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The Joy of Contracts… Or… When Did I Sign Up To Become A Lawyer?

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Presentation on theme: "The Joy of Contracts… Or… When Did I Sign Up To Become A Lawyer?"— Presentation transcript:

1 The Joy of Contracts… Or… When Did I Sign Up To Become A Lawyer?
Housekeeping Bathroom down the hall Phones / Pagers to vibrate Will pause for questions after each section. Ask along the way but may be answered by time get to end of section. Introductions / Name & Where worked & What hope to get from this? Division of Sponsored Research & Training Presented by: Dawn Boatman, Director Alexia Lewis, Assistant Director of Pre-Award (904) April 20, 2006

2 Overview of Presentation
Award mechanisms defined DSRT Involvement Elements of different types of contracts Which agreement is appropriate? Summary – Keep it Easy!! Elements of a Statement of Work Example & Discussion DSRT Involvement Why, When & How DSRT is involved Elements of different types of contracts Contract / Research Agreement – UNF receives funding Subcontracts – UNF receiving or providing funding Contract for Services – UNF receiving or providing funding Consultant Agreements / ICAs processed through Purchasing and not covered Finish Slide

3 Credits for Information presented
OMB Circulars A-133: Audits of States, Local Governments, and Non-Profit Organizations OMB Circular A-21: Cost Principles for Educational Institutions UNF DSRT Policy Manual NSF Grants Policy Guide NIH Grants Policy Statement Free Advice Web site Illinois Institute of Technology Circulars are basis for all we do and how UNF developed DSRT policies NSF / NIH used for easy to understand definitions If want more specific references, please ask me afterwards

4 Award mechanisms defined
Financial Assistance Grants Cooperative Agreements Acquisition / Procurement Contracts Research Agreement / Contract for Services Subcontract / Subaward / Consortium / Subagreement Prime Recipient / Lead / Pass-Through entity Subrecipient / Subcontractor Two main types of awards – Grants and Contracts Financial Assistance - Just as basis for distinction from contracts Congress defines as the transfer of $ for public benefit of national interest There is no expectation of delivery of product or service Goal is to support basic research Grant = no sponsor involvement Coop Agmt = some sponsor involvement Acquisition/Procurement discussed in detail as we go through presentation Go over different terms used to discuss subcontracts Although different there can be a contract under a grant Other types of contracts not covered here but DSRT should be involved in: Purchase Order (not federal but is basically a fixed price contract) Memorandum of Agreement / Understanding Confidentiality / Non-Disclosure Agreement

5 DSRT Involvement - Why? Compliance with Regulations Federal State
OMB Circulars CFR FARs State Florida Statutes UNF policy Agency specific guidelines CFR = Code of Fed Regs Federal law FAR = Fed Acq Regs Used for federal contracts Diff agencies have diff sections DFAR (dept of defense) AFAR (Air Force) DEARS (Dept of Energy) etc… Other ones listed POINT - DSRT ensures compliance with all guidelines requirements and policies

6 DSRT Involvement – Why? The root of all evil - OMB A-133
Outlines requirements to ensure compliance and good stewardship of agency funds Applicable regardless of source of funds NIH GPS says it best The grantee, as the direct and primary recipient of grant funds, is accountable for The performance of the project The appropriate expenditure of grant funds by all parties All other obligations of the grantee Just reinforce A-133 is Basis for all DSRT does Is applicable because of the dollar amount of awards UNF receives NIH Definition basically says that UNF responsible for performance/compliance for all contracts under our awards

7 DSRT Involvement – Why? Advocate for PI & UNF
Submission of proposals we can endorse/fulfill Protection of PI/UNF rights Obtaining most favorable terms Advising of meaning of terms & conditions (T&C) Provide good stewardship of agency funds Point of contact Administrative versus technical contact Other reasons DSRT is involved Bottom Line – Why? There is a lot to balance and consider and DSRT is here to balance this We don’t expect PI’s or research administrators outside of DSRT to be experts on all of this It is part of the training DSRT staff undergoes It is part of the service that we provide to the university community.

8 DSRT Involvement – When & How?
Proposal Stage Big Picture Good work at proposal stage saves time! Reduces misunderstandings Makes negotiations easier at the award stage Clear definitions of expectations and cost Appropriate commitments made Ok, so understand why… now when and how involved? DSRT wants to be involved the second that a PI decides to submit a proposal. We will schedule a sit down meeting to go over RFP, proposal, who does what, and timeline. The reason DSRT reviews proposals so thoroughly is to avoid issues when we get to the award stage. What kind of issues….? Next Slide

9 DSRT Involvement – When & How?
Proposal Stage Can UNF endorse the proposal? Performance of work Commitments Effort / Time Space / UNF resources Appropriate to UNF/College/Dept mission Other agencies Budget Terms & Conditions Proposal makes Commitments if awarded. Performance and Commitments Can we fulfill the obligations and perform the project as described? Are we making commitments on someone else’s behalf? Do we have the authority to do so? Is it appropriate for UNF to lead project instead of sub True examples: Have had more $ going to subrecipient than to lead agency Have had lead subbing to an agency that is subbing back to lead Budget Is the budget reasonable and the costs requested allowable? (A-21 Cost Principles) Is the budget accurate to fund the project to perform as described? Ensure that PI does not have budget shortfall from incorrect effort calculation, fringe rates, f&a rates used, Travel required but not budgeted for T&C Some RFPs have T&C that if we submit we agree to by remaining silent Must do “exceptions letter” to submit with proposal

10 DSRT Involvement – When & How?
Proposal Stage - Requirements Subcontract: Letter from Institution’s Authorized Official Clearly defined SOW Budget for subrecipient Anything else lead agency requires Contract for Services / ICA: Define services to be provided (SOW) Price Quote / Total Cost / Per Task Cost (Budget) Some agencies require letter of commitment / quote Both should be named in the proposal if known Here’s what’s needed prior to DSRT endorsing proposal for approval and submission Subcontract - DSRT Policy: The University encourages faculty and staff to collaborate with their colleagues at other institutions. The requirements that apply to internal review of proposals submitted solely by the University also apply to collaborative activities. Internal review is also required when the University is a proposed subcontractor or participant on a proposal submitted through another institution. What this means: If we are subrecipient or lead, we need to review proposals DSRT can provide template for letter Separate and SOW budget for sub is asked for because is used when subcontract prepared Anything else could be bio-sketches, other support, technical input from PI for main proposal narrative Contract for Services / Consultant Basically the same things Not as formalized as subcontract BOTTOM LINE: We need to know who, what and how much. Real life example - NIH award with unclear relationships at proposal stage has led to much work involving the PI, DSRT staff and collaborative agencies to define relationships and costs and we are now locked into a budget figure. Received award 03/23/06, set up prelim account but still untangling relationships in order to move forward.

11 DSRT Involvement – When & How?
Award Stage Big Picture Written contract is formalization of project UNF’s President “is authorized to negotiate, enter into, and execute research contracts; to solicit and accept research grants and donations” Delegated to the Director of the DSRT Florida Statute Written contract supersedes all discussions and understandings not reduced to writing DSRT reviews awards thoroughly to ensure we can meet the obligations and perform as required in contract / T&C If it’s not in there, it doesn’t exist Really a WHY, not a WHEN/HOW but Signature Delegation - Authority has been delegated to the Director of DSRT Don’t bother President Delaney! If any other UNF personnel represent themselves as having this authority and signs a contract the contract most likely is void / unenforceable. Some contracts have article that states that signing party has authority to sign – PI could be subject to legal repercussions

12 DSRT Involvement – When & How?
Award Stage Process Some agencies do not have standard contracts Input is gathered from PI Prior to negotiations As needed during the process What are we looking for? Taking exception to? All awards (contracts and grants) are reviewed and negotiated by DSRT Review award PI Clarifications/Agreement to T&C Agency exceptions & Negotiations PI signature & UNF signature Process award (post) DSRT provides draft of contract templates to start negotiations PIs can be included in all negotiation correspondence PIs should advise DSRT of concerns and let DSRT negotiate on their behalf PI / Technical Staff should not negotiate with agency True example – me and a dept RA were negotiating different points with agency Ended up looking at different versions of contract, led to much confusion. It is always important for UNF to have a united front and agreement in eyes of outside agencies PI reviews and signs final contract document as the Project Director What are we looking for? Appropriate to UNF as a non-profit educational entity of the State? Cannot agree to some T&C due to OMB Circulars, Florida Statutes, UNF policies or tax-exempt status Are UNF & PI able to be in compliance with T&C? Have we sought T&C that are most favorable to UNF and the PI? Do we need to alert PI to T&C to ensure understanding of responsibilities? More detail later

13 DSRT Involvement – When & How?
Award Stage Important Points Never lost an award due to not reaching agreement on terms Negotiations can be complex and lengthy Working with DSRT early can reduce this Don’t forget about Preliminary Accounts! DHS contract at UF took approximately 6 months – we won regarding publication restrictions Most take anywhere from a couple of days to a month All depends on flexibility of agencies (them and us) and my ability to explain why I am taking exceptions

14 DSRT Involvement Summary - Best to involve DSRT Early and often!
For any non-technical discussions with agencies When any UNF commitments are made Use of space Use of time/effort Budgetary information When any type of legal language is involved Reinforce that DSRT involved often and early to make proposal submission smoother/less stressful and award processing faster

15 Questions before moving on?
Elements of Contracts Questions before moving on?

16 Elements of A Contract NIH GPS definition A formal written agreement
Addresses the negotiated arrangements Meeting the scientific, administrative, financial, and reporting requirements of a project Ensuring compliance with all applicable regulations and policies Goal is to facilitate a smoothly functioning venture Specific to Research Contract but applicable to all types covered

17 Elements of A Contract Legal Elements: LACC Legal Assent Competency
Cannot be for illegal activities Assent This means that each side must be clear as to the essential details, rights, and obligations of the contract There is no assent if both sides have made a material mistake as to the terms or details of the contract Competency Both parties must have mentally capacity to enter agreements Consideration Both parties must give and get something Agency gives money to get results UNF gives results or performs project to get money This applies to all contracts, not just research contracts Learned this in my first business law class… which was when I realized that there was something wrong with me because I enjoyed a law class! At least that semester I could watch Judge Judy without guilt… Consideration is the biggie because UNF obviously meets legal, assent, competency requirements. Consideration is the Statement of Work / Deliverables of project which is covered after this section.

18 Elements of A Contract Types of contracts: Fixed Price
Consideration = Agency gets deliverables Tangible items Can be reports or results UNF Paid for delivering deliverables Lump sum payments Agency doesn’t care how money is spent Basis for payment is either SOW / Schedule of Deliverables Set schedule if only deliverable is at end of project 12% Revenue F&A (will be changing) Unexpended funds may be able to be retained Can be fixed price or cost reimbursable We should usually use same mechanism as funding agency award

19 Elements of A Contract Types of contracts: Cost Reimbursable
Consideration = Agency gets research performed Reports are not considered deliverables Considered report of progress to show work was done May be required for payment Contractor paid for performing project Reimbursed for costs incurred Agency does care how money is spent Line item budget basis for payment PI or DSRT must certify payments made to others 45% SWF F&A (will be changing) or agency’s rate No excess funds to be retained Consideration Think back to definition of grants/financial assistance award Similar in that we are paid for performing a project / no expectation of delivery of product/service

20 Elements of A Contract Gets a little fuzzy…
Reports – deliverable or not? Payments based on what? Will be clearer as we explore Statements of Work Deliverables Schedules Hang in There!

21 Elements of A Contract At a minimum, contracts include the following
Preamble Identifies the parties and states their ability/the reason for their involvement Basic Project Information Performance dates Project title Key Personnel involved Amount of funding Administrative / Technical Contacts Statement of Work Within contract or as an attachment to define deliverables and reporting requirements Not going in depth here, just provided for your reference DSRT ensures Parties identified appropriately Verifies this information More on SOW next A lot of this is information we get from PI as outlined in proposal (money in) or in Request for Contract Document form (money out)

22 Elements of A Contract At a minimum, contracts include the following (Continued) Financial Information Type of mechanism (FP or CR) Invoicing information and schedule line item budget or deliverables schedule Types of supporting documentation required Certifications and Assurances Lobbying Debarment Conflict of Interest Audit reports Termination / Breach / Disputes language These next slides explain more why DSRT is involved and what we are looking for Financial Too much of a burden on post-award if monthly invoicing or excessive documentation required This is the final word on the funding so must be accurately defined University level certifications should be signed/given by university level office Termination section Do we have the same rights as the agency? Non-cancelable obligations – we have to pay even if contract terminated early What happens if breached by either party? What happens if dispute? Arbitration cannot be binding and final Venue must be Florida

23 Elements of A Contract At a minimum, contracts include the following (Continued) Ownership Intellectual Property / Data Rights / Copyrights Publishing Rights / Publicity Ownership of Equipment Independent Contractor Status Non-Indemnification Clause No Warranty for intended use Confidentiality Non-assignment Modifications State of Florida Provisions Waiver of Breach Clause A few other big issues that are usually focus of negotiations Intellectual Property All State universities have policy that IP is owned by university (check your faculty appointment contracts) We do not give this right up easily but can in very specific situations Federal law states that funding agencies cannot take IP from subrecipients (Bayh-Dole Act) Publications Do not give agency right to approve publications – only to review This restricts publications (affects faculty and students) This may open up export control issues (restriction of information) For unclassified research the federal government has upheld this policy (NSDD-189, FAR ) In research contracts with universities, no restrictions may be placed upon the conduct of or reporting on the results of unclassified research Independent Contractor – Appearance of “Work for hire” relationship jeopardizes UNF tax exempt status Cannot indemnify (protect against damage or loss) another agency per Florida Statutes – big issue with private industry. Cannot warrant (guarantee) that results will be useful as agency wants them to be – we perform on “best effort basis”

24 Elements of A Contract Signatures of Authorized Parties
Attachment A usually Statement of Work Attachment B usually Budget or Schedule of Deliverables Other attachments for Special terms and conditions Prime Award for incorporation Specific forms / policies / etc…

25 Elements of A Contract Should be clear why successful negotiation is a collaborative effort between PI and DSRT PI for technical and performance reasons DSRT for legal and administrative reasons PI must understand terms DSRT must point out and clarify terms

26 Which Agreement is Appropriate?
Brain Full? 5 minute break or move on ? Questions before moving on?

27 Which Agreement Is Appropriate? Subcontracts
Definition: The granting of funding from an award to a recipient to an eligible subrecipient or by a subrecipient to a lower tier subrecipient Subcontract is formalized written agreement between the University and the subrecipient Subcontract versus Subaward UNF can be A recipient (have awards directly to UNF) A subrecipient (have subcontracts from awards to others) … But not on the same award! Read definition Formalized just like award to UNF – subcontract is award to subrecipient Subcontract supersedes all discussions/understandings not reduced to writing Same level of review as contract Subcontract vs. Subaward Basically interchangeable terms The terms Subaward encompasses financial assistance (grants) when provided by any legal agreement, even if the agreement is called a contract

28 Which Agreement Is Appropriate? Subcontracts
Specific prior approval of the sponsor is generally required before an activity on a sponsored project may be subcontracted to a third party Inclusion in proposal usually fulfills this requirement Statutory “Sponsored Research Exemption” exempts us from competitive bid process if not named in proposal Florida Statute Note vague language – research administration is more exceptions than rules. That’s why we answer all your questions with questions! Florida Statute again – this is statute that creates DSRs at universities

29 Which Agreement Is Appropriate? Subcontracts
The subcontract agreement will state The activities to be performed Time schedule Reports to be delivered General provisions applicable to the subcontractor including flow-down provisions from the prime sponsor Dollar limitation of the agreement Any additional policies and procedures applicable to the project The mechanism (FP or CR) Similar to Contract because is a contract for research project!

30 Which Agreement Is Appropriate? Subcontracts
Subcontract with Non-Profit entity: Lead entities must ensure in subcontracts with federal funds: Appropriate federal information is provided to subrecipient. Advise subrecipients of flow down requirements of Federal laws, regulations, the award terms/conditions and the prime agency terms/conditions. Monitor subrecipients to ensure that awards are managed in compliance with laws, regulations, and awards terms, and that performance goals are achieved. Ensure that subrecipients have met their audit requirements and take appropriate actions in the case of bad audit findings. Most are subject to same OMB circulars and we just request proof of audits being conducted and do a cost analysis for the project. Ensure that the pass-through entity and auditors to have access to the all necessary records for the pass-through entity to comply with appropriate OMB Circulars and with Sunshine laws. These next few slides are from OMB A-133 (Audit Circular) Not reading – just provided for your reference Goes back to why DSRT is involved Says we have to provide adequate information to sub and monitor them NON-PROFITS - This is mostly for subs with other universities Usually the easiest to negotiate because we all must follow the same federal guidelines Even easier with other Florida universities because also have same state laws Even easier still with other FDP institutions b/c have agreed on template and terms

31 Which Agreement Is Appropriate? Subcontracts
Subcontract with For-profit The same OMB Circulars do not apply to for-profits as apply to UNF The lead entity must establish requirements to ensure compliance The contract should describe applicable compliance requirements and the for-profit subrecipient's compliance responsibility Methods to ensure compliance may include pre-award audits, monitoring during the contract, and post-award audits Again A-133 but applicable to FOR-PROFITS These are the most difficult to negotiate (as well as City of Jax) because they do not understand non-profit educational institution regulations.

32 Which Agreement Is Appropriate? Subcontracts
DSRT Policy Manual: Subcontracts/Subrecipient Agreements A subcontract is an agreement, written under the authority and consistent with the terms of a prime award, that transfers a portion of the research or substantive effort to another organization. A subrecipient relationship exists when a third party: Performs a substantive portion of the programmatic work, which is defined as project activities that support the primary purpose of the prime award; Has responsibility for programmatic decision making Jointly responsible for directing performance of project Uses the funds provided to carry out the program as opposed to providing goods or services for the program of UNF; Is responsible for helping the UNF meet the requirements of the prime award; Award is flowed down to subrecipient Has its performance measured against whether the objectives of the program are met or has responsibility for adherence to applicable program compliance requirements Jointly responsible for portion of Statement of Work Lead determines who is eligible to receive financial assistance Compliance / Audits / Cost Analysis Based on OMB Circular A-133 DSRT’s formalization of policy based on OMB Circular from DSRT Policy Manual Again not reading; but for your reference Note that it mirrors the A-133 Circular Defines what a subcontract is Defines WHEN it is appropriate What it boils down to is NEXT SLIDE

33 Which Agreement Is Appropriate? Subcontracts
What’s this mean to me? A subcontract is appropriate when: The agreement is with another legally separate entity, not an individual Individual is using institutional resources The entity is performing a significant part of the scope of work and is involved in programmatic decision making The entity is not just providing goods or services that enable UNF to perform the SOW

34 Which Agreement Is Appropriate? Contract for Services
Definition Formalized written agreement for an outside entity or person/consultant to produce a product or service that is necessary for the performance of the project Similarities to subcontract Funded by a sponsored agreement Is a contract with a SOW SOW and invoicing requirements are Complex and cannot be easily managed via an ICA Agreement A lot of the same things that we went over with subcontracts apply to contracts for services so not going over again. But will point out the differences… NEXT SLIDE

35 Which Agreement Is Appropriate? Contract for Services
Differences from subcontract Procurement Contract / Vendor relationship Vendor is providing goods/services Consultant providing professional services or highly technical advice *** Not responsible for portion of main award SOW *** Contractual language Provisions of the prime award do not flow down to the recipient Language regarding timing of payments, travel, Equal Opportunity law included Fixed Price only Different than Subcontract because subcontract for research with input into and performance of substantial portion of SOW and this is for goods/services needed for us to perform SOW. Don’t get confused because subcontracts and contracts for services both have a SOW Contract for Services SOW is included in order to define what must be done for payment to be received. It is not the SOW for the project (subcontract), it is the SOW for this specific service

36 Which Agreement Is Appropriate? Contract for Services
Characteristics of a vendor (1) Provides the goods/services within normal business operations; (2) Provides similar goods/services to many different purchasers; (3) Operates in a competitive environment; (4) Provides goods/services that are ancillary to the project; and (5) Is not subject to compliance requirements of the Federal program. OMB A-133 again provided for your reference. Vendor – A-133 definition: a dealer, distributor, merchant, or other seller providing goods or services that are required for the conduct of a program. Boils down to vendor is not performing substantial portion of SOW

37 Which Agreement Is Appropriate? Contract for Services
Characteristics of Consultants Consulting by its very nature implies a small role or part in the research A PI has responsibility for reporting, progress and annual reports, etc. A consultant only handles the small aspect that they are contracted to do Angela Medyk, UF Research Administrator Boils down to consultant is not performing substantial portion of SOW

38 Which Agreement Is Appropriate? Contract for Services
Monitoring Ensure that the procurement, receipt, and payment for goods and services comply with laws, regulations, and the provisions of contract Vendor transactions are structured such that the vendor is responsible for compliance Or vendor's records must be reviewed to determine compliance. Again, why DSRT is involved. AS with subcontracts with FOR-PROFIT entities, we have to include language that makes sure we can comply with circulars because difference circulars probably apply to vendor.

39 Which Agreement Is Appropriate? Contract for Services
What’s this mean to me? A Contract for Services is appropriate when Agreement is with individual or entity Providing goods/services that enable UNF to perform the SOW Not performing substantial portion of SOW or involved in programmatic decision making

40 Which Agreement Is Appropriate? ICAs
Just a few words… Similar to Contract for Services Used for same purpose in same situations Different from Contract for Services Simple SOW Simple invoicing requirements Processed through Purchasing If paid with grant/contract funds, must be submitted to DSRT for approval Main differences here is that Contract for Services has COMPLEX SOW and invoicing requirements ICA has simple SOW and invoicing requirements Contract for Services is processed entirely through DSRT ICA is processed through Purchasing with DSRT approval

41 Which Agreement Is Appropriate? Process
Process for Subcontract/Contract for Services: Request for Contract Document sent to DSRT DSRT prepares contract Forwards it to the PI for review and SOW input Contract negotiated with other party Signed by authorized signatories DSRT encumbers the funds From Policy Manual – I have just started doing subcontracts out to assist post-award. I assume this is correct process to follow. Basically Let us know it’s needed PI approval and SOW input needed just like with contract Negotiations and Approvals just like with contract Post-Award Processing just like with contract

42 One Very Important Point
Can a UNF faculty member be a consultant on a UNF award? No! Intra-university consulting is assumed to be undertaken as a university obligation requiring no compensation in addition to full-time salary An exception to every rule In unusual situations, one may be consultant and employee, receiving funds for both roles as long as those separate services are not related to and are not charged to the same project A common question is if a faculty member can be shown as a consultant on a project awarded to UNF.

43 One Very Important Point
Is allowable when the consultation is across departmental lines or involves a separate or remote operation the work performed is in addition to their regular workload Under no circumstances can an individual be paid as a consultant and an employee on the same project! But usually we want to show UNF faculty in the personnel section as Co-Investigator PI credit for effort / work Less documentation required for auditors Contact DSRT for guidance

44 Summary – Keep it Easy!! So how do I know what to do?
We need to think about What is the intent of the arrangement? What protections need to be in place for both PI/PDs and their institutions? We don’t need to think about Which mechanism is the easiest? Information Overload? That’s why we are here!

45 Summary – Keep it Easy!! OMB A-133 acknowledges the use of judgment in making this determination: “There may be unusual circumstances or exceptions to the listed characteristics. In making the determination of whether a subrecipient or vendor relationship exists, the substance of the relationship is more important than the form of the agreement. It is not expected that all of the characteristics will be present and judgment should be used in determining whether an entity is a subrecipient or vendor.” Easiest thing to do – contact DSRT OMB reinforces looking to intent of arragement

46 Summary – Keep it Easy!! Ask these two guiding questions
Is the collaborating party involved in the scientific development or execution of the project? Yes = Subcontract No = Contract for Services or ICA Does the collaborator need to use any of their home institution’s resources? Yes = Subcontract / Contract for Services No = Contract for Services / ICA Complex SOW and Invoicing = Contract for Services Not Complex = ICA Question 1: Scientific Development or execution is vague Do they contribute to the design of the research plan / are they responsible for performing a substantial portion of the SOW OR Are we just purchasing services from them and they have minimal input into the project design Question 2: Resources used Brain or briefcase test? Other considerations Set up as independent consultant? Outside Activities / Tax implications

47 Elements of Statements of Work
Questions before moving on?

48 Elements of a Statement of Work
Where do they come from? If agency provides: DSRT can compare to proposal DSRT must rely on PI for approval If UNF provides: DSRT must be provided with a SOW by PI DSRT can try to pull SOW out of the proposal but need PI input Where do they come from? Based on proposal submitted (formal) or technical discussions between PI and agency (non-formal) Another reason it is important to be specific in proposals! DSRT is not technical staff – we are administrative. We can give our best guess But we have to rely on someone who understands the technical portion for final approval

49 Elements of a Statement of Work
What it is: Must clearly define work / tasks to be performed Must be measurable Specific deliverables and requirements Deliverables should be tied to payments Should be as concise as possible Goal is to reduce proposal information into list of deliverables After going over slide A little more about intent One thing DSR’s around the nation do is look to the intent of language and law, this is why we always go back to the OMB circulars and State laws to set our policies. If you work with me long enough you will hear me ask again and again – what is the intent? This is no different – we look to the intent. The intent of SOW is simply to state the expectations for consideration Have had instances where an unclear SOW has led to UNF not being able to get paid for work performed.

50 Elements of a Statement of Work
What it isn’t: Is not another version of the proposal Although proposal may be used for grants or CR contracts Is not specific to who at UNF is performing what activities Key Personnel are defined in contract proper Is not related to effort devoted That is CR mechanism Is not related to customary administrative functions Things that UNF must do internally to perform

51 Elements of a Statement of Work
Examples in hand-outs Attachment A – which is good? Attachment B – Schedule of Deliverables Working Exercise / Discussion Proposal Narrative & Activities Performed

52 Working Exercise What is a good statement of work based on information provided? For fixed price For cost reimbursable

53 Attachment A - SOW Attachment A / Statement of Work
UNF will conduct a study to determine the effects of Drug X versus Placebo on blood sugar levels in Hispanic diabetics and in Hispanics with normal blood sugar levels involving 20 subjects (50% in control group). UNF will: Submit a written progress report on 6/30/07 Present research results at project meeting at Johns Hopkins on 9/30/2007 Submit a written final report on 1/31/2008

54 Attachment A - SOW If Cost Reimbursable can use
First paragraph within contract proper Proposal narrative as attachment Reference to work “as outlined in proposal dated…”

55 Attachment B For Cost Reimbursable For Fixed Price

56 Questions? Contacts Dawn Boatman Alexia Lewis 620-2455
Building 10, Room 1120 Alexia Lewis Building 3, Room 1321


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