Making an Impact on U.S. Manufacturing

MEP General Terms and

Conditions

August 2017
TABLEOF CONTENTS

1. Award Instrument.......................................................................................................................................... 1

2. Applicability Of Award Provisions ................................................................................................................. 2

3. Order Of Precedence Of Terms And Conditions Of Award ............................................................................ 2

4. Cooperative Agreement Award Periods ........................................................................................................ 3

5. Required Plans ............................................................................................................................................... 3

6. Oversight Boards ........................................................................................................................................... 4

7. Signatory Authority For Award Documents................................................................................................... 4

8. Notifications And Prior Approvals ................................................................................................................. 5

9. Interactions With NIST And MEP Centers ...................................................................................................... 8

10. Cost Sharing And Matching............................................................................................................................ 8

11. Monitoring Of Subrecipients ....................................................................................................................... 10

12. Program Income .......................................................................................................................................... 10

13. Unexpended Federal Funds (Uff)................................................................................................................. 13

14. Reporting Requirements.............................................................................................................................. 13

15. Program Performance Reviews ................................................................................................................... 14

16. Post Project Client Follow-Up ...................................................................................................................... 15

17. Reports, Surveys, Studies, And Manuals...................................................................................................... 15

18. Record-Keeping............................................................................................................................................ 16

19. Audits........................................................................................................................................................... 16

20. Enforcement And Termination .................................................................................................................... 16

21. Award Closeout............................................................................................................................................ 16
NIST MEP General Terms and Conditions 1 August 2017

General Terms and Conditions

Hollings Manufacturing Extension Partnership

The General Terms and Conditions set forth below apply to all Recipients of cooperative 

agreement awards under the Hollings Manufacturing Extension Partnership (MEP) Program, 

15 U.S.C. Section 278k, as amended, and 15 C.F.R. part 290, unless otherwise noted in these 

General Terms and Conditions or in a Special Award Condition. Failure to comply with any or all 

of the provisions of the MEP award may be considered grounds for appropriate enforcement 

action (See Term and Condition 20). Questions concerning the interpretation or application of 

these General Terms and Conditions should be addressed to your NIST Federal Program 

Officer and to the NIST Grants Officer.

1. Award Instrument

In accordance with 31 U.S.C. Section 6305 and 2 C.F.R. Section 200.24, financial assistance 

awards issued pursuant to the MEP Center program are issued in the form of a cooperative 

agreement, unless otherwise noted on the Form CD-450 or Form CD-451. A cooperative 

agreement is a funding instrument that provides for substantial involvement by and between 

the National Institute of Standards and Technology’s Hollings Manufacturing Extension 

Partnership Program (NIST MEP) and a Non-Federal Entity receiving Federal funding to 

support the operation of an MEP Center (referred to as a Non-Federal Entity or as a Center). 

NIST involvement in connection with MEP Center awards may include the types of substantial 

involvement activities described in Final Office of Management and Budget (OMB) Guidance 

Implementing the Federal Grant and Cooperative Agreement Act, 43 Fed. Reg. 36860-65 (Aug. 

18, 1978). In addition, NIST involvement in an MEP Center cooperative agreement may include 

the following NIST activities:

• Guidelines and assistance in developing required plans;

• Linkages to the National Manufacturing Extension Partnership Network (MEP National 

Network), which includes both the national NIST MEP Program Office and the national 

network of NIST MEP-funded Centers;

• Access to standard tools, training, and the experience developed to date within the

MEP Network;

• Guidance for evaluation of performance and collection of data and information from the

Non-Federal Entity organization;

• Approval of key personnel;

• Assistance, where possible, in accessing solutions to technical and managerial problems;

• A framework for performance to high standards and assistance in achieving and

maintaining high standards;

• Assistance to the Non-Federal Entity to define, understand, and resolve issues pertaining

to the successful implementation of the MEP project; and

• Such other substantial involvement by NIST as determined by the NIST Grants Officer, in 

consultation with the NIST MEP Program Office.
NIST MEP General Terms and Conditions 2 August 2017

The Non-Federal Entity shall:

• Develop, submit, and follow required plans and budgets;

• Conduct the tasks necessary to provide the services or complete the objectives described in 

the award in a timely and comprehensive manner;

• Prior to development of new tools, products or resources, investigate existing tools, 

products, or resources available commercially, through NIST MEP, or the MEP network of 

centers, as appropriate;

• Participate in activities of the MEP National Network;

• Submit accurate, comprehensive, and verifiable technical and financial reports;

• Participate in Program Reviews; and

• Conform to terms and conditions of this cooperative agreement, including but not limited to 

applicable laws and regulations, Department of Commerce Financial Assistance Award 

Standard Terms and Conditions, MEP General Terms and Conditions and Special Award 

Conditions (SACs).

The specific terms and conditions of an MEP Center award are detailed in the NIST MEP 

cooperative agreement.

2. Applicability of Award Provisions

Recipients of NIST MEP cooperative agreements are subject to applicable laws and

regulations, Department of Commerce Financial Assistance Award Standard Terms and

Conditions, MEP General Terms and Conditions and Special Award Conditions (SACs). In 

accordance with 2 C.F.R. Section 200.101(b), the terms and conditions of a NIST MEP 

cooperative agreement apply (i.e., flow down) to subawards made by an MEP Center to a 

subrecipient, unless a particular section of 2 C.F.R. part 200 or the terms and conditions of an 

MEP cooperative agreement specifically indicate otherwise. See 2 C.F.R. Section 200.331 for 

the due diligence requirements, flow down provisions and other information that are 

applicable to or that must be included in a subaward.

3. Order of Precedence of Terms and Conditions of Award

Where the Center’s required plans (see Section 5) are inconsistent with the terms and

conditions of the MEP cooperative agreement, the terms and conditions of the MEP 

cooperative agreement shall prevail. The terms and conditions of an MEP cooperative 

agreement shall be applied by NIST in the following order of precedence: Federal laws (e.g., 15 

U.S.C. 278k, as amended; Federal regulations (e.g., 2 C.F.R. part 200, 15 C.F.R. part 290); SACs; 

these MEP General Terms and Conditions; Department of Commerce Financial Assistance 

Award Standard Terms and Conditions; the Federal Register notice and Announcement or 

Notice of Federal Funding Opportunity pursuant to which the MEP cooperative agreement 

was originally issued by NIST; Federal and Department of Commerce policies applicable to 

Federal financial assistance awards, the Center’s required plans; and lastly, the technical plan 

submitted by the Center with its request for NIST MEP funding. The Non-Federal Entity is

required to bring to the attention of the NIST Grants Officer any perceived differences

between the terms and conditions of the MEP cooperative agreement and the Center’s

required plans. The NIST Grants Officer is the ONLY authorized agent at NIST with the 
NIST MEP General Terms and Conditions 3 August 2017

authority to bind the Federal Government to a financial assistance award and to take actions 

to amend, suspend, and terminate the Award.

4. Cooperative Agreement Award Periods

MEP Centers will be funded by NIST pursuant to a multi-year cooperative agreement for a 

period of up to five-years, with the possibility of NIST renewing the cooperative agreement, at 

the end of the initial multi-year award period and on a non-competitive basis, for an additional 

multi-year award period of up to five years. Annual renewal funding for an existing MEP 

Center may be awarded without competition and may be increased or decreased from yearto-year of an award, contingent upon: successful annual reviews and Panel/Secretarial 

evaluations of the MEP Center in accordance with 15 U.S.C. Section 278k(g) and section 15 of 

these terms and conditions; the Non-Federal Entity’s overall compliance with the terms and

conditions of the MEP Center award; continued relevance of the MEP Center project to the 

mission and priorities of the MEP program, and the availability of Federal award funds and

commensurate non-Federal cost share. 

In considering renewals for a second five-year, multi-year award period, the Secretary will 

evaluate the Center’s performance as described in section 15 of these terms and conditions 

and will further consider programmatic, policy, financial, administrative, and responsibility and

risk assessments, and the availability of funds, consistent with Department of Commerce and

NIST policies and procedures in effect at such time. The decision of whether to issue a second 

multi-year award is at the discretion of the NIST Grants Officer, in consultation with the MEP 

Program Office. After 10 consecutive years of receiving MEP Center funding, NIST will conduct 

a new award competition for such MEP Center, with incumbent Non-Federal Entity operators 

being eligible to compete provided such incumbent Non-Federal Entity is determined by NIST 

to be in good standing relative to prior MEP Center awards. 

5. Required Plans

The tasks to be performed by the Non-Federal Entity under this award and the associated 

costs are detailed in the approved funding proposal/scope of work, and multi-year budget(s). 

Together with the intellectual property plan, these make up the Required Plans. The Required 

Plans must be consistent in form and substance with the current MEP guidelines, which may 

be amended from time to time. Guidance for the development and submission of Required 

Plans can be found in the NIST MEP Renewal Guidelines.

If any modifications are required to the Required Plans or to other plans during the operating 

period, these modifications must be submitted to the NIST MEP Federal Program Officer (NIST 

FPO) and NIST MEP Regional Manager (NIST RM) in writing. In accordance with 2 C.F.R. 

Section 200.407, actions requiring prior approval are not effective unless and until approved in 

writing by the NIST Grants Officer, if appropriate. These modifications will be incorporated as 

amendments to the cooperative agreement. Please contact your NIST RM or NIST FPO if you 

are unsure of which Required Plans apply to your Center.
NIST MEP General Terms and Conditions 4 August 2017

6. Oversight Boards

In accordance with the MEP statute, 15 U.S.C. 278k(k), each MEP Center must establish and

maintain an Oversight Board that complies with the requirements set forth in the statute, as 

well as with the standards set forth by the NIST Director in the Hollings Manufacturing 

Extension Partnership Oversight Board Standards (2017), which are incorporated by reference 

into these Standard Terms and Conditions and available via MEP’s Enterprise Information 

System (MEIS) (https://meis.nist.gov). The MEP statute provides that the standards address:

1. Membership;

2. Board composition;

3. Term limits;

4. Conflicts of interest; and

5. Such additional requirements as the Director considers necessary;

and that the Oversight Board establish and submit to the MEP Director by-laws to govern the 

operation of the Board. See 15 U.S.C. 278k(k)(4). 

As noted in the Oversight Board Standards (2017), the requirements differ depending on the 

type of non-Federal entity which receives an MEP Center cooperative agreement. The 

Oversight Board Standards address the requirements that must be adhered to by the MEP 

Center operator as well as the mandatory information that must be included in the by-laws

submitted to the MEP Director, and also best practices, which are recommended, depending 

on the type of Oversight Board. In addition, the Non-Federal Entity receiving the MEP Center 

cooperative agreement has an affirmative obligation to promptly inform and provide copies of 

any amendments or other changes to its Oversight Board by-laws to NIST MEP.

If an MEP Center’s Oversight Board does not satisfy the requirements of this section or the 

Oversight Board Standards at any time during the term of an MEP Center cooperative 

agreement, the Center must promptly disclose the deficiencies to the NIST FPO and NIST RM, 

and must ensure that its Oversight Board conforms to the requirements set forth herein 

within 90 calendar days from the initial date of the noncompliance, unless such time period is 

otherwise extended by the NIST Grants Officer based on a written request from an MEP 

Center.

7. Signatory Authority for Award Documents

For purposes of an MEP cooperative agreement, the Non-Federal Entity’s signatory authority 

must be a duly authorized representative of the Non-Federal Entity and must possess the legal 

authority to bind the Non-Federal Entity to terms and conditions of an MEP Center award. 

Documents and award actions subject to this requirement include: CD-450, Financial

Assistance Award; CD-451, Amendment to Financial Assistance Award; CD-511,Certification 

Regarding Lobbying; SF-424, Application for Federal Assistance; SF-424B, Assurance – NonConstruction Programs; SF-425, Federal Financial Report; Certification Regarding Federal 

Felony and Federal Criminal Tax Convictions, Unpaid Federal Tax Assessments and Delinquent 

Federal Tax Returns (including any successor forms) and all other required forms, agreements, 

certifications and other documents related to an MEP Center award executed on behalf of 

the Non-Federal Entity. Access to an MEP Center’s ASAP account must be limited to a duly 

authorized representative of the Non-Federal Entity. NIST will return to the Non-Federal Entity
NIST MEP General Terms and Conditions 5 August 2017

unprocessed any documents it receives that do not comply with this section. In addition, NIST 

may request appropriate documentation from a Non-Federal Entity confirming that certain 

person(s) are authorized to act on behalf of the Non-Federal Entity as an authorized 

representative. 

8. Notifications and Prior Approvals

The Non-Federal Entity must obtain the prior written approval from the NIST Grants Officer for 

certain budget and programmatic changes as set forth in 2 C.F.R. Sections 200.308 and

200.407, and in the DOC Financial Assistance Standard Terms and Conditions. Failure to do so 

may result in material non-compliance and result in appropriate enforcement action under the 

award.

For program or budget changes requiring prior approval from the NIST Grants Officer, a 

Center is to work with the NIST FPO/NIST RM to update, and amend, if necessary, the 

Required Plans. Changes will become effective via an amendment to the award (which may be 

in the form of a CD-451 or an official letter) issued by the NIST Grants Officer. Program or 

budget changes requiring prior NIST Grants Officer approval include, but are not limited to, 

the following items:

A. Scope Changes. Changes in the scope or objective of the project even if there is no 

associated budget revision requiring prior approval. A change in the scope or objective of 

the project may occur, for example, based on material changes to the activities to be 

performed, or contributions to be made, by the Non-Federal Entity, subrecipients, 

contractors, or third-party contributors, including but not limited to the development of 

tools, systems, or other resources not discussed in the Center’s Required Plans and

included in the currently approved project budget(s).

B. Key Personnel Changes. Additions or changes in Key Personnel or the absence for more 

than three (3) months or a 25 percent reduction in time devoted to the project in any year 

by the approved Center Director. Key Personnel include Center Directors and Chief 

Financial Officers (CFOs) and, as identified as part of a Non-Federal Entity’s Required Plans

or as identified in a special award condition, may also include Managers and Technical Staff 

whose work on the project directly and materially impact the Non-Federal Entity’s 

performance under an MEP award.

C. Equipment Purchases. Acquisitions of equipment where prior approval is required under 

the Federal cost principles applicable to the award, unless the purchase of such equipment 

is specifically identified in the currently approved project budget.

D. Budget Changes, Revisions, Transfers. Identified in 2 C.F.R. Section 200.308, or in Section 

B.04 of the DOC Financial Assistance Standard Terms and Conditions (March 31, 2017).

E. Non-Federal Entity Changes. A Non-Federal Entity shall not transfer, pledge, mortgage, or 

otherwise assign the award, or any interest therein, or any claim arising thereunder, to any 

party or parties, bank, trust company, or other financing or financial institution without the 

prior written approval of the NIST Grants Officer. In addition, a Non-Federal Entity must 

immediately notify the NIST Grants Officer in writing concerning any name changes or 
NIST MEP General Terms and Conditions 6 August 2017

changes to a Non-Federal Entity’s EIN, DUNs number or unique entity identifier number. 

See Section A.04. of the DOC Financial Assistance Standard Terms and Conditions (March 

31, 2017).

F. Subawards, Contracts, and Third Party Contributor Agreements. Subawards, contracts, 

and third party contributor agreements will be reviewed as part of NIST’s overall approval 

of the Non-Federal Entity’s Required Plans. An explanation of the Non-Federal Entity’s 

valuation and allocation to the MEP award of cost share contributions in accordance with 

applicable Federal cost principles must be submitted to NIST as part of the Non-Federal 

Entity’s Required Plans. NIST requires that copies of all fully executed subawards, 

contracts, and third party contributor agreements incorporated into a Non-Federal Entity’s 

Required Plans, with budgeted amounts of $150,000 or more (combined Federal and nonFederal) during the Center’s current operating year, including subawards, contracts, and

third party contributor agreements to or by the same (or affiliated) entity with a total 

combined value of $150,000 or more, be submitted to the NIST Grants Officer and to the 

NIST FPO and NIST RM. This provision does not apply to the purchase of supplies, material, 

equipment, or general support services, unless prior approval is otherwise required under 

the Federal cost principles applicable to the award. See 2 C.F.R. Section 200.308(c)(1)(vi).

For subawards, contracts, and third party contributor agreements to or with the same (or 

affiliated) entity with a total combined value of $150,000 or more, in lieu of submitting 

copies of each agreement, Centers may be permitted to submit a summary list of the 

agreements that includes information sufficient for determining the reasonableness, 

allowability, and allocability of the agreements being funded under the award, and a copy 

of the fully executed agreement that causes total funding for a single entity to exceed the 

$150,000 threshold for prior approval. Requests to submit a summary list in lieu of copies 

of individual agreements should be submitted to the NIST FPO and NIST RM. Permission or 

rejection for inclusion of these items in the approved budget will be communicated in 

writing by the NIST Grants Officer.

Note that the review of subawards is necessary for verifying estimated costs and

proposed activities and ensuring compliance with the terms and conditions of the award. 

NIST will not review the agreements for legal sufficiency. As such, Centers will receive a 

letter noting the agreement’s incorporation into the award instead of a complete award 

amendment.

G. Cost Share. Per 2 C.F.R. 200.308(c)(1)(vii), for any changes in source or amount of cost 

share, Centers must submit copies of any agreements not included in the approved 

budget, regardless of amount.

The Center is responsible for ensuring that all costs charged against, and that all nonFederal contributions credited to, the MEP award adhere to the substantive and

documentation requirements set forth in 2 C.F.R. part 200, Uniform Administrative 

Requirements, Cost Principles, and Audit Requirements for Federal Awards, and with the 

terms and conditions of this cooperative agreement, including the Department of 

Commerce Financial Assistance Standard Terms and Conditions. Recipients shall conduct all 

procurement transactions in accordance with the requirements set forth in 2 C.F.R. 

Sections 200.110(a) and 200.317-200.326.
NIST MEP General Terms and Conditions 7 August 2017

H. MEP Core Management and Oversight Functions. An MEP Center, as a direct Non-Federal 

Entity Recipient of Federal financial assistance funds under an MEP cooperative 

agreement, must possess and maintain, at all times during an MEP award period, 

accountability to directly manage and execute all functions material and inherent to the 

successful operation of a Center, which include, but are not limited to, the following: 

1. Budget execution, including the responsibility for determining and executing budget 

policy, guidance and strategy, and the determination of program priorities and

associated budget or funding requests;

2. Policy implementation, including the responsibility for determining the content and

implementation of financial and program policies and procedures impacting the NonFederal Entity’s MEP project;

3. Human resources management, including the responsibility for selecting individuals for 

Center employment and for selecting contractors and the direction, control, and

performance management of Center employees and oversight of contractors; and

4. Strategic planning and project execution and management, including the responsibility 

for:

a. Strategic planning functions such as the following: determination of project 

requirements, approval of a project implementation strategy, and the 

development and monitoring of agreements and statements of work with 

subrecipients, vendors, third-party contributors and other strategic partners; and

b. Project execution and management functions such as submission of required 

financial and technical reports and Required Plans; maintenance of a functioning 

financial management system that satisfies the requirements found in 2 C.F.R. 

Section 200.302, to ensure that costs charged against an MEP award are 

reasonable, allocable, and allowable under applicable Federal cost principles; and

adherence to the terms and conditions of the MEP award.

In extraordinary situations, the NIST Grants Officer may allow a Non-Federal Entity to 

temporarily outsource its management and oversight responsibilities under an MEP 

award. If a Non-Federal Entity is proposing such a structure, it must provide the NIST FPO

and the NIST RM with a detailed explanation and accompanying documentation (e.g., 

copies of draft contracts or other agreements) supporting its outsourcing request. The 

NIST Grants Officer, in consultation with the MEP Program Office, will inform the NonFederal Entity in writing as to whether its temporary outsourcing request is approved. 

I. Unexpended Program Income (UPI). Carryover of unexpended program income as

described in these MEP General Terms and Conditions, Section 12.

J. Unexpended Federal Funds (UFF). Carryover of unexpended Federal funds from prior

funding period(s), as discussed in these MEP General Terms and Conditions, Section 13.

K. Foreign Travel. The Non-Federal Entity shall comply with the provisions of the Fly America

Act (49 U.S.C. Section 40118). The implementing regulations of the Fly America Act are

found at 41 C.F.R. Sections 301-10.131 through 301-10.143. The Non-Federal Entity must

receive prior approval of the NIST Grants Officer in accordance with 41 C.F.R. Section 301-

10.142 if a foreign air carrier is anticipated to be used for any part of foreign travel under an
NIST MEP General Terms and Conditions 8 August 2017

MEP cooperative agreement. See also Section G.05.c. of the DOC Financial Assistance

Standard Terms and Conditions (March 31, 2017). 

L. Intellectual Property (IP) Plan Changes. IP Plans developed and submitted by the Centers 

to NIST should cover all years of the cooperative agreement and must be updated, as 

necessary, by the Centers during the term of the cooperative agreement. NIST MEP will 

review the IP Plans during each revision and may provide comments on their suitability as 

it pertains to the Center’s execution of the cooperative agreement. 

9. Interactions with NIST And MEP Centers

It is anticipated that a Center will enter into agreements with other entities such as private

companies, universities, other non-profit organizations, and State governments to accomplish

programmatic objectives and access new and existing resources that will further the impact of 

the Federal investment made on behalf of small and medium–sized companies. 15 U.S.C. 

278k(f)(3)(B).

To facilitate a more rapid transfer of advanced manufacturing technology on a national scale

and to avoid duplication of effort, the Non-Federal Entity is expected to cooperate with NIST, 

other MEP Centers, and the other organizations identified by NIST MEP as sources of 

technology (e.g., Manufacturing USA institutes) or business practices of value to small and

mid-sized manufacturers by participating in coordinated joint program activities. Such

activities may include, but are not limited to the following: participation in NIST MEP national

and regional meetings, communities of practice, working groups, and sharing of expertise,

products and resources within the MEP National Network.

The interactions of NIST MEP under this cooperative agreement include direct involvement in 

helping the Non-Federal Entity define, understand, and resolve problems in the organization’s 

operations and promoting continuous improvement. MEP may recommend that a Center 

leverage the expertise or experience of outside consultants or MEP National Network peers 

with special expertise or experience. See Section 1 of these MEP General Terms and

Conditions.

NIST may take other appropriate steps, or provide other appropriate assistance, to ensure

that the organization operates in a manner which most effectively promotes U.S. 

manufacturing competitiveness, including initiating and facilitating revision of Required Plans

(or other required plans), as soon as the need for such revisions are identified either by NIST 

or the Non-Federal Entity.

10. Cost Sharing and Matching

In accordance with 15 U.S.C. 278k(e)(2) and 15 C.F.R. § 290.4, the minimum non-Federal cost 

share for MEP Center cooperative agreements is 50 percent of the total approved project 

budget, which is determined on an annual basis. As the MEP statute requires that minimum 

cost share requirements must be met annually; there can be no carryover of excess cost share

from one year to the next.
NIST MEP General Terms and Conditions 9 August 2017

The Non-Federal Entity may establish a cost share ratio exceeding the minimum requirement. 

Centers that commit to providing cost share in an amount greater than the minimum 

requirement in their Required Plans must fulfill that commitment. Centers unable to meet the 

proposed cost share in their Required Plans must submit revised documents as soon as 

possible.

If a Non-Federal Entity will not be able to meet the non-Federal cost share amount identified in 

the award, it must submit a budget modification request to the NIST Grants Officer. The 

budget modification request must provide for at least the minimum amount of non-Federal

cost share on an annual basis, and the Non-Federal Entity must also include a detailed 

explanation for the requested reduction to the original amount of non-Federal cost identified 

in the award. Prior written approval of the NIST Grants Officer is required for any reduction to 

the amount of non-Federal cost share.

Any cost sharing must be in accordance with the Non-Federal Entity’s approved project 

budget and must adhere to the “cost sharing or matching” provisions of 15 U.S.C. 278k(f)(3), 

15 C.F.R. Section 290.4, 2 C.F.R. Section 200.306, Section B.03 of the Department of Commerce

Financial Assistance Standard Terms and Conditions (March 31, 2017) and the requirements set 

forth in these MEP General Terms and Conditions, and any Special Award Conditions. Costs

included as cost share must be allocable to the project and allowable under the Federal cost

principles set forth in 2 C.F.R. part 200, Subpart E, and are subject to the audit requirements as

set forth in 2 C.F.R. part 200, Subpart F. The disallowance of any contributed costs as a result

of an audit could result in a Non-Federal Entity not meeting its required cost share under the

cooperative agreement and a refund being due the Federal Government for the excess 

Federal share. 

A. Sources of Non-Federal Cost Share. Non-Federal cost share can be contributed by the 

Center, subrecipients, and third parties. However, contractors and MEP Center clients may 

not provide any form of cost share, including but not limited to discounts or rebates in 

connection with client billing for services provided or in-kind contributions of staff time by 

MEP Center clients, without the prior written approval of the MEP Grants Officer based on 

a detailed written request and justification submitted by an MEP Center. Non-Federal cost 

share contributions must satisfy the criteria set forth in 2 C.F.R. Section 200.306 and in 

these Standard Terms and Conditions.

B. Documenting Cash Contributions of Non-Federal Cost Share. Centers must have

documented evidence of all non-Federal cost share contributions received from any

contributor in the form of cash. This evidence may be in the form of a letter from the 

Center to the contributor acknowledging the contribution, a bank account statement

displaying an electronic funds transfer from a cash contributor to the Center’s bank

account, or in any other format that would allow the NIST Grants Officer or an auditor to 

verify such cash contribution. See 2 C.F.R. Section 200.306(b).

C. Documenting Third Party In-kind Contributions. Per 2 C.F.R. Section 200.96, “Third-party inkind contributions means the value of non-cash contributions (i.e., property or services)

that (a) Benefit a Federally assisted project or program; and (b) Are contributed by nonFederal third parties, without charge, to a non- Federal entity under a Federal award.”

Third party in-kind contributions are counted towards a Non-Federal Entity’s non-Federal
NIST MEP General Terms and Conditions 10 August 2017

share contribution in accordance with 2 C.F.R. Section 200.306 and to the extent that such

third-party contributions are reflected in the approved project budget.

Third party in-kind contributions must be evidenced by written documentation that is

signed by the contributor and the Center that describes the contribution, its value, and

when and for what purpose it was donated. For this purpose, a Center may provide an 

acknowledgement of the contribution and include all the information required by IRS

Instructions for Form 8283. This form can be found at http://www.irs.gov/pub/irspdf/f8283.pdf.

Centers must have documented evidence of all third party in-kind contributions to an MEP 

project, which must be provided to the NIST Grants Officer upon request. In addition, as set 

forth below, certain information concerning the valuation of third party contributions must 

be submitted to NIST MEP as part of a Center’s Required Plans.

• A comprehensive listing of all third party in-kind contributions to the MEP project;

• The value of each third party in-kind contribution established in accordance with 2

C.F.R. Section 200.306 and the Federal cost principles set forth in 2 C.F.R. part 200, 

Subpart E.; and

• The allocation method(s) used by the Non-Federal Entity for purposes of allocating 

third party in-kind contributions to the MEP award. See 2 C.F.R. Section 200.405.

D. Documenting Subrecipient Cost Contributions. Non-Federal cost share contributions by 

subrecipients must comply with the allowability and documentation requirements set forth 

in 2 C.F.R. Section 200.306 and with the record access and record retention requirements 

set forth in 2 C.F.R. Section 200.331(a)(5) and 200.333. At a minimum, the following 

documents should be maintained by the Center and made available upon request of the 

Grants Officer or in the event of an audit:

• Subaward Agreement with detailed budget;

• Documentation to support valuation of non-Federal cost share being contributed by the 

subrecipient; and

• Subrecipient Financial Reporting to the Non-Federal Entity.

11. Monitoring of Subrecipients 

Recipients are required to adhere to the subrecipient monitoring and management standards 

set forth in 2 C.F.R. Sections 200.330 – 200.332. In particular, pursuant to 2 C.F.R. Section 

200.331(d), Centers must monitor the activities of each subrecipient to ensure that the 

subaward is used for authorized purposes, in compliance with Federal statutes, regulations, 

and the terms and conditions of the subaward; and that subaward performance goals are 

achieved. 

12. Program Income

Program income is defined in 2 C.F.R. Section 200.80, and generally includes gross income

earned by a Center or by a subrecipient that is directly generated by a NIST MEP supported
NIST MEP General Terms and Conditions 11 August 2017

activity or earned by the Non-Federal Entity or by a subrecipient as a result of a NIST MEP

cooperative agreement.

A. Treatment of Program Income. In accordance with 2 C.F.R. Section 200.302, ALL program 

income generated pursuant to an MEP Center award or subaward, including program 

income in excess of the non-Federal cost sharing requirements under the award or 

subaward, must be accounted for and expended by the Non-Federal Entity in accordance 

with the requirements of this term. Centers must be in compliance with the financial 

management requirements in 2. C.F.R. § 200.302, including and especially as they relate to 

identifying and tracking the collection and expenditure of program income generated as a 

result of the MEP award (see 2 C.F.R. § 200.80). Consistent with the financial management 

and access to records requirements governing this award, NIST reserves the right to 

request additional information and documentation regarding a Center’s accounting, 

safeguarding and expenditure of program income.

B. Program Income Earned by Centers. In accordance with 2 C.F.R. Section 200.307(e),

program income earned by a Center during the project period shall be retained by the

Center and shall be used by the Center in the following order of priority:

1. First, to finance the non-Federal share of the project;

2. Second, all program income earned in excess of that required to meet the minimum

non- Federal share shall be added to the funds committed to the project by MEP and

the Non-Federal Entity and must be used for the purposes and under the conditions of 

the MEP award (commonly referred to as the “additive approach”). Program income to 

be expended under the additive approach must be explained in detail in the Center’s 

Required Plans or in a separate written communication to the NIST FPO and NIST RM

and to the NIST Grants Officer, and is subject to the prior written approval of the NIST 

Grants Officer; and

3. Third, any remaining program income shall be deducted from the total allowable 

project costs to determine the net allowable program costs upon which the Federal 

share of project costs is based, in accordance with written instructions from the NIST 

Grants Officer (commonly referred to as the “deductive approach”). In lieu of the 

deductive approach and in accordance with Section H. below, an MEP Center may 

request that NIST approve a carry forward of program income not used by the MEP 

Center as non-Federal share or expended under the additive approach.

C. Program Income Earned by Subrecipients. In accordance with 2 C.F.R. Section 200.307(e), 

program income earned by subrecipients during the project period shall be retained by 

the subrecipients and shall be used by the subrecipients in the following order of priority:

1. First, to finance the non-Federal share of the subaward; 

2. Second, all program income earned in excess of that required to meet the minimum 

non- Federal share shall be added to the Federal and non-Federal funds committed to 

the subaward, and must be used for the purposes and under the conditions of the 

MEP award as set forth in the terms of the subaward (commonly referred to as the 

“additive approach”). Program income to be expended under the additive approach 

must be explained in detail in the Center’s Required Plans or in a separate written 

communication to the NIST FPO and NIST RM and to the NIST Grants Officer, and is 

subject to the prior written approval of the NIST Grants Officer; and
NIST MEP General Terms and Conditions 12 August 2017

3. Third, any remaining program income generated by a subrecipient must be remitted 

to the Center by the subrecipient and shall be deducted from the total allowable 

project costs to determine the net allowable program costs upon which the Federal 

share of project costs is based, in accordance with written instructions from the NIST 

Grants Officer (commonly referred to as the “deductive approach”). In lieu of the 

deductive approach and in accordance with Section H below, an MEP Center may 

request that NIST approve a carry forward of program income not used by the 

subrecipient as non-Federal share or expended under the additive approach.

D. Recipients and subrecipients shall have no obligation to the Federal Government

regarding program income earned after the end of the project period, unless otherwise 

provided in a special award condition.

E. Costs incidental to the generation of program income may be deducted from gross 

income to determine program income, provided these costs have not been charged to the

award.

F. Proceeds from the sale of property shall be handled in accordance with the requirements 

set forth in 2 C.F.R. Sections 200.310 through 200.316, as applicable.

G. Recipients and subrecipients shall have no obligation to the Federal Government with 

respect to program income earned from license fees and royalties for copyrighted

material, patents, patent applications, trademarks, and inventions produced under an

award, unless otherwise provided in a special award condition.

H. Unexpended Program Income (UPI)

1. Program income in excess of what is required annually to meet the non-Federal portion

of the annual operating budget, and that cannot be expended during the operating 

period using either the additive and/or deductive approaches during the operating

period, may be carried over by the Center to the subsequent funding period in 

accordance with the requirements below.

2. Requests for carry forward of UPI to a subsequent operating year must be specifically 

identified and explained within the “revenue section” of the Center’s Required Plans or 

in a separate written communication to the NIST FPO and NIST RM and to the NIST 

Grants Officer, and approved in writing by the NIST Grants Officer.

3. The NIST Grants Officer generally will only approve the carry forward of 50% or less of 

the annual Federal funding amount in UPI with the expectation that the Center will 

work with its assigned NIST RM to ensure that it reinvests unexpended and future

program income strategically into the project. Based on the explanation provided by a 

Center, the NIST Grants Officer may approve the carry forward of UPI in an amount 

greater than 50% of a Center’s annual Federal funding amount, although such approvals

will generally be limited to cases where the large amounts of UPI were reasonably 

unforeseeable by the Center or in other extraordinary circumstances faced by a Center. 

The NIST Grants Officer will provide the Non-Federal Entity with written approval or 

denial of a request to carry forward UPI.

4. Additional NIST MEP funding may be withheld until a Non-Federal Entity’s UPI level is

acceptable to NIST.

5. Upon close-out of an MEP award, the NIST Grants Officer will provide the Non-Federal 
NIST MEP General Terms and Conditions 13 August 2017

Entity with closeout instructions, including instructions regarding disposition of

program income.

13. Unexpended Federal Funds (UFF)

NIST MEP does not anticipate Centers having Unexpended Federal Funds (UFF) at the end of 

an annual funding period; however, if a Center has UFF at the end of the current operating 

period, it may request that the NIST Grants Officer approve the carry forward of those funds 

into the next operating year. Requests should be included in the “revenue section” of a 

Center’s Required Plans or in a separate written communication to the NIST FPO and to the 

NIST Grants Officer, and is subject to the prior written approval of the NIST Grants Officer. 

There are two options available for carrying UFF forward, as outlined below.

Option A – Carry Forward Towards Base: If a Center has UFF at the end of its current 

operating year that it wishes to carry forward towards the normal base funding in the new 

operating year, then the Center’s new Federal funding will be reduced by the amount of UFF 

being carried forward towards base. This offset cannot be recovered later in the Operating 

Year or in a subsequent Operating Year unless otherwise identified in the Center’s five-year 

budget, which was approved by the NIST Grants Officer.

Option B – Carry Forward Above Base: If a Center has UFF at the end of its operating year that 

it wishes to carry forward above its annual award amount, then the Center should include in 

its Required Plans a request that explains why the funds were not expended in the previous 

operating year and detail how the UFF will be applied in the new Operating Year to expand

the Center’s normal scope of operation. A Center wishing to carry forward UFF above its base 

award amount must also provide the requisite non-Federal cost share attributable to the UFF 

during the operating year in which the UFF will be expended by the Center. 

If the NIST Grants Officer, with NIST MEP’s recommendation, approves the Center’s request, 

the UFF from the previous operating year will be applied towards the NIST funding for the 

upcoming operating year, as specifically directed in writing by the NIST Grants Officer.

Any Federal funds remaining at the end of a five-year award period will be de-obligated.

14. Reporting Requirements

Unless otherwise required by a Special Award Condition, the following reporting requirements 

shall apply to MEP cooperative agreements:

A. Financial Reports. The Non-Federal Entity shall submit an SF-425, Federal Financial Report, 

into the MEP’s Enterprise Information System (MEIS) on a semi-annual basis after the sixth 

and twelfth month of each operating year. Reports will be due within 30 days after the

end of each semi-annual reporting period. The Non-Federal Entity shall submit a final SF425 within 90 days after the expiration date of the award via MEIS.

B. Technical Reports. The Non-Federal Entity shall submit a Technical Report (completing all

required MEIS fields) on a semi-annual basis after the sixth and twelfth month of each 

operating year. Reports are due in MEIS no later than 30 days following the end of each 
NIST MEP General Terms and Conditions 14 August 2017

reporting period. The Non-Federal Entity shall submit a final Technical/Quarterly report

within 90 days after the expiration date of the award via MEIS. Technical/Quarterly Report

details are accessible on the MEIS website (https://meis.nist.gov/).

C. Operating Outcome Plan. Centers must maintain updated operating outcomes on file at 

NIST. The Operating Outcome Plan describes detailed and specific goals and objectives a 

center plans to accomplish over a multi-year timeframe. Operating Outcomes are reviewed 

during the Center’s Annual Review and, if necessary, revised as part of the Center’s annual 

renewal process. All changes to the Operating Outcome Plan should be submitted via MEIS 

for review and approval by NIST MEP.

D. Other MEP Reporting. While the Financial and Technical reports are due on a semi-annual 

basis, the remaining MEP reporting requirements continue to be due on a calendar

quarterly basis. These additional reporting requirements include: Center information 

(locations, contacts, staff, board members, partners, etc.), Success stories, and Client and

Project information.

The due dates for semi-annual financial and technical reports set forth in this MEP General 

Term and Condition apply in lieu of the due dates for semi-annual financial and technical 

reports referenced in Sections A.01 of the Department of Commerce Financial Assistance 

Standard Terms and Conditions (March 31, 2017). 

15. Program Performance Reviews

Renewal funding for MEP Centers is contingent, in part, upon successful annual reviews, and

panel and Secretarial evaluations in accordance with 15 U.S.C. 278k(g) and 15 C.F.R. Section 

290.8. NIST MEP also measures a Center’s performance relative to client project follow-up 

conducted by NIST MEP pursuant to Section 17 of these General Terms and Conditions.

A. Annual Reviews. Within the 12-month operating year and in operating years where a Panel 

or Secretarial Evaluation is not conducted, NIST MEP will conduct an annual review. This 

review will focus on the Center’s strategic alignment to NIST MEP’s overall program

objectives, the Center’s activities, progress and performance in implementing the NIST 

MEP award, lessons learned, monitoring of subrecipients, resource expenditures, activities 

planned for the next year, and any proposed changes to the project plan or budget. The

Non-Federal Entity will be provided guidelines on the format for the review approximately 

30 days prior to the Program Review. The results of the annual review will be 

communicated to the Non-Federal Entity which will have 30 days to provide comments on 

the draft report. Following receipt and consideration of the comments from the NonFederal Entity, NIST will notify the Non-Federal Entity in writing of the final 

recommendations stemming from the annual review.

B. Panel Evaluations. NIST MEP will conduct a panel evaluation during the third and eighth 

years of each Center’s operation, in accordance with 15 U.S.C. 278k(g)(1)(A). The 

evaluation will be conducted by a panel of private experts, none of whom are connected

with the Center being evaluated by the panel, and Federal officials. An official of NIST shall 

be appointed as the panel’s chairperson. The Center will be evaluated in accordance with 

the performance measures described in 15 U.S.C. 278k(g)(3). Following each evaluation, a 
NIST MEP General Terms and Conditions 15 August 2017

draft report will be provided to the Center, noting the panel’s observations, deficiencies (if 

any), recommendations for improvement and commendations on the Center’s 

performance. Centers will have 30 days to provide comments on the draft report.

Following receipt and consideration of the comments from the Non-Federal Entity, NIST 

will notify the Non-Federal Entity in writing of the final recommendations stemming from 

the panel evaluation. Upon receipt of the final recommendations from NIST, Centers shall, 

as appropriate, incorporate such recommendations into the Required Plans and submit 

revised documents to NIST for prior approval.

C. Secretarial Evaluations. In the fifth year of a Center’s operation, the Secretary shall 

conduct a review of the Center. The Center will be evaluated in accordance with the 

performance measures described in 15 U.S.C. 278k(g)(3). The Secretarial Evaluations will 

be conducted by the MEP Director and Deputy Director. Following each evaluation, a draft 

report will be provided to the Center, noting the Secretary’s observations, deficiencies (if 

any), recommendations for improvement and commendations on the Center’s 

performance. Centers will have 30 days to provide comments on the draft report. 

Following receipt and consideration of the comments from the Non-Federal Entity, NIST 

will notify the Non-Federal Entity in writing of the final recommendations stemming from 

the Secretarial Evaluation. Upon receipt of the final recommendations from NIST, Centers 

shall, as appropriate, incorporate such recommendations into the Required Plans and

submit revised documents to NIST for approval.

D. Evaluation Outcomes. If a Center receives a positive performance evaluation from the 

Panel or Secretarial Evaluations, the Secretary may continue to provide financial assistance 

in accordance with 15 U.S.C. 278k(g)(4). If a Center receives other than a positive 

performance evaluation, the Center shall be placed on probation and NIST will follow the 

provisions set forth in 15 U.S.C. 278k(g)(5). This includes but is not limited to development 

and implementation of a performance improvement plan and quarterly reviews of 

progress against the plan. A reevaluation of the Center shall take place not later than 12 

months after the Center has been notified that it is on probation. In the event a Center is 

unable to remedy any deficiencies or demonstrate significant improvement in 

performance before the end of the probation period, a competition for a new operator for 

that Center shall be initiated.

16. Post Project Client Follow-Up

On a quarterly basis, Recipients are required to provide client and project data in the specified 

format to the organization identified by NIST MEP in order for post-project follow-up data to 

be obtained (OMB Control Number 0693-0021). For further information regarding the NIST 

MEP Reporting Process, Recipients may download a copy of the NIST MEP Reporting 

Guidelines at http://www.nist.gov/mep/ffo_state-competitions.cfm.

17. Reports, Surveys, Studies, And Manuals

All reports, plans, surveys, studies, and manuals developed, produced, or distributed under

this cooperative agreement shall be submitted to the NIST FPO and NIST RM. Each item shall

consist of an electronic or paper copy, submitted in the format and within the timeframe 

specified within the cooperative agreement.
NIST MEP General Terms and Conditions 16 August 2017

18. Record-Keeping

The Non-Federal Entity shall keep complete, accessible, and contemporaneous detailed

records on administrative and financial matters in accordance with the terms and conditions 

of the MEP cooperative agreement, including in accordance with the record retention and

access requirements set forth in 2 C.F.R. Sections 200.333 through 200.337. 

19. Audits

Audit requirements applicable to this award are set forth in 2 C.F.R. part 200, Subpart F, Audit 

Requirements, and in Section D. of the Department of Commerce Financial Assistance

Standard Terms and Conditions (March 31, 2017). 

20. Enforcement and Termination

Failure to perform the work in accordance with the terms of the award and to maintain at

least a satisfactory performance rating or equivalent evaluation may result in appropriate 

enforcement action under an MEP award. Pursuant to 2 C.F.R. Sections 200.338 through 

200.342 and Section A.06 of the DOC Financial Assistance Standard Terms and Conditions

(March 31, 2017), a Non-Federal Entity’s failure to materially comply with the provisions of an

MEP cooperative agreement may be considered grounds for appropriate enforcement

actions, including but not limited to:

• Imposition of additional award conditions to address the area(s) of noncompliance (see 2 

C.F.R. Section 200.207);

• Changing the method of payment under the MEP award from advance to reimbursement

only;

• Withholding payment of funds under the MEP award pending corrective action by the NonFederal Entity;

• Disallowance of costs and establishment of an account receivable;

• Suspension of the MEP award; and

• Termination of the MEP award.

Depending on the nature and severity, a Non-Federal Entity’s failure to materially comply with

the provisions of the MEP cooperative agreement award may also result in appropriate 

enforcement actions under other DOC awards and may also have a negative impact on the

receipt of future funding from the Department of Commerce.

21. Award Closeout

The NIST Grants Office will contact the Non-Federal Entity via email with closeout instructions 

30 days prior to the end of the MEP award, per 2 C.F.R. Section 200.343. The Non-Federal 

Entity is required to comply with the award closeout procedures within 90 days of the award 

expiration date, unless an extension is requested and approved by the NIST Grants Officer in 

writing. 
NIST MEP General Terms and Conditions 17 August 2017

No costs shall be incurred or funds obligated for any purpose pertaining to the program scope 

of work after the program expiration date. The closeout-related costs incurred during the 90-

day closeout period following the expiration date can be claimed in the FINAL invoice. 

Closeout activities are limited to the preparation of final reports in accordance with Section 

B.07 of the Department of Commerce Financial Assistance Standard Terms and Conditions

(March 31, 2017), 

MEP Closeout documents are required to be submitted through MEIS in accordance with the 

90-day closeout letter received from NIST.