and UCP each have their own proposal
guidelines.
 UCP
Web:
http://www.ucp.ucar.edu/proposaloutline.html
 NCAR Web:
http://www.ncar.ucar.edu/planning/proposals/

NCAR Specific – NCAR’s Cooperative Agreement with NSF
contains comprehensive direction on proposal management.
 External
review committee conducts a retrospective review
of UCAR’s proposals (PACUR).
What guidance must I follow when
submitting a proposal? (Continued)


President’s Advisory Committee on University Relations
Committee of individuals from UCAR’s member universities,
established in response to university concerns about unfair
competition.
PACUR conducts a semi-annual review of how well proposals
follow the agreed to criteria developed by PACUR, NCAR,
UCAR and NSF:



Provides assurance to NSF, as required, and university community
that there is no unfair competition.
Mechanism to encourage collaboration between UCAR and
university community.
Report of findings is presented to UCAR President, NSF and
university members.
• Review sponsor
announcement &
confirm eligibility.
• Review budget and
proposal forms.
• Review PACUR
responses and
adherence to
criteria.
• Work with
Lab/Program on
necessary changes.
• Review final
proposal packet
against sponsor
guidelines.
• Submission of NSF
FastLane proposals.
Contracts
• Prepare proposal
forms, PACUR
criteria & Budget.
• Work with budget
office on necessary
changes.
• Prepare all sponsor
proposal documents.
• Ensure proposal
follows sponsor
guidelines.
• Complete sponsor
electronic proposal
packages.
• Submission of final
hardcopy proposals.
• Initiate all required
internal processes
such as Sole Source,
Cost Share, FFP, FID
etc.
Budget Office
Lab / Program
Proposal Roles & Responsibilities
• Review Terms &
Conditions if
required.
• Work with budget
office &
Lab/Program on
RFP documents.
• Submission of
proposals through
Grants.gov and
NSPIRES.
• Sign certifications
for NSF FastLane
proposals.
• Sign NSF 1030
budget forms for
hardcopy proposals.
• Approve Sole
Source requests.
How successful are NCAR
proposals?
NCAR Success Ratios of Non-NSF and NSF Grant/Special Proposals
Awards vs. Declines Comparative
FY 2003 to 2012 YTD
350
Award
56%
300
Number of Proposals
250
Award
57%
Award
51%
Award
52%
Award
53%
Award
50%
Award
57%
Award
58%
173
200
134
149
156
131
132
Award
49%
121
110
Award
75%
143
150
124
100
50
102
121
112
124
108
106
115
136
157
42
0
2003
2004
2005
Note: Excludes MOU's and zero $ proposals. Excludes
proposals that are still pending or have been voided or
withdrawn.
2006
2007
Fiscal Year
NCAR Total Awards
NCAR Total Declines
2008
2009
2010
2011
*2012
*FY 2012 has 170 proposals still under review,
therefore, they are not yet awarded or declined.
Note: Awarded proposals includes proposals in response to
direct requests by sponsors in addition to formal solicitations.
How successful are UCP proposals?
UCP Proposals 2008-2012
Proposed vs. Awarded
120
100
Average success
rate is 56.6%
# of Proposals
80
Total Proposed
60
Total Awarded
40
20
0
2008
2009
2010
*Some 2011 and 2012 proposals are still pending a decision.
2011
2012
Where to get more information

NCAR Budget and Planning Office
 http://ncar.ucar.edu/budget-and-planning

UCP Budget Office
 http://www.ucp.ucar.edu/budget_office.html
Questions?
CONTRACTS – DIRECT AWARDS
Gina Taberski
Contracts Director
Contracts – Direct Awards
Areas
of Responsibility:
Review
sponsor solicitations
Review/approve certifications
Submit government on-line proposals
Review and negotiate direct awards
Negotiate award modifications
Contracts – Direct Awards
Areas
of Responsibility – cont’d
Assist
labs/divisions/programs with
compliance questions
Review and negotiate zero funded
agreements
Oversee direct award closeout
Contracts – Direct Awards
 Who
is responsible and has oversight
responsibility for compliance with the terms and
conditions of sponsor awards?
 The
Principal Investigator (PI) is primarily
responsible to assure that anyone charging to an
award where he/she is named as the PI complies
with the award’s terms and conditions.
 UCAR Finance and Administration has oversight
responsibility to monitor award compliance and
perform other functions on behalf of the PI.
Contracts – Direct Awards
Principal
Investigators and Named CoPIs Have Oversight for:
 Conduct of the project
 Compliance with award
terms and
conditions*
 Subrecipient/Subcontract – programmatic
oversight
 Export Compliance
 Deliverables (project reports and other
deliverables including invention disclosures)
* Lab/Division Administrators may assist; however, the PI and named Co-PIs have primarily
responsibility for overall compliance.
Contracts – Direct Awards
 Types
of Direct Awards Managed by UCAR:
 Cooperative
Agreements – Financial assistance awards
where substantial involvement is anticipated between
the sponsor and UCAR during the performance of the
contemplated activity.
 Grant - A legal instrument between the sponsor and
UCAR whenever a) the principal purpose is to transfer
money, property, services, or anything of value in
order to accomplish a public purpose; and b) no
substantial involvement is anticipated between sponsor
and UCAR during the performance of the
contemplated activity.
Contracts – Direct Awards
 Types
of Direct Awards Managed by UCAR:
 Contract
– Seller is obligated to furnish
supplies/services and buyer is obligated to pay.
 Purchase Order – Offer to buy supplies/services,
including research and development
 Subcontract
– (see Contract)
 Subawards – (see Grant)
Terms and conditions will vary depending upon the type
of award.
Contracts – Direct Awards
What types of award actions generally
require UCAR to seek approval from the
sponsor?
Significant program changes – changes
in the statement of work
Change of the Principal Investigator
Reprogramming (overhead, equipment,
issuance of subaward/subcontract)
Changes in deliverables schedule (more
specific to contracts)
No cost extensions

Contracts – Direct Awards
 What
mechanisms may be required to 1) transfer UCAR
intellectual property to a sponsor or other 3rd party; or 2)
receive another party’s intellectual property?
 License Agreement- Managed by the Office of
General Counsel (OGC)
 Export License - Issued by the U.S. State Department An export license grants permission to conduct a
certain type of export transaction.
 Technical Assistance Agreement – An agreement for
the performance of a defense service(s) or the
disclosure of technical data.
 Non-disclosure Agreement - Managed by OGC
Contracts – Direct Awards
Reporting – UCAR Finance and Administration are
responsible for financial and other corporate
reporting including:
 Contractor’s
Release Certifications
 Financial Reports
 Patent/Invention Reporting (joint responsibility)
 Property Reports
 Small Business Reporting
 ARRA Reporting (financial aspects)
Contracts – Direct Awards
Reporting – PIs and Co-PIs* are responsible for
programmatic reporting including:
 Annual
Technical Reports
 Patent/Invention Reporting (joint responsibility)
 Final Technical Reports
 Special Reports (per award terms)
 ARRA Reporting (technical aspects)
* Lab/Division Administrators may assist; however, the PI and named Co-PIs have primarily
responsibility for overall compliance.
CONTRACTS – PROCUREMENT
Peter Chamberlain
Team Lead/Senior Contracts Administrator
Contracts - Procurements



Procurement is tasked with acquiring goods and services to
support the scientific activities of UCAR, NCAR, and UCP.
Procurement strives to meet the project / program requirements
while complying with the sponsoring entities’ regulations and
requirements to ensure continued funding.
Procurement staff are the competition advocates for UCAR
striving to meet requirements while saving money through
competition, innovation, and efficiency.
Contracts Office – Contractual Authority



The UCAR President has delegated the responsibility of
preparation, execution, and administration of UCAR direct
awards and procurement actions to the Contracts Office per
UCAR Policy 5-1.
No binding commitment shall be made on behalf of UCAR,
except by those having contractual authority and acting within
the limits of the said authority.
Commitments, arrangements, or promise of business, made by
personnel without proper contractual authority is prohibited,
and shall be subject to ratification by the VP for Finance and
Administration.
Contracts - Procurement


UCAR Policy 5-8 Acquisition of Goods and Services
Approved Methods of acquiring goods and services include:



Petty Cash: $100.00 or less - Employee pays for item and turns in
receipt for reimbursement.
Check Request: $500 or less - Employee pays for items and submits
a check request for approval and review by Finance prior to
reimbursement.
UCAR Purchase Card (UPC):


A JPMorgan Chase credit card allowing authorized employees purchasing
authority within individual spending limits, under specific Merchant Category
Classifications.
UCAR Contracts staff have expanded purchasing capabilities and dollar
thresholds to procure using P-card.
Contracts - Procurement



Non-encumbered Blanket Purchase Order (NBPO) is a method for
filling anticipated repetitive needs for supplies or services by
establishing “open accounts” with qualified sources of supply for
defined items.
Purchase Requisition (PR):

The PR process is a method for acquiring goods and services that supercedes other
purchasing mechanisms.

PRs must be reviewed and approved by authorized person having authority over the
specific account key(s) listed on the PR.

Include any additional documentation that will facilitate the procurement.
Unauthorized Procurement Actions: An unauthorized procurement action
is any verbal or written direction, agreement or authorization given to a
vendor by a UCAR employee lacking contractual authority.
Contracts - Procurements


Procurements in excess of $10,000 require competition prior to
award unless there is a valid sole source justification.
Sole Source Justification - Documentation of reasons why the
procurement cannot be competed:
 Source is a named CO-PI or collaborator on proposal
 Follow on procurement or repair of original equipment
manufacturer (OEM) that only the OEM parts or service will
meet compatibility and warranty requirements
 Documentation that clearly substantiates that the source was
arrived at through a “reasonable” process and is not
arbitrary, based on personal opinion
Contracts - Procurement



Conflict of Interest: No employee, officer or agent shall
participate in the selection, award, or administration of a
contract if a real or apparent conflict of interest would be
involved.
In addition to conflicts outlined in related policies, conflicts
include any discussion with a potential future employer when
the employee, officer, or agent is involved in the selection,
award or administration of a contract.
Further, UCAR prohibits purchases from employees, their
immediate families, or their business affiliates.
EXPORT
Dave Sundvall
Risk Manager and Export Compliance Manager
Export Control Laws?




Export control laws are a complex set of federal
regulations designed to protect U.S. national
security;
to prevent the proliferation of weapons of mass
destruction;
to further U.S. foreign policy including the support
of international agreements, human rights and
regional stability; and
to maintain U.S. economic competitiveness.
Export Controls Summarized

You need permission to export (or temporarily
import) controlled articles or technology, or to
provide defense services to a Foreign Person (unless
you qualify for an exemption), and you must keep
records and make reports.
Export Controls Summarized

You need permission to export (or temporarily
import) controlled articles or technology, or to
provide defense services to a Foreign Person (unless
you qualify for an exemption), and you must keep
records and make reports.
Permission

Typically, a license, agreement, or an exemption or
exception

You need permission to export (or temporarily
import) controlled articles or technology, or to
provide defense services to a foreign person (unless
you qualify for an exemption), and you must keep
records and make reports.
Export



Any item that is sent from the United States to a
foreign destination
“Items” include hardware, instruments, software, or
technical data and information
By fax, phone, email, ftp, FedEx, hand carried, etc.
Deemed Export


The release of technology or source code to a
foreign national in the United States is “deemed” to
be an export to the home country of the foreign
person under the EAR
Granting access to controlled technology

You need permission to export (or temporarily
import) controlled articles or technology, or to
provide defense services to a Foreign Person (unless
you qualify for an exemption), and you must keep
records and make reports.
Controlled items or technology

Listed on the State Department’s USML or
Commerce Department’s CCL
State Department
USML-U.S. Munitions List
ITAR-International Trade in Arms Regulations
Military items or defense articles
 Includes space-related technology because of
application to missile technology
 Includes technical data related to defense
articles and services
 Does not include basic marketing information
or general system descriptions

Department of Commerce
CCL-Commerce Control List
EAR –Export Administration Regulations

Dual use items
 Items
that have both commercial and military or
proliferation applications – but purely commercial items
without an obvious military use are also subject to the
EAR
What’s NOT controlled?



Information concerning general scientific,
mathematical or engineering principles commonly
taught in universities or information in the public
domain
Information that is published and which is generally
accessible or available to the public
Fundamental research in science and engineering
where the resulting information is ordinarily
published and shared broadly in the scientific
community

You need permission to export (or temporarily
import) controlled articles or technology, or to
provide defense services to a Foreign Person (unless
you qualify for an exemption), and you must keep
records and make reports.
Defense services

The furnishing of assistance, including training,
to foreign persons in the design, engineering,
development, production, processing,
manufacture, use, operation, overhaul, repair,
maintenance, modification, or reconstruction of
defense articles, whether in the United States
or abroad; or the furnishing to foreign persons
of any controlled technical data, whether in the
United States or abroad.

You need permission to export (or temporarily
import) controlled articles or technology, or to
provide defense services to a Foreign Person (unless
you qualify for an exemption), and you must keep
records and make reports.
Foreign person

Foreign Person means any person who is not a
citizen or national of the United States unless
that person has been lawfully admitted for
permanent residence. It includes foreign
corporations, international organizations,
foreign governments, and any agency or
subdivision of foreign governments.

You need permission to export (or temporarily
import) controlled articles or technology, or to
provide defense services to a Foreign Person (unless
you qualify for an exemption), and you must keep
records and make reports.
Exemption / Exception

A "License Exception" is an authorization that allows
you to export or reexport, under stated conditions,
items subject to the Export Administration
Regulations (EAR) that would otherwise require a
license.

You need permission to export (or temporarily
import) controlled articles or technology, or to
provide defense services to a Foreign Person (unless
you qualify for an exemption), and you must keep
records and make reports.
Recordkeeping

Records of transactions involving exports, including
exports utilizing any of the License Exceptions, must
be maintained 5 years.

You need permission to export (or temporarily
import) controlled articles or technology, or to
provide defense services to a Foreign Person (unless
you qualify for an exemption), and you must keep
records and make reports.
Reporting


The use of certain license exceptions include
reporting requirements
For example, exports of certain commodities,
software and technology controlled under the
Wassenaar Arrangement (high performance
computers, thermal imaging devices)
Where to get more information



http://www2.fin.ucar.edu/ogc/export-compliance
http://www.pmddtc.state.gov/
http://www.bis.doc.gov/
-End-