![](media/image1.png) **NATIONAL SCIENCE FOUNDATION**

> **Office of Budget, Finance & Award Management**
>
> **4201 Wilson Boulevard**

# Arlington, VA 22230

Dear Colleagues:

We have published a revised version of the NSF Grant Policy Manual (GPM)
effective August 1, 2002. This document supersedes all prior versions of
the GPM. This revision implements important changes to NSF's policies,
as well as updates procedures for conformance with the Foundation's
conversion to electronic processes. A summary of significant changes has
been developed to assist the user in navigating through these changes.

Given the continually expanding use of the NSF website to provide and
obtain information regarding NSF programs, funding opportunities, and
proposal and award policies and procedures, the GPM will no longer be a
"printed" document or be available through the Government Printing
Office subscription service. NSF has successfully tested use of
electronic dissemination with a number of our major announcements and
solicitations, as the well as the NSF Grant Proposal Guide and Guide to
Programs, over the past few years. Therefore, the GPM will be issued
electronically and accessible on the NSF website.

Organizations or individuals unable to access the GPM electronically may
order paper copies (maximum of 5 per request) by either of the following
means:

-   Phoning the NSF Publications Clearinghouse at (301) 947-2722; or

-   Sending a request to pubs@nsf.gov or the NSF Publications
    Clearinghouse, P.O. Box 218, Jessup, MD 20794-0218.

Please address any questions or comments about the GPM to the Policy
Office, Division of Grants and Agreements at (703) 292-8243 or by e-mail
to policy@nsf.gov.

Thomas N. Cooley

Chief Financial Officer &

Director, Officer of Budget, Finance & Award Management

**FOREWORD**

This *Grant Policy Manual* (GPM) is a compendium of basic NSF policies
and procedures for use by the grantee community and NSF staff. Its
coverage includes the NSF award process, from issuance and
administration of an award through closeout and is effective August 1,
2002. Guidance regarding other grant requirements or considerations that
either are not universally applicable or which do not follow the award
cycle is also provided.

General information about NSF programs may be found in the NSF *Guide to
Programs*. Additional information about special requirements of
individual NSF programs may be obtained from the appropriate Foundation
program offices. Information about most program deadlines and target
dates for proposals appears in the NSF E-Bulletin, an electronic
publication available at [http://www.nsf.gov](http://www.nsf.gov/).
Program deadline and target date information also appears in individual
program announcements and solicitations and on relevant NSF Divisional
websites. A listing of all upcoming deadlines, sorted by date and by
program area is available on the NSF website.

The *Grant Proposal Guide* (GPG) provides guidance for the preparation
and submission of proposals to NSF. Some NSF programs have program
solicitations that modify the general provisions of this Guide, and, in
such cases, the guidelines provided in the solicitation must be
followed. Contact with NSF program personnel prior to proposal
preparation is encouraged.

Informal information about NSF activities can be obtained on the Grants
Bulletin Board. To make arrangements to access the bulletin board, send
your electronic mail address along with your complete name, address and
telephone number to <grants@nsf.gov>.

The National Science Foundation has Telephonic Device for the Deaf (TDD)
and Federal Information Relay Service (FIRS) capabilities that enable
individuals with hearing impairments to communicate with the Foundation
about NSF programs, employment or general information. TDD may be
accessed at (703) 292-5090, FIRS at (800) 877-8339. The National Science
Foundation Information Center may be reached at (703) 292-5111.

All NSF publications should be clear and understandable. If you have
suggestions on how NSF can improve this or other NSF publications,
please email <plainlanguage@nsf.gov>.

**SUMMARY OF SIGNIFICANT CHANGES**

# [Overall Document]{.underline}

-   Editorial changes have been made throughout the Grant Policy Manual
    (GPM) either to clarify or enhance the intended meaning of a
    sentence or section.

-   Previously issued policies, practices and procedures have been
    incorporated, especially changes brought about by electronic
    processing of proposals and NSF's electronic signature process.

## Foreword

-   The ability to access NSF policy documents electronically has been
    incorporated, and the phone numbers for contacting NSF via the
    Telephonic Device for the Deaf (TDD) and Federal Information Relay
    Service (FIRS) have been updated.

## Acronyms

-   The Acronym listing has been updated to reflect current names for
    documents or organizations. Acronyms that no longer appear in the
    GPM have been removed from the listing.

## Chapter I Basic Information

-   Descriptions of the NSF organizations or offices most relevant to
    grantees (for example, the National Science Board (NSB), Program
    offices, Division of Grants and Agreements (DGA), Division of
    Contracts, Policy and Oversight (CPO)) have been updated to reflect
    their current mission and function. A hypertext link to the most
    recent listing of NSF offices and directorates on the NSF website
    has been added and the paper organizational chart previously
    included as Exhibit I-1 has been deleted. Exhibit I-2 (now Exhibit
    I-1) has been revised to include up-to-date information on the
    statutes, Executive Orders and other directives referred to in the
    GPM. Most of these documents can be obtained electronically via the
    Internet. (GPM 110 "NSF Organization")

### Chapter II NSF Awards

-   A description of the Foundation's Major Research Equipment and
    Facilities (MREFC) account and the associated responsibilities have
    been added. (GPM 221, "Basic Requirements")

-   NSF transmits grants to proposers via e-mail and grantees can access
    their award letters via the NSF FastLane system. (GPM 230 "Grant
    Instrument")

-   No-cost extensions, Annual and Final Project reports and
    supplemental funding requests must be submitted electronically via
    FastLane. (GPM 250 "NSF Grant Periods" and GPM 260 "Additional
    Funding Support")

-   For supplemental funding requests, a signed paper budget is no
    longer required. Authorized Organizational Representatives now sign
    supplemental funding requests electronically. (GPM 264 "Supplemental
    Support")

-   The previous section on Effective Date (Section 253.1) has been
    deleted because it no longer reflects current practice.

## Chapter III Grant Administration

-   All grantee notifications and requests must now be submitted
    electronically to NSF via the FastLane system. This requirement is
    now incorporated into each of the subparts contained in this section
    of the GPM. Exhibit III-1 has been updated to include the most
    current listing of notifications and requests and includes a column
    that identifies where questions regarding each type of request
    should be directed. (GPM 310 "Changes in Project Direction or
    Management")

```{=html}
<!-- -->
```
-   Provides a definition for "substantially less time to the project"
    as defined in the NSF Grant Conditions. (GC-1) (GPM 312.5 "Change in
    Person-Months Devoted to the Project")

```{=html}
<!-- -->
```
-   Principal Investigator (PI) Transfers must now be submitted
    electronically via the Notification and Request module in FastLane.
    Updated instructions for completion of this process have been
    incorporated. After the transfer, NSF will not intervene in any
    disputes between the two organizations regarding the transferred
    amount. (GPM 312.8 "Disposition of a Grant when a PI/PD transfers
    from One Organization to Another Organization")

-   Submission of signed paper budget to NSF by the Authorized
    Organizational Representative (AOR) of a subawardee organization is
    no longer required. (GPM 313 "Contracting or Transferring the
    Project Effort (Subawards))

-   Cost sharing coverage is now consistent with the NSB-approved cost
    sharing coverage issued in May, 1999 as well as with changes made to
    NSF's Grant General Conditions in this area. Recipients are reminded
    that careful consideration must be given before committing to
    voluntary cost sharing on unsolicited proposals. Language also has
    been added regarding recent audit findings relating to cost sharing
    in awards. (GPM 330, "Cost Sharing and Matching")

-   Technical project reports are required for all NSF assistance
    awards. The information contained in these reports is used in
    Government Performance and Results Act (GPRA) reports to Congress,
    by NSF Program Officers and staff and may be released to the public
    under the Freedom of Information Act (FOIA). (GPM 340 "Technical
    Reporting Requirements")

-   Annual and Final Project Reports must now be submitted
    electronically via use of the format contained in the Project
    Reporting System in Fastlane. (GPM 341 "Annual Project Reports" and
    GPM 342 "Final Project Reports")

-   Failure to provide final technical reports will delay the processing
    of pending proposals for both the PI and all identified co-PIs on a
    given award. (GPM 344 "Compliance with Technical Reporting
    Requirements")

-   States, local governments or non-profit organizations must arrange
    for the conduct of audits as required by Office of Management and
    Budget (OMB) Circular A-133. Copies of the audit report should be
    provided to the cognizant Federal audit agency. (GPM 350 "Records
    Retention and Audit)

-   Exhibit III-2 "NSF Grant Transfer Request" has been deleted from the
    GPM because the process has been converted to an electronic module
    available via the NSF FastLane system.

## Chapter IV Financial Requirements and Payments

-   Definitions for ASAP, the Automated Standard Application for
    Payments and FastLane Financial Administration Functions, have been
    added to this chapter. (GPM 420 "Definitions")

-   Grantees who do not meet the conditions to be able to receive
    advances from NSF will be notified in the grant letter that they
    must submit a Standard Form (SF) 270 for reimbursement. Information
    on how to submit the SF 270 to NSF has been included in this
    section. (GPM 434 "Request for Reimbursements")

-   The Automated Clearinghouse (ACH) Vendor/Miscellaneous Payment
    Enrollment form is now available in electronic format. Once enrolled
    in the system, grantees may request funds from NSF either by using
    ASAP, the FastLane Cash Request function or an SF 270. Instead of
    manual review, electronic checks are performed in the system to
    ensure that all of the information provided is correct. (GPM 436
    "ACH Vendor Express")

-   Instructions on how and where to electronically refund excess funds
    to NSF have been added to this section. (GPM 442 "Erroneous
    Payments")

-   The Federal Cash Transactions Report (FCTR) is now available on
    FastLane. Grantees must now review, update, certify and submit the
    FCTR to NSF electronically via FastLane. (GPM 451 "Quarterly
    Disbursement Reporting - Federal Cash Transactions Report (FCTR)"

-   The reasons for closeout being deferred during the final
    disbursement reporting have been updated to reflect current
    procedure. (GPM 452 "Final Disbursement Reporting")

-   Section 453, "Compliance with Financial Reporting Requirements", has
    been removed.

## Chapter V Grantee Standards

-   The definitions contained in the previous GPM section 501.2 have
    been removed.

-   The list of information a prospective new awardee has to submit to
    NSF has been deleted. This information is now contained in the NSF
    Prospective New Awardee Guide which is available electronically on
    the Division of Contracts, Policy and Oversight (CPO) website.
    (GPM 501. "Prospective Grantee Organization and Management Data")

-   The previous GPM section 544 has been revised to implement the new
    principles relating to the use of NSF-supported research
    instrumentation and facilities that were adopted by the National
    Science Board (NSB). (GPM 544 "Principles Relating to Use of
    NSF-Supported Research Instrumentation and Facilities")

## 

## Chapter VI Allowability of Costs

-   The Basic Considerations section has been expanded to state that
    costs claimed must be allowable, allocable, and reasonable.
    Questionable cases should be discussed with NSF and documented
    thoroughly by the grantee organization. (GPM 600 "Basic
    Considerations")

-   The format of the "Applicability to Grantees" section has been
    changed from text to tables to make the information easier to
    understand. Websites for the OMB Circulars and the Federal
    Acquisition Regulations (FAR) are provided. (GPM 601.1
    "Applicability to Grantees")

-   Requests for pre-award costs must be submitted electronically via
    the FastLane Notification and Request module. (GPM 602.2 "Pre-award
    Costs")

-   Costs that are not specifically budgeted for originally may still be
    allowable under the cost principles and may be charged to the NSF
    grant. (GPM 603.2 "NSF Prior Approval Policy")

-   GPM section 604, "Advance Understandings", has been deleted.

-   A reference to the GPM section on use of non-US flag carriers while
    on foreign travel has been added to the "Travel Costs" section. (GPM
    614 "Travel Costs")

-   The previous GPM section 615.1 and 615.2 on computer facilities have
    been consolidated and the FAR reference replaced with the applicable
    OMB Circular A-110 reference. (GPM 615 "Computer Costs")

-   A clarification has been made to the Participant Support Costs
    section to show that participant support costs must be accounted for
    separately by grantees. Also the exemption for Veterans
    Administration, retirement or disability recipients has been removed
    because it has been phased out. (GPM 618.1 "General")

-   The dollar threshold for rearrangements and alterations that do not
    constitute construction has been raised to \$25,000. (GPM 621
    "Rearrangements and Alterations")

-   The initial paragraph under "Meetings and Conferences" has been
    rewritten to match the tense and tone of the preceding sections and
    to incorporate the note at the end of the previous GPM section into
    the first paragraph, for greater emphasis. (GPM 625 "Meetings and
    Conferences")

-   The "Indirect Costs" section has been rearranged to move forward the
    information on "Indirect Costs in Proposals for NSF support". Those
    organizations which do not have a current approved indirect cost
    rate should prepare one based on data from their most recently ended
    fiscal year. The NSF website address for guidelines on how to
    prepare this information has been provided. (GPM 632 "Indirect Costs
    in Proposals for NSF Support")

-   NSF procedures on handling organizations that do not have a
    Federally-approved indirect cost rate have been expanded, with
    definitions of the various types of rates that could be approved and
    under what circumstances they are used. The off-campus activities
    section (previously GPM 633.2) and the entire "Indirect Costs in NSF
    Cost Reimbursement Grants" (previously GPM 634) have been
    incorporated into the Basic Policy section. . Approval Rates (other
    than Maximum Provisional)\" (previously GPM 635.1) and \"Maximum
    Provisional Rate\" (previously GPM 635.2) have been incorporated in
    the Basic Policy section. (GPM 633.1 "Basic Policy")

-   Fees may not exceed the amount specified in the NSF award letter.
    (GPM 640 "Fee Payments under NSF Grants")

### Chapter VII Other Grant Requirements

-   NSF's implementing regulations regarding Title IX have been added to
    the GPM, and they are also cited in the grant conditions. (GPM 704
    "Title IX -- Sex Discrimination")

-   A URL for the Common Rule for the protection of human subjects has
    been added as well as a link to NSF's citation in the Code of
    Federal Regulations (CFR) and guidance about the regulations.
    Updated organizational affiliations for DHHS also have been
    inserted. (GPM 711 "Human Subjects")

-   A URL for the Recombinant DNA guidelines, amended in May of 1999,
    has been added to this section. The address to which to send
    inquiries on the NSF policy on recombinant DNA research has been
    updated. (GPM 712 "Research involving Recombinant DNA Molecules")

-   The definition of vertebrate animals has been extended to include
    rats, birds and mice. A statement has been added to clarify that
    Institutional Animal Care and Use Committees must be established
    through a multi-project assurance with NIH or through an
    NSF-approved single-project assurance. Updated coverage on
    laboratory animals, to include new coverage on awards to U.S.
    grantees for projects involving the care or use of vertebrate
    animals at a foreign institution or foreign field site, has been
    added. The citations for the applicable guidelines have been updated
    and a URL for the Public Health Service (PHS) policy on the humane
    care and use of laboratory animals also has been added to the
    Vertebrate Animal section. (GPM 713 "Animal Welfare Requirements")

-   The "Patents and Inventions" section has been amended in sections
    731.1.b.3 and 731.4.f.5 to state that only the page of any US patent
    application that contains the Federal support clause must be
    submitted to NSF. Grantees are now encouraged to use the Edison
    system maintained by the National Institutes of Health to disclose
    NSF subject inventions. Instructions regarding use of that system
    are included. (GPM 731 "Patents and Inventions")

## Chapter VIII Other Proposal and Award Considerations

-   Intergovernmental Review of Federal Programs has been revised to
    eliminate the paragraph regarding annual publishing of NSF programs
    in the Federal Register. Such information is available from the
    Federal Assistance Award Data System (FAADS). (GPM 800,
    "Intergovernmental Review of Federal Programs")

-   Section 812.1, "Routine Information Releases", has been removed.

-   The "Open Government Legislation" section has been updated to
    clarify the intended meaning and provide more details on what
    information must be included in a FOIA request. A website for
    further information is provided. (GPM 812.2 "Open Government
    Legislation")

-   The wording in the "Release of Project Reports" section has been
    changed slightly to enhance the intended meaning. In addition,
    information on the National Technical Information Service (NTIS) has
    been deleted now that NTIS is no longer in existence. (GPM 812.3
    "Release of Project Reports")

-   The "Environmental Impact" section has been changed to show that
    Federal agencies must consider such impacts before Federal action is
    taken. Depending on the type of project, an environmental assessment
    or impact statement may be necessary. (GPM 830 "Environmental
    Impact")

-   The national security Executive Order and CFR numerical references
    have been updated. (GPM 850 "National Security")

**[Chapter IX Reconsideration/Suspension and
Termination/Disputes/Research Misconduct]{.underline}**

-   The categories of proposal types that are exempted from the NSF
    Reconsideration Policy have been expanded for consistency with
    current NSF policy and practice. (GPM 900 "Reconsideration of
    Proposals Declined or Returned by the Foundation")

-   During reconsideration by an Assistant Director or the Deputy
    Director of NSF, if additional reviews are sought, they are subject
    to standard merit review procedures. (GPM 900 "Reconsideration of
    Proposals Declined or Returned by the Foundation")

-   The previous section entitled "Misconduct in Science" has been
    renamed "Research Misconduct". The "other serious deviation from
    accepted practices" and retaliation language have been removed from
    the definition of misconduct. An investigation consists of a formal
    development of a factual record, in addition to examination and
    evaluation of that record. The section has been clarified to show
    that the NSF Deputy Director adjudicates research misconduct
    proceedings and the NSF Director decides appeals. (GPM 931 "NSF
    Policies and Responsibilities")

-   The role of grantees regarding research misconduct has been expanded
    to provide adequate safeguards for subjects of allegations as well
    as informants. Grantees should notify NSF if there is indication of
    possible violations of civil or criminal law, if public health or
    safety are at risk or if the research activities should be
    suspended. (GPM 932 "Role of Grantees")

## 

## Exhibits Deleted from the Grant Policy Manual

-   Exhibit I-1 -- NSF Organization Chart

-   Exhibit III-2 -- NSF Grant Transfer Request (NSF Form 1263)

-   Exhibit IV-1 -- Request for Advance or Reimbursement Instructions
    (SF 270)

-   Exhibit IV-3 -- Instructions for Federal Cash Transactions Report
    (FCTR)

-   Exhibit IV-4 -- E-mail FCTR Instructions

-   Exhibit V-1 -- Important Notice 91 -- Principles Related to the Use
    and Operation of NSF-Supported Research Instrumentation and
    Facilities

-   Exhibit V-2 -- Preparation of Transfer Order

**ACRONYMS**

ABR Accomplishment-Based Renewal

ACH Automated Clearing House (U.S. Treasury)

AD Assistant Director

ADPE Automatic Data Processing Equipment

AUO Area Utilization Officer (GSA)

CFR Code of Federal Regulations

CMIA Cash Management Improvement Act

C&O Division of Contracts and Oversight

DAS Division of Administrative Services

DFM Division of Financial Management

DGA Division of Grants and Agreements

DHHS Department of Health and Human Services

DOC Department of Commerce

EFT Electronic Funds Transfer

E.O. Executive Order

FAADS Federal Assistance Award Data System

FAR Federal Acquisition Regulations

FCCOM Facilities Capital Cost of Money

FCTR Federal Cash Transactions Report

FDP Federal Demonstration Partnership - Grant General Conditions

FEMA Federal Emergency Management Agency

FOIA Freedom of Information Act

GBB Grants Bulletin Board

GC-1 Grant General Conditions

GOE Government Owned Equipment

GPG Grant Proposal Guide

GPM Grant Policy Manual

GPO Government Printing Office

GSA General Services Administration

IACUC Institutional Animal Care and Use Committee

IBC Institutional Biosafety Committee

ILS Institutional Ledger Section

IRB Institutional Review Board

IRS Internal Revenue Service

IR&D Independent Research and Development

NEPA National Environmental Policy Act

NIH National Institutes of Health

NSB National Science Board

NSF National Science Foundation

OEO Office of Equal Opportunity Programs

OGC Office of the General Counsel

OIG Office of Inspector General

OMB Office of Management and Budget

ONR Office of Naval Research

PD Project Director

PI Principal Investigator

SBA Small Business Administration

> SBIR Small Business Innovation Research Program

SF Standard Form

SGER Small Grants for Exploratory Research

USC United States Code

USDA U. S. Department of Agriculture

**TABLE OF CONTENTS**

**CHAPTER I \-- BASIC INFORMATION**

100 The National Science Foundation

110 NSF Organization

111 National Science Board

112 Program Division/Office

113 Division of Grants and Agreements

114 Division of Contracts and Oversight

115 Division of Financial Management

116 Office of the General Counsel

117 Office of Equal Opportunity Programs

118 Office of Inspector General

120 The NSF Grant Policy Manual

121 Purpose and Applicability

122 General Organization and Citation

123 Changes

130 Proposal Submission and Merit Review

Exhibit I-1 Statutes, Executive Orders and Other Directives

**CHAPTER II \-- NSF AWARDS**

200 Background

210 Definitions

220 NSF-Grantee Relationships

221 Basic Requirements

222 Acceptance of Assistance Agreements

230 Grant Instrument

240 NSF Grant Conditions

250 NSF Grant Periods

251 Definitions

252 Significance of Grant Period

253 Changes in Grant Periods

253.1 Expiration Date

253.2 No-Cost Extension

253.3 Two-Year Extensions for Special Creativity

# 260 Additional Funding Support 

261 Types of Additional Funding Support

262 Renewed Support (Standard Grants)

263 Continued Support (Continuing Grants)

264 Supplemental Support

**CHAPTER III \-- GRANT ADMINISTRATION**

300 Monitoring Project Performance

301 Grantee Responsibilities

302 Grantee Notifications to NSF and Requests for NSF Approval

310 Changes In Project Direction or Management

311 Changes in Objectives, Scope or Methodology

311.1 Changes in Objectives or Scope

311.2 Changes in Methodology

311.3 Significant Changes, Delays or Events of Unusual Interest

312 Changes in PI/PD or Person-Months Devoted to the Project

312.1 Background

312.2 Basic Requirements

312.3 Short-Term Absence of PI/PD

312.4 Long-Term Absence of PI/PD

312.5 Change in Person-Months Devoted to the Project

312.6 Withdrawal of PI/PD

312.7 Substitute PI/PD

312.8 Disposition of a Grant When a PI/PD Transfers from One

Organization to Another Organization

313 Contracting or Transferring the Project Effort (Subawards)

320 Changes In The Grant Budget

321 OMB Directives

322 Grant Changes and Approvals

330 Cost Sharing And Matching

331 Basis for NSF Requirements

331.1 Statutory Requirement

331.2 OMB Directive

332 Significance of Cost Sharing Promises in Proposals

333 NSF Cost Sharing Requirements

333.1 Unsolicited Research Projects

333.2 Solicited Research Projects

333.3 Cost Sharing Amount

333.4 Cost Sharing Method

333.5 Method of Providing Contributions

333.6 Cost Sharing Records and Reports

334 NSF Matching Requirement

340 Technical Reporting Requirements

341 Annual Project Reports

342 Final Project Report

343 Final Technical Information Items

344 Compliance with Technical Reporting Requirements

345 Grant Closeout

350 Records Retention And Audit

Exhibit III-1 Grantee Notifications To and Requests For Approval

From The National Science Foundation

**CHAPTER IV \-- FINANCIAL REQUIREMENTS AND PAYMENTS**

400 Background

410 Standards For Financial Management

420 Definitions

430 Payment Requirements

431 General

432 Payment Policies

433 Request for Advance

434. Request for Reimbursements

435 Working Capital Advance

436 ACH Vendor Express

437. Use of Women-Owned and Minority-Owned Banks

440 Cash Refunds And Credits To NSF

441 Final Unobligated Balance

442. Erroneous Payments

443 Interest Earned on Advance Payments

444 Program Income

445 Other Cost Credits

### 450 Grant Financial Reporting Requirements 

451 Quarterly Disbursement Reporting-Federal

Cash Transactions Report (FCTR)

452 Final Disbursement Reporting

Exhibit IV-1 ACH Vendor/Miscellaneous Payment Enrollment Form (SF 3881)

**CHAPTER V \-- GRANTEE STANDARDS**

500 Background

501. Prospective Grantee Organization and Management Data

510 Conflict Of Interest Policies

520 Financial Management Systems Standards

530 Procurement Standards

### 540 Property Management Standards 

541 Background

542 Title to Equipment

542.1 Title to Equipment - Non-Profit Organizations

542.2 Title to Equipment - Commercial Organizations

543 Conditions for Acquisition and Use of Equipment

544 Principles Relating to Use of NSF-Supported Research Instrumentation
and Facilities

545. Property Management Standards When Title Retained by NSF

546 Excess Government Personal Property

546.1 Policy

546.2 Eligibility

> 546.3 Procedures

546.4 Visiting Holding Agency Facilities

546.5 Dollar Limitation

546.6 Restrictions

546.7 Costs

546.8 Title

546.9 Accountability and Recordkeeping

**CHAPTER VI \-- ALLOWABILITY OF COSTS**

### Basic Considerations 

601 Federal Cost Principles

601.1 Applicability to Grantees

601.2 Applicability to Subrecipients

601.3 Conflicting Guidelines

602 Other Considerations

602.1 Maximum Obligation

602.2 Pre-Award Costs

602.3 Post-Expiration Costs

603 Prior Approval

> 603.1 OMB Directive

603.2 NSF Prior Approval Policy

610 Direct Costs

611. Salaries, Wages and Fringe Benefits

     611.1 Salaries and Wages

     611.2 Fringe Benefits

612. Equipment

612.1 Related Equipment Guidelines

> 612.2 Definitions

612.3 Special Purpose Equipment

612.4 General Purpose Equipment

613 Materials and Supplies

614 Travel Costs

615. Computer Costs

616 Consultant Services

> 616.1 Outside Consultants

616.2 Intra-University Consulting

616.3 Federal Employees

617 Publication, Documentation and Dissemination

618 Participant Support Costs

618.1 General

618.2 Stipends or Subsistence Allowances

> 618.3 Travel Allowances

620 Other Direct Costs

621. Rearrangements and Alterations

     622 News Release Costs

622. Rental or Lease of Facilities or Special Purpose Equipment

624 Relocation Costs

625 Meetings and Conferences

630 Indirect Costs

631 Background

632 Indirect Costs in Proposals for NSF Support

633 NSF Policy

633.1 Basic Policy

633.2 Exceptions to Basic Policy

634 Underrecovery of Indirect Costs

635 Rebudgeting of Indirect Cost Funds Provided Under NSF Grants

636 NSF Cognizant Organizations

640 Fee Payments Under NSF Grants

## 

## CHAPTER VII \-- OTHER GRANT REQUIREMENTS

700 Non-Discrimination Statutes

701 General

702 Civil Rights Act of 1964

> 702.1 Background

702.2 NSF Regulations

702.3 Assurance of Compliance

702.4 Civil Rights Assurance-Subrecipients

> 702.5 Grant Provisions

703 Rehabilitation Act

703.1 Background

703.2 NSF Regulations

> 703.3 Assurance of Compliance

703.4 Section 504 Assurance-Subrecipients

703.5 Grant Conditions

704 Title IX - Sex Discrimination

704.1 Background

> 704.2 NSF Regulations
>
> 704.3 Grant Conditions

705 Age Discrimination Act

705.1 Background

> 705.2 NSF Regulations

705.3 Grant Conditions

706 Equal Employment Opportunity Under E.O. 11246

> 706.1 Background

706.2 Grant Conditions

### Protection Of Living Organisms 

711 Human Subjects

711.1 Background

711.2 NSF Regulation

> 711.3 Certification of Compliance

712 Research Involving Recombinant DNA Molecules

712.1 Applicability

712.2 Policy

712.3 Research Requiring Prior Approval of the Director, NIH

712.4 Recombinant DNA Research Outside the U.S.

713 Animal Welfare Requirements

714. Marine Mammal Protection Act

##### Government Permits and Activities Abroad

720 Construction, Rearrangements and Alterations

721 Davis-Bacon Act

722 Bonding and Insurance

723 Flood Insurance

724 Seismic Safety of Buildings

730 Intellectual Property

731. Patents and Inventions

     731.1 Background

     731.2 National Science Foundation Patent Policy

     731.3 Standard Patent Rights Clause

> 731.4 Electronic Invention Handling

732. Copyright

> 732.1 Rights to Copyrightable Material

732.2 Standard Copyrightable Material Clause

733 Special Patent and Copyright Situations

733.1 Special Grant Provisions

733.2 Grants Not Primarily for Research

> 733.3 Grants Affected by International Agreements

734 Dissemination and Sharing of Research Results

735 Tangible Property

> 735.1 Background

735.2 Legal Rights to Tangible Property

740 Publication/Distribution Of Grant Materials

741 NSF Policy

742 Costs

743 Responsibilities

744 Grantee Obligations

750 Program Income

751. Background

752 Definition

753 NSF Policy

760 International Considerations

761 Travel to Foreign Countries

761.1 Policy

761.2 Use of U.S.-Flag Air Carriers

761.3 Use of Foreign-Flag Air Carriers

762 Charter Flights

763 Projects in a Foreign Country

764 Passports and Visas

765 International Travel Grants

Exhibit VII-1 Assurance of Compliance

**CHAPTER VIII \-- OTHER PROPOSAL AND AWARD CONSIDERATIONS**

800 Intergovernmental Review Of Federal Programs

810. Handling of Information

811 Questionnaires: Data Collection Under NSF Grants

811.1 Paperwork Control

2.  NSF Policy

812 Release of Information by NSF

812.1 Press Releases

812.2 Open Government Legislation

812.3 Release of Project Reports

820 Tax Status

830 Environmental Impact

840. Protection Of Properties In The National Register Of Historic
     Places

850 National Security

860 Miscellaneous

861 Liabilities and Losses

862. Pre-College Students and Experimental Curriculum Development
     Projects

863 Use of Metric Measurements

**CHAPTER IX \-- RECONSIDERATION/ SUSPENSION AND TERMINATION/**

**DISPUTES/RESEARCH MISCONDUCT**

900 Reconsideration Of Proposals Declined Or Returned By The Foundation

901 General

902 Policy

903 Explanations by the NSF Program Officer or Division Director

#  904 Reconsideration by the Assistant Director 

905 Further Reconsideration by the Deputy Director

910 Suspension And Termination Procedures

911 Definitions

912. Suspension and Termination

912.1 NSF Policy

912.2 Procedures for Suspension or Termination by NSF

913 Termination by Mutual Agreement

913.1 NSF Policy

913.2 Procedures

914 NSF Suspension or Termination Review Procedure

### Informal Resolution Of Grant Administration Disputes 

921 Background

922 Scope of Post-Award Disputes Covered

####  923 Procedures  {#procedures .unnumbered}

930 Research Misconduct

931. NSF Policies and Responsibilities

932 Role of Grantees

933 Reporting Possible Misconduct

**SUBJECT INDEX**

**CHAPTER I**

**BASIC INFORMATION**

This chapter provides basic information about the National Science
Foundation, its organization, grant policies and this Manual. It
consists of the following topics:

## 100 THE NATIONAL SCIENCE FOUNDATION

# 110 NSF ORGANIZATION

**120 THE NSF GRANT POLICY MANUAL**

**130 PROPOSAL SUBMISSION AND MERIT REVIEW**

**100 THE NATIONAL SCIENCE FOUNDATION**

a\. The National Science Foundation (NSF) is an independent Federal
agency created by the National Science Foundation Act of 1950, as
amended (42 USC 1861-75). The Act states the purpose of the NSF is \"to
promote the progress of science; \[and\] to advance the national health,
prosperity, and welfare by supporting research and education in all
fields of science and engineering.\"

b\. The Foundation carries out its statutory responsibilities for the
support of research, education and related activities, through a number
of programs. The *NSF Guide to Programs* and other announcements and
solicitations contain information about NSF programs, their objectives
and timing for the submission of proposals. (See NSF *Grant Proposal
Guide* for information on proposal preparation guidelines.)

c\. NSF has no programs involving the construction of public works in
metropolitan areas, no development assistance programs, no programs
requiring State plans as a condition of assistance, none involving
coordination of planning in multi-jurisdictional areas and no programs
of grants to State and local governments as defined in Section 6501(4)
of Title 31 of the United States Code (USC).

**110 NSF ORGANIZATION**

The NSF organizations/offices described below are normally of most
direct interest to grantees. Consult the NSF website at
<http://www.nsf.gov/home/nsforg/orglist.htm> for the most current
listing of NSF offices/directorates.

**111 National Science Board**

The National Science Board establishes the policies of the National
Science Foundation within the framework of applicable national policies
set forth by the President and the Congress. The Board is composed of 24
members, representing a cross section of American leadership in science
and engineering research and education; appointed by the President to
six-year terms, with one third appointed every two years; and selected
solely on the basis of established records of distinguished service. The
NSF Director is a member ex officio of the Board. In addition to
establishing the policies of the Foundation, the Board along with the
Director, recommends and encourages the pursuit of national policies for
the promotion of research and education in science and engineering.

**112 Program Division/Office**

Program Divisions/Offices are responsible for the scientific, technical
and programmatic review and evaluation of proposals and for recommending
that proposals be declined or awarded. The scientific, engineering
and/or educational aspects of an award will be monitored by the NSF
Program Officer identified in the award letter.

**113 Division of Grants & Agreements**

The Division of Grants and Agreements (DGA) is responsible for the
business, financial and administrative review of all recommended grants,
cooperative agreements and other assistance awards and assuring that
they are consistent with applicable policies, regulations, directives
and fund certifications. DGA, through the Policy Office, is responsible
for NSF pre- and post-award policy development, coordination and
issuance and for development of, and providing guidance on, policies and
procedures for NSF\'s electronic proposal and award systems. NSF Grants
Officers are the only NSF officials with delegated authority to issue
grants, cooperative agreements, and other assistance awards and to
obligate NSF funds for expenditures under such arrangements. DGA is also
responsible for issuing all amendments and certain approvals under these
awards, for monitoring awardees\' compliance with terms and conditions,
and for the administration and closeout of these awards.

DGA Grants Officers provide pre- and post-award technical assistance on
the aforementioned policies, regulations, and directives, both to NSF
program officials and awardees. Such assistance is provided through a
variety of venues, including on-site visits to awardee institutions,
outreach forums and by serving on Project Advisory Teams.

**114 Division of Contracts and Oversight**

The Division of Contracts and Oversight (C&O) is responsible for
providing acquisition support, cost analysis and audit resolution for
the Foundation. The Contracts Branch is responsible for the planning,
solicitation, negotiation, award and administration of NSF contracts
including establishment of government approved administrative systems
for large contracts. The Oversight Branch performs pre-award cost
analyses including financial system reviews, resolves audit findings
pertaining to the allowability, allocability and appropriateness of
costs claimed under all NSF awards (including grants, cooperative
agreements and contracts), and negotiates indirect cost rates for NSF
cognizant organizations.

The Division is also responsible for participating in outreach
activities pertaining to policy, cost, and financial issues, for a wide
variety of professional organizations.

**115 Division of Financial Management**

The Institutional Ledger Section (ILS) of the Division of Financial
Management (DFM) is available to assist the grantee financial and
business official in matters of payment and financial reporting
discussed in Chapter IV of this Manual.

**116 Office of the General Counsel**

The Office of the General Counsel (OGC) is the legal advisor and
advocate for the Foundation, providing legal advice and assistance on
all aspects of the Foundation\'s programs, policies, and operations, as
well as areas affecting science and technology more broadly. Advice is
provided in a wide variety of areas, such as: contracts and grants;
intellectual property; conflicts of interest; employee and labor
relations; privacy (including Freedom of Information Act (FOIA), the
Privacy Act and the Sunshine Act); civil rights; health, safety and
environment; public regulation of research; Federal fiscal and
administrative law and procedure; international law and agreements; and
national security restrictions of scientific research (including export
controls).

**117 Office of Equal Opportunity Programs**

The Office of Equal Opportunity Programs (OEOP) is responsible for
responding to all civil rights matters pertaining to NSF programs or
activities receiving Federal financial assistance. (See GPM 700 for
additional information.)

**118 Office of Inspector General**

The Office of Inspector General (OIG) is an independent oversight office
that reports directly to the National Science Board and the Congress. It
is responsible for conducting audits, reviews, and investigations of NSF
programs and organizations that receive NSF funding. OIG also evaluates
allegations of research misconduct, such as plagiarism or the
falsification or fabrication of data, involving researchers who request
or receive NSF funding (see GPM 931, "NSF Policies and
Responsibilities"). The OIG staff includes scientists, attorneys,
certified public accountants, investigators, evaluators, and information
technology specialists. OIG audits focus on NSF's internal agency
programs, as well as grants, contracts, and cooperative agreements
funded by NSF. Their purpose is to ensure that the financial,
administrative, and program activities of NSF and its awardee
organizations are conducted efficiently and effectively. OIG
investigations focus on program integrity and possible financial or
nonfinancial wrongdoing by organizations and individuals who submit
proposals to, receive awards from, conduct business with, or work for
NSF. Grant recipients and administrators should contact OIG
(1-800-428-2189) to report any instances of possible misconduct, fraud,
waste, or abuse.

**120 THE NSF GRANT POLICY MANUAL**

**121 Purpose and Applicability**

a\. Purpose. This NSF *Grant Policy Manual* (GPM) sets forth NSF
policies regarding the award and administration of grants and implements
Office of Management and Budget (OMB) Circular A-110, *Uniform
Administrative Requirements for Grants and Agreements with Institutions
of Higher Education, Hospitals, and Other Non-Profit Organizations*, and
45 CFR §602 (the Common Rule implementing OMB Circular A-102), *Uniform
Administrative Requirements for Grants and Cooperative Agreements to
State and Local Governments*.[^1] This Manual also implements other OMB
Circulars, Public Laws, Executive Orders (E.O.) and other directives[^2]
listed in Exhibit I-1 insofar as they apply to grants, and is issued
pursuant to the authority of Section 11(a) of the NSF Act (42 USC
§1870).

b\. Applicability. This Manual is applicable to NSF grants and
cooperative agreements, unless noted otherwise in the award instrument.
This Manual does not apply to NSF contracts.

**122 General Organization and Citation**

The GPM is organized into chapters that correspond, in general, to the
process from issuance and administration of a grant through closeout.
Other requirements or considerations that either are not universally
applicable or which do not necessarily follow the award cycle are
contained in Chapters VII-IX. Chapters are subdivided into sections that
cover single subjects within the scope of the chapter. Specific sections
may be cited by the section number, e.g., GPM 122, "General Organization
and Citation."

**123 Changes**

The GPM is periodically revised to update existing information, reflect
changes in NSF policies and procedures, and incorporate additions or
changes in applicable Federal statutes or regulations. The NSF website
will always display the most current version of the GPM. Notification of
periodic updates or revisions to the GPM will be sent electronically to
users via the Custom News Service. Questions or comments concerning GPM
chapters and subchapters should be directed to the Policy Office, which
can be reached by e-mail at <policy@nsf.gov>.

**130 PROPOSAL SUBMISSION AND MERIT REVIEW**

General guidance for the preparation, (content, format, budget, etc.),
submission, review and processing of proposals is contained in the
*Grant Proposal Guide* (GPG). Some NSF programs issue or utilize more
specific program solicitations that may modify the guidance contained in
the GPG. The latest version of the GPG is available electronically on
NSF's website at
[http://www.nsf.gov/pubsys/ods/getpub.cfm?gpg](http://www.nsf.gov/pubsys/ods/getpub.cfm?gpg ).

**Exhibit I-1**

###### STATUTES, EXECUTIVE ORDERS AND OTHER DIRECTIVES

Following are lists of the various statutes, executive orders and other
directives referred to or implemented by the GPM section indicated.

**1. Statutes (Names in quotes are unofficial)**

*Title* *United States Code* *GPM*

Age Discrimination Act 42 USC §§6101 et seq. 705

Animal Welfare Act 7 USC §§2131-59 713

Bayh-Dole Act 35 USC §§200-212 730

Cash Management Improvement Act 31 USC §6503 443

Civil Rights Act of 1964, Title IX 42 USC §§2000d et seq. 702

Cost-type Research and Development 41 USC §254(a) 630

Contracts with Educational Institutions

Davis-Bacon Act 40 USC §§276a et seq. 721

Demonstration Cities and Metropolitan 42 USC §3334 800

Development Act of 1966, Sec. 204

Education Amendments of 1972, Title IX 20 USC §§1681-86 704

Federal Grant and Cooperative 31 USC §§6301-08 210

Agreement Act of 1977

Freedom of Information Act 5 USC §552 812.3

Government in the Sunshine Act 5 USC §552b 812.3

Intergovernmental Cooperation Act of 31 USC §6502 800

1968

Internal Revenue Code of 1954 26 USC 501(c) 730

International Air Transportation Fair 49 USC §1517 760

Competitive Practices Act of 1974

Marine Mammal Protection Act of 1972 16 USC §§1361-1421h 714

Metric Conversion Act of 1975, as amended 15 USC §205a-k 863

National Environmental Policy Act 42 USC §4332 830

of 1969, Sec. 102

National Flood Insurance Act of 1968 42 USC §4012a 723

42 USC §4106

National Historic Preservation Act 16 USC §470 840

National Science Foundation Act 42 USC §§1861-75 100, 120, 333, 722, 731

of 1950, as amended

Paperwork Reduction Act of 1980 44 USC §§3501-11 811.1

Rehabilitation Act of 1973, Sec. 504 29 USC §794 703

Resource Conservation and Recovery Act 42 USC §6962 830

Single Audit Act 31 USC §§7501-07 350

**2. Executive Orders**

*Number* *Short Title* *GPM*

11246 Equal Employment Opportunity, as amended 701, 706

12250 Leadership and Coordination of Nondiscrimination Laws 702

11988 Floodplain Management 723

11593 Protection and Enhancement of the Cultural 840

Environment

12958 Classified National Security Information 850

12372 Intergovernmental Review of Federal Programs 800

12549 Debarment and Suspension 912

12699 Seismic Safety of Federal and Federally-assisted 724

or Regulated New Building Construction

12770 Metric Usage in Federal Government Programs 863

**3. NSF Regulations (45 CFR, Chapter VI)**

*Part Number* *Subject* *GPM*

602 Uniform Administrative Requirements Entire Manual

for Grants and Cooperative Agreements

to State and Local Governments

605, 611, Nondiscrimination in Federally Assisted Programs 700

617, 618

612, 613, Freedom of Information, Privacy, and 812.3

and 614 Government in the Sunshine Acts

620 Debarment and Suspension and Drug-Free Workplace 912, 930

640 National Environmental Policy Act 830

650 Patents 731

660 Intergovernmental Review of NSF Programs 800

689 Research Misconduct 930

690 Protection of Human Subjects 711

**4. Other Federal Regulations**

*Title* *Code of Federal GPM*

*Regulations*

Contract Cost Principles and Procedures 48 CFR §31 600

(Federal Acquisition Regulations)

Controlling Paperwork Burdens on the Public 5 CFR §1320 811

Council on Environmental Quality 40 CFR §§1500-1508 830

Disposition (Government-owned Federal 41 CFR §201.23 546.6

Information Processing Equipment)

Equal Employment Opportunity 41 CFR §60 706

Metric Usage in Federal Government Programs 3 CFR,1991 comp 863

Principles for Determining Costs Applicable to 45 CFR, Part 74, 601

Research and Development Under Grants Appendix E

and Contracts with Hospitals

Withdrawal of Cash from the Treasury for 31 CFR, 205 430

Advances Under Federal Grant and Other

Programs

Protection of Historic and Cultural Properties 36 CFR §800 840

Rights to Inventions Made by Nonprofit 37 CFR §§401 et seq. 731

Organizations and Small Business Firms

Under Government Grants, Contracts,

and Cooperative Agreements

Rules and Procedures for Funds Transfers 31 CFR §205 Chapter 4

Small Business Size Regulations 13 CFR §121 501

Utilization of Personal Property 41 CFR §101.43 543

**5. Office of Management and Budget Circulars**

*Number* *Short Title* *GPM*

A-21 Cost Principles for Educational Institutions 601

A-87 Cost Principles for State and Local Governments 601

A-110 Uniform Administrative Requirements for Grants and Entire Manual

Other Agreements to Non-Profit Organizations

A-122 Cost Principles for Non-Profit Organizations 601

A-133 Audits of States, Local Governments and Non-Profit 350

Organizations

**6. How to Obtain**

Volumes of the *United States Code* and the *Code of Federal
Regulations* can be purchased from the Government Printing Office by
contacting Superintendent of Documents, Attn: New Orders, Box 371954,
Pittsburgh, PA 15250-7954. Telephone orders can be made with a credit
card by dialing: (202) 512-1800 (voice), (202) 512-2250 (fax), or (202)
512-2265 (TDD). In addition, the Government Printing Office distributes
these documents to U.S. Government Depository Libraries in each state.
These documents are also often available in the reference sections of
major libraries.

Copies of pending and enacted federal legislation can be requested by
bill or law number by calling either the Senate Document Room at (202)
224-7701 or the House Document Room at (202) 225-3456. For further
information about ordering other congressional documents, contact the
Government Printing Office on (202) 512-2465.

Copies of *Executive Orders* and *Office of Management and Budget
Circulars* can be obtained by contacting: The Executive Office of the
President (EOP), Publications Distribution Services, 725 17th Street,
NW, Room 2200, Washington, DC 20503 or by telephone at (202) 395-7332.
In addition, electronic copies of almost all of these documents are
available on the World Wide Web. A convenient starting point for
locating them is the General Services Administration's Fedlaw site at
http://fedlaw.gsa.gov/.

**CHAPTER II**

**NSF AWARDS**

This chapter discusses the award process and specifically highlights the
following topics:

**200 BACKGROUND**

**210 DEFINITIONS**

**220 NSF-GRANTEE RELATIONSHIPS**

**230 GRANT INSTRUMENT**

**240 NSF GRANT CONDITIONS**

**250 NSF GRANT PERIODS**

**260 ADDITIONAL FUNDING SUPPORT**

**200 BACKGROUND**

The types of activities funded by NSF and the purposes of NSF funding
vary. Consequently, the degree of NSF responsibility for and the
management control of such activities also varies. NSF traditionally
uses grants for fundamental research and other support activities. The
key factor in determining the appropriate award terms and conditions is
the type of project that is to be funded, not the type of performing
organization which will be the recipient of the award or the NSF program
recommending the award.

**210 DEFINITIONS**

a\. An AUTHORIZED ORGANIZATIONAL REPRESENTATIVE is the administrative
official who on behalf of the proposing organization is empowered to
make certifications and assurances and can commit the organization to
the conduct of a project that NSF is being asked to support as well as
adhere to various NSF policies and grant requirements.

b\. ASSISTANCE AWARDS are awards that entail the transfer of money,
property, services or other things of value from the Federal government
to a State or local government or other recipient to accomplish a public
purpose of support or stimulation. In the case of NSF, assistance awards
involve the support or stimulation of scientific and engineering
research, science and engineering education or other related activities.
NSF is authorized to use grants or cooperative agreements for this
purpose.

c\. A GRANT\* is a type of assistance award and a legal instrument which
permits an executive agency of the Federal government to transfer money,
property, services or other things of value to a grantee when no
substantial involvement is anticipated between the agency and the
recipient during the performance of the contemplated activity. Grants
are the primary mechanism of NSF support. NSF awards the following types
of grants:

1\. A STANDARD GRANT is a type of grant in which NSF agrees to provide a
specific level of support for a specified period of time with no
statement of NSF intent to provide additional future support without
submission of another proposal.

2\. A CONTINUING GRANT, is a type of grant in which NSF agrees to
provide a specific level of support for an initial specified period of
time, usually a year, with a statement of intent to provide additional
support of the project for additional periods, provided funds are
available and the results achieved warrant further support.

3\. A COST REIMBURSEMENT GRANT is a type of grant under which NSF agrees
to reimburse the grantee for work performed and/or costs incurred by the
grantee up to the total amount specified in the grant. Such costs must
be allowable in accordance with the applicable cost principles (e.g.,
OMB Circular A-21, *Cost Principles for Educational Institutions* or
A-122, *Cost Principles for Non-Profit Organizations*). Accountability
is based primarily on technical progress, financial accounting and
fiscal reporting. Except under certain programs and under special
circumstances, NSF grants and cooperative agreements are normally cost
reimbursement type awards.

4\. A FIXED AMOUNT AWARD is a type of grant used in certain programs and
situations under which NSF agrees to provide a specific level of support
without regard to actual costs incurred under the project. The award
amount is negotiated using the applicable cost principles or other
pricing information as a guide. This type of grant reduces some of the
administrative burden and record-keeping requirements for both the
grantee and NSF. Except under unusual circumstances, such as
termination, there is no governmental review of the actual costs
subsequently incurred by the grantee in performance of the project.
There typically is a requirement for the grantee to certify that the
approximate number of person-months or other activity called for in the
grant was performed. Payments are based on meeting specific requirements
of the grant and accountability is based primarily on technical
performance and results.

d\. A COOPERATIVE AGREEMENT\* is a type of assistance award which may be
used when the project being supported requires substantial agency
involvement during the project performance period. Substantial agency
involvement may be necessary when an activity: is technically or
managerially complex; requires extensive or close coordination with
other Federally supported work; or helps assure suitability or
acceptability of certain aspects of the supported activity. Examples of
projects which might be suitable for cooperative agreements are systemic
reform efforts, research centers, policy studies, large curriculum
projects, multi-user facilities, projects which involve complex
subcontracting, construction or operations of major in-house university
facilities and major instrumentation development.

e\. A GRANTEE\* is the organization or other entity that receives a
grant and assumes legal and financial responsibility and accountability
both for the awarded funds and for the performance of the
grant-supported activity. NSF grants are normally made to organizations
rather than to individual Principal Investigator/Project Director(s) .
Categories of eligible proposers may be found in GPG Chapter I.

f\. PRINCIPAL INVESTIGATOR/PROJECT DIRECTOR (PI/PD) is the individual
designated by the grantee, and approved by NSF, who will be responsible
for the scientific or technical direction of the project. The term
\"Principal Investigator\" generally is used in research projects, while
the term \"Project Director\" generally is used in science and
engineering education and other projects.

\* For purposes of this Manual, except where explicitly noted, the term
"grant" is interchangeable with the term "cooperative agreement", and
the term "grantee" is interchangeable with the "awardee" of a
cooperative agreement.

**220 NSF-GRANTEE RELATIONSHIPS**

**221 Basic Requirements**

a\. Grants will be used by NSF when the accomplishment of the project
objectives requires minimal NSF involvement during performance of the
activities. Grants establish a relationship between NSF and the grantee
in which:

1\. NSF agrees to provide up to a specified amount of financial support
for the project to be performed under the conditions and requirements of
the grant. NSF will monitor grant progress and assure compliance with
applicable standards.

2\. The grantee agrees to the performance of the project, to the prudent
management of the funds provided and to carry out the supported
activities in accordance with the provisions of the grant. (See GPM 230,
"Grant Instrument", for the documents that comprise an NSF grant.)

b\. Cooperative agreements will be used by NSF when the accomplishment
of the project objectives requires substantial NSF technical or
management involvement during performance of the activities.

1\. Cooperative agreements will specify the extent to which NSF will be
required to advise, review, approve or otherwise be involved with
project activities, as well as require more clearly defined
deliverables.

2\. Although active NSF involvement may be necessary under cooperative
agreements, awardees still have primary management responsibility for
conduct of their projects. To the extent that NSF does not reserve
responsibility for coordinating or integrating the project activities
with other related activities or does not assume a degree of shared
responsibility for certain aspects of the project, all such
responsibilities remain with the awardee. As appropriate, NSF may
provide advice, guidance or assistance of a technical, management, or
coordinating nature and require NSF approval of specific decisions,
milestones, procedures or subawards. While NSF will monitor cooperative
agreements, it will not assume overall control of a project or
unilaterally change or direct the project activities. All cooperative
agreements will state the nature and extent of expected NSF involvement
to ensure that the responsibilities of each party are fully understood.

3\. Some cooperative agreements are funded through the Foundation's
Major Research Equipment and Facilities Construction (MREFC) account.
The MREFC appropriation provides a separate budget account for major
research equipment and facilities. Once an award for an MREFC project is
established with MREFC funds, no other funding will be commingled with
these funds. Operating funds for MREFC activities and supplements will
be funded under a separate award to support the MREFC activities. The
awardee is required to segregate MREFC from Operations accounts to avoid
the commingling of MRE funds with other appropriations under NSF
assistance awards. In special cases, as in the awards for the
NSF-supported Federally Funded Research and Development Centers
(FFRDCs), a Basic Ordering Agreement (BOA) will be used as an umbrella
award, establishing the overall basic provisions of the agreements.
Separate Task Orders with specific terms and conditions will be issued
for MREFC and Operations activities.

**222 Acceptance of Assistance Agreements**

a\. Grant Acceptance. Grantees are free to accept or reject the grant.
Normally, a request to drawdown NSF funds constitutes acceptance,
however, in limited circumstances, NSF may require formal acceptance of
a grant.

b.  Cooperative Agreement Acceptance. All new cooperative agreements
    must be signed by an Authorized Organizational Representative at the
    recipient organization before the agreement becomes binding.

**230 GRANT INSTRUMENT**

a.  Composition of an NSF grant includes:

1\. the grant letter, including any special conditions applicable to the
award and any numbered amendments thereto;

2\. the budget, which indicates the amounts, by categories of expense,
on which NSF has based its support;

3\. the proposal referenced in the grant letter;

4\. the applicable NSF conditions referenced in the grant letter (see
GPM 240, "NSF Grant Conditions," for listing); and

5\. any NSF program announcement/solicitation or other documents or
special requirements incorporated by reference in the grant letter.

b\. Grant Transmission. NSF transmits grants to organizations via
e-mail. In addition to the e-mail notification, grantees can access NSF
award letters in FastLane. Sponsored projects offices are able to view,
print and/or download NSF award letters for their organizations.

**240 NSF GRANT CONDITIONS**

a\. NSF Grant Conditions. Each NSF grant letter specifically identifies
certain conditions that are applicable to, and become part of, that
award. When these conditions reference a particular GPM section, that
section becomes part of the grant requirements through incorporation by
reference.

b\. Basic Conditions. The following types of basic conditions may be
made a part of an NSF grant, as appropriate.

1\. General Conditions.

\(a\) Grant General Terms and Conditions (GC-1) are used in most NSF
grant awards;

\(b\) Federal Demonstration Partnership General Terms and Conditions
(FDP) and NSF Agency Specific Requirements are used in most grants to
participants in the FDP; and

\(c\) Small Business Innovation Research (SBIR) Phase II Grant General
Conditions are used in Phase II grants under the SBIR program.

2\. Standard Conditions. These types of conditions may either supplement
or modify the applicable General Conditions described above.

\(a\) Administration of NSF Conference or Group Travel Award Grant
Special Conditions (FL 26) are used for conference or travel grants.

\(b\) Construction Conditions are used for grants which include
rearrangements/alterations over \$25, 000 (construction).

\(c\) Fixed Amount Award General Conditions (FAA) are used in NSF fixed
amount grants. (Note: these conditions may establish different financial
and other requirements that are not generally used in cost reimbursement
type grants.)

\(d\) Cooperative Agreement Conditions[^3] (CA-1) are used under NSF
cooperative agreements.

c\. Availability. The latest version of each set of these general and
standard conditions, as well as prior archived versions, is available
electronically on NSF's website at
<http://www.nsf.gov/home/grants/grants_gac.htm>.

**250 NSF GRANT PERIODS**

**251 Definitions**

a\. EFFECTIVE DATE is the date specified in the grant letter on or after
which, except for fixed amount awards, expenditures may be charged to
the grant. With the exception of PI transfers, the effective date used
by NSF is normally either the 1st or the 15th day of the month. If no
effective date is specified, then the date of the grant letter is the
effective date. (See, however, GPM 602.2, \"Pre-Award Costs.\")

b\. EXPIRATION DATE is the date specified in the grant letter after
which expenditures may not be charged against the grant except to
satisfy obligations to pay allowable project costs committed on or
before that date. The expiration date is normally the last day of a
month.

c\. GRANT PERIOD is the period of time between the effective date and
the expiration date of an NSF grant shown as the duration.

**252 Significance of Grant Period**

a\. Except in fixed amount awards, an NSF grant gives authority to the
grantee to commit and expend funds for allowable costs (see Chapter VI)
in support of the project up to the grant amount specified in the grant
letter at any time during the grant period.

b\. Except as provided in GPM 602.2, "Pre-Award Costs", GPM 602.3,
"Post-Expiration Costs", or GPM 617, "Publication, Documentation and
Dissemination", expenditures may not be charged prior to the effective
date or subsequent to the expiration date under an NSF cost
reimbursement grant.

**253 Changes in Grant Periods**

**253.1 Expiration Date**

The expiration date may be changed as a result of approval of a request
for continued support of a continuing grant, for a no-cost grant
extension, or, in some cases, by renewed support of a standard grant, or
by approval of a request for supplemental support. If approved, the NSF
Grants Officer will issue an amendment to the grant.

**253.2 No-Cost Extension**

a\. Grantee-Approved Extension. Grantees may authorize a one-time
extension of the expiration date of the grant of up to 12 months if
additional time beyond the established expiration date is required to
assure adequate completion of the original scope of work within the
funds already made available. This one-time extension may not be
exercised merely for the purpose of using the unliquidated balances.
Grantees are not authorized to extend an award that contains a zero
balance. The grantee shall notify NSF, providing supporting reasons for
the extension and the revised expiration date, at least ten days prior
to the expiration date specified in the grant to ensure accuracy of
NSF's grant data. All grantee-approved extension notifications must be
submitted via the FastLane system. For grantee-approved extensions, no
amendment will be issued.

b\. NSF-Approved Extension.

1\. If additional time beyond the extension provided by the grantee is
required and exceptional circumstances warrant, a formal request must be
submitted to NSF. The request must be submitted to NSF at least 45 days
prior to the expiration date of the grant. The request must explain the
need for the extension and include an estimate of the unobligated funds
remaining and a plan for their use. As indicated above, that unobligated
funds may remain at the expiration of the grant is not in itself
sufficient justification for an extension. The plan must adhere to the
previously approved objectives of the project. All requests for
NSF-approved extensions must be submitted via the FastLane system.
Grantees are not authorized to extend an award that contains a zero
balance.

2\. Any NSF-approved no-cost extension will be issued by an NSF Grants
Officer in the form of an amendment to the grant specifying a new
expiration date. Grantees are cautioned not to make new commitments or
incur new expenditures after the expiration date in anticipation of a
no-cost extension.

**253.3 Two-Year Extensions for Special Creativity**

A Program Officer may recommend the extension of funding for certain
research grants beyond the initial period for which the grant was
awarded for a period of up to two years. The objective of such
extensions is to offer the most creative investigators an extended
opportunity to attack adventurous, "high-risk" opportunities in the same
general research area, but not necessarily covered by the
original/current proposal. Awards eligible for such an extension are
generally three-year continuing grants. Special Creativity Extensions
are generally initiated by the NSF Program Officer based on progress
during the first two years of a three-year grant; PIs will be informed
of such action a year in advance of the expiration of the grant.

**260 ADDITIONAL FUNDING SUPPORT**

**261 Types of Additional Funding Support**

Additional funding of a project beyond the original grant period will be
in the form of renewed support, continued support or supplemental
support.

**262 Renewed Support (Standard Grants)**

a\. Renewed support is defined as additional funding for a support
period subsequent to that provided by a standard grant. Renewals to
standard grants, if any, will be in the form of a new grant with a new
grant number. Costs incurred under the old grant cannot be transferred
to the new grant. Residual funds remaining in the old grant cannot be
transferred to the new grant.

b\. A proposal for renewed support of a project is evaluated in
competition with all other pending proposals. Instructions for
preparation of renewal proposals are contained in the GPG, Chapters II
and V.

**263 Continued Support (Continuing Grants)**

a\. Funding increments for projects being supported under continuing
grants, as defined in GPM 210, "Definitions", receive high priority
within NSF and normally are not considered in competition with proposals
for new grants or for renewed support of standard grants.

b\. Unless otherwise provided for in the original grant letter, each
increment of a continuing grant will be funded at the level indicated in
that letter without a formal request, provided the required annual
project report has been received and subject to NSF\'s judgment of
satisfactory progress and availability of funds. NSF makes every attempt
to honor continuing grant commitments. In order to adjust to changes in
the general level of funds for a particular field of science or
engineering or to major new opportunities in that field, however, NSF
may reduce continuing grant increments below the levels indicated in
original grant letters. This requires full written justification by
program staff and management review and approval. In the absence of
major unanticipated fiscal year constraints, reductions are rare.

c\. In order to obtain a committed funding increment and ensure
continuity of funding, an annual project report must be submitted
electronically via the NSF FastLane System by the PI at least three
months before the end of the period currently being funded. (See GPM
340, "Technical Reporting Requirements" for additional information on
submission of project reports.)

**264 Supplemental Support**

a\. In unusual circumstances, small amounts of supplemental funding and
up to six months of additional support may be requested to assure
adequate completion of the original scope of work. Such requests for
supplemental funding support should be submitted to the cognizant NSF
Program Officer at least two months prior to the need for the additional
funds and must be adequately justified. Program Officers may make
decisions regarding whether or not to recommend a small supplement
without merit review of the supplemental request. Requests for larger
supplements may require external merit review.

b\. A request for supplemental support must be submitted electronically
via FastLane and must include:

1\. A summary of the proposed work;

2\. A justification of the need for the supplemental funds; and

3\. A budget*,* highlighting the use by budget category of the
additional funding as distinguished from the original funding provided
in those categories of cost. While a paper signed budget is no longer
required to be submitted to NSF, AORs are required to electronically
sign the supplemental funding request via the Authorized Organizational
Representative Functions in FastLane.

c\. NSF will not approve requests for supplemental support for such
purposes as defraying the costs of increases in salaries, wages or staff
benefits or for additional indirect cost reimbursement, whether caused
by a change in the indirect cost rate or by changes in direct cost
expenditures which affect the indirect cost base. (See GPM 602.1,
\"Maximum Obligation,\" and GPM 635, \"Rebudgeting of Indirect Cost
Funds Provided Under NSF Grants.\")

d\. If approved, the NSF Grants Officer will amend the grant to provide
additional funding for the current support period. The amendment letter
will specify both the amount of supplemental funding and the cumulative
amount awarded through the expiration date, which normally will remain
unchanged.

e\. Special NSF programs such as *Research Experiences for
Undergraduates* may provide their funding through supplements to other
NSF grants. In such instances, the guidance in this section may not be
applicable.

**CHAPTER III**

GRANT ADMINISTRATION

This chapter implements various requirements contained in OMB Circular
A-110 and is applicable to all NSF grants and to all types of performing
organizations. It contains the following topics:

**300 MONITORING PROJECT PERFORMANCE**

**310 CHANGES IN PROJECT DIRECTION OR MANAGEMENT**

**320 CHANGES IN THE GRANT BUDGET**

**330 COST SHARING AND MATCHING**

**340 TECHNICAL REPORTING REQUIREMENTS**

**350 RECORDS RETENTION AND AUDIT**

**300 MONITORING PROJECT PERFORMANCE**

**301 Grantee Responsibilities**

a\. A grantee has full responsibility for the conduct of the project or
activity supported under an NSF grant and for the results achieved. The
grantee should monitor the performance of the project to assure
adherence to performance goals, time schedules or other requirements as
appropriate to the project or the terms of the grant. In order to carry
out these responsibilities, each grantee organization shall agree to
comply with the applicable Federal requirements for grants and to the
prudent management of all expenditures and actions affecting the grant.
Documentation for each expenditure or action affecting the grant shall
reflect appropriate organizational reviews or approvals, which should be
made in advance of the action. Organizational reviews are intended to
help assure that expenditures are allowable, necessary and reasonable
for the conduct of the project, and that the proposed action:

1\. is consistent with grant terms and conditions;

2\. is consistent with NSF and grantee policies;

3\. represents effective utilization of resources; and

4\. does not constitute a change in objective or scope.

b\. Notwithstanding these responsibilities, NSF continues to encourage
communication between NSF Program Officers and PI/PDs on the progress of
projects supported by NSF as well as on project changes.

c\. NSF, through authorized representatives, has the right, at all
reasonable times, to make site visits to review project accomplishments,
grantee management control systems and administration and management of
the grant and to provide technical assistance as may be required. If any
site visit is made by the Foundation on the premises of the grantee or a
subawardee under a grant, the grantee shall provide and shall require
its subawardees to provide all reasonable facilities and assistance for
the safety and convenience of the NSF representatives.

**302 Grantee Notifications to NSF and Requests for NSF Approval**

a.  Exhibit III-1 provides a listing of grantee notifications to and
    requests for approval from NSF. While the listing is not intended to
    be all-inclusive, it does highlight the most frequent areas where
    specific notifications and requests for approval are called for.

b.  All notifications and requests contained in Exhibit III-1, and
    described below, must be submitted electronically via the NSF
    FastLane system.

**310 CHANGES IN PROJECT DIRECTION OR MANAGEMENT**

**311 Changes in Objectives, Scope or Methodology**

**311.1 Changes in Objectives or Scope**

Neither the phenomena under study nor the objectives of the project
stated in the proposal or agreed modifications thereto should be changed
without prior NSF approval. Such changes should be proposed to the
cognizant NSF Program Officer by the PI/PD. If approved by NSF, the
Grants Officer will amend the grant.

**311.2 Changes in Methodology**

NSF believes that the PI/PD, operating within the established policies
of the grantee organization, should feel free to pursue interesting and
important leads that may arise during the conduct of a research (or
other grant-supported) project or to adopt an alternative approach which
appears to be a more promising means of achieving the objectives of the
project. Significant changes in methods or procedures should be reported
to appropriate grantee official(s) and the cognizant NSF Program
Officer.

**311.3 Significant Changes, Delays or Events of Unusual Interest**

a\. In the event there are problems, delays or adverse conditions that
will materially affect the ability to attain the objectives of the
project or to meet such time schedules as may have been proposed,
appropriate grantee officials should notify the NSF Program Officer.

b\. NSF should be informed of any events of unusual interest that occur
during the course of the project. Reports, communications or photographs
may be directed to the NSF Program Officer.

**312 Changes in PI/PD or Person-Months Devoted to the Project**

**312.1 Background**

The NSF decision to support or not to support a proposed project is
based to a considerable extent upon its evaluation of the proposed
PI/PD's knowledge of the field of study and his/her capabilities to
conduct the project in an efficient and productive manner. This is
reflected in the NSF criteria for the selection of projects for funding
(see GPG Chapter III). The named PI/PD should be continuously
responsible for the conduct of the project and be closely involved with
the effort.

**312.2 Basic Requirements**

If the PI/PD plans to, or becomes aware that he/she will: (a) devote
substantially less effort to the project than anticipated in the
approved proposal; (b) sever his/her connection with the grantee
organization; or (c) otherwise relinquish active direction of the
project, he/she shall advise the appropriate official at the grantee
organization, who shall initiate action appropriate to the situation
under the guidelines that follow.

**312.3 Short-Term Absence of PI/PD**

If the PI/PD will be absent from the project for short periods of up to
three months, he/she shall notify appropriate officials of the grantee
organization. The grantee shall then notify the NSF Program Officer of
arrangements for conduct of the project during the PI/PD's temporary
absence.

**312.4 Long-Term Absence of PI/PD**

a\. In the event the PI/PD will be away from the project for a period
greater than three months (e.g. sabbatical leave) but intends to return,
arrangements for oversight of the project shall be sent electronically
to NSF for approval. This information must be provided at least 30 days
before departure or as soon as practicable after the prospective absence
is known. The NSF Program Officer will provide written approval to the
grantee if the arrangements are satisfactory, but no formal amendment to
the grant will be made.

b\. If the arrangements are not satisfactory to NSF, the grant may be
terminated as prescribed in GPM 910, "Suspension and Termination
Procedures." If the PI/PD's temporary activities might constitute a
conflict of interest (e.g., working for a Federal agency), a substitute
PI/PD shall be appointed as described in GPM 312.7, "Substitute PI/PD."

**312.5 Change in Person-Months Devoted to the Project**

If the PI/PD will devote substantially less time to the project than
anticipated in the proposal, (defined in the NSF Grant Conditions (GC-1)
as a reduction of 25% or more in time) he/she should consult with
appropriate officials of the grantee organization and with the NSF
Program Officer. If either determines that the reduction of effort will
substantially impair the successful execution of the project, the
Program Officer will consult the NSF Grants Officer. The NSF Grants
Officer may:

a\. request the grantee to nominate a replacement PI/PD acceptable to
the NSF Program Officer;

b\. initiate the termination procedures described in GPM 910,
"Suspension and Termination Procedures"; or

c\. negotiate an appropriate modification to the grant.

**312.6 Withdrawal of PI/PD**

In the event the PI/PD severs his/her connection with the grantee
organization or otherwise relinquishes active direction of the project,
the grantee, or equivalent, must notify the NSF Program Officer, and
either:

a\. initiate transfer of the grant as described in GPM 312.8,
"Disposition of a Grant When a PI/PD Transfers from One Organization to
Another Organization";

b\. nominate a substitute as described in GPM 312.7, "Substitute PI/PD"
or

c . initiate grant closeout procedures through submission of final
reports (GPM 342, "Final Project Report," and GPM 452, "Final
Disbursement Reporting").

**312.7 Substitute PI/PD**

In the event the grantee desires to continue the project with a
substitute PI/PD, the appropriate officials at the grantee organization
must advise the NSF Program Officer of the substitute PI/PD's name,
qualifications, and current and pending support for research from all
sources. If approved by NSF, the Grants Officer will amend the grant. If
not approved, NSF may take steps, pursuant to GPM 910, "Suspension and
Termination Procedures," to suspend or terminate the grant.

8.  **Disposition of a Grant When a PI/PD Transfers from One
    Organization to Another Organization**

a\. Policy. When a PI/PD plans to leave an organization during the
course of a grant, the organization has the prerogative to nominate a
substitute PI/PD or request that the grant be terminated and closed out.
In those cases where the PI/PD's original and new organizations agree,
NSF will facilitate a transfer of the grant and the assignment of
remaining unobligated funds to the PI/PD's new organization. This should
normally be done with a tripartite agreement (involving NSF, the PI/PD's
original organization and new organization), or by a subaward
arrangement (in certain circumstances) between the PI/PD's original and
new organizations, subject to NSF's consent. (See GPM 313 "Contracting
or Transferring the Project Effort (Subawards).")

b\. Procedures. When a PI/PD plans to leave an organization during the
course of a grant, the PI/PD or the Sponsored Projects Office, or
equivalent, shall notify the NSF Program Office. If the project is to
continue with the original organization, the NSF Program Officer should
advise the grantee to nominate a substitute PI/PD (see GPM 312.7,
"Substitute PI/PD"). If the project is to be continued at the PI/PD's
new organization, and if NSF and both organizations agree, formal
notification of the impending transfer can be electronically initiated
by either the PI/PD or the PI/PD\'s organization.

The request shall include:

1\. a brief summary of progress to date;

2\. a description of work yet to be accomplished;

3\. a completed on-line transfer request, including total estimated
disbursements to date (transfer amount will be automatically calculated,
based on the amount entered in total estimated disbursements). The
original organization is responsible for including in the total
estimated disbursements, any anticipated costs yet to be incurred
against the original grant.

4\. a detailed line item budget for the transfer amount and any
outstanding continuing grant increments.

The original organization concurs with the transfer of the award by
electronically forwarding the request to the new organization.

The new organization completes the request by providing a detailed
budget for the transfer amount agreed to by both organizations. The new
organization must electronically sign the request when submitted to NSF.
Submission of the request constitutes agreement by the new organization
to assume responsibility for completion of the project effort and to
administer the grant (as originally awarded) from the transfer date to
completion in accordance with any special terms and conditions and the
applicable general terms and conditions that normally govern NSF grants
made to the new organization. FastLane will assign at submission a
proposal number. This proposal number will become the new grant number
when the transfer is approved by an NSF Grants Officer.

c\. Fund Transfer. Upon receipt of the above material, NSF will review
the request and, if approved, deduct the specified transfer amount from
the original grant and re-establish it under a new grant number at the
new organization. Award notification by the NSF Grants Officer will
constitute NSF approval of the grant transfer. The award notification
also will specify the applicable basic terms and conditions that govern
the grant (i.e., NSF GC-1, FDP, or other Terms and Conditions.)

d\. Upon transfer of the grant to the new organization, any monetary
discrepancies must be resolved between the original and the new grantee.
NSF will not intervene in any disputes between the two organizations
regarding the transferred amount.

e\. Equipment Transfers. Equipment purchased with NSF funds for use in a
specific project should remain available for use for the duration of the
project. PI/PDs who are in the midst of projects that included funding
for equipment and who will continue the project at a new organization
with NSF support should be able to arrange with their original
organization to have the equipment transferred with them. Shipping costs
for such equipment may be charged to the original or transferred grant
as an allowable cost. Budgets should not include funds to "buy"
equipment that had been previously obtained with Federal funds.

f\. Possible Alternatives to the Transfer Process. When the amount of
time and funds remaining in a project are modest, and if both the
original and new organizations are in agreement, the original
organization may issue a subaward to the new organization for completion
of the project. This and other possible alternatives should be discussed
with the NSF Grants Officer.

**313 Contracting or Transferring the Project Effort (Subawards)**

a\. Excluding the procurement of items such as commercially available
supplies, materials, equipment or general support services allowable
under the grant, no significant part of the research or substantive
effort under an NSF grant may be contracted or otherwise transferred to
another organization without prior NSF authorization. The intent to
enter into such arrangements should be disclosed in the proposal
submission.

b\. If it becomes necessary to contract or otherwise transfer a
significant part of the research or substantive effort after a grant has
been made, the grantee shall submit, at a minimum:

1\. a clear description of the work to be performed;

2\. the basis for selection of the subawardee (except for
collaborative/joint arrangements[^4]); and

3\. a separate budget for each subaward.

The request must be submitted electronically, and NSF authorization will
be indicated by an amendment to the grant signed by the Grants Officer.
The NSF grant conditions will identify which articles flow-down to
subawardees. (See also GPM 731.3.g, "Standard Patent Rights Clause,"
regarding patent "flow-down" provisions.)

c\. Procurements under NSF grants are also subject to GPM 530,
"Procurement Standards," and OMB Circular A-110 Sections .41 through
.48.

## 320 CHANGES IN THE GRANT BUDGET

**321 OMB Directives**

Section .25 of OMB Circular A-110 contains optional requirements
regarding budgetary revisions. NSF elects [NOT]{.underline} to impose
the following requirements on its grantees:

a\. prior approval requirements for appropriate transfer between direct
and indirect cost categories of the grant budget; and

b\. restrictions in transfers of funds among direct cost categories for
grants in which the Federal share exceeds \$100,000.

**322 Grant Changes and Approvals**

a\. If required in furtherance of the project, the grantee is authorized
to transfer funds from one budget category to another for allowable
expenditures. Exhibit III-1, however, highlights certain budget changes
that may require prior NSF approval.

b\. When a change requires NSF approval, the request must be submitted
electronically via use of the Notification and Request module in
FastLane. The request should clearly state which budget items, if any,
are to be changed and by what amounts, and should explain the reasons
for any changes.

c\. Whenever the amount of Federal funds authorized by an NSF grant is
expected to exceed the requirements of the project, as outlined in the
approved proposal, by more than \$5,000 or 5 percent of the grant
amount, whichever is greater, the grantee will promptly notify the NSF
Program Officer.

**330 COST SHARING AND MATCHING**

**331 Basis for NSF Requirements**

**331.1 Statutory Requirement**

The appropriations providing funds to NSF and other independent agencies
contain the following language:

> "None of the funds provided in this Act may be used for payment,
> through grants and contracts, to recipients that do not share in the
> cost of conducting research resulting from proposals for projects not
> specifically solicited by the Government: Provided, that the extent of
> cost sharing by the recipient shall reflect the mutuality of interest
> of the grantee or contractor and the Government in the research."

**331.2 OMB Directive**

Section .23 of OMB Circular A-110 prescribes criteria and procedures for
the allowability of cash and in-kind contributions in satisfying cost
sharing and matching requirements. Cost sharing is defined as "all
contributions, including cash and third party in-kind which meet seven
criteria: verifiable, not included as contributions for any other
federally-assisted project or program, necessary and reasonable for
accomplishment of objectives, allowable, not paid by the Federal
Government under another award (except where authorized by statute),
provided for in the approved budget when required by the Federal
awarding agency, and conform to other Circular provisions." For the
purposes of the GPM, "cost sharing" and "matching" are synonymous.

The full text of NSF's current cost sharing policy as approved by the
NSB on May 7, 1999 (NSB 99-92), as well as Frequently Asked Questions
(FAQs) on cost sharing, are available electronically on the NSF website
at <http://www.nsf.gov/bfa/cpo/policy/start.htm>[.]{.underline}

**332 Significance of Cost Sharing Promises in Proposals**

NSF-required cost sharing is considered an eligibility rather than a
review criterion. Any cost sharing offered by an organization in excess
of the required amount is not a factor in the review of a proposal.

**333 NSF Cost Sharing Requirements**

**333.1 Unsolicited Research Projects**

a\. In accordance with Congressional requirements (GPM 331.1, "Statutory
Requirement"), NSF requires that each grantee share (1%) in the costs of
research projects resulting from unsolicited proposals. (An unsolicited
proposal is one not specifically solicited by an NSF program
solicitation, and includes all proposals submitted solely in response to
the GPG.) NSF grants which provide funds solely for the following
purposes are **not** considered to be support of "research" for
statutory cost sharing purposes:

1\. international travel;

2\. construction, improvement or operation of facilities;

3\. acquisition of research equipment;

4\. ship operations;

5\. education and training;

6\. publication, distribution and translation of research data and
information;

7\. symposia, conferences and workshops; and

8\. special studies authorized or required by Subsections 3a(5) through
3a(7) of the NSF Act, as amended.

b\. As a matter of policy, NSF does not reimburse grantees for the
indirect costs associated with grants solely for the support of doctoral
dissertation research and considers that as satisfaction of the cost
sharing requirement. (See GPM 633.2, "Exceptions to Basic Policy.")

Careful consideration must be given before committing to voluntary cost
sharing on unsolicited proposals and to including such unsolicited cost
share on Line M of NSF proposal budgets.

**333.2 Solicited Research Projects**

Organizations responding to particular NSF program solicitations may be
required to contribute specific percentages or amounts to the cost of
performing the research. Consistent with NSF's cost sharing policy, this
requirement is an eligibility rather than a review criterion. NSF cost
sharing requirements beyond the statutory requirement (1%) will be
clearly stated in the solicitation. Language will be specific so as to
provide eligible organizations a clear understanding of the parameters
of the expected cost sharing.

**333.3 Cost Sharing Amount**

a\. NSF expects that grantees will share in the costs at a level which
reflects their interest in the research, the potential benefits they may
derive, and their ability to cost share, unless a specific cost share
dollar amount or percentage is required by the terms of a solicitation.
Proposed cost sharing must be cited on Line M of the NSF proposal
budget. Organizations have a great deal of flexibility with regard to
their approach to cost sharing under NSF-supported projects, and thus
shall assume and exercise responsibility in determining appropriate
levels of cost sharing.

b\. Grantees shall share in the cost of projects requiring cost sharing
as indicated in GPM 333.4, "Cost Sharing Method," except in certain
instances where specific cost sharing amounts, percentages or other
requirements may be included in or incorporated by reference in specific
NSF grants. In such cases the provisions of the grant govern the amount,
level or nature of cost sharing. A failure to provide the level of cost
sharing reflected in the approved award budget may result in
disallowance of award costs, refund of award funds to NSF, possible
termination of the award; and may constitute a violation of the terms of
the award so serious as to provide grounds for debarment or suspension.

c\. Grantees should be aware that cost sharing commitments are subject
to audit. Audit findings involving cost sharing have pertained to: a)
grantee accounting systems not capturing cost sharing identified with a
particular project; b) failure to keep adequate source documentation for
claimed cost sharing; c) unclear valuation of in-kind donated
contributions; d) lack of support for cost sharing contributions by
sub-recipients; and e) failure to complete annual certifications for
awards with cost sharing requirements of \$500,000 or more. Additional
guidance on cost sharing may be obtained at
http://www.nsf.gov/bfa/cpo/oversite/costrev.htm

**333.4 Cost Sharing Method**

a\. Except for grants that require specific cost sharing amounts or
percentages (see GPM 333.3, "Cost Sharing Amount"), grantees can comply
with the basic cost sharing requirement and meet the minimum amount by
either of two alternative methods:

1\. cost sharing a minimum of one percent on each and every project; or

2\. cost sharing a minimum of one percent on the aggregate total costs
of all projects requiring cost sharing. This latter approach allows
organizations greater flexibility by being able to share a greater
percentage on some projects and not share at all on others.

b\. Decisions on which method to use may be made by the grantee and
there is no requirement that NSF either be advised or approve of the
method chosen. NSF does not use "organizational cost sharing
agreements," such as those used by some granting agencies, to provide
for aggregated cost sharing.

c\. Regardless of the method chosen and unless otherwise specified in
the NSF program solicitation, the amount or percentage of cost sharing
need not be detailed in specific project proposals or proposal budgets,
except if cost sharing is expected to be undertaken by claiming less
than the approved indirect cost rate, which should be clearly stated in
the proposal budget. (See GPM 333.5, "Method of Providing
Contributions.")

d\. Cost sharing responsibilities are assumed by the grantee upon
acceptance of the grant. This accountability extends to subawardee cost
share commitments made under the award.

**333.5 Method of Providing Contributions**

a\. Unless the grant states otherwise, contributions may be made from
any non-Federal source, including non-Federal grants or contracts.
Contributions from non-Federal sources may be counted as cost sharing
toward Federal projects only once. Thus, contributions counted as cost
sharing toward projects of another Federal agency may not be counted as
cost sharing toward projects supported by NSF. If such contributions
however, are related to projects supported by more than one Federal
agency, the recipient may elect to make a proration among the agencies
involved.

b\. The contributions may be in the form of either direct or indirect
costs.

c\. Only items that would be allowable under the applicable cost
principles, if charged to the project, may be included as the grantee's
contribution.

d\. Organizations will not be required to obtain prior NSF approval of
the manner in which contributions are to be provided. The contributions
may be in any allowable budget category or combination of categories.
However, when direct cost items are contributed to the project, any
indirect costs related to that item may not be charged to the project.
Those indirect costs may, of course, be counted as part of the
contribution. This restriction also applies to fringe benefits (when
treated as direct costs) applicable to direct salaries contributed by
the recipient.

e\. If a grantee wishes to provide cost sharing in the indirect cost
category, it should merely reduce its claim for indirect costs to which
it would be otherwise entitled, indicating the difference as cost
sharing.

**333.6 Cost Sharing Records and Reports**

a\. Grantee Records.

1\. Grantees shall maintain records of all research project costs that
are claimed by the grantee as being its contribution to cost
participation, as well as records of costs to be paid by the government.
Such records are subject to audit.

2\. If the grantee's cost participation includes in-kind contributions,
the basis for determining the valuation for volunteer services and
donated property must be documented.

3\. Grantees using the aggregate cost sharing method may find it useful,
on a fiscal year basis, to prepare a summary of the total project costs
for the year of all NSF-funded projects requiring cost sharing
(excluding those grants which require specific cost sharing amounts or
percentages; see GPM 333.3, "Cost Sharing Amount"), the total amount of
cost sharing on those projects for the year, and the aggregate level of
cost sharing expressed as a percentage of contributed costs to total
project costs. Such information will facilitate organizational and
Federal audit review and analysis of compliance with the cost sharing
requirements on the aggregate basis.

b\. Grantee Reports. Unless otherwise required by the grant or requested
by NSF, the actual cost participation by the grantee need not be
reported to NSF. However, in cases where the cost-sharing amount
reflected on Line M of the cumulative award budget is \$500,000 or more,
the amount of cost sharing must be documented (on an annual and final
basis), certified by the Authorized Organizational Representative, and
reported to the NSF Program Officer.

c\. If, following receipt of an award, a grantee determines that cost
sharing in the full amount proposed cannot be achieved, the grantee must
contact the cognizant NSF program official and NSF's Division of Grants
and Agreements immediately to discuss possible renegotiation of cost
share terms. Any NSF-approved adjustments to cost share commitments are
made based on the grantee's rationale behind the requested adjustment;
and are made on a case-by-case basis.

### 334 NSF Matching Requirement

Some NSF programs have a requirement for grantees to match the Federal
support in whole or in part, as outlined in the specific program
solicitation. Records and reporting requirements for matching funds are
the same as those outlined above. (See GPM 333.6, "Cost Sharing Records
and Reports," for cost sharing amounts.)

**340 TECHNICAL REPORTING REQUIREMENTS**

NSF requires technical project reports for all assistance awards.
Information from these reports is used in annual reports to Congress to
demonstrate the Foundation's performance as mandated by the Government
Performance and Results Act (GPRA) of 1993. These reports also provide
NSF Program Officers and administrative offices with information on the
progress of supported projects and the way these funds are used.
Information in these reports may be made available to the general public
through the Freedom of Information Act (FOIA).

**341 Annual Project Reports**

a\. PI/PDs should submit annual project reports as indicated below. Such
reports must be submitted electronically via the NSF FastLane system and
in accordance with such procedures as the grantee organization may
prescribe.

b\. Unless otherwise specified in the grant, annual project reports
shall be submitted at least three months prior to the end of the current
budget period. In the case of continuing grants, failure to submit
timely reports may delay processing of funding increments. See also GPM
263, "Continued Support (Continuing Grants)."

**342 Final Project Report**

Within 90 days following expiration of the grant, a final project report
must be submitted electronically via the NSF FastLane system. In
addition, the grantee also shall provide to the cognizant NSF program
officer, within 90 days following the expiration of the grant, any
unique reports or other end items specified in the award letter (e.g.,
special cost sharing reports), including any report requirements set
forth in any NSF brochure, guide, solicitation, etc., referenced in the
award as being directly related to either the award or the
administration of the award.

**343 Final Technical Information Items**

As soon as they are available after completion of the project, the
following technical items shall be submitted for NSF program management
use:

a\. abstracts of theses;

b\. publication citations and reprints of articles;

c\. data on scientific collaborations;

d\. information on inventions;

e\. technical description of the project and results;

f\. other materials either required in the grant or considered to be
useful to NSF; and

g\. Universal Resource Locator numbers of electronic publications
generated by the project.

**344 Compliance with Technical Reporting Requirements**

NSF Program Officers are responsible for ensuring that Final Project
Reports on prior, expired grants have been submitted by PI/PDs before
new grants are made to those PI/PDs. This report should include the
history and accomplishments achieved as a result of the completed award.
**Failure to provide final technical reports on a timely basis will
delay NSF review and processing of pending proposals for all identified
PIs and co-PIs on a given award.**

**345 Grant Closeout**

Grant closeout is the process by which NSF determines that all
applicable administrative actions and all required work of the grant
have been completed. Grants will be closed upon receipt of the final
disbursement information in the Federal Cash Transaction Report (FCTR)
and Final Project Report, and after determination that any other
administrative requirements in the grant have been met. In the event a
final audit has not been performed prior to the closeout of the grant,
NSF reserves the right to recover appropriate amounts after fully
considering the recommendations on disallowed costs resulting from the
final audit.

**350 RECORDS RETENTION AND AUDIT**

a\. Financial records, supporting documents, statistical records and
other records pertinent to a grant will be retained by the grantee for a
period of three years from submission of the Final Project Report
described in GPM 342, "Final Project Report," except that:

1\. records related to audits, appeals, litigation or the settlement of
claims arising out of the performance of the project will be retained
until such audits, appeals, litigation or claims have been disposed of;
and

2\. records related to projects subject to special program income
provisions (GPM 753, "NSF Policy") will be retained for three years
beyond the end of the award period.

b\. Unless court action or audit proceedings have been initiated, the
grantee may substitute microfilm copies of original records.

c\. The NSF Director and the Comptroller General of the United States,
or any of their duly authorized representatives, shall have access to
any pertinent books, documents, papers and records, the grantee
organization (and of the performing organization, if different) to make
audits, examinations, excerpts and transcripts. Further, in accordance
with Section .48(d) of OMB Circular A-110, any negotiated contract in
excess of the small purchase threshold made by the grantee shall include
a provision to the effect that the grantee, NSF, the Comptroller General
or any of their duly authorized representatives, shall have access to
pertinent records for similar purposes.

d\. In order to avoid duplicate recordkeeping, NSF may make special
arrangements with grantees to retain any records which are needed for
joint use. NSF may request transfer to its custody of records not needed
by the grantee when it determines that the records possess long-term
retention value. When the records are transferred to or maintained by
NSF, the three-year retention requirement is not applicable to the
grantee. In the rare event that these provisions are exercised, NSF will
negotiate a mutually agreeable arrangement with the grantee regarding
reimbursement of costs.

e\. It is the responsibility of grantees that are States, Local
Governments or Non-Profit Organizations to arrange for the conduct of
audits as required by OMB Circular A‑133 "*Audits of States, Local
Governments, and Non-Profit Organizations*" (including colleges and
universities.) They shall provide copies of the reports of these audits
to the cognizant Federal audit agency. Any Federal audit deemed
necessary by NSF shall build upon the results of such audit(s).

### Exhibit III-1

***GRANTEE NOTIFICATIONS TO AND REQUESTS FOR APPROVAL\****

***FROM THE NATIONAL SCIENCE FOUNDATION***

**All notifications and requests for approval from the National Science
Foundation must be submitted electronically via the NSF FastLane System
at** [http://www.fastlane.nsf.gov](http://www.nsf.gov/)**. Questions
related to the electronic processing of these notifications and requests
should be forwarded to the FastLane Help Desk by phone at:
1-800-673-6188 or by e-mail to: fastlane@nsf.gov.**

## Type of Grantee Notification GPM Citation 

# 

Grantee Approved No-Cost Extension 253.2

Significant Changes in Methods/Procedures 311.2

Significant Changes/Delays or Events of Unusual Interest 311.3

Short-Term Absence of the PI/PD 312.3

Amount of Federal funds is expected to exceed the grant 322

by more than \$5,000 or 5%

Conflicts of Interest that cannot be satisfactorily managed, 510

reduced or eliminated

**[Type of Grantee Request]{.underline} GPM GC-1 Questions should be
directed to:**

NSF Approved No-Cost Extension 253.2b Article 4 Grants Office

Request for Supplemental Support 264 Program Office\*\*

Change in Objective or Scope 311.1 Article 8 Program Office\*\*

Long-Term Absence of the PI/PD 312.4 Article 8 Program Office\*\*

Change in Person-Months Devoted to Project 312.5 Article 8 Grants
Office, if necessary

Withdrawal of PI/PD 312.6 Article 8 Program Office

Substitute PI/PD 312.7 Article 8 Program Office

PI/PD Transfer from One Organization to Another 312.8 Article 8 Grants
Office

Contracting or Transferring the Project Effort (Subawards) 313 Article 8
Grants Office

Pre-award Costs in Excess of 90 Days 602.2 Article 3 Grants Office

Reallocation of Funds Budgeted for Participant or 618 Article 2 Program
Office

Trainee Support Costs

Rearrangements/Alterations in excess of \$25,000 621 Article 11 Grants
Office

Adjustments to cost sharing commitments reflected on 330 Article 22
Grants Office

Line M of the approved NSF budget

**[Notes:]{.underline}**

**\*** This listing of Notifications and Requests for Approval is not
intended to be all-inclusive.

\*\* Final action by Grants Officer, when warranted

**CHAPTER IV**

**Financial Requirements and Payments**

This chapter covers general grant payment methods and policies and
provides instructions for obtaining payments. Topics covered are:

**400 BACKGROUND**

###### 410 STANDARDS FOR FINANCIAL MANAGEMENT 

**420 DEFINITIONS**

**430 PAYMENT REQUIREMENTS**

**440 CASH REFUNDS AND CREDITS TO NSF**

**450 GRANT FINANCIAL REPORTING REQUIREMENTS**

###### 400 BACKGROUND 

The acceptance of a grant from NSF creates a legal duty on the part of
the grantee organization to use the funds or property made available in
accordance with the conditions of the grant. Payments may be made in
advance of work performed or as a reimbursement for work performed
and/or costs incurred by the grantee. However, payments may not be made
in advance of a grant being signed by a grants official for the project
period. NSF has a reversionary interest in the unused balance of advance
payments in any funds improperly applied (whether or not received as an
advance payment); and in property acquired through the grant, to which
NSF specifically either retains title or reserves the right to require
title transfer.

The provisions of this chapter cover all NSF awards (grants and
cooperative agreements). Graduate fellowship agreements with domestic
colleges and universities are included but individual fellowships and
contracts are excluded. All categories of grantees (academic,
non-academic, profit and non-profit) are covered by this chapter. The
procedures in this chapter apply primarily to the comptroller's office
or business office.

**410 STANDARDS FOR FINANCIAL MANAGEMENT**

NSF grantees are required to have financial management systems that meet
the requirements of Section .21 of OMB Circular A-110.

**420 DEFINITIONS**

The following definitions are either not included elsewhere in the
manual or are repeated in this section because of their special
applicability to this chapter.

a\. Automated Standard Application for Payments (ASAP) is an electronic
payments system operated by the Federal Reserve Bank of Richmond that
can be utilized by Federal grantees to draw cash from multiple agencies
in one transaction.

b\. BUSINESS OFFICER is the financial official of the grantee
organization who has primary responsibility for the accountability for
and reporting on NSF grant funds.

c\. CASH ON HAND includes NSF funds on deposit, imprest funds and
undeposited Treasury checks.

d\. DISBURSEMENTS/OUTLAYS/EXPENDITURES are charges made to the project
during a given period for:

> 1\. goods and other tangible property received;
>
> 2\. services performed by employees, subawardees, contractors and
> other payees; and
>
> 3\. amounts becoming owed for which no current services or performance
> is required.

e\. FASTLANE FINANCIAL ADMINISTRATION FUNCTIONS (Cash Request and Submit
Federal Cash Transaction Report (FCTR)) are electronic systems for
transmitting information to the NSF Division of Financial Management
(DFM). They are electronic versions of the SF 270 (Cash Request) and the
SF 272 (FCTR).

f\. A GRANTEE is the organization or other entity that receives a grant
and assumes legal and financial responsibility and accountability both
for the awarded funds and for the performance of the grant-supported
activity. NSF grants are normally made to organizations rather than to
individual PI/PD(s).

g\. NSF OBLIGATIONS are funds authorized by an NSF Grants Officer, in
writing, for payment to a grantee.

h\. GRANTEE OBLIGATIONS are the amounts of orders placed, subawards
issued, contracts awarded, services received and similar transactions
during a given period that will require payment by the grant during the
same or a future period.

i\. PAYMENTS are funds transferred from NSF to the grantee by direct
deposit (Automated Clearing House (ACH) Vendor Express) and on some rare
occasions by check.

j\. UNLIQUIDATED OBLIGATIONS, for financial reports prepared on a cash
basis, represent the amount of obligations incurred by the grantees that
have not been paid. For reports prepared on an accrued expenditure
basis, unliquidated obligations represent the amount of obligations
incurred by the grantee for which an outlay has not been recorded.

k\. UNOBLIGATED BALANCE is the portion of the funds authorized by the
grant that has not been obligated by the grantee. It is determined by
deducting outlays and unliquidated obligations from the cumulative funds
authorized.

**430 PAYMENT REQUIREMENTS**

###### 431 General

Federal grant and other programs involving advances to various
organizations outside the Federal government constitute a significant
portion of the Federal budget. Advances of cash from the U.S. Treasury
to such organizations for the purpose of financing current operations
under Federal programs have a substantial impact on Treasury financing
costs and the level of the public debt. The purpose of this section is
to prescribe the timing of such advances and the procedures to be
observed to assure that cash withdrawals from the Treasury occur only
when essential to meet the needs of a grantee for its actual
disbursements.

###### Payment Policies 

a\. Timing of Payments. Advances to a grantee shall be limited to the
minimum amount needed and shall be timed to be in accordance with the
actual, immediate cash requirements of the grantee in carrying out the
purpose of the approved program or project. The timing and amount of
cash advances shall be as close as is administratively feasible to
actual disbursements for direct program costs and the proportionate
share of any allowable indirect costs.

b\. Payments to Subawardees. Cash advances made by primary grantees
(those which receive advances directly from NSF) to others (subawardees)
shall conform to the same standards of timing and amount as apply to
advances by NSF to primary grantees, including the furnishing of reports
of cash disbursements and balances.

c\. Withholding payments. NSF reserves the right, upon written notice,
to withhold future payments after a specified date if the recipient:

1\. fails to comply with the conditions of an NSF grant, including the
reporting requirements; or

2\. is indebted to the U.S. Government.

d\. Safeguarding Funds. In no case will NSF-furnished funds be
commingled with the personal funds of, or be used for personal purposes
by, any officer, employee, or agent of the grantee; nor will any of
these funds be deposited in personal bank accounts for disbursement by
personal check.

###### 

###### 433 Request for Advance

a\. Grantees may receive payments from NSF in advance of cost incurred
provided that the following conditions exist:

1\. funds for the project period have been obligated by a Grants Officer
in the form of a signed grant;

2\. the grantee has established or demonstrated to NSF the willingness
and ability to establish written procedures that will minimize the time
elapsing between the transfer of funds from the U.S. Treasury and their
disbursement by the grantee; and

3\. the grantee's financial management system meets the standards for
fund control and accountability prescribed in Section .21 of OMB
Circular A- 110.

b\. The grantee's designated official (Accounting Officer, Business
Officer, Treasurer, etc.) must submit their cash requests for payment by
using either the ASAP or FastLane Cash Request systems. Grantees submit
requests on a periodic basis (monthly, biweekly or other regular cycle)
depending on their normal disbursement patterns. Such requests should be
limited to the minimum amounts needed and be timed to meet the
anticipated cash requirements for allowable charges to active NSF
projects.

c\. Grantees shall maintain advances of NSF funds in interest bearing
accounts as specified in GPM 443, "Interest Earned on Advance Payments."

**434 Request for Reimbursements**

When a grantee does not meet the conditions specified in GPM 433,
"Request for Advance," or when otherwise considered appropriate by NSF,
the grantee shall be required to finance its operations with its own
working capital, and payments shall be made to reimburse the grantee for
actual cash disbursements based on requests for reimbursement submitted
to NSF. The NSF grant will specify if the grantee is required to use the
SF 270, Request for Advance or Reimbursement. The amount requested as
reimbursement will be reported on line 11i of the SF 270. The SF 270 is
mailed to:

National Science Foundation

Division of Grants & Agreements

Room 480

4201 Wilson Blvd

Arlington, VA 22230

The SF 270 also may be faxed to 703.292.9142.

**435 Working Capital Advance**

In those cases where the reimbursement method described in GPM 434,
"Request for Reimbursements," is not feasible, arrangements may be made
whereby NSF projects are financed on a working capital advance basis. On
this basis, funds may be advanced to the grantee to cover estimated
disbursement needs for a given initial period. Thereafter, the grantee
would be reimbursed for the amount of its actual cash disbursements. The
amount of the initial advance shall be geared to the reimbursement cycle
so that after the initial period, the advance approximately equals the
average amount of the grantee's unreimbursed program disbursements.
Under this method of payment, the NSF grant will specify if the grantee
is required to use the SF 270. Section 12 of the SF270 will be used for
the initial advance; thereafter, reimbursements will be requested on the
SF 270, line 11i.

**436 ACH Vendor Express**

a\. The electronic funds transfer (EFT) system allows the Government to
transfer funds electronically to a grantee's financial institution
(bank) along with explanatory information about the payment. A grantee
and its financial institution will determine how the grantee will be
advised of the deposit and the explanatory information.

b\. Enrollment. When awarded a grant, new grantees will receive a copy
of the SF 3881, ACH Vendor/Miscellaneous Payment Enrollment Form (see
Exhibit IV- 1). This form is required to implement the Vendor Express
System and to notify NSF of any change or correction to the financial
institution information. All grantees are required to file this form
unless exempted by NSF.

c\. Requests for Payments. After enrollment in the Vendor Express
System, funds may be requested from NSF, as needed, in any one of the
following three formats:

> 1\. ASAP;
>
> 2\. FastLane Cash Request; or
>
> 3\. SF 270, Request for Advance or Reimbursement. (This format is only
> to be used when required by NSF.)

###### 437 Use of Women-Owned and Minority-Owned Banks 

Recipients of NSF grants are encouraged by the Federal government to use
banks which are owned (at least 50 percent) by women or minority groups
such as Asian, Black, Hispanic, Native Americans and Pacific Islanders.
This action is consistent with the national goal of expanding the
opportunities for women-owned and minority-owned business enterprises.

**440 CASH REFUNDS AND CREDITS TO NSF**

###### 441 Final Unobligated Balance 

NSF has a reversionary interest in the unobligated balance of a grant
upon expiration or completion of the grant. Based on final disbursements
reported on the FCTR, the final unobligated balance will be computed by
NSF and reported in the "Unobligated Balance" column of the FCTR. (See
GPM 452, "Final Disbursement Reporting.") The entry reduces the
grantee's "Balance Authorized" as computed on line 15 of the FCTR.
(Detailed instructions for submission of the FCTR are available on the
FastLane website at
<https://www.fastlane.nsf.gov/jsp/homepage/bussoadmin.jsp>.)

**442 Erroneous Payments**

Advances or reimbursements made in error must be refunded to the
National Science Foundation if the erroneous payment creates an excess
cash on hand condition or a negative "Balance Authorized" as computed on
lines 6 and 15 of the FCTR. Excess funds should be promptly refunded
electronically or by check. Contact the NSF Division of Financial
Management at (703) 292-8280 for instruction for electronically
refunding monies to NSF. Checks shall be mailed to NSF, Attn. Cashier,
4201 Wilson Boulevard, Arlington, VA 22230.

The only exception to the requirement for prompt refunding is when the
funds involved will be disbursed within 30 calendar days. This exception
for prompt refunding should not be construed as approval by NSF for a
grantee to maintain excessive funds on hand.

**443 Interest Earned on Advance Payments**

Grantees shall maintain advances of NSF funds in interest bearing
accounts, unless any of the following apply:

a\. the grantee receives less than \$120,000 in Federal grants per year;

b\. the best reasonably available interest bearing account would not be
expected to earn interest in excess of \$250 per year on Federal cash
balances; or

c\. The depository would require an average or minimum balance so high
that it would not be feasible within the expected Federal and
non-Federal cash resources.

Interest earned on NSF advances deposited in interest bearing accounts
shall be remitted annually to the Department of Health and Human
Services (DHHS), Payment Management System, P.O. Box 6021, Rockville, MD
20852 (telephone number: (301) 443-9247). Grantees are authorized to
retain up to \$250 per year for administrative expenses. Interest on
advances earned shall be reported on line 9 of the FCTR.

The requirement to annually remit interest does not apply to grantees
subject to the Cash Management Improvement Act (CMIA) and its
implementing regulations (i.e., State agencies and instrumentalities).
State universities and hospitals shall comply with the CMIA, as it
pertains to interest. In accordance with Section .22 of OMB Circular
A-110, if a grantee subject to CMIA uses its own funds to pay pre-award
costs without prior written approval from NSF, it waives its right to
recover the interest under CMIA.

###### 444 Program Income 

If, in accordance with the grant, program income is designated for
credit to grant costs, it will be recovered by NSF by crediting costs
otherwise chargeable against the grant on the FCTR. (See GPM 750,
"Program Income.") In these cases, income in excess of the grant will be
remitted to NSF electronically or by check payable to the National
Science Foundation.

**445 Other Cost Credits**

Purchase discounts, rebates, allowances, credits resulting from overhead
rate adjustments and other credits relating to any allowable cost
received by or accruing to the grantee shall be credited against NSF
grant costs if the grant has not been financially closed out. A grant is
financially closed out when the final net disbursements have been
reported on the FCTR. Credits of \$300 or more shall be credited against
NSF grant costs even if the grant has been closed out. See also GPM 617,
"Publication, Documentation and Dissemination."

**450 GRANT FINANCIAL REPORTING REQUIREMENTS**

**451 Quarterly Disbursement Reporting - Federal Cash Transactions
Report (FCTR)**

Shortly (usually within twelve days) after the end of each calendar
quarter, NSF will create and make the FCTR available to grantees on
FastLane. E-mail notices are sent to each grantee announcing the reports
availability and its due date. Grantees are required to update, certify
and submit the FCTR to NSF by the due date even if funds have not been
drawn during the reporting period. Grantees certify to its truthfulness
as stated in the Certification, Save and Submission page of the FCTR.
The report elements are in compliance with the uniform Federal standards
applicable to financial reporting by grantees.

Failure to submit the FCTR to NSF in a timely manner can result in one
or more of the following actions:

a\. suspension of all future payments;

b\. closeout of expired awards based on previously reported
disbursements;

c\. suspension of unexpired awards; and

d\. suspension of review and processing of new proposals.

Additional information on electronic submission of FCTRs and passwords
for the FastLane Financial Administration functions may be obtained by
calling the cognizant accountant at (703) 292-8280.

**452 Final Disbursement Reporting**

NSF does not require grantees to submit individual SF 269, Financial
Status Reports, for purposes of final grant accountability. NSF
procedures have been designed to extract the final financial data from
the entries in the FCTR. This reporting is accomplished as follows:

a\. For any grant listed on the FCTR that expired prior to the beginning
of the quarter covered by the FCTR, the grantee will enter the final
disbursement amount in the "Net Disbursement Reporting Quarter" column.

b\. If there are valid unpaid obligations outstanding at the time final
disbursements are due, the obligations must be charged against the NSF
cash advance and reported in the "Net Disbursement Reporting Quarter"
column as if they had actually been paid. If subsequent disbursements
differ by \$300 or more from the amount previously reported, the grantee
must report the amount as an "Adjustments to Financially Closed Awards"
and specify the reason for the adjustment under the remarks section of
the FCTR. The Cost Analysis/Audit Resolution Branch, CPO may request
additional documentation. Adjustments will not be approved for amounts
less than \$300.

c\. If by law, regulation, and/or accounting system limitations, valid
unpaid obligations cannot be charged against the NSF advance and
reported as disbursed in accordance with b. above, closeout by NSF will
be deferred provided that:

1\. the grantee identifies grants with "unpaid obligations" in the
Remarks section of the FCTR;

2\. the grantee submits the FCTR before the quarterly financial closeout
procedure is run; and

3\. the appropriation that funds the grant has not lapsed as noted under
Public Law 101-510.

d\. The final disbursement amount may not exceed the amount of the
award.

e\. When the final disbursements have been recorded by NSF, the award
will be financially closed and no additional disbursements shall be
shown by the grantee in subsequent reports. When all final reporting
requirements have been met, the award will be deleted from the FCTR.
When this is done, the award will be shown in the next "Schedule of
Awards Purged and Subsequent Adjustments During the Quarter," Part IV of
the FCTR.

+------+-----------------+---------------+----+------+---------------+
| #### |                 |               |    |      |               |
| ###  |                 |               |    |      |               |
| ACH  |                 |               |    |      |               |
| VEND |                 |               |    |      |               |
| OR/M |                 |               |    |      |               |
| ISCE |                 |               |    |      |               |
| LLAN |                 |               |    |      |               |
| EOUS |                 |               |    |      |               |
|  PAY |                 |               |    |      |               |
| MENT |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
| **EN |                 |               |    |      |               |
| ROLL |                 |               |    |      |               |
| MENT |                 |               |    |      |               |
| FO   |                 |               |    |      |               |
| RM** |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
| This |                 |               |    |      |               |
| form |                 |               |    |      |               |
| is   |                 |               |    |      |               |
| used |                 |               |    |      |               |
| for  |                 |               |    |      |               |
| A    |                 |               |    |      |               |
| utom |                 |               |    |      |               |
| ated |                 |               |    |      |               |
| Clea |                 |               |    |      |               |
| ring |                 |               |    |      |               |
| H    |                 |               |    |      |               |
| ouse |                 |               |    |      |               |
| (    |                 |               |    |      |               |
| ACH) |                 |               |    |      |               |
| paym |                 |               |    |      |               |
| ents |                 |               |    |      |               |
| with |                 |               |    |      |               |
| an   |                 |               |    |      |               |
| adde |                 |               |    |      |               |
| ndum |                 |               |    |      |               |
| re   |                 |               |    |      |               |
| cord |                 |               |    |      |               |
| that |                 |               |    |      |               |
| cont |                 |               |    |      |               |
| ains |                 |               |    |      |               |
| pay  |                 |               |    |      |               |
| ment |                 |               |    |      |               |
| -rel |                 |               |    |      |               |
| ated |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
| inf  |                 |               |    |      |               |
| orma |                 |               |    |      |               |
| tion |                 |               |    |      |               |
| p    |                 |               |    |      |               |
| roce |                 |               |    |      |               |
| ssed |                 |               |    |      |               |
| thr  |                 |               |    |      |               |
| ough |                 |               |    |      |               |
| the  |                 |               |    |      |               |
| Ve   |                 |               |    |      |               |
| ndor |                 |               |    |      |               |
| Exp  |                 |               |    |      |               |
| ress |                 |               |    |      |               |
| Prog |                 |               |    |      |               |
| ram. |                 |               |    |      |               |
| Re   |                 |               |    |      |               |
| cipi |                 |               |    |      |               |
| ents |                 |               |    |      |               |
| of   |                 |               |    |      |               |
| t    |                 |               |    |      |               |
| hese |                 |               |    |      |               |
| paym |                 |               |    |      |               |
| ents |                 |               |    |      |               |
| sh   |                 |               |    |      |               |
| ould |                 |               |    |      |               |
| b    |                 |               |    |      |               |
| ring |                 |               |    |      |               |
| this |                 |               |    |      |               |
| inf  |                 |               |    |      |               |
| orma |                 |               |    |      |               |
| tion |                 |               |    |      |               |
| to   |                 |               |    |      |               |
| the  |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
| a    |                 |               |    |      |               |
| tten |                 |               |    |      |               |
| tion |                 |               |    |      |               |
| of   |                 |               |    |      |               |
| t    |                 |               |    |      |               |
| heir |                 |               |    |      |               |
| f    |                 |               |    |      |               |
| inan |                 |               |    |      |               |
| cial |                 |               |    |      |               |
| ins  |                 |               |    |      |               |
| titu |                 |               |    |      |               |
| tion |                 |               |    |      |               |
| when |                 |               |    |      |               |
| pr   |                 |               |    |      |               |
| esen |                 |               |    |      |               |
| ting |                 |               |    |      |               |
| this |                 |               |    |      |               |
| form |                 |               |    |      |               |
| for  |                 |               |    |      |               |
| com  |                 |               |    |      |               |
| plet |                 |               |    |      |               |
| ion. |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
| *    |                 |               |    |      |               |
| *PRI |                 |               |    |      |               |
| VACY |                 |               |    |      |               |
| ACT  |                 |               |    |      |               |
| STA  |                 |               |    |      |               |
| TEME |                 |               |    |      |               |
| NT** |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
| The  |                 |               |    |      |               |
| f    |                 |               |    |      |               |
| ollo |                 |               |    |      |               |
| wing |                 |               |    |      |               |
| inf  |                 |               |    |      |               |
| orma |                 |               |    |      |               |
| tion |                 |               |    |      |               |
| is   |                 |               |    |      |               |
| prov |                 |               |    |      |               |
| ided |                 |               |    |      |               |
| to   |                 |               |    |      |               |
| co   |                 |               |    |      |               |
| mply |                 |               |    |      |               |
| with |                 |               |    |      |               |
| the  |                 |               |    |      |               |
| Pri  |                 |               |    |      |               |
| vacy |                 |               |    |      |               |
| Act  |                 |               |    |      |               |
| of   |                 |               |    |      |               |
| 1974 |                 |               |    |      |               |
| (    |                 |               |    |      |               |
| P.L. |                 |               |    |      |               |
| 93-5 |                 |               |    |      |               |
| 79). |                 |               |    |      |               |
| All  |                 |               |    |      |               |
| inf  |                 |               |    |      |               |
| orma |                 |               |    |      |               |
| tion |                 |               |    |      |               |
| c    |                 |               |    |      |               |
| olle |                 |               |    |      |               |
| cted |                 |               |    |      |               |
| on   |                 |               |    |      |               |
| this |                 |               |    |      |               |
| form |                 |               |    |      |               |
| is   |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
| requ |                 |               |    |      |               |
| ired |                 |               |    |      |               |
| u    |                 |               |    |      |               |
| nder |                 |               |    |      |               |
| the  |                 |               |    |      |               |
| pr   |                 |               |    |      |               |
| ovis |                 |               |    |      |               |
| ions |                 |               |    |      |               |
| of   |                 |               |    |      |               |
| 31   |                 |               |    |      |               |
| U.   |                 |               |    |      |               |
| S.C. |                 |               |    |      |               |
| 3322 |                 |               |    |      |               |
| and  |                 |               |    |      |               |
| 31   |                 |               |    |      |               |
| CFR  |                 |               |    |      |               |
| 210. |                 |               |    |      |               |
| This |                 |               |    |      |               |
| inf  |                 |               |    |      |               |
| orma |                 |               |    |      |               |
| tion |                 |               |    |      |               |
| will |                 |               |    |      |               |
| be   |                 |               |    |      |               |
| used |                 |               |    |      |               |
| by   |                 |               |    |      |               |
| the  |                 |               |    |      |               |
| Trea |                 |               |    |      |               |
| sury |                 |               |    |      |               |
| De   |                 |               |    |      |               |
| part |                 |               |    |      |               |
| ment |                 |               |    |      |               |
| to   |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
| tran |                 |               |    |      |               |
| smit |                 |               |    |      |               |
| pay  |                 |               |    |      |               |
| ment |                 |               |    |      |               |
| d    |                 |               |    |      |               |
| ata, |                 |               |    |      |               |
| by   |                 |               |    |      |               |
| el   |                 |               |    |      |               |
| ectr |                 |               |    |      |               |
| onic |                 |               |    |      |               |
| m    |                 |               |    |      |               |
| eans |                 |               |    |      |               |
| to   |                 |               |    |      |               |
| ven  |                 |               |    |      |               |
| dors |                 |               |    |      |               |
| f    |                 |               |    |      |               |
| inan |                 |               |    |      |               |
| cial |                 |               |    |      |               |
| inst |                 |               |    |      |               |
| itut |                 |               |    |      |               |
| ion. |                 |               |    |      |               |
| Fai  |                 |               |    |      |               |
| lure |                 |               |    |      |               |
| to   |                 |               |    |      |               |
| pro  |                 |               |    |      |               |
| vide |                 |               |    |      |               |
| the  |                 |               |    |      |               |
| r    |                 |               |    |      |               |
| eque |                 |               |    |      |               |
| sted |                 |               |    |      |               |
| inf  |                 |               |    |      |               |
| orma |                 |               |    |      |               |
| tion |                 |               |    |      |               |
| may  |                 |               |    |      |               |
| d    |                 |               |    |      |               |
| elay |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
| or   |                 |               |    |      |               |
| pre  |                 |               |    |      |               |
| vent |                 |               |    |      |               |
| the  |                 |               |    |      |               |
| rec  |                 |               |    |      |               |
| eipt |                 |               |    |      |               |
| of   |                 |               |    |      |               |
| paym |                 |               |    |      |               |
| ents |                 |               |    |      |               |
| thr  |                 |               |    |      |               |
| ough |                 |               |    |      |               |
| the  |                 |               |    |      |               |
| A    |                 |               |    |      |               |
| utom |                 |               |    |      |               |
| ated |                 |               |    |      |               |
| Clea |                 |               |    |      |               |
| ring |                 |               |    |      |               |
| H    |                 |               |    |      |               |
| ouse |                 |               |    |      |               |
| Pay  |                 |               |    |      |               |
| ment |                 |               |    |      |               |
| Sys  |                 |               |    |      |               |
| tem. |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
| **AG |                 |               |    |      |               |
| ENCY |                 |               |    |      |               |
| I    |                 |               |    |      |               |
| NFOR |                 |               |    |      |               |
| MATI |                 |               |    |      |               |
| ON** |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
| FED  |                 |               |    |      |               |
| ERAL |                 |               |    |      |               |
| PRO  |                 |               |    |      |               |
| GRAM |                 |               |    |      |               |
| AGE  |                 |               |    |      |               |
| NCY: |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      | ***National     |               |    |      |               |
|      | Science         |               |    |      |               |
|      | Foundation***   |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
| AG   |                 | AGENCY        | A  |      |               |
| ENCY |                 | LOCATION CODE | CH |      |               |
| IDE  |                 | (ALC):        | F  |      |               |
| NTIF |                 |               | OR |      |               |
| IER: |                 |               | MA |      |               |
|      |                 |               | T: |      |               |
+------+-----------------+---------------+----+------+---------------+
|      | *               | **            | ** |      |               |
|      | **53-0206152*** | *49-00-001*** | *C |      |               |
|      |                 |               | CD |      |               |
|      |                 |               | +* |      |               |
|      |                 |               | ** |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
| ADDR |                 |               |    |      |               |
| ESS: |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      | ***4201 Wilson  |               |    |      |               |
|      | Boulevard, Room |               |    |      |               |
|      | 575***          |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      | ***Arlington,   |               |    |      |               |
|      | Virginia        |               |    |      |               |
|      | 22230***        |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
| CON  |                 |               |    | T    |               |
| TACT |                 |               |    | ELEP |               |
| P    |                 |               |    | HONE |               |
| ERSO |                 |               |    | NUM  |               |
| N\'S |                 |               |    | BER: |               |
| N    |                 |               |    |      |               |
| AME: |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      | ***Richard A.   |               |    | ***( |               |
|      | Noll***         |               |    | 703) |               |
|      |                 |               |    | 292  |               |
|      |                 |               |    | -445 |               |
|      |                 |               |    | 8*** |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
| AD   |                 |               |    | FAX  |               |
| DITI |                 |               |    | NUM  |               |
| ONAL |                 |               |    | BER: |               |
| INF  |                 |               |    |      |               |
| ORMA |                 |               |    |      |               |
| TION |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    | **(  |               |
|      |                 |               |    | 703) |               |
|      |                 |               |    | 29   |               |
|      |                 |               |    | 2-90 |               |
|      |                 |               |    | 05** |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
| **P  |                 |               |    |      |               |
| AYEE |                 |               |    |      |               |
| /COM |                 |               |    |      |               |
| PANY |                 |               |    |      |               |
| I    |                 |               |    |      |               |
| NFOR |                 |               |    |      |               |
| MATI |                 |               |    |      |               |
| ON** |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
| N    |                 |               |    | SO   |               |
| AME: |                 |               |    | CIAL |               |
|      |                 |               |    | SECU |               |
|      |                 |               |    | RITY |               |
|      |                 |               |    | NO   |               |
|      |                 |               |    | OR   |               |
|      |                 |               |    | TAXP |               |
|      |                 |               |    | AYER |               |
|      |                 |               |    | ID   |               |
|      |                 |               |    | NO.  |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
| ADD  |                 |               |    |      |               |
| RESS |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
| CON  |                 |               |    | T    |               |
| TACT |                 |               |    | ELEP |               |
| PE   |                 |               |    | HONE |               |
| RSON |                 |               |    | NU   |               |
| NAME |                 |               |    | MBER |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
| **F  |                 |               |    |      |               |
| INAN |                 |               |    |      |               |
| CIAL |                 |               |    |      |               |
| INS  |                 |               |    |      |               |
| TITU |                 |               |    |      |               |
| TION |                 |               |    |      |               |
| I    |                 |               |    |      |               |
| NFOR |                 |               |    |      |               |
| MATI |                 |               |    |      |               |
| ON** |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
| N    |                 |               |    |      |               |
| AME: |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
| ADDR |                 |               |    |      |               |
| ESS: |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
| ACH  |                 |               |    | T    |               |
| COO  |                 |               |    | ELEP |               |
| RDIN |                 |               |    | HONE |               |
| ATOR |                 |               |    | NU   |               |
| N    |                 |               |    | MBER |               |
| AME: |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
| NINE |                 |               |    |      |               |
| D    |                 |               |    |      |               |
| IGIT |                 |               |    |      |               |
| ROU  |                 |               |    |      |               |
| TING |                 |               |    |      |               |
| TRA  |                 |               |    |      |               |
| NSIT |                 |               |    |      |               |
| NUM  |                 |               |    |      |               |
| BER: |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
| D    |                 |               |    |      |               |
| EPOS |                 |               |    |      |               |
| ITOR |                 |               |    |      |               |
| ACC  |                 |               |    |      |               |
| OUNT |                 |               |    |      |               |
| TI   |                 |               |    |      |               |
| TLE: |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
| D    |                 |               |    | LOC  |               |
| EPOS |                 |               |    | KBOX |               |
| ITOR |                 |               |    | NUM  |               |
| ACC  |                 |               |    | BER: |               |
| OUNT |                 |               |    |      |               |
| NUM  |                 |               |    |      |               |
| BER: |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
| TYPE |                 |               |    |      |               |
| OF   |                 |               |    |      |               |
| ACCO |                 |               |    |      |               |
| UNT: |                 |               |    |      |               |
| (CH  |                 |               |    |      |               |
| ECKI |                 |               |    |      |               |
| NGS, |                 |               |    |      |               |
| SAVI |                 |               |    |      |               |
| NGS, |                 |               |    |      |               |
| LOCK |                 |               |    |      |               |
| BOX) |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
| S    |                 |               |    | T    |               |
| IGNA |                 |               |    | ELEP |               |
| TURE |                 |               |    | HONE |               |
| AND  |                 |               |    | NUM  |               |
| T    |                 |               |    | BER: |               |
| ITLE |                 |               |    |      |               |
| OF   |                 |               |    |      |               |
| AU   |                 |               |    |      |               |
| THOR |                 |               |    |      |               |
| IZED |                 |               |    |      |               |
| O    |                 |               |    |      |               |
| FFIC |                 |               |    |      |               |
| IAL: |                 |               |    |      |               |
| (C   |                 |               |    |      |               |
| ould |                 |               |    |      |               |
| be   |                 |               |    |      |               |
| the  |                 |               |    |      |               |
| same |                 |               |    |      |               |
| as   |                 |               |    |      |               |
| ACH  |                 |               |    |      |               |
| Coor |                 |               |    |      |               |
| dina |                 |               |    |      |               |
| tor) |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 |               |    |      |               |
+------+-----------------+---------------+----+------+---------------+
|      |                 | **PLEASE TYPE |    |      | SF3881        |
|      |                 | OR PRINT**    |    |      |               |
+------+-----------------+---------------+----+------+---------------+

**CHAPTER V**

### GRANTEE STANDARDS

This chapter discusses various grantee management standards with which
recipients are

expected to comply. It consists of the following topics:

#####  {#section-5 .unnumbered}

##### **500 BACKGROUND** {#background-1 .unnumbered}

## 510 CONFLICT OF INTEREST POLICIES

**520 FINANCIAL MANAGEMENT SYSTEMS STANDARDS**

**530 PROCUREMENT STANDARDS**

**540 PROPERTY MANAGEMENT STANDARDS**

# 500 BACKGROUND

a\. NSF requires prospective grantees to furnish, upon request by DGA,
basic organization and management information to assist the NSF Grants
Officer in assessing the prospective grantee's financial and managerial
responsibility. GPM 501 describes NSF requirements for the furnishing of
organization and management information.

b\. NSF encourages the increased involvement of academic researchers and
educators with industry and private entrepreneurial ventures, but
recognizes that such interactions carry with them an increased risk of
conflict of interests. GPM 510 contains NSF's policy on conflict of
interest.

c\. OMB Circular A-110 prescribes three sets of standards for academic
and other non-profit recipients of Federal grants. These govern
financial management systems, procurement policies and procedures and
property management. GPM sections 520-540 implement the OMB standards,
and extend their applicability to all types of recipients of NSF grants,
including commercial firms.

**501 Prospective Grantee Organization and Management Data**

Each proposing organization that has not received an NSF grant within
the previous two years should be prepared to submit basic organization
and management information and certifications, when requested, to DGA.
The information required is contained in the NSF Prospective New Awardee
Guide, available electronically on the NSF website at:
<http://www.nsf.gov/bfa/cpo/oversite/start.htm>. The information
contained in this Guide will assist the organization in preparing
documents which the National Science Foundation requires to conduct
administrative and financial reviews of the organization. This Guide
also serves as a means of highlighting the accountability requirements
associated with Federal awards.

**510 CONFLICT OF INTEREST POLICIES**

a\. NSF requires each grantee institution[^5] employing more than fifty
persons to maintain an appropriate written and enforced policy on
conflict of interest. Guidance for such policies has been issued by
university associations and scientific societies.[^6]

b\. An institutional conflict of interest policy should require that
each investigator disclose to a responsible representative of the
institution all significant financial interests of the investigator
(including those of the investigator's spouse and dependent children)
(i) that would reasonably appear to be affected by the research or
educational activities funded or proposed for funding by NSF; or (ii) in
entities whose financial interests would reasonably appear to be
affected by such activities.

The term "investigator" means the principal investigator, co-principal
investigators, and any other person at the institution who is
responsible for the design, conduct, or reporting of research or
educational activities funded or proposed for funding by NSF.

The term "significant financial interest" means anything of monetary
value, including, but not limited to, salary or other payments for
services (e.g., consulting fees or honoraria); equity interest (e.g.,
stocks, stock options or other ownership interests); and intellectual
property rights (e.g., patents, copyrights and royalties from such
rights).

The term does not include:

1\. salary, royalties or other remuneration from the applicant
institution;

2\. any ownership interests in the institution, if the institution is an
applicant under the Small Business Innovation Research Program or Small
Business Technology Transfer Program;

3\. income from seminars, lectures, or teaching engagements sponsored by
public or non-profit entities;

4\. income from service on advisory committees or review panels for
public or nonprofit entities;

5\. an equity interest that, when aggregated for the investigator and
the investigator's spouse and dependent children, meets both of the
following tests: does not exceed \$10,000 in value as determined through
reference to public prices or other reasonable measures of fair market
value, and does not represent more than a 5% ownership interest in any
single entity; or

6\. salary, royalties or other payments that, when aggregated for the
investigator and the investigator's spouse and dependent children, are
not expected to exceed \$10,000 during the twelve month period.

c\. An institutional policy must ensure that investigators have provided
all required financial disclosures at the time the proposal is submitted
to NSF. It must also require that those financial disclosures are
updated during the period of the award, either on an annual basis, or as
new reportable significant financial interests are obtained.

d\. An institutional policy must designate one or more persons to review
financial disclosures, determine whether a conflict of interest exists,
and determine what conditions or restrictions, if any, should be imposed
by the institution to manage, reduce or eliminate such conflict of
interest. A conflict of interest exists when the reviewer(s) reasonably
determines that a significant financial interest could directly and
significantly affect the design, conduct, or reporting of NSF-funded
research or educational activities.

Examples of conditions or restrictions that might be imposed to manage,
reduce or eliminate conflicts of interest include, but are not limited
to:

1\. public disclosure of significant financial interests;

2\. monitoring of research by independent reviewers;

3\. modification of the research plan;

4\. disqualification from participation in the portion of the NSF-funded
research that would be affected by significant financial interests;

5\. divestiture of significant financial interests; or

6\. severance of relationships that create conflicts.

If the reviewer(s) determines that imposing conditions or restrictions
would be either ineffective or inequitable, and that the potential
negative impacts that may arise from a significant financial interest
are outweighed by interests of scientific progress, technology transfer,
or the public health and welfare, then the reviewer(s) may allow the
research to go forward without imposing such conditions or restrictions.

e\. The institutional policy must include adequate enforcement
mechanisms, and provide for sanctions where appropriate.

f\. The institutional policy must include arrangements for keeping NSF's
Office of the General Counsel appropriately informed if the institution
finds that it is unable to satisfactorily manage a conflict of
interest.[^7]

g\. Institutions must maintain records of all financial disclosures and
of all actions taken to resolve conflicts of interest for at least three
years beyond the termination or completion of the grant to which they
relate, or until the resolution of any NSF action involving those
records, whichever is longer.

**520 FINANCIAL MANAGEMENT SYSTEMS STANDARDS**

NSF grantees are required to have financial management systems which
meet the requirements of Section .21 of OMB Circular A-110.

**530 PROCUREMENT STANDARDS**

NSF grantees shall adhere to the requirements of Sections .41 through
.48 of OMB Circular A-110 which prescribe standards for use by
recipients in establishing procedures for the procurement of supplies
and other expendable property, equipment, real property and other
services with Federal funds.

**540 PROPERTY MANAGEMENT STANDARDS**

**541 Background**

a\. Sections .31 through .37 of OMB Circular A-110 prescribe standards
governing the management and disposition of property furnished by the
Federal government or whose cost was charged to a project supported by a
Federal grant.

b\. In the rare instances where NSF grants might involve the acquisition
of real property and unless otherwise specified in the grant document,
the real property standards of OMB Circular A-110 are applicable to such
NSF grants.

c\. NSF implementation of the OMB standards on intellectual property is
contained in GPM 730, "Intellectual Property."

d\. Title to materials developed and supplies purchased under an NSF
grant will vest in the grantee.

e\. Section .33(b) of OMB Circular A-110 contains a special category of
"exempt property." Under that provision, any Federal agency which has
statutory authority (such as NSF) may vest title in an institution of
higher education, hospital or other non-profit organization without
further obligation to the Federal Government and under conditions the
agency considers appropriate.

**542 Title to Equipment**

**542.1 Title to Equipment - Non-Profit Organizations**

a\. Normal Situations. Unless otherwise specified in the grant, title to
equipment purchased or fabricated with NSF grant funds by a college or
university or other non-profit organization will vest in the grantee
organization upon acquisition. Such equipment is considered "exempt
property" (see GPM 541, "Background") and subject to the conditions of
GPM 543, "Conditions for Acquisition and Use of Equipment."

b\. Special Situations. In special situations the grant may require that
title to equipment purchased, acquired or fabricated by the grantee with
NSF funds pass directly to the government from the vendor.

**542.2 Title to Equipment - Commercial Organizations**

Unless otherwise specified in the grant, title to equipment purchased or
fabricated with NSF grant funds by a small business or other commercial
firm will vest in the government. Such equipment will be acquired and
used in accordance with GPM 543, "Conditions for Acquisition and Use of
Equipment," and managed in accordance with GPM 545, "Property Management
Standards When Title Retained by NSF."

**543 Conditions for Acquisition and Use of Equipment**

a\. Grantee Assurance. The grantee will assure that for each purchase of
equipment, it is:

1\. necessary for the research or activity supported by the grant;

2\. not otherwise reasonably available and accessible;

3\. of the type normally charged as a direct cost to sponsored
agreements; and

4\. acquired in accordance with organizational practice.

b\. General Purpose Equipment. Expenditures for general purpose
equipment (see GPM 612.2c, "Definitions") are unallowable unless the
equipment is primarily or exclusively used in the actual conduct of
research.

c\. Equipment Usage. The equipment must remain in use for the specific
project for which it was obtained in accordance with OMB Circular A-110
Section .34c., unless the provision in Section .34e. applies.

d\. Equipment Sharing. The equipment must be shared on other projects or
programs in accordance with OMB Circular A-110 Section .34d.

e\. Property Management Standards. The grantee shall maintain a property
management system which, at a minimum, meets the requirements of OMB
Circular A-110 Section .34f.

f\. Competition. Grantees shall not use equipment acquired with Federal
funds to provide services to non-Federal outside organizations for a fee
that is less than private companies charge for equivalent services,
unless specifically authorized by statute, for as long as the Federal
Government retains an interest in the equipment.

g\. Right to Transfer Title.

1\. NSF may identify items of equipment having a unit acquisition cost
of \$5,000 or more where NSF reserves the right to transfer the title to
the Federal government or to a third party named by the Federal
government.

2\. In such cases where NSF elects to transfer the title, disposition
instructions will be issued no later than 120 calendar days after the
expiration date of the NSF-supported project for which it was acquired.

**544** **Principles Relating to the Use of NSF-Supported Research
Instrumentation and Facilities**

The following principles on use of NSF-supported instrumentation and
facilities were adopted by the National Science Board:

> The National Science Foundation seeks the maximum productive use of
> the Nation\'s scientific instrumentation and research expertise.
> Ensuring that the highest quality instrumentation, facilities, and
> services are available to scientific users, both academic and
> industrial, is a key requirement, as are harmonious relations and
> cooperation between industry and universities. Private research and
> testing laboratories, as well as university, government, and
> industrial laboratories, have a contribution to make.
>
> The National Science Board recognizes that there may be circumstances
> where NSF grantees use NSF-supported research instrumentation to
> provide services in commerce for a fee, to an extent that such
> practice, (1) detracts from the performance of their obligation under
> the grant, and/or (2) may have a material and deleterious effect on
> the success of private companies engaged in the provision of
> equivalent services. It is contrary to the NSF\'s intent for grantees
> to use NSF-supported research instrumentation or facilities to provide
> services for a fee in competition with private companies in a manner
> that is prohibited by OMB Circular A-110.

Grantees should implement the above principles and related grant
conditions in a reasonable manner. Grantees are expected to provide fair
and adequate consideration of any complaints about use of
instrumentation and facilities.

**545 Property Management Standards When Title Retained by NSF**

In the event that title to equipment or property is vested in the
Federal Government, such property shall be marked, tagged or segregated
in such a manner as to indicate clearly its ownership by the government.
Unless otherwise provided in the grant, such government property shall
be used only for the performance of the project. The grantee shall
submit an annual inventory report by NSF grant number of such property
having an original acquisition cost of \$5,000 or more, to the NSF
Property Administrator, Division of Administrative Services (DAS). A
physical inventory of Government-Owned Equipment (GOE) shall be
conducted every two years pursuant to Section .34f of OMB Circular
A-110. Upon expiration of the grant, the grantee shall report the
property to the Property Section for further agency utilization. (See
GPM 546, "Excess Government Personal Property.")

**546 Excess Government Personal Property**

**546.1 Policy**

a\. As a means of expanding the ability of grantees to accomplish NSF
objectives while conserving supply and equipment funds, NSF will
continue to sponsor the transfer of excess government personal property
to NSF grantees.

b\. Excess government personal property includes all types of personal
equipment and materials (except consumable items such as drugs, paint,
etc.), new or used, owned by the Federal Government and no longer needed
by the holding agency, but having additional useful life. Under
regulations established by the General Services Administration (GSA),
the agency charged with operating this program, excess government
personal property may be reported to, or requested from, GSA by other
Federal agencies, including NSF.

c\. NSF will sponsor the transfer of excess government personal property
to eligible organizations under one of the following conditions:

1\. the use of the property significantly furthers an NSF
grant-supported activity;

2\. the property is such that it would have been procured under the
grant for which property is being requested if additional grant funds
had been available;

3\. the property is used as part of the grant activity and subsequently
for research or science education purposes; or

4\. the property is classified by GSA as scientific or engineering
research equipment and has a unit acquisition cost of \$1,000 or more.
(See GPM 546.6, "Restrictions".)

**546.2 Eligibility**

Eligible organizations are NSF grantees that are public or private
institutions of higher education or non-profit organizations whose
primary purpose is the conduct of research or science education
activities. State and municipal governments, public health units,
hospitals, profit-making firms and individual PI/PDs are not eligible
for excess government personal property under NSF sponsorship.

**546.3 Procedures**

a\. To receive information concerning the availability of property, an
eligible grantee should contact the Property Administrator, DAS. The
Foundation will place the grantee on the list of eligible NSF grantees
with the GSA and will provide the grantee with the names, addresses and
telephone numbers of GSA Area Utilization Officers (AUO) located near
the organization. The grantee should contact an AUO to set up a "needs"
list of the research equipment required for the NSF grant. It is
important that the NSF grant number and the name of the PI/PD be
communicated in all conversations and correspondence regarding excess
property acquisitions, transfers and disposals.

b\. When GSA information on available excess government personal
property is received, the grantee should ascertain whether any items
that are necessary to accomplish the supported project are included.

c\. Materials and equipment so selected should be inspected whenever
possible (see GPM 546.4, "Visiting Holding Agency Facilities"), or the
holding Federal agency should be contacted by the grantee to verify the
condition of the items, because interpretation of condition codes varies
among agencies.

d\. If the condition of the item is acceptable, the grantee should
freeze (reserve) items by calling the GSA office identified in the
catalog. The verbal reservation should then be followed up by a letter.
Items are usually allocated on a first come, first served basis. Since
GSA may have several freezes on a piece of equipment, first come, first
served is interpreted as the first approved written request received by
the GSA office. However, preference will be given by GSA to agencies
which do not grant title to equipment.

e\. The grantee should next prepare and submit to the Property
Administrator, DAS, a property request in six copies. A property request
consists of SF 122, *Transfer Order Excess Personal Property,* and a
separate written justification statement. The justification will explain
why the property is needed to reduce the cost or enhance the performance
under the specific grant for which the property is requested.

f\. The SF 122 should be signed by both the PI/PD and the Authorized
Organizational Representative. The following information should also be
provided on each SF 122:

1\. name of grantee organization;

2\. grant number;

3\. expiration date;

4\. the statement "The above equipment is requested for use by the
grantee in support of research or education as outlined in the grant";
and

5\. the statement "Transfer is in accordance with the provisions of 41
CFR §101.43." The transfer order should also identify the automatic
release date (from the GSA catalog) to preclude loss of property before
the transaction is processed.

g\. The written justification should detail the scientific need for the
equipment as it relates to the particular grant under which the
equipment is to be used, and should cite the conditions of this section
as being binding upon the grantee, should the property be acquired.

h\. Upon receipt by NSF, the property request will be reviewed. As
confirmation of approval, the grantee will receive copies of the SF 122
from NSF and, subsequently, from GSA. If the request is disapproved, it
will be returned to the grantee with an appropriate explanation.

i\. Upon receipt of the requested property, the grantee should
immediately return a copy of the SF 122 to NSF as evidence of delivery.
Cancellations by GSA, or nonreceipt within a reasonable period of time,
should also be reported to NSF after follow-up inquiries have been made
to GSA.

**546.4 Visiting Holding Agency Facilities**

a\. Under current GSA regulations all non-Federal grantee
representatives wishing to visit holding agency facilities to screen or
freeze government excess personal property must receive prior
certification from GSA. This certification is not required for those
grantees who do their selecting from GSA catalogs and who freeze
property only via telephone requests.

b\. The number of screeners on a grant should be limited to no more than
two persons. The primary screener should be the PI/PD. However, if the
PI/PD finds it impossible to screen, he/she may designate, in writing, a
substitute.

c\. Normally, certification will be on a regional basis; however, NSF
will, under certain circumstances, sponsor grantee representatives who
need to make interregional visits in order to secure equipment not
readily available within their region. Each person who plans to visit
holding agency facilities must submit to NSF a completed GSA Form 2946,
*Authorization Certificate to Select/Freeze Excess Personal Property*.
This form may be obtained from the Property Administrator, DAS. The GSA
Regional Office in which the grantee or organization is located will
authorize all regional certifications and serve as principal coordinator
on interregional requests. The authorization will be forwarded to the
grantee via NSF.

**546.5 Dollar Limitation**

To ensure equitable distribution of excess government personal property,
grantees may be authorized to acquire property under each NSF project
grant up to a total acquisition cost equal to the dollar value of that
particular grant. Any request for excess property which causes the total
to exceed the value of the grant will require additional justification
beyond that requested in GPM 546.3, "Procedures." A higher percentage of
excess property requested under a particular grant by a grantee must be
approved by an administrative level in NSF which is higher than the
Program Officer who normally administers the grant. NSF will give full
consideration to all factors in determining whether to approve transfers
of excess property above the dollar value of a given grant. Grantees are
therefore urged to be selective in their requests for excess government
personal property to limit quantities of each item where possible and to
avoid stockpiling items for future use.

**546.6 Restrictions**

a\. NSF will sponsor the transfer of excess government personal
equipment to eligible organizations only under project grants. As
defined in the GSA regulations, "project grants" refers to grants made
for specific purposes with established termination dates, e.g., grants
made to specific organizations to perform specific tasks within set time
frames and costs. No excess property may be acquired on behalf of
conference grants, publication-support grants or travel grants. In
addition, on "summer-type training grants," no property may be acquired
after the training period has terminated. Further, grantees should
exercise careful judgment on the appropriateness of requesting excess
personal property when only a short period of time exists between the
date of the property request and the completion or successful
accomplishment of the NSF-supported activity. GSA will consider items of
personal property as research equipment for transfer without
reimbursement to NSF for use by a grantee when the property requested
has a unit acquisition cost of \$1,000 or more and is within Federal
Supply Classification Groups:

1\. 14 Guided Missiles;

2\. 43 Pumps and Compressors;

3\. 48 Valves;

4\. 58 Communication, Detection and Coherent Radiation Equipment;

5\. 59 Electrical and Electronic Equipment Components;

6\. 66 Instruments and Laboratory Equipment;

7\. 67 Photographic Equipment;

8\. 70 General Purpose Automatic Data Processing Equipment, Software,

#### Supplies and Support Equipment; or

9\. 74 Office Machines and Visible Record Equipment.

Automatic data processing equipment must be acquired under the
provisions in 41 CFR §201.23.

b\. GSA will give consideration to the transfer without reimbursement of
items of excess property in other Federal supply classification groups
and items with a unit acquisition cost of less than \$1,000, when NSF
certifies that the item requested is a component part of or related to a
piece of research equipment or is an otherwise difficult to acquire item
needed for scientific or engineering research. Items of property
determined by GSA to be common-use or general purpose property,
regardless of classification or unit acquisition cost, shall not be
transferred to a grantee for the purpose of cannibalization, unless the
granting agency sends with the transfer request a supporting statement
which clearly indicates that disassembly of the requested item for
secondary use of its component parts, or for repair and maintenance of a
similar item, has greater potential benefit than utilization of the item
in its existing form and that a clear cost savings to the government
will result, subject to final determination by GSA.

**546.7 Costs**

Excess government personal property is usually secured without cost.
However, the recipient grantee should specify the method of shipment and
must pay all costs of packing, transportation and subsequent
installation, rehabilitation and maintenance if required. Grant funds
may be used to pay such costs.

**546.8 Title**

Title to excess government personal property obtained by academic and
other non-profit grantees through NSF sponsorship remains with the
government until the property is delivered to the grantee organization.
Upon delivery, the grantee should forward to NSF a receipted SF 122
which clearly lists the items of property actually obtained by the
grantee. Unless NSF informs the grantee to the contrary, when this SF
122 is received at NSF, title to all property acquired will
automatically pass to and be vested in the grantee organization, subject
to the understanding that the property will be used for research or for
science education purposes as long as it has a useful life. At such time
as the property is no longer useful for such purposes, it may be
disposed of in accordance with organizational practices, but any
proceeds therefrom shall be used by the grantee solely for research or
science education purposes. Under certain conditions, such as when
highly specialized equipment is involved, NSF may retain title to excess
property. When such a condition exists, NSF will inform the grantee.
Excess government personal property may not be transferred to a foreign
country without the express written approval of DGA.

**546.9 Accountability and Recordkeeping**

a\. While no particular type of classification of accounts or inventory
system is required, NSF expects that the responsible officials of the
grantee organization will exercise careful stewardship of excess
government personal property acquired in support of projects undertaken
with NSF's financial assistance. In accordance with GPM 546.5, "Dollar
Limitation," relating to the dollar limitation on the amount of excess
government personal property provided by NSF, grantees should maintain
appropriate inventory procedures that will enable them to identify those
requests which require more extensive administrative and scientific
justification. In those cases where title to excess government personal
property remains with the government, the grantee must maintain suitable
records to identify its location, description, utilization and value.
The use of excess government personal property under an NSF grant is
subject to inspection and audit by representatives of NSF at all
reasonable times during the life of the grant under which the property
was acquired.

b\. Further details may be obtained from the Property Administrator,
Division of Administrative Services, National Science Foundation, 4201
Wilson Boulevard, Arlington, VA 22230.

**CHAPTER VI**

Allowability of Costs

This chapter covers the general applicability of Federal cost principles
to NSF cost reimbursement grants, including a discussion of selected
items of cost and description of NSF prior approval requirements. It
consists of the following topics:

**600 BASIC CONSIDERATIONS**

**610 DIRECT COSTS**

**620 OTHER DIRECT COSTS**

**630 INDIRECT COSTS**

**640 FEE PAYMENTS UNDER NSF GRANTS**

**600 BASIC CONSIDERATIONS**

Expenditures under NSF cost reimbursement grants are governed by the
Federal cost principles and must conform with NSF policies, grant
special provisions and grantee internal policies. Grantees should ensure
that costs claimed under NSF grants are allowable, allocable, and
reasonable. In the event a grantee anticipates charging an item of
direct cost that might subsequently be disputed, an authorized official
of the grantee organization should discuss the matter with the cognizant
NSF Grants Officer and document the conditions or factors surrounding
the item in order to avoid possible subsequent disallowance.

### Federal Cost Principles 

**601.1 Applicability to Grantees**

The governing Federal cost principles applicable to specific types of
grantees are as follows:

+-------------------------+--------------------------------------------+
| ## Type of Organization | ##### **Ap                                 |
|                         | plicable Federal Cost Principles** {#appli |
|                         | cable-federal-cost-principles .unnumbered} |
+-------------------------+--------------------------------------------+
| #                       | OMB Circular A-21                          |
|                         |                                            |
| # E                     |                                            |
| ducational Institutions |                                            |
+-------------------------+--------------------------------------------+
| Non-Profit              | OMB Circular A-122                         |
| Organizations           |                                            |
+-------------------------+--------------------------------------------+
| State/Local Governments | OMB Circular A-87                          |
+-------------------------+--------------------------------------------+
| #                       | Federal Acquisition Regulation (FAR), Part |
|                         | 31                                         |
| # Commercial Firms      |                                            |
+-------------------------+--------------------------------------------+

**601.2 Applicability to Subrecipients**

Grantees are responsible for assuring that costs of all subawards under
NSF grants are subject to those cost principles and procedures
appropriate to the subaward type and organization involved. For example,
if the subaward is a cost reimbursement type with a commercial concern,
FAR Subpart 31.2 would apply.

**601.3 Conflicting Guidelines**

In the event of any discrepancy between the summary information
contained in this chapter and any specific provision of the applicable
Federal cost principles, the cost principles in effect as of the
effective date of the NSF grant will govern. In the case of a
discrepancy between the special provisions of an NSF grant and the
standards of the applicable cost principles, the special provisions of
the grant will govern.

### 602 Other Considerations 

**602.1 Maximum Obligation**

The maximum obligation of NSF for support of the project will not exceed
the amount specified in the grant, as amended. NSF does not amend grants
to provide additional funds for such purposes as reimbursement for
unrecovered indirect costs resulting from the establishment of final
negotiated rates or for increases in salaries, fringe benefits and other
costs.

**602.2 Pre-Award Costs**

a\. Grantees may incur allowable pre-award costs within the 90 day
period immediately preceding the effective date of the grant providing:

> 1\. the approval of pre-award spending is made and documented in
> accordance with the grantee\'s procedures; and
>
> 2\. the advanced funding is necessary for the effective and economical
> conduct of the project.

b\. Pre-award expenditures are made at the grantee\'s risk. Grantee
authority to approve pre-award costs does not impose an obligation on
NSF: (1) in the absence of appropriations; (2) if an award is not
subsequently made; or (3) if an award is made for a lesser amount than
the grantee anticipated.

c\. Requests for pre-award costs for periods exceeding 90 calendar days
must be submitted electronically via use of the Notification and Request
module in FastLane. Pre-award expenditures prior to funding of an
increment within a continuing grant are not subject to this limitation
or approval requirement, but are subject to paragraph b. above.

**602.3 Post-Expiration Costs**

NSF funds may not be expended subsequent to the expiration date of the
grant except to liquidate valid commitments that were made on or before
the expiration date. (See GPM 452, \"Final Disbursement Reporting,\" and
GPM 617, \"Publication, Documentation and Dissemination\".) For example,
commitment of project funds is valid when specialized (research)
equipment is ordered well in advance of the expiration date but where,
due to unusual or unforeseen circumstances, delivery of such equipment
is delayed beyond the expiration date. The costs of equipment ordered
after the expiration date, however, may not be charged to the project.

### 603 Prior Approval 

**603.1 OMB Directive**

NSF has waived most cost related and administrative prior approvals
required by OMB Circulars A-21 and A-110. Grantees should refer to the
general conditions referenced in the grant, and GPM Exhibit III-1 for
information on NSF required prior approvals.

**603.2 NSF Prior Approval Policy**

a\. The funding of items identified in budget constitutes NSF's
authorization for the grantee to incur these costs, provided there is
not a specific limitation in the grant language and the costs are
otherwise allowable under the cost principles.

b\. Costs not specifically budgeted in an NSF award may be allowable
provided that prior approval is not required and costs are incurred
consistently with the applicable cost principle.

### 610 DIRECT COSTS 

The following subsections summarize the allowability of frequently
encountered direct cost items in the order they appear in the grant
budget.

### 611 Salaries, Wages and Fringe Benefits 

**611.1 Salaries and Wages**

a\. All Grantees. All remuneration paid currently or accrued by the
organization for employees working on the NSF-supported project during
the grant period is allowable to the extent that:

> 1\. total compensation to individual employees is reasonable for the
> work performed and conforms to the established policy of the
> organization consistently applied to both government and
> non-government activities; and
>
> 2\. the charges for work performed directly under NSF grants and for
> other work allocable as indirect costs are determined and documented
> as provided in the applicable Federal cost principles.

b\. Colleges and Universities. Section J.8 of OMB Circular A-21
establishes special criteria for work performed on government projects
by faculty members during and outside the academic year.

In summary these are:

1\. Academic Year Salaries. To be based on the individual faculty
member\'s regular compensation for the continuous period which, under
the policy of the institution concerned, constitutes the basis of
his/her salary. Except as provided in GPM 616.2, \"Intra-University
Consulting,\" charges to Federal grants, irrespective of the basis of
computation, will not exceed the proportionate share of the base salary
for that period.

2\. Periods Outside the Academic Year. During the summer months or other
periods not included in the period for which the base salary is paid,
salary is to be paid at a monthly rate not in excess of the base salary
divided by the number of months in the period for which the base salary
is paid. NSF policy on funding of summer salaries (known as NSF\'s
two-ninths rule) remains unchanged: proposal budgets submitted should
not request, and NSF-approved budgets will not include, funding for an
individual investigator which exceeds two-ninths of the academic year
salary. This limit includes summer salary received from all NSF-funded
grants.

3\. Extra Compensation Above Base Salary. Requests may be included in
proposals for salary payments for extra compensation only for science
and engineering education projects when the particular program
solicitation specifically provides that extra compensation may be
requested. This extra compensation above the base salary must be
approved by NSF. Generally this is done in situations such as teaching
evening or weekend classes, or for administrative work done as overload
prior to or following a project. Further, the extra compensation shall
be computed at a rate not in excess of the monthly rate of the base
academic year salary.

4\. Sabbatical Leave. Unless there are special conditions in an
applicable NSF program solicitation or in the grant, charges to an NSF
grant for services rendered to the project by an individual during
his/her sabbatical period are allowable provided that such compensation
is:

> \(a\) proportional to the service rendered;
>
> \(b\) in accordance with established institutional sabbatical policies
> regardless of source of funds (Section J.40 of OMB Circular A-21); and
>
> \(c\) at a rate which, when added to the individual\'s sabbatical
> salary rate, does not exceed the individual\'s base salary rate for
> the individual\'s most recent academic year or equivalent prior
> period.

NSF salary support during sabbatical periods is only intended to make up
the difference between sabbatical rate of pay and the individual\'s base
salary rate for periods during which the individual is performing work
on an NSF-sponsored project.

**611.2 Fringe Benefits**

Fringe benefits are allowable as a direct cost (if not included as an
indirect cost) in proportion to the salary charged to the grant, to the
extent that such payments are made under formally established and
consistently applied organizational policies.

### Equipment 

**612.1 Related Equipment Guidelines**

Additional NSF guidelines on equipment are found in GPM 540, \"Property
Management Standards.\"

**612.2 Definitions**

The following definitions, derived from OMB Circulars A-110 and A-21,
apply to all NSF grants (or amendments thereto):

a\. ACQUISITION COST OF EQUIPMENT means the net invoice price of the
equipment, including the cost of modifications, attachments, accessories
or auxiliary apparatus necessary to make the property usable for the
purpose for which it was acquired. Other charges, such as the cost of
installation, transportation, taxes, duty or protective in-transit
insurance, should be included in the unit acquisition cost consistent
with the grantee's regular accounting practices.

b\. EQUIPMENT means tangible nonexpendable personal property including
exempt property charged directly to the grant having a useful life of
more than one year and an acquisition cost of \$5,000 or more per unit.
However, consistent with grantee policy, lower limits may be
established.

c\. GENERAL PURPOSE EQUIPMENT means permanent equipment (as defined in
b., above) that is usable for other than research, medical, scientific
or technical activities, whether or not special modifications are needed
to make it suitable for a particular purpose. Examples of general
purpose equipment include office equipment and furnishings, air
conditioning equipment, reproduction and printing equipment, motor
vehicles and computer equipment.

d\. SPECIAL PURPOSE EQUIPMENT means permanent equipment (as defined in
b., above) which is usable only for research, medical, scientific or
technical activities. Examples of special purpose equipment include
microscopes, x-ray machines, specialized drilling equipment,
spectrometers, and diamond knives.

**612.3 Special Purpose Equipment**

Expenditures for special purpose equipment are allowable as direct costs
provided the acquisition of items with a unit cost of \$5,000 or more
is:

a\. necessary for the research or activity supported by the grant;

b\. not otherwise reasonably available and accessible;

c\. of the type normally charged as a direct cost to sponsored
agreements; and

d\. acquired in accordance with organizational practice.

NSF review and approval is required for all equipment purchases by small
business or other commercial organizations.

**612.4 General Purpose Equipment**

Expenditures for general purpose equipment are normally unallowable
unless the equipment is primarily or exclusively used in the actual
conduct of research. NSF review and approval is required for all
equipment purchases by small business or other commercial organizations.

**613 Materials and Supplies**

Materials and supplies are defined as tangible personal property other
than equipment, costing less than \$5,000, or other lower threshold
consistent with grantee policy. Materials and supplies that are
necessary to carry out the project are allowable as prescribed in the
governing cost principles.

### 614 Travel Costs 

a\. Expenses for transportation, lodging, subsistence and related items
incurred by project personnel and by outside consultants employed on the
project (GPM 616.1, \"Outside Consultants\") who are on travel status on
business related to an NSF-supported project are allowable as prescribed
in the governing cost principles. The requirements for prior approval
detailed in the governing cost principles are waived.

b\. Except as provided in the governing cost principles, the difference
between economy airfare and a higher-class airfare is unallowable. A
train, bus or other surface carrier may be used in lieu of or as a
supplement to air travel at the lowest first-class rate by the
transportation facility used. However, if such travel could have been
performed by air, the allowance will not normally exceed that for jet
economy air fare.

c\. Foreign travel costs of dependents of key project personnel is
allowable provided the:

> 1\. individual is a key person who is essential to the research on a
> full-time basis;
>
> 2\. individual\'s residence away from home and in a foreign country is
> for a continuous period of six months or more and is essential to the
> effective performance of the project; and
>
> 3\. dependent\'s travel allowance is consistent with the policies of
> the organization administering the grant.

d\. For restrictions concerning the use of non-US flag carriers while on
foreign travel see GPM 761, "Travel to Foreign Countries."

**615 Computer Costs**

The costs of services involving the use of highly complex or specialized
facilities operated by the organization, such as computing facilities,
are allowable provided the charges meet the conditions of the governing
cost principles. Awardees should address lease versus purchase factors
as required by OMB Circular A-110 Subpart C.44, "Procurement
Procedures."

### 616 Consultant Services 

**616.1 Outside Consultants**

a\. Grantees normally are expected to utilize the services of their own
officers or employees to the maximum extent in managing and performing
the activities supported by NSF grants. Where it is necessary for a
grantee to enter into a subaward for the services of persons who are not
its officers or employees, it is expected to do so in accordance with
written organizational standards which provide for consideration of the
factors outlined in the governing cost principles.

b\. If the need for consultant services is anticipated, the proposal
narrative should provide appropriate rationale, and the summary proposal
budget should estimate the amount of funds that may be required for this
purpose. To the extent possible, consultant rates should show separate
amounts for actual services and each of the components of the rate (such
as fringe benefits, indirect costs, and other expenses).

c\. Costs of professional and consultant services rendered by persons
who are members of a particular profession or possess a special skill
and who are not officers or employees of the performing organization are
allowable when reasonable in relation to the services rendered. However,
payment for a consultant\'s services may not exceed the daily equivalent
of the then current maximum rate paid to an Executive Schedule Level IV
Federal employee (exclusive of indirect cost, travel, per diem, clerical
services, fringe benefits and supplies).

d\. In determining the allowability of costs in a particular case, no
single factor or any special combination of factors is necessarily
determinative. However, the following factors, among others, are
relevant:

> 1\. the nature and scope of the service rendered in relation to the
> service required;
>
> 2\. the necessity of issuing a subaward for the service considering
> the organization\'s capability in the particular area;
>
> 3\. the past pattern of such costs, particularly in the years prior to
> the award of government contracts and grants;
>
> 4\. the impact of government contracts and grants on the
> organization\'s total activity (e.g., what new problems have arisen);
>
> 5\. whether the proportion of government work to the organization\'s
> total activity is such as to influence the organization in favor of
> incurring the cost, particularly where the services rendered are not
> of a continuing nature and have little relationship to work under
> government contracts and grants;
>
> 6\. whether the service can be performed more economically by
> employment rather than by consulting;
>
> 7\. the qualifications of the individual or concern rendering the
> service and the normal/customary fees charged and received by the
> individual for comparable services, especially on non-government
> contracts and grants; and
>
> 8\. adequacy of the contractual agreement for the service (e.g.,
> description of the service, estimate of time required, rate of
> compensation and termination provisions).

e\. In addition, retainer fees to be allowable must be supported by
evidence of bona fide services available or rendered.

f\. Costs of legal, accounting and consulting services and related costs
incurred in connection with organization and reorganization, defense of
antitrust suits and the prosecution of claims against the government are
unallowable. Costs of legal, accounting and consulting services and
related costs incurred in connection with patent infringement litigation
are unallowable unless otherwise provided for in the grant.

g\. Grantees may hire consultants not identified in the grant proposal
or award, provided:

> 1\. it is in accordance with written organizational standards;
>
> 2\. grant funds are reallocated in accordance with the grantee\'s
> policies which are consistent with the governing cost principles; and
>
> 3\. it is within the limits of the grant funding.

**616.2 Intra-University Consulting**

Since intra-university consulting is assumed to be undertaken as a
university obligation requiring no compensation in addition to full-time
salary, the principles summarized in GPM 611, \"Salaries, Wages and
Fringe Benefits,\" also apply to those who function as consultants or
otherwise contribute to a project conducted by another faculty member of
the same institution. However, in unusual cases where consultation is
across departmental lines or involves a separate or remote operation,
and the work performed by the consultant is in addition to his/her
regular appointment, any charges for such work representing extra
compensation above the salary are allowable if consistent with
established university policy and the applicable cost principles.

**616.3 Federal Employees**

Employees of the Federal government (other than NSF) may be utilized as
lecturers or staff members on a project and may receive compensation
and/or expenses if they obtain prior approval from their agencies to
participate, and if services to the project are performed outside their
regular working hours or while they are on leave status from official
duties. Under no circumstances may NSF employees receive compensation
from an NSF-supported project.

**617 Publication, Documentation and Dissemination**

a\. Costs of documenting, preparing, publishing, disseminating and
sharing research findings and supporting material are allowable charges
against the grant.

b\. Page charges for scientific and engineering journal publication are
allowable where:

> 1\. the research papers report work supported by NSF; and
>
> 2\. the charges are levied impartially on all research papers
> published by the journal, whether by non-government or by government
> authors.

c\. GPM 452, \"Final Disbursement Reporting,\" permits a grantee to
transfer from the grant account to an institutional account an amount
equal to valid unpaid obligations outstanding at the time a grant
expires. Grantees should refer to this section if it has incurred valid
commitments for the costs of publication or sharing of research results
and it is not possible to effect an actual payment for such charges by
the time the final disbursements are due.

### 618 Participant Support Costs 

**618.1 General**

a\. Participant support costs are direct costs for items such as
stipends or subsistence allowances, travel allowances and registration
fees paid to or on behalf of participants or trainees (but not
employees) in connection with meetings, conferences, symposia or
training projects.

b\. Funds provided for participant support may not be used by grantees
for other categories of expense without the specific prior written
approval of the cognizant NSF Program Officer. Therefore, awardee
organizations must account for participant support costs separately.

c\. Participant support allowances may not be paid to trainees who are
receiving compensation, either directly or indirectly, from other
Federal government sources while participating in the project. A non-NSF
Federal employee may receive participant support allowances from grant
funds provided there is no duplication of funding of items and provided
no single item of participant cost is divided between his/her parent
agency and NSF grant funds.

d\. Additional guidelines are found at GPM 734, "Dissemination and
Sharing of Research Results," and GPM 740, "Publication/Distribution of
Grant Materials."

**618.2 Stipends or Subsistence Allowances**

To help defray the costs of personal maintenance while participating in
a conference or training activity, participants may be paid a stipend,
per diem or subsistence allowance, based on the type and duration of the
activity, as outlined in the pertinent program solicitation and in the
grant. Such allowances must be reasonable, in conformance with the usual
policy of the grantee organization and limited to the days of attendance
at the conference plus the actual travel time required to reach the
conference location by the most direct route available. Where meals or
lodgings are furnished without charge or at a nominal cost (e.g., as
part of the registration fee), the per diem or subsistence allowance
will be correspondingly reduced. Although local participants may
participate in conference meals and coffee breaks as provided for in GPM
625, \"Meetings and Conferences,\" grant funds may not be used to pay
per diem or similar expenses for local participants in the conference.

**618.3 Travel Allowances**

a\. Travel costs of participants may be allowable as outlined in the
pertinent program solicitation and in the grant. If so, the restrictions
regarding class of accommodations (see GPM 614, \"Travel Costs\") and
use of U.S.-flag air carriers (see GPM 761, \"Travel to Foreign
Countries\") are applicable.

b\. In training activities that involve field trips, costs of
transportation of participants are allowable.

### OTHER DIRECT COSTS 

**621 Rearrangements and Alterations**

a\. Except under certain programs, NSF does not normally make grants for
construction or facility improvements. However, rearrangement and
alteration costs that do not constitute construction (i.e.,
rearrangements and alterations aggregating less than \$25,000) may be
allowable under NSF grants to adapt space or utilities within a
completed structure to accomplish the objective of the NSF-supported
activity, provided that:

1\. the grantee is not an individual or a foreign institution;

> 2\. the building has a usable life consistent with project purposes
> and is architecturally suitable for conversion;
>
> 3\. the rearrangement and alteration are essential to the project
> supported by the grant; and
>
> 4\. the space involved will actually be occupied by the project. In
> situations where the space is rented, in order for the costs of the
> rearrangement and alteration to be allowable, the grantee must secure
> a lease for the length of the project. (See GPM 623, \"Rental or Lease
> of Facilities or Special Purpose Equipment\".)

b\. Rearrangements and alterations under \$25,000 may be approved by
grantees. For rearrangements and alterations expenditures exceeding
\$25,000, the grantee must request prior approval from NSF via use of
the Notification and Request module in FastLane. Otherwise, any plans
for such rearrangement or alteration should be clearly set forth in the
proposal. If approved by NSF, such approval will be indicated in the
grant. Note that Appendix A, Contract Provisions, of OMB Circular A-110
contains various requirements concerning contracts for construction or
repair in excess of \$2,000.

**622 News Release Costs**

In amplification of the provisions of the various cost principles
regarding public information service costs, the cost of news releases
announcing the results of an NSF-supported project is allowable. In the
event the performing organization wishes to join with NSF in a
simultaneous news release, arrangements may be made through the NSF\'s
Office of Legislative and Public Affairs, Public Affairs Group,
telephone (703) 292-8070 (see GPM 812.1, \"Press Releases\").

**623 Rental or Lease of Facilities or Special Purpose Equipment**

a\. Normally the grantee is expected to make appropriate facilities
available without direct charge to grant funds. However, on occasion, it
is necessary to use facilities not under the control of the grantee.
Rental of space off-site may be allowable, for example, for a research
project if laboratory facilities or other work areas of a type or
coverage not normally available to the grantee are required.

b\. Rental of special purpose equipment is allowable. See also GPM 615,
\"Computer Costs.\"

**624 Relocation Costs**

a\. Relocation costs may be charged to an NSF grant as an other direct
cost in accordance with the applicable governing cost principles
provided that:

> 1\. a proposal for NSF support specifically indicates that the grantee
> intends to hire a named individual for full-time work on the project;

2\. such recruitment action is not disapproved by the grant terms; and

3\. the prospective employee or visiting staff member:

> \(a\) is essential to the project on a full-time basis for a
> continuous period of at least twelve months; and
>
> \(b\) is regularly located at a place sufficiently removed from the
> project site that his/her employment necessitates the change.

b\. The amount of actual reimbursement should be in accordance with the
grantee\'s established policy or practice which:

1\. is in conformance with the applicable governing cost principles;

2\. has been approved by the cognizant governing audit agency; and

3\. is consistently applied.

**625 Meetings and Conferences**

The points below summarize the allowability of various items of cost
associated with conferences, symposia, workshops or other meetings
supported by an NSF grant. Any costs charged to an NSF grant also need
to be reasonable and directly allocable to the supported activity.
Meeting and conference costs identified below, are only allowable if
such costs are specifically and clearly identified in the proposed scope
of work and budget, as modified and approved by NSF. NSF funds are not
otherwise to be spent for meals or coffee breaks for intramural meetings
of an organization or any of its components, including, but not limited
to, laboratories, departments and centers.

a\. Conference Facilities. Rental of facilities and necessary equipment
is allowable. (See GPM 623, \"Rental or Lease of Facilities or Special
Purpose Equipment\".)

b\. Supplies. Purchase of expendable materials and supplies necessary
for the meeting is allowable.

c\. Conference Services. Costs of translation services and of recording
and transcribing the proceedings are allowable.

d\. Publication Costs. Costs of publishing the proceedings are allowable
if approved in the grant.

e\. Salaries. Salaries of professional personnel, editorial and clerical
assistants and other staff members are allowable in accordance with GPM
611, \"Salaries, Wages and Fringe Benefits,\" in proportion to the time
or effort devoted to the preparation and conduct of the conference and
summarizing its results.

f\. Consultant Services and Speaker Fees. Reasonable fees and travel
allowances and per diem (or meals provided in lieu of per diem) are
allowable as prescribed in GPM 614, \"Travel Costs,\" and GPM 616,
\"Consultant Services.\"

g\. Meals and Coffee Breaks. When certain meals are an integral and
necessary part of a conference (e.g., working meals where business is
transacted), grant funds may be used for such meals. Grant funds may
also be used for furnishing a reasonable amount of hot beverages or soft
drinks to conference participants and attendees during periodic coffee
breaks.

h\. Participant Support Costs. Participant support costs allowable as
prescribed in GPM 618, \"Participant Support Costs.\" (See also GPM
633.2, \"Exceptions to Basic Policy.\")

i\. Entertainment. Costs of entertainment, amusement, diversion and
social activities and any costs directly associated with such costs
(such as tickets to shows or sports events, meals, lodging, rentals,
transportation and gratuities) are unallowable. Expenses of awardee
employees who are not on travel status, serving as hosts, or otherwise
participating at meals that are primarily social occasions are not
allowable. Costs of employees on travel status are limited to those
allowed under the governing cost principles for travel expenses (see GPM
614, \"Travel Costs\").

j\. Alcoholic Beverages. No federal funds may be spent on alcoholic
beverages.

**630 INDIRECT COSTS**

**631 Background**

As authorized by statute (41 USC §254a) and Comptroller General decision
(B-157584) and recommended by governing cost principles, NSF has elected
to use predetermined fixed overhead rates where appropriate. When NSF
elects not to use predetermined fixed rates, the grant will indicate the
type of indirect cost rate applicable to the award.

**632 Indirect Costs in Proposals for NSF Support**

Each proposal for NSF support of a project should include a budget
indicating the total dollar amount requested from NSF with subtotals for
direct and indirect costs. The amount for indirect costs should be
calculated by applying the current Federally negotiated indirect cost
rate(s) to the approved base(s). For grantees that do not have a current
negotiated rate agreement with a cognizant Federal agency, its business
officer should prepare an indirect cost proposal based on expenditures
for its most recently ended fiscal year. If the proposal is recommended
for funding, the grantee will be required to provide its indirect cost
proposal to support the budgeted indirect rate. The contents and
financial data included in indirect cost proposals vary according to the
make-up of the proposing organization. Guidelines for preparing an
indirect cost proposal are available at
<http://www.nsf.gov/bfa/cpo/oversite/indirect.htm>. Grantees submitting
a proposal to NSF for the first time are encouraged to request guidance
from the Cost Analysis and Audit Resolution Branch.

**633 NSF Policy**

**633.1 Basic Policy**

a\. It is NSF policy that grantees are entitled to reimbursement from
grant funds for indirect costs except where specifically excluded by GPM
633.2, \"Exceptions to Basic Policy,\" or when the grantee waives
entitlement to full reimbursement of indirect costs voluntarily. Also,
some types of awarded indirect cost rates limit full recovery (i.e.,
maximum provisional rates).

b\. The awarded indirect cost rate is generally based upon a grantee's
current Federally negotiated indirect cost rate agreement. When
establishing an indirect rate for an award where the grantee does not
have a current negotiated rate agreement, NSF will consider the rate
proposed in the budget, the grantee's indirect cost proposal submission,
the amount of total funding requested and other pertinent financial
factors. Since some types of rates limit indirect cost recoveries and
requires adjustments, grantees receiving awards should ensure that they
understand the type of indirect cost rate applicable to the award. Types
of indirect cost rates used on NSF awards are as follows:

1.  Maximum Provisional Rate: A maximum provisional rate is a temporary
    rate established for an award to permit funding and reporting of
    indirect costs pending establishment of a final rate (the rate
    determined at the end of an accounting period using "actual" direct
    and indirect cost data). This type of rate limits indirect cost
    recoveries to the lower of the maximum provisional rate established
    at the time of award, or the final rate established at the end of an
    accounting period. Grantees awarded maximum provisional rates are
    required to submit indirect cost proposals to the NSF Cost Analysis
    and Audit Resolution Branch within six months after the close of
    each fiscal year during which the award is active.

2.  Predetermined Fixed Rate: A predetermined fixed rate is a permanent
    funding rate established for an award based on an estimate of costs
    for that period. Grantees may charge NSF projects at the rate(s)
    stipulated in the award. However, should negotiations between the
    organization and the cognizant Federal agency result in changes in
    the approved indirect cost rate not reflected in the NSF award, the
    grantee may charge NSF projects at the newly negotiated rate in
    effect at the time direct cost expenditures are made, provided that
    this method of charging indirect costs is consistently applied and
    meets generally accepted accounting principles; and provided further
    that to do so would not:

```{=html}
<!-- -->
```
a.  reduce or adversely affect the scope of the project;

b.  result in increased costs over the NSF award amount during the award
    period;

c.  decrease the period of support as contemplated in the award; or

d.  be inconsistent with any special indirect cost provision of the
    award.

```{=html}
<!-- -->
```
3.  Fixed Rate: A fixed rate is similar to a predetermined fixed rate in
    that it is a permanent rate established for an award based on an
    estimate of costs for the award period. However, a fixed rate is
    fixed both for funding and reimbursement. Accordingly, when NSF
    funds an award using a fixed indirect cost rate, the grantee is
    required to charge indirect costs at the fixed rate. Changes to
    fixed rates can only be made by an amendment to the award.

4.  Fixed Dollar Amount: A fixed dollar amount limits grantees to the
    "amount" of indirect costs specified in the approved budget. A fixed
    indirect dollar amount is not subject to adjustment.

c\. NSF will not amend a grant solely to provide additional funds for
changes in indirect cost rates.

d\. NSF will generally fund continuing grant increments and supplemental
support at the indirect cost rate(s) approved at the time of the initial
award. (See GPM 260, "Additional Funding Support.")

e\. When a project involves off-campus (off-site) activities, NSF
normally will fund the indirect cost amount on the basis of the
off-campus rate. When a project involves both on- and off-campus
activities, NSF normally will fund the indirect cost amount on the basis
of the on-campus/off-campus policy reflected in the most recent
agreement between the organization and the cognizant Federal agency. In
the absence of such an agreed policy, NSF normally will compute the
indirect cost amount by applying the on-campus rate to the on-campus
base costs and the off-campus rate to the off-campus base costs.

f\. Any negotiations with respect to business and financial matters on
specific grants, including the amount of indirect cost reimbursement,
are conducted by the cognizant Grants Officer in DGA with an authorized
official of the grantee's organization. The NSF Cost Analysis and Audit
Resolution Branch provides advisory assistance to the Grants Officer.

g\. NSF program staff may not negotiate indirect costs as a discrete
item of a proposal budget since only the duly authorized Grants Officer
has authority to negotiate indirect costs. NSF program staff are not
authorized to suggest or request that PI/PDs seek reductions or waivers
of indirect costs except as explicitly specified in applicable NSF
program solicitations.

**633.2 Exceptions to Basic Policy**

a\. No Indirect or Limited Reimbursement. Program solicitations may
indicate no or limited reimbursement for indirect costs. In addition,
NSF generally provides no amounts for indirect costs for the following:

1\. grants to individuals;

> 2\. grants solely for the support of travel, equipment, construction
> of facilities, or doctoral dissertation research (see GPM 333.1,
> \"Unsolicited Research Projects\");
>
> 3\. grants in which NSF support is exclusively in the form of
> fellowships, traineeships or other fixed amounts such as
> cost-of-education allowances;

4.  foreign grantees; or

> 5\. participant support costs. However, an allowance for indirect
> costs associated with participant support costs may be established or
> negotiated in advance when circumstances indicate that the grantee
> could be expected to incur significant expenses in administering
> participant payments (other than salary or other direct expenses being
> reimbursed under the award).

b\. Independent Research and Development (IR&D). NSF does not typically
fund IR&D as part of an indirect cost rate under its grants. IR&D, as
defined at FAR 31.205-18(a), includes cost of effort that is not
sponsored by a grant or required in performance of a contract and that
consists of projects falling within the four following areas:

> 1\. basic research;
>
> 2\. applied research;
>
> 3\. development; and
>
> 4\. systems and other concept formulation studies.

NSF\'s primary purpose is to support and advance independent research
within the scientific and engineering community. NSF has well recognized
and established procedures for supporting research through competitive
grant awards based on merit review of proposed projects. Reimbursement
for independent research and development costs through the indirect cost
mechanism could circumvent this competitive process.

To ensure that all projects receive similar and equal consideration,
eligible organizations may compete for direct funding of independent
research projects they consider worthy of support by submitting
proposals for those projects to NSF. Since proposals for these projects
may be submitted for direct funding, costs for independent research and
development projects are not typically allowable as indirect costs under
NSF grants.

c\. Facilities Capital Cost of Money (FCCM). NSF does not typically fund
facilities capital cost of money under its grants. FCCM is defined for
commercial organizations at FAR 31.205-10 as \"an imputed cost
determined by applying a cost-of-money rate to facilities capital
employed in contract performance.\"

**634 Underrecovery of Indirect Costs**

NSF recognizes that any inability to obtain \"full reimbursement\" for
indirect costs means the grantee must absorb the underrecovery. Any such
underrecovery may be allocated as part of the organization\'s required
cost sharing. (See GPM 330, \"Cost Sharing and Matching.\")

**635 Rebudgeting of Indirect Cost Funds Provided Under NSF Grants**

If the actual allowable indirect costs chargeable to a grant is less
than those funded by NSF under the grant, the grantee may use the
difference to pay additional allowable direct costs under the grant. In
addition, grantees may elect to charge less than the full amount of
allowable indirect costs to grants in order to pay for additional
allowable direct costs.

### 636 NSF Cognizant Organizations

Organizations for which NSF is their cognizant agency for negotiation of
indirect cost rates are required to submit indirect cost proposals,
reconciled to financial statements, within six months after the close of
each accounting year during which NSF has active awards. Indirect cost
proposals should be sent to the Cost Analysis and Audit Resolution
Branch.

### 640 Fee Payments Under NSF Grants 

Payment of fees (profit) are allowable only if specifically permitted by
a program solicitation and only to the extent that is does not exceed
the amount negotiated by the Grants Officer and specified in the award
letter.

**CHAPTER VII**

# OTHER GRANT REQUIREMENTS 

This chapter discusses other grant requirements not addressed in the
preceding chapters. Topics covered are:

## 700 NON-DISCRIMINATION STATUTES

**710 PROTECTION OF LIVING ORGANISMS**

**715 GOVERNMENT PERMITS AND ACTIVITIES ABROAD**

######### 720 CONSTRUCTION, REARRANGEMENTS AND ALTERATIONS 

> **(INCLUDING: DAVIS-BACON ACT, BONDING AND INSURANCE, FLOOD INSURANCE,
> AND SEISMIC SAFETY OF BUILDINGS)**

**730 INTELLECTUAL PROPERTY (INCLUDING PATENTS AND INVENTIONS, AND
COPYRIGHTS)**

**740 PUBLICATION/DISTRIBUTION OF GRANT MATERIALS**

######### 750 PROGRAM INCOME

**760 INTERNATIONAL CONSIDERATIONS (INCLUDING TRAVEL GRANTS AND USE OF
U.S. FLAG CARRIERS)**

**700 NON-DISCRIMINATION STATUTES**

######### 701 General

a\. A number of statutes bar recipients of Federal financial assistance
from excluding persons, because of their race, sex, color, age or
national origin, from participation in Federally supported activities.
These include: Title VI of the Civil Rights Act of 1964 (barring
discrimination on grounds of race, color, or national origin); Section
504 of the Rehabilitation Act (barring discrimination against
individuals with disabilities); and the Age Discrimination Act. Title IX
of the Educational Amendments of 1972 bars sex discrimination in
Federally assisted education programs or activities. In addition to
statutory prohibitions, E.O. 11246 bars various types of discriminatory
employment practices under grants for construction. The following
sections discuss the application of each of these Acts and E.O. 11246 to
NSF grantees.

b\. When a recipient of an NSF grant receives an Equal Opportunity
Complaint, the original complaint should be sent to the Director, Office
of Equal Opportunity Programs, National Science Foundation, 4201 Wilson
Boulevard, Arlington, VA 22230.

**702 Civil Rights Act of 1964**

**702.1 Background**

Section 602 of the Civil Rights Act of 1964 (42 USC §2000d et seq.)
provides that no person in the U.S. shall, on the grounds of race, color
or national origin, be excluded from participation in, be denied the
benefits of, or be otherwise subjected to discrimination under any
program or activity receiving Federal financial assistance. Section 602
requires that each Government

agency which is empowered to extend such financial assistance issue
rules or regulations implementing Title VI of the Act with respect to
such programs or activities administered by the agency.

**702.2 NSF Regulations**

NSF regulations implementing Title VI of the Civil Rights Act are found
at 45 CFR §611. These regulations apply to the grantee and to any
subrecipients such as subawardees, contractors and subcontractors of a
grantee, and successors in interest, (other than subrecipients for
commercially available supplies, materials, equipment or general support
services). The regulations require that as a condition of approval of an
application for assistance, the applicant must execute the Assurance of
Compliance form (see Exhibit VII-1), whether or not a similar assurance
form has been filed with another Federal agency.

**702.3 Assurance of Compliance**

Prospective grantees may either reproduce the Assurance of Compliance
form or request copies from DGA. The signed original should be mailed to
DGA. Once a properly executed form has been filed with NSF, it will
cover all future applications to NSF. Acceptance of a subsequent grant
constitutes affirmation that the Assurance of Compliance will be fully
applicable to the grant.

**702.4 Civil Rights Assurance-Subrecipients**

Before any organization serves as a subrecipient on an NSF grant (for
other than the provision of commercially available supplies, materials,
equipment or general support services), it must first file an Assurance
of Compliance form with either the grantee or NSF.

**702.5 Grant Provisions**

Each NSF grant contains as part of the standard grant conditions an
article implementing Title VI.

**703 Rehabilitation Act**

**703.1 Background**

Section 504 of the Rehabilitation Act of 1973, as amended (29 USC §794)
provides that "no otherwise qualified individual with a disability in
the United States\...shall, solely by reason of her or his disability,
be excluded from the participation in, be denied the benefits of, or be
subjected to discrimination under any program or activity receiving
Federal financial assistance\...."

**703.2 NSF Regulations**

NSF regulations implementing Section 504 are found at 45 CFR §605. With
a few changes, these regulations follow closely the regulations issued
by the DHHS at 45 CFR §84. These regulations also apply to subrecipients
such as subawardees, contractors and subcontractors of a grantee, and
successors in interest (other than subrecipients for the provision of
commercially available supplies, materials, equipment or general support
services).

**703.3 Assurance of Compliance**

In lieu of requiring submission of separate assurances or
certifications, each NSF grant contains as part of the standard grant
conditions a provision stating that acceptance of the grant constitutes
assurance that the grantee will comply with Section 504 and NSF's
implementing regulation.

**703.4 Section 504 Assurance\--Subrecipients**

In lieu of requiring grantees to obtain separate assurances or
certifications from subrecipients receiving financial assistance under
an NSF grant, grantees will include in all subawards (for other than the
provision of commercially available supplies, materials, equipment or
general support services), an assurance of compliance comparable to that
included in NSF grants.

**703.5 Grant Conditions**

Each NSF grant contains as part of the standard grant conditions an
article implementing Section 504 and the NSF regulations. The assurance
requirement of those conditions will be satisfied as indicated in GPM
703.3, "Assurance of Compliance" and 703.4, "Section 504 Assurance -
Subrecipients."

**704 Title IX - Sex Discrimination**

**704.1 Background**

Subject to certain exceptions regarding admission policies at certain
religious and military organizations, Title IX of the Education
Amendments of 1972 (20 USC §§1681-1686) prohibits the exclusion of
persons on the basis of sex from any education program or activity
receiving Federal financial assistance. All NSF grantees are expected to
comply with Title IX.

**704.2 NSF Regulations**

NSF regulations implementing Title IX of the Education Amendments of
1972 are found at 45 CFR 618.

**704.3 Grant Conditions**

Each NSF grant contains, as part of the standard grant conditions, an
article implementing Title IX.

**705 Age Discrimination Act**

**705.1 Background**

The Age Discrimination Act of 1975, as amended (42 USC §§6101 et seq.),
provides that pursuant to regulations issued by DHHS "no person in the
United States shall, on the basis of age, be excluded from participation
in, be denied the benefits of, or be subjected to discrimination under,
any program or activity receiving Federal financial assistance."

**705.2 NSF Regulations**

NSF regulations implementing the Age Discrimination Act are found at 45
CFR §617.

**705.3 Grant Conditions**

Each NSF grant contains, as part of the standard grant conditions, an
article implementing the Age Discrimination Act.

**706 Equal Employment Opportunity Under E.O. 11246**

**706.1 Background**

E.O. 11246, as amended, requires contractors and subcontractors
performing Federally assisted construction projects to provide equal
opportunity, without regard to race, color, religion, sex or national
origin, to persons employed or seeking employment with them. This E.O.
may apply to some NSF grants for construction.

**706.2 Grant Conditions**

In instances when E.O. 11246 is applicable, the grant will include an
equal opportunity clause in conformance with regulations issued by the
Secretary of Labor at 41 CFR §60.

######### 710 PROTECTION OF LIVING ORGANISMS

**711 Human Subjects**

**711.1 Background**

The grantee is responsible for the protection of the rights and welfare
of human subjects involved in activities supported by NSF. All research
involving human subjects supported or otherwise subject to regulation by
any Federal agency is covered by a policy set forth in a Common Rule,
"*Protection of Human Subjects*"

*(*[http://www.access.gpo.gov/nara/cfr/waisidx_99/45cfr690_99.html).]{.underline}

**711.2 NSF Regulation**

NSF's Common Rule on Protection of Human Subjects is available on the
NSF website at <http://www.nsf.gov/bfa/dga/policy/45cfr690.pdf>*.*
Guidance about the regulation is available at
[http://www.nsf.gov/bfa/dga/policy/guidance.htm#human](http://www.nsf.gov/bfa/cpo/policy/guidance.htm#human).

**711.3 Certification of Compliance**

Before a research project involving the use of human subjects can be
supported, a proposer must certify that the research has been approved,
is exempt, or else is subject to continuing review by the appropriate
Institutional Review Board (IRB) in accordance with the regulations in
the Common Rule. The IRB must be formally approved as complying with the
Common Rule in an "assurance" that is filed with any Federal agency
participating in the Common Rule. Such assurances are most commonly
filed with the Office of Human Research Protection,
([http://ohrp.osophs.dhhs.gov/)]{.underline}, Department of Health and
Human Services (DHHS) or with NSF. Categories of research that are
exempt from this requirement are described at 45 CFR §690.101(b).
Required contents and procedures for approval of assurances are set
forth at 45 CFR §690.103. Prospective grantees should contact the
relevant Program Officer for more information.

### 712 Research Involving Recombinant DNA Molecules

**712.1 Applicability**

This section applies to all research, for which NSF research grant funds
are used, that falls within the scope of the *Guidelines for Research
Involving Recombinant DNA Molecules (NIH Guidelines*)
(<http://www4.od.nih.gov/oba/rac/guidelines/guidelines.html>), as
amended in January 2001, hereafter referred to as the "Guidelines".

**712.2 Policy**

NSF grantees performing research within the U.S. that falls within the
scope of the Guidelines shall comply with the Guidelines, including the
procedural requirements and any subsequent revisions as they are
published in the Federal Register. Grantee responsibilities include:

a\. Each organization involved in the conduct of NSF-supported
recombinant DNA research subject to the Guidelines must have a standing
Institutional Biosafety Committee (IBC) as specified in Section IV of
the Guidelines.

b\. Recombinant DNA research subject to the Guidelines must be
registered with the IBC indicating compliance with the containment
requirements specified in Part III of the Guidelines. IBCs are required
to keep records of recombinant DNA research conducted at their
organization in a form that is available to NSF upon request.

**712.3 Research Requiring Prior Approval of the Director, NIH**

In certain instances research should not be initiated or registered with
IBCs prior to approval and determination of containment level by the
Director, NIH. Normally such experiments are reviewed by the Recombinant
DNA Advisory Committee before a decision is made by the Director, NIH.
Such instances are:

a\. research for which containment levels are not explicitly specified
by the Guidelines;

b\. research involving experiments prohibited by the Guidelines, i.e.,
requests for exceptions to the Guidelines; and

c\. requests to perform experiments without regard to the containment
specified in the Guidelines, i.e., exemptions from the Guidelines.

**712.4 Recombinant DNA Research Outside the U.S.**

Recombinant DNA research within the scope of the Guidelines that is
performed outside of the U.S. using funds provided by NSF for
transportation, salaries or direct research expenses must comply with
the U.S. or host country standards. If the research is to be carried out
in a country that has adopted guidelines comparable to those of the
U.S., a document with information and endorsements assuring compliance
to the host organization standards must be submitted to NSF. NSF funds
may not be used to carry out research using recombinant DNA in a country
that has not adopted national guidelines unless the research is in full
compliance with the Guidelines and the procedures required for
NSF-supported research within the U.S.

**713 Animal Welfare Requirements**

a\. The grantee is responsible for the humane care and treatment of any
vertebrate animal used or intended for use in such activities as field
or laboratory research, development, training, experiments, biological
testing or for related purposes supported by NSF grants.

b\. Any grantee performing research on vertebrate animals[^8] shall
comply with the Animal Welfare Act \[7 U.S.C. 2131 et seq.\] and the
regulations promulgated thereunder by the Secretary of Agriculture \[9
CFR 1.1-4.11\] pertaining to the humane care, handling, and treatment of
vertebrate animals held or used for research, teaching or other
activities supported by Federal awards. The awardee is expected to
ensure that the guidelines described in the National Academy of Science
(NAS) Publication, "*Guide for the Care and Use of Laboratory Animals*"
(1996) are followed and to comply with the *Public Health Service Policy
and Government Principles Regarding the Care and Use of Animals*
(included as Appendix D to the NAS Guide).

c\. NSF proposal preparation requirements for projects involving the use
of vertebrate animals are contained in the GPG Chapter II, Section
C.II.d.

d\. Prior to the issuance of an award for a project involving use of
vertebrate animals, the project must be approved by an Institutional
Animal Care and Use Committee (IACUC) established through a
multi-project assurance with the Office of Laboratory Animal Welfare
(OLAW) of the NIH, or else through a single-project assurance approved
by the NSF.

e\. During the life of the award, additional IACUC approval must be
obtained if the protocols for use of vertebrate animals have been
changed substantively from those originally proposed and approved, or if
the previous approval is more than three years old. In the event the
grantee\'s multi-project Assurance is cancelled or lapses, the grantee
must immediately notify the NSF Grants Officer identified in the award.

f\. Research facilities subject to the Animal Welfare Act using or
intending to use live animals in research and who receive Federal
funding are required to register the facility with the Animal and Plant
Health Inspection Service (APHIS), U.S. Department of Agriculture. A
current listing of licensed animal dealers may also be obtained from
APHIS. The location of the nearest APHIS Regional Office, as well as
information concerning this and other APHIS activities, may be obtained
at [\<http://www.aphis.usda.gov/\>]{.underline}.

g\. Awards to U.S. grantees for projects involving the care or use of
vertebrate animals at a foreign institution or foreign field site also
require approval of research protocols by the U.S. grantee's IACUC. If
the project is to be funded through an award to a foreign institution or
through an individual fellowship award that will support activities at a
foreign institution, NSF will require a statement of compliance that the
activities will be conducted in accordance with all applicable laws in
the foreign country and that the International Guiding Principles for
Biomedical Research Involving Animals (see
[\<http://www.cioms.ch/\>]{.underline}) will be followed.

**714 Marine Mammal Protection Act**

The protection of marine mammals in research activities supported by NSF
grants is the responsibility of the grantee. Proposals submitted to NSF
in support of marine research activities must include a statement that
the grantee will comply with the Marine Mammal Protection Act of 1972,
(16 USC §§1361-1421h).

**715 Government Permits and Activities Abroad**

a\. For awards that include activities requiring permits from
appropriate Federal, state, or local government authorities, the awardee
should obtain any required permits prior to undertaking the proposed
activities.

b\. The awardee should assure that activities carried on outside the
U.S. are coordinated as necessary with appropriate U.S. and foreign
government authorities and that necessary licenses, permits or approvals
are obtained prior to undertaking proposed activities. NSF does not
assume responsibility for awardee compliance with the laws and
regulations of the country in which the work is to be conducted.

**720 CONSTRUCTION, REARRANGEMENTS AND ALTERATIONS**

**721** **Davis-Bacon Act**

The Davis-Bacon Act (40 USC §§276a et seq.) establishes minimum wages to
be paid to laborers and mechanics on construction contracts to which the
U.S. is a party involving public buildings or public works within the
U.S. A number of other statutes have extended this provision to specific
Federal grant programs involving construction. However, unless
specifically stated in the grant, the Davis-Bacon Act does not normally
apply to NSF grants since grantees normally retain title to property
acquired under the grant and the construction, if any, is normally on
non-Govern­ment land.

**722 Bonding and Insurance**

The NSF Act (42 USC §1870c) provides NSF with authority to enter into
grants, contracts or other agreements without performance or other
bonds. Therefore, unless the grant specifically provides otherwise, NSF
does not require performance or other bonds or insurance.

**723 Flood Insurance**

a\. Two sections of the National Flood Insurance Act of 1968 (42 USC
§4012a and §4106) bar Federal agencies from giving financial assistance
for acquisition or construction purposes in any area identified by the
Federal Emergency Management Agency (FEMA) as having special flood
hazards unless:

1\. the community in which that area is located participates in the
national flood insurance program; and

2\. the building (and any related equipment) is covered by adequate
flood insurance.

b\. By electronically signing the NSF cover sheet, prospective grantees
located in FEMA-designated special flood hazard areas certify that
adequate flood insurance has been or will be obtained:

1\. for NSF grants for the construction of a building or facility,
regardless of the dollar amount of the grant; and

2\. for other NSF grants when more than \$10,000 has been budgeted in
the proposal for repair, alteration or improvement of a building or
facility.

c\. Prospective grantees should contact their local government or a
federally-insured financial institution to determine what areas are
identified as having special flood hazards and the availability of flood
insurance in their community.

**724 Seismic Safety of Buildings**

E.O. 12699 *Seismic Safety of Federal and Federally-assisted or
Regulated New Building Construction* dated January 5, 1990, requires
that consideration be given to seismic hazards in the design of
buildings. Very seldom are NSF grantees involved with federally-assisted
construction and rarely are new buildings involved. NSF ensures
compliance with the Order through its grantees and grantee organizations
by inclusion of a specific grant condition in any appropriate grant.

**730 INTELLECTUAL PROPERTY**

**731 Patents and Inventions**

**731.1 Background**

a\. The disposition of rights to inventions made by small business firms
and non-profit organizations, including universities and other
institutions of higher education, during NSF-assisted research is
governed by Chapter 18 of Title 35 of the USC, commonly called the
Bayh-Dole Act. In accordance with a Presidential Memorandum entitled
*Government Patent Policy* issued on February 18, 1983 and under the
authority of Section 12 of the National Science Foundation Act of 1950,
as amended (42 USC §1871), NSF applies the policies of that Act to all
its grantees. The Department of Commerce (DOC) is the lead agency for
implementing the Bayh-Dole Act and has published guidance to Federal
agencies in 37 CFR §401. NSF's implementing rules are published in 45
CFR §650.

b\. NSF's standard Patent Rights clause, published at 45 CFR §650.4(a)
and below at GPM 731.3, "Standard Patent Rights Clause" is identical to
that prescribed in the DOC guidance (37 CFR §401.14(a)) except that:

1\. NSF has tailored the clause to apply to grants and to identify NSF;

> 2\. pursuant to section 401.5(d) of the DOC guidance (37 CFR
> §401.5(d)), NSF has added to paragraph b. of the clause a stipulation
> that NSF reserves the right to direct a grantee to transfer to a
> foreign government or research performer such rights to any subject
> invention as are required to comply with any international treaty or
> agreement identified when the grant is made as being applicable to the
> assisted research;
>
> 3\. as permitted by section 401.5(f) of the DOC guidance (37 CFR
> §401.5(f)), NSF has added a subparagraph to the end of paragraph f. of
> the clause to require grantees or their representatives to send NSF
> confirmations of the Government licenses for subject inventions and of
> the page of any United States patent application that contains the
> Federal support clause; and

4\. since NSF normally uses the same clause for all subcontractors, the
first two subparagraphs of paragraph g. of the clause specified in the
DOC guidance have been reduced to one.

**731.2 National Science Foundation Patent Policy**

As authorized by the National Science Board (NSB), the Director of the
NSF has adopted the following NSF patent policy.

a\. In accordance with the Bayh-Dole Act and the Presidential Memorandum
entitled *Government Patent Policy* issued February 18, 1983, NSF will
use the Patent Rights clause prescribed by DOC in all its funding
agreements for the performance of experimental, developmental or
research work, including grants made to foreign entities, unless NSF
determines that some other provision would better serve the purposes of
that Act or the interests of the U.S. and the general public.

b\. In funding agreements covered by a treaty or agreement that provide
that an international organization or foreign government, research
institute or inventor will own or share patent rights, NSF will acquire
such patent rights as are necessary to comply with the applicable treaty
or agreement.

c\. If a grantee elects not to retain rights to an invention, NSF will
allow the inventor to retain the principal patent rights unless the
grantee, or the inventor's employer, if other than the grantee, shows
that it would be harmed by that action.

d\. NSF will normally allow any patent rights not wanted by the grantee
or inventor to be dedicated to the public through publication in
scientific or engineering journals or as a statutory invention
registration. However, if another Federal agency is known to be
interested in the relevant technology, NSF may give it an opportunity to
review and patent the invention so long as that does not inhibit the
dissemination of the research results to the research community.

**731.3 Standard Patent Rights Clause**

The following Patent Rights clause will be used in every funding
agreement awarded by NSF that relates to scientific or engineering
research unless a special patent clause has been negotiated (see GPM
733.1, "Special Grant Provisions"). When the clause is used in a funding
agreement other than a grant, "grant" and "grantee" may be replaced by
"cooperative agreement" and "awardee" or other appropriate terms.

**PATENT RIGHTS (APRIL, 1992)**

a\. Definitions.

1\. INVENTION means any invention or discovery which is or may be
patentable or otherwise protectable under Title 35 of the USC, to any
novel variety of plant which is or may be protected under the Plant
Variety Protection Act (7 USC §§2321 et seq.).

2\. SUBJECT INVENTION means any invention of the grantee conceived or
first actually reduced to practice in the performance of work under this
grant, provided that in the case of a variety of plant, the date of
determination (as defined in section 41(d)) must also occur during the
period of grant performance.

3\. PRACTICAL APPLICATION means to manufacture in the case of a
composition or product, to practice in the case of a process or method,
or to operate in the case of a machine or system; and, in each case,
under such conditions as to establish that the invention is being
utilized and that its benefits are to the extent permitted by law or
Government regulations available to the public on reasonable terms.

4\. MADE when used in relation to any invention means the conception or
first actual reduction to practice of such invention.

5\. NON-PROFIT ORGANIZATION means a domestic university or other
institution of higher education or an organization of the type described
in Section 501(c)(3) of the Internal Revenue Code of 1954 (26 USC
§501(c)) and exempt from taxation under Section 501(a) of the Internal
Revenue Code (26 USC §501(a)) or any domestic non-profit scientific or
educational organization qualified under a State non-profit organization
statute.

b\. Allocation of Principal Rights. The grantee may retain the entire
right, title, and interest throughout the world to each subject
invention subject to the provisions of this Patent Rights clause and 35
USC §203. With respect to any subject invention in which the grantee
retains title, the Federal Government shall have a non-exclusive,
nontransferable, irrevocable, paid-up license to practice or have
practiced for or on behalf of the U.S. the subject invention throughout
the world. If the grant indicates it is subject to an identified
international agreement or treaty, the National Science Foundation (NSF)
also has the right to direct the grantee to convey to any foreign
participant such patent rights to subject inventions as are required to
comply with that agreement or treaty.

c\. Invention Disclosure, Election of Title and Filing of Patent
Applications by Grantee.

1\. The grantee will disclose each subject invention to NSF within two
months after the inventor discloses it in writing to grantee personnel
responsible for the administration of patent matters. The disclosure to
NSF shall be in the form of a written report and shall identify the
grant under which the invention was made and the inventor(s). It shall
be sufficiently complete in technical detail to convey a clear
understanding of the nature, purpose, operation, and, to the extent
known, the physical, chemical, biological or electrical characteristics
of the invention. The disclosure shall also identify any publication, on
sale or public use of the invention and whether a manuscript describing
the invention has been submitted for publication and, if so, whether it
has been accepted for publication at the time of disclosure. In
addition, after disclosure to NSF, the grantee will promptly notify NSF
of the acceptance of any manuscript describing the invention for
publication or of any on sale or public use planned by the grantee.

2\. The grantee will elect in writing whether or not to retain title to
any such invention by notifying NSF within two years of disclosure to
NSF. However, in any case where publication, on sale, or public use has
initiated the one-year statutory period wherein valid patent protection
can still be obtained in the U.S., the period for election of title may
be shortened by NSF to a date that is no more than 60 days prior to the
end of the statutory period.

3\. The grantee will file its initial patent application on an invention
to which it elects to retain title within one year after election of
title or, if earlier, prior to the end of any statutory period wherein
valid patent protection can be obtained in the U.S. after a publication,
on sale, or public use. The grantee will file patent applications in
additional countries or international patent offices within either ten
months of the corresponding initial patent application, or six months
from the date when permission is granted by the Commissioner of Patents
and Trademarks to file foreign patent applications when such filing has
been prohibited by a Secrecy Order.

4\. Requests for extension of the time for disclosure to NSF, election,
and filing under subparagraphs 1., 2., and 3. may, at the discretion of
NSF, be granted.

d\. Conditions When the Government May Obtain Title. The grantee will
convey to NSF, upon written request, title to any subject invention:

1\. if the grantee fails to disclose or elect the subject invention
within the times specified in paragraph c. above, or elects not to
retain title; provided that NSF may only request title within 60 days
after learning of the failure of the grantee to disclose or elect within
the specified times;

2\. in those countries in which the grantee fails to file patent
applications within the times specified in paragraph c. above, but prior
to its receipt of the written request of NSF, the grantee shall continue
to retain title in that country; or

3\. in any country in which the grantee decides not to continue the
prosecution of any application for, to pay the maintenance fees on, or
defend in a reexamination or opposition proceeding on, a patent on a
subject invention.

e\. Minimum Rights to Grantee.

1\. The grantee will retain a non-exclusive royalty-free license
throughout the world in each subject invention to which the Government
obtains title, except if the grantee fails to disclose the subject
invention within the times specified in paragraph c. above. The
grantee's license extends to its domestic subsidiaries and affiliates,
if any, within the corporate structure of which the grantee is a party
and includes the right to grant sublicenses of the same scope to the
extent the grantee was legally obligated to do so at the time the grant
was awarded. The license is transferable only with the approval of NSF
except when transferred to the successor of that part of the grantee's
business to which the invention pertains.

2\. The grantee's domestic license may be revoked or modified by NSF to
the extent necessary to achieve expeditious practical application of the
subject invention pursuant to an application for an exclusive license
submitted in accordance with applicable provisions at 37 CFR §404. This
license will not be revoked in that field of use or the geographical
areas in which the grantee has achieved practical application and
continues to make the benefits of the invention reasonably accessible to
the public. The license in any foreign country may be revoked or
modified at discretion of NSF to the extent the grantee, its licensees,
or its domestic subsidiaries or affiliates have failed to achieve
practical application in that foreign country.

3\. Before revocation or modification of the license, NSF will furnish
the grantee a written notice of its intention to revoke or modify the
license, and the grantee will be allowed thirty days (or such other time
as may be authorized by NSF for good cause shown by the grantee) after
the notice to show cause why the license should not be revoked or
modified. The grantee has the right to appeal, in accordance with
applicable regulations in 37 CFR §404 concerning the licensing of
Government-owned inventions, any decision concerning the revocation or
modification of its license.

f\. Grantee Action to Protect Government's Interest.

1\. The grantee agrees to execute or to have executed and promptly
deliver to NSF all instruments necessary to: (i) establish or confirm
the rights the Government has throughout the world in those subject
inventions for which the grantee retains title; and (ii) convey title to
NSF when requested under paragraph d. above, and to enable the
Government to obtain patent protection throughout the world in that
subject invention.

2\. The grantee agrees to require, by written agreement, its employees,
other than clerical and non-technical employees, to disclose promptly in
writing to personnel identified as responsible for the administration of
patent matters and in a format suggested by the grantee each subject
invention made under this grant in order that the grantee can comply
with the disclosure provisions of paragraph c. above, and to execute all
papers necessary to file patent applications on subject inventions and
to establish the Government's rights in the subject inventions. The
disclosure format should require, as a minimum, the information
requested by paragraph c.1. above. The grantee shall instruct such
employees through the employee agreements or other suitable educational
programs on the importance of reporting inventions in sufficient time to
permit the filing of patent applications prior to U.S. or foreign
statutory bars.

3\. The grantee will notify NSF of any decision not to continue
prosecution of a patent application, pay maintenance fees, or defend in
a reexamination or opposition proceeding on a patent, in any country,
not less than 30 days before the expiration of the response period
required by the relevant patent office.

4\. The grantee agrees to include, within the specification of any U.S.
patent application and any patent issuing thereon covering a subject
invention, the following statement: "This invention was made with
Government support under (identify the grant) awarded by the National
Science Foundation. The Government has certain rights in this
invention."

5\. The grantee or its representative will complete, execute and forward
to NSF a confirmation of a License to the U.S. Government and the page
of a United States patent application that contains the Federal support
clause within two months of filing any domestic or foreign patent
application.

g\. Subcontracts.

1\. The grantee will include this Patent Rights clause, suitably
modified to identify the parties, in all subcontracts, regardless of
tier, for experimental, developmental or research work. The
subcontractor will retain all rights provided for the grantee in this
Patent Rights clause, and the grantee will not, as part of the
consideration for awarding the subcontract, obtain rights in the
subcontractors' subject inventions.

2\. In the case of subcontracts, at any tier, when the prime award by
NSF was a contract (but not a grant or cooperative agreement), NSF,
subcontractor, and contractor agree that the mutual obligations of the
parties created by this Patent Rights clause constitute a contract
between the subcontractor and the Foundation with respect to those
matters covered by this Patent Rights clause.

h\. Reporting on Utilization of Subject Inventions. The grantee agrees
to submit on request periodic reports no more frequently than annually
on the utilization of a subject invention or on efforts at obtaining
such utilization that are being made by the grantee or its licensees or
assignees. Such reports shall include information regarding the status
of development, date of first commercial sale or use, gross royalties
received by the grantee and such other data and information as NSF may
reasonably specify. The grantee also agrees to provide additional
reports in connection with any march-in proceeding undertaken by NSF in
accordance with paragraph j. of this Patent Rights clause. As required
by 35 USC §202(c)(5), NSF agrees it will not disclose such information
to persons outside the Government without the permission of the grantee.

i\. Preference for United States Industry. Notwithstanding any other
provision of this Patent Rights clause, the grantee agrees that neither
it nor any assignee will grant to any person the exclusive right to use
or sell any subject invention in the U.S. unless such person agrees that
any products embodying the subject invention or produced through the use
of the subject invention will be manufactured substantially in the U.S.
However, in individual cases, the requirement for such an agreement may
be waived by NSF upon a showing by the grantee or its assignee that
reasonable but unsuccessful efforts have been made to grant licenses on
similar terms to potential licensees that would be likely to manufacture
substantially in the U.S. or that under the circumstances domestic
manufacture is not commercially feasible.

j\. March-in Rights. The grantee agrees that with respect to any subject
invention in which it has acquired title, NSF has the right in
accordance with procedures at 37 CFR §401.6 and NSF regulations at 45
CFR §650.13 to require the grantee, an assignee or exclusive licensee of
a subject invention to grant a non-exclusive, partially exclusive, or
exclusive license in any field of use to a responsible applicant or
applicants, upon terms that are reasonable under the circumstances and
if the grantee, assignee, or exclusive licensee refuses such a request,
NSF has the right to grant such a license itself if NSF determines that:

1\. such action is necessary because the grantee or assignee has not
taken or is not expected to take within a reasonable time, effective
steps to achieve practical application of the subject invention in such
field of use;

2\. such action is necessary to alleviate health or safety needs which
are not reasonably satisfied by the grantee, assignee, or their
licensees;

3\. such action is necessary to meet requirements for public use
specified by Federal regulations and such requirements are not
reasonably satisfied by the grantee, assignee, or licensee; or

4\. such action is necessary because the agreement required by paragraph
i. of this Patent Rights clause has not been obtained or waived or
because a licensee of the exclusive right to use or sell any subject
invention in the U.S. is in breach of such agreement.

k\. Special Provisions for Grants with Non-profit Organizations. If the
grantee is a non-profit organization, it agrees that:

1\. rights to a subject invention in the U.S. may not be assigned
without the approval of NSF, except where such assignment is made to an
organization which has as one of its primary functions the management of
inventions, provided that such assignee will be subject to the same
provisions as the grantee;

2\. the grantee will share royalties collected on a subject invention
with the inventor, including Federal employee co-inventors (when NSF
deems it appropriate) when the subject invention is assigned in
accordance with 35 USC §202(e) and 37 CFR §401.10;

3\. the balance of any royalties or income earned by the grantee with
respect to subject inventions, after payment of expenses (including
payments to inventors) incidental to the administration of subject
inventions, will be utilized for the support of scientific or
engineering research or education; and

4\. it will make efforts that are reasonable under the circumstances to
attract licensees of subject inventions that are small business firms
and that it will give preference to a small business firm if the grantee
determines that the small business firm has a plan or proposal for
marketing the invention which, if executed, is equally likely to bring
the invention to practical application as any plans or proposals from
applicants that are not small business firms; provided that the grantee
is also satisfied that the small business firm has the capability and
resources to carry out its plan or proposal. The decision whether to
give a preference in any specific case will be at the discretion of the
grantee. However, the grantee agrees that the Secretary of Commerce may
review the grantee's licensing program and decisions regarding small
business applicants, and the grantee will negotiate changes to its
licensing policies, procedures or practices with the Secretary when the
Secretary's review discloses that the grantee could take reasonable
steps to implement more effectively the requirements of this paragraph
k.4.

l\. Communications. All communications required by this Patent Rights
clause should be sent to:

Patent Assistant

Office of the General Counsel

National Science Foundation

4201 Wilson Boulevard

Arlington, VA 22230

\[END OF CLAUSE\]

**731.4** **Electronic Invention Handling**

Grantees are encouraged to use the Edison Invention Information
Management System maintained by the National Institutes of Health to
disclose NSF subject inventions. Detailed instructions for use of that
system are provided at <http://era.info.nih.gov/Edison/> and should be
followed for NSF subject inventions except that:

a\. All written communications required should be addressed to the
Patent Assistant, Office of the General Counsel, National Science
Foundation, 4201 Wilson Boulevard, Arlington, VA 22230.

b\. NSF does not require either an Annual Utilization Report or a Final
Invention Statement and Certification.

**732 Copyright**

**732.1 Rights to Copyrightable Material**

The following principles governing the treatment of copyrightable
material produced under NSF grants were adopted by the NSB.

a\. NSF normally will acquire only such rights to copyrightable material
as are needed to achieve its purposes or to comply with the requirements
of any applicable government-wide policy or international agreement.

b\. To preserve incentives for private dissemination and development,
NSF normally will not restrict, or take any part of income earned from,
copyrightable material except as necessary to comply with the
requirements of any applicable government-wide policy or international
agreement.

c\. In exceptional circumstances, NSF may restrict or eliminate an
awardee's control of NSF-supported copyrightable material and of income
earned from it, if NSF determines that this would best serve the
purposes of a particular program or grant.

**732.2 Standard Copyrightable Material Clause**

The following copyrightable material clause will be used in every
funding agreement awarded by NSF that relates to scientific or
engineering research unless a special copyrightable material clause has
been negotiated. (See GPM 733.1, "Special Grant Provisions," and GPM
733.2, "Grants Not Primarily for Research.") When the clause is used in
a funding agreement other than a grant, "grant" and "grantee" may be
replaced by "cooperative agreement" and "awardee" or other appropriate
terms.

**COPYRIGHTABLE MATERIAL**

a\. SUBJECT WRITING means any material that:

1\. is or may be copyrightable under Title 17 of the United States Code;
and

2\. is produced by the grantee or its employees in the performance of
work under this grant.

"Subject writings" include such items as reports, books, journal
articles, software, sound recordings, video tapes and video discs.

b\. Copyright Ownership, Government License. Except as otherwise
specified in the grant or by this paragraph, the grantee may own or
permit others to own copyright in all subject writings. The grantee
agrees that if it or anyone else does own copyright in a subject
writing, the Federal government will have a non-exclusive,
nontransferable, irrevocable, royalty-free license to exercise or have
exercised for or on behalf of the U.S. throughout the world all the
exclusive rights provided by copyright. Such license, however, will not
include the right to sell copies or photorecords of the copyrighted
works to the public.

c\. Grants Affected by International Agreements. If the grant indicates
it is subject to an identified international agreement or treaty, NSF
can direct the grantee to convey to any foreign participant or otherwise
dispose of such rights to subject writings as are required to comply
with that agreement or treaty.

d\. Grantee Action to Protect Government Interests. The grantee agrees
to acquire, through written agreement or an employee relationship, the
ability to comply with the requirements of the preceding paragraphs and,
in particular, to acquire the ability to convey rights in a subject
writing to a foreign participant if directed by NSF under the previous
paragraph. The grantee further agrees that any transfer of copyright or
any other rights to a subject writing, by it or anyone whom it has
allowed to own such rights, will be made subject to the requirements of
this article.

\[END OF CLAUSE\]

**733 Special Patent and Copyright Situations**

**733.1 Special Grant Provisions**

At the request of the prospective grantee or on recommendation from NSF
staff, a Grants Officer, with the concurrence of the cognizant Program
Officer, may negotiate special patent or copyright provisions when
he/she determines that exceptional circumstances require restriction or
elimination of the right of a prospective grantee to control principal
rights to subject inventions or writings in order to better achieve the
objectives of the program, the National Science Foundation Act, or (in
the case of inventions) Chapter 18 of Title 35 of the USC. Every special
copyright or patent provision will allow the grantee, after an invention
has been made or copyrightable material created, to request that it be
allowed to retain principal rights to that invention or material, unless
doing so would be inconsistent with an obligation imposed on NSF by
statute, international agreement or pact with other participants in, or
supporters of, the research.

**733.2 Grants Not Primarily for Research**

a\. Grants not primarily intended to support scientific or engineering
research generally do not contain patent or copyrightable material
provisions. Examples of such grants are travel, conference and equipment
grants.

b\. NSF Fellowships and Traineeships. In accordance with Section 212 of
Title 35 of the USC, NSF claims no rights to inventions made by fellows
or trainees. The following provision will be included in each fellowship
or traineeship program solicitation and made part of the grant:

**INTELLECTUAL PROPERTY RIGHTS**

The National Science Foundation claims no rights to any inventions or
writings that might result from its fellowship or traineeship grants.
However, fellows and trainees should be aware that the NSF, another
Federal agency, or some private party may acquire such rights through
other support for particular research. Also, fellows and trainees should
note their obligation to include an Acknowledgment and Disclaimer in any
publication.

\[END OF PROVISION\]

**733.3 Grants Affected by International Agreements**

a\. Many of the bilateral and multilateral treaties and agreements
underlying NSF's international cooperative research programs contain
provisions on allocation of rights to inventions or writings. These
sometimes require an allocation of rights different from that provided
by the standard Copyrightable Material or Patent Rights clauses. In
those cases, the standard clauses will be modified through the addition
of the following to the grant:

"This project is supported under the cooperative program listed below.
Your rights in inventions, writings, and data may be affected."

The applicable agreement or treaty will be identified immediately
beneath that sentence.

b\. After an invention is disclosed to the Patent Assistant, the grantee
of a grant subject to an international agreement will be informed as to
what rights, if any, it must transfer to foreign participants. Grantees
also may ask the NSF Program Officer for copies of the identified
international agreement before or after accepting a grant.

**734 Dissemination and Sharing of Research Results**

a\. Investigators are expected to promptly prepare and submit for
publication, with authorship that accurately reflects the contributions
of those involved, all significant findings from work conducted under
NSF grants. Grantees are expected to permit and encourage such
publication by those actually performing that work, unless a grantee
intends to publish or disseminate such findings itself.

b\. Investigators are expected to share with other researchers, at no
more than incremental cost and within a reasonable time, the primary
data, samples, physical collections and other supporting materials
created or gathered in the course of work under NSF grants. Grantees are
expected to encourage and facilitate such sharing. Privileged or
confidential information should be released only in a form that protects
the privacy of individuals and subjects involved. General adjustments
and, where essential, exceptions to this sharing expectation may be
specified by the funding NSF Program or Division for a particular field
or discipline to safeguard the rights of individuals and subjects, the
validity of results, or the integrity of collections or to accommodate
the legitimate interest of investigators. A grantee or investigator also
may request a particular adjustment or exception from the cognizant NSF
Program Officer.

c\. Investigators and grantees are encouraged to share software and
inventions created under the grant or otherwise make them or their
products widely available and usable.

d\. NSF normally allows grantees to retain principal legal rights to
intellectual property developed under NSF grants to provide incentives
for development and dissemination of inventions, software and
publications that can enhance their usefulness, accessibility and
upkeep. Such incentives do not, however, reduce the responsibility that
investigators and organizations have as members of the scientific and
engineering community, to make results, data and collections available
to other researchers.

**735 Tangible Property**

**735.1 Background**

Some NSF grants support collection or creation of tangible property,
such as insects, marine life, drilling core samples and
genetically-altered micro-organisms. As used in this section "tangible
property" means any personal property other than equipment (see GPM 612,
"Equipment"), and intellectual property.

**735.2 Legal Rights to Tangible Property**

Unless otherwise provided in the grant, all legal rights to tangible
property collected or created during NSF-assisted research remain with
the grantee or investigators as determined by the policies of the
organization. As members of the scientific and engineering community,
both grantees and investigators are responsible for making such tangible
property appropriately available to other researchers.

**740 PUBLICATION / DISTRIBUTION OF GRANT MATERIALS**

**741 NSF Policy**

NSF advocates and encourages open scientific and engineering
communication. NSF expects significant findings from research it
supports to be promptly submitted for publication, with authorship that
accurately reflects the contributions of those involved.

**742 Costs**

Cost of documenting, preparing, publishing, disseminating and sharing
research findings and supporting material are allowable charges against
the grant. (See GPM 617 "Publication, Documentation, and
Dissemination".)

**743 Responsibilities**

Unless otherwise provided in the grant, preparation, content, editing,
identification of authorship and submission for publication of
significant research findings are the responsibility of the
investigators, consistent with such policies and procedures as the
grantee may prescribe.

**744 Grantee Obligations**

a\. Unless otherwise provided in the grant, the grantee is required to
assure that:

1\. an acknowledgment of NSF support appears in every publication
(including World Wide Web pages) of any material based on or developed
under the grant, in the following terms:

"This material is based on work supported by the National Science
Foundation under Grant No. (Grantee should enter NSF grant number)."

2\. NSF support is orally acknowledged during all news media interviews,
including popular media such as radio, television and news magazines.

3\. every publication of material (including World Wide Web pages) based
on or developed under the grant, except research articles or papers
appearing in scientific, engineering, technical or professional
journals, contains the following disclaimer:

"Any opinions, findings and conclusions or recommendations expressed in
this material are those of the author(s) and do not necessarily reflect
the views of the National Science Foundation."

4\. up to two copies of every publication of material based on or
developed under the grant, clearly labeled with the award number and
other appropriate identifying information, are provided to the cognizant
NSF Program Officer promptly after publication.

b\. Grantees should also note their obligations in regard to copyrights
(see GPM 732, "Copyright") and their responsibilities as members of the
scientific and engineering community to disseminate and share research
results (see GPM 734, "Dissemination and Sharing of Research Results").

**750 PROGRAM INCOME**

**751 Background**

The following provisions implement the applicable portions of OMB
Circular A-110 on program income as well as the principle on income from
copyrightable material adopted by the NSB (GPM 732.1, "Rights to
Copyrightable Material").

**752 Definition**

PROGRAM INCOME means gross income earned by the grantee that is directly
generated by a supported activity or earned as a result of the grant.
Program income includes, but is not limited to, income from fees for
services performed, the use or rental of real or personal property
acquired under the grant, the sale of commodities or items fabricated
under the grant, license fees for, and royalties on, copyrights and
interest on loans made with grant funds. Interest earned on advances of
Federal funds is not program income. Program income does not include the
receipt of principal on loans, rebates, credits, discounts, etc., or
interest earned on any of them.

**753 NSF Policy**

a\. Standard Treatment*.* Unless otherwise specified in the grant,
program income received or accruing to the grantee during the period of
the grant is to be retained by the grantee, added to the funds committed
to the project by NSF, and thus used to further project objectives. The
grantee has no obligation to NSF with respect to: 1) license fees and
royalties for copyrighted material, patents, patent applications,
trademarks and inventions; or 2) program income received beyond the
period of the grant.

b\. Special Treatment. In exceptional circumstances, the NSF Grants
Officer, in collaboration with Program Officers and other appropriate
NSF offices, may approve use of a special grant provision to restrict or
eliminate a grantee's control of income earned through NSF-supported
activities if it determines that this would best serve the purposes of a
particular program or grant. The special provisions may require the
Federal share of program income be kept in a separate account, reported
on and/or remitted for such periods as may be reasonable under the
circumstances.

**760 INTERNATIONAL CONSIDERATIONS**

**761 Travel to Foreign Countries**

**761.1 Policy**

a\. Expenses for transportation, lodging, subsistence and related items
incurred by project personnel and by outside consultants employed on the
project (GPM 614, "Travel Costs") who are on travel status on business
related to an NSF-supported project are allowable as prescribed in the
governing cost principles. The requirements for prior approval detailed
in the governing cost principles are waived.

b\. Support for the foreign travel of an investigator's dependents is
allowable only under the conditions identified in GPM 614, "Travel
Costs".

**761.2 Use of U.S.-Flag Air Carriers**

a\. The General Services Administration issued an amendment to the
Federal Travel Regulations in the November 13, 1998 edition of the
Federal Register (Vol. 63, No. 219). The amendment relates to the use of
U.S. flag air carriers under the provisions of 49 U.S.C. 40118, which is
commonly referred to as the Fly America Act.

b\. Any air transportation to, from, between or within a country other
than the U.S. of persons or property, the expense of which will be
assisted by NSF funding, must be performed by, or under a code-sharing
arrangement with, a U.S.-flag air carrier if service provided by such a
carrier is "available" (see Comp. Gen. Decision B-240956, dated
September 25, 1991). Tickets (or documentation for electronic tickets)
must identify the U.S.-flag air carrier's designator code and flight
number.

c\. For the purposes of this requirement, U.S.-flag air carrier service
is considered "available" even though:

1\. comparable or a different kind of service can be provided at less
cost by a foreign-flag air carrier;

2\. foreign-flag air carrier service is preferred by or is more
convenient for NSF or traveler; or

3\. service by a foreign-flag air carrier can be paid for in excess
foreign currency.

d\. The following rules apply unless their application would result in
the first or last leg of travel from or to the U.S. being performed by a
foreign-flag air carrier:

1\. a U.S.-flag air carrier shall be used to destination or, in the
absence of direct or through service, to the farthest interchange point
on a usually traveled route;

2\. if a U.S.-flag air carrier does not serve an origin or interchange
point, a foreign-flag air carrier shall be used only to the nearest
interchange point on a usually traveled route to connect with a
U.S.-flag air carrier; or

3\. if a U.S.-flag air carrier involuntarily reroutes the traveler via a
foreign-flag carrier, the foreign-flag air carrier may be used
notwithstanding the availability of alternative U.S.-flag air carrier
service.

**761.3 Use of Foreign-Flag Air Carriers**

a\. Travel To and From the U.S. Use of a foreign-flag air carrier is
permissible if the airport abroad is:

1\. the traveler's origin or destination airport, and use of U.S.-flag
air carrier service would extend the time in a travel status by at least
24 hours more than travel by a foreign-flag carrier; or

2\. an interchange point, and use of U.S.-flag air carrier service would
increase the number of aircraft changes the traveler must make outside
of the U.S. by 2 or more, would require the traveler to wait four hours
or more to make connections at that point, or would extend the time in a
travel status by at least six hours more than travel by a foreign-flag
air carrier.

b\. Travel Between Points Outside the U.S. Use of a foreign-flag air
carrier is permissible if travel by a:

1\. foreign-flag air carrier would eliminate two or more aircraft
changes en route;

> 2\. U.S.-flag air carrier would extend the time in a travel status by
> at least four hours more than travel by a foreign-flag air carrier and
> the travel is not part of the trip to or from the U.S.; or

3\. U.S.-flag air carrier would require a connecting time of four hours
or more at an overseas interchange point.

c\. Short Distance Travel. For all short distance travel, regardless of
origin and destination, use of a foreign-flag air carrier is permissible
if the elapsed travel time on a scheduled flight from origin to
destination airport by a foreign-flag air carrier is three hours or less
and service by a U.S.-flag air carrier would double the travel time.

**762 Charter Flights**

Because of the risk of catastrophic loss, NSF does not encourage the use
of charter flights as a means of mass transportation for groups of
scientists and engineers nor does it make arrangements for purchase of
charter flight airline tickets.

**763 Projects in a Foreign Country**

a\. General. Prior to undertaking any projects outside the U.S., the
grantee should ensure that any permits or licenses required by the host
country or the political subdivision in which the project will be
performed have been obtained and that the researcher(s) will abide by
the appropriate ordinances of such foreign countries. NSF funds may not
be used in support of a project which is prohibited by law in the
country in which it is undertaken.

b\. NSF-Supported Activities in Greenland. All research projects in
Greenland must be approved in advance by the Government of Denmark.
Applications for projects in which U.S. citizens and U.S. nationals are
involved in any way (logistical, operational and/or financial support)
shall be submitted to the Danish Government through diplomatic channels
(i.e., through the U.S. Department of State and the American Embassy,
Copenhagen) to the Danish Ministry of Foreign Affairs. Application
forms, deadline dates and instructions are available from the Director,
Office of Polar Programs, National Science Foundation, 4201 Wilson
Boulevard, Arlington, VA 22230.

**764 Passports and Visas**

NSF assumes no responsibility for securing passports or visas required
by any person because of participation in an NSF-supported project. It
should be noted that some countries that normally do not require visas
for tourists do require special visas for scientists and engineers
engaged in research or studies.

**765 International Travel Grants**

Funding Limitations. Funds for international travel grants will normally
not exceed the cost of a round-trip, economy class airline ticket
between the approved points of origin and destination. Group travel
grants awarded to a university, professional society or other non-profit
organization to enable it to coordinate U.S. participation in one or
more scientific or engineering meetings held abroad may include a flat
rate of \$50 per traveler for the general administration of this type of
project. NSF international travel grants may not be supplemented by
funds from any other NSF grant or fellowship.

**Exhibit VII-1**

NATIONAL SCIENCE FOUNDATION

ARLINGTON, VA 22230

**ASSURANCE OF COMPLIANCE**

**with**

**NATIONAL SCIENCE FOUNDATION REGULATION**

**UNDER TITLE VI OF THE CIVIL RIGHTS ACT OF 1964**

**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**
(hereinafter called the "Applicant") HEREBY AGREES THAT it will comply
with Title VI of the Civil Rights Act of 1964 (42 USC §2000d) and all
requirements imposed by or pursuant to the Regulation of the National
Science Foundation (45 CFR Part 611) issued pursuant to that title, to
the end that, in accordance with Title VI of that Act and the
Regulation, no person in the United States shall, on the ground of race,
color, or national origin, be excluded from participation in, be denied
the benefits of, or be otherwise subjected to discrimination under any
program or activity for which the Applicant receives Federal financial
assistance from the Foundation; and HEREBY GIVES ASSURANCE THAT it will
immediately take any measures necessary to effectuate this agreement.

If any real property or structure thereon is provided or improved with
the aid of Federal financial assistance extended to the Applicant by the
Foundation, this Assurance shall obligate the Applicant, or in the case
of any transfer of such property, any transferee, for the period during
which the real property or structure is used for a purpose for which the
Federal financial assistance is extended or for another purpose
involving the provision of similar services or benefits. If any personal
property is so provided, this Assurance shall obligate the Applicant for
the period during which it retains ownership or possession of the
property. In all other cases, this Assurance shall obligate the
Applicant for the period during which the Federal financial assistance
is extended to it by the Foundation.

THIS ASSURANCE is given in consideration of and for the purpose of
obtaining any and all Federal grants, cooperative agreements, loans,
contracts, property, discounts or other Federal financial assistance
extended after the date hereof to the Applicant by the Foundation,
including installment payments after such date on account of
applications for Federal financial assistance which were approved before
such date. The Applicant recognizes and agrees that such Federal
financial assistance will be extended in reliance on the representations
and agreements made in this Assurance, and that the United States shall
have the right to seek judicial enforcement of this Assurance. This
Assurance is binding on the Applicant, its successors, transferees, and
assignees.

**CHAPTER VIII**

### OTHER PROPOSAL AND AWARD CONSIDERATIONS

The chapter discusses other proposal and award considerations not
addressed in the preceding chapters. Topics covered are:

**800 INTERGOVERNMENTAL REVIEW OF FEDERAL PROGRAMS**

######### 810 HANDLING OF INFORMATION

## 820 TAX STATUS

######### 830 ENVIRONMENTAL IMPACT

**840 Protection of Properties in the National Register of HIStoric
Places**

**850 NATIONAL SECURITY**

**860 MISCELLANEOUS (INCLUDING LIABILITIES AND LOSSES, PRE-COLLEGE
STUDENTS AND EXPERIMENTAL CURRICULUM DEVELOPMENT PROJECTS AND USE OF
METRIC MEASUREMENTS)**

**800 INTERGOVERNMENTAL REVIEW OF FEDERAL PROGRAMS**

a\. The Foundation's regulation on Intergovernmental Review of National
Science Foundation Programs and Activities is published in 45 CFR Part
660.

b\. The Federal Assistance Award Data System (FAADS)
<http://www.census.gov/govs/www/faads.html> notifies the States of
Federal assistance awards. FAADS is a computer-based management
information system that provides information on assistance awards,
including NSF grants, on a quarterly basis. These reports are
distributed to the States, and meet the objective of 6502 of Title 31 of
the USC.

**810 HANDLING OF INFORMATION**

**811 Questionnaires: Data Collection Under NSF Grants**

**811.1 Paperwork Control**

Under the OMB regulation, *Controlling Paperwork Burdens on the Public*
(5 CFR §1320), a grantee's obtaining of information from ten or more
persons by means of identical questions is considered to be "sponsored"
by NSF only if:

a\. the grantee is collecting the information at the specific request of
NSF; or

b\. the terms of the grant require specific approval by NSF of the
collection or its procedures. If either of these conditions is met, OMB
approval of the data collection is generally required and grantees
should obtain the necessary control number from the cognizant NSF
Program Officer.

**811.2 NSF Policy**

Data collection activities of NSF grantees are the responsibility of
grantees, and NSF support of a project does not constitute NSF approval
of the survey design, questionnaire content or data collection
procedures. No representation may be made to respondents that such data
are being collected for, or in association with, NSF or the government.
However, this requirement is not intended to preclude mention of NSF
support of the project in response to an inquiry or acknowledgment of
such support in any publication of this data (see GPM 744, "Grantee
Obligations").

**812 Release of Information by NSF**

**812.1 Press Releases**

Grants for projects which appear to be of special interest to the
general public may be made the subject of an NSF or joint NSF/grantee
organization press release to the news media. (See GPM 622, "News
Release Costs.")

**812.2 Open Government Legislation**

a\. Pursuant to the Freedom of Information Act (FOIA) (5 USC §552), NSF
will provide agency records, with certain exceptions, if the request is
in writing, includes the requester\'s name and mailing address, is
clearly identified as a FOIA request, and describes the records sought
with sufficient specificity to permit identification. The requester must
also agree to pay fees that are chargeable under the NSF regulations.
Detailed procedures are contained in 45 CFR §612. Further information is
available at <http://www.nsf.gov/home/pubinfo/foia.htm>.

b\. The Government in the Sunshine Act (5 USC §552b) requires that all
meetings of the National Science Board be open to public observation
unless the subject falls within one of ten exemptions. NSF\'s Sunshine
Act regulations are contained in 45 CFR §614. The Sunshine Act and the
FOIA cited above, may require NSF to release to the public information,
correspondence and documents received by NSF from grantees, unless they
fall within the Acts\' limited exceptions.

**812.3 Release of Project Reports**

NSF expects significant findings from research it supports to be
promptly submitted for publication. To the extent permitted by law, NSF
will honor requests from grantees that release of Annual and Final
Project Reports be delayed to permit orderly dissemination of
significant findings through refereed channels. Unless such a request is
received or material is marked as proprietary, such reports may be made
available to others without notice to the grantee. Information, the
disclosure of which might invade personal privacy, will be redacted
before release.

**820 TAX STATUS**

Determination of the tax status of an organization or person receiving
compensation in any form as a result of an NSF grant is the
responsibility of the IRS, State and local tax authorities and the
courts.

**830 ENVIRONMENTAL IMPACT**

a\. The National Environmental Policy Act of 1969 (NEPA) (42 USC §4332)
requires that Federal agencies consider the environmental impacts of
major Federal actions significantly affecting the quality of the human
environment.

b\. If a proposed project might have an environmental impact, the
proposal should furnish sufficient information to assist Foundation
officials in assessing the environmental consequences of supporting the
project. NSF will determine:

1\. the adequacy of the information submitted;

2\. whether or not additional information is needed; and

3\. whether or not an environmental assessment or environmental impact
statement will be necessary.

c\. NSF regulations governing compliance with NEPA are found at 45 CFR
§640. NSF regulations supplement the Council on Environmental Quality's
regulations, published at 40 CFR §§1500-1508. Categories of activities
for which an NSF Program Officer may be required to prepare an
environmental assessment are set forth at 45 CFR §640.3(b).

**840 PROTECTION OF PROPERTIES IN THE NATIONAL REGISTER OF HISTORIC
PLACES**

NSF is required by 16 USC §470f to take into account the effect of grant
activities on properties included in the National Register of Historic
Places. Occasionally, an NSF grant may involve activities that require
mitigation or other actions under the National Historic Preservation Act
and implementing regulations of the Advisory Council on Historic
Preservation (36 CFR §800). In such cases, as deemed appropriate by NSF,
conditions executing the goals of the National Historic Preservation Act
may be included in the grant and grantees or prospective grantees may be
required to coordinate with State or local historical preservation
officers.

**850 NATIONAL SECURITY**

a\. NSF does not have original classification authority and does not
normally support classified projects. It therefore does not expect that
results of NSF-supported research projects will be classifiable, except
in very rare instances.

b\. E.O. 12958 (3 CFR 1995 Comp.) states that basic research information
not clearly related to the national security may not be classified.
Nevertheless, some information concerning, among other things,
scientific, technological or economic matters relating to the national
security or cryptology may require classification.

c\. There may be cases when an NSF grantee originates information during
the course of an NSF-supported project that the grantee believes
requires classification under E.O. 12958.

d\. In such a case, the grantee has the responsibility to promptly:

1\. submit the information directly to the government agency with
appropriate subject matter interest and classification authority or, if
uncertain as to which agency should receive the information, to the
Director of the Information Security Oversight Office, GSA;

2\. protect the information as though it were classified until the
grantee is informed that the information does not require
classification, but not longer than 30 days after receipt by the agency
with subject matter interest or by the GSA; and

3\. notify the appropriate NSF Program Officer.

e\. The Executive Order requires the agency with appropriate subject
matter interest and classification authority to decide within 30 days
whether to classify the material. If it determines the information will
require classification, the grantee shall cooperate with that agency,
NSF or other appropriate agencies in securing all related project notes
and papers.

f\. If the information is determined to require classification, the
performing organization may wish or need to discontinue the project.
(See GPM 913, "Termination by Mutual Agreement.")

**860 MISCELLANEOUS**

**861 Liabilities and Losses**

NSF assumes no liability with respect to accidents, bodily injury,
illness, breach of contract, any other damages or loss, or with respect
to any claims arising out of any activities undertaken with the
financial support of an NSF grant, whether with respect to persons or
property of the grantee or third parties. The grantee is advised to
insure or otherwise protect itself or others as it may deem desirable.

**862 Pre-College Students and Experimental Curriculum Development
Projects**

As required by 42 USC §1869 a and b, grantees of projects which involve
pre-college students in research or development, or pilot-testing,
evaluation or revision of, experimental or innovative curriculum
development projects will:

a\. provide to the school board, or comparable authority responsible for
the schools considering participation in the project, information
concerning the need for and purposes of, the particular education
project, the proposed content of the material to be used, the expected
benefits to be derived and other information to assist the jurisdiction
in arriving at a decision on participation;

b\. obtain written approval for participation in the project activities
after the responsible authority has carried out its procedures;

c\. provide information and materials to the responsible school
authority to assist it in carrying out its own established procedures
regarding the participation of students in project activities;

d\. provide information to NSF describing compliance with the above
provisions; and

e\. provide in every publication, testing or distribution agreement
involving instructional material developed under a grant (including but
not limited to teacher's manuals, textbooks, films, tapes or other
supplementary material) that such material will be made available within
the school district using such material, for inspection by parents or
guardians of children engaged in educational programs or projects of
that school district.

######### 863 Use of Metric Measurements

The Metric Conversion Act of 1975 (15 USC §§205a-k) and E.O. 12770 (3
CFR, 1991 comp.) encourage Federal agencies to use the Metric System in
procurement, grants and other business-related activities. The NSF grant
will contain a provision encouraging PI/PDs to submit project reports,
final reports, other reports and publications produced under grants that
employ the metric system of measurements.

**CHAPTER IX**

**RECONSIDERATION / SUSPENSION AND TERMINATION / DISPUTES /RESEARCH
MISCONDUCT**

This chapter provides basic information regarding the NSF
reconsideration process, resolution of problems arising from the
performance of a grant and research misconduct. Topics covered are:

**900 RECONSIDERATION OF PROPOSALS DECLINED OR RETURNED BY**

**THE FOUNDATION**

**910 SUSPENSION AND TERMINATION PROCEDURES**

**920 INFORMAL RESOLUTION OF GRANT ADMINISTRATION DISPUTES**

**930 RESEARCH MISCONDUCT**

**900 RECONSIDERATION OF PROPOSALS DECLINED OR RETURNED BY THE
FOUNDATION**

**901 General**

This section describes the types of reconsideration that NSF makes
available to individuals and organizations concerning proposals for
grants. It does not apply to:

a\. procurements governed by the Federal Property and Administrative
Services Act or the Federal Acquisition Regulations;

b\. "discourage" (i.e., non-binding) decisions resulting from submission
of a preliminary proposal;

c\. proposals for:

1\. fellowships;

2\. travel grants;

3\. Small Grants for Exploratory Research (SGER); or

4\. Phase I proposals submitted under the SBIR program.

d\. proposals returned without review by NSF for failure to:

1\. provide sufficient lead time before activity is to begin;

2\. meet announced proposal deadline date requirements; or

3\. comply with proposal formatting requirements stipulated in the NSF
*Grant Proposal Guide* or Program Solicitation.

**902 Policy**

a\. A proposer for NSF assistance whose proposal has been declined may
ask the cognizant NSF Program Officer or the cognizant Division Director
for information over and above the explanatory materials received with
the declination notice. If the PI/PD is not satisfied that the proposal
was fairly handled and reasonably reviewed, he/she may request
reconsideration by the responsible Assistant Director (AD) or Office
Head. An organization (or an unaffiliated PI/PD) still not satisfied
after reconsideration by the responsible AD/Office Head may request
further reconsideration by the Deputy Director of the Foundation. If a
proposal has been declined after review by the NSF, only an explanation
will be available.

b\. When a proposal has been returned by the Foundation as being
inappropriate for NSF consideration, the proposer may request
reconsideration of such a determination.

c\. The aim of any reconsideration is to ensure that NSF's review has
been fair and reasonable, both substantively and procedurally. The
scientific and technical merits may be examined within the context of
budget availability and program priorities. Reconsideration may also
address any procedural errors in peer review or other aspects of
proposal review, including unaccounted-for conflict of interests or
inappropriate consideration of records, information or rumor.

d\. Award of NSF assistance is discretionary and reconsideration is not
an adversarial process. A formal hearing, therefore, is not provided.
Because factors such as program budget and priorities factor into the
decision on a proposal, NSF cannot ensure proposers that reconsideration
will result in an award even if error is established in connection with
the initial review.

e\. No revisions made to the proposal after declination will be
considered in connection with the original proposal. However, a
substantially revised proposal may be submitted for review as a new
proposal under the usual procedures. NSF reserves the right to return
without review a proposal that is substantially the same as one that was
previously reviewed and declined whether or not a request for
reconsideration was made.

**903 Explanations by the NSF Program Officer or Division Director**

When a proposal is declined, the PI/PD receives verbatim but
unattributed copies of the ad hoc reviews and the panel summary (if
applicable), a description of how the proposal was reviewed, and, if not
otherwise provided in the panel summary, an explanation (written or
telephoned) of the basis for the declination. A returned proposal also
will be accompanied by an explanation. A PI/PD who is considering asking
for reconsideration should first contact the cognizant NSF Program
Officer or Division Director, who will afford the PI/PD an opportunity
to present his/her point of view, provide additional information if any
exists, and take any further action that seems appropriate.

**904 Reconsideration by the Assistant Director**

a\. If dissatisfied with the explanation provided by the NSF Program
Officer or Division Director, the PI/PD may request in writing that NSF
reconsider its action. Such a request will be considered only if the
PI/PD has first sought and obtained an explanation from the cognizant
NSF Program Officer or Division Director and only if the request is
received by the Foundation within 90 days after the declination or the
return. The request should be addressed to the AD/Office Head for the
directorate or office that handled the proposal and should explain why
the PI/PD believes that the declination or return was unwarranted.

b\. The AD/Office Head will reconsider the record to determine whether
NSF's review of the declined proposal was fair and reasonable,
substantively and procedurally, taking into account availability of
funds and the policies and priorities of the program and NSF. In the
case of a returned proposal, the record will be reviewed to determine
whether the proposed project was inappropriate for NSF consideration.
The AD/Office Head may request additional information from the PI/PD and
may obtain additional reviews. If additional reviews are sought, they
are subject to standard review procedures (e.g., instructions must be
provided to reviewers and conflicts-of-interest policies must be
followed). The AD/Office Head may conduct the reconsideration personally
or may designate another NSF official who had no part in the initial
review to do so. As used here, "AD/Office Head" includes such a
designated official.

c\. Within 30 days after the date of the request, the AD/Office Head
will furnish the results of the reconsideration, in writing, to the
PI/PD. If results cannot be furnished within 30 days, the AD/Office Head
will send the PI/PD a written explanation of the need for more time,
indicating the date when the results can be expected. If the AD/Office
Head reaffirms the declination or return, he/she will inform the PI/PD
that the PI/PD's organization may obtain further reconsideration by the
Deputy Director of NSF as provided below.

**905 Further Reconsideration by the Deputy Director**

a\. Within 60 days after the AD/Office Head has notified the PI/PD of
the results of the reconsideration, the proposing organization or an
unaffiliated PI/PD may request further reconsideration by the Deputy
Director of NSF.

b\. A request for further reconsideration need not be in any particular
format, but it must be in writing, and must be signed by the
organization's president or other chief executive officer and by the
PI/PD. For declinations, it should explain why the organization believes
that an error may have occurred in the initial evaluation and why it is
not entirely satisfied with the reconsideration by the responsible
AD/Office Head. For returned proposals, it should explain why the
organization believes that an error may have occurred in the initial
determination that the proposal was inappropriate for NSF consideration.

c\. The Deputy Director will review the request for further
reconsideration and the record of earlier NSF actions, including the
original review and the reconsideration by the AD/Office Head, to
determine whether NSF's review of the declined proposal was fair and
reasonable, or, in the case of a returned proposal, whether the proposed
project was inappropriate for NSF consideration. The Deputy Director may
request additional information from the PI/PD or the proposing
organization and may obtain additional reviews. If additional reviews
are sought, they are subject to standard review procedures (e.g.,
instructions must be provided to reviewers and conflicts-of-interest
policies must be followed).

d\. The Deputy Director may conduct the further reconsideration
personally or may designate another NSF official who had no part in the
initial evaluation of the proposal or the earlier reconsideration to do
so. As used here, "Deputy Director" includes such a designated official.

e\. Within 30 days after a request for further reconsideration is
received at NSF, the Deputy Director will furnish the results of the
further reconsideration, in writing, to the organization. If results
cannot be furnished within 30 days, the Deputy Director will send the
organization a written explanation of the need for more time, indicating
the date when the results can be expected.

f\. The decision made by the Deputy Director is final.

######### 910 SUSPENSION AND TERMINATION PROCEDURES

**911 Definitions**

a\. SUSPENSION is an action by NSF that temporarily withholds Federal
support of a project pending corrective action by the grantee or a
decision by NSF to terminate the grant.

b\. TERMINATION is the cancellation of a grant, in whole or in part, at
any time prior to its expiration.

**912 Suspension and Termination**

1.  **NSF Policy**

a\. A grant may be suspended or terminated in whole or in part in any of
the following situations by:

1\. NSF when the grantee has materially failed to comply with the terms
and conditions of the grant;

2\. NSF when the Foundation has other reasonable cause;

3\. NSF when ordered by the Deputy Director under NSF's Regulation on
Research Misconduct (45 CFR §689);

4\. NSF and the grantee by mutual agreement (if NSF and the grantee
cannot reach an agreement, NSF reserves the right to unilaterally
terminate the grant); or

5\. the grantee on written notice to NSF setting forth the reasons for
such action, the effective date, and, in the case of partial
termination, the portion to be terminated or suspended (with the
understanding that if NSF determines that the unterminated portion will
not accomplish the purposes of the grant it may suspend or terminate the
entire grant).

b\. Normally, action by NSF to suspend or terminate a grant will be
taken only after the grantee has been informed by NSF of the proposed
action, or informed of any deficiency on its part and given an
opportunity to correct it. However, NSF may immediately suspend or
terminate a grant without notice when it believes such action is
reasonable to protect the interests of the government.

c\. No costs incurred during a suspension period or after the effective
date of a termination will be allowable, except those costs which, in
the opinion of NSF, the grantee could not reasonably avoid or eliminate,
or which were otherwise authorized by the suspension or termination
notice, provided such costs would otherwise be allowable under the terms
of the grant and the governing cost principles.

d\. Within 30 days of the termination date the grantee will furnish a
summary of progress under the grant and an itemized accounting of costs
incurred prior to the termination date or pursuant to c, above. Final
allowable costs under a termination settlement shall be in accordance
with the terms of the grant, including this section, and the governing
cost principles, giving due consideration to the progress under the
grant. In no event will the total of NSF payments under a terminated
grant exceed the grant amount or the NSF pro rata share when cost
sharing was anticipated, whichever is less.

e\. A notice of termination other than by mutual agreement and/or the
final settlement amount may be subject to review pursuant to GPM 920,
"Informal Resolution of Grant Administration Disputes."

**912.2 Procedures for Suspension or Termination by NSF**

a\. When it is believed that a grantee has failed to comply with one or
more of the terms and conditions of a grant, the NSF Grants Officer will
normally advise the grantee in writing of the nature of the problem and
that failure to correct the deficiency may result in suspension or
termination of the grant. The grantee will be requested to respond in
writing within 30 calendar days of the date of such letter, describing
the action taken or the plan designed to correct the deficiency. Copies
of such correspondence will be furnished to the PI/PD and to the NSF
Program Officer. However, NSF may immediately suspend or terminate a
grant without notice when it believes such action is reasonable to
protect the interests of the government.

b\. If a satisfactory response is not received within the above period,
the NSF Grants Officer may issue a notice immediately suspending
authority to further obligate grant funds, in whole or in part. Notice
of suspension is sent by certified mail (return receipt requested) to
the Authorized Organizational Representative, with a copy to the PI/PD.
Within NSF, copies are furnished to DFM and to the NSF Program Officer.
The notice will set forth the terms of the suspension and its effective
date.

c\. Normally, the suspension will remain in effect for a maximum of 60
days to allow the grantee to take corrective action. In the event that
the deficiency is not corrected to the satisfaction of NSF, the NSF
Grants Officer may issue a notice of termination, addressed as in b.,
above. The notice will set forth the reasons for the action and its
effective date.

d\. The remedies described in GPM 920, "Informal Resolution of Grant
Administration Disputes," do not preclude a grantee being subject to
Debarment and Suspension under the Government-wide Non-procurement
Procedures published at 45 CFR §620.

e\. Suspension or termination due to research misconduct will be imposed
as provided in that regulation.

**913 Termination by Mutual Agreement**

**913.1 NSF Policy**

Circumstances may arise in which either NSF or the grantee wishes to
terminate a project. If both parties agree that continuation of the
project would not produce results commensurate with the further
expenditure of funds, or if there arises any other reason, the grant may
be terminated by mutual agreement.

**913.2 Procedures**

a\. If the grantee wishes to terminate the project, the Authorized
Organizational Representative should advise the NSF Grants Officer in
writing and send a copy to the NSF Program Officer.

b\. If NSF wishes to terminate the project, the NSF Grants Officer will
advise the grantee's Authorized Organizational Representative in writing
and send copies to the PI/PD and the NSF Program Officer.

c\. Within 30 days after receipt of request from either party for
termination by mutual agreement, the other party will provide an
appropriate written response. In the event of disagreement between the
parties, the NSF Grants Officer will make a final decision, subject to
the review procedures prescribed by GPM 920 "Informal Resolution of
Grant Administration Disputes."

d\. Following termination, grant closeout procedures will be initiated.

**914 NSF Suspension or Termination Review Procedure**

Grantees should refer to GPM 923, "Procedures," for procedures to
request review of a suspension or termination notice. Pending resolution
of the request for review, a notice of termination shall remain in
effect.

**920 INFORMAL RESOLUTION OF GRANT ADMINISTRATION DISPUTES**

**921 Background**

Consistent with the *Recommendation on Grant Disputes* by the
Administrative Conference of the U.S., and with the intent of the
provisions of Alternative Dispute Resolution, the Foundation provides
the informal resolution processes described below concerning disputes or
disagreements that may arise over Grants Officer post-award decisions
under an NSF grant.

**922 Scope of Post-Award Disputes Covered**

a\. The disputes below are covered under the process described in GPM
923, "Procedures":

1\. cost disallowances pursuant to a Grants Officer's decision, e.g.,
specific disallowances under an individual grant or as a result of an
audit report;

2\. termination orders; and

3\. the final settlement amount under a termination.

b\. Requests for reconsideration of a declined proposal or a proposal
returned without review by NSF are covered in GPM 900, "Reconsideration
of Proposals Declined or Returned by the Foundation."

**923 Procedures**

a\. The grantee should submit a certified letter to the Director,
Division of Grants and Agreements, National Science Foundation, 4201
Wilson Boulevard, Arlington, VA 22230, noting the grantee's disagreement
or dispute and identifying the NSF Grants Officer's decision in
question, giving reasons for the request for review and providing any
other material pertinent to the request.

b\. The letter to the Director, DGA, must be postmarked no later than 30
days after the date of the letter notifying the grantee of the decision
in question. The time for filing a request for review is strictly
enforced and no extensions for the purpose of preparing it will be
granted.

c\. The request for review need not follow a prescribed format; however,
it must contain a full statement of the grantee's position with respect
to the disputed matter and the facts and reasons in support of the
grantee's position. Requests will be reviewed if the grantee submits new
information (which was unavailable at the time of the original
decision); if an error in fact or application of NSF policy is noted in
the original decision; or improper procedures were followed in the
original decision.

d\. The Director, DGA, will review or designate one or more individuals
to review the matter. One reviewing official will be at least at a
management level equivalent to the official who made the decision that
is being reviewed. In no case, will the review be undertaken by any
individual involved with the decision or involved in recommending and/or
monitoring the scientific and engineering aspects of the project or
responsible for negotiating and/or administrating its business aspects.

e\. The designated individual(s) will review and consider all relevant
information available. A report which identifies the conclusion and
recommendation will be completed and in disputes covered under:

1\. GPM 922.a.1 and 3, the report will be completed within 30 days and
forwarded to the Director, DGA or his/her designee for a final and
unappealable written decision for the agency. The Director, DGA or
his/her designee will communicate the decision in writing to the
grantee, normally within 15 days of receipt of the report, unless
otherwise specified by NSF.

2\. GPM 922a.2, the report will be completed within 90 days and
forwarded to the NSF Deputy Director or his/her designee. The NSF Deputy
Director or his/her designee will make the final and unappealable
decision for the agency and will communicate the decision in writing to
the grantee within 15 days of receipt of the report unless otherwise
specified by NSF.

**930 RESEARCH MISCONDUCT**

RESEARCH MISCONDUCT means fabrication, falsification, or plagiarism in
proposing or performing research funded by NSF, reviewing research
proposals submitted to NSF, or in reporting research results funded by
NSF.

**931** **NSF Policies and Responsibilities**

a\. The NSF will take appropriate action against individuals or
organizations upon a determination that misconduct has occurred. It may
also take interim action during an investigation. Possible actions
include sending a letter of reprimand to the individual or organization,
requiring prior NSF approval of particular activities by an individual
or organization, requiring special assurances of compliance with
particular policies, restricting designated activities or expenditures
under particular grants, suspending or terminating grants, debarring or
suspending an individual or organization and prohibiting participation
by an individual as an NSF reviewer, advisor or consultant.

b\. NSF will find misconduct only after careful inquiry and
investigation by a grantee organization, by another Federal agency or by
NSF. An "inquiry" consists of preliminary information-gathering and
preliminary fact-finding to determine whether an allegation or apparent
instance of misconduct has substance. An investigation must be
undertaken if the inquiry determines the allegation or apparent instance
of misconduct has substance. An "investigation" is a formal development,
examination, and evaluation of a factual record to determine whether
misconduct has taken place or, if misconduct has already been confirmed,
to assess its extent and consequences or determine appropriate action.

c\. Before NSF makes any final finding of misconduct or takes any final
action on such a finding, NSF will normally afford the accused
individual or organization notice, a chance to provide comments and
rebuttal and a chance to appeal. In structuring procedures in individual
cases, NSF may take into account procedures already followed by other
entities investigating or adjudicating the same allegation of
misconduct.

d\. Debarment or suspension for misconduct will be imposed only after
further procedures described in applicable debarment and suspension
regulations (45 CFR §620). Severe misconduct is an independent cause for
debarment or suspension.

e\. The OIG (GPM 118, "Office of Inspector General") oversees
investigations of research misconduct and conducts any NSF inquiries and
investigations into suspected or alleged research misconduct.

f\. The Deputy Director adjudicates research misconduct proceedings and
the Director decides appeals.

g\. After receiving an investigation report, the subject's rebuttal and
recommendations of the OIG, the NSF Deputy Director may initiate further
investigation or hearings or order interim or final actions. A written
disposition specifying actions to be taken will be sent to affected
individuals or organizations and will include instructions on how to
pursue an appeal to the Director of the Foundation.

**932 Role of Grantees**

a\. Grantees bear primary responsibility for prevention and detection of
misconduct. In most instances, NSF will rely on grantees to promptly:

1\. initiate an inquiry into any suspected or alleged misconduct;

2\. conduct a subsequent investigation, if the inquiry finds substance;

3\. take action necessary to ensure the integrity of research, the
rights and interests of research subjects and the public and the
observance of legal requirements or responsibilities; and

4\. provide appropriate safeguards for subjects of allegations as well
as informants.

b\. If a grantee wishes NSF to defer independent inquiry or
investigation, it should:

1\. inform NSF immediately if an initial inquiry finds substance;

2\. keep NSF informed during such an investigation;

3\. notify NSF even before deciding to initiate an investigation or as
required during an investigation:

\(a\) if there is reasonable indication of possible violations of civil
or criminal law;

\(b\) if public health or safety are at risk;

\(c\) if NSF's resources, reputation, or other interests need
protecting;

\(d\) if Federal action may be needed to protect the interests of a
subject of the investigation or of others potentially affected; or

\(e\) if the research community or the public should be informed;

\(f\) if research activities should be suspended; and

4\. provide NSF with the final report from any investigation.

c\. If a grantee wishes NSF to defer independent inquiry or
investigation, it should complete any inquiry and decide whether an
investigation is warranted within 90 days. It should similarly complete
any investigation and reach a disposition within 180 days. If completion
of an inquiry or investigation is delayed, but the grantee wishes NSF
deferral to continue, NSF may require submission of periodic status
reports.

d\. Grantees should maintain and effectively communicate to their staffs
appropriate policies and procedures relating to misconduct, which should
indicate when NSF must or should be notified.

**933 Reporting Possible Misconduct**

Possible misconduct in activities funded by NSF should be reported to
the Office of Inspector General, National Science Foundation, 4201
Wilson Boulevard, Arlington, VA 22230, (703) 292-7100 or (800) 428-2189
or via e-mail at oig@nsf.gov.

**SUBJECT INDEX**

**GPM SECTION**

**A**

Absence of Principal Investigator/Project Director 312

Acceptance of Assistance Agreements 222

ACH Vendor Express 436, Exhibit IV-1

Acknowledgment and Disclaimer 744

Acquisition Cost of Equipment 612.2a

Additional Funding Support 260, 602.1, 635

Advance Payments 430, 440

Age Discrimination 705

Alcoholic Beverages 625j

Allowability of Costs Chapter VI

Alterations and Rearrangements 621, 720, 840, Exhibit III-1

Animal Welfare 713

Annual Project Report 263, 341, 812.4

Anti-discrimination Statutes 700

Appeals 900, 920

Applicable Credits 444, 445, 750

Approvals, Requests for NSF Exhibit III-1

Assistance Awards, Definition 210b

Assurance of Compliance Exhibit VII-1

Civil Rights 702.3, 702.4

Human Subjects 711.3

Rehabilitation 703.3, 703.4

Subrecipients 702.4, 703.4

Audits 350

Authorized Organizational Representative 210a

Award Instrument 230

**B**

Banks, Use of Women-Owned and Minority-Owned 437

Bayh-Dole Act 731

Bonding and Insurance 722

Budget Changes 320, 635, Exhibit III-1

Business Officer 420a

**C**

Cash:

Advances 430, 440

Contributions see "Cost Sharing"

Refunds 440

Reports (FCTR) 450

Changes:

Grantee Notifications to and Requests for

Approval from the National Science Foundation Exhibit III-1

Grant Budget 320, 635

Grant Period 253

Grant Policy Manual 123

Project Direction or Management 310

Objectives, Scope, or Methodology 311

Principal Investigator/Project Director 312

Charter Flights 762

Civil Rights Act of 1964 702

Classified Research 850

Closeout 345, 452

Coffee Breaks and Meals 625

Commercial Firms 501.2, 542.2, 601.1

Compensation, Extra Above Base Salary 611.1b3, 616.2

Compensation for Personal Services 611

Computer Costs 615

Conferences 625

Conflict of Interest Policies 510

Conflicting Guidelines 601.3

Construction, Rearrangements and Alterations 240b,720

Consultant Services 616, 625f

Continuing Grant 210c, 263

Contracts, Policy and Oversight, Division of 114

Contracts under Grants 313

Contributions see "Cost Sharing"

Cooperative Agreements 210d, 221b, 222b

Copyright 732

Copyrightable Material Clause 732.2

Cost Principles 601

Cost Reimbursement Award 210c

Cost Sharing 330

Credits 440, 750

Curriculum Development Projects 862

**D**

Data Collection 811

Data Rights 732, 734

Davis-Bacon Act 721

Debarment and Suspension 912.2, 931e

Declination of Proposal (NSF Reconsideration of) 900

Delays 311.3

Delinquent Reports 344

Dependents Travel Costs 614

Direct Costs 610, 620

Disability Regulations 703

Disbursements 420, 450

Disclaimer 744

Discrimination 700

Disputes Resolution 920

Dissemination of Research Results 617, 734, 740, 812.4

Distribution of Grant Materials 740

Division of Grants and Agreements (NSF) 113

Division of Contracts, Policy and Oversight (NSF) 114

Division of Financial Management (NSF) 115

DNA Guidelines 712

Documentation Costs 617

Domestic Travel 614

**E**

Effective Date 251

Electronic Submission - Financial 436, 451

Entertainment Costs 625

Environmental Impact 830

Equal Employment Opportunity 701b, 706

Equal Opportunity Programs, NSF Office of 117

Equipment:

Acquisition 540, 612

Allowability of Costs 612

Commercial Organizations 542.2

Conditions for Acquisition and Use 543

Definition 612

General Purpose 543b, 612.2c, 612.4

Government-Owned 544, 545, 546

Nonprofit Organizations 542.1

Rental or Lease 623

Shared Use 543

Special Purpose 612.2d, 612.3

Title 542, 545

Transfer 312.8, 542.3

Erroneous Payments 442

Excess Government Personal Property 546

Expendable Personal Property see "Materials and Supplies"

Expenditures:

Allowability of Costs Chapter VI

Grantee Responsibility 301

Reports 450

Outlays 420

Experimental Curriculum 862

Expiration Date 251, 253.2

Extension of Grant Period 253.3

**F**

Facilities Capital Cost of Money 633.2c

Federal Assistance Award Data System 800

Federal Cash Transactions Reports 345, 440, 450

Federal Cost Principles 601

Federal Employees 616.3, 618.1

Federal Demonstration Project 240b

Fee Payments 640

Fees, Consultant 616.1, 625f

Fellowships 333.1, 632.2, 733.2, 901

Final Disbursement Reporting 452

Final Project Report 342, 343, 812.4

Final Technical Information Items 343

Financial Disclosure 510

Financial Management, Division of 115

Financial Management System Standards 410, 520

Fiscal Reports 450

Fixed Amount Award 210c, 240b, 633.1b3

Flood Insurance 723

Foreign Projects 712.4, 731.1, 731.2, 732.2c, 733.3, 763

Foreign Travel 614, 760

Foreign-Flag Air Carriers 761.3

Forms and Publications Unit (NSF) 130

Freedom of Information Act 812.3

Fringe Benefits 611.2

Funds:

Allowability of Costs/Expenditures Chapter VI

Payment of 430

Residual 262

Safeguarding 432

Transfer of 313, 322

Withholding 432

Furniture and Furnishings 612.2c, 612.4

**G**

General Counsel, NSF Office of 116

General Purpose Equipment 543b, 612.2c, 612.4

Government-Owned Equipment 545, 546

Grant:

Acceptance 222

Budget 320

Changes 310

Closeout 345

Conditions, General And Standard 240

Definitions 210

Disputes Resolution 920

Financial Reporting 450

Financial Disclosure 510

International Travel 761

Instrument, Defined 230

Periods 250

Policy Manual 120

Renewal 262

Suspension 910

Termination 910

Transfer 312.8, Exhibit III-1

Types 210

Grant Proposal Guide (GPG) 130

Grant Policy Manual (GPM) 120

Grantee:

Definition 210e, 420

NSF Relationships 220

Organization and Management Data 501

Prior Approvals Exhibit III-1

Share see "Cost Sharing"

Standards 220, Chapter V

Submission of Proposals 130

Grants and Agreements, Division of 113

Grants Officer 113

Greenland 763b

Guide to Programs 100

Guidelines, Conflicting 601.3

**H**

Human Subjects 711, 862

**I**

Income 444, 732.1, 750

Independent Research and Development 633.2b

Indirect Costs 630

Informal Resolution of Grant Administration Disputes 920

Information Release 812

In-Kind Contributions see "Cost Sharing"

Inspector General, Office of 118, 930

Institutional Ledger Section (ILS) 115, Chapter IV

Instrumentation and Facilities Guidelines 544

Insurance 722, 723

Intangible Property see "Intellectual Property"

Intellectual Property 730

Interest 443

Intergovernmental Review of Federal Programs 800

International:

Agreements 763

Charter Flights 762

Copyright 732.2c, 733.3

Patents 731.2, 733.3

Projects See "Foreign Projects"

Travel 760

Travel Grants 240b, 765

Intra-University Consulting 616.2

Inventions and Patents 731

Investigator Financial Disclosure 510

**L**

Leased Facilities and Equipment 623

Leave, Sabbatical 611.1b4

Legal Services 616.1f

Liabilities and Losses 861

License Rights 731

Long-Term Absence of PI/PD 312.4

Living Organisms 710

**M**

"March-in" Rights 731.3

Marine Mammal Protection Act 714

Matching Share 334

Materials and Supplies 613

Maximum Obligation of NSF 602.1

Meals and Coffee Breaks 618.2, 625

Meetings and Conferences 625

Merit Review 130, 264

Methodology Changes 311.2

Metric Measurements 863

Minority-Owned Banks 437

Misconduct in Science 930

Motor Vehicles 612.2c

**N**

National Register of Historic Places 840

National Science Board 111, 731.2, 812, 902

National Science Foundation:

Act 100, 120, 333.1, 722, 731, Exhibit I-1

Approvals Exhibit III-1

Grant Policy Manual 120

Organization 110

Proposal Processing Unit 130

National Security 850

New Grantee 501

News Release 622, 812.2

No-Cost Extension 253.3

Nonexpendable Personal Property see "Equipment"

Non-Discrimination Statutes 700

Non-profit Organization 601.1, 731.3

Notifications to NSF Exhibit III-1

NSF-Grantee Relationships 220

**O**

Objectives, Changes in 311

Obligations 420

Off-Campus (Off Site) Activities 633.1e

Office Equipment and Furniture 612.2c, 612.4

Office of Equal Opportunity Programs (NSF) 117

Office of the General Counsel (NSF) 116

Office of Inspector General (NSF) 118, 930

OMB Circulars 121, 350, Exhibit I-1

Open Government Legislation 812.3

Outlays 420

Overhead see "Indirect Costs"

**P**

Page Charges in Scientific Journals 617

Participants Support Costs 618, 625, 633.2

Passports and Visas 764

Patent Rights Clause 731.3

Patents and Inventions 731

Payments 420i, 430

Per Diem 614, 618.2, 625

Permanent Equipment 612

Permits 715

Person Months 312

PI/PD:

Change in Person-Months 312

Compensation 611.1

Definition 210

Long-Term Absence 312.4

Short-Term Absence 312.3

Substitute 312.7

Transfer to Another Institution 312.8

Withdrawal 312.6

Post-Expiration Costs 602.3

Pre-Award Costs 602.2

Pre-College Students 862

Predetermined Fixed Rate 631

Preservation of Historic Places 840

Press Releases 622, 812.1

Principal Investigator (PI) 210f

Principles, Federal Cost 601

Printing-Related Costs 617, 625d, 742

Prior NSF Approval 603.2, 614, Exhibit III-1

Procurement Standards 530

Project Director (PD) 210f

Program Income 444, 750

Project Reports 340

Project Income see "Program Income"

Project Performance 300

Property:

Acquisition 543

Copyright and Publication 732, 740

Data and Software 734

Equipment 542, 612, 615

Excess Government Personal Property 546

Intellectual 730

Inventions and Patents 731

Management Standards 540

Materials and Supplies 541, 613, 625

Protection of Historic Places 840

Title 541, 542, 545, 730

Proposal:

Reconsideration 900

Submission 130

Proprietary Information 812.3

Provisional Rate, Maximum 633.1

Publication 617, 625d, 734, 740, 812.3

**Q**

Quarterly Disbursement Report 451

Questionnaires 811

**R**

Rearrangements and Alterations 621, 720, 840, Exhibit III-1

Rebudgeting 320, 635, Exhibit III-1

Recombinant DNA 712

Reconsideration of Proposals 900

Records Retention 350

Refunds to NSF 440

Registration Fees 618.1

Regulations, NSF Exhibit I-1

Rehabilitation Act of 1973 703

Reimbursements 434

Release of Information 812

Relocation Costs 624

Renewed Support 262

Rearrangements 621, 720

Rental or Lease of Facilities/Equipment 615, 623

Reporting Requirements 340, 450, 930

Reports:

Cost Sharing 333.6

Federal Cash Transactions 451

Final Disbursement Reporting 452

Final Project 342, 812.3

Project, Annual 341, 812.3

Technical Information Items 343

Request for Advance or Reimbursement 430

Research Equipment 612

Residual Funds 262

Resolution of Grant Administration Disputes 920

Revocation 910

Rights in Data and Software 734

Royalties Under Grants 730

**S**

Sabbatical Leave 611.1b4

Salaries and Wages 611

Scope, Change in 311.1

Security, National 850

Seismic Safety 724

Sex Discrimination 704

Shared Use of Equipment 543

Sharing Research Results 617, 734, 740

Short-Term Absence of PI/PD 312.3

Significant Change, Delay or Event of Unusual Interest 311.3

Site Visits 301

Small Business 542.2, 731, 901

Software Rights 734

Special Purpose Equipment 612.2d, 612.3

Speaker Fees 625

Staff Benefits see "Fringe Benefits"

Standards:

Financial Management Systems 410, 520

Grantee 220, Chapter V Procurement 530

Property Management 540

Standard Grant 210, 262

Statutes, Executive Orders and Other Directives Exhibit I-1

Stipends 618.2

Subawards, subcontracts 313, 432, 731.3g, Exhibit III-1

Subsistence Allowances 618.2

Substitute Principal Investigator/Project Director 312.7

Summer Salaries 611.1b2

Sunshine Act 812.2

Supplemental Support 264, 633.1c, 633.1d

Supplies 541, 613, 625b

Suspension of Award 910

# T

Tangible Property 735

Tax Status 820

Technical Reporting Requirements 340

Termination of Award 910

Title:

Equipment 542

Patents and Inventions 731.3

Supplies and Materials 541

Tangible Property 735.2

Training Equipment see "Special Purpose Equipment"

Transfer of:

Equipment 312.8e, 543

Grant 312.8, Exhibit III-1

Funds 312.8, 313, 322

Principal Investigator/Project Director 312

Project Effort 313

Travel Allowances:

Conference or Group Travel Award Grant General Conditions 240b

Costs 614

Dependent 614

Domestic 614

Foreign 614, 761

Two-Ninths Rule 611.1b2

**U**

Underrecovery of Indirect Costs 634

Unliquidated Obligations 420

Unobligated Balance 420, 441

Unused Award Funds 441

U.S.-Flag Air Carriers 761.2

**V**

Vendor Express, ACH 436, Exhibit IV-1

Vertebrate Animals 713

Visas 764

**W**

Wages 611

Withdrawal of Principal Investigator/Project Director 312.6

Withholding Payments 432c

Women-Owned Banks 437

Working Capital Advance 435

[^1]: For purposes of this Manual, references to OMB Circular A-110 also
    include comparable portions of 45 CFR §602, where appropriate.

[^2]: Consult Exhibit I-1 for information on obtaining these types of
    documents.

[^3]: See also the section above on cooperative agreements that involve
    MREFC and operations activities.

[^4]: Collaborative/joint arrangements may include closely related and
    coordinated activities at another organization; a joint activity by
    several organizations or consortia; and group proposals from
    multiple organizations. Submission of a paper budget signed by the
    Authorized Organizational Representative of the subawardee
    organization is not required.

[^5]: For consistency with the DHHS conflict of interest policy, in lieu
    of "organization", NSF is using the term "institution" which
    includes all categories of proposers.

[^6]: See *On Preventing Conflicts of Interest in Government-Sponsored
    Research at Universities*, a Joint Statement of the Council of the
    American Association of University Professors and the American
    Council on Education (1964); *Managing Externally Funded Programs at
    Colleges and Universities*, especially "Principle X. Research Ethics
    and Conflicts", issued by the Council on Government Relations
    (1989); *Guidelines for Dealing with Faculty Conflicts of Commitment
    and Conflicts of Interest in Research*, issued by the Association of
    American Medical Colleges (1990); and *Framework Document for
    Managing Financial Conflicts of Interest*, issued by the Association
    of American Universities (1993).

[^7]: Grantee notifications of conflict of interest that cannot be
    managed, reduced, or eliminated must be submitted electronically via
    the NSF FastLane system.

[^8]: In addition to vertebrate animals covered by the Animal Welfare
    Act, the requirements specified in this coverage also are extended
    to rats, birds and mice.