Source: https://nsf.gov/pubs/policydocs/pappg18_1/pappg_9.jsp
Timestamp: 2018-06-23 20:01:22
Document Index: 155251041

Matched Legal Cases: ['§ 200', '§ 200', '§ 200', '§ 200', '§ 200', '§ 200', '§ 200', '§ 200', '§ 200', '§ 200', '§ 200', '§ 200', '§ 200', '§101', '§ 201', '§ 200']

NSF 18-1 January 29, 2018
NSF encourages the increased involvement of academic researchers and educators with industry and private entrepreneurial ventures, but recognizes that such interactions carry with them an increased risk of conflicts of interests. AAG Chapter IV.A contains NSF’s policy on conflict of interest.
2 CFR § 200 prescribes three separate sets of standards related to the financial and program management of Federal grants, each governing a different area: financial management, property management, and procurement management. Chapter IX.C, IX.D and IX.E implement these standards, and extend their applicability to all types of grantees of NSF grants, including for-profit organizations.
2.	An organizational conflict of interest policy should require that each investigator disclose to a responsible representative of the organization all significant financial interests of the investigator (including those of the investigator’s spouse and dependent children): (i) that would reasonably appear to be affected by the research or educational activities funded or proposed for funding by NSF; or (ii) in entities whose financial interests would reasonably appear to be affected by such activities.
b.	any ownership interests in the organization, if the organization is an applicant under the Small Business Innovation Research Program or Small Business Technology Transfer Program;
e.	an equity interest that, when aggregated for the investigator and the investigator’s spouse and dependent children, meets both of the following tests: does not exceed $10,000 in value as determined through reference to public prices or other reasonable measures of fair market value, and does not represent more than a 5% ownership interest in any single entity; or
f.	salary, royalties or other payments that, when aggregated for the investigator and the investigator’s spouse and dependent children, are not expected to exceed $10,000 during the prior twelve-month period.
5.	The organizational policy must include adequate enforcement mechanisms, and provide for sanctions where appropriate.
6.	The organizational policy must include arrangements for keeping NSF’s Office of the General Counsel (OGC) appropriately informed if the organization finds that it is unable to satisfactorily manage a conflict of interest and if the organization finds that research will proceed without the imposition of conditions or restrictions when a conflict of interest exists.54
a.	Examine a copy of the organization’s conflict of interest policy to ascertain if the policy includes procedures for addressing unmanageable conflicts.
b.	Contact the grantee organization’s representative to determine what actions the organization plans/has taken with respect to the reported unmanageable conflict of interest, ensuring consistency with their conflict of interest policy.
B.	Responsible Conduct of Research (RCR)
The responsible and ethical conduct of research (RCR) is critical for excellence, as well as public trust, in science and engineering. Consequently, education in RCR is considered essential in the preparation of future scientists and engineers. Section 7009 of the America Creating Opportunities to Meaningfully Promote Excellence in Technology, Education, and Science (COMPETES) Act (42 USC 1862o–1) requires that "each institution that applies for financial assistance from the Foundation for science and engineering research or education describe in its grant proposal a plan to provide appropriate training and oversight in the responsible and ethical conduct of research to undergraduate students, graduate students, and postdoctoral researchers participating in the proposed research project."
The language specified below provides NSF’s implementation of Section 7009.
a.	a.	An institution must have a plan in place to provide appropriate training and oversight in the responsible and ethical conduct of research to undergraduates, graduate students, and postdoctoral researchers who will be supported by NSF to conduct research. As noted in Chapter II.C.1e, institutional certification to this effect is required for each proposal.
b.	While training plans are not required to be included in proposals submitted to NSF, institutions are advised that they are subject to review, upon request.
c.	An institution must designate one or more persons to oversee compliance with the RCR training requirement.
NSF grantees are required to have financial management systems which meet the requirements of 2 CFR § 200.302.
2 CFR §§ 200.310-316 prescribe standards for managing and disposing of property furnished by the Federal government or whose cost was charged to a project supported by a Federal grant. In the rare instances where NSF grants involve the acquisition of real property, the real property standards of 2 CFR § 200.311 are applicable to such NSF grants. NSF implementation of the OMB standards on intangible property is contained in Chapter XI.D.
Title to materials developed and supplies purchased under an NSF grant will vest in the grantee, subject to the conditions identified in paragraph 2. below.
2 CFR § 200.312 contains a special category of "exempt property." Under that provision, any Federal agency which has statutory authority (such as NSF) may vest title in an institution of higher education, hospital or other non-profit organization without further obligation to the Federal government and under conditions the agency considers appropriate. NSF’s authority is provided by the Federal Technology Transfer Act (15 USC 3710.)
a. Title to Equipment - Non-Profit Organizations
(i) Normal Situations. Unless otherwise specified in the grant, title to equipment purchased or fabricated with NSF grant funds by a college or university or other non-profit organization will vest in the grantee organization upon acquisition. Such equipment is considered "exempt property" (see Chapter IX.D) and subject to the conditions of Chapter IX.D.2.
b.	Title to Equipment – For-Profit Organizations
Unless otherwise specified in the grant, title to equipment purchased or fabricated with NSF grant funds by a small business or other for-profit organization will vest in the government. Such equipment will be acquired and used in accordance with Chapter IX.D.2, and managed in accordance with Chapter IX.D.4.
2.	Conditions for Acquisition and Use of Equipment
c.	Equipment Usage. Equipment Usage. The equipment must remain in use for the specific project for which it was obtained in accordance with 2 CFR § 200.313 unless the provision in 2 CFR § 200.313(c)(4) applies.
d.	Equipment Sharing. The equipment must be shared on other projects or programs in accordance with 2 CFR § 200.313(c)(1).
e.	Property Management Standards. The grantee shall maintain a property management system which, at a minimum, meets the requirements of 2 CFR § 200.313(d).
f.	Competition. In accordance with 2 CFR § 200.313(c)(3), grantees shall not use equipment acquired with Federal funds to provide services to non-Federal outside organizations for a fee that is less than private companies charge for equivalent services, unless specifically authorized by statute, for as long as the Federal Government retains an interest in the equipment.
(i)	In accordance with 2 CFR § 200.313(e), NSF may identify items of equipment having a unit acquisition cost of $5,000 or more where NSF reserves the right to transfer the title to the Federal government or to a third party named by the Federal government.
The National Science Board recognizes that there may be circumstances where NSF grantees use NSF-supported research instrumentation to provide services in commerce for a fee, to an extent that such practice, (1) detracts from the performance of their obligation under the grant, and/or (2) may have a material and deleterious effect on the success of private companies engaged in the provision of equivalent services. It is contrary to the NSF's intent for grantees to use NSF-supported research instrumentation or facilities to provide services for a fee in competition with private companies in a manner that is prohibited by 2 CFR § 200.313(c)(3).
4.	Property Management Standards When Title Retained by NSF
In the event that title to equipment or property is vested in the Federal government, such property shall be marked, tagged or segregated in such a manner as to indicate clearly its ownership by the government. Unless otherwise provided in the grant, such government property shall be used only for the performance of the project. The grantee shall submit an annual inventory report by NSF grant number of such property having an original acquisition cost of $5,000 or more, to the NSF Property Administrator, Division of Administrative Services (DAS). A physical inventory of Government-Owned Equipment (GOE) shall be conducted every two years pursuant to 2 CFR § 200.313(d)(2). Upon expiration of the grant, the grantee shall report the property to the Property Section for further agency utilization. (See Chapter IX.D.5.
(i)	To access a worldwide inventory of available excess personal property, an eligible grantee should contact the Property Administrator (fsrpts@nsf.gov), DAS to become a registered user of GSAXcess® (GSA’s online personal property system located at: http://gsaxcess.gov/.
(ii)	Grantees can visit GSAXcess® to screen for items that are necessary to accomplish the NSF supported project by searching GSA’s inventory and adding items to the Selection Cart. Excess personal property is reported by Category (Federal Supply Classification (FSC)) and includes the item control number, name, location, quantity available, and unit of issue, original acquisition cost, surplus release date and condition of items posted. In some instances a photograph of the property item is available.
(e)	the statement "Transfer is in accordance with the provisions of 41 CFR §101.43." The grantee should also verify the automatic release date with GSA to preclude loss of property before the transaction is processed.
(vii)	The written justification should detail the scientific need for the equipment as it relates to the particular grant under which the equipment is to be used, and should cite the conditions of this section as being binding upon the grantee, should the property be acquired.
(i)	NSF will sponsor the transfer of excess government personal equipment to eligible organizations only under project grants. As defined in the GSA regulations, “project grants” refers to grants made for specific purposes with established termination dates, e.g., grants made to specific organizations to perform specific tasks within set time frames and costs. No excess property may be acquired on behalf of conference, publication-support grants or travel grants. In addition, on "summer-type training grants," no property may be acquired after the training period has terminated. Further, grantees should exercise careful judgment on the appropriateness of requesting excess personal property when only a short period of time exists between the date of the property request and the completion or successful accomplishment of the NSF-supported activity. GSA will consider items of personal property as research equipment for transfer without reimbursement to NSF for use by a grantee when the property requested has a unit acquisition cost of $1,000 or more and is within Federal Supply Classification Groups:
Automatic data processing equipment must be acquired under the provisions in 41 CFR § 201.23.
(i)	While no particular type of classification of accounts or inventory system is required, NSF expects that the responsible officials of the grantee organization will exercise careful stewardship of excess government personal property acquired in support of projects undertaken with NSF’s financial assistance. In accordance with Chapter IX.D.5.e, relating to the dollar limitation on the amount of excess government personal property provided by NSF, grantees should maintain appropriate inventory procedures that will enable them to identify those requests which require more extensive administrative and scientific justification. In those cases where title to excess government personal property remains with the government, the grantee must maintain suitable records to identify its location, description, utilization and value. The use of excess government personal property under an NSF grant is subject to inspection and audit by representatives of NSF at all reasonable times during the life of the grant under which the property was acquired.
NSF grantees shall adhere to the requirements of 2 CFR §§ 200.317-326 which prescribes standards for use by grantees in establishing procedures for the procurement of supplies and other expendable property, equipment, real property and other services with Federal funds.
54Grantee notifications of conflict of interest that cannot be managed, reduced, or eliminated and awardee notifications of situations where research will proceed without the imposition of conditions or restrictions when a conflict of interest exists, must be signed and submitted by the AOR via use of NSF’s electronic systems. Back to Text