California Code of Regulations › Title 10 - Investment › Chapter 7.7 - Department of Commerce: Competitive Technology Program › Article 5 - Consortia › Section 5451 - Sub-Solicitation Requirements

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				An applicant shall be eligible to submit an application for a consortium
				project to fund sub-projects if the applicant is a consortium meeting all the
				requirements of Section
				5450.
(b) The only circumstance under which an
				applicant shall be authorized to submit an application without identifying the
				specific projects to be funded is when a sub-solicitation will be used by a
				consortium project. Such projects require a sub-solicitation when state funds
				will be awarded to third parties pursuant to an application process to occur
				after the grant is awarded to the applicant. No funds shall be disbursed or
				expenses incurred for awards to third parties pursuant to a sub-solicitation
				until the agency has approved in writing the applicant's compliance with the
				subsection (c) requirements.
(c) A
				sub-solicitation shall be approved by the agency upon compliance with all of
				the following:
(1) the sub-solicitation is
				approved by the governing board of the consortium;
(2) the sub-solicitation prohibits
				discrimination by applicants, and requires compliance with state and federal
				anti-discrimination laws;
(3) the
				sub-solicitation specifies that upon award of a sub-solicitation grant, the
				parties shall execute an agreement which includes the requirements contained in
				the State Administrative Manual covering contracts between the state and
				contractors. The agreement shall be solely between the applicant and the
				sub-solicitation grantee, except for any indemnification clauses, which shall
				benefit the state;
(4) the
				sub-solicitation must be advertised both within the scientific and business
				community served by the consortium and to other interested parties;
(5) the sub-solicitation must state that:
(A) costs will be paid on a cost
				reimbursement basis;
(B) the issue
				of ownership and use of intellectual property will be resolved in the
				sub-solicitation grant agreement;
(C) sub-solicitation applicants must list all
				companies which will participate in the project, and if no companies will
				participate, must specify why;
(6) the sub-solicitation must include
				provisions for repayment of the grant to the consortium in the event of
				material non-compliance with the agreement:
(7) the sub-solicitation subject area is
				consistent with the consortium's technology agenda as that term is defined in
				Section 5450(b);
				and
(8) the process used to select
				winning sub-solicitation projects must be in writing, include objective
				criteria based upon a competitive process, and be approved by the consortium
				governing board;
(9) projects
				funded pursuant to a sub-solicitation must include a plan for management of the
				project while it is being funded; and
(10) the governing board of the consortium
				must establish a time line for regular review of the project, including the
				type of review to be conducted. This review shall be conducted by either the
				governing board or its designated representative.