[NSB-99-90]{.underline}

^May\ 7,\ 1999^

**^MEMORANDUM\ TO^**^:\ National\ Science\ Board\ Members\ and\ Consultants\ ^

**^SUBJECT:^**^\ Preliminary\ Report\ of\ the\ May\ 6,7,\ 1999\ Meeting^

^The\ major\ actions\ of\ the\ Board\ at\ its\ 353rd\ meeting\ on\ May\ 6,7,\ 1999,\ are\ summarized\ for\ the\ information\ of\ those\ members\ and\ consultants\ absent\ and\ as\ a\ reminder\ to\ those\ present.\ ^

**1. ^Board\ Actions^**

a\.
^Five\ Board\ members\ were\ sworn\ in\ to\ terms\ ending\ in\ 2004:\ Dr.\ George\ Langford,\ Dr.\ Joseph\ Miller,\ Dr.\ Robert\ Richardon,\ Dr.\ Maxine\ Savitz,\ Dr.\ Luis\ Sequeira.^

b\.
^The\ Board\ elected\ Dr.\ Claudia\ Mitchell-Kernan\ and\ Dr.\ Warren\ Washington\ to\ the\ Executive\ Committee.^

c\.
^The\ Board\ approved\ a\ statement\ on\ cost-sharing\ principles\ (NSB\ 99-80)\ as\ revised\ (Attachment).^

d\.
^Subject\ to\ additional\ information\ on\ the\ issue,\ the\ Board\ authorized\ the\ Executive\ Committee\ to\ approve\ a\ Board\ Statement\ in\ opposition\ to\ Senate\ Bill\ 887,\ a\ proposal\ to\ establish\ a\ moratorium\ on\ foreign\ visitors\ to\ the\ Department\ of\ Energy\ Nuclear\ laboratories.^

e\.
^The\ Board\ adopted\ a\ recommendation\ allowing\ the\ NSF\ Director\ to\ seek\ Congressional\ approval\ to\ present\ more\ than\ one\ Alan\ T.\ Waterman\ Award\ each\ year.^

f\.
^The\ Chair\ of\ the\ Executive\ Committee,\ NSF\ Director\ Rita\ R.\ Colwell,\ presented\ the\ annual\ report\ of\ the\ Executive\ Committee\ to\ the\ Board.^

g\.
^The\ Board\ agreed\ to\ approve\ the\ calendar\ for\ meetings\ in\ 2000\ after\ a\ final\ review\ at\ the\ July\ NSB\ meeting.\ Members\ were\ urged\ to\ review\ their\ calendars\ and\ notify\ the\ NSB\ Office\ of\ dates\ in\ 2000\ with\ conflicts.^

h\.
^The\ Board\ approved\ the\ Closed\ and\ Open\ Session\ minutes\ of\ the\ February\ 17,18,\ 1999\ meeting\ and\ the\ March\ 25,26,\ 1999\ meeting.^

**^Awards^**

^The\ Board\ approved\ the\ following\ awards:\ \ \ \ \ Amount\ not\ ^

^\ \ \ \ \ \ \ \ \ \ [to\ exceed]{.underline}^

**^Mathematical\ and\ Physical\ Sciences^**

^[Division\ of\ Mathematical\ Sciences]{.underline}^

^Operation\ of\ the\ Mathematical\ Sciences\ Research^

^Institute\ (MSRI)^

^Berkeley,\ California\ \ \ \ \ \ \ \ \$17,000,000^

^([NSB-99-72]{.underline})\ \ \ \ \ \ \ \ \ for\ 60\ months^

^[Division\ of\ Astronomical\ Sciences]{.underline}^

^Operation\ of\ the\ National\ Astronomical^

^and\ Ionosphere\ Center\ (NAIC)\ \ \ \ \ \ \$58,926,000^

^Cornell\ University\ \ \ \ \ \ \ \ \ for\ 60\ months^

^([NSB\ 99-77]{.underline})^

**^Social,\ Behavioral\ and\ Economic\ Sciences^**

^[Division\ of\ International\ Programs]{.underline}^

^The\ U.S.\ Civilian\ Research\ and\ Development\ \ \ \ \$10,000,000^

^Foundation\ for\ the\ Independent\ States\ of\ the\ \ \ \ \ for\ five\ years;^

^Former\ Soviet\ Union\ (CRDF)\ \ \ \ \ \ \ not\ to\ exceed\ ^

^\$2,500,000\ in\ any\ one\ year.\ Any\ NSF-appropriated\ funds\ transferred\ to\ CRDF\ should\ be\ directed\ so\ that\ there\ is\ clear\ traceability\ to\ the\ specific\ research\ supported.\ ^

**1. ^\ NSB\ Committees^**

^(Materials\ for\ committee\ summaries\ are\ provided\ by\ executive\ secretaries.)^

^The\ Chairman\ established\ a\ new\ committee,\ the\ Committee\ on\ Communication\ and\ Outreach,\ chaired\ by\ Dr.\ Greenwood,\ with\ members\ Drs.\ Langford,\ Menger,\ Savitz,\ Suzuki\ and\ Tien,\ with\ Ms.\ Mary\ Hanson\ of\ the\ Office\ of\ Legislative\ and\ Public\ Affairs\ as\ Executive\ Secretary.\ The\ Committee\ is\ asked\ to\ report\ a\ plan\ of\ action\ to\ the\ Board\ at\ its\ November\ 17,\ 18\ 1999\ meeting.^

^[Committee\ Reports]{.underline}^

**a. ^Executive\ Committee^**

^The\ Executive\ Committee\ discussed\ items\ related\ to\ the\ May\ meeting\ agenda,\ approved\ the\ committee's\ annual\ report,\ as\ required\ by\ law,\ and\ discussed\ changes\ proposed\ by\ the\ Director\ to\ the\ Alan\ T.\ Waterman\ Award.\ The\ committee\ discussed\ the\ NSF\ FY\ 2001\ budget\ preparations\ and\ reviewed\ plans\ for\ Executive\ Committee\ approval\ of\ the\ FY\ 2001\ budget\ during\ the\ July-August\ timeframe.^

**b. ^Audit\ &\ Oversight\ (A&O)^**

**i. ^Supervisory^**

^The\ committee\ discussed\ the\ Inspector\ General's\ Semiannual\ Report\ for\ the\ period\ ending\ March\ 31,\ 1999,\ with\ the\ Chairman\ and\ committee\ members.\ The\ committee\ took\ no\ exception\ to\ the\ IG's\ report\ and\ agreed\ on\ the\ contents\ of\ the\ NSB\ Management\ Letter,\ which\ will\ transmit\ the\ report\ to\ the\ Congress\ on\ or\ before\ June\ 1,\ 1999.\ Mr.\ Sunshine\ gave\ an\ overview\ of\ the\ Inspector\ General\ Act\ and\ described\ OIG's\ Mission,\ Vision,\ and\ Goals\ for\ the\ benefit\ of\ new\ Committee\ members.^

**^Regular^**

^Ms.\ Linda\ Massaro\ provided\ a\ Y2K\ Update:\ NSF\ systems\ are\ on\ track\ and\ compliant.\ ^

^Dr.\ Bordogna\ reviewed\ the\ background\ for\ the\ NSF\ Cost\ Sharing\ Policy\ Action\ Item.\ ^

^The\ A\ &\ O\ committee\ recommended\ NSB\ approval.\ (Item\ approved\ by\ full\ NSB\ with\ minor\ change.)\ ^

^Mr.\ Kull\ provided\ copies\ of\ the\ recently\ issued\ 1998\ NSF\ Accountability\ Report.\ It\ is\ akin\ to\ a\ "Shareholders'\ Report"\ to\ the\ Congress,\ OMB\ and\ the\ public,\ including\ both\ performance\ and\ accounting\ information.\ He\ also\ noted\ that\ NSF\'s\ financial\ statements\ received\ a\ clean\ accounting\ opinion\ from\ the\ independent\ auditors\ and\ praise\ from\ Congress.\ Mr.\ Herer,\ ^

^Dr.\ Hopkins\ and\ Mr.\ Sunshine\ provided\ a\ detailed\ briefing\ on\ NSF's\ GPRA\ efforts.\ The\ first\ official\ GPRA\ Performance\ Report\ is\ due\ in\ March,\ 2000.\ The\ committee\ wants\ to\ assure\ that\ the\ NSB\ has\ adequate\ time\ to\ review\ the\ draft\ report.\ NSF\ staff\ will\ make\ material\ available\ for\ review\ as\ soon\ as\ feasible.^

**a. ^Education\ and\ Human\ Resources\ (EHR)^**

^After\ discussion,\ the\ committee\ unanimously\ recommended\ approval\ of\ the\ EHR\ Hearings\ Summary\ Report\ and\ recommended\ a\ wide\ distribution.\ A\ briefing\ on\ funding\ and\ review\ profiles\ was\ presented\ to\ the\ Committee\ and\ the\ NSF\ cost\ sharing\ policy\ was\ outlined.\ Dr.\ Williams\ discussed\ unmet\ needs\ and\ opportunities\ with\ the\ committee\ in\ a\ presentation\ that\ focused\ on\ the\ \"21st\ Century\ Workforce.\"\ ^

^The\ committee\ discussed\ a\ draft\ framework\ for\ NSB/EHR\ committee\ priorities\ and\ workplan\ as\ part\ of\ its\ consideration\ of\ the\ EHR\ Strategic\ Plan.\ The\ policy\ area:\ K-16\ Education\ Strategies\ was\ given\ top\ priority.\ The\ committee\ charged\ NSF\ staff\ with\ the\ task\ of\ preparing\ a\ concept\ paper\ that\ could\ lead\ to\ a\ symposium\ on\ the\ topic.\ In\ executive\ session,\ the\ committee\ was\ briefed\ on\ student\ achievement\ data\ set\ analyses\ from\ EHR\'s\ Division\ of\ Educational\ System\ Reform\ and\ on\ changes\ in\ the\ organization\ of\ the\ EHR\ Directorate.^

**b. ^Programs\ and\ Plans\ (CPP)^**

^The\ committee\ discussed\ the\ draft\ findings\ and\ recommendations\ of\ the\ Task\ Force\ on\ the\ Environment.\ CPP\ discussed\ eleven\ keystone\ recommendations\ ranging\ across\ research,\ education,\ scientific\ assessment,\ physical\ infrastructure,\ technological\ infrastructure,\ and\ information\ infrastructure.\ The\ task\ force\ is\ also\ refining\ recommendations\ on\ partnerships\ and\ on\ international\ aspects.\ CPP\ accepted\ the\ summary\ of\ findings\ and\ recommendations,\ with\ minor\ edits,\ and\ recommended\ that\ they\ be\ shared\ with\ the\ NSB\ along\ with\ the\ full\ report\ of\ the\ task\ force,\ for\ comment,\ as\ soon\ as\ available.^

^The\ committee\ reviewed\ and\ approved\ two\ action\ items\ for\ consideration\ by\ the\ NSB:\ Operation\ of\ the\ National\ Astronomy\ and\ Ionospheric\ Center\ (NAIC)\ ([NSB-99-77]{.underline}),\ and\ the\ Mathematical\ Sciences\ Research\ Institute([NSB-99-72]{.underline}).\ CPP\ also\ reviewed\ and\ approved\ the\ action\ item\ for\ the\ U.S.\ Civilian\ Research\ and\ Development\ Foundation\ for\ the\ Independent\ States\ of\ the\ Former\ Soviet\ Union\ (CRDF),\ with\ a\ revised\ NSB\ resolution\ to\ provide\ that\ any\ NSF-appropriated\ funds\ transferred\ to\ CRDF\ should\ be\ directed\ so\ that\ there\ is\ clear\ traceability\ to\ the\ specific\ research\ supported.^

^The\ committee\ received\ a\ presentation\ on\ the\ NSF\ cost\ sharing\ policy\ statement,\ which\ had\ been\ discussed\ in\ the\ Audit\ and\ Oversight\ Committee.\ The\ committee\ agreed\ that\ it\ would\ be\ good\ to\ review\ the\ effect\ of\ the\ policy\ after\ it\ has\ been\ implemented,\ perhaps\ in\ three\ years.^

^CPP\ continued\ its\ discussion\ of\ infrastructure\ planning,\ which\ has\ been\ a\ topic\ at\ recent\ Committee\ meetings.\ Presentations\ included\ brief\ descriptions\ of\ ongoing\ projects\ in\ the\ Major\ Research\ Equipment\ (MRE)\ account,\ projects\ proposed\ for\ MRE\ funding\ in\ FY\ 2001,\ and\ potential\ future\ projects.\ There\ was\ also\ a\ presentation\ and\ discussion\ on\ proposed\ changes\ in\ the\ definition\ of\ infrastructure.^

^The\ committee's\ final\ item\ of\ business\ was\ a\ presentation\ on\ planning\ for\ the\ initiative\ on\ Information\ Technology\ for\ the\ Twenty-first\ Century\ (IT2).\ ^

**c. ^Task\ Force\ on\ the\ Environment\ (TFE)^**

^Dr.\ Jane\ Lubchenco\ said\ that\ the\ report\ of\ the\ Task\ Force\ on\ the\ Environment\ is\ nearing\ completion,\ and\ members\ will\ be\ receiving\ a\ copy\ for\ comment.\ The\ task\ force\ intends\ to\ bring\ a\ final\ report\ to\ the\ Board\ at\ the\ July\ NSB\ meeting\ for\ approval.^

**^g.^^\ ^^Science\ and\ Engineering\ Indicators\ (SEI)^**

^Ms.\ Jennifer\ Bond\ led\ a\ discussion\ of\ external\ peer\ review\ for\ ^*^S\ &\ E\ Indicators-2000^*^.\ Dr.\ William\ Blanpied\ briefed\ the\ committee\ on\ the\ draft\ of\ ^*^Chapter\ 1-Science\ and\ Technology\ in\ Times\ of\ Transition:\ the\ 1940^^'^^s\ and\ 1990^^'^^s,\ ^*^including\ comments\ received\ from\ external\ reviewers.\ The\ subcommittee\ recommended\ that\ more\ information\ be\ provided\ on\ ^*^Science\ in\ the\ National\ Interest^*^[\ ]{.underline}and\ the\ Ehlers\ Report.\ Also\ discussed\ were\ possible\ ways\ to\ incorporate\ into\ Chapter\ 1\ more\ of\ the\ actual\ progress\ in\ selected\ areas\ of\ basic\ scientific\ research.\ SRS\ staff\ is\ investigating\ possibilities,\ which\ could\ include\ coverage\ of\ Nobel\ Prize\ winning\ areas\ of\ research.\ ^

^The\ report\ ^*^Women,\ Minorities,\ and\ Persons\ with\ Disabilities\ in\ Science\ and\ Engineering:\ 1998^*^\ (NSF\ 99-338)\ (released\ on\ May\ 6)\ was\ provided\ to\ Board\ members.\ The\ report\ documents\ both\ short-\ and\ long-term\ trends\ in\ the\ participation\ of\ women,\ minorities,\ and\ persons\ with\ disabilities\ in\ science\ and\ engineering\ education\ and\ employment.^

**h. ^International\ S&E\ Issues\ (ISE)^**

^The\ Task\ Force\ on\ International\ Science\ and\ engineering\ Issues\ approved\ a\ work\ plan\ that\ will\ make\ it\ possible\ to\ present\ a\ draft\ report\ to\ the\ NSB\ at\ its\ May\ 2000\ meeting.\ An\ initial\ information\ gathering\ phase\ will\ be\ followed\ by\ hearings.\ The\ first\ hearing\ will\ be\ scheduled\ for\ July\ 30,\ coinciding\ with\ the\ next\ NSB\ meeting,\ on\ the\ theme,\ "modes\ of\ interaction".\ Due\ to\ the\ absence\ of\ several\ task\ force\ members,\ no\ decision\ was\ made\ on\ specific\ dates\ for\ future\ hearings.^

^The\ task\ force\ reviewed\ other\ studies\ relating\ to\ international\ S&E\ and\ discussed\ what\ the\ Task\ Force\ report\ should\ address.\ The\ task\ force\ decided\ to\ focus\ first\ on\ what\ should\ be\ done,\ and\ then\ on\ the\ context\ for\ implementation.\ Hearings\ with\ other\ U.S.\ Government\ agencies\ will\ pay\ special\ attention\ to\ how\ other\ agencies\ integrate\ international\ concerns\ with\ other\ programs.\ Hearings\ will\ be\ organized\ thematically,\ and\ the\ selection\ of\ speakers\ will\ represent\ a\ wide\ diversity\ of\ perspectives,\ including,\ for\ example,\ academia,\ industry,\ science\ counselors\ from\ foreign\ embassies\ and\ representatives\ of\ multilateral\ organizations.\ ^

**i. ^Ad\ Hoc\ Committee\ on\ Strategic\ S&E\ Policy\ Issues\ (SPI)\ ^**

^The\ committee\ heard\ a\ presentation\ from\ Dr.\ Bruce\ Don,\ Director\ of\ the\ Science\ and\ Technology\ Policy\ Institute\ at\ RAND,\ on\ the\ RaDiUS\ database\ as\ it\ might\ be\ employed\ for\ budget\ coordination\ and\ priority\ setting.\ ^

^Donna\ Fossum\ and\ David\ Trinkle\ from\ STPI\ provided\ a\ short\ demonstration\ of\ the\ RaDiUS\ database.\ They\ discussed\ with\ committee\ members\ the\ potential\ for\ using\ RaDiUS\ to\ measure\ the\ status\ and\ outputs\ of\ Federal\ research\ funding.\ The\ committee\ next\ discussed\ the\ scope\ of\ the\ study\ and\ agreed\ to\ a\ draft\ framework\ for\ the\ report\ on\ the\ first\ phase\ of\ the\ committee\'s\ work.\ A\ proposed\ timetable\ was\ discussed\ and\ accepted.^

^Members\ agreed\ to\ review\ the\ draft\ workplan\ distributed\ at\ the\ meeting\ and\ to\ submit\ their\ comments\ to\ the\ committee\'s\ Executive\ Secretary.^

**j. ^NSB\ 50^^th^^\ Anniversary\ Task\ Force^**

^Dr.\ Warren\ Washington\ reported\ in\ the\ absence\ of\ Vera\ Rubin,\ Chair,\ that\ the\ Task\ Force\ held\ a\ April\ 29,\ 1999\ conference\ call\ at\ which\ the\ Task\ Force\ approved\ (1)\ the\ statement\ of\ work\ for\ a\ commemorative\ report\ on\ the\ 50th\ anniversary\ of\ the\ NSB.\ The\ commemorative\ will\ be\ written\ by\ a\ science\ journalist\ and\ will\ include\ a\ celebration\ of\ the\ Board's\ accomplishments\ and\ showcase\ the\ returns\ on\ the\ Nation's\ investment\ in\ research.\ The\ commemorative\ will\ be\ completed\ and\ distributed\ by\ December\ 2000;\ (2)\ the\ idea\ that\ a\ historian\ of\ science\ write\ the\ NSB\ historical\ monograph,\ which\ will\ take\ 2-3\ years\ to\ complete.\ The\ project\ will\ be\ initiated\ in\ FY\ 2000;\ (3)\ received\ an\ update\ on\ the\ naming\ of\ an\ asteroid\ to\ commemorate\ the\ NSF/NSB\ 50th\ anniversary.\ Vera\ Rubin\ is\ working\ with\ Carolyn\ Shoemaker\ to\ obtain\ approval\ of\ a\ proposed\ name.\ In\ the\ absence\ of\ that\ approval,\ there\ will\ be\ a\ NSF-wide\ contest\ to\ name\ the\ asteroid;\ and\ (4)\ approved\ the\ location\ of\ the\ December\ 2000\ 50th\ anniversary\ celebration\ (at\ the\ Carnegie\ Institution\ of\ Washington)\ and\ the\ general\ concept\ of\ the\ event.\ ^

**^Other\ Business^**

^The\ Director\ announced\ that\ on\ May\ 6\ the\ Senate\ confirmed\ Dr.\ Chang-Lin\ Tien\ as\ a\ member\ of\ the\ National\ Science\ Board,\ and\ Dr.\ Joseph\ Bordogna\ as\ Deputy\ Director\ of\ the\ National\ Science\ Foundation.^

^\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\ ^

^Marta\ Cehelsky\ ^

^Executive\ Officer\ ^

^Attachment:\ [NSB-99-92]{.underline}^

### ^[NSB-99-92]{.underline}^

### ^Attachment\ to\ [NSB-99-90]{.underline}^

### ^[PROPOSED]{.underline}^

### ^[NATIONAL\ SCIENCE\ FOUNDATION]{.underline}^

### ^[POLICY\ STATEMENT\ on\ COST\ SHARING]{.underline}^

## ^DEFINITION^

^Cost\ sharing\ is\ defined\ in\ OMB\ Circular\ A-110.^[^1]^\ For\ NSF\ purposes,\ and\ consistent\ with\ A-110,\ it\ also\ includes\ and\ is\ synonymous\ with\ the\ term\ \"matching.\"\ For\ NSF,\ cost\ sharing\ should\ be\ used\ with\ reference\ only\ to\ quantifiable\ and\ auditable\ contributions\ from\ non-NSF\ (and\ non-Federal)\ sources\ to\ NSF-supported\ activities.\ In\ the\ case\ of\ in-kind\ contributions,\ a\ quantifiable\ and\ auditable\ value\ must\ be\ established.^

^NSF\ has\ a\ variety\ of\ informal\ ways\ in\ which\ it\ partners\ and\ leverages\ resources\ from\ other\ sources.\ While\ necessary\ and\ important\ in\ many\ programs,\ these\ do\ not\ constitute\ \"cost\ sharing\"\ as\ NSF\ defines\ the\ term.^

## ^POLICY^

^In\ accordance\ with\ Congressional\ requirements,\ NSF\ requires\ that\ each\ grantee\ share\ in\ the\ cost\ of\ NSF\ research\ projects\ resulting\ from\ unsolicited\ proposals.\ These\ requirements\ may\ be\ met\ by\ the\ recipient\ through\ cost\ sharing\ a\ minimum\ of\ one\ percent\ on\ the\ project\ or\ by\ cost\ sharing\ a\ minimum\ of\ one\ percent\ on\ the\ aggregate\ costs\ of\ all\ NSF-supported\ projects\ subject\ to\ the\ statutory\ requirements.\ The\ Grant\ Proposal\ Guide\ (GPG)(Sec.\ II.7.l)\ and\ the\ Grant\ Policy\ Manual\ (Sec.\ 330)\ provide\ additional\ information\ as\ to\ these\ requirements.^

^In\ addition\ to\ the\ statutory\ requirements,\ NSF\ can\ require\ cost\ sharing\ when\ we\ believe\ there\ is\ tangible\ benefit\ to\ the\ award\ recipient(s)\ (normally\ beyond\ the\ immediate\ term\ or\ scope\ of\ the\ NSF-supported\ activity).\ Benefit\ is\ defined\ in\ terms\ of\ capacity\ building,\ potential\ dollar\ revenues,\ time\ frames,\ or\ third\ party\ users.\ NSF-funded\ activities\ that\ are\ characterized\ by\ such\ benefits\ are\ awards\ for\ infrastructure-building\ purposes\ (instrumentation/equipment/\ centers/facilities)\ or\ for\ awards\ where\ there\ is\ clear\ potential\ to\ make\ profit\ or\ generate\ income\ (e.g.\ curriculum\ development).^

## ^PRINCIPLES^

^[NSF-Required\ (Non-Statutory)\ Cost\ Sharing]{.underline}^

^\ -NSF\ cost\ sharing\ requirements\ beyond\ the\ statutory\ requirement\ will\ be\ clearly\ stated\ in\ the\ program\ announcement,\ solicitation\ or\ other\ mechanism\ which\ generates\ proposals\ to\ the\ program.\ NSF-required\ cost\ sharing\ is\ considered\ an\ eligibility\ rather\ than\ review\ criterion.\ Language\ will\ be\ specific\ so\ that\ eligible\ institutions\ will\ understand\ the\ parameters\ within\ which\ cost\ sharing\ is\ expected.^

^\ -\ Requirements\ for\ cost\ sharing\ may\ take\ into\ account\ the\ type\ of\ institution,\ institution\ size,\ level\ of\ other\ research\ support,\ population\ served,\ etc.\ ^

^-\ Any\ negotiation\ with\ proposers\ as\ to\ the\ level\ or\ amount\ of\ NSF\ required\ cost\ sharing\ will\ occur\ either\ prior\ to\ the\ review\ process\ to\ establish\ the\ project's\ eligibility\ for\ consideration\ or\ after\ merit\ review\ has\ been\ completed\ to\ adjust\ cost\ sharing\ to\ the\ agreed-upon\ amount\ of\ the\ award.\ These\ negotiations\ will\ occur\ only\ within\ parameters\ stated\ in\ the\ covering\ program\ announcement\ or\ solicitation\ and\ in\ accordance\ with\ GPG\ \"bottom\ line\"\ guidance.^

^[Unsolicited\ Proposals]{.underline}^

^\ -For\ unsolicited\ research\ and\ education\ projects,\ only\ statutory\ cost\ sharing\ will\ be\ required.\ This\ includes\ all\ proposals\ submitted\ solely\ in\ response\ to\ the\ GPG.\ (Note:\ some\ programs\ have\ special\ \"flyers,\"\ for\ equipment/instrumentation\ proposals\ for\ example,\ which\ reference\ GPG\ requirements\ but\ have\ special\ provisions\ on\ cost\ sharing.\ For\ these\ purposes,\ such\ proposals\ are\ not\ submitted\ \"solely\"\ in\ response\ to\ the\ GPG.)^

^[Budget\ Negotiations]{.underline}^

^\ -In\ GPG\ proposals\ and\ all\ others\ not\ covered\ by\ special\ cost\ sharing\ requirements,\ NSF\ program\ officers\ must\ follow\ the\ current\ GPG\ guidance\ (III.C.)\ which\ states\ that\ they\ may\ discuss\ with\ principal\ investigators\ the\ \"bottom\ line\"\ award\ amount,\ but\ may\ not\ \[re\]negotiate\ or\ impose\ cost\ sharing\ or\ other\ institutional\ commitments.\ \"Bottom\ line\"\ funding\ amounts\ should\ be\ commensurate\ with\ the\ effort\ supported.^

^-In\ \"bottom\ line\"\ budget\ determinations,\ only\ those\ resources\ specifically\ included\ either\ as\ direct\ or\ facilities/administrative\ costs\ in\ the\ budget\ or\ formally\ proposed\ as\ cost\ sharing\ are\ assumed\ to\ be\ available\ for\ the\ project.\ They\ must\ be\ adequate\ to\ support\ the\ project.\ ^

^\ -In\ budget\ negotiations,\ any\ reduction\ of\ 10%\ or\ more\ from\ the\ amount\ proposed\ should\ be\ accompanied\ by\ a\ corresponding\ reduction\ in\ the\ scope\ of\ the\ project,\ unless\ the\ program\ officer,\ principal\ investigator,\ and\ institution\ clearly\ agree\ that\ the\ project\ as\ proposed\ can\ be\ carried\ out\ at\ a\ lesser\ level\ of\ support\ from\ NSF\ with\ no\ expectation\ of\ any\ uncompensated\ institutional\ contribution\ beyond\ that\ formally\ reflected\ as\ cost\ sharing.^

[^1]: ^OMB\ Circular\ A-110\ (May,\ 1996)\ sets\ forth\ Uniform\ Administrative\ Requirements\ for\ Grants\ and\ Agreements\ with\ Institutions\ of\ Higher\ Education,\ Hospitals,\ and\ Other\ Non-Profit\ Organizations.\ It\ defines\ cost\ sharing\ (Sec.\ .23)\ 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.\ The\ Circular\ goes\ on\ to\ prescribe\ parameters\ for\ establishing\ the\ value\ of\ recipient\ contributions\ of\ services\ and\ property,\ and\ buildings\ or\ land.^