MEP General Terms and 

Conditions

February 2016
TABLE OF CONTENTS

1. AWARDINSTRUMENT ..................................................................................................................................... 1

2. APPLICABILITY OF AWARD PROVISIONS.......................................................................................................... 2

3. ORDER OF PRECEDENCE OF TERMS AND CONDITIONS OF AWARD.................................................................. 2

4. COOPERATIVE AGREEMENT AWARD PERIODS ................................................................................................ 2

5. REQUIRED PLANS............................................................................................................................................ 3

6. OVERSIGHT BOARD AND/OR ADVISORY COMMITTEE AND GOVERNANCE ...................................................... 3

7. SIGNATORY AUTHORITY FOR AWARD DOCUMENTS........................................................................................ 4

8. NOTIFICATIONS AND PRIOR APPROVALS......................................................................................................... 5

9. INTERACTIONS WITH NIST AND MANUFACTURING EXTENSION PARTNERSHIP CENTERS................................. 7

10. COST SHARING AND MATCHING ..................................................................................................................... 8

11. MONITORING OF SUBRECIPIENTS ................................................................................................................. 10

12. PROGRAM INCOME ...................................................................................................................................... 10

13. UNEXPENDED FEDERAL FUNDS (UFF) ............................................................................................................ 12

14. REPORTING REQUIREMENTS......................................................................................................................... 13

15. PROGRAM PERFORMANCE REVIEWS ............................................................................................................ 13

16. POST PROJECT CLIENT FOLLOW-UP ............................................................................................................... 14

17. REPORTS, SURVEYS, STUDIES, AND MANUALS .............................................................................................. 14

18. RECORD-KEEPING ......................................................................................................................................... 14

19. AUDITS ......................................................................................................................................................... 14

20. ENFORCEMENT AND TERMINATION.............................................................................................................. 14

21. AWARD CLOSEOUT ....................................................................................................................................... 15
NIST MEP General Terms and Conditions 1 February 2016

GENERAL TERMS AND CONDITIONS

HOLLINGSMANUFACTURINGEXTENSION 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, 15 C.F.R. Part 290, unless otherwise amended through 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. AWARDINSTRUMENT

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 System (MEP System), which 

includes both the national NIST MEP Program Office and the national System of NIST MEP-funded 

Centers;

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

System;

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

Non-Federal Entity organization;

• Timely response to requests for mandatory approvals;

• 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; and

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

the successful implementation of the MEP project.

The Non-Federal Entity shall:

• Develop, submit, and follow required plans and budgets;
NIST MEP General Terms and Conditions 2 February 2016

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

Operating and other required plans 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 System;

• Submit detailed 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.

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 all Federal laws, Federal and 

Department of Commerce regulations and policies applicable to Federal financial assistance 

awards, and terms and conditions of the NIST MEP cooperative agreement. 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 contained as part 

of a subaward.

3. ORDER OF PRECEDENCE OF TERMS AND CONDITIONS OF AWARD

Where the terms and conditions of the MEP cooperative agreement differ from the Center’s required

plans (see Section 5), 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 USC 278k) ; Federal regulations (e.g. 2 CFR part 200, 

15 CFR part 290); Special Award Conditions (SACs); Hollings MEP General Terms and Conditions; 

Department of Commerce Financial Assistance Award Standard Terms and Conditions; Federal 

Register notice and Announcement 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 obligated 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.

4. COOPERATIVE AGREEMENT AWARD PERIODS

In accordance with 15 C.F.R. Section 290.4 and 15 C.F.R. Section 290.8, each MEP Center will be

funded by NIST under a one-year, annually renewable cooperative agreement (which may be structured 
NIST MEP General Terms and Conditions 3 February 2016

as a multi-year award for administrative convenience). Annual renewal funding for an existing MEP 

Center may be awarded without competition and may be increased or decreased from year-to-year of 

an award, contingent upon: successful annual and panel reviews of the MEP Center in accordance with 

15 U.S.C. Section 278k(c)(5) and 15 C.F.R. Section 290.8; the Non-Federal Entity’s compliance with the

terms and conditions of the MEP Center award; applicable laws and policies; continued relevance of the 

MEP Center project to the mission and priorities of the MEP Center Program and the availability of

funds. 

5. REQUIRED PLANS

For MEP 1.0 Centers, the tasks to be performed by the Non-Federal Entity under this award are

detailed in the approved Operating Plan. For MEP 2.0 Centers, the tasks to be performed by the

Center under this award are detailed in the approved Funding Proposal and Detailed Operating 

Outcome Statements and budget(s) (Required Plans). The Required Plans shall incorporate 

strategic planning efforts, and must detail project progress on the previous year’s plan and describe 

planned activities for the following years. The Required Plans must be consistent in form and

substance with the current MEP guidelines, which may be amended from time to time.

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

these modifications must be submitted to the MEP Federal Program Officer (FPO) and Regional 

Manager (RM) in writing and 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 RM or FPO if you are unsure of which Required Plans 

apply to your Center.

6. OVERSIGHT BOARD AND/OR ADVISORY COMMITTEE AND GOVERNANCE

A. Oversight Board. Non-Federal entities will be required to establish and maintain an Oversight 

Board, which has fiduciary responsibility for the governance and operation of the recipient 

organization. The Oversight Board shall be broadly representative of State service area 

stakeholders with a majority of the Oversight Board members drawn from small and mediumsized manufacturing firms. Members of the Oversight Board may not concurrently serve on more 

than one MEP Center Oversight Board or serve as a vendor or provide contractual services to 

the Non-Federal Entity or to a Subrecipient. Additionally, non-Federal entities shall adopt bylaws 

or equivalent governance documents setting forth the roles, responsibilities, and procedures of 

their Oversight Boards, including a conflict of interest policy to ensure relevant relationships are 

disclosed and appropriate recusal procedures are in place. 

B. Advisory Committee. A recipient of an MEP Center cooperative agreement that is an Institution 

of Higher Education, State, Tribal or local governmental entity, where state law or policy prohibits 

compliance with the Oversight Board requirement, may establish an Advisory Committee. The 

Advisory Committee shall be broadly representative of State service area stakeholders with a 

majority of its members drawn from small- and medium-sized manufacturing firms and provide 

regular strategic, policy, and programmatic input directly to the designated representative of the 

applicant. A Non-Federal Entity that is a nonprofit organization with multiple programs and MEP

Center program activities are not a primary activity of the applicant may establish an Advisory 

Committee, instead of an Oversight Board, that conforms to membership requirements as set 
NIST MEP General Terms and Conditions 4 February 2016

forth above.

In determining whether the MEP Center is a primary activity of a Non-Federal Entity, MEP will 

consider unique factors and circumstances such as, but not limited to, (1) the proportion of MEP 

Center funding (both federal dollars and non-federal match) relative to the applicant’s funding [or 

budget] for its other programs and activities, or (2) the duration of other funding sources over 

time.

Advisory Committee members may not concurrently serve on more than one MEP Center 

Advisory Committee or serve as a vendor or provide contractual services to the applicant or to a 

Subrecipient. Recipients shall have bylaws or equivalent governance documents setting forth the 

roles, responsibilities, and procedures of its Advisory Committee, including a conflict of interest 

policy to ensure relevant relationships are disclosed and appropriate recusal procedures are in 

place. 

C. Compliance with Oversight Board and/or Advisory Committee Requirements. If an MEP 

Center’s Oversight Board or Advisory Committee (as the case may be) does not meet the 

requirements of this section at any time during the term of an MEP Center award, the Center 

must promptly disclose the deficiencies to the MEP FPO and RM and must ensure that its 

Oversight Board or Advisory Committee conforms to the requirements of this term 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. An MEP 

Center not in compliance with the requirements of this section may be required to provide a 

detailed plan to the MEP FPO and the MEP RM for coming into compliance with this section. In 

addition to other appropriate enforcement actions pursuant to 2 C.F.R. Section 200.338, 

payments of federal award funds may be suspended unless and until the NIST Grants Officer, in 

consultation with the MEP Program Office, determines that an MEP Center’s Oversight Board 

and/or Advisory Committee is in conformance with the requirements set forth in this section. 

Upon request, an MEP Center shall provide the MEP FFO and RM with copies of the 

organizational documents for its proposed Oversight or Advisory Committee and Governance, 

including articles of organization, ratified by-laws and conflict of interest policies.

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 – Non-Construction 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 unprocessed any documents it receives that do 

not comply with this section. In addition, NIST may request appropriate documentation from a Non-
NIST MEP General Terms and Conditions 5 February 2016

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 (December 26, 2014). 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/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.05 of the DOC Financial Assistance Standard Terms and Conditions (December 26, 2014).

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, banks, trust companies, or other financing or financial institutions 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 changes to a NonFederal Entity’s EIN, DUNs number or unique entity identifier number. (See Section A.07. of the

DOC Financial Assistance Standard Terms and Conditions (December 26, 2014.)
NIST MEP General Terms and Conditions 6 February 2016

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 NonFederal 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 non-Federal) 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 FPO and 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(b)(6), 

(7).

The Center is responsible for ensuring that all costs charged against, and that all non-Federal

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 (December 26, 2014). 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.

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

Entity 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 Non-Federal 

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, thirdparty contributors and other strategic partners; and 

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

financial and technical reports, maintenance of a functioning financial management 
NIST MEP General Terms and Conditions 7 February 2016

system that satisfies the requirements found in 2 C.F.R. Section 200.302, in order 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 Non-Federal Entity in writing as to 

whether its temporary outsourcing request is approved. 

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

in MEP General Terms and Conditions, Section 12.

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

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

J. 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 MEP cooperative

agreement. See also Section K.03.c. of the DOC Financial Assistance Standard Terms and

Conditions (December 26, 2014).

9. INTERACTIONS WITH NIST AND MANUFACTURING EXTENSION PARTNERSHIP CENTERS

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

companies, universities, 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(c)(3)(C).

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

avoid duplication of effort, the Non-Federal Entity shall cooperate with NIST and the other NIST

MEP organizations 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 System.

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 System peers with special expertise or 

experience.
NIST MEP General Terms and Conditions 8 February 2016

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

The minimum non-Federal cost-sharing ratio required by 15 C.F.R. Section 290.4(b) is at least 50 

percent of the total project cost for the first through third years of operation, with an increasing 

minimum non-Federal cost share contribution beginning in the fourth year of the award as follows:

Year of Center Operation Maximum NIST Share Minimum Non-Federal Share

1-3 1/2 1⁄2

4 2/5 3/5

5 and beyond 1/3 2/3

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.

The Non-Federal Entity may establish, through its leveraged partnerships, a cost share ratio

exceeding the required cost-sharing ratio. The Non-Federal Entity is responsible for the

management of the overall program as defined in the Required Plans and will document and report

on the entire activity of the project.

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 

identified in the above chart 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 nonFederal cost share and may result in a corresponding reduction (based on the Federal/non-Federal

cost sharing ratio) to the amount of Federal funds under the award.

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 2 C.F.R. Section 200.306 and Section 

B.04 of the Department of Commerce Financial Assistance Standard Terms and Conditions

(December 26, 2014). 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. Types of Non-Federal Cost Share. Non-Federal cost share can be contributed by the Center,
NIST MEP General Terms and Conditions 9 February 2016

subrecipients, and third parties. Contractors may not provide any form of cost share. Per 15

C.F.R. Section 290.4(c), the Non-Federal Entity may, to the extent expended for allowable project

costs, count as part of its non-Federal cost share:

• Dollar contributions from State, county, city, industrial, or other sources;

• Revenue from licensing and royalties;

• Program Income (as discussed in Section 12 below);

• [Third party] in-kind contributions of full time personnel;

• [Third party] in-kind contributions of part time personnel, equipment, software, rental value of

centrally located space (office and laboratory), and other related contributions up to a

maximum of one-half of the Non-Federal Entity’s annual share.

Non-Federal cost share contributions must satisfy the criteria set forth in 2 C.F.R. Section 200.306,

and in 15 C.F.R. Section 290.4 in order to be allowable under an MEP award.

B. Documenting Cash Contributions of Non-Federal Cost Share. For purposes of 15 C.F.R.

Section 290.4(c)(1), 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. All third party non-cash contributions are 

considered “in-kind.” Per 2 C.F.R. Section 200.96,

Third-party in-kind 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 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 contributions are not subject 

to Federal reimbursement or payment.

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/irs-pdf/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;
NIST MEP General Terms and Conditions 10 February 2016

• 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.;

• 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; and

• For in-kind contributions of personnel, the percentage of time that such personnel will be 

dedicated to the MEP Project. If the percentage of time is 100% dedicated to the MEP 

project and personnel is classified as a full-time employee as defined under applicable 

State labor law, then the individual(s) is considered to be full time personnel under 15 

C.F.R. Section 290.4(c)(4). Therefore, the 50% in-kind limitation under 15 C.F.R. Section

290.4(c)(5), would not apply.

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 200.330(a)(6) 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 activity or

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

agreement.

A. 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 nonFederal share shall be added to the funds committed to the project by MEP and the NonFederal Entity; and must be used for the purposes and under the conditions of the MEP 
NIST MEP General Terms and Conditions 11 February 2016

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 FPO and 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 method and in 

accordance with Section G 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 method. .

B. Program Income Earned by Subrecipients. 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 subaward; 

2. Second, all program income earned in excess of that required to meet the minimum nonFederal 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 FPO and 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 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 method and in accordance 

with Section G 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 method.

C. 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.

D. 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.

E. 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.

F. 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 
NIST MEP General Terms and Conditions 12 February 2016

a special award condition.

G. 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 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 RM and to the NIST Grants Officer, 

and approved in writing by the 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 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 large amounts of UPI was reasonably unforeseeable by the Center or in other 

extraordinary circumstances faced by a Center. The NIST Grants Officer will provide the NonFederal 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 

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 Federal Program Officer 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.

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
NIST MEP General Terms and Conditions 13 February 2016

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.

If there are remaining Federal funds at the end of a five-year award period, these remaining funds

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 SF-425 within 90 days

after the expiration date of the award.

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 reporting period. 

The Non-Federal Entity shall submit a final Technical/Quarterly report within 90 days after the

expiration date of the award. Technical/Quarterly Report details are accessible on the MEIS 

website (https://meis.nist.gov/).

C. 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 and B.02 of the Department of Commerce Financial Assistance Standard Terms and 

Conditions (December 26, 2014). 

15. PROGRAM PERFORMANCE REVIEWS

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

biennial merit reviews in accordance with 15 U.S.C. 278k(c)(5) and 15 C.F.R. Section 290.8

(collectively, a Program Review). 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.
NIST MEP General Terms and Conditions 14 February 2016

Within the 12-month operating year, NIST MEP will conduct the appropriate Program Review. This

review will focus on the Center’s strategic alignment to the NIST MEP 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 Program Review will be communicated to the Non-Federal Entity and

recommendations provided in the Program Review should be incorporated by the Non-Federal Entity

into the Required Plans for the next year of the project and submitted to NIST MEP for approval 

prior to the end of the current project year. In accordance with 2 C.F.R. Sections 200.338-200.342,

NIST may implement appropriate enforcement action, including but not limited to cost

disallowances, suspension, termination, or other enforcement action, if the Non-Federal Entity does

not receive a positive evaluation in any required Program Review, including reviews conducted

following the obligation of funds for this award or amendment.

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 FPO and RM. Each item shall consist of an

electronic or paper copy, submitted in the format and within the timeframe specified within the 

cooperative agreement.

18. RECORD-KEEPING

The Non-Federal Entity shall keep complete and accessible 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 F. of the Department of Commerce Financial Assistance Standard 

Terms and Conditions (December 26, 2014). 

20. ENFORCEMENT AND TERMINATION
NIST MEP General Terms and Conditions 15 February 2016

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 (December 26, 2014), 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 Non-Federal 

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 information 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. 

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 the December 26, 2014, Department of Commerce, 

Standard Terms and Conditions, Number B.07, page 13, and include performing the activities listed 

below.

The following documents are required to be submitted as part of the closeout:

• Final Financial Status Report (SF425) to cover last quarter of the award period.

• Final Technical/Performance Progress Report to cover last quarter of the award period.

• Patent Report (to be provided) - To fulfill this requirement, please check the appropriate box on 

the form and sign your name. 

• Tangible Personal Property Report (SF-428, SF-428B, SF-428S), where applicable – standard 

report used to report all equipment purchased with an acquisition cost of $5,000 or more and 

reportable residual unused supplied having a fair market value of $5,000 or more. Items with a 

current fair market value of $5,000.00 or more must be listed, along with unused supplies with a 

residual value of $5,000 or more.
NIST MEP General Terms and Conditions 16 February 2016

NOTE: If there are no items of equipment or supplies to report; write a comment in Section 8 of 

form SF-428 stating that “no items of equipment meeting the $5,000 threshold and no unused 

supplies have a residual value of $5,000.00 or more to report”. Complete the top section of form 

SF-428 B and check 1.d. A fillable form can be downloaded at:

http://www.whitehouse.gov/omb/grants_forms