Negotiating Federal Awards

April 17, 2005

Negotiating Federal Awards

• Vincent (Bo) A. Bogdanski• Assistant Director, Office of Sponsored

Projects, University of Utah

• Vincent.bogdanski@osp.utah.edu

Negotiating Federal Awards

• With the Federal Contracting Officer

• With the Program Manager

• With the Principal Investigator

• With your boss

• With other support offices at your University

Negotiating Federal Awards

• A discussion of facts

• Well defined rules and regulations

• An interpretation of facts

• Understanding the rules and regulations

Negotiating Federal Awards

• Some things can be changed

• Don’t just accept what’s in a proposal award

• Know, understand and articulate for proper negotiation

OMB Circular A-110

• Assistance Awards only

• Sets maximum allowable conditions

• Cost sharing defined

• Budget revisions

• Defines property disposition and handling

• Technical and financial reporting

OMB Circular A-110

• Assistance Awards only• Standards for consistency and uniformity among federal agencies

for grants and agreements with institutions of higher ed, hospitals, and other non-profits

• Recipients shall apply the provisions of this Circular to subrecipients that are passed through or awarded by the primary recipient, if such subrecipients are covered by this Circular

• Does not apply to contracts administered under procurement laws or regulations

• Agencies are responsible for adopting this language unless different provisions are required by statute or are approved by OMB

OMB Circular A-110

• Sets maximum allowable conditions

• “Federal awarding agencies shall not impose additional or inconsistent requirements, except as provided in Sections __.4, and __.14 or unless specifically required by Federal statute or executive order”

OMB Circular A-110

• Cost sharing defined (Section 23)

• Section .23 defines cost sharing requirements

OMB Circular A-110

• Budget revisions (Section .25)• (c) items #1-8, sets the maximum requirements

for prior approvals• (d) – “No other prior approval requirements for

specific items may be imposed unless a deviation has been approved by OMB”

• (e) provides authorization for Federal agencies to apply expanded authorities, at their option

OMB Circular A-110

• Defines property disposition and handling (.30-.37)• “Federal awarding agencies shall require recipients to

observe these standards under awards and shall not impose additional requirements, unless specifically required by Federal statute”

• “Title to equipment acquired with Federal funds shall vest in the recipient”

• Section 34(f) provides records requirements• Section 34(g) provides disposition instructions

OMB Circular A-110

• Technical and financial reporting (.50-.53)• “performance reports shall not be

required more frequently than quarterly or, less frequently than annually”

• “recipient shall not be required to submit more than the original and two copies of performance (or financial) reports”

OMB Circular A-21

• Cost Principals for Federal Grants and contracts

• All Federal Agencies that sponsor awards

• A guide for fixed price agreements

• Incorporated in FAR at section 31.3

OMB Circular A-21

• The four factors

• Reasonable

• Allocable

• Allowable

• Consistent

OMB Circular A-21

• Consistent• Disclosure statement (DS-2)• Cost accounting standards

• Section “J” • Travel Policy• Equipment• Administrative Salaries

FAR Issues and Clauses

• FAR Overview• Procurement Awards only• Title 48 of the CFR

• Chapter 1• Chapters 2-99

• Allowable cost and payments • 52.216-7 paragraph (a) revisions per 16.307

FAR Issues and Clauses

• Intellectual Property• Rights in Data• Special Works• Patent clauses

• Security Requirements• Beware of export control issues• Publication restrictions

FAR Issues and Clauses

• Stop Work Orders• Delete, if possible; else,

• Limit time period• If pass-through, limit to federal agency orders only

• Cost and Fund Limitations• Limitation of Cost• Limitation of Funds

FAR Issues and Clauses

• Other issues:• Property clauses; 52.245-5 and 52.245-2 with

Alternate I• Small Business Subcontracting• Certificate of Current Cost or Pricing Data• COGR/FDP list of Problem Clauses – help is

available

OMB Circular A-133

• Procurements:

• Subrecipients vs. Vendors

• Subrecipient monitoring

Agency Specific Guides (Grants and Cooperative Agreements)

• National Science Foundation (NSF)• Grant Proposal Guide (GPG), 04-02• Grant General Conditions, GC-1• Cooperative Agreement General Conditions

(CA-1)• Public Health Service (PHHS/NIH)

• PHS 398• Grant Policy Statement

Agency Specific Guides (Grants and Cooperative Agreements)

• Department of Defense (DOD)• Department of Defense Grant and Agreement

Regulations, DoD 3210.6R• Service Grant general Conditions

• National Aeronautics and Space Administration (NASA)• Grant and Cooperative Agreement Handbook

• Department of Education (DEPT ED)• Education Department General Administrative

Regulations (EDGAR)

Agency Specific Guides (Grants and Cooperative Agreements)

• Broad Area Announcement, BAA

• Request for Proposal, RFP

• Request for Quotes, RFQ

Other Policies and Issues

• Institutional Signatures

• Representations and Certifications

• Export Control Issues

Other Policies and Issues

• Institutional Review Board, IRB

• Institutional Animal Care and Use Committee, IACUC

• Conflict of Interest/Conflict of Commitment

• Classified, Sensitive and Propriety

Budget Issues

• Effort Reporting versus Hours• % of effort• labor hour contract, time and material

• Employment versus Fellowship• Fringe Benefits

• Composition of rate• Actual versus Negotiate

• Consultants, Employees, or Subcontractor

Budget Issues

• Travel

• Your policy

• Justification

• Foreign Travel, pre-approval

• Equipment or Supplies

• “fabricated” equipment

Budget Issues

• Tuition and fees• Your policy• Training grant

• Clerical salaries, office supplies, telephone equipment, memberships, postage• Unusual circumstances• Consistent with DS-2

Budget Issues

• Indirect Costs• Not to be confused with fees or profit,

these are real and actual costs associated with the sponsored activity

• If not recovered through the sponsored project agreement, they must be paid by the institution

Post Award Issues

• Limitation of Funds• Start/End Dates• Pre-award spending• No cost Extensions• Options and Special Provisions• Terminations

• For Cause • For Convenience

Post Award Issues

• Changes:

• In scope

• In budget

• Of PI/institution

• In effort (limit to key people)

Reporting Requirements

• Technical

• Frequency and Format

• Financial

• Consistent with accounting procedure

• Frequency

• Spend rates

Reporting Requirements

• Property• Ownership• Government furnished• Frequency

• Patent• Small Business Plan (294 and 295)• Hazardous Substance

Negotiating Federal Awards

• SCENERIOS