Hollings MEPGeneral Terms

   andConditions  

February 2015
NIST MEP General Terms and Conditions 1 February 2015

TABLE OF CONTENTS

1. AWARD INSTRUMENT .......................................................................................................................... 2

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

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

4. USE OF COOPERATIVE AGREEMENTS AND STATEMENT OF SUBSTANTIAL INVOLVEMENT .... 3

5. COOPERATIVE AGREEMENT AWARD PERIODS ............................................................................... 4

6. STATEMENT OF WORK AND REQUIRED PLANS ............................................................................... 4

7. CENTER OVERSIGHT BOARD ............................................................................................................. 4

8. SIGNATORY AUTHORITY FOR AWARD DOCUMENTS ...................................................................... 4

9. NOTIFICATIONS AND PRIOR APPROVALS ........................................................................................ 5

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

11. COST SHARING AND MATCHING ........................................................................................................ 8

12. MONITORING OF SUBRECIPIENTS ................................................................................................... 10

13. PROGRAM INCOME ............................................................................................................................ 11

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

15. FINANCIAL AND TECHNICAL REPORTING (CLARIFICATION) ........................................................ 13

16. PROGRAM PERFORMANCE REVIEWS ............................................................................................. 14

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

18. REPORTS, SURVEYS, STUDIES, AND MANUALS ............................................................................ 15

19. RECORD-KEEPING ............................................................................................................................. 15

20. AUDITS ................................................................................................................................................. 15

21. ENFORCEMENT AND TERMINATION ................................................................................................ 15

22. CLOSEOUT .......................................................................................................................................... 15
NIST MEP General Terms and Conditions 2 February 2015

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, 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 21).

1. AWARD INSTRUMENT

This cooperative agreement is a funding instrument that is based upon the cooperative or joint 

implementation of manufacturing extension activities. This agreement provides the framework for 

the joint execution of these activities between the Recipient operator of the MEP Center, hereinafter

referred to as a Center or Recipient, and the National Institute of Standards and Technology (NIST), 

Hollings Manufacturing Extension Partnership (NIST MEP). 

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 Recipient 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 Recipient’s 

Operating or other required plans, 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; Federal and Department of Commerce regulations; 

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 Recipient’s Operating and other required plans; and 

lastly, the technical plan submitted by the Recipient with its request for NIST MEP funding. The 

Recipient 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 Recipient’s 

Operating Plan and/or other required plans submitted by the Recipient. 
NIST MEP General Terms and Conditions 3 February 2015

4. USE OF COOPERATIVE AGREEMENTS AND STATEMENT OF SUBSTANTIAL INVOLVEMENT 

In accordance with 31 U.S.C. Section 6305 and 2 C.F.R. Section 200.24, NIST will issue 

cooperative agreements as the funding instrument for base MEP awards. NIST involvement under 

base MEP 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 this cooperative agreement may include the activities described in MEP General Term and 

Condition 10, as well as 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 

Recipient 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 Recipient organization to define, understand, and resolve issues pertaining 

to the successful implementation of the MEP project. 

The Recipient shall: 

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

 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 the award are detailed in the NIST MEP cooperative 

agreement. 
NIST MEP General Terms and Conditions 4 February 2015

5. 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 as a multi-year award). Annual renewal funding for an existing MEP Center may be 

awarded without competition 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 

Recipient’s compliance with the terms and conditions of the MEP award; applicable laws and 

policies; and the availability of funds. 

6. STATEMENT OF WORK AND REQUIRED PLANS 

The tasks to be performed by the Recipient under this award are detailed in the approved Operating 

Plan. Operating Plans shall incorporate strategic planning efforts, and must detail project progress 

on the previous year’s plan and describe planned activities for the following year. The Operating 

Plan must be consistent in form and substance with the current MEP Operating Plan Guidelines, 

which may be amended from time to time. 

If any modifications are required to the Operating Plan or to other plans during the operating period, 

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

Regional Manager for Strategic Transition (RMST) in writing and are not effective unless and until 

approved in writing by the NIST Grants Officer. These modifications will be incorporated as 

amendments to the cooperative agreement. 

7. CENTER OVERSIGHT BOARD 

Each Center shall establish and maintain an oversight board that is broadly representative of local 

stakeholders with a majority of board members drawn from local small- and medium-sized 

manufacturing firms. Members of a Center’s oversight board may not concurrently serve on more 

than one Center’s oversight board. If a Center’s oversight board does not meet the requirements of 

this paragraph at any time during the term of an MEP award, the Center must disclose the 

deficiencies to the MEP FPO and RMST and must submit a detailed plan to the MEP FPO and 

RMST for bringing its oversight board into compliance with this term within 12 months. Additionally, 

each Center oversight board shall adopt bylaws governing the operation of the board, including a 

conflict of interest policy to ensure relevant relationships are disclosed and proper recusal 

procedures are in place. Upon request, a Center shall provide the MEP FPO and RMST and/or 

NIST Grants Officer with copies of its organizational documents, including articles of incorporation 

or charters, ratified by-laws and conflicts of interest policies. 

8. SIGNATORY AUTHORITY FOR AWARD DOCUMENTS 

The NIST MEP Program does not authorize the delegation of signatory authority by the Recipient to 

any other organization or to third-party individuals. For purposes of the MEP cooperative agreement, 

the Recipient’s signatory authority must be a duly authorized direct employee of the Recipient or a 

duly authorized member of the Center’s oversight or other governance board that is acting in a 

fiduciary capacity to the Recipient. Documents and award actions subject to this policy include: CD450, Financial Assistance Award; CD-451, Amendment to Financial Assistance Award; CD-511, 
NIST MEP General Terms and Conditions 5 February 2015

Certification Regarding Lobbying; SF-424, Application for Federal Assistance; SF-424B, Assurance 

– Non-Construction Programs; SF-425, Federal Financial Report; the Certification Regarding 

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

Delinquent Federal Tax Returns and all other required forms, agreements, certifications and other 

documents related to the MEP award executed on behalf of the Recipient. Access to the Center’s 

ASAP account must be limited to a duly authorized direct employee of the Recipient or a duly 

authorized representative of the Center’s oversight or other governance board that is acting in a 

fiduciary capacity to the Recipient. NIST will return to the Recipient unprocessed any documents it 

receives that do not comply with this requirement. 

9. NOTIFICATIONS AND PRIOR APPROVALS 

The Recipient 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). For program or budget 

changes requiring prior approval from the NIST Grants Officer, a Center is to work with the NIST 

MEP FPO/RMST to update, and amend, if necessary, the annual Operating Plan. Changes will 

become effective via an amendment to the award, signed 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/Operating Plan 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 Recipient, subrecipients, contractors, or third-party 

contributors, including but not limited to the development of tools, systems, or other resources 

not discussed in the Recipient’s Operating Plan and included in the currently approved project 

budget. 

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 Recipient’s Operating Plan 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 Recipient’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. Recipient Changes. A Recipient 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 Recipient must immediately notify the NIST Grants 
NIST MEP General Terms and Conditions 6 February 2015

Officer in writing concerning any name changes or changes to a Recipient’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.) 

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

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

approval of the Recipient’s Operating Plan. An explanation of the Recipient’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 Recipient’s Operating Plan. NIST 

requires that copies of all fully executed subawards, contracts, and third party contributor 

agreements approved as part of the Recipient’s Operating Plan, 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 MEP FPO and RMST. 

In addition, subawards, contracts, and third party contributor agreements proposed by the 

Recipient subsequent to NIST’s approval of the Recipient’s Operating Plan and having a 

budgeted amount of $150,000 or more (combined Federal and non-Federal), including 

subawards, contracts and third party contributor agreements that when added to the value of 

prior subawards, contracts or third-party contributions to or by the same (or affiliated) entity within 

the same Center operating year have a total combined value of $150,000 or more, shall be 

subject to the prior written approval by the NIST Grants Officer. 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, as adopted by the Department of 

Commerce at 2 C.F.R. Section 1327.1, 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 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; 

 
NIST MEP General Terms and Conditions 7 February 2015

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

implementation of financial and program policies and procedures impacting the Recipient’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 

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 Recipient to temporarily 

outsource its management and oversight responsibilities under an MEP award. If an applicant is 

proposing such a structure, the applicant must include with its application a detailed explanation 

and accompanying documentation (e.g., copies of draft contracts or other agreements) 

supporting its outsourcing request. 

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

in MEP General Terms and Conditions, Section 13. 

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

period(s), as discussed in MEP General Terms and Conditions, Section 14. 

J. Foreign Travel. The Recipient 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 Recipient 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). 

10. 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). 

 
NIST MEP General Terms and Conditions 8 February 2015

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

avoid duplication of effort, the Recipient 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, 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 Recipient 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 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 Operating Plans (or other required 

plans), as soon as the need for such revisions are identified either by NIST or the Recipient. 

11. 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 

(See Department of Commerce Financial Assistance Standard Term and Condition B.04 for the 

treatment of cost sharing). Minimum cost share requirements must be met annually; there can be 

no carryover of excess cost share from one year to the next. 

The Recipient may establish, through its leveraged partnerships, a cost share ratio exceeding the 

required cost-sharing ratio. The Recipient is responsible for the management of the overall program 

as defined in the Operating Plan and Budget and will document and report on the entire activity of 

the project. 

If a Recipient 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 Recipient 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 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 Recipient’s approved project budget and must 
NIST MEP General Terms and Conditions 9 February 2015

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. 

Costs incurred as non-Federal cost share are subject to the same allowability requirements as 

Federally-funded costs. The disallowance of any contributed costs as a result of an audit could 

result in a Recipient 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, subrecipients, and third parties. 

Contractors may not provide any form of cost share. Per 15 C.F.R. Section 290.4(c), the Recipient 

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; 

 Fees for services performed; 

 [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 Recipient’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 contributions, whether cash or in-kind, are counted towards a Recipient’s non-Federal 

share contribution in accordance with 2 C.F.R. Section 200.306 and to the extent that such third 
NIST MEP General Terms and Conditions 10 February 2015

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 Operating Plan: 

 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.; 

 The allocation method(s) used by the Recipient for purposes of allocating third party inkind 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 Recipient. 

12. 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. 
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13. 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 Recipient 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 Recipient; 

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 Operating Plan or in a separate written 

communication to the MEP FPO and RMST 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 (referred to below as UPI) 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. See Section 13.G. below concerning requests by Centers for the carry 

forward of UPI. 

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 Operating Plan or in a separate written communication to the MEP FPO and 

RMST 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 (referred to below as UPI) generated by a 

subrecipient must be remitted to the Center by the subrecipient, and must be accounted for 

and expended by the Center in accordance with the terms and conditions of the MEP 

award. See Section 13.G. below concerning requests by Centers for the carry forward of 

UPI.
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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 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 using the additive approach 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 Operating Plan or in a 

separate written communication to the NIST MEP FPO and RMST 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 RMST 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 

Recipient with written approval or denial of a request to carry forward UPI. 

(4) Additional NIST MEP funding may be withheld until a Recipient’s UPI level is acceptable 

to NIST. 

(5) Upon close-out of an MEP award, the NIST Grants Officer will provide the Recipient with 

closeout instructions, including instructions regarding disposition of program income. 

14. 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 Operating Plan 

 
NIST MEP General Terms and Conditions 13 February 2015

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 

Operating Plan 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. 

In both situations, the Center should also submit: 

 Revised budget, subrecipient table, and SF-424A for the prior year to reflect where the 

funds were not expended. 

 An SF-424 and SF-424A for the current year that shows the combined annual base award 

amount and UFF amount. 

 An Operating Plan budget table that includes the UFF dollar amount and reflects the 

appropriate cost share. 

 An Operating Plan budget narrative that includes a description of the use of UFF. 

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.

15. FINANCIAL AND TECHNICAL REPORTING (CLARIFICATION) 

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

apply to MEP cooperative agreements: 

A. Financial Reports. The Recipient 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 semiannual reporting period. The Recipient shall submit a final SF-425 within 90 days after the 

expiration date of the award. 
NIST MEP General Terms and Conditions 14 February 2015

B. Technical Reports. The Recipient 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 

Recipient 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/). 

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). 

16. 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. 

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 Recipient 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 Recipient and recommendations 

provided in the Program Review should be incorporated by the Recipient into the Operating Plan 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 Recipient does not receive a positive evaluation in 

any required Program Review, including reviews conducted following the obligation of funds for this 

award or amendment. 

17. 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. 
NIST MEP General Terms and Conditions 15 February 2015

18. 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 MEP FPO and RMST. Each item shall consist of an 

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

cooperative agreement. 

19. RECORD-KEEPING 

The Recipient 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. 

20. 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). 

21. 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 (December 26, 2014), a 

Recipient’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 Recipient; 

 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 Recipient’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. 

22. CLOSEOUT 

The NIST Grants Office will contact the Recipient with closeout information prior to the end of the 

MEP award, per 2 C.F.R. Section 200.343.