NISTIR 6099A 

ATP Eligibility Criteria for 

Foreign-Owned, U.S.-Incorporated 

or U.S.-Organized Companies: 

Legislation, Implementation, and Results 

Connie K.N. Chang 

Supervisory Economist 

Economist Assessment Office 

Advanced Technology Program 

March 2004 

U.S. DEPARTMENT OF COMMERCE 

Donald L. Evans, Secretary 

TECHNOLOGY ADMINISTRATION 

Phillip J. Bond, Under Secretary of Commerce for Technology 

NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY 

Arden L. Bement, Jr., Director 

ATP Eligibility Criteria for U.S. Subsidiaries of Foreign-Owned Companies iii 

Abstract 

The U.S. Advanced Technology Program (ATP) invests directly in the growth of 

the nation’s economy by cost sharing with industry in the development of highrisk enabling technologies that form the basis for new and improved products, 

manufacturing processes, and services. ATP relies on U.S. companies to conceive 

and propose technology development projects, carry out and share the costs of 

the research of awarded projects, help disseminate new knowledge gained, and 

make further investments in the development of the technology to bring it into 

the commercial marketplace. 

This report addresses the requirements set forth in ATP’s authorizing legislation 

that foreign-owned companies incorporated (or organized) in the United must 

meet as a condition of receiving ATP funding. The report provides information 

and statistics on foreign eligibility and participation as a resource for prospective 

applicants. Policymakers, government administrators, academicians, private 

individuals, law firms, think tanks, and others interested in the issue of foreign 

participation in publicly funded research and development programs may also 

find the report useful. 

Keywords 

Advanced Technology Program; foreign eligibility; foreign participation; foreign-owned 

companies; selection criteria. 
iv ATP Eligibility Criteria for U.S. Subsidiaries of Foreign-Owned Companies 

Acknowledgments 

I wish to thank my colleagues at ATP and the National Institute of Standards and 

Technology (NIST) for their help in preparing this publication. Kathleen 

McTigue, ATP economist, Cindy McKneely, ATP Information Specialist, and 

Rupali Goel, ATP summer intern, assisted in gathering the data on foreign 

participation in ATP. Stephanie Shipp, Director, ATP Economic Assessment 

Office, provided suggestions on all drafts of the report. Kathleen McTigue also 

provided helpful comments and suggestions on the tables and questions and 

answers section. Appreciation is extended to ATP reviewers Lorel Wisniewski, 

Supervisory Economist, ATP Economic Assessment Office; Brian Belanger, 

former Deputy Director, ATP; Bettijoyce Lide, ATP Competitions Manager; and 

Elissa Sobolewski, Acting Deputy Director, ATP. I would also like to 

acknowledge the contribution of the Washington Editorial Review Board reader, 

Susan Mentzer, Staff Attorney, Office of NIST Counsel. 

Sincere appreciation is extended to the many individuals who have contributed 

to the preparation of foreign eligibility findings since the inception of ATP in 

1990. They include past and present Science and Technology Counselors and 

other officials of foreign embassies located in Washington, D.C.; officials of 

foreign countries and managers of foreign counterpart programs; officials at the 

Office of the U.S. Trade Representative, the U.S. Patent and Trademark Office, 

and the U.S. Department of State; officials from U.S. embassies located abroad; 

scholars and academicians; industry representatives; and guest researchers and 

colleagues at NIST. In addition, the foreign eligibility findings benefited from 

materials available on the Internet, private resources including reports from Dun 

& Bradstreet and Hoovers, and public resources including surveys from the 

Bureau of Economic Analysis. 

Copies of the Report 

Paper copies of this report are available by mailing your request to Economic 

Assessment Office, Advanced Technology Program, NIST, 100 Bureau Drive, 

Mail Stop 4710, Gaithersburg, Maryland, 20899-4710, or by sending an email to 

atp-eao@nist.gov. An electronic copy of the report is available on ATP’s website 

at www.atp.nist.gov/eao/ir-6099/contents.htm. 
ATP Eligibility Criteria for U.S. Subsidiaries of Foreign-Owned Companies v 

Table of Contents 

Abstract ...............................................................................................................iii

Keywords ............................................................................................................iii

Acknowledgments.............................................................................................iv

Copies of the Report ..........................................................................................iv

Executive Summary.......................................................................................................vii

Organization of the Report............................................................................................. 1

1. Overview of the U.S. Advanced Technology Program ......................................... 3

Project Selection Criteria .................................................................................... 3

Eligibility Rules ................................................................................................... 4

Program Statistics ............................................................................................... 5

2. ATP Project Selection Criteria and Process ............................................................. 7

3. Foreign Eligibility Requirements.............................................................................. 9

4. Implementation Procedures for a Foreign Eligibility Finding ........................... 11

Identifying Foreign-Owned Companies........................................................ 11

Situations That Trigger a Foreign Eligibility Finding.................................. 11

Who Performs the Foreign Eligibility Finding ............................................. 12

Sources of Information in Preparing a Foreign Eligibility Finding ........... 12

Positive and Negative Findings...................................................................... 14

5. Foreign-Owned Participants in ATP Projects ....................................................... 15

Table 1. Foreign-Owned, U.S.-Incorporated (or Organized) Companies in Active 

and Completed ATP Projects ....................................................................................... 17

Table 2. Active and Completed ATP Projects Involving Foreign-Owned, U.S.-

Incorporated (or Organized) Companies ................................................................... 21

6. Questions and Answers on Foreign Eligibility and Participation ..................... 31

7. ATP Contact Information......................................................................................... 35

References ....................................................................................................................... 37
vi ATP Eligibility Criteria for U.S. Subsidiaries of Foreign-Owned Companies 

Appendix A. The ATP Statute..................................................................................... 39

Appendix B. The ATP Rule: 15 C.F.R. Part 295........................................................ 45

About the Advanced Technology Program ............................................................... 59
ATP Eligibility Criteria for U.S. Subsidiaries of Foreign-Owned Companies vii 

Executive Summary 

The Advanced Technology Program (ATP) helps U.S. companies accelerate the 

development and commercialization of highly innovative technologies with 

strong potential for generating broad-based economic benefits for the nation. 

ATP multiyear awards are made to individual companies and to joint research 

and development ventures through a highly competitive, merit-based, peerreviewed selection process. 

U.S.-owned companies are eligible to receive ATP funding. Companies 

incorporated (or organized) in the United States with a parent company 

incorporated in another country (i.e., companies that are majority-owned or 

majority-controlled by individuals who are not citizens of the United States) are 

also eligible to receive ATP funding, provided additional requirements are met. 

Foreign-owned companies or organizations that are located abroad are not 

eligible to receive ATP funding as direct participants, but may receive ATP 

funding as subcontractors on a case-by-case basis. U.S.-owned companies 

incorporated outside the United States are generally not eligible to receive ATP 

funding as direct participants, except on a case-by-case basis. 

ATP bases its funding decisions on how well the project proposal addresses the 

two main selection criteria: (1) scientific and technological merit and (2) 

potential for broad-based economic benefits to the United States. Regardless of 

the country of ownership of the participating companies, projects must score 

high against the two selection criteria to receive ATP funding. 

This report addresses the four additional eligibility requirements that foreignowned companies must meet as a condition of funding. According to ATP’s 

authorizing legislation, for an award to be given to a foreign-owned company, 

the Secretary of Commerce (or the Secretary’s designee) must find that: 

(1) The company’s participation in the ATP project is in the economic 

interest of the United States; 

The country of incorporation of the foreign parent provides all of the following: 

(2) Opportunities to U.S.-owned companies comparable to those 

provided to any other company to participate in government-funded 

programs similar to ATP; 
viii ATP Eligibility Criteria for U.S. Subsidiaries of Foreign-Owned Companies 

(3) Local investment opportunities to U.S.-owned companies comparable 

to those provided to any other company; and 

(4) Adequate and effective protection of intellectual property rights of 

U.S.-owned companies. 

Program implementation of this statutory requirement is carried out by the 

Director of ATP, the Secretary of Commerce’s designee, who bases the 

determination of a foreign-owned company’s eligibility to receive an award on 

evidence gathered from a number of sources. 

In implementing its legislative mandate, ATP initiates a foreign eligibility finding 

in situations where a project selected as a semifinalist involves a foreign-owned 

company, or a foreign-owned company seeks to join as a participant in an 

existing ATP joint venture project. In addition, a foreign eligibility finding is 

initiated when a project participant experiences a change in ownership and 

becomes majority-owned or majority-controlled by non-U.S. citizens and wishes 

to continue its participation in the project. 

Through September 2003, ATP has carried out 106 foreign eligibility findings. Of 

these, 73 findings were for companies whose projects were selected as finalists 

for awards. The remaining findings were for companies seeking to join existing 

projects or to continue participating in ATP projects after experiencing a change 

in their ownership. To date, only two foreign eligibility findings have been 

negative. 

Of the 709 projects in ATP’s portfolio, 64 active and completed projects involve 

80 participants that are foreign-owned, U.S.-incorporated or U.S.-organized 

companies. Foreign-owned companies participate in less than 10% of ATP 

projects; 49 of the 207 joint venture projects and 15 of the 502 single-company 

projects. These 80 participants represent 75 foreign-owned companies from 15 

different countries. A few of these companies participate in more than one 

project. 
ATP Eligibility Criteria for U.S. Subsidiaries of Foreign-Owned Companies 1 

Organization of the Report 

Chapter 1 of the report gives an overview of ATP to provide readers with a 

general understanding of the goals of the program and an awareness of the 

number of projects and kinds of technologies that have received funding to date. 

Chapter 2 discusses the published project selection criteria and process that 

apply to all participating companies—regardless of country of ownership. 

Chapter 3 lays out the additional eligibility requirements that foreign-owned 

applicants and the countries in which their parent companies are incorporated 

must meet. How ATP identifies foreign-owned companies and situations that 

lead to a foreign eligibility finding are discussed. 

Chapter 4 describes the procedures for implementing the foreign eligibility 

finding process and covers how foreign-owned companies are identified, 

situations that trigger a foreign eligibility finding, who performs the finding, the 

sources of information used, and rules on what constitutes a positive or negative 

foreign finding. 

Chapter 5 provides data on the participation of foreign-owned companies in 

ATP-funded projects. 

Chapter 6 uses a question and answer format to address common questions ATP 

has received on foreign eligibility and participation. 

Chapter 7 provides contact information for ATP. 

ATP Eligibility Criteria for U.S. Subsidiaries of Foreign-Owned Companies 3 

1. Overview of the U.S. Advanced Technology 

Program 

Created in 1988 and made operational in 1990,1 ATP invests directly in the 

growth of the nation’s economy by cost sharing with industry in the 

development of high-risk enabling technologies. Once developed, these 

technologies are expected to form the basis for new and improved products, 

manufacturing processes, and services. The goal of ATP’s cost-shared 

investment is to help U.S. companies accelerate the creation and 

commercialization of highly innovative technologies with strong potential for 

generating broad-based economic benefits for the nation. These benefits are 

expected to extend significantly beyond the direct benefits to companies 

receiving awards. 

ATP multiyear awards are made to individual companies and to joint research 

and development (R&D) ventures through a highly competitive, merit-based, 

peer-reviewed selection process. 

Project Selection Criteria 

ATP relies on U.S. companies to conceive and propose technology development 

projects, carry out the research of funded projects, and share in the costs. 

Companies seeking financial assistance from ATP for research projects likely to 

score well against ATP’s published selection criteria are urged to write and 

submit proposals. The two main selection criteria2 are scientific and 

technological merit, and potential for broad-based economic benefits to the 

United States. 

ATP emphasizes integrated planning across all aspects of a project by 

encouraging participants to form a team that includes project staff who will carry 

out the development of the technology and others who will be responsible for 

 

1Congress created the Advanced Technology Program in the Omnibus Trade and 

Competitiveness Act of 1988 (P.L. 100-418), codified in Title 15 of the United States Code, 

Section 278n (15 U.S.C. 278n), and amended in the American Technology Preeminence 

Act of 1991 (P.L. 102-245). The U.S. Department of Commerce’s National Institute of 

Standards and Technology was charged with administering the program. The ATP 

Statute, the program’s authorizing legislation, is available in Appendix A of this report. 

2See the latest ATP Proposal Preparation Kit (February 2004) for more details on 

each of the selection criteria (www.atp.nist.gov). 
4 

1. Overview of the U.S. Advanced Technology Program 

the eventual commercialization of the proposed technology. Applicants are 

asked to provide a detailed research plan and a plan for commercialization of 

developed technologies. Although funding is only provided for research 

activities, ATP requires a preliminary plan for downstream activities such as 

marketing, production, and distribution for at least one potential application of 

each technology proposed to be developed during the project. ATP encourages 

applicants to work with customers or end-users as early as possible. If 

companies successfully complete their research projects, they—or their strategic 

partners or licensees—are expected to undertake subsequent commercialization 

activities with private sector or other sources of funds and to promote the 

diffusion of the technologies for broader benefits to the U.S. economy. 

Eligibility Rules 

Proposals are accepted only in response to competitions announced in the Federal 

Register. Competitions are open to proposals in all areas of technology. 

U.S.-owned companies are eligible to receive ATP funding. Companies 

incorporated (or organized) in the United States with a parent company 

incorporated in another country (i.e., companies that are majority-owned or 

majority-controlled by individuals who are not citizens of the United States) are 

also eligible to receive ATP funding, provided additional requirements are met. 

Foreign-owned companies or organizations that are located abroad are not 

eligible to receive ATP funding as direct participants, but may receive ATP 

funding as subcontractors on a case-by-case basis. U.S.-owned companies 

incorporated outside the United States are generally not eligible to receive ATP 

funding as direct participants, except on a case-by-case basis. 

Small and medium companies applying as single-company applicants are 

eligible to receive up to $2 million in ATP support for direct project costs over 

three years. They are responsible for covering all of their indirect/overhead costs. 

Large companies applying as single-company applicants (currently, businesses 

with revenues greater than $3.043 billion) must cover a minimum of 60% of the 

yearly total project costs (direct plus indirect costs) and can receive ATP support 

over three years for direct project costs up to $2 million. 

Joint venture proposers—comprised of a minimum of two separately owned forprofit companies both performing the research and sharing in the costs of the 

research, often in combination with other companies, universities, and nonprofit 

research laboratories as additional partners—can propose projects of any size for 
ATP Eligibility Criteria for U.S. Subsidiaries of Foreign-Owned Companies 5 

up to five years of funding. They must cover more than 50% of the yearly total 

project costs (direct plus indirect costs). 

Program Statistics 

With a congressional appropriation of $10 million, ATP held its first competition 

in 1990 and selected 11 projects for awards. Since 1990, ATP has received 6,054 

applications submitted to 43 competitions and selected 709 projects for awards; 

71% were single company awards (502 out of 709) and 29% were joint venture 

awards (207 out of 709). ATP has awarded $2.114 billion in funding, and industry 

has provided $1.987 billion in cost-shared funds. There are more than 1,433 

participants involved in the 709 projects, including firms of all sizes, universities, 

and other research organizations—not counting an equal number of 

subcontractors and informal partners and collaborators. 

Nearly two out of three awards have gone to individual small businesses or to 

joint ventures led by a small business, located across 42 states. Nearly half of all 

small businesses participating in ATP projects had fewer than 20 employees. 

Over 160 universities and academic institutions are involved in over half of the 

ATP projects to date, either as subcontractors to private companies or as 

members of industry-led joint ventures. Almost 85% of ATP award recipients 

are engaged in collaborations with other companies, universities, federal 

laboratories, and nonprofit organizations. 

ATP-funded organizations carry out research in many technology areas. Of the 

709 projects funded to date: 

25% involve electronics/computer hardware/communications; 

23% involve information technology; 

21% involve advanced materials and chemicals; 

20% involve biotechnology; and 

11% involve manufacturing (discrete). 

Note that these categories are not mutually exclusive. For example, an ATP 

project might involve manufacturing of advanced materials or chemicals. Also 

note that these categories only capture broad areas of research; the breadth of 

technologies covered in advanced materials and chemicals projects, for example, 

include separations/membranes, materials processing, nanotechnology, material 
6 

1. Overview of the U.S. Advanced Technology Program 

interfaces, combinatorial methods, metabolic engineering/catalysts, and chemical 

processing sensors. 
ATP Eligibility Criteria for U.S. Subsidiaries of Foreign-Owned Companies 7 

2. ATP Project Selection Criteria and Process 

This section provides ATP’s published criteria—which apply to all participating 

companies regardless of country of ownership—for selecting proposed 

technology development projects. This information is intended to serve as 

background and context for a discussion of additional eligibility requirements 

that apply only to foreign-owned companies. ATP bases its selection of project 

proposals on how well each addresses the two main selection criteria established 

in the ATP Rule.3 

Proposals are evaluated against published selection criteria via a gated selection 

process. ATP selection decisions are based on how well each proposal addresses 

two main selection criteria4: 

1. scientific and technological merit (Gate 1), and 

2. potential for broad-based economic benefits to the United States (Gate 2). 

Scientific and technological merit is determined by assessing innovations in the 

technical development; technical risk of the project and evidence of scientific 

feasibility; and the quality of the detailed technical plan. 

Potential to deliver broad-based economic benefits to the United States is 

assessed based on the project’s potential to deliver national economic benefits; 

the need for ATP funding; and the pathway to economic benefits. ATP-funded 

projects are expected to generate net economic benefits for the United States. 

Although companies are not forbidden from carrying out research and other 

activities in other countries, proposals with substantial research conducted in 

non-U.S. sites will tend to receive low scores and may be judged as 

noncompetitive in the selection process. This point holds equally for all 

projects—whether proposed by U.S.-owned companies with foreign subsidiaries 

 

3The ATP Rule guides the agency’s implementation of the ATP Statute, its 

authorizing legislation. See Appendix B. 

4Additional details on the selection criteria can be found in the ATP Proposal 

Preparation Kit (February 2004) on the ATP website (www.atp.nist.gov); and in the ATP 

Rule under Sec. 295.6, Criteria for Selection, which can be found in Appendix B of this 

report. In addition, for each announced competition, ATP holds conferences with 

prospective applicants around the country to present the selection criteria and 

application procedures.
8 2. ATP Project Selection Criteria 

or affiliates, or by foreign-owned, U.S.-incorporated or U.S.-organized companies 

with a parent company incorporated in another country. 

Project proposals submitted to ATP are evaluated against these two selection 

criteria in a gated process. Proposals judged to have sufficient merit with regard 

to both criteria pass gates 1 and 2, and are designated “semifinalist proposals.” 

Semifinalists are invited to ATP for an oral review of their proposals (Gate 3). 

After the oral review process, proposals determined to have high merit, based on 

all information received, are considered “finalists” and are recommended to the 

Selecting Official for funding. From the list of finalists, the Selecting Official 

selects funding recipients based on availability of funds, adherence to ATP 

selection criteria, and appropriate distribution of funds among technologies and 

their applications. Proposals selected by the Selecting Official proceed to Gate 4

for final award processing and issuance of the ATP award. 

Regardless of the country of ownership of the participating companies, projects 

must score high against the two selection criteria to receive an ATP award. 
ATP Eligibility Criteria for U.S. Subsidiaries of Foreign-Owned Companies 9 

3. Foreign Eligibility Requirements 

Companies incorporated or organized in the United States with a parent 

company incorporated in another country must satisfy not only the project 

selection criteria outlined in Chapter 2 that apply to all companies, but also four 

additional eligibility requirements as specified in the ATP Statute and described 

below.5 

The Secretary of Commerce (or the Secretary’s designee) must find that: 

the company’s participation is in the economic interest of the United 

States. 

This requirement is partly covered under the potential for broad-based economic 

benefits to the United States project selection criterion, which is one of two 

project selection criteria that all funded projects must pass, as described earlier. 

In the project selection criterion, the emphasis is on the project’s potential for 

providing net broad-based economic benefits to the United States. The emphasis 

in the foreign eligibility finding is on the effect on project outcomes of the 

participation of the foreign-owned company. It is possible that a particular 

foreign-owned company’s participation in a joint venture project is not in the 

economic interest of the United States, even if the project scored high on broadbased economic benefits to the United States. In such a case, the joint venture 

may be given the opportunity to replace the ineligible foreign member and go 

forward as an award recipient. 

The next three eligibility requirements pertain not to the project or the company, 

but rather to the national policies of the country in which the parent company is 

incorporated; consequently, these are generally beyond the control of the 

individual company applicant. 

 

5The terms under which foreign-owned companies are eligible to participate in 

ATP were established by Congress in the Omnibus Trade and Competitiveness Act of 

1988 (P.L. 100-418, codified in 15 U.S.C. 278n), as later amended by the American 

Technology Preeminence Act of 1991 (P.L. 102-245) to add Sec (d) (9) (B) (ii), and are 

contained in the ATP Statute, the program’s authorizing legislation (see Appendix A). 
10 3. Foreign Eligibility Requirements 

The Secretary of Commerce (or the Secretary’s designee) must find that: 

the foreign parent’s country of incorporation provides U.S.-owned 

companies opportunities in the foreign parent country comparable to 

those provided to any other company to participate in programs similar 

to ATP. 

This requirement looks to whether similar programs to ATP exist in the parent 

country and whether U.S.-owned firms are allowed to participate under the same 

conditions as domestic firms. Rules on eligibility and participation of U.S. firms 

are gathered. 

The Secretary of Commerce (or the Secretary’s designee) must find that: 

the foreign parent’s country of incorporation provides U.S.-owned 

companies local investment opportunities in the foreign parent country 

comparable to those provided to any other company. 

This requirement focuses on the opportunities for U.S.-owned companies to 

make investments in the parent country under the same conditions as domestic 

firms, including mergers, acquisitions, and other forms of investment in all 

sectors of the economy. Laws, regulations, and any informal barriers to entry are 

examined. 

The Secretary of Commerce (or the Secretary’s designee) must find that: 

the foreign parent’s country of incorporation provides adequate and 

effective protection in the foreign parent country of the intellectual 

property rights of U.S.-owned companies. 

This requirement pertains to whether the parent country adequately and 

effectively protects the intellectual property rights (i.e., patents, trademarks, 

copyrights) of U.S.-owned companies. Enforcement procedures and process for 

dispute settlement of infringement cases are considered. 

To be clear, for a foreign eligibility finding to be determined positive, each of the 

four foreign eligibility requirements must be met. If one of the requirements is 

found to be negative, the finding will be negative. If one requirement falls short, 

but another requirement is more than adequate, the finding will still be negative. 

A positive foreign eligibility finding means that the applicant is determined 

eligible to participate in an ATP project, provided all other ATP criteria—

common to all ATP award candidates—are met. 
ATP Eligibility Criteria for U.S. Subsidiaries of Foreign-Owned Companies 11 

4. Implementation Procedures for a Foreign 

Eligibility Finding 

Identifying Foreign-Owned Companies 

When submitting their Gate 1 proposals, applicants are asked to identify if they 

are foreign-owned on either Form 1262 for single-company proposals or Form 

1263 for joint venture proposals.6 Proposers are asked to state whether they have 

a parent company located outside the United States, if they are majority-owned 

by individuals who are not citizens of the United States, or if they are subject to 

control by individuals who are not citizens of the United States. 

Proposers are also asked to fill out the “Foreign-Owned Company 

Questionnaire” found in the Exhibits section of the ATP Proposal Preparation Kit

(February 2004) and submit this form in their Gate 2 proposals. 

Situations That Trigger a Foreign Eligibility Finding 

The following situations trigger an initiation of a foreign eligibility finding: 

a foreign-owned company incorporated or organized in the United States 

proposes to lead or participate in a project selected as a semifinalist in an 

ATP competition; 

a foreign-owned company incorporated or organized in the United States 

seeks to join an existing ATP project; or 

a U.S.-owned company that is already leading or participating in a project 

experiences a change in ownership and becomes majority-owned or 

 

6These forms can be found in the ATP Proposal Preparation Kit and on the ATP 

website (www.atp.nist.gov). The kit also contains background material, proposal cover 

sheets, other required forms, and guidance on the preparation of proposals to ATP. The 

currently available version is dated February 2004 and reflects all changes to the ATP 

Statute and the ATP Rule through that date. The ATP Statute and ATP Rule are also 

available in Appendices A and B, respectively, of this report. An electronic version of the 

kit is available on the ATP website. 
12 4. Implementation Procedures for a Foreign Eligibility Finding 

majority-controlled by non-U.S. citizens and wishes to continue its 

participation in the project.7

A foreign eligibility finding is initiated under any one of the above situations to 

ensure that the foreign-owned company meets the four foreign eligibility 

requirements specified in the ATP Statute, and is carried out at or near to the 

time of the triggering event. 

Who Performs the Foreign Eligibility Finding 

Congress provided the Secretary of the Department of Commerce with the 

authority to determine the eligibility of foreign-owned companies for receiving 

ATP awards. This authority was subsequently delegated to the Director of NIST, 

who in turn delegated it to the Director of ATP. The Director of ATP bases the 

foreign eligibility finding on evidence gathered from a number of sources. 

Sources of Information in Preparing a Foreign Eligibility Finding 

Note that under each of the situations listed above, the project will already have 

scored high on the proposal selection criteria covered in Chapter 2. When a 

foreign eligibility finding is initiated, additional information is collected from a 

number of sources, as discussed under each eligibility requirement below. 

Eligibility Requirement 1: Participation of the Company Is in the Economic 

Interest of the United States 

Whether a project is in the economic interest of the United States is largely based 

on the project selection criterion, potential for broad-based economic benefits to 

the United States. To determine if participation of a particular foreign-owned 

company in the project is in the economic interest of the United States, 

information provided in the Gate 1 proposal is reviewed. Additional information 

that addresses the first foreign eligibility requirement should be provided in the 

Gate 2 proposal (see “Foreign-Owned Company Questionnaire” in the Appendix 

of the ATP Proposal Preparation Kit, February 2004) which will be reviewed and 

scrutinized to take into account the likely impact of foreign ownership on the 

project’s potential to deliver benefits to the United States, including evidence of 

the following: 

 

7 A change in ownership must be reported to the NIST Grants Officer within 30 

days, as stipulated in the terms and conditions of the cooperative agreement signed 

between the award recipient and ATP. 
ATP Eligibility Criteria for U.S. Subsidiaries of Foreign-Owned Companies 13 

the company has a U.S. location(s) for the project’s research; 

the company is making investments in research, development, and 

manufacturing in the United States; 

the company agrees to promote the manufacture in the United States of 

any products resulting from the ATP-supported technology; 

the company has anticipated positive effects on U.S. employment and on 

sources of supply; and 

other aspects relevant to the project’s potential to produce net broadbased benefits to the U.S. economy. 

To clarify and/or supplement information in the Gate 1 and Gate 2 proposals, the 

applicant may be asked to submit additional information to satisfy this 

requirement. Information is also obtained from other sources, including Dun & 

Bradstreet and Hoovers. 

Eligibility Requirement 2: Comparable Opportunities in the Parent Country for 

U.S. Firms to Participate in Programs Similar to ATP 

Evidence to satisfy eligibility requirement 2—whether the country of 

incorporation of the foreign parent affords U.S.-owned companies opportunities 

comparable to those afforded to any other company to participate in programs 

similar to ATP—is derived primarily from analysis of similar program(s) in the 

parent country. This information is obtained from program officials, embassies, 

other official government sources, and public information. 

Eligibility Requirement 3: Comparable Local Investment Opportunities in the 

Parent Country for U.S. Firms 

Evidence to satisfy eligibility requirement 3—whether the country of 

incorporation of the foreign parent affords U.S.-owned companies local 

investment opportunities—is based primarily on information supplied by the 

Office of the U.S. Trade Representative through its annual National Trade Estimate

report, its annual “Special 301” Fact Sheet, and updates from desk officers. 

Additional information on barriers to investment and trade may also be obtained 

from other federal agencies. 

Eligibility Requirement 4: Adequate and Effective Protection in the Parent 

Country of Intellectual Property Rights of U.S. Firms 
14 4. Implementation Procedures for a Foreign Eligibility Finding 

Evidence to satisfy eligibility requirement 4—whether the country of 

incorporation of the foreign parent provides adequate and effective protection of 

U.S.-owned intellectual property rights—is based primarily on information 

supplied by the Office of the U.S. Trade Representative through its annual 

National Trade Estimate report, its annual “Special 301” Fact Sheet, and updates 

from desk officers. Note that this provision is stated in absolute terms and is not 

relative to how other companies are treated. Additional information may be 

sought from other organizations including the U.S. Patent and Trademark Office, 

the U.S. Department of State, and U.S. embassies abroad. 

Positive and Negative Findings 

For a foreign eligibility finding to be determined positive, each of the four 

additional eligibility requirements must be met. A positive foreign eligibility 

finding means that the applicant is determined eligible to participate in an ATPsupported project, provided all other requirements—common to all ATP award 

candidates—are met. 

National policies affecting opportunities for U.S. companies to participate in 

similar R&D programs, opportunities for foreign investment in the foreign 

country, or the adequate and effective protection of intellectual property rights 

may change over time. Therefore, a negative decision with respect to eligibility 

requirements 2 through 4 does not preclude a positive finding in the future for 

the country in question. Similarly, a positive finding would not preclude a 

negative finding in the future for the country in question. It is ATP’s policy to 

prepare a foreign eligibility finding at the time of a triggering event. ATP does 

not determine in advance the countries that meet or do not meet the countryspecific foreign eligibility requirements. 
ATP Eligibility Criteria for U.S. Subsidiaries of Foreign-Owned Companies 15 

5. Foreign-Owned Participants in ATP Projects 

From its inception in 1990 through September 2003, ATP has completed 106 

foreign eligibility findings. Of these, 73 findings were for companies whose 

projects were selected as finalists for awards. The remaining findings were for 

companies seeking to join existing projects or to continue participating in 

existing ATP projects after experiencing a change in their ownership status. 

The total number of findings does not correspond directly to the number of 

projects in which U.S. subsidiaries of foreign-owned companies sought 

participation. There are a few instances in which joint venture projects had more 

than one foreign-owned company seeking involvement, each requiring a 

separate foreign eligibility finding. Also, for a variety of reasons, the total 

number of findings does not correspond directly to the number of foreign-owned 

companies currently participating in projects. 

The total number of findings includes findings for foreign-owned, U.S.-

incorporated or U.S.-organized companies with parent companies incorporated 

in another country that (i) had positive findings, officially joined the projects, and 

are still currently participating in active projects; (ii) had positive findings, 

officially joined the projects, but have now completed their research; (iii) had 

positive findings, but for various reasons never participated in the project; (iv) 

had positive findings, but decided to take an informal role in projects, as a 

subcontractor, for instance; (v) had positive findings, but were in projects that 

did not receive an award for other reasons, or that were cancelled before the 

project started; (vi) had negative findings, and were not allowed to participate; 

(vii) were determined not to be U.S.-incorporated or U.S.-organized, and/or were 

determined not to have a parent company in another country, and were therefore 

ineligible to participate; or (viii) became majority U.S.-owned during the life of 

the project. 

Only 2 of the 106 foreign eligibility findings carried out to date were negative. 

Both of these findings were for Japanese-owned firms; their failure to pass was 

due to the national policies of Japan at the time of the findings and not because of 

(or due to) any shortcomings of the companies. 

Of the 709 projects in ATP’s portfolio, 64 active and completed projects involve 

80 participants that are foreign-owned, U.S.-incorporated (or organized) 

companies. Foreign-owned companies participate in less than 10% of total ATPfunded projects; 49 out of a total of 207 joint venture projects and 15 of 502 

single-company projects. These 80 participants represent 75 foreign-owned 
16 5. Foreign-Owned Participants in ATP Projects 

companies from 15 different countries. A few of these companies are 

participating in more than one project. Specifics are provided in Tables 1 and 2: 

Table 1 lists foreign-owned companies participating in active and 

completed projects by their parent country. 

Table 2 lists active and completed projects involving foreign-owned 

companies by the fiscal year in which ATP issued an award to the project. 
ATP Eligibility Criteria for U.S. Subsidiaries of Foreign-Owned Companies 17 

Table 1. Foreign-Owned, U.S.-Incorporated (or 

Organized) Companies in Active and Completed 

ATP Projects 

(By Parent Country, 1990 Through September 2003) 

This table shows active and completed ATP projects that involve foreign-owned 

companies. The names of the companies and their parent companies are at the 

time of the foreign eligibility finding. Note that foreign-owned participants that 

have since become U.S. owned or that dropped out of the project before it was 

completed are not included in the table below. Note that some of the companies 

listed have participated in more than one project, but they appear only once in 

this table. Note also that (*) means the subsidiary was owned at different times 

by different foreign parent companies and therefore two foreign eligibility 

findings were carried out, and (**) means the subsidiary was owned jointly by 

two parent companies from different countries at the time of the finding. 

Country U.S. Subsidiary Parent Company 

Austria Striko Dynard Furnace Corporation RHI AG 

Canada Alcan Aluminum Corporation Alcan Aluminum 

Corporation 

Decoma International of America, Inc. Magna International, Inc. 

Northern Telecom, Inc. BCE, Inc. 

SAS Circuits, Inc. Coretec, Inc. 

Toromont Process Systems, Inc. Toromont Industries Ltd. 

Denmark * Genencor International, Inc. Danisco A/S 

Finland * Genencor International, Inc. Cultor Ltd. 

France Alcatel USA Sourcing LP Alcatel, Inc. 

 Comark Communications, Inc. [now 

Thomcast Communications, Inc.] 

Thomson SA 

 Copperweld Corporation IMETAL SA 

 Deneb Robotics, Inc. [now Delmia Corp.] Dassault Aviation Group 

 Elf Atochem North America, Inc. Societe Nationale Elf 

Aquitaine 

 Medal LP L’Air Liquide SA 

 Norton Diamond Film Compagnie de SaintGobain 

 Schneider Automation, Inc. Group Schneider 

 Thomson Consumer Electronics, Inc. Thomson SA 
18 Table 1 

Country U.S. Subsidiary Parent Company 

 Thomson Inc. Thomson SA 

Germany ASE Americas, Inc. RWE AG 

Cognis Corporation Henkel KgaA 

Daimler Chrysler Corporation Daimler Chrysler AG 

Giddings & Lewis, Inc. ThyssenKrupp AG 

H.C. Starck Bayer AG GmbH 

Henkel Corporation Henkel KgaA 

Lion Bioscience, Inc. Lion Bioscience, AG 

Loctite Corporation Henkel KgaA 

New Venture Gear, Inc. Daimler Chrysler AG 

Robert Bosch Corporation Robert Bosch Stiftung 

GmbH 

Siemens Westinghouse Power 

Corporation 

Siemens AG 

The Budd Company, Design Center 

[now ThyssenKrupp Budd] 

ThyssenKrupp AG 

The Budd Company, Technical Center 

[now ThyssenKrupp Budd] 

ThyssenKrupp AG 

Volkswagen of America, Inc. Volkswagen AG 

Israel Cognitens Cognitens Ltd. 

 Tecnomatix Technologies, Inc. Tecnomatix Technologies, 

Inc. 

Italy Autodie International Fiat SPA 

ComauPico Fiat SPA 

IdraPrince, Inc. Idra Partecipazioni SPA 

Progressive Tool and Industries 

Company, Inc. 

Fiat SPA 

Union Switch & Signal, Inc. IRI Istituto Ricostruzione 

Japan Dupont Teijen Films LLP Teijen Ltd. 

 Sumika Electronics Materials, Inc. Sumitomo Chemical 

Company Ltd. 

Mexico Seminis Vegetable Seeds, Inc. Savia SA 

Netherlands Berclain USA Ltd. [now Baan USA] Baan Company NV 

[became part of Invensys 

PLC, U.K.] 

 Eagle-Picher Technologies, LLC Granaria Holdings BV 
ATP Eligibility Criteria for U.S. Subsidiaries of Foreign-Owned Companies 19 

Country U.S. Subsidiary Parent Company 

 FEI Company Royal Philips Electronics 

NV 

 Philips Consumer Electronics North 

America 

Royal Philips Electronics 

NV 

 Philips Laboratories [now Philips 

Research] 

Royal Philips Electronics 

NV 

 Shell Development Company Royal Dutch Petroleum 

Company 

 Shell International Exploration and 

Production Technology Company 

Royal Dutch Petroleum 

Company 

Norway Ceramatec, Inc. Elken A/S 

Sweden ** ABB Lummus Global, Inc. Asea AB 

 Pharmacia Biotech, Inc. [now Amersham 

Biosciences] 

Pharmacia Biotech AB 

Switzerland ** ABB Lummus Global, Inc. Brown Boveri, Ltd. 

ABB High Power Semiconductors Asea Brown Boveri, Inc. 

ABB Vetco Gray, Inc. Asea Brown Boveri, Inc. 

Immerge BioTherapeutics, Inc. Novartis AG 

Osiris Therapeutics, Inc. MSC Regenos, Ltd. 

Valtronic USA, Inc. Valtronic, SA 

United 

Kingdom 

Amersham Pharmacia Biotech, Inc. [now 

Amersham Biosciences] 

Amersham PLC 

 Baan USA, Inc. Invensys PLC 

 BAE Systems, IESI, Inc. BAE Systems PLC 

 BP Amoco Corporation BP Amoco PLC 

 BP Chemical, Inc. The British Petroleum 

Company PLC 

 BP Oil The British Petroleum 

Company PLC 

 Fiberweb North America, Inc. [now BBA 

Nonwovens Simpsonville] 

BBA Group PLC 

 Maxygen, Inc. Glaxo Smith Kline PLC 

 Microscan Systems, Inc. Fairey Group PLC 

 Molecular Dynamics, Inc. [now 

Amersham Biosciences] 

Amersham PLC 

 National Starch and Chemical, Inc. Imperial Chemical 

Industries PLC 

 PIC USA, Inc. PIC International Group 

 Precitech, Inc. Precision Instruments 
20 Table 1 

Country U.S. Subsidiary Parent Company 

Holdings, Ltd. 

 Robotron Corporation Standard Chartered PLC 

 Smith Kline Beecham Corporation Glaxo Smith Kline PLC 

 United States Biochemical Corporation 

[now Amersham Biosciences] 

Amersham International 

PLC [now Nycomed 

Amersham PLC] 
ATP Eligibility Criteria for U.S. Subsidiaries of Foreign-Owned Companies 21 

Table 2. Active and Completed ATP Projects 

Involving Foreign-Owned, U.S.-Incorporated (or 

Organized) Companies 

(By Year of Award, 1990 Through September 2003) 

The following 65 active and completed ATP projects out of a total of 709 projects 

funded through September 2003 involve the participation of foreign-owned, U.Sincorporated (or organized) companies. This table presents only active and 

completed projects involving foreign-owned companies by the year in which the 

award was made and by project title. Note that no foreign-owned companies 

were funded prior to FY 1993. Also note that (*) means that the subsidiary or its 

parent company had a change in foreign ownership during the life of the project, 

and that (**) means that the subsidiary was owned jointly by two parent 

companies from different countries at the time of the finding. For more 

information on the projects, browse ATP’s homepage on www.atp.nist.gov. 

Project Title 

Project 

No. U.S. Subsidiary Parent Company Country 

Projects Funded in FY 2002–03 

Continuous Silicon 

Wafer Manufacturing 

00-00-

5016 

ASE Americas, Inc. RWE AG Germany 

Driving Your Car 

with Conventional 

Language 

00-00-

5416 

Robert Bosch 

Corporation 

Volkswagen of 

America, Inc. 

Robert Bosch 

Stiftung GmbH 

Volkswagen AG 

Germany 

Germany 

New Polymer 

Dielectrics for High 

Energy Density Film 

Capacitors 

00-00-

5495 

Dupont Teijen 

Films LLP 

Teijen Ltd. Japan 

Digital Body 

Development System 

00-00-

5521 

Autodie 

International 

ComauPico 

Cognitens 

Fiat SPA 

Fiat SPA 

Cognitens Ltd. 

Italy 

Italy 

Israel 

Video-Enhanced 

Residential ADSL 

Broadband 

Technology 

00-00-

5676 

Alcatel USA 

Sourcing LP 

Thomson Inc. 

Alcatel, Inc. 

Thomson SA 

France 

France 
22 Table 2 

Project Title 

Project 

No. U.S. Subsidiary Parent Company Country 

Projects Funded in FY 2001 

Biosecure ZeroExchange Shrimp 

Technology 

00-00-

4547 

PIC USA, Inc. PIC International 

Group 

United 

Kingdom 

Neural Regeneration 

with Mesenchymal 

Stem Cells 

00-00-

4814 

Osiris 

Therapeutics, Inc. 

MSC Regenos, Ltd. Switzerland 

Technologies for 

Target Assessment 

00-00-

4824 

Lion Bioscience, 

Inc. 

Lion Bioscience, AG Germany 

Projects Funded in FY 2000 

High Performance 

Composite Molecular 

Sieving Membranes 

00-00-

3968 

Medal LP L’Air Liquide SA France 

Advanced HBT 

Power Amplifier 

Technology for 

Broadband 

Communications 

Systems 

00-00-

4019 

Sumika Electronics 

Materials, Inc. 

Sumitomo 

Chemical Company 

Ltd. 

Japan 

High Reliability, Safe 

Rechargeable 

Lithium Ion Battery 

and Battery 

Management System 

00-00-

4050 

Valtronic USA, 

Inc. 

Valtronic, SA Switzerland 

Genetic Engineering 

Tools for Plant 

Breeders 

00-00-

4084 

Seminis Vegetable 

Seeds, Inc. 

Savia SA Mexico 

An Innovative 

Knowledge System 

for Rapid Expansion 

of Net Shape 

Manufacturing 

Industry via Powder 

Injection Molding 

00-00-

4113 

H.C. Starck Bayer AG GmbH Germany 

Genetic Modification 

of Swine for 

Transplantation 

Using Nuclear 

Transfer 

00-00-

4145 

Immerge 

BioTherapeutics, 

Inc. 

Novartis AG Switzerland 
ATP Eligibility Criteria for U.S. Subsidiaries of Foreign-Owned Companies 23 

Project Title 

Project 

No. U.S. Subsidiary Parent Company Country 

Cost Reduced 

Magnesium Die 

Castings Using 

Heated Runners 

00-00-

4334 

Striko Dynard 

Furnace 

Corporation 

Idra Prince, Inc. 

RHI AG 

Idra Partecipazioni 

SPA 

Austria 

Italy 

Projects Funded in FY 1999 

Bulk GaN and 

Homoepitaxial 

Device 

Manufacturing 

99-01-

2069 

BAE Systems, 

IESI, Inc. 

BAE Systems PLC United 

Kingdom 

Ceramic Matrix 

Composites for 

Advanced Engine 

Components 

99-01-

6058 

Siemens 

Westinghouse 

Power 

Corporation 

Siemens AG Germany 

Projects Funded in FY 1998 

Bone Regeneration 

Using Allogeneic 

Mesenchymal Stem 

Cells 

98-01-

0056 

Osiris 

Therapeutics, Inc. 

MSC Regenos, Ltd. Switzerland 

Hot Metal Gas 

Forming 

98-01-

0168 

Daimler Chrysler 

Corporation 

Copperweld 

Corporation 

Daimler Chrysler 

AG 

IMETAL SA 

Germany 

France 

Micro-Opto-ElectroMechanical Systems 

Manufacturing 

98-02-

0001 

Microscan 

Systems, Inc. 

Fairey Group PLC United 

Kingdom 

An Integrated 

Simulation 

Environment for 

Photonics 

Manufacturing 

98-02-

0024 

Northern Telecom, 

Inc. 

BCE, Inc. Canada 

DataPipe 98-02-

0061 

Precitech, Inc. Precision 

Instruments 

Holdings, Ltd. 

United 

Kingdom 

Advance Lithium 

Solid Polymer 

Battery Development 

98-03-

0057 

Eagle-Picher 

Technologies, LLC

Granaria Holdings 

BV 

Netherlands 

Whole Genome 

Shuffling: Rapid 

Improvement of 

Industrial Micro98-05-

0007 

Maxygen, Inc. Glaxo Smith Kline 

PLC 

United 

Kingdom 
24 Table 2 

Project Title 

Project 

No. U.S. Subsidiary Parent Company Country 

organisms 

Biosynthesis of 

Chemical 

Intermediates 

98-05-

0013 

Henkel 

Corporation 

Cognis 

Corporation 

Henkel KgaA 

Henkel KgaA 

Germany 

Germany 

Wafer Scale Applied 

Reworkable Fluxing 

Underfill for Direct 

Chip Attach 

98-06-

0008 

Loctite 

Corporation 

Henkel KgaA Germany 

Early Prototype 

Nongallium Ion 

Beam for 

Lithography and 

Wafer Manufacturing 

98-06-

0018 

FEI Company Royal Philips 

Electronics NV 

Netherlands 

Novel High 

Performance Water 

Level Reworkable 

Underfill Materials 

for Flip Chip 

Packaging 

98-06-

0030 

National Starch 

and Chemical, Inc.

Imperial Chemical 

Industries PLC 

United 

Kingdom 

Advanced Embedded 

Passives Technology 

98-06-

0054 

Northern Telecom, 

Inc. 

SAS Circuits, Inc. 

BCE, Inc. 

Coretec, Inc. 

Canada 

Canada 

Development of 

Solvent Compatible, 

Polymeric Membrane 

Systems for Liquid 

Separation 

98-07-

0006 

Smith Kline 

Beecham 

Corporation 

Glaxo Smith Kline 

PLC 

United 

Kingdom 

Projects Funded in FY 1997 

Advanced Transgenic 

Model Systems for 

Biomedical Research 

and Development 

97-01-

0038 

* Genencor 

International, Inc. 

Cultor Ltd. 

Danisco A/S 

[purchased Cultor 

during the project] 

Finland 

Denmark 

Evolution of a 

Murine Model for 

AIDS: Applications 

to Discovery of Small 

Molecule and 

97-01-

0240 

Maxygen, Inc. Glaxo Smith Kline 

PLC 

United 

Kingdom 
ATP Eligibility Criteria for U.S. Subsidiaries of Foreign-Owned Companies 25 

Project Title 

Project 

No. U.S. Subsidiary Parent Company Country 

Vaccine Therapeutics 

Flexible Robotic 

Assembly for 

Powertrain 

Applications 

(FRAPA) 

97-02-

0018 

Progressive Tool 

and Industries 

Company, Inc. 

Fiat SPA Italy 

Nanocomposites 

New Low-Cost, 

High-Strength 

Materials for 

Automotive Parts 

97-02-

0047 

Decoma 

International of 

America, Inc. 

Magna 

International, Inc. 

Canada 

EECOMS: Extended 

Enterprise Coalition 

for Integrated 

Collaborative 

Manufacturing 

Systems 

97-05-

0020 

* Berclain USA 

Ltd. 

Baan USA, Inc. 

[purchased 

Berclain during 

the project] 

Baan Company NV 

Invensys PLC 

Netherlands

United 

Kingdom 

Agent Network for 

Task Scheduling and 

Execution System 

97-05-

0028 

Deneb Robotics, 

Inc. [now Delmia 

Corp.] 

Dasssault Aviation 

Group 

France 

Projects Funded in FY 1995a

Development of 

Closed Cycle Air 

Refrigeration 

Technology for 

Refrigeration 

Markets 

95-01-

0150 

Toromont Process 

Systems, Inc. 

Toromont 

Industries Ltd. 

Canada 

Development of a 

High-Pressure 

Oxygen Generator 

Using a Solid 

Electrolyte Oxygen 

Separation (SEOS) 

Technology 

95-01-

0178 

Ceramatec, Inc. Elkem A/S Norway 

Agile Precision SheetMetal Stamping: The 

“Near Zero 

Stamping” Program 

95-02-

0008 

Tecnomatix 

Technologies, Inc. 

Daimler Chrysler 

Corporation 

Deneb Robotics, 

Inc. 

Tecnomatix 

Technologies, Inc. 

Daimler Chrysler 

AG 

Dasssault Aviation 

Group 

Israel 

Germany 

France 
26 Table 2 

Project Title 

Project 

No. U.S. Subsidiary Parent Company Country 

Intelligent Resistance 

Welding 

95-02-

0013 

Alcan Aluminum 

Corporation 

Daimler Chrysler 

Corporation 

Robotron 

Corporation 

Alcan Aluminum 

Corporation 

Daimler Chrysler 

AG 

Standard Chartered 

PLC 

Canada 

Germany 

United 

Kingdom 

Springback 

Predictability in 

Automotive 

Manufacturing 

95-02-

0035 

The Budd 

Company, 

Technical Center 

[now 

ThyssenKrupp 

Budd] 

Daimler Chrysler 

Corporation 

ThyssenKrupp AG 

Daimler Chrysler 

AG 

Germany 

Germany 

Plasma-Based 

Processing of 

Lightweight 

Materials for MotorVehicle Components 

and Manufacturing 

Applications 

95-02-

0036 

ABB High Power 

Semiconductors 

Asea Brown Boveri, 

Inc. 

Switzerland 

HDTV Broadcast 

Technology 

95-04-

0026 

Comark 

Communications, 

Inc. [now 

Thomcast 

Communications] 

Thomson 

Consumer 

Electronics Inc. 

Thomson SA 

Thomson SA 

France 

France 

Continuous 

Biocatalytic Systems 

for the Production of 

Chemicals from 

Renewable Resources 

95-05-

0007 

* Genencor 

International, Inc. 

Cultor Ltd. 

Danisco A/S 

[purchased Cultor 

during the project] 

Finland 

Denmark 

Thin-Film Solid Acid 

Catalyst for Refinery 

Alkylation 

95-05-

0034 

** ABB Lummus 

Global, Inc. 

Asea AB 

Brown Boveri Ltd. 

Sweden 

Switzerland 
ATP Eligibility Criteria for U.S. Subsidiaries of Foreign-Owned Companies 27 

Project Title 

Project 

No. U.S. Subsidiary Parent Company Country 

Elastomeric 

Polypropylene and 

Elastic Nonwovens 

Venture 

95-05-

0039 

Fiberweb North 

America, Inc. 

[now BBA 

Nonwovens 

Simpsonville] 

BP Amoco 

Corporation 

BBA Group PLC 

BP Amoco PLC 

United 

Kingdom 

United 

Kingdom 

Arrayed Primer 

Extension (APEX): 

The Next Generation 

DNA Analysis 

System for 

Sequencing in DNA 

Diagnostics 

95-08-

0023 

* Pharmacia 

Biotech, Inc. 

Amersham 

Pharmacia 

Biotech, Inc. [new 

name of 

subsidiary after 

parent was 

purchased; now 

Amersham 

Biosciences] 

Pharmacia Biotech 

AB 

Amersham PLC 

[purchased 

Pharmacia Biotech 

AB during the 

project] 

Sweden 

United 

Kingdom 

Manufacturing 

Methodologies for 

Automated 

Thermoset 

Transfer/Injection 

Molding (TIM) 

95-11-

0017 

The Budd 

Company, Design 

Center [now 

ThyssenKrupp 

Budd] 

ThyssenKrupp AG Germany 

An Agent-Based 

Framework for 

Integrated Intelligent 

Planning - Execution 

95-12-

0024 

Berclain USA Ltd. 

[now Baan USA] 

Baan Company NV 

[became part of 

Invensys, PLC, 

U.K.] 

Netherlands 

National Industrial 

Information 

Infrastructure 

Protocols Solutions 

for ManufacturingAdaptable Replicable 

Technology 

95-12-

0030 

Schneider 

Automation, Inc. 

Group Schneider France 

Projects Funded in FY 1994 

A Software 

Technology for 

Optimizing On-Time 

Performance in the 

Transportation 

Industry 

94-01-

0063 

Union Switch & 

Signal, Inc. 

IRI Istituto 

Ricostruzione 

Italy 
28 Table 2 

Project Title 

Project 

No. U.S. Subsidiary Parent Company Country 

Dual Purpose 

Ceramic Membranes 

94-01-

0135 

BP Chemical, Inc. The British 

Petroleum 

Company PLC 

United 

Kingdom 

Collaborative 

Decision Support for 

Industrial Process 

Control 

94-01-

0169 

BP Oil The British 

Petroleum 

Company PLC 

United 

Kingdom 

High Information 

Content Display 

Technology 

94-01-

0304 

Philips Consumer 

Electronics North 

America 

Royal Philips 

Electronics NV 

Netherlands 

Accelerated 

Commercialization of 

Diamond-Coated 

Round Tools and 

Wear Parts 

94-01-

0357 

Norton Diamond 

Film 

Compagnie de 

Saint-Gobain 

France 

PMC Power 

Transmission Devices 

94-02-

0030 

New Venture 

Gear, Inc. 

Daimler Chrysler 

AG 

Germany 

Composite 

Production Risers 

94-02-

0032 

Shell International 

Exploration and 

Production 

Technology 

Company 

Royal Dutch 

Petroleum 

Company 

Netherlands 

Spoolable Composite 

Tubing 

94-02-

0038 

Elf Atochem 

North America, 

Inc. 

Shell 

Development 

Company 

Societe Nationale 

Elf Aquitaine 

Royal Dutch 

Petroleum 

Company 

France 

Netherlands 

Development of 

Manufacturing 

Methodologies for 

Vehicle Composite 

Frames 

94-02-

0040 

The Budd 

Company, Design 

Center [now 

ThyssenKrupp 

Budd] 

ThyssenKrupp AG Germany 

Manufacturing 

Composite Structures 

for the Offshore Oil 

Industry 

94-02-

0048 

ABB Vetco Gray, 

Inc. 

Asea Brown Boveri, 

Inc. 

Switzerland 

Miniature Integrated 

Nucleic Acid 

Diagnostic 

94-05-

0016 

Molecular 

Dynamics, Inc. 

[now Amersham 

Amersham PLC United 

Kingdom 
ATP Eligibility Criteria for U.S. Subsidiaries of Foreign-Owned Companies 29 

Project Title 

Project 

No. U.S. Subsidiary Parent Company Country 

Development Biosciences] 

Projects Funded in FY 1993 

A Novel 

Microminiature Light 

Source Technology 

93-01-

0045 

Philips 

Laboratories [now 

Philips Research] 

Royal Philips 

Electronics NV 

Netherlands 

Hyperthermophilic 

Microorganisms in 

Molecular Biology 

and Biotechnology 

93-01-

0113 

United States 

Biochemical 

Corporation [now 

Amersham 

Biosciences] 

Amersham PLC United 

Kingdom 

Strategic Machine 

Tool Technologies: 

Spindles 

93-01-

0244 

Giddings & Lewis, 

Inc. 

Thyssen AG Germany 

aIn FY 1996, there was only one project funded with a foreign participant; it is not listed 

in the table because it was canceled before the project began. 

ATP Eligibility Criteria for U.S. Subsidiaries of Foreign-Owned Companies 31 

6. Questions and Answers on Foreign Eligibility 

and Participation 

This section presents common questions about foreign eligibility and 

participation, and provides answers in order to clarify ATP’s policies on the 

eligibility of foreign-owned companies. 

Q. Are green card holders who own a company incorporated in the United States 

eligible to receive an ATP award? Do they have to go through a foreign 

eligibility finding process? 

A. No, green card holders (resident aliens) are ineligible to receive an award 

from ATP and consequently do not go through a foreign eligibility finding 

process. If a proposal by a green card holder is submitted for consideration, it 

will undergo the normal selection process. If the proposal is selected as a 

semifinalist, the applicant will be asked if ownership has transferred from the 

green card holder to a U.S. citizen(s). ATP funding cannot be received unless the 

ownership issue has been resolved. Awards will not be deferred in order for this 

issue to be resolved. According to Sec. 295.3(c) of the ATP Rule, 

Companies owned by legal residents (green card holders) may apply to 

the Program, but before an award can be given, the owner(s) must either 

become a U.S. citizen or ownership must be transferred to a U.S. 

citizen(s). 

Q. What are the eligibility requirements for foreign-owned companies seeking to 

participate as subcontractors in an ATP project? Is a foreign eligibility finding 

required? 

A. No, a foreign eligibility finding is not required in this case, but the submitting 

organization will be required to justify the use of any foreign-owned or foreignlocated subcontractors or subsidiaries and explain how their participation will 

benefit the U.S. economy and why U.S. sources were judged to be unavailable 

and inadequate to meet project goals. Information addressing the “R&D Work 

Performed Outside the United States by the Recipient or Subcontractor 

Questionnaire” which can be found in the Exhibits section of the ATP Proposal 

Preparation Kit (February 2004) should be submitted in the Gate 1 proposal, if 

applicable. 

Because the mission of the program is to create economic growth in the United 

States, ATP award recipients are expected to use U.S. subcontractors to carry out 
32 6. Questions and Answers on Foreign Eligibility and Participation 

project tasks in the United States. Substantial use of foreign subcontractors is 

discouraged. It is important for proposers to identify for all participants and 

subcontractors which facility and where (in or outside the United States) the 

research will be carried out. For information regarding the use of foreign 

subcontractors and R&D activities at non-U.S. sites, see “R&D Activities at NonU.S. Sites” on page 28 of the ATP Proposal Preparation Kit (February 2004). 

Q. How do I determine who my ultimate parent company is? 

A. If your parent company is owned by another company, then the chain of 

ownership has not reached the ultimate owner. If you are majority-owned by an 

investment firm, for instance, and other firms own the investment firm, then the 

ownership chain is followed upward until there are no remaining layers of 

ownership. Your ultimate parent company and its country of incorporation will 

be used to apply the country-specific eligibility requirements during the foreign 

eligibility finding process. 

Q. What if my company has more than one foreign parent? 

A. To carry out the foreign eligibility finding, we look to the parent company 

with majority ownership or control, and conduct a foreign eligibility finding for 

that parent company. 

Q. What if I am jointly foreign-owned and U.S.-owned? 

A. We look at who is the majority owner of your company, and if it is the 

foreign-owned company, we will carry out a foreign eligibility finding for that 

parent company. If it is the case that ownership is equally shared, we will 

conduct a foreign eligibility finding for your foreign parent company. 

Q. I am interested in applying to ATP, but I am a foreign-owned company 

without a U.S. subsidiary. Can I still apply and receive an award? 

A. No. According to the ATP Statute, only U.S.-owned companies and foreignowned companies that are incorporated or organized in the United States with a 

parent company incorporated in another country are eligible to receive financial 

assistance from ATP. Foreign-owned companies located outside the United 

States are ineligible for an award. 
ATP Eligibility Criteria for U.S. Subsidiaries of Foreign-Owned Companies 33 

Q. I am a foreign-owned company with a U.S. subsidiary interested in applying 

to ATP, but I am not sure if I will pass the foreign eligibility finding. Could you 

tell me in advance if my parent country would pass the country-specific 

eligibility requirements before I apply? 

A. No. ATP cannot give an opinion on whether the parent country of a foreignowned company would pass the country-specific eligibility requirements prior to 

the time of application. A country’s national policies may have been determined 

to meet the eligibility requirements in the past, but national policies change and 

that country’s policies may not meet the foreign eligibility criteria at the time of a 

new finding—or, vice versa. 

Q. I am curious about when the process begins for a foreign eligibility finding. I 

was just notified by ATP that I am a semifinalist, but I have a foreign parent. 

Will ATP tell me at the oral review if I have passed the foreign eligibility 

finding? 

A. No. A determination of foreign eligibility will not be made until after the oral 

review. You will be asked to submit answers to the “Foreign-Owned Company 

Questionnaire” (see the Exhibits section of the ATP Proposal Preparation Kit, 

February 2004) in your Gate 2 proposal. During your oral review, the selection 

board may ask you questions to clarify how well you meet the ATP criteria, 

including questions related to the foreign eligibility finding—questions such as 

where you intend to carry out the research. Information submitted in your 

proposal, your response to the “Foreign-Owned Company Questionnaire,” and 

information gathered during the oral review are used in the foreign eligibility 

finding process. Only foreign-owned participants of projects that reach the 

finalist stage will undergo the foreign eligibility finding. 

Q. What information do you use to carry out a foreign eligibility finding? 

A. ATP relies on information collected by federal agencies (e.g., the U.S. 

Department of Commerce, the U.S. Trade Representative, the U.S. Patent and 

Trademark Office, and the U.S. Department of State), and received from foreign 

embassies, U.S. embassies abroad, foreign programs, and other sources help us 

make an eligibility determination. 
34 6. Questions and Answers on Foreign Eligibility and Participation 

Q. I am a U.S.-owned company currently participating in an ATP project. We 

are in the process of being acquired by a foreign-owned company. We would like 

to continue our participation in the project. What do you do in a case like ours? 

A. First, you must notify your NIST Grants Officer within 30 days of any change 

in ownership (e.g., a shift in majority control or ownership from individuals who 

are citizens of the United States) as stipulated in the terms and conditions of your 

cooperative agreement with NIST. When a change in ownership from majority 

U.S.-owned to foreign-owned is official, a foreign eligibility finding will be 

initiated to determine whether your company’s continued participation in the 

project is in the economic interest of the United States, taking into account the 

change in ownership, and whether your new foreign parent’s country of 

incorporation meets the country-specific eligibility requirements mandated by 

Congress. You will be asked to address similar questions to the ones in the 

“Foreign-Owned Company Questionnaire,” (see the Exhibits section in the ATP 

Proposal Preparation Kit, February 2004). 

The finding will be carried out as expeditiously as possible. During the time that 

the finding is being carried out the project can continue with your participation. 

If the foreign eligibility finding is determined to be positive on all four foreign 

eligibility requirements, you are officially allowed to continue your participation 

in the project. If the finding is negative, you will have to withdraw from the 

project. 

Q. Once a foreign-owned company is determined eligible to participate in ATP, 

is a determination of continued eligibility carried out every year? 

A. Every year, ATP reviews the progress of all awarded projects against the 

project selection criteria and against the project’s original goals, and determines 

whether continued assistance is appropriate. Even though ATP does not carry 

out a foreign eligibility finding each year for currently participating foreignowned companies, whether the company’s participation continues to be in the 

economic interest of the United States is considered under the normal annual 

project review, while the other three country-specific eligibility requirements 

related to the national policies of the parent country are not. 
ATP Eligibility Criteria for U.S. Subsidiaries of Foreign-Owned Companies 35 

7. ATP Contact Information 

If you have questions or comments regarding this report, or if you wish to 

receive a paper copy, please submit your request to ATP by email to atpeao@nist.gov, or to the following address: 

Economic Assessment Office 

Advanced Technology Program 

National Institute of Standards and Technology 

100 Bureau Drive, Mail Stop 4710 

Gaithersburg, Maryland 20899-4710 

If you wish to speak with someone at ATP, please contact either of the following 

individuals: 

Connie Chang, Supervisory Economist 

Economic Assessment Office 

301-975-4318 (voice); 301-975-4776 (fax) 

connie.chang@nist.gov 

Kathleen McTigue, Economist 

Economic Assessment Office 

301-975-8530 (voice); 301-975-4776 (fax) 

kathleen.mctigue@nist.gov 

An electronic copy of the report is also available on ATP’s website at 

www.atp.nist.gov/eao/ir-6099/contents.htm. 

To request an ATP Proposal Preparation Kit, and/or request that your name be 

added to the ATP mailing list for future mailings and announcements of ATP 

workshops and other activities, call our toll-free “hotline” number, 1-800-ATPFUND (1-800-287-3863), or send an email to atp@nist.gov. For answers to 

general questions concerning ATP, please feel free to browse our website at 

www.atp.nist.gov. 

We welcome your comments and suggestions. 

ATP Eligibility Criteria for U.S. Subsidiaries of Foreign-Owned Companies 37 

References 

National Institute of Standards and Technology. Advanced Technology Program 

Proposal Preparation Kit. Gaithersburg, MD. U.S. Department of Commerce, 

Technology Administration, February 2004. 

Advanced Technology Program Rule. Title 15, Code of Federal Regulations, Part 

295 (15 C.F.R. Part 295). 

Advanced Technology Program Statute. Originally authorized by Section 5131 

(a) of the Omnibus Trade and Competitiveness Act of 1988 (P.L. 100-418); 

codified in Title 15 of the United States Code, Section 278n (15 U.S.C. 278n); and 

amended by the American Technology Preeminence Act of 1991 (P.L. 102-245), 

codified in Title 15 of the United States Code, Section 3701 (15 U.S.C. 3701). 

ATP Eligibility Criteria for U.S. Subsidiaries of Foreign-Owned Companies 39 

Appendix A. The ATP Statute 

[Note: The ATP Statute originated in the Omnibus Trade and Competitiveness 

Act of 1988 (P.L. 100-418, codified in 15 U.S.C. 278n) and was later amended by 

the American Technology Preeminence Act of 1991 (P.L. 102-245, codified in 15 

U.S.C. 3701).] 

Sec. 278n. ADVANCED TECHNOLOGY PROGRAM 

(a) There is established in the Institute an Advanced Technology Program (hereafter in 

this Act referred to as the ‘Program’) for the purpose of assisting United States 

businesses in creating and applying the generic technology and research results 

necessary to— 

“(1) commercialize significant new scientific discoveries and technologies rapidly; 

and 

“(2) refine manufacturing technologies. 

“The Secretary, acting through the Director, shall assure that the Program focuses on 

improving the competitive position of the United States and its businesses, gives 

preference to discoveries and to technologies that have great economic potential, and 

avoids providing undue advantage to specific companies. In operating the Program, the 

Secretary and Director shall, as appropriate, be guided by the findings and 

recommendations of the Biennial National Critical Technology Reports prepared 

pursuant to section 603 of the National Science and Technology Policy, Organization, 

and Priorities Act of 1976 (42 U.S.C. 6683). 

“(b) Under the Program established in subsection (a), and consistent with the mission 

and policies of the Institute, the Secretary, acting through the Director, and subject to 

subsections (c) and (d), may— 

“(1) aid industry-led United States joint research and development ventures 

(hereafter in this section referred to as ‘joint ventures’) (which may also include 

universities and independent research organizations), including those involving 

collaborative technology demonstration projects which develop and test prototype 

equipment and processes, through— 

“(A) provision of organizational and technical advice; and 

“(B) participation in such joint ventures by means of grants, cooperative 

agreements, or contracts, if the Secretary, acting through the Director, determines 

participation to be appropriate, which may include (i) partial startup funding, 

(ii) provision of a minority share of the cost of such joint ventures for up to 5 

years, and (iii) making available equipment, facilities, and personnel, provided 

that emphasis is placed on areas where the Institute has scientific or 
40 Appendix A. The ATP Statute 

technological expertise, on solving generic problems of specific industries, and 

on making those industries more competitive in world markets; 

“(2) provide grants to and enter into contracts and cooperative agreements with 

United States businesses (especially small businesses), provided that emphasis is 

placed on applying the Institute’s research, research techniques, and expertise to 

those organizations’ research programs; 

“(3) involve the Federal laboratories in the Program, where appropriate, using 

among other authorities the cooperative research and development agreements 

provided for under section 12 of the Stevenson-Wydler Technology Innovation Act 

of 1980; and 

“(4) carry out, in a manner consistent with the provisions of this section, such other 

cooperative research activities with joint ventures as may be authorized by law or 

assigned to the Program by the Secretary. 

“(c) The Secretary, acting through the Director, is authorized to take all actions necessary 

and appropriate to establish and operate the Program, including— 

“(1) publishing in the Federal Register draft criteria and, no later than six months 

after the date of the enactment of this section, following a public comment period, 

final criteria, for the selection of recipients of assistance under subsection (b)(1) and 

(2); 

“(2) monitoring how technologies developed in its research program are used, and 

reporting annually to the Congress on the extent of any overseas transfer of these 

technologies; 

“(3) establishing procedures regarding financial reporting and auditing to ensure 

that contracts and awards are used for the purposes specified in this section are in 

accordance with sound accounting practices, and are not funding existing or planned 

research programs that would be conducted in the same time period in the absence 

of financial assistance under the Program; 

“(4) assuring that the advice of the Committee established under section 10 is 

considered routinely in carrying out the responsibilities of the Institute; and 

“(5) providing for appropriate dissemination of Program research results. 

“(d) When entering into contracts or making awards under subsection (b), the following 

shall apply: 

“(1) No contract or award may be made until the research project in question has 

been subject to a merit review, and has, in the opinion of the reviewers appointed by 

the Director and the Secretary, acting through the Director, been shown to have 

scientific and technical merit. 
ATP Eligibility Criteria for U.S. Subsidiaries of Foreign-Owned Companies 41 

“(2) In the case of joint ventures, the Program shall not make an award unless the 

award will facilitate the formation of a joint venture or the initiation of a new 

research and development project by an existing joint venture. 

“(3) No Federal contract or cooperative agreement under subsection (b)(2) shall 

exceed $2,000,000 over 3 years, or be for more than 3 years unless a full and complete 

explanation of such proposed award, including reasons for exceeding these limits, is 

submitted in writing by the Secretary to the Committee on Commerce, Science, and 

Transportation of the Senate and the Committee on Science, Space, and Technology 

of the House of Representatives. The proposed contract or cooperative agreement 

may be executed only after 30 calendar days on which both Houses of Congress are 

in session have elapsed since such submission. Federal funds made available under 

subsection (b)(2) shall be used only for direct costs and not for indirect costs, profits, 

or management fees of the contractor. 

“(4) In determining whether to make an award to a particular joint venture, the 

Program shall consider whether the members of the joint venture have made 

provisions for the appropriate participation of small United States businesses in such 

joint venture. 

“(5) Section 552 of title 5, United States Code, shall not apply to the following 

information obtained by the Federal Government on a confidential basis in 

connection with the activities of any business or any joint venture receiving funding 

under the Program— 

“(A) information on the business operation of any member of the business or 

joint venture; and 

“(B) trade secrets possessed by any business or any member of the joint venture. 

“(6) Intellectual property owned and developed by any business or joint venture 

receiving funding or by any member of such a joint venture may not be disclosed by 

any officer or employee of the Federal Government except in accordance with a 

written agreement between the owner or developer and the Program. 

“(7) If a business or joint venture fails before the completion of the period for which a 

contract or award has been made, after all allowable costs have been paid and 

appropriate audits conducted, the unspent balance of the Federal funds shall be 

returned by the recipient to the Program. 

“(8) Upon dissolution of any joint venture or at the time otherwise agreed upon, the 

Federal Government shall be entitled to a share of the residual assets of the joint 

venture proportional to the Federal share of the costs of the joint venture as 

determined by independent audit. 

“(9) A company shall be eligible to receive financial assistance under this section 

only if— 
42 Appendix A. The ATP Statute 

“(A) the Secretary finds that the company’s participation in the program would 

be in the economic interest of the United States, as evidenced by investments in 

the United States in research, development, and manufacturing (including, for 

example, the manufacture of major components or subassemblies in the United 

States); significant contributions to employment in the United States; and 

agreement with respect to any technology arising from assistance provided 

under this section to promote the manufacture within the United States of 

products resulting from that technology (taking into account the goals of 

promoting the competitiveness of United States industry), and to procure parts 

and materials from competitive suppliers; and 

“(B) either— 

“(i) the company is a United States-owned company; or 

“(ii) the Secretary finds that the company is incorporated in the United States 

and has a parent company which is incorporated in a country which affords 

to United States-owned companies opportunities, comparable to those 

afforded to any other company, to participate in any joint venture similar to 

those authorized under this Act; affords to United States-owned companies 

local investment opportunities comparable to those afforded to any other 

company; and affords adequate and effective protection for the intellectual 

property rights of United States-owned companies. 

“(10) Grants, contracts, and cooperative assignments under this section shall be 

designed to support projects which are high risk and which have the potential for 

eventual substantial widespread commercial application. In order to receive a grant, 

contract, or cooperative agreement under this section, a research and development 

entity shall demonstrate to the Secretary the requisite ability in research and 

technology development and management in the project area in which the grant, 

contract, or cooperative agreement is being sought. 

“(11)(A) Title to any intellectual property arising from assistance provided under this 

section shall vest in a company or companies incorporated in the United States. The 

United States may reserve a nonexclusive, nontransferable, irrevocable paid-up 

license, to have practiced for or on behalf of the United States, in connection with any 

such intellectual property, but shall not, in the exercise of such license, publicly 

disclose proprietary information related to the license. Title to any such intellectual 

property shall not be transferred or passed, except to a company incorporated in the 

United States, until the expiration of the first patent obtained in connection with such 

intellectual property. 

“(B) For purposes of this paragraph, the term ‘intellectual property’ means an 

invention patentable under title 35, United States Code, or any patent on such an 

invention. 
ATP Eligibility Criteria for U.S. Subsidiaries of Foreign-Owned Companies 43 

“(C) Nothing in this paragraph shall be construed to prohibit the licensing to any 

company of intellectual property rights arising from assistance provided under 

this section. 

“(e) The Secretary may, within 30 days after notice to Congress, suspend a company or 

joint venture from continued assistance under this section if the Secretary determines 

that the company, the country of incorporation of the company or a parent company, or 

the joint venture has failed to satisfy any of the criteria set forth in subsection (d)(9), and 

that it is in the national interest of the United States to do so. 

“(f) When reviewing private sector requests for awards under the Program, and when 

monitoring the progress of assisted research projects, the Secretary and the Director 

shall, as appropriate, coordinate with the Secretary of Defense and other senior Federal 

officials to ensure cooperation and coordination in Federal technology programs and to 

avoid unnecessary duplication of effort. The Secretary and the Director are authorized to 

work with the Director of the Office of Science and Technology Policy, the Secretary of 

Defense, and other appropriate Federal officials to form interagency working groups or 

special project offices to coordinate Federal technology activities. 

“(g) In order to analyze the need for the value of joint ventures and other research 

projects in specific technical fields, to evaluate any proposal made by a joint venture or 

company requesting the Secretary’s assistance, or to monitor the progress of any joint 

venture or any company research project which receives Federal funds under the 

Program, the Secretary, the Under Secretary of Commerce for Technology, and the 

Director may, notwithstanding any other provision of law, meet with such industry 

sources as they consider useful and appropriate. 

“(h) Up to 10 percent of the funds appropriated for carrying out this section may be used 

for standards development and technical activities by the Institute in support of the 

purposes of this section. 

“(i) In addition to such sums as may be authorized and appropriated to the Secretary and 

Director to operate the Program, the Secretary and Director also may accept funds from 

other Federal departments and agencies for the purpose of providing Federal funds to 

support awards under the Program. Any Program award which is supported with funds 

which originally came from other Federal departments and agencies shall be selected 

and carried out according to the provisions of this section. 

“(j) As used in this section— 

“(1) the term ‘joint venture’ means any group of activities, including attempting to 

make, making, or performing a contract, by two or more persons for the purpose 

of— 

“(A) theoretical analysis, experimentation or systematic study of phenomena or 

observable facts; 

“(B) the development or testing of basic engineering techniques; 
44 Appendix A. The ATP Statute 

“(C) the extension of investigative findings or theory of a scientific or technical 

nature into practical application for experimental and demonstration purposes, 

including the experimental production and testing of models, prototypes, 

equipment, materials, and processes; 

“(D) the collection, exchange, and analysis of research information; 

“(E) the production of any product, process, or service; or 

“(F) any combination of the purposes specified in subparagraphs (A), (B), (C), 

(D), and (E), and may include the establishment and operation of facilities for the 

conducting of research, the conducting of such venture on a protected and 

proprietary basis, and the prosecuting of applications for patents and the 

granting of licenses for the results of such venture; and 

“(2) the term ‘United States-owned company’ means a company that has majority 

ownership or control by individuals who are citizens of the United States.” 
ATP Eligibility Criteria for U.S. Subsidiaries of Foreign-Owned Companies 45 

Appendix B. The ATP Rule: 15 C.F.R. Part 295 

The Code of Federal Regulations (C.F.R.) is a document that contains the 

codification of the general and permanent rules published in the Federal Register 

by departments and agencies in the Executive branch of the Federal government. 

 It is divided into 50 titles that represent broad areas subject to Federal 

regulation. Amendments to rules are published in the Federal Register. 

Individual issues of the Federal Register and the C.F.R. should be used together 

to determine the latest version of any given rule. Each volume of the C.F.R. is 

revised at least once annually, and issued on a quarterly basis. The ATP Rule 

cited below is the January 1, 2002, version of 15 C.F.R. Part 295. 

[Code of Federal Regulations] 

[Title 15, Volume 1] 

[Revised as of January 1, 2002] 

From the U.S. Government Printing Office via GPO Access 

[CITE: 15 C.F.R. 295] 

[Page 432-441] 

TITLE 15—COMMERCE AND FOREIGN TRADE 

SUBPART B—REGULATIONS RELATING TO COMMERCE AND FOREIGN 

TRADE 

CHAPTER II—NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY, 

DEPARTMENT OF COMMERCE 

SUBCHAPTER K—ADVANCED TECHNOLOGY PROGRAM PROCEDURES 

PART 295—ADVANCED TECHNOLOGY PROGRAM 

Subpart A—General 

Sec. 

295.1 Purpose. 

295.2 Definitions. 

295.3 Eligibility of United States- and foreign-owned businesses. 

295.4 The selection process. 

295.5 Use of pre-proposals in the selection process. 

295.6 Criteria for selection. 
46 Appendix B. The ATP Rule: 15 C.F.R. Part 295 

295.7 Notice of availability of funds. 

295.8 Intellectual property rights; publication of research results. 

295.9 Protection of confidential information. 

295.10 Special reporting and auditing requirements. 

295.11 Technical and educational services for ATP recipients. 

Subpart B—Assistance to United States Industry-Led Joint Research and Development 

Ventures 

295.20 Types of assistance available. 

295.21 Qualifications of proposers. 

295.22 Limitations on assistance. 

295.23 Dissolution of joint research and development ventures. 

295.24 Registration. 

295.25 Special rule for the valuation of transfers between separately-owned joint 

venture members. 

Subpart C—Assistance to Single-Proposer U.S. Businesses 

295.30 Types of assistance available. 

295.31 Qualification of proposers. 

295.32 Limitations on assistance. 

Authority: 15 U.S.C. 278n. 

Source: 55 FR 30145, July 24, 1990, unless otherwise noted. 

Subpart A—General 

Sec. 295.1 Purpose. 

(a) The purpose of the Advanced Technology Program (ATP) is to assist United 

States businesses to carry out research and development on high risk, high payoff, emerging and enabling technologies. These technologies are: 

(1) High risk, because the technical challenges make success uncertain; 

(2) High pay-off, because when applied they offer significant benefits to the 

U.S. economy; and 
ATP Eligibility Criteria for U.S. Subsidiaries of Foreign-Owned Companies 47 

(3) Emerging and enabling, because they offer wide breadth of potential 

application and form an important technical basis for future commercial 

applications. 

(b) The rules in this part prescribe policies and procedures for the award of 

cooperative agreements under the Advanced Technology Program in order to 

ensure the fair treatment of all proposals. While the Advanced Technology 

Program is authorized to enter into grants, cooperative agreements, and 

contracts to carry out its mission, the rules in this part address only the award of 

cooperative agreements. The Program employs cooperative agreements rather 

than grants because such agreements allow ATP to exercise appropriate 

management oversight of projects and also to link ATP-funded projects to 

ongoing R&D at the National Institute of Standards and Technology wherever 

such linkage would increase the likelihood of success of the project. 

(c) In carrying out the rules in this part, the Program endeavors to put more 

emphasis on joint ventures and consortia with a broad range of participants, 

including large companies, and less emphasis on support of individual large 

companies. 

[62 FR 64684, Dec. 9, 1997] 

Sec. 295.2 Definitions. 

(a) For the purposes of the ATP, the term award means Federal financial assistance 

made under a grant or cooperative agreement. 

(b) The term company means a for-profit organization, including sole proprietors, 

partnerships, limited liability companies (LLCs), or corporations. 

(c) The term cooperative agreement refers to a Federal assistance instrument used 

whenever the principal purpose of the relationship between the Federal 

Government and the recipient is the transfer of money, property, or services, or 

anything of value to the recipient to accomplish a public purpose of support or 

stimulation authorized by Federal statute, rather than acquisition by purchase, 

lease, or barter, of property or services for the direct benefit or use of the Federal 

Government; and substantial involvement is anticipated between the executive 

agency, acting for the Federal Government, and the recipient during 

performance of the contemplated activity. 

(d) The term direct costs means costs that can be identified readily with activities 

carried out in support of a particular final objective. A cost may not be allocated 

to an award as a direct cost if any other cost incurred for the same purpose in 

like circumstances has been assigned to an award as an indirect cost. Because of 

the diverse characteristics and accounting practices of different organizations, it 

is not possible to specify the types of costs which may be classified as direct costs 

in all situations. However, typical direct costs could include salaries of 

personnel working on the ATP project and associated reasonable fringe benefits 

such as medical insurance. Direct costs might also include supplies and 

materials, special equipment required specifically for the ATP project, and travel 

associated with the ATP project. ATP shall determine the allowability of direct 

costs in accordance with applicable Federal cost principles. 
48 Appendix B. The ATP Rule: 15 C.F.R. Part 295 

(e) The term foreign-owned company means a company other than a United Statesowned company as defined in Sec. 295.2(q). 

(f) The term grant means a Federal assistance instrument used whenever the 

principal purpose of the relationship between the Federal Government and the 

recipient is the transfer of money, property, services, or anything of value to the 

recipient in order to accomplish a public purpose of support or stimulation 

authorized by Federal statute, rather than acquisition by purchase, lease, or 

barter, of property or services for the direct benefit or use of the Federal 

Government; and no substantial involvement is anticipated between the 

executive agency, acting for the Federal Government, and the recipient during 

performance of the contemplated activity. 

(g) The term independent research organization (IRO) means a nonprofit research and 

development corporation or association organized under the laws of any state 

for the purpose of carrying out research and development on behalf of other 

organizations. 

(h) The term indirect costs means those costs incurred for common or joint objectives 

that cannot be readily identified with activities carried out in support of a 

particular final objective. A cost may not be allocated to an award as an indirect 

cost if any other cost incurred for the same purpose in like circumstances has 

been assigned to an award as a direct cost. Because of diverse characteristics and 

accounting practices it is not possible to specify the types of costs which may be 

classified as indirect costs in all situations. However, typical examples of 

indirect costs include general administration expenses, such as the salaries and 

expenses of executive officers, personnel administration, maintenance, library 

expenses, and accounting. ATP shall determine the allowability of indirect costs 

in accordance with applicable Federal cost principles. 

(i) The term industry-led joint research and development venture or joint venture means 

a business arrangement that consists of two or more separately-owned, for-profit 

companies that perform research and development in the project; control the 

joint venture’s membership, research directions, and funding priorities; and 

share total project costs with the Federal government. The joint venture may 

include additional companies, independent research organizations, universities, 

and/or governmental laboratories (other than NIST) which may or may not 

contribute funds (other than Federal funds) to the project and perform research 

and development. A for-profit company or an independent research 

organization may serve as an Administrator and perform administrative tasks on 

behalf of a joint venture, such as handling receipts and disbursements of funds 

and making antitrust filings. The following activities are not permissible for 

ATP funded joint ventures: 

(1) Exchanging information among competitors relating to costs, sales, 

profitability, prices, marketing, or distribution of any product, process, 

or service that is not reasonably required to conduct the research and 

development that is the purpose of such venture; 

(2) Entering into any agreement or engaging in any other conduct 

restricting, requiring, or otherwise involving the production or 

marketing by any person who is a party to such joint venture of any 

product, process, or service, other than the production or marketing of 
ATP Eligibility Criteria for U.S. Subsidiaries of Foreign-Owned Companies 49 

proprietary information developed through such venture, such as 

patents and trade secrets; and 

(3) Entering into any agreement or engaging in any other conduct: 

(i) To restrict or require the sale, licensing, or sharing of inventions 

or developments not developed through such venture, or 

(ii) To restrict or require participation by such party in other 

research and development activities, that is not reasonably 

required to prevent misappropriation of proprietary information 

contributed by any person who is a party to such venture or of 

the results of such venture. 

(j) The term intellectual property means an invention patentable under title 35, 

United States Code, or any patent on such an invention. 

(k) The term large business for a particular ATP competition means any business, 

including any parent company plus related subsidiaries, having annual revenues 

in excess of the amount published by ATP in the relevant annual notice of 

availability of funds required by Sec. 295.7(a). In establishing this amount, ATP 

may consider the dollar value of the total revenues of the 500th company in 

Fortune Magazine’s Fortune 500 listing. 

(l) The term matching funds or cost sharing means that portion of project costs not 

borne by the Federal government. Sources of revenue to satisfy the required cost 

share include cash and in-kind contributions. Cash contributions can be from 

recipient, state, county, city, or other non-federal sources. In-kind contributions 

can be made by recipients or non-federal third parties (except subcontractors 

working on an ATP project) and include but are not limited to equipment, 

research tools, software, and supplies. Except as specified at Sec. 295.25, the 

value of in-kind contributions shall be determined in accordance with OMB 

Circular A-110, Subpart C, Section 23. The value of in-kind contributions will be 

prorated according to the share of total use dedicated to the ATP program. ATP 

restricts the total value of in-kind contributions that can be used to satisfy the 

cost share by requiring that such contributions not exceed 30 percent of the nonfederal share of the total project costs. ATP shall determine the allowability of 

matching share costs in accordance with applicable federal cost principles. 

(m) The term person shall be deemed to include corporations and associations 

existing under or authorized by the laws of either the United States, the laws of 

any of the Territories, the laws of any State, or the laws of any foreign country. 

(n) The term Program means the Advanced Technology Program. 

(o) The term Secretary means the Secretary of Commerce or the Secretary’s designee. 

(p) The term small business means a business that is independently owned and 

operated, is organized for profit, and is not dominant in the field of operation in 

which it is proposing, and meets the other requirements found in 13 CFR part 

121. 

(q) The term United States-owned company means a for-profit organization, including 

sole proprietors, partnerships, or corporations, that has a majority ownership or 

control by individuals who are citizens of the United States. 

[55 FR 30145, July 24, 1990, as amended at 59 FR 666, 667, Jan. 6, 1994; 62 FR 64684, 

64685, Dec. 9, 1997; 63 FR 64413, Nov. 20, 1998] 
50 Appendix B. The ATP Rule: 15 C.F.R. Part 295 

Sec. 295.3 Eligibility of United States- and foreign-owned businesses. 

(a) A company shall be eligible to receive an award from the Program only if: 

(1) The Program finds that the company’s participation in the Program 

would be in the economic interest of the United States, as evidenced by 

investments in the United States in research, development, and 

manufacturing (including, for example, the manufacture of major 

components or subassemblies in the United States); significant 

contributions to employment in the United States; and agreement with 

respect to any technology arising from assistance provided by the 

Program to promote the manufacture within the United States of 

products resulting from that technology (taking into account the goals of 

promoting the competitiveness of United States industry), and to 

procure parts and materials from competitive suppliers; and 

(2) Either the company is a United States-owned company, or the Program 

finds that the company is incorporated in the United States and has a 

parent company which is incorporated in a country which affords to 

United States-owned companies opportunities, comparable to those 

afforded to any other company, to participate in any joint venture 

similar to those authorized under the Program; affords the United 

States-owned companies local investment opportunities comparable to 

those afforded to any other company; and affords adequate and effective 

protection for the intellectual property rights of United States-owned 

companies. 

(b) The Program may, within 30 days after notice to Congress, suspend a company 

or joint venture from continued assistance under the Program if the Program 

determines that the company, the country of incorporation of the company or a 

parent company, or the joint venture has failed to satisfy any of the criteria 

contained in paragraph (a) of this section, and that it is in the national interest of 

the United States to do so. 

(c) Companies owned by legal residents (green card holders) may apply to the 

Program, but before an award can be given, the owner(s) must either become a 

citizen or ownership must be transferred to a U.S. citizen(s). 

[59 FR 667, Jan. 6, 1994, as amended at 62 FR 64685, Dec. 9, 1997] 

Sec. 295.4 The selection process. 

(a) The selection process for awards is a multi-step process based on the criteria 

listed in Sec. 295.6. Source evaluation boards (SEB) are established to ensure that 

all proposals receive careful consideration. In the first step, called “preliminary 

screening,” proposals may be eliminated by the SEB that do not meet the 

requirements of this Part of the annual Federal Register Program announcement. 

 Typical but not exclusive of the reasons for eliminating a proposal at this stage 

are that the proposal: is deemed to have serious deficiencies in either the 

technical or business plan; involves product development rather than high-risk 

R&D; is not industry-led; is significantly overpriced or underpriced given the 
ATP Eligibility Criteria for U.S. Subsidiaries of Foreign-Owned Companies 51 

scope of the work; does not meet the requirements set out in the notice of 

availability of funds issued pursuant to Sec. 295.7; or does not meet the costsharing requirement. NIST will also examine proposals that have been 

submitted to a previous competition to determine whether substantive revisions 

have been made to the earlier proposal, and, if not, may reject the proposal. 

(b) In the second step, referred to as the “technical and business review,” proposals 

are evaluated under the criteria found in Sec. 295.6. Proposals judged by the SEB 

after considering the technical and business evaluations to have the highest merit 

based on the selection criteria receive further consideration and are referred to as 

“semifinalists.” 

(c) In the third step, referred to as “selection of finalists,” the SEB prepares a final 

ranking of semifinalist proposals by a majority vote, based on the evaluation 

criteria in Sec. 295.6. During this step, the semifinalist proposers will be invited 

to an oral review of their proposals with NIST, and in some cases site visits may 

be required. Subject to the provisions of Sec. 295.6, a list of ranked finalists is 

submitted to the Selecting Official. 

(d) In the final step, referred to as “selection of recipients,” the Selecting Official 

selects funding recipients from among the finalists, based upon: the SEB rank 

order of the proposals on the basis of all selection criteria (Sec. 295.6); assuring 

an appropriate distribution of funds among technologies and their applications; 

the availability of funds; and adherence to the Program selection criteria. The 

Program reserves the right to deny awards in any case where information is 

uncovered which raises a reasonable doubt as to the responsibility of the 

proposer. The decision of the Selecting Official is final. 

(e) NIST reserves the right to negotiate the cost and scope of the proposed work 

with the proposers that have been selected to receive awards. For example, NIST 

may request that the proposer delete from the scope of work a particular task 

that is deemed by NIST to be product development or otherwise inappropriate 

for ATP support. 

[63 FR 64413, Nov. 20, 1998] 

Sec. 295.5 Use of pre-proposals in the selection process. 

To reduce proposal preparation costs incurred by proposers and to make the selection 

process more efficient, NIST may use mandatory or optional preliminary qualification 

processes based on pre-proposals. In such cases, announcements requesting preproposals will be published as indicated in Sec. 295.7, and will seek abbreviated 

proposals (pre-proposals) that address both of the selection criteria, but in considerably 

less detail than full proposals. The Program will review the pre-proposals in accordance 

with the selection criteria and provide written feedback to the proposers to determine 

whether the proposed projects appear sufficiently promising to warrant further 

development into full proposals. Proposals are neither “accepted” or “rejected” at the 

pre-proposal stage. When the full proposals are received in response to the notice of 

availability of funds described in Sec. 295.7, the review and selection process will occur 

as described in Sec. 295.4. 

[63 FR 64414, Nov. 20, 1998] 
52 Appendix B. The ATP Rule: 15 C.F.R. Part 295 

Sec. 295.6 Criteria for selection. 

The evaluation criteria to be used in selecting any proposal for funding under this 

program, and their respective weights, are listed in this section. No proposal will be 

funded unless the Program determines that it has scientific and technological merit and 

that the proposed technology has strong potential for broad-based economic benefits to 

the nation. Additionally, no proposal will be funded that does not require Federal 

support, that is product development rather than high risk R&D, that does not display an 

appropriate level of commitment from the proposer, or does not have an adequate 

technical and commercialization plan. 

(a) Scientific and technological merit (50%). The proposed technology must be 

highly innovative. The research must be challenging, with high technical risk. It 

must be aimed at overcoming an important problem(s) or exploiting a promising 

opportunity. The technical leverage of the technology must be adequately 

explained. The research must have a strong potential for advancing the state of 

the art and contributing significantly to the U.S. scientific and technical 

knowledge base. The technical plan must be clear and concise, and must clearly 

identify the core innovation, the technical approach, major technical hurdles, the 

attendant risks, and clearly establish feasibility through adequately detailed 

plans linked to major technical barriers. The plan must address the questions of 

“what, how, where, when, why, and by whom” in substantial detail. The 

Program will assess the proposing team’s relevant experience for pursuing the 

technical plan. The team carrying out the work must demonstrate a high level of 

scientific/technical expertise to conduct the R&D and have access to the 

necessary research facilities. 

(b) Potential for broad-based economic benefits (50%). The proposed technology 

must have a strong potential to generate substantial benefits to the nation that 

extend significantly beyond the direct returns to the proposing organization(s). 

The proposal must explain why ATP support is needed and what difference ATP 

funding is expected to make in terms of what will be accomplished with the ATP 

funding versus without it. The pathways to economic benefit must be described, 

including the proposer’s plan for getting the technology into commercial use, as 

well as additional routes that might be taken to achieve broader diffusion of the 

technology. The proposal should identify the expected returns that the proposer 

expects to gain, as well as returns that are expected to accrue to others, i.e., 

spillover effects. The Program will assess the proposer’s relevant experience and 

level of commitment to the project and project’s organizational structure and 

management plan, including the extent to which participation by small 

businesses is encouraged and is a key component in a joint venture proposal, 

and for large company single proposers, the extent to which 

subcontractor/subrecipient teaming arrangements are featured and are a key 

component of the proposal. 

[63 FR 64414, Nov. 20, 1998] 

Sec. 295.7 Notice of availability of funds. 
ATP Eligibility Criteria for U.S. Subsidiaries of Foreign-Owned Companies 53 

The Program shall publish at least annually a Federal Register notice inviting interested 

parties to submit proposals, and may more frequently publish invitations for proposals 

in the Commerce Business Daily, based upon the annual notice. Proposals must be 

submitted in accordance with the guidelines in the ATP Proposal Preparation Kit as 

identified in the published notice. Proposals will only be considered for funding when 

submitted in response to an invitation published in the Federal Register, or a related 

announcement in the Commerce Business Daily. 

[63 FR 64414, Nov. 20, 1998] 

Sec. 295.8 Intellectual property rights; publication of research results. 

(a) (1) Patent rights. Title to inventions arising from assistance provided by the 

Program must vest in a company or companies incorporated in the United 

States. Joint ventures shall provide to NIST a copy of their written agreement 

which defines the disposition of ownership rights among the members of the 

joint venture, and their contractors and subcontractors as appropriate, that 

complies with the first sentence of this paragraph. The United States will reserve 

a nonexclusive, nontransferable, irrevocable, paid-up license to practice or have 

practiced for or on behalf of the United States any such intellectual property, but 

shall not, in the exercise of such license, publicly disclose proprietary 

information related to the license. Title to any such intellectual property shall 

not be transferred or passed, except to a company incorporated in the United 

States, until the expiration of the first patent obtained in connection with such 

intellectual property. Nothing in this paragraph shall be construed to prohibit 

the licensing to any company of intellectual property rights arising from 

assistance provided under this section. 

(2) Patent procedures. Each award by the Program shall include provisions 

assuring the retention of a governmental use license in each disclosed invention, 

and the government’s retention of march-in rights. In addition, each award by 

the Program will contain procedures regarding reporting of subject inventions 

by the funding Recipient to the Program, including the subject inventions of 

members of the joint venture (if applicable) in which the funding Recipient is a 

participant, contractors and subcontractors of the funding Recipient. The 

funding Recipient shall disclose such subject inventions to the Program within 

two months after the inventor discloses it in writing to the Recipient’s designated 

representative responsible for patent matters. The disclosure shall consist of a 

detailed, written report which provides the Program with the following: the title 

of the present invention; the names of all inventors; the name and address of the 

assignee (if any); an acknowledgment that the United States has rights in the 

subject invention; the filing date of the present invention, or, in the alternative, a 

statement identifying that the Recipient determined that filing was not feasible; 

an abstract of the disclosure; a description or summary of the present invention; 

the background of the present invention or the prior art; a description of the 

preferred embodiments; and what matter is claimed. Upon issuance of the 

patent, the funding Recipient or Recipients must notify the Program accordingly, 

providing it with the Serial Number of the patent as issued, the date of issuance, 
54 Appendix B. The ATP Rule: 15 C.F.R. Part 295 

a copy of the disclosure as issued, and if appropriate, the name, address, and 

telephone number(s) of an assignee. 

(b) Copyrights: Except as otherwise specifically provided for in an Award, funding 

recipients under the Program may establish claim to copyright subsisting in any 

data first produced in the performance of the award. When claim is made to 

copyright, the funding recipient shall affix the applicable copyright notice of 17 

U.S.C. 401 or 402 and acknowledgment of Government sponsorship to the data 

when and if the data are delivered to the government, are published, or are 

deposited for registration as a published work in the U.S. Copyright Office. The 

funding recipient shall grant to the Government, and others acting on its behalf, 

a paid up, nonexclusive, irrevocable, worldwide license for all such data to 

reproduce, prepare derivative works, perform publicly and display publicly, and 

for data other than computer software to distribute to the public by or on behalf 

of the Government. 

(c) Publication of research results: The decision on whether or not to publish 

research results will be made by the funding recipient(s). Unpublished 

intellectual property owned and developed by any business or joint research and 

development venture receiving funding or by any member of such a joint 

venture may not be disclosed by any officer or employee of the Federal 

Government except in accordance with a written agreement between the owner 

or developer and the Program. The licenses granted to the Government under 

Sec. 295.8(b) shall not be considered a waiver of this requirement. 

[55 FR 30145, July 24, 1990. Redesignated and amended at 59 FR 667, 669, Jan. 6, 1994; 63 

FR 64414, Nov. 20, 1998] 

Sec. 295.9 Protection of confidential information. 

As required by section 278n(d)(5) of title 15 of the United States Code, the following 

information obtained by the Secretary on a confidential basis in connection with the 

activities of any business or joint research and development venture receiving funding 

under the program shall be exempt from disclosure under the Freedom of Information 

Act— 

(1) Information on the business operation of any member of the business or joint 

venture; 

(2) Trade secrets possessed by any business or any member of the joint venture. 

[55 FR 30145, July 24, 1990. Redesignated at 59 FR 667, Jan. 6, 1994] 

Sec. 295.10 Special reporting and auditing requirements. 

Each award by the Program shall contain procedures regarding technical, business, and 

financial reporting and auditing requirements to ensure that awards are being used in 

accordance with the Program’s objectives and applicable Federal cost principles. The 

purpose of the technical reporting is to monitor “best effort” progress toward overall 

project goals. The purpose of the business reporting system is to monitor project 

performance against the Program’s mission as required by the Government Performance 
ATP Eligibility Criteria for U.S. Subsidiaries of Foreign-Owned Companies 55 

and Results Act (GPRA) mandate for program evaluation. The audit standards to be 

applied to ATP awards are the “Government Auditing Standards” (GAS) issued by the 

Comptroller General of the United States (also known as yellow book standards) and the 

ATP program-specified audit guidelines. The ATP program-specific audit guidelines 

include guidance on the number of audits required under an award. In the interest of 

efficiency, the recipients are encouraged to retain their own independent CPA firm to 

perform these audits. The Department of Commerce’s Office of Inspector General (OIG) 

reserves the right to conduct audits as deemed necessary and appropriate. 

[62 FR 64686, Dec. 9, 1997. Redesignated at 63 FR 64415, Nov. 20, 1998] 

Sec. 295.11 Technical and educational services for ATP recipients. 

(a) Under the Federal Technology Transfer Act of 1986, the National Institute of 

Standards and Technology of the Technology Administration has the authority 

to enter into cooperative research and development agreements with nonFederal parties to provide personnel, services, facilities, equipment, or other 

resources except funds toward the conduct of specified research or development 

efforts which are consistent with the missions of the laboratory. In turn, the 

National Institute of Standards and Technology has the authority to accept 

funds, personnel, services, facilities, equipment and other resources from the 

non-Federal party or parties for the joint research effort. Cooperative research 

and development agreements do not include procurement contracts or 

cooperative agreements as those terms are used in sections 6303, 6304, and 6305 

of title 31, United States Code. 

(b) In no event will the National Institute of Standards and Technology enter into a 

cooperative research and development agreement with a recipient of awards 

under the Program which provides for the payment of Program funds from the 

award recipient to the National Institute of Standards and Technology. 

(c) From time to time, ATP may conduct public workshops and undertake other 

educational activities to foster the collaboration of funding Recipients with other 

funding resources for purposes of further development and commercialization 

of ATP-related technologies. In no event will ATP provide recommendations, 

endorsements, or approvals of any ATP funding Recipients to any outside party. 

[55 FR 30145, July 24, 1990. Redesignated at 59 FR 667, Jan. 6, 1994. Redesignated and 

amended at 63 FR 64415, Nov. 20, 1998] 

Subpart B—Assistance to United States Industry-Led Joint Research and Development 

Ventures 

Sec. 295.20 Types of assistance available. 

This subpart describes the types of assistance that may be provided under the authority 

of 15 U.S.C. 278n(b)(1). Such assistance includes but is not limited to: 

(a) Partial start-up funding for joint research and development ventures. 
56 Appendix B. The ATP Rule: 15 C.F.R. Part 295 

(b) A minority share of the cost of joint research and development ventures for up to 

five years. 

(c) Equipment, facilities and personnel for joint research and development ventures. 

Sec. 295.21 Qualifications of proposers. 

Subject to the limitations set out in Sec. 295.3, assistance under this subpart is available 

only to industry-led joint research and development ventures. These ventures may 

include universities, independent research organizations, and governmental entities. 

Proposals for funding under this Subpart may be submitted on behalf of a joint venture 

by a for-profit company or an independent research organization that is a member of the 

joint venture. Proposals should include letters of commitment or excerpts of such letters 

from all proposed members of the joint venture, verifying the availability of cost-sharing 

funds, and authorizing the party submitting the proposal to act on behalf of the venture 

with the Program on all matters pertaining to the proposal. No costs shall be incurred 

under an ATP project by the joint venture members until such time as a joint venture 

agreement has been executed by all of the joint venture members and approved by NIST. 

 NIST will withhold approval until it determines that a sufficient number of members 

have signed the joint venture agreement. Costs will only be allowed after the execution 

of the joint venture agreement and approval by NIST. 

[63 FR 64415, Nov. 20, 1998] 

Sec. 295.22 Limitations on assistance. 

(a) An award will be made under this subpart only if the award will facilitate the 

formation of a joint venture or the initiation of a new research and development 

project by an existing joint venture. 

(b) The total value of any in-kind contributions used to satisfy the cost sharing 

requirement may not exceed 30 percent of the non-federal share of the total 

project costs. 

[62 FR 64687, Dec. 9, 1997] 

Sec. 295.23 Dissolution of joint research and development ventures. 

Upon dissolution of any joint research and development venture receiving funds under 

these procedures or at a time otherwise agreed upon, the Federal Government shall be 

entitled to a share of the residual assets of the joint venture proportional to the Federal 

share of the costs of the joint venture as determined by independent audit. 

Sec. 295.24 Registration. 

Joint ventures selected for funding under the Program must notify the Department of 

Justice and the Federal Trade Commission under the National Cooperative Research Act 

of 1984. No funds will be released prior to receipt by the Program of copies of such 

notification. 
ATP Eligibility Criteria for U.S. Subsidiaries of Foreign-Owned Companies 57 

[63 FR 64415, Nov. 20, 1998] 

Sec. 295.25 Special rule for the valuation of transfers between separately-owned joint 

venture members. 

(a) Applicability. This section applies to transfers of goods, including computer 

software, and services provided by the transferor related to the maintenance of 

those goods, when those goods or services are transferred from one joint venture 

member to other separately-owned joint venture members. 

(b) Rule. The greater amount of the actual cost of the transferred goods and services 

as determined in accordance with applicable Federal cost principles, or 75 

percent of the best customer price of the transferred goods and services, shall be 

deemed to be allowable costs; provided, however, that in no event shall the 

aggregate of these allowable costs exceed 30 percent of the non-Federal share of 

the total cost of the joint research and development program. 

(c) Definition. The term “best customer price” shall mean the GSA schedule price, 

or if such price is unavailable, the lowest price at which a sale was made during 

the last twelve months prior to the transfer of the particular good or service. 

[62 FR 64687, Dec. 9, 1997] 

Subpart C—Assistance to Single-Proposer U.S. Businesses 

Sec. 295.30 Types of assistance available. 

This subpart describes the types of assistance that may be provided under the authority 

of 15 U.S.C. 278n(b)(2). Such assistance includes but is not limited to entering into 

cooperative agreements with United States businesses, especially small businesses. 

[59 FR 670, Jan. 6, 1994] 

Sec. 295.31 Qualification of proposers. 

Awards under this subpart will be available to all businesses, subject to the limitations 

set out in Secs. 295.3 and 295.32. 

[62 FR 64687, Dec. 9, 1997] 

Sec. 295.32 Limitations on assistance. 

(a) The Program will not directly provide funding under this subpart to any 

governmental entity, academic institution or independent research organization. 

(b) For proposals submitted to ATP after December 31, 1997, awards to large 

businesses made under this subpart shall not exceed 40 percent of the total 

project costs of those awards in any year of the award. 

(c) Awards under this subpart may not exceed $2,000,000, or be for more than three 

years, unless the Secretary provides a written explanation to the authorizing 

committees of both Houses of Congress and then, only after thirty days during 
58 Appendix B. The ATP Rule: 15 C.F.R. Part 295 

which both Houses of Congress are in session. No funding for indirect costs, 

profits, or management fees shall be available for awards made under this 

subpart. 

(d) The total value of any in-kind contributions used to satisfy a cost sharing 

requirement may not exceed 30 percent of the non-federal share of the total 

project costs. 

[62 FR 64687, Dec. 9, 1997] 
About the Advanced Technology Program 

The Advanced Technology Program (ATP) is a partnership between government and 

private industry to conduct high-risk research to develop enabling technologies that 

promise significant commercial payoffs and widespread benefits for the economy. ATP 

provides a mechanism for industry to extend its technological reach and push the 

envelope beyond what it otherwise would attempt. 

Promising future technologies are the domain of ATP: 

Enabling technologies that are essential to the development of future new and 

substantially improved projects, processes, and services across diverse 

application areas; 

Technologies for which there are challenging technical issues standing in the 

way of success; 

Technologies whose development often involves complex “systems” problems 

requiring a collaborative effort by multiple organizations; and/or 

Technologies that will go undeveloped and/or proceed too slowly to be 

competitive in global markets without ATP. 

ATP funds technical research, but it does not fund product development that is the 

domain of the company partners. ATP is industry driven, and that keeps it grounded in 

real-world needs. For-profit companies conceive, propose, co-fund, and execute all of 

the projects cost shared by ATP; these projects often include universities, and other nonprofit organizations. 

Smaller firms working on single-company projects pay a minimum of all the indirect 

costs associated with the project. Large, “Fortune 500” companies participating in singlecompany projects must pay at least 60% of total project costs. Participants of joint 

venture projects pay at least half of total project costs. Single-company projects can last 

up to three years; joint venture projects can last as long as five years. Companies of all 

sizes participate in ATP-funded projects. To date, nearly two out of three ATP awards 

have gone to individual small businesses or to joint ventures led by a small business. 

Each project has specific goals, funding allocations, and completion dates established at 

the outset. Projects are monitored and can be terminated for cause before completion. 

All projects are selected in rigorous competitions that use peer review to identify those 

that score highest against technical and economic criteria. 

Contact ATP for more information: 

On the Internet: http://www.atp.nist.gov 

By e-mail: atp@nist.gov 

By phone: 1-800-ATP-FUND (1-800-287-3863) 

By writing: Advanced Technology Program, National Institute of Standards and 

Technology, 100 Bureau Drive, Mail Stop 4701, Gaithersburg, MD 20899-4701