Chapter 2-400: Types of Proposals

Chapter 2: Proposal Submission and Award Acceptance/Administration

Revision History

Archive of Chapter 2 prior to July 3, 2024: Chapter 2 was republished on July 3, 2024 to include a new chapter section 2-553 describing the University's compliance with regulations prohibiting the participation of Covered Individuals involved with research and development awards from federal research agencies in Malign Foreign Talent Recruitment Programs.
Archive of Chapter 2 prior to June 6, 2022: Chapter 2, specifically 2-631 and 2-640, was republished on June 6, 2022 to include clarification regarding UC Legal or campus counsel review of "Governing Law" clauses.

2-300 Responsibilities and Duties

2-600 Award Acceptance and Administration

2-700 Award Termination/Expiration/Closeout

2-999 Related University References

Chapter 2-100: Introduction

The University encourages a broad spectrum of research and creative activity of the highest possible quality, from basic to applied, across the full range of academic disciplines. “The University's commitment stems from its obligation to advance knowledge, to educate both undergraduate and graduate students, and to serve the economic and cultural needs of society.” (Faculty Handbook)

In furtherance of these goals, eligible University faculty and other approved University personnel may submit proposals to sponsors for support. Sponsors can be external organizations such as federal, state, local, foreign, and other government entities, private industry, foundations, educational institutions, and charitable organizations. In addition, the University itself acts as a sponsor in its capacity as administrator of intra-University programs under its auspices which awards funds on a competitive basis to projects for research, training, or public service.

2-110 Scope

This Manual Chapter discusses the administration of proposals and awards for support of research, scholarly or professional training, or public service programs. (See Section 2-210 on Who May Submit Proposals and Chapter 1-500, Principal Investigator Policy.) The purpose of this Chapter is to outline overall University policies upon which local contract and grant (or sponsored projects) administrative procedures for proposal/award administration are based throughout the University, including individual campuses, the Office of the President (OP), Division of Agriculture and Natural Resources (DANR) and Lawrence Berkeley National Laboratory (LBNL). The procedures required by each location are described in their respective contract and grant administration handbooks. Since every sponsor has its own guidelines or regulations and these are always subject to change, individual sponsor requirements are not covered in this Chapter. Sponsor requirements must be reviewed in relation to the University policies outlined in this Contract and Grant Manual.

2-120 Applicability

The policies outlined in this Chapter apply to the submission of proposals and acceptance and administration of awards from extramural sponsors for research, scholarly and professional training or public service programs related to research or to scholarly or professional training in any University organizational unit where such activity occurs. In addition, they should be used as a guide for intra-University programs as intra-University program terms should be consistent with the policies in this Manual.

Prior to submission or acceptance, all proposals and awards for either extramural or intramural support must be reviewed and approved by the campus [or Laboratory] Contract and Grant or Sponsored Projects Office or other formally designated office for consistency with campus [or Laboratory] and University-wide policies and procedures. This does not apply to: construction grants and contracts to the extent that such awards are subject to the policies and procedures of the University Facilities Manual; work-study programs or awards for student aid grants, scholarships, or loans which are within the scope of campus and Office of the President Student Financial Support Offices; or agreements which establish or modify programs with the Education Abroad Program. Policies relating to the solicitation and acceptance of private funded gifts and endowments are covered in the Development Policy and Administration Manual and summarized in Chapter 9 of this Manual.

2-130 Academic Policy - University Regulation No. 4

University Regulation No. 4, set forth in APM-020, states the general policy of the University concerning professional or scholarly services to external individuals or organizations including business, industry, governments, or other educational institutions. This Policy describes, in part, the types of such services which the University considers appropriate for its faculty to undertake. "Routine tests of a commonplace type" are specifically proscribed. The full text of APM-020 can be found in Chapter 1, Sections 1-320 and 1-330, of this Manual and in the Academic Personnel Manual Section APM-020, Special Services to Individuals and Organizations.

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Chapter 2-200: Solicitation Authority

"The Regents of the University of California" is the name of the corporation established under the Constitution of the State of California and charged with administering the University as a public trust. The governing body of the Corporation is known as The Board of Regents. No solicitation or application for extramural support of research, training, or public service programs shall be made officially in the name of The Regents without the prior approval of The Regents or of an authorized official of the University. This authorization is by formal delegation of contract and grant authority.

Standing Order 100.4(dd) authorizes the President of the University to solicit and accept or execute such proposals and awards, with stated exceptions. The President has redelegated this authority to the Provost and Executive Vice President, Vice President – Division of Agriculture and Natural Resources (DANR), the Director of Federal Governmental Relations, Chancellors, and the Lawrence Berkeley National Laboratory (LBNL) Director who have, in turn, re-delegated their authority, with varying levels and limitations, to the appropriate Vice Chancellors, Deans, Directors, and Contract and Grant Officers. For a discussion of the legal authorities related to the solicitation of proposals, see Chapter 13 of this Manual.

2-210 Who may Submit Proposals

The Principal Investigator policy, which describes who is eligible to submit proposals, is outlined in Chapter 1-500 of this Manual. It is also reprinted in the Faculty Handbook. Members of the Academic Senate and appointees in other eligible title groups listed in the policy may submit proposals. With the approval of a Chancellor, Vice President, or the Dean of University Extension, University personnel with other faculty and staff titles not listed may submit proposals, subject to certain conditions. (See Chapter 1-530.)

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Chapter 2-300: Responsibilities

Chapter 10, Sections 10-310 through 10-350, of this Manual describe the responsibilities and duties of Contract and Grant Officers, Principal Investigators, Deans, Provosts, Department Chairs, Organized Research Unit Directors, and other administrators of contract and grant related services in relation to the submission of proposals and acceptance of extramural awards.

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Chapter 2-400: Types of Proposals

There are basically two types of proposals: solicited and unsolicited. Their formats differ according to the type of sponsor, the purpose of the award, and the type of award instrument.

A solicited proposal responds to a specific formal sponsor solicitation. A proposal is considered unsolicited when it is submitted in conformance with the sponsor's general guidelines or general invitation to submit unsolicited proposals, but not in response to a project-specific sponsor solicitation. This distinction is important for federal awards in the context of the Competition in Contracting Act as described below in Sections 2-420 and 2-F01.

The format and the content of a solicited proposal are influenced by the type of award instrument which the sponsor plans to use. The type of award instrument is, in turn, based on a number of factors including the benefit or service which the sponsor expects to receive and the relationship which the sponsor plans to have with the project. Described below in Section 2-410 are the federal definitions of the three basic types of award instruments: grants, contracts, and cooperative agreements.

Technically speaking, in the federal system, a Request for Applications (RFA) is issued for grant awards, and a Request for Proposals (RFP), an Invitation for Bid (IFB), a Request for Quotations (RFQ) or Broad Agency Announcement (BAA) generally result in contracts. However, this strict use of these terms is generally made only by federal agencies. It is not uncommon to find other sponsors using the term, “Request for Proposals,” when the award instrument is a grant.

Chapter 19 of this Manual, "Research Funding Systems," discusses in more detail types of award instruments and their relationship to the sponsor and the work to be done.

2-410 Using Procurement Contracts and Grant and Cooperative Agreements - Public Law 97-258 and 31 USC 6301

The section of Public Law 97-258 entitled “Using Procurement Contracts and Grant and Cooperative Agreements” describes the circumstances under which the federal government should use a contract, grant, or cooperative agreement (See 2-F02). This section is a revision of the Federal Grant and Cooperative Agreement Act of 1978 which was repealed and recodified in Public Law 97-258 and 31 United States Code (USC) 6301. According to the Code, a contract should be used when:

the principal purpose of the instrument is to acquire (by purchase, lease, or barter) property or services for the direct benefit or use of the United States Government; or
the agency decides in a specific instance that the use of a procurement contract is appropriate.

Most contracts are issued on either a fixed price or a cost reimbursement basis. In a firm fixed price contract, the contractor agrees to supply the deliverables at specified times for a fixed price agreed upon at the time of the award. In cost reimbursement contracts with universities, the contractor generally receives the actual costs incurred in the performance of the contract up to a specified maximum amount.

31 USC 6304 states that a grant shall be used when:

the principal purpose of the relationship is to transfer a thing of value to the State or local government or other recipient to carry out a public purpose of support or stimulation authorized by a law [...] and
substantial involvement is not expected between the [agency and recipient].

The Code states that a cooperative agreement shall be used for the same purpose as a grant except that substantial involvement is anticipated between the sponsor and the recipient.

2-420 Competition in Contracting Act of 1984 and Amendments to the Small Business Act

The purpose of these two Acts is to "obtain full and open competition through use of competitive procedures..." Both Acts apply to the procurement of property or services by any federal agency (See 2-F01). The Competition in Contracting Act, Public Law 98-369, 41 USC 253, is implemented in the Federal Acquisition Regulations (FAR) Part 6, Competition Requirements. The Amendments to the Small Business Act, Public Law 98-72, 15 USC 14A, are implemented in FAR Part 5, Publicizing Contract Actions These Acts apply only to federal agency procurements, that is, solicitations which will result in contracts.

Any exceptions to the requirement for full and open competition as described in the regulations for both Acts require an extensive procedural determination by specific federal agency personnel that a proposal or contract fulfills the exception criteria. The exceptions allowed in FAR 6.302 are:

6.302-1 Only one responsible source and no other supplies or services will satisfy agency requirements;
6.302-2 Unusual and compelling urgency;
6.302-3 Industrial Mobilization; Engineering, Developmental, or Research Capability; or Expert Services;
6.302-4 International agreement; and,
6.302-5 Authorized or required by statute.

Federal agencies interpret and implement these regulations in various ways. Some agencies often use the exception under 6.302-3 to award universities sole source contracts based on unsolicited proposals which contain unique or innovative concepts. In addition, agencies publish Broad Agency Announcements (BAA) to solicit proposals. Any contract or grant awarded in response to a BAA is considered to have been competitively solicited. Additional guidance may also be provided via OP Research Policy Analysis and Coordination (RPAC) Research and Technology Transfer Memos (formerly Contract and Grant Memos) when necessary.

FAR Part 5 requires publication “for proposed contract actions expected to exceed $25,000, by synopsizing in the GPE [Government Point of Entry]." The “GPE” for such announcements is the Federal Business Opportunities webpage. The federal contracting officer is not required to publish a notice if a proposed contract would be awarded under one of the exception to competition reasons listed above. Federal agencies may apply these exceptions to unsolicited proposals from universities. However, each federal agency interprets and implements this exception in its own way. University policy concerning the protection of information in unsolicited proposals is provided in Chapter 17 of this Manual. Additional guidance may also be provided via OP RPAC Research and Technology Transfer Memos.

2-430 Multiple Submissions

Multiple proposal submissions, that is, the simultaneous submission of proposals for an essentially identical research, training, or public service project for extramural funding to two or more agencies, may be made. The multiple submissions should be disclosed in the proposals. This is necessary to avoid conflicts in patent rights and other commitments should two or more sponsors jointly offer support for the same project. Authority to approve multiple submissions does not include the authority to undertake fund-raising campaigns for either partial or total support of a research, training, or public service project. If the intention behind multiple submissions is to conduct a fund-raising campaign, such an activity is subject to the provisions of the Development Policy and Administration Manual. The policy on fund-raising campaigns and the authority to approve such campaigns are outlined in Chapter 9-300, of this Manual.

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Chapter 2-500: Proposal Review

Campus and Laboratory Contract and Grant (or Sponsored Projects) Offices provide guidance to Principal Investigators on the preparation of proposals for extramural sponsors as well as for intra-University programs. Contract and Grant Offices are responsible for the review of proposals for research, scholarly or professional training, or public service related either to research or to scholarly or professional training. The purpose of this review is to assure that proposals comply with applicable University policies and sponsor guidelines or regulations. Authority to approve a proposal by signing it rests with University officials, who have formal delegation of contract and grant authority, or their designees.

At a minimum, a proposal normally describes the scope of the work proposed, states how much it will cost, and names the responsible Principal Investigator or Project Director. For purposes of reporting proposals and awards to the Corporate Contract and Grant Information System (CGX), it is important that the proposal have a descriptive title. (See Sections 2-581 and 2-660.) The scope of work must be as explicit as possible in proposals submitted to commercial sponsors in order to avoid any conflicts over patent rights given to the sponsor.

2-510 Special Reviews or Coordination

Each Contract and Grant or Sponsored Projects Office requires that proposals be submitted to it with a completed proposal approval form. This approval form is developed by the Contract and Grant Office to provide a checklist of items to be addressed as part of the proposal development, approvals required in accordance with University policies, and signatures required from other University officials. (See Section 2-570 below.)

Questions concerning such regulatory issues as the use of animal or human subjects, recombinant DNA, pathogenic agents, and hazardous materials are included to assure compliance with federal and State regulations and University policies governing these areas. Chapters 18, Protection of Research Subjects, and 3, Environmental Health and Safety, of this Manual provide further information on these subjects.

Approvals by Department Chairs, Unit Heads, or Deans are needed in order to assure the appropriateness of any commitments of University resources required by the proposed project as well as the appropriateness of the project in accordance with University Regulation No. 4. (See Section 2-130.) Such commitments may include laboratory space, computer facilities, cost of renovations, personnel, and cost sharing. The Principal Investigator's proposed effort, salary, and any leave or release time in the proposal require the approval signatures of the Department Chair, Unit Head or Dean, as applicable, according to local procedures.

2-511 Use of Words in Proposed Titles Designated for ORUs

The Administrative Policies and Procedures Concerning Organized Research Units indicate that organized research units are usually designated by the terms: Institute, Laboratory, Center or Station in their name. The policies state that

In the solicitation of extramural funds for a research project by a unit that has not been granted ORU status, care should be taken not to use terminology nor make representations which suggest that the proposing unit is in fact a University-approved ORU or is about to become one. The designations enumerated in the following paragraphs [sic., Institute, Laboratory, Center or Station] shall not be used as formal labels for units that are not ORUs, with the exception of Center, as noted. If a unit is likely to evolve into an ORU after a trial period of operation, the possibility should be mentioned at a suitable stage in the planning; in such a case, the designation Center or Project is suitable.

The policies explain that the word “Center”

May be used for research units not formally constituted as ORUs upon approval by the Chancellor after consultation with the divisional Academic Senate. Before approval is granted for a Center that is not an ORU, the campus may stipulate terms and conditions such as a process for appropriate periodic review, including administration, programs, and budget; appointment of a director and advisory committee; an appropriate campus reporting relationship; and progress reports. Station: a unit that provides physical facilities for interdepartmental research in a broad area (e.g., agriculture), sometimes housing other units and serving several campuses. The terms Facility or Observatory may be used to define units similar in function but with more narrow interests.

See Chapter 10-140 of this Manual for further information on Organized Research Units.

2-512 Non-State-Funded Minor and Major Capital Improvement Projects

The contract and grant delegations of authority to Chancellors, Vice Presidents and LBNL Director and, subsequently, to Contract and Grant Officers as described in Chapter 13, Sections 13-700 and 13-900, of this Manual do not include proposals or awards “which require the construction of facilities not previously approved,” in accordance with the authority granted to the President in Standing Order 100.4(dd). Chancellors are delegated certain authority to approve amendments to the Capital Improvement Program for non-State funded minor capital improvement projects and for non-State-funded major capital improvement projects and to solicit and accept or execute extramural grants and contracts for construction of facilities as described in Chapter 13-1210. Review and approval of a proposal or award which involves construction or renovation of facilities should be in accordance with that Section of this Manual.

2-513 Citizenship Restrictions

Proposal application guidelines should be reviewed for any citizenship restrictions imposed by the sponsor. The University’s policy on accepting awards with citizenship restrictions is set forth in this Manual in 14-700, Funds Restricted to U.S. Citizens, and in RPAC Research & Technology Transfer Memos.

2-514 Export Controls

The University’s policies, guidance, and training for compliance with federal export control regulations in the U.S. Department of Commerce, Bureau of Industry and Security Export Administration Regulations (15 CFR Parts 700-799); U.S. Department of State, Directorate of Defense Trade Controls International Traffic in Arms Regulations (22 CFR Parts 120-130); and U.S. Department of the Treasury, Office of Foreign Assets Control (OFAC) Sanctions Program and Country Information is published on the OP Office of Ethics, Compliance & Audit Services (ECAS) website, as well as on campus websites.

As stated on that website, the University’s compliance with federal export controls is based upon maintaining an open, fundamental research environment, such that scientific data and results qualify as being in the “public domain” under The International Traffic in Arms Regulations (ITAR) and are not subject to the Export Administration Regulations (EAR) under the provisions related to “publicly available technology”, “published information and software”, “information resulting from fundamental research”, and ”educational information”. By qualifying under these sections of EAR and ITAR, the University can avoid the problems associated with “deemed exports” of technical data, and then secure any required export licenses for actual shipment of controlled items into or out of the United States. In this manner, UC can maintain its open research and education environment while also complying with the export regulations.

All sponsor proposal guidelines should be reviewed for any restrictions on the University’s right to publish or to use or share data in any manner. Further guidance on this subject can be found on the OP Office of Ethics, Compliance & Audit Services website, in Chapter 11 of this Manual, and on RPAC Research and Technology Transfer Memos.

2-520 Budget Preparation

Budgets should be prepared in accordance with the sponsor's guidelines or regulations and University policies. They should sufficiently cover all anticipated costs, both direct and indirect, which would be incurred under the work proposed. In order to ensure appropriate indirect cost recovery, proposals must comply with existing policies on indirect costs. Chapters 5 - Cost Sharing, 6 - Financial - General, 7 - Budgets and Expenditures, and 8 - Indirect Costs in this Manual provide other pertinent information for budget development. Additional guidance is issued via RPAC Research and Technology Transfer Memos.

2-521 General Considerations

The budget section of a proposal represents the Principal Investigator's best estimate of the costs that will be incurred by the proposed project. Such estimates should be based on the standards outlined in Sections 2-522 through 2-527, as supplemented by the information contained in Section 2-528 on forecasting long-range needs and in 2-529 on documenting the method for determining cost estimates. These sections describe some of the cost elements that may be anticipated for a proposed project. Additional allowable costs not described here, such as subcontracts, computer costs, and rent, are described in Chapter 7-200 of this Manual.

Proposal budgets should be as detailed as the sponsor's instructions require. Where the sponsor requires specific estimates for selected cost elements, the following standards should be adhered to in order to arrive at reasonable and consistent budget amounts for those kinds of costs. When a cost that is not generally allowed, except by special approval of the sponsor, is deemed necessary to carry out the proposed project, it should be included as a specific item in the proposal.

2-522 Salaries, Wages, and Fringe Benefits

Salaries, wages, and fringe benefits must be estimated consistently, regardless of the fund source and in accordance with an approved pay plan, rate or schedule, and published University policy. (Also see Academic Personnel Manual-600.)

Proposed University personnel salaries should be in accordance with the current academic or staff salary schedules for each particular job classification. Projected range adjustments, merit increases, and fringe benefit increases/decreases should be specified in accordance with guidance provided by the Office of the President and by the campus Human Resources Offices. (Also see Section 2-528 for forecasting increases or decreases.) Compensation must be in accordance with APM-600 et. seq., especially Section 600-80 for faculty; Personnel Policies for Staff Members: Compensation - 30 Salary; and Senior Management Group Policies: Regents Policy 7701, Appointment and Compensation; and PPSM II-71 Senior Management Supplemental Benefit Program. University policies on compensation conform with OMB Circular A-21, Cost Principles for Educational Institutions, Section J.10., Compensation for personal services.

In no event should extramural support be used as a means to increase the regular academic salary of a University faculty member. Faculty may receive additional compensation for extramurally-funded research activities as described below.

APM-600-14 states that no academic year, full-time appointee shall receive additional compensation from University sources for services directly related to the appointee's recognized duties during the academic year, that is, from the beginning of the Fall term, as established in the University calendar, through the end of the Spring term.

Extra compensation may be paid to full-time faculty members only during quarters when the faculty member is not under a service appointment. Extra compensation for honoraria or lecturers and similar services may also be permitted. (See APM-666).

APM-600-14 goes on to say that no academic year, full-time appointee shall receive compensation at a rate higher than the appointee's regular annual salary for any additional duties performed during the period between the Spring and the Fall terms (and the vacation period in the case of a fiscal-year appointee). No agreement between the University and a sponsor shall include provisions for a higher rate.

The monthly rate of extra compensation may not exceed one-ninth of the regular academic salary for an academic year appointee (See APM-600, Appendix 1). In exceptional circumstances, the Chancellor may approve payment of one eleventh of the annual salary of a fiscal-year appointee to the Professor, Astronomer, or Agronomist in the Agricultural Experiment Station series as additional compensation for work performed during his/her vacation. An appropriate number of accrued vacation days must be deducted. (See APM-600-14c.)

Faculty members participating in the University's health sciences compensation plans may receive compensation above the fiscal year salary rate in accordance with plans approved by The Regents and guidelines established by the Chancellors and approved by the President.

A member of the faculty on sabbatical leave at partial salary may receive additional salary for time devoted to certain contract or grant projects of not more than the difference between the sabbatical leave salary and the applicable full-time University salary for the period involved, providing that funds have been made available for this specific purpose by the funding agency. Collection of this sabbatical leave salary augmentation does not affect any eligibility which the faculty member has for employment during off-duty months when not on sabbatical leave. (See APM-740-18 for additional information and restrictions on compensation during sabbatical leave.) Other circumstances and restrictions for faculty receiving additional compensation are described in the APM-600. These include additional compensation for services as a consultant, lecture fees or honoraria, and manuscript reading fees.

Personnel employed in the Professional Research classification (including those in the Professional Research, Specialist, and the Postdoctoral Scholars and Project (e.g., Scientist Series) under contracts or grants should have approved titles and remuneration in accordance with the appropriate provisions of the Academic Personnel Manual, including APM Sections 310, 311, 330, and 390. Graduate Student Researcher positions are defined in APM-112.

2-523 Consultants

According to Business and Finance Bulletin BUS-43, Purchases of Goods and Services; Supply Chain Management, consultants can be used:

[O]nly when the decision is consistent with protecting the core teaching, research, service, and patient care functions of the individual campus or medical center; is in response to a demonstrated, sound business need; and minimizes to the extent possible the impact on University staff (Section III.5).

It is not appropriate to use a consultant agreement to obtain routine, non-advisory services of an individual. University policies and procedures for contracting with consultants are in Chapter 16-440 of this Manual and in Business and Finance Bulletin BUS-43, Section III.5., Employee-Supplier Relationships. In addition, sponsors may restrict payments to consultants and/or require prior approval of consultant agreements. The policy on faculty serving as consultants on projects conducted under the auspices of the University is in Academic Personnel Manual-664, Additional Compensation/Services as Faculty Consultant.

2-524 Travel

Estimates of travel costs should be made for each day of travel using Business and Finance Bulletin G-28, Policy and Regulations Governing Travel, as a guide, supplemented by COP published mileage rates, UC travel services, and other appropriate sources.

2-525 Services, Supplies, and Miscellaneous Budget Items

Good faith estimates of costs of services and miscellaneous items should be made based on past experience and telephone or written quotations (Also see BUS-43).

2-526 Equipment

Estimates of the cost of each item or piece of equipment listed should be based on a catalogue, telephone, or written quotation. The estimated cost should include sales tax, shipping, and assembly, if necessary. (See Section II.B.1. of Accounting Manual Chapter P-415-10, Capitalization of Property, Plant, and Equipment). Sales tax is not included if, at the time of purchase, title to the piece of equipment vests in the federal government. Generally, under federal grants, and also under federal contracts when the equipment costs less than $5,000, title vests in the University at the point of acquisition and sales tax is payable. (Also see BUS-43 and Chapters 7-221 and 15-220 in this Manual.)

If a piece of equipment is to be fabricated, the cost of its components plus all materials, supplies, and services from outside vendors or authorized internal recharge activities used in the fabrication process are exempt from indirect costs, if title is retained by the University and the item has a useful life expectancy of more than one year. Departmental labor, travel or other operating expenses associated with the fabrication such as salaries of Principal Investigators, graduate student researchers, or other comparable personnel who participate in the fabrication process are not included in the acquisition cost of the item and are subject to indirect costs. If the fabricated piece of equipment is a deliverable and title is not retained by the University, all costs of its fabrication are subject to indirect costs. If the fabricated item has a life expectancy of less than one year, it does not meet the definition of equipment and all fabrication costs are subject to indirect costs. For more information on the treatment of fabricated property see Accounting Manual Chapter P-415-32, and Contract and Grant Manual sections 7-205 and 15-240.

For further information about equipment and definitions, see Chapter 7-205 and 15-122 of this Manual.

2-527 Major Capital Construction or Modification of a University Facility – Amendments to the Capital Improvement Program

Any construction or modification of a University facility, whether a major or minor capital improvement, to be paid for with extramural funds is subject to the same review and approvals as those made with regular University funds. The Chancellors' delegation of authority to approve solicitations to extramural sponsors which include construction or modification of a campus facility is outlined in Chapter 13-1210 of this Manual. Accordingly, any extramural proposal for research, training or public service which includes a request for funding for a facility modification must be appropriately coordinated with campus Facilities Management as well.

2-528 Forecasting Increases or Decreases

The Principal Investigator is ultimately responsible for project cost estimates. Campuses may develop policies for proposal budget preparation that include escalating or de-escalating factors. These policies should result in forecasting overall increases or decreases in a manner that is consistent campus-wide and reasonable, considering such factors as historical cost patterns for that campus and probable trends.

2-529 Documenting Estimates

Campuses should have procedures for verifying cost estimates in proposal budgets. Records on how estimated costs were determined must be kept. Supporting documentation should be in writing and show clearly and in sufficient detail how each proposed cost element amount was developed. For example, supporting documentation for salaries and wages would include the name, academic rank or payroll title, and salary step of each employee on the proposed budget. If a particular position is not filled, the proposed salary generally should not be higher than the middle step for that title.

2-530 Awards Terms and Conditions Announced with the RFP

Award terms and conditions announced with the Request For Proposal (RFP) need to be reviewed for compliance with University policies. Any comments on or exceptions to terms and conditions must be submitted to the sponsor with the proposal. Award terms and conditions are discussed in Section 2-630.

2-540 Proprietary Data

If a proposal contains proprietary data, the applicable sections must be marked as such. In RFPs and Request For Applications (RFAs) which the sponsor thinks would solicit proprietary data, the sponsor usually has instructions on how to note on the proposal cover page and the applicable sections that the proposal contains proprietary data.

2-550 Assurances, Representations, and Certifications

Federal and State agencies usually require that various assurances, representations, and certifications be submitted with proposals. These assurances, representations, and certifications are concerned with compliance with laws and regulations governing such areas as equal opportunity and affirmative action, clean air and water, labor surplus areas, and defaults on loans. The number of such representations, certifications, and assurances vary from agency to agency and, from time to time, within the same agency, as new ones continue to be required. However, a number of basic requirements common to most federal agencies can be identified. They are based on current Federal Acquisition Regulations (FAR and FAR supplements) that are usually derived from federal statutory requirements or Executive Orders. Often the wording and format of a representation, certification, or assurance is specified either in the acquisition regulation or in the statute from which the regulation is derived.

While most federal agencies require that representations, certifications, and assurances be included by reference or listed with every proposal, some agencies allow one annual campus signature on certain representations and certifications. For federal agencies, this annual acceptance of representations and certifications by campus can be done on-line at the federal Online Representations and Certifications Application (ORCA). In addition, some federal and State agencies may include them in their awards rather than in proposals.

Because the representations, certifications, and assurances required by federal and State agencies are constantly subject to change, this Manual does not attempt to provide a complete list. For representations and certifications required in connection with federal contracts and grants and other new assurances, see the Office of the President RPAC Research Administration website: Lists of Certifications Related to Federal Contracts and Grants. Section 2-F10 provides a listing of federal documents which contain representations, certifications and assurances that are normally required in connection with federal research contracts and grants. In addition, some specific representations, certifications, and assurances are discussed in this Manual’s chapters which cover their applicable subject areas. These include: Chapter 3 - Environmental Health and Safety; Chapter 12 - Labor Standards; Chapter 14 - Nondiscrimination/Affirmative Action; and Chapter 16 - Purchasing.

2-551 Compliance with Applicable Laws and Regulations

The University makes every effort to comply with all applicable federal, State, and local laws and regulations. University systems and procedures are designed to ensure compliance with existing laws and regulations. Various University offices are responsible for designing and implementing any necessary changes in University systems and procedures to comply with new laws and regulations.

When an agency requires certification or assurance of compliance with specific applicable laws or regulations, there are three things to consider:

Compliance is only being required as applicable. If the law or regulation is not applicable to the University or program being funded, then it is preferable to line out this certification or assurance in the proposal or award. The agency can be provided with documentation verifying the University's exemption from the law or regulation. An alternative to deleting a certification or assurance not applicable to the University would be to add the words "if applicable to the University" after the clause.
The official certifying on behalf of the University is not expected to investigate whether there are any specific instances of non-compliance within the University; general knowledge that there are policies and procedures in place to implement the law or regulation is sufficient.
If the official certifying on behalf of the University is aware of material violations of the law or regulations, then the certification should not be signed. The campus and/or Office of the President Compliance Officer and/or Controller, depending on the nature of the violation, should be notified of any such violation.

See Section 2-F10 for guidance on federal laws and regulations that are applicable to federally sponsored research contracts and grants to the University. (See also the OP RPAC Research Administration website: Lists of Certifications Related to Federal Contracts and Grants.

2-552 Cost or Pricing Data

In accordance with FAR15.403 -- Obtaining Cost or Pricing Data, federal contract proposals over $650,000 must disclose relevant cost or pricing data to enable the government to analyze proposed costs in order to ensure that they are fair and reasonable. Federal agencies may require that a Certificate of Current Cost or Pricing Data be signed. By signing such a Certificate, the Contract and Grant Officer is certifying that the "cost or pricing data are accurate, complete, and current" (See Section 2-F09.) The proposed budget could be reduced in an award if the cost or pricing data are found to be incorrect.

The Department of Defense does not require non-profit educational institutions and other non-profit organizations to certify cost data in proposals for DOD-funded cost-reimbursement contracts or subcontracts. The DOD waiver of this requirement applies only to signing the Certificate of Current Cost or Pricing Data, not to the submission of the actual data.

2-553 Malign Foreign Talent Recruitment Programs (MFTRP)

The Chips & Science Act of 2022 ("CHIPS Act") (Section 10631) directs federal agencies to prohibit participation in a Malign Foreign Talent Recruitment Program (MFTRP) by Covered Individuals involved with research and development awards from those federal research agencies. (See definitions below.) In addition to pre-existing required reporting of participation in Foreign Talent Recruiting Programs on biosketches and current and pending/other support forms, federal research agencies are implementing policies prohibiting participation in MFTRPs to comply with the CHIPS Act.

In addition, Section 10632 of the CHIPS Act requires that every federal research agency establish a policy requiring that each institution or organization applying for research and development awards certify that each Covered Individual employed by such institution or organization has been made aware of, and complied with, the requirement to certify that they are not a party to a malign foreign talent recruitment program in proposal submissions and annually thereafter for the duration of the award.

The University of California will comply with all applicable federal agency policies. To date, only the Department of Defense and the National Science Foundation have issued policies. As other agencies issues policies they will be listed here.

Department of Defense

The Department of Defense (DoD) policy, Countering Unwanted Foreign Influence in Department-Funded Research at Institutions of Higher Education (PDF),was issued on June 29, 2023. The Component Decision Matrix incorporated in that policy indicates that effective August 9, 2024, DoD is prohibited from providing funding to or making an award of a fundamental research project proposal in which a Covered Individual is participating in a MFTRP; or to a proposing institution that does not have a policy addressing MFTRPs pursuant to Section 10632 of the CHIPS Act.

Accordingly, Covered Individuals at the University of California who are engaged in DoD-sponsored research are prohibited from participating in Malign Foreign Talent Recruitment Programs and, if required by the DoD sponsor agency to comply with the Component Decision Matrix, such individuals must certify that they are not a party to a MFTRP prior to proposal submission and annually thereafter.

NSF Prohibition on Participation in Malign Foreign Talent Recruitment Programs (MFTRPs)

The National Science Foundation (NSF) Proposal and Award Policies and Procedures Guide (PDF) (PAPPG), NSF 24-1, effective May 20, 2024, prohibits participation of senior/key personnel in MFTRPs. Prior to proposal submission, all senior/key personnel must certify that the information provided in the Biographical Sketch and Current and Pending (Other) Support documents is accurate, current, and complete, and that the individual is not a party to a MFTRP. Additionally, the NSF PAPPG specifies that the institution’s Authorized Organizational Representative must certify at the time of proposal submission that all senior personnel associated with the proposal have been made aware of, and have complied with, their responsibility under that section to certify that they are not a party to a MFTRP.

Malign Foreign Talent Recruitment Program:

As defined by Section 10638 of the CHIPS Act, a MFTRP is any program described in Section A that ALSO includes at least one element from Section B AND at least one element from Section C below.

Section A - Description

Any program, position, or activity that includes compensation in the form of cash, in-kind compensation, including research funding, promised future compensation, complimentary foreign travel, things of non de minimis value, honorific titles, career advancement opportunities, or other types of remuneration or consideration directly provided by a foreign country at any level (national, provincial, or local) or their designee, or an entity based in, funded by, or affiliated with a foreign country, whether or not directly sponsored by the foreign country, to the targeted individual, whether directly or indirectly stated in the arrangement, contract, or other documentation at issue.

Section B - Problematic Obligations/Activities

In exchange for the individual —

(i) engaging in the unauthorized transfer of intellectual property, materials, data products, or other nonpublic information owned by a United States entity or developed with a federal research and development award to the government of a foreign country or an entity based in, funded by, or affiliated with a foreign country regardless of whether that government or entity provided support for the development of the intellectual property, materials, or data products;

(ii) being required to recruit trainees or researchers to enroll in such program, position, or activity;

(iii) establishing a laboratory or company, accepting a faculty position, or undertaking any other employment or appointment in a foreign country or with an entity based in, funded by, or affiliated with a foreign country if such activities are in violation of the standard terms and conditions of a federal research and development award;

(iv) being unable to terminate the foreign talent recruitment program contract or agreement except in extraordinary circumstances;

(v) through funding or effort related to the foreign talent recruitment program, being limited in the capacity to carry out a research and development award or required to engage in work that would result in substantial overlap or duplication with a federal research and development award;

(vi) being required to apply for and successfully receive funding from the sponsoring foreign government’s funding agencies with the sponsoring foreign organization as the recipient;

(vii) being required to omit acknowledgment of the recipient institution with which the individual is affiliated, or the federal research agency sponsoring the research and development award, contrary to the institutional policies or standard terms and conditions of the federal research and development award;

(viii) being required to not disclose to the federal research agency or employing institution the participation of such individual in such program, position, or activity; or

(ix) having a conflict of interest or conflict of commitment contrary to the standard terms and conditions of the federal research and development award.

Section C - Problematic Sponsorship

The Program is sponsored by:

(i) a foreign country of concern or an entity based in a foreign country of concern, whether or not directly sponsored by the foreign country of concern;

(ii) an academic institution on the list developed under section 1286(c)(8) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (10 U.S.C. 2358 note; Public Law 115– 232); or

(iii) a foreign talent recruitment program on the list developed under section 1286(c)(9) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (10 U.S.C. 2358 note; 1 Public Law 115–232).

Note: For the purpose of this analysis, foreign countries of concern currently include China, Iran, North Korea, and Russia.

Also see International Trade Administration's Consolidated Screening List and DOD Statement on Countering Unwanted Foreign Influence on Department Funded Research at Institutions of Higher Education, pages 18-21 (PDF).

The following are not considered MFTRPs:

(i) making scholarly presentations and publishing written materials regarding scientific information not otherwise controlled under current law;

(ii) participating in international conferences or other international exchanges, research projects or programs that involve open and reciprocal exchange of scientific information, and which are aimed at advancing international scientific understanding and not otherwise controlled under current law;

(iii) advising a foreign student enrolled at an institution of higher education or writing a recommendation for such a student, at such student’s request.

Covered Individual:

A Covered Individual, as defined by Section 10638 of the CHIPS Act, is an individual who—

(A) contributes in a substantive, meaningful way to the scientific development or execution of a research and development project proposed to be carried out with a research and development award from a federal research agency; and

(B) is designated as a Covered Individual by the federal research agency concerned.

Note: Federal funding agencies have the latitude to expand the definition of Covered Individuals as appropriate and consistent with their mission.

2-560 Multiple UC Campus Projects

When a Principal Investigator wants to involve more than one UC campus in a proposed project, one campus serves as the prime campus and the other campuses involved are considered participating campuses. University policy regarding administration of extramurally funded, multiple UC campus projects is presented in Chapter 10, Sections 10-240 through 10-248, of this Manual. Operating guidance for multiple UC campus projects is provided via RPAC Research and Technology Transfer Memos.

2-570 Approvals

All formal proposals submitted to extramural sponsors as well as intra-University programs should have the signed approval of the Principal Investigator, the Department Chair, and the Unit Head or Dean, as applicable. Formal proposals must also have approval of the Contract and Grant Officer with delegated authority to sign such proposals. (See Chapter 13.) Required approvals for participating campuses on multiple UC campus projects are described in Chapter 10-241 of this Manual. Required approvals may be on the internal campus contracts and grants proposal cover sheet and/or the sponsor's proposal face page. (See Section 2-510 above.) For information about the submission process for informal proposals, see Chapter 1-510 in this Manual.

2-580 Additional Review/Reporting Requirements

2-581 Corporate Contract and Grant Reporting System (CGX)

All proposals and awards must be reported to the Contract and Grant Reporting System (CGX) as described in Chapter 10-420. Detailed instructions are issued via OP RPAC Research and Technology Transfer Memos.

2-582 Disclosure of Financial Interest in Private Sponsors of Research and Other Conflict of Interest Policies

The State of California Fair Political Practices Commission has mandated that a Principal Investigator must disclose financial interests that he or she (or his or her spouse, registered domestic partner, or children) has in a private sponsor ¹ of research which is funded in whole or in part by:

a contract or grant from a nongovernmental entity sponsor, or
other funds from a nongovernmental entity earmarked by the donor for a specific project or for a specific researcher.

These requirements are mandated by State regulations of the Fair Political Practices Commission, Title 2, Division 6, California Code of Regulations § 18755, “Statements of Economic Interests: Person or Persons at an Institution of Higher Education with Principal Responsibility for a Research Project." See also Title 2, Division 6, California Code of Regulations§18702.4(c), Materiality Standard: Financial Interest in Source of Gift (See Section 2-S01).

The University Policy on Disclosure of Financial Interest in Private Sponsors of Research was issued by the Office of the President on April 26, 1984, and Guidelines for Disclosure and Review of Principal Investigator's Financial Interest in Private Sponsors of Research was issued on April 27, 1984. The disclosure statement required by the April 26, 1984 Policy, Form 700-U, Principal Investigator's Statement of Economic Interests, may be submitted to the Contract and Grant Office along with any research proposal to a private (nongovernmental) sponsor. If it is not submitted at that time, it must be filed before final acceptance of the contract, grant, or gift. Filers also must submit a statement , when funding is renewed that discloses reportable investments, income and business positions that the filer held or received during the period between the date the initial Form 700-U was filed and the date the project contract, grant, or gift was renewed.; and

A PI filing a Form 700-U must indicate whether they (or their spouse, registered domestic partner, or dependent children) has the following kinds of economic interest in a nongovernmental entity sponsor of their research:

holding a position of management, or serving as a director, officer, partner, trustee, consultant or employee of the nongovernmental entity;
having an investment of $2000 or more in the nongovernmental entity;
having received income or loans of $500 or more from the nongovernmental entity during the reporting period; or gifts of $50 or more;
having received from the nongovernmental entity during the reporting period travel payments that are reportable as gifts or income.

When an interest of a Principal Investigator in a sponsor is disclosed, a campus committee must review whether the contract, grant or gift can be accepted.

Other applicable University policies related to conflict of interest are summarized in:

Business and Finance Bulletin G-39, Conflict of Interest Policy and Compendium of Specialized University Policies, Guidelines, and Regulations Related to Conflict of Interest;
Academic Personnel Manual APM-028, Disclosure of Financial Interest in Private Sponsors of Research and policies regarding Academic Conflict of Interest or Commitment Related to Sponsored Research
Disclosure of Financial Interests & and Management of Conflicts of Interest, Public Health Research Awards Policy; and
University Policy on Disclosure of Financial Interests and Management of Conflicts of Interest Related to Sponsored Projects

¹ Other than a nongovernmental entity sponsor that has been designated by the Fair Political Practices Commission as one that does not trigger a disclosure requirement. See Regulations of Fair Political Practices Commission, Title 2, Division 6, California Codes of Regulations §18755(d).

2-583 Regental Approval

Standing Order 100.4(dd) states the conditions under which a proposal for extramural support must be submitted to The Regents for authorized University approval. A general discussion of Regental approval can be found in Chapter 10, Sections 10-211 through 10-217. Procedures for submitting proposals for Regental approval are issued via RPAC Research and Technology Transfer Memos.

Procedures for the submission of proposals which exceed campus delegations of authority, but do not require Regental approval, are also set forth via RPAC Research and Technology Transfer Memos.

2-584 State Clearinghouse Procedures

Executive Order 12372 on intergovernmental review of federal programs allows states to set up procedures for reviewing federal assistance programs which affect them. The Order requires federal agencies to either follow State recommendations on proposed federal funding or explain their reasons for not doing so. (See Section 2-F03.) The specific programs of federal agencies which require clearinghouse submission are noted in their Assistance. The federal agency issuing the RFP or RFA is responsible for specifying if the submission of an SF-424 is required for the specific program. The University is not responsible for making this determination. At the time a proposal for a federal program which requires review by the State is submitted to the federal agency, a copy of Standard Form SF-424 is submitted for the proposed project to the State "single point of contact,” along with the narrative portion of the proposal. (See Section 2-F07.) In California, the required copy of the SF-424 is submitted to:

State Clearinghouse
1400 Tenth Street
Sacramento, California 95814
Telephone: (916) 445-0613
state.clearinghouse@opr.ca.gov

Some campuses are also required to submit this material to a local clearinghouse, such as a local consortium of city governments, where there is one, at the time the proposal is submitted to the federal agency.

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Chapter 2-600: Award Acceptance and Administration

All extramural awards to the University of California for research, training, or public service are made in the University's corporate name, "The Regents of the University of California." The responsibility for reviewing the terms and conditions of awards before they are accepted on behalf of The Regents rests on those who have been delegated authority to approve, accept, and execute such awards, as described in Sections 2-200 and 2-610. University officials who are authorized to sign awards which obligate the University should insure that these awards are properly reviewed. A checklist for review of contracts and grants is outlined in Chapter 13-333. The responsibility for implementing the terms of an award involve various University offices as noted below in Section 2-620.

2-610 Authority to Accept Awards

Standing Order 100.4(dd) authorizes the President to accept or execute awards, with stated exceptions. The President has re-delegated this authority to the Provost and Executive Vice President - Academic Affairs, Vice President - Agriculture and Natural Resources, Associate Vice President - Federal Governmental Relations, Chancellors, and the Lawrence Berkeley National Laboratory Director who have, in turn, re-delegated their authority, with varying levels and limitations, to the appropriate Vice Chancellors, Deans, Directors, and Contract and Grant Officers. For a discussion of the legal authorities related to the solicitation of proposals, see Chapter 13 of this Manual. When an award is accepted by The Regents, it means that the University has agreed to comply with all the terms of that award. Thus, it is important for campuses and Laboratory to have procedures in place to ensure that awards are legally accepted only by authorized University officials. Legal acceptance can take many forms, including: counter-signature on a bilateral agreement; spending the funds when a unilateral award is made; and signing a proposal that is counter-signed by the sponsor (e.g., a Request For Qualifications (RFQ)).

2-611 Acknowledgment of Grants from Private Sponsors

In addition to being accepted under the authority described above in Section 2-610, grants from private sponsors may also be acknowledged by other University officials or the Principal Investigator. Such acknowledgments are handled in accordance with campus procedures and in a manner appropriate to the requirements of the sponsor and the nature of the grant.

2-620 Responsibility for Administering an Award

The duties and responsibilities of University faculty and staff involved in the administration of an award are outlined in Chapter 10, Sections 10-300 through 10-350. Responsibilities for specific areas of award administration are described in the chapters for those subjects.

2-630 Terms and Conditions of Awards

Awards for sponsored projects or programs are made to the Corporation, i.e., The Regents of the University of California, and commitments made under agreements are commitments of the Corporation. The terms and conditions of awards must be in accordance with University policy. Applicable policies are discussed in this Manual under specific chapter titles. Any exceptions to such policies must have the required reviews and approvals discussed in those chapters. Additional guidelines and procedures are issued as needed via RPAC Research and Technology Transfer Memos.

2-631 Governing Law

Except under extenuating circumstances, agreements which contain a "Governing Law" clause should state that the agreement is governed by the laws of the State of California. Agreements which name governing laws of other states or countries should be reviewed by UC Legal or campus counsel as described in Section 2-640, below.

2-632 Awards to Individuals

As stated above in Section 2-630, sponsoring agencies make awards to the corporation, not to the individual. However, occasionally, a sponsor offers an award directly to a Principal Investigator or Project Director. Consistent with considerations of University of California policies regarding conflict of interest (See Section 2-582), a Principal Investigator or Project Director may make an agreement concerning that portion of their time and effort which is not already committed to the University, which does not interfere with performance of University duties, which is in accordance with Academic Personnel Manual APM-025, Conflict of Commitment and Outside Activities for Faculty Members, and which does not involve unauthorized use of University space, facilities, or resources on a significant scale (APM-015, Faculty Code of Conduct). Personal awards which involve University staff time already committed to the University are not permitted.

When an honorific award to a specific faculty member is made to The Regents, it cannot be accepted unless it is in compliance with University policies as described in this Manual.

2-633 Reporting Requirements

Any sponsor required financial and technical reports should be reasonable (i.e., within the generally accepted standards for such requirements). Any excessive reporting requirements, such as those which the campus' financial systems cannot readily accommodate, deadlines which cannot reasonably be met, or overly-frequent reports, should be modified to the extent possible. The Office of the President Research Policy, Analysis and Coordination Office (RPAC) is available to assist in achieving such modifications when campus efforts are rejected by the sponsor.

2-634 Insurance, Patents, and Data Rights

Any requirements in an Request For Proposal (RFP) or Request For Application (RFA) concerning such areas as insurance, patents, and data rights must be in accordance with University policies. Chapter 21 and Chapter 11 of this Manual cover these areas.

2-635 Research Based on Reasonable Efforts

Since research results cannot be guaranteed, University research is conducted on a “reasonable efforts” basis. The University receives no fee or profit on its research. While agreements may require a final report and may outline standards for that report, provisions which guarantee research results, impose penalties for failure to make progress by firm deadlines, or condition payment on the sponsor's satisfaction with the results are generally not acceptable. Such provisions create an unfunded liability for the University as the sponsor may refuse to pay the costs incurred for the work performed. However, Principal Investigators or Program Directors are obligated to conduct sponsored projects of the highest possible quality (APM-015, The Faculty Code of Conduct).

When a sponsor wants a final product which conforms with sponsor specifications, it may indicate that the sponsor is more interested in purchasing a good or service than in supporting research of interest to and directed by the University. Such a project indeed might be appropriate public service; however, "job shop" product outputs, if accompanied by unacceptable terms which create an unfunded liability, are normally not appropriate to the University's mission and should not be accepted. For more information about projects classified as sponsored agreements, see Section 8-321 of this Manual.

2-636 Termination

Any termination clause should assure that, in the event an agreement is terminated by the sponsor for any reason, the sponsor will pay the University for all costs incurred to date of termination and for all uncancellable obligations. (Also see Chapter 7-222 of this Manual.)

2-637 Citizenship Restrictions, Export Controls and Other Awards Terms and Conditions

As with proposal guidelines, award terms and conditions must also be reviewed for requirements which would create citizenship or export control restrictions discussed in 2-513 and 2-514, as well as any other proposal review issues described in 2-500 which are now found in award terms and conditions.

2-640 Review of Routine Agreements and the Role of the General Counsel's Office

The University official who is delegated authority to sign agreements is responsible for making the determination as to whether legal advice is needed from UC Legal or campus counsel and to obtain this advice prior to execution, if it is needed. Chapter 13-330 through 13-334 discusses the responsibility of the General Counsel in providing advice on contract and grant documents. See Chapter 13-333 for the Checklist for Review of Contracts and Grants developed by General Counsel's Office.

2-650 Disclosure of Financial Interest in Private Sponsors of Research - Form 700-U and Other Conflict of Interest Policies

As discussed in Section 2-582, Form 700-U, Principal Investigator's Statement of Economic Interests, is required before acceptance of an award. If Form 700-U is not filed with the proposal submission, it must be filed before final acceptance of an award to which it applies, when funding is renewed, and within 90 days after the expiration of the Other applicable University policies related to conflict of interest are summarized in:

Federal regulations, policies and information related to conflicts of interest in federally-funded research may be found at:

Public Health Service (including NIH) regulations 42 CFR, part 50, subpart F, with helpful FAQs
Food and Drug Administration regulations at 21 CFR 54
National Science Foundation Grantee Conflict of Interest Policies

2-660 Corporate Contract and Grant Reporting System (CGX)

All awards must be reported to the Contract and Grant Reporting System (CGX) as described above in Section 2-581 and in Chapter 10-420.

2-670 Prior Approval Requirements

When a sponsor or the University requires prior approval of actions related to the administration of an award, the campus or Laboratory must have administrative procedures in place which meet prior approval requirements. The terms and conditions of the award should provide specific guidance on the sponsor's requirements for prior approvals. Examples of actions often requiring prior approval at the campus level or by the sponsor, depending on sponsor requirements, are pre-award costs, no-cost extensions, and rebudgeting above a line-item amount restricted by the sponsor.

A change in the scope of work, objectives of the research, or level of effort of the Principal Investigator generally must be approved in writing by the sponsor. Replacing the Principal Investigator generally requires sponsor approval in addition to any required University approvals.

2-680 Amendments, Modifications, and Continuations

The terms and conditions of an award can be changed via amendments, modifications, change orders, supplements, or continuations of the agreement. An amendment or modification is a change in the terms and conditions mutually agreed upon by both parties. A change order is usually a unilateral change in the agreement subject to the clause in the agreement which covers such changes. Acceptance of a change order clause in an agreement is, thus, discouraged because such a clause exposes the conduct of the sponsored project to the unilateral direction of the sponsor.

A delegation of authority resulting from a proposed project which required Regental approval authorizes specific campus or Laboratory officials and staff to sign the original award and includes the authority to execute subsequent amendments, modifications, or continuations to the award as long as the amendment, modification, or continuation does not remove the award from the limitations prescribed in the applicable delegation of authority. For example, if an amendment to such an award adds a new condition requiring Regental approval, then another Regental approval and a new delegation of authority would be necessary. (See Chapter 13.)

Principal Investigators or Project Directors do not have authority to make or execute changes or modifications in the terms of contracts or grants unless they have been specifically (i.e., name or title) delegated this authority by an authorized University or campus official. They should not attempt to negotiate such changes without the prior knowledge and approval of the Contract and Grant Officer.

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Chapter 2-700: Award Termination/Expiration/Closeout

The expiration of an award on its expected expiration date constitutes an implicit assumption that the University has fulfilled its project performance obligations under the award. An award may also be terminated by the sponsor or the University before its expiration date for various reasons including the transfer of the Principal Investigator to another institution.

A closeout or termination may require the submission of a final invoice and a "Contractor's Release." Other aspects of the award that may need to be cleared are: title to property; satisfactory performance of contractual obligations by the Principal Investigator; and the submission of all required reports including final technical and financial reports, patent and invention reports, inventory report, small business and small disadvantaged business subcontracting plan reports, and cost-sharing report. These reports are discussed below, except for subcontracting plan reports which are discussed in Chapter 16-F02.

2-710 Final Financial Report, Contractor's Release, Refunds, and Claims

The campus or Laboratory Extramural Funds Accounting Office is responsible for submitting any financial reports required in order to close out the award. The expiration or termination of an agreement usually requires a final invoice or final financial report from the University. In the final invoice or report, the University would request any residual funds due to the University under the award or refund to the sponsor any excess funds not expended. Awards terminated prior to their natural expiration date can also incur additional costs. See Chapter 7-222 on this subject.

When it is determined by the Extramural Funds Accounting Office that no funds are owed to the University for expenses incurred under the award, a signed "Contractor's Release," if required by the sponsor, may be submitted to the sponsor. This "release" is an acknowledgment by the University that it has no further claims against the sponsor. A contractor's release is not usually required for a grant award.

2-720 Final Technical Report and Other Deliverables

The Principal Investigator is responsible for submission of any final technical report required under the terms of an award as well as other agreed upon deliverables such as data, graphs or software. Failure on the part of the Principal Investigator to deliver any required technical reports to the sponsor in a timely matter may affect future funding from that sponsor to all campuses of the University. In addition, the terms of some contracts provide that final payments will not be made until the required final reports have been submitted. Thus, late or incomplete reports also affect the receipt of the final payment to the University and, in some case, the provision of future awards. It is, therefore, useful for campuses to have some method of monitoring the timely submission of final reports.

2-730 Final Inventory Report and Title to Property

The sponsor's policies on title to property must be followed when closing out an award. Many sponsors request a property inventory report whether or not title to such property is retained by the University. When such title is not retained at the time of acquisition, it is incumbent upon the Contract and Grant Officer to request title at termination. The campus Equipment or Material Management Office is generally responsible for completing the final inventory report.

2-740 Patent and Invention Report

If required by the sponsor, a final Report of Patents or Inventions is completed by the Principal Investigator, whether or not the report is negative. If a patentable idea, invention or discovery is made during the course of the sponsored project, the disclosure of such must be made through the Office of Technology Transfer, Office of the President, or the campus or Laboratory equivalent.

2-750 Cost-Sharing Report

If the sponsor requires cost sharing and requests a report of this cost sharing as part of the close-out of the award, such a report is generally generated by the campus Extramural Funds Accounting Office in consultation with the campus unit which administered the award, depending on individual campus procedures.

2-760 Transfer of the Principal Investigator

In the case of a termination of an award because the Principal Investigator is leaving the University and wants to continue the project at a new institution, written approvals from the sponsor, the campus, and the recipient institution are required. The campus or Laboratory Extramural Funds Accounting Office must determine the balance of funds in the project to be transferred. If these funds are in a campus account, the campus must refund the surplus to the sponsor or send the balance to the new institution in accordance with the sponsor's guidance. If the campus has not received the balance of funds available to the project, the sponsor de-obligates that balance to the campus and re-obligates it to the other institution. If the Principal Investigator wants to transfer equipment associated with the project, the campus is responsible for reviewing the title in order to make a determination of whether approval of the transfer will be given by the campus or is required by the sponsor (see Business and Finance Bulletin BUS-38, Disposal of Excess Material).

2-770 Termination of Subawards

Before termination of any sub-award issued from the University to another institution, all financial, technical, property, patent, and other reports required should be received from the sub-awardee along with a statement that it releases the University from all further claims under the sub-award. The University Principal Investigator should indicate that the sub-award was carried out in accordance with the work statement. Subrecipient monitoring procedures are issued via RPAC Research and Technology Transfer Memos.

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Chapter 2-999: Related University References

Faculty Handbook
Facilities Manual
Development Policy and Administration Manual
University Regulation No. 4, Special Services to Individuals and Organizations, June 23, 1958 (Reprinted in the Faculty Handbook, September, 1986, Appendix, p. 52, and the Academic Personnel Manual, Section 020)
Standing Orders of The Regents of the University of California, Standing Order 100.4(dd)
Administrative Policies and Procedures Concerning Organized Research Units
Academic Personnel Manual
Personnel Policies for Staff Members (PPSM)-30: Compensation
Senior Management Personnel Policies
University Policy on Disclosure of Financial Interest and Management of Conflicts of Interest in Private Sponsors of Research, revised October 23, 2018
Guidelines for Disclosure and Review of Principal Investigator's Financial Interests in Private Sponsors of Research, revised February 1, 2019
University Policy on Disclosure of Financial Interests and Management of Conflicts of Interest Related to Sponsored Projects and other University-funded research programs, revised June 15, 2023
Delegation of Authority - Contract and Grant Administration, effective November 2, 2009
Guidelines on Industry-University Relations, Office of the President, May 17, 1989 (Full text distributed by Contract and Grant Memo)
University Records Disposition Schedules Manual

Business and Finance Bulletins

Accounting Manual

P-415-2 Plant Accounting: Cost and Reconciling Inventorial Equipment Acquisition
T-182-73 Taxes: Sales and Use Tax
P-415-32 Plant Accounting: Fabricated Property

External Requirements - Federal

2-F01
The Competition in Contracting Act of 1984, Public Law 98-369 - 41 USC 253; Amendments to Small Business Act, Public Law 98-72 - 15 USC 14A; and FAR Part 6 – Competition Requirements

Purpose
To obtain full and open competition through the use of competitive procedures for procurement of property or services by federal agencies.

Applicability
All acquisitions above the simplified acquisition threshold with exemptions listed in FAR Part 6.001.

Summary of Provisions
Both laws restrict authority to award large dollar value, sole source contracts, and contracts resulting from unsolicited proposals. They allow for exemptions to these requirements as listed in FAR Part 6.001. Publication of solicitation announcements in the Federal Business Opportunities webpage is required.

Lead Agency
Office of Federal Procurement Policy

Implementing Regulations

Primary University Responsibility
The Office of the President Research Administration is responsible for monitoring and responding to proposed agency implementations of these statutes.

Contract and Grant Officers can potentially protect unsolicited proposals by reserving the right to review any synopsis for publication. Principal Investigators can identify restricted information in the proposal.

University Policy Implementation
None

2-F02
Public Law 97-258 and 31 USC 6301 - Using Procurement Contracts and Grant and Cooperative Agreements

Purpose
To distinguish federal assistance relationships from federal procurement relationships, standardizing usage, and clarifying meanings of the legal instruments used in such relationships.

Applicability
Agreements between the federal government and a state or local government or other recipient.

Summary of Provisions
Defines when a contract, grant or cooperative agreement should be used by the federal government in a procurement or assistance relationship.

Lead Agency
Office of Management and Budget (including the Office of Federal Procurement Policy)

Implementing Regulations
Title 2 CFR Part 215 - OMB Circular A-110 for grants and cooperative agreements; Federal Acquisition Regulations (FAR) for contracts.

Primary University Responsibility
Contract and Grant Offices are responsible for determining that the correct legal instrument is used by a federal agency in a procurement or assistance relationship with the University.

University Policy Implementation
None

2-F03
Executive Order 12372 - Intergovernmental Review of Federal Programs and the Catalog of Federal Domestic Assistance

Purpose
To foster an intergovernmental partnership by relying on state and local government coordination in reviewing federal assistance programs.

Applicability
Applications to designated federal programs for assistance must be sent for review to the state "single point of contact."

Summary of Provisions
Replaces OMB Circular A-95. Requires federal agencies to make efforts to accommodate state and local government recommendations concerning assistance programs in their jurisdiction and to rely on state and local processes for review of federal assistance programs. Federal programs requiring state review of proposals noted listed in the Catalog of Federal Domestic Assistance.

Lead Agency
Office of Management and Budget

Implementing Regulations
Applicable CFR Parts for each federal agency

Primary University Responsibility
Contract and Grant Officers must submit to the State "single point of contact" applications which require such review.

University Policy Implementation
Contracts and Grants Manual Chapter 2

2-F04
Title 2 CFR Part 215 – Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Nonprofit Organizations; and Office of Management and Budget Circular No. A-110 – 215.51, Monitoring and Reporting Program Performance.

Purpose
To establish procedures for monitoring and reporting the performance of recipients of grants and other agreements.

Applicability
All federal agencies in their administration of grants to, and other agreements with, public and private institutions of higher education, public and private hospitals, and other quasi-public and private non-profit organizations. The term "other agreements" does not include procurement contracts, but does include cooperative agreements.

Summary of Provisions
Sets forth guidelines for monitoring performance, ensuring that time schedules are met, that projected work units by time periods are accomplished, and other performance goals are being achieved. Describes the contents of required technical reports and reporting frequency.

Lead Agency
Office of Management and Budget

Implementing Regulations
Individual agency guidelines.

Primary University Responsibility
The Principal Investigator is responsible for submitting required technical reports.

University Policy Implementation
Contracts and Grants Manual Chapter 2 and Chapter 6.

2-F05
Title 2 CFR Part 215 - Office of Management and Budget Circular No. A-110 - 215.71 Closeout Procedures

Purpose
To prescribe uniform closeout procedures for federal grants and other agreements with recipients.

Summary of Provisions
Instructs federal agencies to establish closeout procedures according to the requirements listed in this Section. They include prompt payment to recipients, refund of unobligated balance, submission of final reports within 90 days of completion, and references to other related sections on property and audits.

Lead Agency
Office of Management and Budget

Implementing Regulations
Individual agency guidelines.

Primary University Responsibility
The Campus Extramural Funds Accounting Office is responsible for financial closeout requirements. The Equipment or Materiel Management Office is generally responsible for completing the final inventory report. When title to equipment is not retained by the recipient, the Contract and Grant Office should request title at termination.

University Policy Implementation
Contracts and Grants Manual Chapter 2; Accounting Manual Chapter F-351, Financial Control Accounts; Business and Finance Bulletin BUS-29, Management and Control of University Equipment Section III.J.3.

2-F06
Title 2 CFR Part 215 - Office of Management and Budget Circular No. A-110 - 215.13 Debarment and Suspension, and 215.61 Termination

Purpose
To establish uniform suspension and termination procedures for federal grants and other agreements with recipients.

Summary of Provisions
Instructs all federal agencies to provide procedures, conditions, and standards for terminating a grant or other agreement when recipient has failed to comply. Gives examples of actions which agencies can implement. Instructs agencies to provide for systematic settlement of terminations including termination for cause or termination for convenience. Termination costs associated with federal awards are treated in 2 CFR Part 220 Section J.50.

In addition, Federal agencies are instructed to comply with the nonprocurement debarment and suspension common rule implementing Executive Orders 12549 and 12689. In effect, this means grant applicants must certify that neither they nor their principals are debarred or suspended before an award can be made.

Lead Agency
Office of Management and Budget

Implementing Regulations
Individual agency guidelines.

Primary University Responsibility
Contract and Grant Officers are responsible for making sure any termination orders issued by a sponsor are consistent with the award terms and that all applicable termination costs are reimbursed. They are also responsible for ensuring that Principal Investigators are not debarred or suspended at the time a proposal is submitted. OP RPAC is responsible for monitoring the Federal debarment list to make sure no University of California principals (Regents, Officers, and Chancellors) appear on the list.

University Policy Implementation
Guidance is issued as necessary via RPAC Research and Technology Transfer Memos.

2-F07
Title 2 CFR Part 215 - Office of Management and Budget Circular No. A-110 - 215.12 Forms for Applying for Federal Assistance

Purpose
To publish Standard Form SF 424B, Assurances – Non-Construction Programs, to be used by public and private institutions of higher education as a face sheet for applications for federal grants for programs covered by Executive Order 12372 (which replaced OMB Circular A-95) as described in 2-F03.

Summary of Provisions
Promulgates a Standard Form (SF 424B) to be used for applying for federal grants and cooperative agreements. However, many agencies have developed and use their own application forms in place of SF 424. Allows use of this form to fulfill the requirements of Executive Order 12372 if submitting notification to local or State clearinghouses.

Lead Agency
Office of Management and Budget

Implementing Regulations
Individual agency guidelines.

Primary University Responsibility
Officers may submit this form to the State "single point of contact" for applications which are required to be reviewed under Executive Order 12372.

University Policy Implementation
Guidance is issued as necessary via RPAC Research and Technology Transfer Memos.

2-F08
Office of Management and Budget Circular No. A-102. Uniform Administrative Requirements for Grants-In-Aid to State and Local Governments.

Purpose
To establish standards for consistent and uniform administration of federal agency grants to state, local, and federally recognized Indian tribal governments.

Applicability
State, local, and federally recognized Indian tribal governments.

Summary of Provisions
The standards promulgated in this Circular cover financial records, insurance, reporting, property and procurement administration requirements for state, local, and federally recognized Indian tribal governments which receive federal grants-in-aid.

Lead Agency
Office of Management and Budget

Implementing Regulations
Individual agency guidelines

Primary University Responsibility
This Circular may be referred to in State or local agreements with the University that are funded by federal flow-through dollars, since the State or local agency would be subject to A-102. However, since the University is subject to Title 2 CFR Part 215 - A-110, references to A-102 should be deleted from such agreements, or at least it should be understood by both parties that references to A-102 are interpreted as references to A-110.

University Policy Implementation
None.

2-F09
FAR 15.403 – Obtaining Cost or Pricing Data and DFARS 215.403-1 – Prohibition on Obtaining Cost or Pricing Data

Purpose
To enable the Federal Government to negotiate fair and reasonable prices with an offeror or contractor.

DFARS 215.403-1 exempts non-profit educational institutions and other non-profit organizations from the requirement to sign the Certificate of Current Cost or Pricing Data for DOD agencies.

Applicability
Federal contracts or subcontracts expected to exceed $650,000.

Summary of Provisions
FAR 15.403 requires the offeror to certify that the cost or pricing data in a proposal are accurate. Specific data could potentially be requested to back-up a proposed budget.

DOD has exempted non-profit institutions from the requirement to sign the Certificate.

Lead Agency
Office of Federal Procurement Policy

Primary University Responsibility
Contract and Grant Officers must sign certificates when required by other than DOD agencies for contracts or subcontracts over $650,000. Exemptions are possible when there is adequate price competition as defined under FAR Section 15.403-1.

University Policy Implementation
Guidance is issued as needed via RPAC Research and Technology Transfer Memos.

2-F10
Federal Laws and Regulations Applicable to Federally-Sponsored Contracts, Grants and Cooperative Agreements Comptroller General Decision B-166506

In this decision dated July 15, 1975, the Comptroller General of the United States stated that:

[W]e have consistently held that, when Federal grant funds are granted to and accepted by the grantee, the expenditure of such funds by the grantee for the purposes and objects for which made are not subject to the various restrictions and limitations imposed by Federal statute or our decisions with respect to the expenditure, by Federal departments and establishments, of appropriated moneys in the absence of a condition of the grant specifically providing to the contrary (emphasis added).

This decision protects the University from being held accountable for having to be aware of and comply with restrictions that apply to appropriated funds if such restrictions have not been specifically mentioned in the grant terms and conditions.

Federal laws and regulations are incorporated into federal grants, contracts and cooperative agreements in a variety of ways.

In federal contracts,

Federal Acquisition Regulation (FAR) clauses, as well as individual federal agency implementations of the FAR, incorporate federal laws and regulations into federal contracts.
The federal government Systems for Award Management (SAM) provides a centralized website for federal contractors to annually accept all applicable federal representations and certifications for federal contracts.
Any additional requirements are set forth in the contract itself.

For federal grants and cooperative agreements,

Applicable federal laws and regulations are set forth in individual agency grant manuals.
Additional federal requirements are set forth in the Standard Form SF 424B, Assurances - Non-Construction Programs.
Title 2 CFR Part 215, Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-profit Organizations (OMB Circular A-110) sets for the uniform federal administrative requirements for federal grants and cooperative agreements.
Regulation establishing standards and procedures to be followed by Institutions that apply for research funding from PHS granting agencies, including the NIH (42 CFR, part 50, subpart F).
Food and Drug administration regulation regarding financial disclosure by clinical investigators (21 CFR 54).
National Science Foundation conflict of interest policies for grantees (NSF Award and Administrative Guide Chapter IV.A.).
Any additional requirements are set forth in the grant or cooperative agreement itself.

Primary University Responsibility
Contract and Grant Officers are responsible reviewing for contract clauses and grant terms in accordance with University guidance for applicability and acceptability in accordance with University-wide guidance. The OP RPAC provides systemwide guidance on federal laws and regulations, contract clauses and grant terms.

University Policy Implementation
Systemwide guidance on FAR clauses is provided on the OP Research Policy, Analysis and Coordination (RPAC Research Administration) website.

Systemwide guidance on representations and certifications is provided on the OP RPAC (Research Administration) website.

Additional systemwide guidance is issued as needed via RPAC Research and Technology Transfer Memos.

External Requirements - State

2-S01
State of California Political Reform Act of 1974: 2010 Version

Purpose
Requires certain public officials deemed likely to engage in decisions where there may be a conflict of interest to file financial disclosure statements.

Applicability
All public officials including University employees.

Summary
As applied to University of California employees, the regulations require a Principal Investigator to disclose whether he/she has a direct or indirect financial interest in the sponsor of research which is funded or supported in whole or in part by (a) a contract or grant from a non-governmental entity sponsor or (b) by other funds from a non-governmental entity which are earmarked by the donor for a specific research project or a specific researcher.

Lead Agency
Fair Political Practices Commission

Implementing Regulations
California Administrative Code, Title 2, Division 6, Section 18755

Primary University Responsibility
Principal Investigators must submit Form 700-U Statement of Economic Interests with a proposal or award for which disclosure is required to their campus review committee. This committee makes a recommendation to the Chancellor, Laboratory Director, or the Vice President - Agriculture and Natural Resources, as appropriate, on each disclosure who then decides whether to accept this recommendation.

University Policy Implementation
The University of California Guidelines for Disclosure of Financial Interest in Private Sponsors of Research, APM-028, revised February 1, 2019; Principal Investigator's Statement of Economic Interests, FPPC Form 700-U (replaces Form 730-U effective February 6, 2009), Disclosure of Financial Interests and Management of Conflicts of Interest, Public Health Research Awards Policy, and University Policy on Disclosure of Financial Interests and Management of Conflicts of Interest Related to Sponsored Projects.

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Chapter 2-400: Types of Proposals

There are basically two types of proposals: solicited and unsolicited. Their formats differ according to the type of sponsor, the purpose of the award, and the type of award instrument.

Chapter 19 of this Manual, "Research Funding Systems," discusses in more detail types of award instruments and their relationship to the sponsor and the work to be done.

2-410 Using Procurement Contracts and Grant and Cooperative Agreements - Public Law 97-258 and 31 USC 6301

the principal purpose of the instrument is to acquire (by purchase, lease, or barter) property or services for the direct benefit or use of the United States Government; or
the agency decides in a specific instance that the use of a procurement contract is appropriate.

31 USC 6304 states that a grant shall be used when:

the principal purpose of the relationship is to transfer a thing of value to the State or local government or other recipient to carry out a public purpose of support or stimulation authorized by a law [...] and
substantial involvement is not expected between the [agency and recipient].

The Code states that a cooperative agreement shall be used for the same purpose as a grant except that substantial involvement is anticipated between the sponsor and the recipient.

2-420 Competition in Contracting Act of 1984 and Amendments to the Small Business Act

6.302-1 Only one responsible source and no other supplies or services will satisfy agency requirements;
6.302-2 Unusual and compelling urgency;
6.302-3 Industrial Mobilization; Engineering, Developmental, or Research Capability; or Expert Services;
6.302-4 International agreement; and,
6.302-5 Authorized or required by statute.

2-430 Multiple Submissions

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