business operations and strategies seminar (boss) may 2, 2013

BUSINESS OPERATIONS AND STRATEGIES SEMINAR (BOSS)

May 2, 2013

OFFICE OF THE PRESIDENTScott 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

UCAR Washington Office1201 New York Avenue NW, 4th FloorWashington, DC 20005202 787-1633 Oldaker Group

(UCAR’s legislative consultant)818 Connecticut Avenue NW, Suite 1100Washington, DC 20006 Joel Widder, Partner Meg Thompson, Partner Phil Bye, Associate

Mike HenryManager,Government Relations 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 science-based 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

Revenue Budget

Authorizing Appropriations

$

Administration’s Budget Request Process

NOAA

NSF

NASA

DOE

Office of Management and Budget (OMB)

The Whit

e House

Office of Science

and Technol

ogy Policy (OSTP)

Congress

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

The Ideal Federal Budget Process

Appropriations timeline is slipping(which makes planning difficult)

Each year: 12 appropriation bills (shown by diamonds above)

Final FY13 Funding Details

FY13appropriation

FY12Actual

Amountchange

%change

% changew/sequester

NSF $7.4B $7.0B +$360M

+5.1% –2.8%

NASA $17.5B $17.8B

–$280M

–1.5% –9.3%

NOAA $5.1B $4.9B +$206M

+4.2% –3.9%

DOEScienc

e

$4.8B $4.8B –$44M –0.9% –7.7%

Total sequester = –7.81% for major science agencies in FY13

Our slice of the federal pie in FY14 Request

SCIENCE AGENCY BUDGETS INPRESIDENT’S FY14 REQUEST

FY12actual

FY14request

Amountchange

%change

NSF $7.106B

$7.626B

+$520M

+7.3%

NASAEarth Sci

$1.926B

$1.846B

–$80M –4.2%

NOAA $5.263B

$5.448B

+$185M

+3.5%

DOEScienc

e

$4.935B

$5.153B

+$218M

+4.4%

These numbers tell you what you need to know—nondefense discretionary spending caps

President’s proposal: $603BSenate proposal: $506BHouse proposal: $414B

The House proposal is the ONLY one that aligns with current

budget law! President and Senate proposals assume changes

in current laws.

AGENCY BUDGETS IN FY2014: THE BRUTAL REALITY

QUESTIONS?

http://president.ucar.edu/government-relations

TREASURY OPERATIONSAnita 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.

Integrated Science Program (ISP)

Peter Backlund

Member Institutions

Board of Trustees

Finance & Administration

Katy Schmoll, VP

NCARNew Director hire in process

Maura Hagan, Interim Director

UCAR Community Programs (UCP)

Emily CoBabe Ammann, Director

Computational & Information Systems Laboratory (CISL)

Al Kellie

NCAR Earth Systems Laboratory (NSSL)

Jim Hurrell

Research Applications Laboratory (RAL)

Brant Foote

Earth Observing Laboratory (EOL)

Vanda Grubišić

Cooperative Program for Operational Meteorology Education

& Training (COMET)Rich Jeffries

Constellation Observing System for Meteorology Ionosphere Climate

(COSMIC)Bill Kuo

Unidata

Mohan Ramamurthy

Joint Office for Science Support (JOSS)

Karyn Sawyer

Global Learning & Observations to Benefit the Environment (GLOBE)

Tony Murphy

Digital LearningSciences (DLS)

Mary Marlino

Visiting Scientists Program(VSP)

Meg Austin

National Science Digital Library (NSDL)

Kaye Howe

Advanced Study Program (ASP)

Chris Davis

UCARThomas Bogdan,

President

High Altitude Observatory (HAO)

Michael Thompson

Spark UCAR Science Education

Raj Pandya

University of Alabama in Huntsville

University of Alaska

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

UCAR’s 78 Member Institutions (2013/1960)Howard University

University of Illinois at Urbana-Champaign

Iowa State University

University of Iowa

The Johns Hopkins University

University of Maryland

Massachusetts Institute of Technology

McGill University

Michigan State University

University of Maine

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

New York University

North Carolina State University

University of North Dakota

The Ohio State University

University of Oklahoma

Old Dominion University

Oregon State University

Pennsylvania State University

Princeton University

Purdue University

University of Rhode Island

Rice University

Rutgers University

Saint Louis University

Scripps Institution of Oceanography at UCSD

Stanford University

University of Stony Brook - State University of New York

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

University of Wisconsin- Madison

University of Wisconsin-Milwaukee

Woods Hole Oceanographic Institution

University of Wyoming

Yale University

York University

STORM Science & Technology Opportunity Risk Mitigation

Administrative Support$57,501

1.5%

Administrative Support /

Discretionary$10,339

0.3%

Science Support$2,022,186

52.7%

Risk Mitigation/Bad Debt Write-off

$1,744,111 45.5%

Total $3.8MAs of September 30, 2012

STORM Expenditures FY00-FY12

Total $2.02MAs of September 30, 2012

Science Expenditures FY00-FY12Cost Sharing

$826,515 41%

Equipment$33,111

2%

Indirects$10,107

0%

New Prog. Startup$813,185

40%Prof Dev/Conf

$169,634 8%

Prog. Support$76,225

4%

Scientist Salaries$92,872

5%

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

Earth Guage Prototype (RAL, UCP Cost Sharing 91,000

Low-level utility library – WACCM (NCAR) New Prog. Startup 83,000

Tropical Meterology On-line Textbook (COMET, UCP) 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

EPA - NEETF Rainsheds (COMET) Cost Sharing 60,000

Earth Simulator – CCSM (CGD) Prof. Development 58,000

UNIDATA: Interactive Media (COMET, UOP) New Prog. Startup 53,000

Other 570,000

TOTAL $2,022,000

SCIENCE OPPORTUNITIES in STORM

FY00 to FY12

STORM Balances as of 9/30/12

$3.9M

UCP programs$965,165 24.46%

UCP director$412,043 10.44%

NCAR divisions$1,926,224

48.82%

NCAR director$568,768 14.41%

E&O$33,944 0.86%

Other$39,638 1.00%

Debt Financing

UCAR’s Debt History

Debt Financed Projects Amount Status

1977- Ten-year capital lease with Colorado State University Research Foundation to finance the acquisition of a Cray I supercomputer. $9M Paid in Full

Series 1986 Revenue Bonds- issued to finance the acquisition of a Cray XMP/48 Supercomputer System $21.6M Refunded in 1989

Series 1988 Revenue Bonds- Proceeds were used to purchase Foothills Lab 1, 2, and 3 and refurbish it. $33.2M

Refunded with 1991 Bonds

Series 1989 Refunding and Revenue Bonds- issued to refund Series 1986 revenue bonds and to acquire a Cray YMP/664 Supercomputer System $25.1M Refunded in 1993

Series 1991 Refunding Bonds- issued to refinance the 1988 building bonds and to refurbish the Mesa Lab $30.1M Called with 2001 Bonds

Series 1993 Refunding and Revenue Bonds- issued to refund the Series 1989 Bonds and to acquire improved physical facilities at NCAR Mesa Laboratory $16.3M Paid in Full

Series 1996 Revenue Bonds A&B (taxable)- issued to purchase FL4 and General Purpose Equipment$8M & $1.4M

Refunded Series B in 2001, Series A Called in 2010

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 O/S

TOTAL $317.3M$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

FL0

FL1FL2

FL3FL4

CG1CG3

CG2

FLA

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_index-education



OMB Circular A-110

Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations Administration of grants and agreements

Pre-award 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 Non-Profits 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/

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 ChamberlainDave Sundvall

INDIRECT COSTRATESJustin 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 FY 2014 BASE

Employee Benefit Rates:

Reduced Benefit Rate 9.6% Salary*

Full Benefit Rate 53.8% Salary

Communications: $3,055Headcount

Facilities Cost Rate: $26.96 GASF

UCAR G&A: 15.5%MTDC+IC

NCAR Indirect Cost Rates:

On-site 58.8% MTDC

Off-site 43.1% MTDC

UCP Indirect Cost Rates:

On-site 34.1% MTDC

Off-site 23.5% 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)

Group Life & Ma-jor Medical

24%

FICA15%

Disability2%

TIAA/CREF19%

Holiday8%

Sick Leave - SLR/SCP/FSL

4%

Vacation/PTO23%

Other5%

Communications Cost Pool - $4.9M (FY14)

Network Security11%

Comput-ing Facil-

ities9%

NETS75%

Enterprise Services5%

Facilities Cost Pool - $17.4M (FY14)

Engineering and Space

Management4%

Space Project Office

1%

Other7%

Logistics3%

Utilities14%

Leases1%Custodial

5%Security

5%

Communications Allocation1%

Building Debt Service

40%

Building Maintenance19%

UCAR G&A Cost Pool - $25M (FY14)

Library7%

Communi-cations

Allocation2%

FacilitiesAllocation

9%

Other8%

President's Office21%

Finance and Administra-

tion53%

NCAR Cost Pool - $54.4M (FY14)

UCAR G&A Allocation

37%

Division/LabIndirect Cost

26%

NCAR Di-rector'sOffice

5%

Communi-cations

Allocation6%

FacilitiesAllocation

26%

UCP Cost Pool - $9.8M (FY14)

UCP ProgramIndirect

12%

UCP Di-rector's

Office9%

Communica-tions Allo-

cation5%

Facilities Allocation17%

UCAR G&AAllocation

57%

Indirect Rate Methodology Change

FROMFixed w/Carry Forward

TOFinal and Provisional Rate

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)

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

March 2013 Oct.2013

Oct. 2014

Jan.2015

Begin FY2014 with

Provisional Rates

Calculate and apply FY2014 Final Rates

Audit complete, Final Rate

Submission to NSF

Projected approval of

Final Rates by NSF

May/June2015

FY2014 Rate Submission

to NSF

Indirect Cost Rate Timeline for FY2014

BUDGETING AND PROPOSALS

NCAR & UCP BUDGET OFFICESNCAR – Valerie Koch UCP – Geoff Cheeseman

- Kelly Smith

NCAR Budget & Planning Office

Rena Brasher-AllevaBudget and Planning Director

Amy StephensAdministrative Assistant

Valerie KochManager, Proposal Operations

Andrea MartinezBudget Analyst

Christina BookBudget Analyst

Caron ChambersManager, Budget Operations

Rebecca GreenbergBudget Analyst

Reta KublerCognos Business

Intelligence Analyst

What does the NCAR B&P Office do?

Base Budget Operations

• Detailed operating budget development

• Funding allocations• NCAR Indirect Cost Rate• NCAR Facility

User/Recharge Center Rates

• Funding/staffing trends

• Budget/overspending monitoring

• Review of base subcontracts over $250K for Director approval

Non-Base Programs

• Proposal Review and Approvals

• Pre-spending and over-spending monitoring

• Coordination of NSF FastLane reports

• Non-Base proposal and funding statistics and trend analysis

• Review of non-Base subcontracts over $250K for NCAR Director approval

Program Planning

• Strategic Plan • Long-range budget

planning• Annual Budget Review

(ABR)• Long-range

forecasting/ “what ifs” analysis

• Program Operating Plan (POP)

• POP Progress Report

What is the diversity of funding for NCAR?

Base86665406.87

52%

NSF Spec25534740.37

15%

COMM$3.62M

2%

DOD8920328.33999998

5%

DOE5380624.18

3%

DOI252905.67

0%

EPA$0.13M

0%

FAA6180085.59

4%FOREIGN4258069.34

3%

NASA9943771.29999997

6%

NOAA7080846.32

4%

OTHER4112897.46

2% UNIV4841487.66

3%

FY2012 NCAR Direct Expenditures** by Fund SourceTotal: $166.9M

*OTHER includes: State Governments, US Department of Agriculture, etc.

Total NSF = $112.2M, 67%

**Expenditures based on actuals.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 OfficeGeoff Cheeseman

Director of Budget and Operations

Kelly SmithProposal and

Budget Manager

Ligea RuffAdministrative

Assistant III

Reta Lorenz KublerBusiness

Intelligence Analyst

What does the UCP Budget Office do?

UCP Budget Office

Budget Office for

UCP

Reviews and Approves Proposals

Monitors Overall

Funding and ExpendituresFunding

Reports & Analysis

Reviews and Approves all UCP Salaries

Develops UCP Indirect

Cost Rate

Monitors Indirect Cost

Variance

What is the diversity of funding for the UCP programs?

NOAA50.79%

NSF20.78%

NASA19.85%

UNIV1.73%

COMM1.29%

DOE0.07%

DOD1.69%

FOREIGN2.28%

OTHER1.52%

FY12 UCP Direct Expenditures by Fund Source

$48,930,476

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).

http://www.ucp.ucar.edu/proposaloutline.html

http://www.ncar.ucar.edu/planning/proposals/

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.

Proposal Roles & Responsibilities

Lab /

Pro

gra

m

• 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.

Budg

et Office

• 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.

Contrac

ts

• 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?

102121 112 124

108 106 115136

157

42

134

132

110

131

121143

156

173149

124

Award57%

Award52%

Award50%

Award51%

Award53%

Award57%

Award58%

Award56%

Award49%

Award75%

0

50

100

150

200

250

300

350

2003 2004 2005 2006 2007 2008 2009 2010 2011 *2012

Num

ber o

f Pro

posa

ls

Fiscal Year

NCAR Success Ratios of Non-NSF and NSF Grant/Special ProposalsAwards vs. Declines Comparative

FY 2003 to 2012 YTD

NCAR Total AwardsNCAR Total Declines

Note: Excludes MOU's and zero $ proposals. Excludes proposals that are still pending or have been voided or withdrawn.

*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?

2008 2009 2010 2011 20120

20

40

60

80

100

120

UCP Proposals 2008-2012Proposed vs. Awarded

Total ProposedTotal Awarded

# o

f P

roposals

*Some 2011 and 2012 proposals are still pending a decision.

Average success rate

is 56.6%

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?

http://ncar.ucar.edu/budget-and-planning

http://www.ucp.ucar.edu/budget_office.html

CONTRACTS – DIRECT AWARDSGina Taberski

Contracts Director

Contracts – Direct Awards

Areas of Responsibility:Review sponsor solicitationsReview/approve certificationsSubmit government on-line proposals

Review and negotiate direct awards

Negotiate award modifications


Areas of Responsibility – cont’dAssist labs/divisions/programs with compliance questions

Review and negotiate zero funded agreements

Oversee direct award closeout


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.


Principal Investigators and Named Co-PIs Have Oversight for:

Conduct of the projectCompliance with award terms and conditions*

Subrecipient/Subcontract – programmatic oversight

Export ComplianceDeliverables (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.


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.


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.


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 InvestigatorReprogramming (overhead, equipment, issuance of subaward/subcontract)

Changes in deliverables schedule (more specific to contracts)

No cost extensions


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


Reporting – UCAR Finance and Administration are responsible for financial and other corporate reporting including:

Contractor’s Release CertificationsFinancial ReportsPatent/Invention Reporting (joint

responsibility)Property ReportsSmall Business ReportingARRA Reporting (financial aspects)


Reporting – PIs and Co-PIs* are responsible for programmatic reporting including:

Annual Technical ReportsPatent/Invention Reporting (joint

responsibility)Final Technical ReportsSpecial 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 – PROCUREMENTPeter 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.


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


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.

EXPORTDave 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.

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

http://www.bis.doc.gov/deemedexports/deemedexportsfaqs.html

http://www.bis.doc.gov/deemedexports/deemedexportssupplementqa.html

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 DepartmentUSML-U.S. Munitions ListITAR-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

http://export.stanford.edu/lists.html

Department of CommerceCCL-Commerce Control ListEAR –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

http://beta-www.bis.doc.gov/index.php/regulations/commerce-control-list-ccl

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

http://www.bis.doc.gov/deemedexports/deemedexportssupplementqa.html

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.

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.

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.

Recordkeeping

Records of transactions involving exports, including exports utilizing any of the License Exceptions, must be maintained 5 years.

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-com

pliance http://www.pmddtc.state.gov/ http://www.bis.doc.gov/

-End-

http://www2.fin.ucar.edu/ogc/export-compliance

http://www2.fin.ucar.edu/ogc/export-compliance

http://www.pmddtc.state.gov/

http://www.bis.doc.gov/

business operations and strategies seminar (boss) may 2, 2013

Documents