PROPOSAL AND DEVELOPMENT ACTIVITY

.........A proposal is a request for external financial support of a research, training or technical assistance project. The Office of Sponsored Programs (OSP) personnel assist faculty and staff with all phases of proposal preparation and submission, including:

• identification of potential funding sources;

• pre-submission procedures;

• proposal and budget preparation;

• internal review, routing, and approval, and

• timely submission to a sponsor.

OSP staff are assigned to specific colleges and teaching units. Individuals are encouraged to contact the OSP staff member assigned to their particular area when first considering external funding for research or training projects.

THE PRINCIPAL INVESTIGATOR

The individual responsible for conceiving and enacting a sponsored project is known as the principal investigator. When this individual takes on the task of preparing a proposal for submission to an outside source, he or she agrees to manage the ensuing grant or contract in compliance with the terms, conditions, and policies of both the sponsor and the University.

In general, only one principal investigator should be named to permit clear lines of responsibility for project management. In some instances, a colleague central to the project may be named deputy principal investigator or be given another appropriate title.

University Affiliation for Institutional Awards

The principal investigator must be a member of the full-time faculty, professional, or senior staff, or be an administrative officer of the University.  Depending on the nature of the proposal, individuals with other University appointments may serve as principal investigators with the approval of the Provost and that individual’s department head.  Naming an individual in the proposal who is not already an employee of the University does not commit the institution to employing that individual.

In most instances, it is more appropriate to have the full-time faculty or staff member who will be responsible for the management and supervision of the project serve as the principal investigator and name the external individual as the Project Director.  Any exceptions to this policy must have the written approval of the Dean of the unit and the Dean of Academic Affairs.  On rare occasions, it may be in the best interest of the university to have an individual who is not an employee of the university serve as the principal investigator on a university proposal.  All such exceptions to policy should be discussed by the Dean of the unit with the Dean of Academic Affairs well in advance of a proposal submission.

Unless otherwise indicated in the proposal, principal investigators are expected to be in residence at the University during the period of project operation.  Principal investigators seeking a leave of absence during this period must obtain written authorization from the sponsor through OSP. Principal investigators must also secure the approval of their Dean and the Dean of Academic Affairs.

Occasionally, the person responsible for a project might not be from the unit delivering the program.  In such instances, the person might be named principal investigator, and a faculty member from the teaching unit might be named as educational director.

All sponsored projects that utilize campus facilities (laboratories, classrooms, etc.), involve human subjects, animals, radioactive materials, or toxic substances, involve any other faculty, staff or graduate fellows as part of the project budget, or in any way affect the University, are subject to all University compliance regulations and must be submitted through OSP.  Likewise, individual awards using University facilities are subject to University review and approval.

Individual Awards

Faculty and staff members may submit proposals for individual awards and fellowships, such as the Fulbright Scholar Program and the John Simon Guggenheim Memorial Foundation Fellowships.  Unless specified by the sponsor, application for these awards does not require University approval, and awards are made directly to the individual.  The awards generally provide remuneration for research being conducted during sabbatical leaves, leaves without pay, or in addition to regular University responsibilities.  The OSP staff are available to assist faculty in identifying potential sources of funding, obtaining guidelines and application materials, and securing letters of nomination from the University administrators when necessary.  The OSP staff will facilitate delivery of final proposal packages.

Conflicts of Interest

Conflicts of interest arise when employees use or appear to use their positions with the University for private gain at the expense of the University.  Members of the University faculty and staff must avoid such conflicts of interest.   The University has adopted the principles set forth by the American Council on Education in “On Preventing Conflicts of Interest in Government-Sponsored Research at Universities.”  It is the policy of the Office of the Provost that an AU faculty member cannot serve as the Principal Investigator on a grant that goes through another institution.  The AU Faculty Manual, Section 21-b, states that:

“Faculty members must ensure that outside activities do not conflict with responsibilities assigned them within the University and do not lead to fundamental conflicts of interest.  Such conflicts include situations where a research or service activity that could and ordinarily would be carried on with the University is conducted elsewhere to the disadvantage of the University and its legitimate interests; situations where consulting or other services are provided to an organization that would put the University at a competitive disadvantage; involvement in a relationship that might enable (or appear to enable) the faculty member to influence the University’s dealings with any outside organization in ways leading to personal gain or to other conflicts of interest.

Clarification regarding specific circumstances should be discussed with the Dean of the School/College and the Office of the Dean of Academic Affairs.

PROPOSAL DEVELOPMENT AND SUBMISSION RESPONSIBILITIES

In the course of developing and preparing a proposal, Principal Investigators, the OSP staff, the School/College Deans, and the Dean of Academic Affairs work together to ensure that a complete product is submitted to the sponsoring agency.  Specific responsibilities are delineated below.

The Principal Investigator-

• Contacts OSP at early stages of project conceptualization.

• Writes technical narrative with guidance from OSP.

• Drafts list of costs for project.

• Discusses with teaching unit head and School/College Dean the intent to submit a proposal, and its benefits and implications.

• Secures approval of compliance committee(s) (for animal subjects, human subjects, or radioactive materials).

The OSP Staff Member-

• Identifies possible funding sources.

• Develops budgets and budget narratives within appropriate guidelines, verifying salaries and confirming costs.

• Coordinates with the University Development Office.

• Coordinates University Pre-Approval Process in advance of proposal submission for those proposals over $250,000 and those proposals of any dollar amount that are sent to an international address.
  

• Completes proposal forms required by the University and the sponsor.

• Prepares capability statements appropriate to the project.

• Drafts transmittal letters to the proposed sponsor.

• Compiles complete proposal packages.

• Coordinates the University review process, securing necessary approvals and signatures.

• Has proposal packages copied and bound for submission.

• Submits proposal and copies to sponsor.

• Arranges for courier service, hand-delivery, or express mail.

• Distributes copies to signatories.

• Makes follow-up phone calls to monitor status of proposals.

• Coordinates budget revisions and re-submissions as necessary.

• Arranges for debriefings with prospective sponsors, as appropriate.

The School/College Dean ‑

• Reviews substantive content of proposal and examines proposal objectives in terms of the goals of the college and teaching unit.

• Allocates cost share resources for direct cost items.

• Allocates college resources to ensure that adequate space, facilities, equipment, and support services are available.
  

• Approves course release time and determines teaching replacement needs.

 The Office of the Provost assisted by the Director of the Office of Sponsored Programs -

• Presents all requests for unilateral waivers of indirect costs requested by deans and principal investigators to the Provost for consideration.

• Approves exceptions to policy in consultation with the Provost.

• Confirms all faculty appointments pursuant to existing appointment procedures.

• Reviews proposals to determine that academic, legal, and financial interests of the University are preserved.

DEVELOPMENT AND MARKETING ACTIVITY

Funding Sources

The identification of potential funding sources for a research, training, or technical assistance project is the first step in designing a funding strategy.  OSP provides a number of valuable services to faculty at this stage of securing outside support.

OSP maintains a library of source materials on private and federal sponsors. Many program descriptions, bulletins, newsletters, annual reports, and announcements are received regularly and are available for review. Faculty may visit OSP to browse through the library, or they may contact their assigned OSP staff member for a report on potential funding sources. For a brief overview of the general funding information publications, federal program guidelines, and private program guidelines in the OSP collection, see Attachment I-A.

A central component of the funder identification process at OSP is the use of a web-based database and matching service.  SPIN (Sponsored Programs Information Network) is a listing of national and international government and private funding sources, updated daily.  SPIN searching is used for one time searches of the database. SMARTS (SPIN Matching and Research Transmittal System) matches investigator profiles with the funding opportunities in the SPIN database and delivers automatic daily updates by email. GENIUS (Global Expertise Network for Industry, Universities and Scholars) holds profile data, both for use in SMARTS, and if desired by the investigator, for use by other investigators.  If you complete the optional fields in the GENIUS profile, and release your profile for public searching, researchers seeking collaborators will be able to use GENIUS to match their interests to yours and to contact you.

To use SPIN, SMARTS, or GENIUS, go to http://www.infoed.org/home/officemenu.asp  and select either SPIN, to do a one time search from any computer on campus, or GENIUS, to create or update a SMARTS/GENIUS profile from any internet capable computer.  Instructions for database use and profile creation and editing are available on the InfoEd website. You can also access SPIN, SMARTS, and GENIUS from the OSP home page at http://www.american.edu/academic.depts/provost/osp/osphome.htm.  If you need assistance with SPIN, SMARTS, or GENIUS, please call OSP at x3440.

After a library review or computer search, faculty will be prepared to choose one or more sponsors from whom they may wish to request financial support. In most cases, copies of program descriptions, application guidelines, and application forms will be available in OSP. Otherwise, the assigned OSP staff member will request the necessary application information from the sponsor.

Proposal Types

A proposal to a funding agency for sponsored research may either be solicited or unsolicited. Solicitations are usually government-generated “Requests for Proposal” (RFP) or “Requests for Quotation” (RFQ) on a specific research, training, or technical assistance project. In such cases, the intended scope of work is pre-determined by the soliciting agency, and specific requirements for the format and content of both technical and cost proposals are presented in the published requests. The successful solicited proposal may result in either a contract or a grant. Government RFPs and RFQs are widely advertised and are monitored regularly by OSP staff.

Unsolicited proposals may be initiated by individuals at any time. Many funding entities have general requirements for the format of unsolicited proposals. OSP staff can contact the sponsor for guidelines or other indications of sponsor requirements.

Contract education and training is also supported by OSP and the Dean of Academic Affairs. OSP helps facilitate sponsored training and education programs by developing proposals with faculty and teaching units.

Pre-Submission Procedures

Particularly when unsolicited proposals are involved, it is wise to contact a program officer within a government or private funding agency to discuss a project idea before actually submitting a formal proposal.  Most program officers welcome advance contact of this nature since it allows them to help potential principal investigators focus their research on areas of interest to their organizations. In no case, however, should a private foundation or corporate entity be contacted with a funding request without the concurrence of the central University Development Office.  OSP staff members are responsible for obtaining concurrence from the central Development Office.

Agency contacts are made through (1) a telephone inquiry or agency visit; (2) a letter of inquiry; (3) a letter of intent; or (4) a preliminary proposal:

(1)        Individuals are encouraged to make telephone inquiries on their own after discussing their projects with OSP staff. In some cases, the OSP staff member may make the initial agency contact on behalf of the faculty or staff member. Likewise, an individual may visit a potential sponsor alone or accompanied by a representative of OSP. Throughout the course of such calls or visits, no commitments of University resources should be made, nor should detailed budget figures be discussed.

(2)        A letter of inquiry is a general presentation of a project idea designed to elicit feedback from a potential sponsor. As in telephone inquiries or agency visits, no commitments should be made.  Individuals need not process such letters through OSP, and no formal routing or review is necessary, unless required by teaching unit heads or college deans. Individuals are encouraged, however, to forward a copy of such correspondence to their assigned OSP staff member so that OSP may be prepared for proposal development resulting from such inquiries.

(3)        A letter of intent expresses the intention to submit a proposal in response to a particular program announcement or Request for Proposal (RFP).  Letters of intent are generally solicited by the sponsor in conjunction with announcements expected to generate widespread interest. Agencies generally require that such letters present only a general statement of the intended research theme.  If the letter of intent contains budget estimates or ranges, it should be reviewed by and routed through OSP prior to submission.

(4)        Preliminary proposals, like letters of intent, are generally solicited by sponsor agencies.  A pre-proposal usually includes a one- to five-page description of the project.  It may also require an outline budget and some indication of the University's willingness to support the project through a commitment of resources.  Any document that mentions budget figures or commits University space and other resources is subject to the review and approval of teaching unit heads, college deans, and the Dean of Academic Affairs.  The review and approval process is coordinated through OSP (see “Processing of the Proposal” for more information).

Note: The various sponsor approaches described above, while applicable to many situations, do not reflect the multiplicity of sponsor options. Unless the potential principal investigator has had previous experience with a particular agency or unless the program announcement/RFP states a specific course of action, the principal investigator should contact the OSP assigned staff member to determine the most appropriate avenue of approach.

University Pre-Approval Procedures

The Provost pre-approves proposals with a cumulative dollar amount of $250,000 or more, up to $499,000.  Allow one week to obtain this approval.  The following types of proposals will require additional time for university routing as the Provost, the Vice President for Finance and Treasurer, and the President review them.

• Proposals with a cumulative dollar amount of $500,000 or more.

• Proposals addressed to a funding source with a non-US address of any dollar amount.

Allow at least three weeks prior to the submission date for the review of such proposals. Contact your OSP staff member well in advance of such a submission so the review can be coordinated among the different offices.

Any proposals for programs requiring additional office space must be pre-approved by the Office of the Provost and the Office of the Vice-President for Finance and Treasurer. Any proposal that offers to bring foreign nationals to the United States for a program must be coordinated with the Office of International Student Services.  Contact your assigned OSP staff member in advance of such a submission to begin the process.

Special Types of Funding

Intergovernmental Personnel Assignment Agreements (IPAs):     Under the Intergovernmental Personnel Act of 1970, University faculty and staff may arrange to work with government agencies on a temporary basis, or federal government employees may arrange to work at the University.  Since such assignments may incur fiscal commitments and liability on the part of the University, IPAs must be signed by an authorized University official.

To ensure accuracy and completeness, all IPAs must be directed through OSP for review, processing, and submission to the appropriate agency.  The IPA should be forwarded with a Sponsored Programs Approval Form (used for routing proposals) and be signed by the appropriate teaching unit and college officials, along with an acknowledgment of any cost-sharing commitments that may be required.

When government personnel come to work at the University under an IPA arrangement, such individuals serving in a faculty capacity are subject to the same appointment processes as other individuals being considered for faculty status. In all cases, teaching unit heads and college deans must be consulted to determine the impact of proposed IPA arrangements.

Government Fellowships:      Some graduate fellowship programs sponsored by government agencies (such as the Fulbright-Hays through the U.S. Department of Education) require submission through the University. Students cannot be principal investigators, even if the fellowship is intended for them.

Compliance Issues

.Important restrictions govern the use of human and animal subjects, radioactive isotopes, controlled substances, toxic materials, and hazardous chemicals, and research involving such items must adhere to federal, District of Columbia, and University policies. For more information and for the full texts of relevant policies, see Section IV-Compliance Policies of this Handbook.

THE TECHNICAL PROPOSAL

Preparation of the Technical Proposal

In general, proposals consist of two parts: the technical proposal, and the cost proposal or budget. The principal investigator is responsible for preparing the technical proposal in accordance with sponsor guidelines and requirements. Cost proposals are prepared by OSP with input from the principal investigator and, of course, the approval of the teaching unit head and the college dean. OSP prepares internal budgets, required sponsor budget forms, and internal routing forms explicating important financial arrangements and specifying the commitment of University resources. OSP staff also prepares all application forms accompanying the proposal submissions.

A good technical proposal is a concise and coherent explanation of a research or programmatic plan with specific and reasonable goals. These goals, and the methods that will be used to achieve them, must be stated clearly. Project objectives should conform to the interests and guidelines of the sponsoring agency.  The technical proposal must also demonstrate a convincing need for the proposed activity, either by showing that it fills an important gap in existing knowledge, or by showing that it serves the needs of a specific clientele of particular concern to the funding source.

Concurrent with the preparation of a technical proposal, the principal investigator should contact the teaching unit head and college dean to seek approval and support for the project.  Issues of time commitments, space, facilities, course releases, overload, and over base situations should be resolved prior to submission. OSP can aid the principal investigator on issues such as hiring additional staff or consultants, leasing space off campus, and/or entering into subcontractual agreements. Some of these require liaison between OSP and other University offices.

In addition, OSP prepares any subcontract documents in accordance with applicable sponsor policy.  For example, the federal government mandates that certain terms and conditions must be included in all subcontracts involving federal “pass-through” funds; other sponsors may have similar requirements.  In such instances, OSP transmits relevant material to the subcontractor for review and signature. 

OSP also prepares “Teaming Agreements.” These are understandings between two organizations working together on a proposal. “Teaming Agreements” must be routed in the same manner as a proposal to ensure that the school or college Dean is aware of the commitment to propose.

Checklist for Principal Investigators Developing a Proposal

To ensure the quality of the technical proposal, principal investigators should prepare answers to the following:

• What title or project name will reflect the name of the proposed research?

• What is the research problem or need for this activity? Have you reviewed current literature to determine the need for such a project or conducted a needs assessment?

• What do you hope to accomplish specifically as a result of this project?

• How will you accomplish the project goal? Why is your approach particularly suited to the problem? Discuss the activity concept, project structure, and/or formal methodology.

• How will you prove your results? An evaluation plan complete with measures of efficiency, effectiveness, or outcomes as appropriate to the project design and methodology should be described.

• What special compliance issues and risks are associated with the project? Discuss plans for IRB and /or Animal Care and Use Committee Approval, use of hazardous materials, or other risk management issues.

• Where will the project be conducted? Have space needs been evaluated?

• When will work on the project begin? When will it conclude?

• What are the qualifications for serving as the principal investigator on this particular project? Identify other skills and qualifications necessary to the activity and where/how you will provide that expertise.

• How much will it cost for you to perform this work? (This question can be fully answered only after the cost has been prepared with the assistance of the OSP staff. Effective technical proposals, however, should indicate bottom-line costs, along with the levels of effort to be invested by principal investigator and other key project personnel.)

After an initial draft of the technical proposal has been completed, the cost proposal, or project budget, can begin to be formalized.

General Format

.......Most sponsoring agencies have specific format guidelines for preparing proposals.  In the absence of such guidelines, the following format may be useful.

Title Page

The title page should include:

•  the title of the proposed research;

•  the name and address of the sponsor to whom the proposal is submitted;

•   the name and address of American University;

•  the University department where the work will be carried out;

•  the proposed period of performance;

•  total requested support (in multiyear projects, include the total for the Year 1 as well as the total request);

•  name and title of the principal investigator (see Attachment I-B for title page example.)

Abstract

While an abstract is not required by all sponsors, it is a highly effective means of presenting a project to a reviewer or review board.  The abstract should highlight the scope of the proposed research, including its objectives and the intended methodology, the anticipated results, and a statement of potential significance.  Abstracts should not exceed one typed, double-spaced page.

The abstract should stand alone as a complete description of the proposed project.  Do not refer to figures, tables, or literature appearing in any other part of the proposal.

Table of Contents (List of Illustrations/Tables)

A table of proposal contents should be included immediately following the abstract page.  A list of illustrations or tables should also be prepared, if appropriate.  Since the abstract precedes the table of contents, it is not listed there.

Introduction to Proposal

While usually brief, the proposal introduction is one of the most important parts of the grant application.  The introduction should engage the reviewer's attention, encouraging a full reading of the proposal.  Statistically, proposals that are read through at one sitting have a higher rate of success. Here are some general guidelines for the preparation of the proposal introduction:

• tailor the introduction and the technical narrative to the specific guidelines or funding criteria of the sponsor;

• state the problem, but emphasize why you and/or the University should be funded to address the problem;

• mention your previous accomplishments in the area of research proposed;

• describe your ability to carry out the project proposed;

• construct the final paragraph of the introduction to lead into the next section of the proposal.

Note: Follow sponsor guidelines on length; in the absence of detailed guidelines, the introduction should not exceed two pages.

Description of Proposed Research

This description is a detailed extension of the proposal abstract.  It should include a statement of past work that has suggested or made possible the proposed study, as well as a specific description of recent research.  Indicate how the research will relate to and reflect the current state of the art. Explain project goals and methodology carefully.  To the extent possible, describe in detail a research plan for six to twelve months.

It may be appropriate to justify certain budget requests in the technical proposal, especially if they are unusual or expensive (such as equipment that reviewers might expect to be part of the University's facilities), or if the proposed research will require an unusual amount of costs for travel, publications or supplies.

Explain the tasks to be completed by all project personnel.  Include current curricula vita for all senior project personnel.  If postdoctoral associates and/or graduate or research fellows are known, submit their vita as well.  OSP recommends that all curricula vita submitted follow a similar format.  Always check sponsor guidelines for vita requirements with regard to required information, presentation, and length.

Bibliographies, tables, charts, illustrations, reprints and other supplementary materials may be included if they enhance the effectiveness of the presentation.  Many sponsors, however, limit the number of pages of text; check to see if supplemental materials, such as appendices, are included in the page limit.

Proposal Typing

It is expected that Principal Investigators will do all proposal typing and formatting.

THE COST PROPOSAL

Procedure

Cost proposals detail the budget necessary to meet the objectives of the project. OSP, in cooperation with the principal investigator, is responsible for preparing the budget to ensure that it complies with specific sponsor requirements and University policies and practices. Budget formats vary according to sponsor guidelines. In addition to budget forms required by the sponsor, OSP prepares an “internal budget” adhering to University format.

The internal budget may include more categories than the sponsor's form, and is often submitted with the full proposal. The internal budget can also be used if the sponsor does not provide any budget forms.

The principal investigator should begin estimating costs as soon as the parameters of the technical proposal are established. OSP can assist in preparing a draft budget based on that information.  In preparing budgets, there are University guidelines that must be followed. A “Summary of Budget Assumptions for the Preparation of Proposals” and an annotated sample budget are provided in Attachment I-C.

Budgets for credit instructional programs, or projects that provide training for private sponsors are developed with the consultation and approval of the University Budget Office. The OSP staff assist in such instances. Such budgets follow an internal format prescribed by the University.

Components

Budgets include two categories of costs:  Direct and Indirect Costs.

DIRECT COSTS

Usually, Direct Costs consist of the following:

Salaries & Wages:  All personnel who will devote time to the project are listed in the budget. Include titles, the percentage of time to be spent on the project, base salaries, and the amount the sponsor is asked to pay to support each person for the budget period (or their individual period of performance). 

Proposed salaries are estimates and are paid in accordance with established University guidelines. Salary estimates beyond the current fiscal year should include merit increases (which are not guaranteed) based on the approved Budget Assumptions. Pursuant to federal regulations issued by the Office of Management and Budget (OMB), salaries charged to sponsored agreements may never exceed the proportionate share of the employee's base salary for that period (based on level of effort applied to the project). OMB regulations further instruct that rates of pay may not be other than the employee's base salary with the University.  These regulations apply only to federal contracts or to Principal Investigators who have a combination of federal and private funding.

Staff positions committed at 80 percent or more of time to a sponsored project and on some other university supported work are considered full-time.  New staff must be classified and recruited by the Office of Human Resources. OSP can assist in obtaining a “provisional” classification and salary base from Human Resources. The twelve-month salary for a staff person is the base salary. Staff supported by sponsored funds may be permanent or temporary appointments hired for the project specifically.

Faculty salaries are based on nine months of full-time service during the twelve-month academic year (AY). This income is the base salary. Sponsors differ on providing funds for the summer salary.  In general, the federal government permits faculty members to earn up to 133% of base salary in a twelve month period, including summer teaching, summer research, and administrative stipends, if the faculty member is being paid with federal funds. The University is responsible for the administration and compliance with this policy. Therefore, a faculty member who performs additional work during the three summer months may earn up to one-third (33%) of base salary in that period, depending, of course, on availability of funds. Faculty working on projects with non-federal sponsors (and not having any concurrent federally sponsored activity) may exceed 133% if funds are available.

Some proposals involve course releases, a reduced workload, or a workload reallocation for a faculty member to work on an externally funded grant or contract.  The faculty member's time may be paid for by the funding source or may be cost-shared by the University. For budget preparation and research planning purposes, the University uses the following assumptions about the allocation of a faculty member's time: 

• teaching, 60%

• research, 30%

• service, 10%

Based upon the University’s average five (5)-course load for tenured and tenure track faculty a course release can be calculated in two ways. The first is done by allocating 24% of effort during a semester to a sponsored project. The second is done by allocating 12% of effort for the entire academic year to a sponsored project. If more than one course release is requested in a year, the allocations will change. These are guidelines, however, and the final decision regarding course releases are made by the respective dean, based on the teaching unit's needs.

Graduate research appointments are for eight months of academic year support, with a possibility of additional summer support. Graduate assistants work 16 weeks per semester, 20 hours per week, and receive up to 24 credit hours of tuition per academic year, plus a stipend. A graduate study grant recipient works 10 hours per week for 16 weeks per semester and receive up to 24 credit hours of remitted tuition. Monthly stipends and tuition remission are appropriate charges to some sponsors.

Fringe Benefits:  Fringe benefits consist of the University's contributions to Social Security (FICA), retirement programs (such as TIAA/CREF), health insurance, disability insurance, life insurance, workers' compensation, unemployment compensation, and tuition remission. Fringe benefits are calculated as a percentage of salary.

A fringe benefit rate of 25.5% is charged on the salaries of full-time faculty and staff. A rate of 8% is charged on the salaries of part-time employees, student employees, and faculty working during the summer months. The fringe benefit rates are predetermined for a specified period from the University’s cognizant government agency; the current rates are in effect until April 30, 2008 and are provisional after that time.

Consultants:  Consultants provide expertise from outside the University. Consultant rates are subject to approval by the sponsor. Supporting documentation for the rate based on education, work experience, specialized technical expertise, and prior rates of pay as a consultant should be available upon request.  Each consultant must sign a consultant agreement, prepared by OSP in advance of the work performed.  Attachment I-D is an example of a consultant agreement document developed by OSP. Additional clauses necessary for an effective agreement vary depending upon circumstances.

    Intra-university consulting is normally undertaken as a University obligation with no additional compensation. In some instances, when consulting is performed in addition to one's regular teaching unit load, compensation above base salary may be possible if approved in writing by the sponsor and the Dean of Academic Affairs.

    The following are some helpful definitions that are used for accounting purposes or purposes of negotiating grants and contracts.  These definitions do not apply to non-sponsored arrangements such as occasional overload teaching, which is discussed in the Faculty Manual.

• base salary - the amount of salary a faculty member is paid for nine months of full-time service during the academic year.

• overbase situation - when a faculty member performs additional work during the summer months (June, July, and August) resulting in payment beyond the contracted salary base. Overbase beyond 133% of base salary is not permitted for faculty working all or in part on federally sponsored projects. Faculty working on projects with non-federal sponsors (and not having any concurrent federally sponsored activity) may exceed 133% during the summer or academic year.

• overload payments - when a faculty member commits more that 100% of their time to teaching, research, and consulting activities. Overload for teaching is discouraged, as stated in the Faculty Manual. Overload payments for sponsored activity are not permitted during the academic year without advance approval of the Dean of Academic Affairs, with the concurrence of the School/College Dean.

• subgrants and subcontracts -  Subcontracts are made with companies or organizations that will provide outside expertise to a grant or contract.  Before an agreement is made with an outside contractor, efforts should be made to see if the expertise could be secured within the university.  The subcontractor should provide a scope of work and a detailed budget for its portion of a sponsored program.  Subcontractors may also provide cost-share for a program.  Both types of commitments must be sent to the university in writing and signed by a person authorized to commit the organization.  If 50% or more of the requested funding will go to a subcontractor, a justification should be prepared the PI and included on the routing form.  If an award is made, a subcontractor must sign an agreement prepared by the university.

Capital Equipment:  Principal investigators should discuss potential equipment purchases with the OSP staff to ensure adherence to University and sponsor policies.

Travel:  Sponsors will generally pay international or domestic airfare if such travel is necessary to the project and is so justified and approved. For federally sponsored projects, all international travel must be on U.S. flag carriers.  In accordance with University policy, food and lodging must be shown as reimbursable expenses.  Also included should be local transportation costs, such as mileage and parking.  While per diem reimbursement for travel on government contracts is set by the federal government on a city-by-city basis (and published in The Federal Register), the use of these rates still requires prior University approval, requested from the Controller’s Office through OSP.

University employees are required to report international travel in advance of the trip to their academic units so that special international travel insurance may be arranged for them at no additional cost.   In the case of students traveling abroad on a sponsored project, this insurance must be arranged for them through the university and the cost of the insurance must be charged to the grant budget.  Please see Attachment I-E for.further.details. This.information.is.also.accessible.at http://www.american.edu/finance/rmo/insurance.html. 

Other Direct Costs may include:

• Supplies and other expendable materials, such as film;
• Computer software;
• Equipment maintenance and repair;
• Printing and publishing;
• Photocopying;
• Publication costs, such as page charges and reprints;
• Communications: telephone, postage, express mail, fax, and courier service costs;
• Meeting expenses;
• Conference registration costs;
• Space (lease or rental of off-campus space);
• Insurance.

INDIRECT COSTS (Facilities and Administration Costs) - Also Known as Overhead

    Indirect Costs (F&A Costs) are expenses incurred by the University for its facilities and services.  Indirect costs are not profit, but are real costs to the University to support sponsored activities. Examples include building maintenance and operation, utilities, libraries, computer services and other facilities, payroll, accounting, purchasing, research administration, departmental administration, personnel services, and general administration.  The University attempts to recover all of these support costs, in accordance with guidelines in the Office of Management and Budget Circulars, through the inclusion of indirect costs in proposal budgets.

        Indirect costs must be included in the budget of every proposal.  The University uses separate indirect cost rates for sponsored projects on and off campus.  The University and the U.S. Department of Health and Human Services (DHHS), which is its cognizant federal agency for indirect rate negotiation, have agreed on the current negotiated indirect cost rate for federal contracts and grants in specified fiscal years.  An equivalent rate must be applied to projects that are funded by private and nonfederal sources, pursuant to the agreement with DHHS and the Office of Management and Budget (OMB), Circulars A-21 and A-110.

        American University has a new Negotiated Indirect Cost Rate Agreement effective May 1, 2005 and valid through April 30, 2008.  The new rate assesses indirect costs on a Modified Total Direct Cost basis.  The OMB Circular A-21 G.2.  states that the Modified Total Direct Costs basis excludes assessment of indirect costs on tuition, capital expenditures, space rental, sub grants or subcontracts in excess of $25,000, and participant support costs.   Participant support costs are defined as pass-through costs to support program participation directly attributable to an individual who is not an employee of AU or a consultant providing a service.    

The new rate agreement may be viewed on the web page of the Office of the Controller at http://www.american.edu/finance/genacct/.    The circular may be found at (http://www.whitehouse.gov/omb/circulars/a021/a021.html).

Some sponsors, particularly some foundations, have specific written policies that preclude the use of the full indirect cost rate.   Some agencies limit indirect costs for instructional (or training) programs.  Pursuant to approval of the Provost, the Director of OSP will honor sponsor prohibitions, or limitations on indirect cost recovery, that represent the written regulations of the sponsor.  By contrast, for unilateral waivers of all or part of indirect costs by the University, a written justification from the principal investigator with the concurrence of the school or college dean, must be submitted to the Director of OSP through the established process.  After OSP review, the request is submitted to the Provost through the Dean of Academic Affairs for final decision.  Budgets with less than full indirect cost recovery must be justified on the basis of their special value to the University, or on the resulting competitive advantage.

Cost Sharing

Occasionally, sponsors require the University to make a contribution to a project's total cost needs. Cost sharing must have the concurrence of the teaching unit head and School/College Dean since their budgets bear such direct costs.  Each college has a budget to cost share new expenses, and the authority to commit existing “on-budget” resources for sponsored projects. OSP has no resources for direct cost share or tuition remission.

Since cost sharing is examined and audited by the sponsor organizations, the budget proposal must specify the exact amount of contributions anticipated.  The term “in-kind services” (for example, in the case of faculty time donated to a project) is difficult to audit and should be avoided. Instead, the budget proposal should include the dollar value of all such services, to ensure the project receives full credit.  Contact the OSP staff member for assistance with cost-sharing issues.

Subagreements

A subagreement may be either a subcontract or a subgrant, each of which is an agreement between the University and a third party to transfer a portion of the University's obligations on a sponsored project to that party.

If a proposal includes the use of subagreements, the principal investigator should include an explanation of why the price to be paid to the subcontractor or subgrantee is appropriate and reasonable. Estimates obtained from the proposed subcontractor should be attached to the budget proposal.  Federal agencies often require a separate Cost and Pricing Proposal and appropriate Subcontractor Certifications, in accordance with the Truth-in-Negotiations Act.

Principal Investigators should identify each subagreement separately in the budget proposal. Sponsor approval of the proposal normally constitutes approval of the subagreements that are included in it.

Subagreements are not executed until the grant or contract has been awarded.  Subagreements are undertaken through the University's regular procurement process.  OSP prepares and negotiates subagreements to conform to appropriate federal requirements.

Subagreements are developed by the assigned OSP staff working closely with the Principal Investigator.  Once the subagreement has been finalized, OSP sends it to the Director of Procurement and Contracts under the Office of the Vice President for Finance and Treasurer (VPFT) for the university signature.

PROCESSING THE PROPOSAL

After the technical and cost proposals are complete, the principal investigator prepares the other forms to be included in the application packet.  Proposals are submitted with a transmittal letter from the Dean of Academic Affairs, the Dean of the School or College, or the Director of OSP to the sponsoring agency.  Transmittal letters often clarify the University policies on budgeting or other issues. OSP prepares the transmittal letter, and processes the proposal through the University's routing and approval procedure.

The University has a standard Sponsored Programs Approval Form, which must accompany each proposal through the University's approval process.  A copy of the form is provided in Attachment I-F.

Routing through the University

Once the approval form, the technical proposal, the budget proposal, and all attachments are prepared, OSP will obtain the required signatures.

The final submission represents an offer by the University to perform the activities specified in the proposal.  The review and approval process ensures compliance with both sponsor and University policies.

            As the certifying official for the university, the Institutional Signatory requires sufficient time to review and sign proposals.  A proposal must be in the office of the Institutional Signatory twenty-four (24) hours before it is due.  Proposals that reach the office on the day they are due will not be signed unless the Dean of the School or College makes a special request.

For proposals under $250,000 going to a U.S. address, you should allow a minimum of one week for the review and signing of the approval form.  Proposals that have a cumulative total of $250,000 and more and proposals of any amount going to an international address must have completed the University’s pre-approval process as detailed on page 1-9.  Allow three weeks prior to the submission date of such proposals for the pre-approval process.

    Signatures required vary with the type of project being proposed. When the principal investigator signs the approval form, he or she is approving the entire proposal and assuming responsibility for

• the scope of scientific and technical effort,

• preparation of required technical reports, and

• management of the project within the budget and time constraints of the proposal in compliance with sponsor regulations and University policies.

The principal investigator may not delegate his or her authority to approve proposals.

Teaching unit heads and college deans certify the academic soundness of the project, facility and space availability, cost sharing (other than any indirect cost waiver that is a documented sponsor policy), course release arrangements, and the compatibility of the project's goals with the teaching unit's objectives.

 Proposals are routed through the teaching unit, School/College Deans, and the Dean of Academic Affairs/Director of OSP.   A project involving faculty or staff from more than one unit must be routed through all units involved. Projects that provide credit as part of the overall project must be priced by the University Budget Office as well as approved on the routing form.  OSP can assist in the preparation of these budgets but receives final approval for pricing from the Budget Office.

Photocopying and Presentation

OSP does all copying in-house unless the sponsor requires certain types of copying which OSP cannot provide.  In such a case, OSP will arrange for the proposal to be copied commercially.  In order to provide this service, OSP will need sufficient lead time to process proposals. 

Submission of Proposal

After a proposal has been reviewed and approved, OSP will forward the required number of copies to the sponsor, along with a transmittal letter.   Copies of the completed proposal package will be distributed internally to each university signatory after submission to the sponsor.

While unsolicited proposals may be submitted at any time, Principal Investigators should allow six to nine months between the date of submission and the anticipated starting date for the project.  In general, proposals to be funded in a particular federal fiscal year (which ends September 30) should be submitted no later than February.

Electronic Proposal Submission

Frequently sponsors require electronic submission of proposals. Systems range in complexity from the National Science Foundation's Fastlane to requests for e-mail files. OSP maintains upgraded computer equipment and staff resources to assist Principal Investigators with electronic submission.

Due to the difficulties inherent in the electronic submission process, OSP cannot guarantee the timely submission of proposals that are sent less than 48 hours before the due date. Proposals that do not meet the advance submission requirement of 48 hours will be accepted and OSP will attempt to send the proposal. Missing the advance submission requirement will mean that, should the sponsor system be having difficulty, OSP may not be able to make alternative arrangements with the sponsor in time for the legal due date.

Delivery

The letter of transmittal, the original signed proposal and budget, and all the required copies are delivered by courier in the D.C. area, or mailed to the sponsor via first-class, certified mail with return receipt requested. OSP facilitates delivery of the proposal to the sponsor, including arrangements with an air courier or express mail service when necessary.

Submission of Revisions

Revisions to the cost proposal are often necessary as a result of negotiations with the sponsor prior to the award of the grant or contract. Sometimes the technical proposal must also be revised. Review and approval of budget and technical revisions should follow the same procedures as indicated for the original submission.

Attachment I-A

DATABASES, PUBLICATIONS, AND GUIDELINES AVAILABLE AT OSP

The following source materials are among the most widely used in OSP by faculty and staff:

Federal Grants and Contracts Weekly

Published by Capitol Publications, Inc., Alexandria, VA.   Lists grants offered by the Department of Education, HUD, DOD, HHS, NEA, NRC, EPA, and offers basic rules for grant applications.

The Grant Advisor

Published monthly, distributed to colleges and universities.  Grant opportunities from federal agencies and private sources, including a deadline listing, in the fine arts, humanities, sciences, social sciences, education, international, and health related areas.

Files for each federal agency and department, with application packages and recent announcements, are also maintained in the OSP library.

In addition, the following annotated list is an overview of other source materials available in OSP.

DATABASES

The Chronicle of Philanthropy’s Guide to Grants -

The Guide to Grants is an electronic database of all corporate and foundation grants listed in The Chronicle of Philanthropy since 1995.

The Foundation Directory Online -

Find funders fast with the most comprehensive and current online database of foundations and their grants.  The Directory includes weekly information updates, direct links to foundation and other nonprofit tax returns and websites, daily search tips and quick-links to free web resources, a subscribers-only message board to share tips and strategies, and search tutorials that give you step-by-step instruction on how to develop effective search strategies and reliable prospect lists.

GrantsDirect -

The GrantsDirect database focuses on tracking and profiling new foundation creation nationwide. The GrantsDirect.com database lists thousands of organizations that have received grants from hundreds of foundations.

National Directory of Corporate Giving -

Published annually by the Foundation Center, this comprehensive directory features up-to-date information that helps fundraisers tap into their share of grant money earmarked by companies for nonprofit support.  Provides current data on close to 4,000 corporate grantmakers and includes over 7,600 descriptions of recently awarded grants.

PUBLICATIONS

Arts & Culture Funding Report

A monthly report on federal, state, private, and non‑profit sector financial aid for arts and cultural projects.  Includes foundation and federal grants alerts as well as a “spotlights on the arts” feature.

Chronicle of Higher Education

The Chronicle has a regular grants feature in this weekly publication.  The grants section highlights a range of opportunities and recent awards and summarizes recent legislation and regulations affecting higher education.  It is also a source for identifying individual award opportunities.

Chronicle of Philanthropy

Published biweekly, this publication covers news of corporate and individual giving, foundations, fundraising, and other issues of special interest to non‑profit organizations.

Federal Acquisition Circular

This publication is issued by DOD and NASA as an update on Federal Acquisition Regulations (FAR) applying to sponsored contracts. The updates focus on clarification of the FAR for DOD/NASA contractual issues, although the FAR is applicable to all federal agencies and departments.

Federal Grants Management Handbook

How to comply with federal requirements for non‑discrimination, environmental, historic preservation, labor standards, drug‑free workplace, freedom of information, privacy, disclosure, and patents and copyrights. Reviews prohibited activities, the judicial and administrative process, and procedures and controls.

Foundation & Corporate Grants Alert -

A monthly newsletter with updates on funding opportunities, new foundations and hard to find regional funders.  Detailed grant notices alert you to upcoming proposal deadlines, funding levels, funders’ priorities, and the program officer’s name and phone number.

NASA Grant and Cooperative Agreement Handbook

Handbook issued by NASA detailing regulations for administration of NASA research grants and cooperative agreements.

National Science Foundation Bulletin

The NSF Bulletin provides monthly news about NSF programs, deadline dates, publication meeting, and sources for information, including telephone numbers.

NIJ Reports

NIJ Reports is a bimonthly journal of the National Institute of Justice, the research area of the U.S. Department of Justice that announces the Institute's policy‑relevant research results, publications, and initiatives.

Report on Research Compliance -

A monthly newsletter (and free email versions of the monthly) with practical news you can use on your campus with the best information there is to help institutions avoid the negative publicity, financial setbacks, and management problems that compliance requirements can create.

REFERENCE BOOKS

A Guide to Managing Federal Grants for Colleges and Universities

This comprehensive 900+ page looseleaf handbook helps colleges and universities manage federal funds effectively and provide the necessary tools to reduce the chances of disallowed costs, lost funding, compliance problems and public relations nightmares.

Directory of Operating Grants

A reference directory identifying general operating grants available to nonprofit organizations.

Federal Yellow Book

Provides information on how to contact more than 31,000 top people in the Executive Branch. Provides phone numbers, addresses, and titles.  Listed by department and office.

Guide to Greater Washington DC Grantmakers -

A yearly publication, this directory lists foundations by asset size, grants awarded, and independent, corporate, and community sponsorship.  Foundations are divided by assets of over or under $1 million.

SRA Journal

The journal of the Society of Research Administrators contains several essays discussing the role of research administrators, issues in research administration, and management theory and practice.

SRA Membership Directory

Index of members of the Society of Research Administrators.

Return

Attachment I-B: 

SAMPLE TITLE PAGE

“Creating Clean Waters in the Tributaries of the Potomac River”

A Proposal Presented to

Environmental Protection Agency

401 M Street, SW

Washington, DC  20460

by

American University

College of Arts and Sciences

Department of Biology

4400 Massachusetts Avenue, NW

Washington, DC  20016

Period of Performance:  September 1, 2005 January 15, 2007

Amount Requested:  $244,562

Principal Investigator:  Dr. Mary Jones, Professor

Return

Attachment I-C

Summary of Budget Assumptions for Preparation of Proposals

I. PERSONNEL

...1. Faculty and Staff salaries

a. All faculty and staff salaries are verified at the beginning of the budget process with the.Office of the.Dean, or Executive Head of the proposing unit.

b. New staff salaries are estimated (generally at mid-point of range) in consultation with the Human.Resources Office.

c. Proposed salaries are estimates and will be paid in accordance with established University guidelines.

d. Faculty salaries are based on a 9-month Academic Year (AY) even if they are paid on a 12-month basis.

e. Faculty are limited to 133 % of base salary in a 12 month period if the faculty member is.being paid.partially or in full on a federal grant.  If no federal funds are involved, faculty may.exceed the 133%.limit.

f. Staff salaries are based on a 12-month Fiscal Year (FY) or Calendar Year (CY).

...2. Stipends for Graduate Assistants

Different stipend rates may be used if published and approved as a distinct class or cohort of fellowship by the University.  Each School/College is responsible for establishing and publishing fellowship opportunities and job descriptions as well as stipend amounts.  The OSP Staff can assist in.establishing.stipend.rates.for.the.proposal.

For succeeding academic years, the OSP Staff can provide pricing information for budgeting purposes.

3. Graduate Study Grant Recipients receive no stipend.

4. Hours (for calculation of level-of-effort costs) for Staff

a. Calendar Year/Full Year (CY/FY) -

Based on a                               Based on a

40-hr. week                             35-hr. week

Hours:                          2,080                                       1,820

Days:                            260                                          260

Months:                        12                                            12

        b. Academic Year (AY) -

        Based on an 8-hour day

        Hours:              1,560

        Days:                195

        Months:            9

...        c. Staff hired at 80% time for 9 months are considered full-time, permanent positions (which must be classified by and recruited through the Human Resources Office).  Costs may not be calculated at an hourly rate.

...        d. The academic year for Graduate Assistants/Graduate Study Grant Recipients is September 1.through.April 30 (8 months); the summer is May through August.

5. Salary increases

        a. This sentence should be included in a footnote on all proposals:

        “Salary estimates include merit increases, which are not guaranteed.”

            b For purposes of preparing subsequent year budgets, full-time faculty salaries should reflect a 5% increase each September.

            c. For purposes of preparing subsequent year budgets, full‑time staff salaries should reflect a 5% increase each September.

6. Graduate students

        a. Externally Sponsored Graduate Assistants: The full-time service requirement is 20 hours per week, or half-time at 10.hours per week, September-December, January-May, for 32 weeks during the academic year.  They.receive a stipend and up to 24 hours of remitted tuition.

        b. Externally Sponsored Graduate Study Grant Recipients: The full-time service requirement is 10 hours per week, or.half-time at 5 hours per week, September-December, January-May, for 32 weeks during the academic year.  They do not receive a stipend, but they do receive up to 24 hours of remitted.tuition.

.        c.Summer Research: There may be opportunities for summer research work.  Arrangements for such opportunities need to made with the Principal Investigator and with the approval of the School or College.

.        d. Research Assistant: An option for employment of graduate students is to hire them on an hourly .wage basis under the labor code “Research Assistant.” For students employed in this manner, there are no tuition remission benefits.

.        e. Both Graduate Assistants and Graduate Study Grant Recipients must be full-time students in good.standing at the University.

.        f. Exceptions to these policies must be approved in advance by the Dean of Academic Affairs

II. FRINGE BENEFITS

.1 A rate of 25.5% will be charged on the salaries of full-time faculty during the AY and staff during the CY.

.2. A rate of 8% will be charged on the salaries of part-time and student employees (but not graduate.assistants) during the academic year and the summer.

.3. All full-time faculty are considered “part-time” for accounting purposes in June, July and August,.and a rate of 8% is charged on their salaries during the summer months.  There are no contributions to retirement during this period.

.4. These rates will remain in effect until April 30, 2008 per the University’s rate agreement with its cognizant government agency. The rates are provisional after that date.

5. Vacation, holiday, sick leave pay and other paid absences are included in salaries and wages, and are .routinely charged to grants and contracts, and separate charges for the cost of these absences are not.made.

6. The cost of the following benefits are included in the full-time employees' fringe benefit rate:

FICA (Social Security)

Workers' compensation

Unemployment compensation

Health insurance

Life insurance

Disability insurance

TIAA/CREF (Retirement)

Tuition remission

7. The costs of the following benefits are included in the part-time employees' fringe benefit rate:

FICA

Workers compensation

Unemployment compensation

Note: These are the benefits paid for full-time faculty who are employed by the University during the summer.

III. TRAVEL

1. Mileage: Please check with OSP Development Manager.  The University uses the IRS published rate. As of January 2006, this rate $0.445 per mile.

2. Per Diem:

A. Reimbursement for travel on government contracts is limited to per diem travel rates.established by the federal government for the specific city.  For international travel (as well as Alaska and Hawaii) per diem.rates visit http://www.state.gov/m/a/als/prdm/.   For per diem rates for domestic travel, excluding Alaska and Hawaii visit http://www.gsa.gov/Portal/gsa/ep/channelView.do?pageTypeId=8203&channelId=-15943 You can obtain further information by.calling an OSP staff member.

B. As a general rule, flat rate per diem payments on sponsored projects do not require original.receipts or other documentation unless required by the grant or contract. Prior written.approval from the Office of the Controller through OSP is required, however, to use.flat rate per diem.

C. Travel performed under a sponsored project is subject to restrictions imposed by the.sponsor.

IV. TUITION

1. Graduate student tuition remission for academic year 2005-2006 is $989/credit hour. For.succeeding academic years and other categories of tuition remission (e.g., undergraduates.and law students), the OSP staff member can provide pricing information for budgeting.purposes.

2. Tuition remission may not exceed 24 hours per year without prior approval of the.School/College Dean, and the Dean of Academic Affairs.  Unused tuition remission hours cannot be carried forward to a subsequent academic year.

3. Research Assistants (not a Graduate Assistant or Graduate Study Grant Recipient-see I.5.d. of this Attachment) working solely on an hourly wage (part-time or temporary) are not.entitled to tuition remission.

V. OTHER

1. Printing and typesetting costs: Estimates are provided by University Publications (Ext. 5970).

2. .Equipment maintenance:  Estimates are provided by the Purchasing Office (Ext. 3811).

3. Maximum consultant rate:  Consultant rates are subject to approval by the sponsor...Supporting documentation for the rate based on education, work experience, specialized.technical expertise, and prior rates of pay as a consultant should be available upon request..All consultant rates for nonfederal sponsors are subject to approval by the Dean of..Academic Affairs.

4. Animal care costs: Please check with Compliance Administrator in OSP.

VI. INDIRECT COST RATES as a Percentage of total direct costs excluding capital expenditures and subawards - 5/1/05 -4/30/08

    On-campus All Programs 39%

    Off-campus adjacent (within 50 miles of AU)All Programs 13.1%

    Off-campus non-adjacent (more than 50 miles from AU)All Programs 11.1%

Note: if 50% or more of the indirect cost rate base is on-campus, the entire project is considered on-campus. 

2. This statement should be included in each budget submission: