University Business Affairs (UBA) is responsible for establishing and maintaining effective business relationships between ONR and the university research community. The office carries out contract and grant administration, indirect cost rate negotiations, business system reviews and quality assurance responsibilities, primarily through ONR headquarters and five regional offices located in Atlanta, Boston, Chicago, San Diego and Seattle. UBA's scope extends to the administration of contracts and grants (with educational and nonprofit institutions) issued not only by ONR, but by DoD, the Army and Air Force, NASA, DoE, and other government organizations.

A major role for UBA is the development of DoD-wide policies, procedures and objectives associated with contract and grant administration and indirect cost rates at educational institutions. Also, the office has been credited with conducting the first testing, within the Department of the Navy, of electronic data interchange (EDI) and electronic funds transfer (EFT) for invoicing and payments under contracts and grants with educational institutions. This electronic payment method dramatically reduces paperwork requirements, improves cash management, and speeds payments to grantees and contractors.

When awards are made, regional offices are available to assist government and university business officials in contracts and grants administration. Regional office representatives, known as Administrative Contracting Officers (ACOs), conduct business on behalf of the federal government and provide oversight on certain aspects of grantee/contractor business operations. ACOs process payment requests, perform reviews of university business systems, assist in negotiating indirect cost rates at certain institutions, close out award documents, and provide general assistance and information on business matters.

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