Federal Demonstration Project (FDP) General Terms and Conditions,

                        1 February 96

Article      Subject


1. Recipient Responsibilities and Federal Requirements

2. Allowable Costs and Prior Approvals

3. Programs of Related Projects

4.  Payment

5.  Significant Project Changes

6. Non-Competitive or Continuation Award Requirements

7. Financial Reports

8. Final Report Requirements

9.  Dissemination of Project Results

10.  Acknowledgment of Support and Disclaimer

11. Data Collection

12. Site Visits

13.  Pre-award Costs

14. Extensions Without Additional Funds

15.  Equipment and Real Property

16. Alteration and Renovation

17. Use Of U.S.-Flag Air Carriers

18.  Financial Management System

19. Procurement System

20. Program Income

21.  Unobligated Balances and Limit of Federal Liability

22.  Patents and Inventions

23.  Audits and Records

24.  Termination and Enforcement

25.  National Security

26.  Nondiscrimination

27.  Animal Welfare

28. Research Involving Recombinant DNA Molecules

29.  Clean Air and Water

30.  Human Subjects

31.  Activities Abroad

32.  Debarred or Suspended Parties

33. Closeout

34. Rights In Data



1. Recipient Responsibilities and Federal Requirements

     a. The recipient institution (recipient) has full responsibility for the
conduct of the project or
activity supported by this award, in accordance with the requirements
of this award, and for the
results.  The requirements of this award are contained in:

          (1) The Federal statute that authorized this award;
          (2) These general terms and conditions;
          (3) The supplemental agency-specific requirements of the
awarding agency that are
incorporated in the Demonstration Agreement (hereafter referred to as
agency-specific
requirements); and
          (4) Any special conditions attached to this award.

     b. If the requirements of this award conflict, the following order of
precedence shall apply:

          (1) The Federal statute that authorized this award;
          (2) Any special conditions attached to this award;
          (3) The agency-specific requirements; and
          (4) These general terms and conditions.

     c. The requirements of this award identified in subparagraph a of
this Article are the entire body of requirements of this award.  Codified
Federal Regulations, OMB Circulars, such as A-21 and A-110, and
other uncodified Federal policy or procedural requirements apply to
this award only as specified in these general terms and conditions, the
agency specific requirements, or a special condition of this award.

     d. Any request by the recipient for waiver or deviation from any
provision of either these general terms and conditions or the agency
specific requirements shall be submitted to the awarding agency's
designated representative identified on the signature page of the
Demonstration Agreement.  Any request by the recipient for a waiver
or deviation from any special condition  attached to this award shall be
submitted to the cognizant awarding agency official for this particular
award (usually the Grants Officer or Contracting Officer who signed
the award on behalf of the awarding agency).

     e. Subawards

          (1) For purposes of these general terms and conditions, the
following terms shall have the following meanings:

               (a) Recipient means the university which receives an award
directly from a participating awarding agency.
               (b) Subrecipient means any entity that is receiving funds
under the prime award on anypermissible basis other than the
purchase of goods or services.
               (c)  Subaward means any award of funds under the prime
award for purposes contemplated by subparagraph e(2) or for the
purchase of goods or services.
               (d) Subawardee means any entity that receives a subaward.

     (2) In any subaward (except a contract for the purchase of goods or
services) under this award, the recipient shall apply the following:

               (a) If the subrecipient is a party to the Demonstration
Agreement, then the requirements that apply to the subrecipient shall
be the same as those that apply to the prime recipient of this
award.
               (b) If the subrecipient is not a party to the Demonstration
Agreement, then the requirements that apply to the subrecipient shall
be those that would apply if the prime recipient were not covered by
the Demonstration Agreement.

     (3) Circular A-110 Sections ___.40- ___.48 and Appendix A as
applicable shall apply to any contract for the purchase of goods or
services under this award if the purchaser is the recipient or a
subrecipient that is a public or private nonprofit university or hospital
or any other private nonprofit organization.
     (4) The Common Rule on UNIFORM ADMINISTRATIVE
REQUIREMENTS FOR GRANTS AND COOPERATIVE
AGREEMENTS TO STATE AND LOCAL GOVERNMENTS (OMB
Circular A-102), Section ___.36, entitled "Procurement" (along with
any agency-specific additions), published in the Federal Register (53
FR 8087-8103), shall apply to any such contract if the purchaser is a
subrecipient that is a state, local or Indian tribal government, as those
terms are defined in the Common Rule.  (See also Article 19 of these
general terms and conditions.)

     f. To the extent not otherwise treated in these general terms and
conditions or the agency-specific requirements, the awarding agency
shall be bound by any of its published rules applicable to this award
(whether or not in the form of codified regulations) which:

          (1) Limit the awarding agency's right to take unilateral actions,
          (2) Establish a right for the recipient, and/or
          (3) Establish due process requirements (including, but not
limited to, any rules providing an administrative process for hearing
appeals by the recipient from decisions of the awarding
agency).

2. Allowable Costs and Prior Approvals

     a.  The allowability of costs under this award shall be determined
in accordance with the requirements of this award and the applicable
Federal cost principles in effect on the effective date of this award.

     b.  OMB Circular A-21 contains applicable Federal cost principles
for this award.

     c. The only prior Federal approvals required to be obtained by the
recipient under this award shall be those specified in any of the
requirements listed in Article 1, above, including those specified in
these general terms and conditions.  All other Federal prior approval
requirements, including those in OMB Circulars A-21 and A-110, are
waived.  The recipient may maintain such internal prior approval
systems as it considers necessary.

     d.  Indirect costs shall be reimbursed as indicated in the agency-
specific requirements.

     e.  The applicable Federal cost principles for subawards and
contracts/subcontracts under the award shall be those otherwise
applicable to the type of organization receiving the subaward,
contract or subcontract.  In addition to OMB Circular A-21, the other
applicable cost principles are:

          (1)  OMB Circular A-122 applicable to other nonprofit
organizations (as specified in the Circular) except those organizations
specifically exempted by the Circular.
          (2)  Subpart 31.2 of the FAR (48 CFR Subpart 31.2) applicable
to commercial firms and those nonprofit organizations specifically
exempted from the provisions of OMB Circular A-122.
          (3)  OMB Circular A-87 (codified in the Code of Federal
Regulations as 34 CFR Part 255) for state and local governments.
          (4)  45 CFR 74, Appendix E, for hospitals.

     f. If this award includes a cost-sharing requirement, the award shall
also be subject to the provisions of OMB Circular A-110 Section
___.23.

     g. Any subaward (including any cost-type contract or subcontract)
under this award shall address whether and how the subawardee
obtains any requisite prior approvals.  If the subawardee is a party to
the Demonstration Agreement, then the prior approval requirements
that apply to the subawardee shall be the same as those that apply to
the recipient.  If the subawardee is not a party to the Demonstration
Agreement, the prior approval requirements that apply to the
subawardee shall be those that would apply if this award were not
covered by the Demonstration Agreement. In either case, the recipient,
not the Federal awarding agency, shall grant or deny the subawardee's
requests for prior approval.

     h.  Allocability and Documentation Standards

          (1) Cost Principles: The recipient institution is responsible for
ensuring that costs charged to this award are allowable, allocable, and
reasonable under the applicable cost principles.
          (2) Internal Controls:  The institution's financial management
system shall ensure that no one person has complete control over all
aspects of a financial transaction.
          (3) Multiple Benefit: (Not applicable to NIH) If a cost benefits
two or more projects or activities, the costs may be charged or
transferred to either or any of the awards involved as long as the
productivity and the approved scope of those awards are maintained;
the costs are otherwise allowable; and the proper internal controls are
in effect (see h(1) and h(2) above).
          (4) Documentation: Federal requirements for documentation are
specified in OMB Circulars A-21 and A-110 and agency policies on
cost transfers.  If the institution authorizes the Principal Investigator
or other individual to have primary responsibility for the management
of grant funds, then the institution's documentation requirements (e.g.,
signature or initials of the Principal Investigator or designee or use of
a password) need not provide for additional documentation
(explanations or certifications) beyond that required in this paragraph
h.

3. Programs of Related Projects

     a.  General

          (1) Often, when the same person serves as the Principal
Investigator/Project Director (PI/PD) under two or more Federal
awards, the ostensibly discrete projects supported by those awards
actually comprise a single program of related projects. In some cases,
even awards with different PI/PDs may support projects that comprise
such a program.
          (2) This Article provides a special rule on allocating costs to a
program of related projects. It also provides criteria and procedures for
determining whether two or more projects supported by separate
awards comprise such a program.

     b. Allocation of Costs

          (1) If the project supported by this award is determined to be
part of a program of related projects, in accordance with paragraphs c
and d, below, then the recipient may treat the entire program of related
projects as a single cost objective for purposes of paragraph C.4,
"Allocable costs," of OMB Circular A-21.  A cost that is allocable to
the program may be charged by the recipient to any one or more of the
constituent projects/awards that make up the program, in any
proportion.
          (2) For purposes of this paragraph b, the terms "particular
sponsored agreement" and "the sponsored agreement" in subparagraph
C.4.b. of OMB Circular A-21 shall be understood as referring to the
program of related projects, and the term "other sponsored
agreements" in that paragraph shall be understood as referring to any
project/award that is not part of the program of related projects.

     c. Criteria

     The following criteria shall be used to determine whether two or
more separate awards comprise a program of related projects:

          (1)  Either (a) the theoretical approaches are interrelated; (b)
studies of the same phenomena are conducted by the same or different
techniques; or (c) studies of different phenomena are conducted by the
same technique; and
          (2)  All or most of the costs of each project would also be legally
permissible for support under the Federal appropriations from which
the other projects are funded.  (This criterion is  intended to preserve
the integrity of the Federal appropriations process.  It is noted that
Federal appropriation law does not preclude two or more awards from
participating in a pool of costs some of which are not eligible under
one or more of the awards.  This is permissible so long as none of the
awards is charged, in total, more than the allowable costs which are
eligible under its appropriation.  If that principle is observed, the
question of which costs are assigned to which award is moot); and
        (3) All of the projects/awards involved are covered by the
Demonstration Agreement.

     d. Procedures

          (1) The recipient may request a determination that two or more
projects comprise a program of related projects.  To be considered as
part of a program of related projects, at the time the request is
submitted, a project must have at least 30 days of active status
remaining in the project period. The request must:

             (a) Be in writing (a Project Relatedness Request Form is
available for this purpose), and be sent to the lead agency's designated
representative (as specified in the Demonstration Agreement) and a
copy sent to the designated representative (or the Office of Policy for
Extramural Research Administration, NIH) of each of the other
gencies (if any) involved;
             (b) Be signed by the PI/PD (or by each PI/PD, if more than
one) and countersigned by another authorized official of the recipient;
             (c) Identify the appropriate relatedness criterion (under
paragraph c of this Article) and include a brief statement of why the
recipient believes the projects meet that criterion.

          (2) For purposes of this paragraph, "lead agency" is the
participating agency which provides the preponderance of dollar
support to the projects to be related. If all of the projects to be related
are National Science Foundation (NSF) projects, the procedure in
subparagraph d(1)(a) above need not be followed. If the request is to
relate an NSF project(s) and a project(s) of on or more of the other
participating agencies, the lead agency will be other than NSF
regardless of the NSF dollar support.
          (3) The lead agency shall consult with the other affected Federal
awarding agency or agencies, and shall grant the request, in writing
(by means of the Project Relatedness Request Form) within 30 days of
receipt, if it concludes that the criteria in paragraph c, above, are met.
The lead agency will rely on the opinion of the other affected Federal
agency or agencies concerning their statutory authority(ies).
          (4) No project may be included in a program of related projects
unless the awarding agency for that project agrees.

4.  Payment

Payment shall be made in accordance with OMB Circular A-110,
Section ___.22 with the awarding agency specifying the method and
reason if other than advance payment method is used.

5.  Significant Project Changes

     The recipient organization and the principal investigator are
responsible for the effective onduct of the project as approved in the
grant award.  Prior written approval is required from the awarding
agency if there is to be a significant project change.  Examples of
significant project changes include:

     a.  Change in scope or objectives -- If the phenomenon(a) under
study or the objectives of the project, stated in the approved application
or approved modifications thereto, have been changed.

     b.  Absence or change of Principle Investigator/Project Director
(PI/PD) -- If the approved PI/PD:

          (1) severs his or her connection with the recipient, or
          (2) otherwise relinquishes active direction of the project (either
permanently or for a continuous period of more than 3 months or a 25
percent reduction in time devoted to the project), then the recipient
must either:

               (a)  appoint a replacement PI/PD with the approval of the
awarding agency,
               (b)  relinquish the award (in which case the award shall be
terminated by mutual agreement in accordance with Article 24), or
               (c)  seek and receive prior approval from the awarding
agency for the reduction of time devoted to the project.

     c.  Transfer, by contract or other means, of a significant part of the
research or substantive programmatic effort, after an award has been
made.  The recipient must submit a justification, a description of the
scientific/technical impact on the project, and a budget estimate to the
cognizant awarding agency official.  Contractual arrangements that
are disclosed in the proposal or modifications thereto do not require
additional post award approval, unless specifically withheld in the
award.  Such changes should be proposed in writing to the cognizant
awarding agency official by an authorized official of the recipient
organization.  The agency decision will be transmitted in writing by
the cognizant awarding agency official.

6. Non-Competitive or Continuation Award Requirements

     a. Applicability. Unless otherwise specified in agency-specific
requirements or in the special conditions of an award, the following
process shall be used to receive support for the remainder of a project
period award.

     b. Policy. After issuance of an initial (usually 12-months) award,
and if there is recommended future support, award recipients must
submit a technical progress report in order to receive additional annual
recommended increments of funding remaining in the project period.

     c.  Content of Technical Progress Report.  The technical progress
report should be written in language readily understandable to a
scientist who may not be a specialist in the field of the project's
research.  The style used in Scientific American articles would be
appropriate.  Abbreviations and language that may not be generally
known to the broader scientific community should be avoided or
clearly defined. It is suggested that the entire report, exclusive of the
list of publications, not exceed 2 pages.  The report should include the
following components:

     (1) Specific aims - If the aims have not been modified from the
original application, state this.  If they have been modified, give the
revised aims and the reason for the modification.
     (2) Results - Emphasize findings and their significance to the field,
their relationship to the general goals of the award, their relevance to
the agency's mission, and their potential practical applications.  Also
address unexpected problems you have encountered, or might
encounter, in carrying out this project.
     (3) Plans for the coming year
     (4) Publications -  List only those arising from this project. Copies
of publications and reprints which have not previously been submitted
to the agency should be enclosed with the report.  Due one time per
year at time determined by the agency.

     d. Budget.  Revised budget information will be required under this
demonstration funding mechanism if there are any significant changes
in the size or scope of the project or in the originally negotiated total
estimated cost for the project period.

7. Financial Reports

     a.  Financial Status Report

          (1) If the budget period (or other funding period) exceeds 18
months, an original and two copies of the Financial Status Report
(FSR) (SF 269 or SF 269-A) or the electronic equivalent shall be
submitted to the cognizant awarding agency official by the recipient
within 90 days of the anniversary date of the beginning of the budget
period (or other funding period) unless otherwise specified in the
grant.
          (2) For multiple-year projects funded in annual increments, an
original and two copies of the FSR must be submitted to the cognizant
awarding agency official by the recipient within 90 days of the end of
each budget period.

     b. Federal Cash Transactions Report

     For awards receiving advance funding, an original and two copies
of a Federal Cash Transactions Report (SF 272) shall be submitted
within 15 days following the end of each funding quarter.

8. Final Report Requirements

     Within 90 days following the expiration or termination of the
project, the recipient must furnish the cognizant awarding agency
official with:

     a.  An original and two copies of a final performance report which
covers the entire period of support;

     b.  Final expenditure and disbursement information on the
Financial Status Report and/or Federal Cash Transactions Report, as
required by the awarding agency; and

     c.  Any other reports required under this award, including
invention reports.

9.  Dissemination of Project Results

     a.  The recipient is expected to publish or otherwise make publicly
available the results of the work conducted under this award.

     b.  At such time as any article resulting from work under this
award is published in a scientific, technical, or professional journal or
publication, two reprints of the publication should be sent to the
cognizant awarding agency official, clearly labeled with the award
number and other appropriate identifying information.

10.  Acknowledgment of Support and Disclaimer

     a.  An acknowledgment of awarding agency support and a
disclaimer must appear in the publication of any material, whether
copyrighted or not, based on or developed under this project, in the
following terms:

     "This material is based upon work supported by the [name of
awarding agency(ies)] under Award No. [Recipient should enter the
awarding agency(ies) award number(s)] ."

     b. All materials, except scientific articles or papers published in
scientific journals, must also contain the following:

    "Any opinions, findings, and conclusions or recommendations
expressed in this publication are
those of the author(s) and do not necessarily reflect the views of the
[name of awarding agency(ies)]."

     c. Any solicitation using Federal grant funds to procure goods and
services (including construction) costing $500,000 or more must
announce the amount and percentage of total costs to be financed with
Federal funds.

11. Data Collection

     Data collection activities, if any, performed under this project are
the responsibility of the recipient, and awarding agency support of the
project does not constitute approval of any survey design,
questionnaire content, or data collection procedures. The recipient
shall not represent to respondents that such data are being collected for
or in association with the awarding agency without the specific written
approval of  the cognizant awarding agency official of such data
collection plan or instrument.  However, this requirement is not
intended to preclude mention of awarding agency support of the
project in response to an inquiry or acknowledgment of such support
in any publication of these data.

12. Site Visits

     The awarding agency, through authorized representatives, has the
right, at all reasonable times, to make site visits to review project
accomplishments and to provide such technical assistance as may be
required. If any site visit is made by the awarding agency on the
premises of the recipient, a subrecipient, or contractor, the recipient
shall provide, and shall require its subrecipients and contractors to
provide, all reasonable facilities and assistance for the safety and
convenience of the Government representatives in the performance of
their duties. All site visits and evaluations shall be performed in such a
manner as will not unduly interfere with or delay the work.

13.  Pre-award Costs

     Recipients may incur pre-award costs 90 calendar days prior to
award or more than 90 calendar days with the prior approval of the
Federal awarding agency.  All pre-award costs are incurred at the
recipient's risk (i.e., the Federal awarding agency is under no
obligation to reimburse such costs if for any reason the recipient does
not receive an award or if the award is less than anticipated and
inadequate to cover such costs.)

14. Extensions Without Additional Funds

     Recipients may extend the expiration date of the project if
additional time beyond the established expiration date is required to
assure adequate completion of the original scope of work within the
funds already made available.  A single extension, which shall not
exceed twelve (12) months, may be made for this purpose, and must be
made prior to the originally established expiration date. The recipient
must notify the cognizant awarding agency official in writing with
the supporting reasons and revised expiration date at least ten (10)
days prior to expiration of the award.

15.  Equipment and Real Property

     a.  Expenditures for general purpose equipment which would be
treated as direct costs for the project or program are unallowable
unless the equipment is primarily used in the actual conduct of the
research.

     b. The recipient shall maintain a property management system
which, at a minimum, meets the requirements of OMB Circular A-
110, Sections ___.30 through ___.37, and which, in its essential
elements, remains as approved by the Office of Naval Research
(ONR).  ONR shall be notified of any major change(s) to the approved
system.

     c. Title to equipment purchased or fabricated with awarding agency
or cost sharing funds, as direct costs of the project or program, shall
vest in the recipient upon acquisition.  The recipient shall specify in
any subaward (including cost-type contracts only) whether title to
equipment purchased or fabricated under the subaward vests in the
recipient, the subrecipient or the contractor, as applicable.  The
recipient shall also require the subrecipient to specify, in any cost-type
contract awarded by the subrecipient, whether title to equipment
purchased or fabricated by the contractor vests in the contractor or in
the subrecipient.

     d. In accordance with the exemption provided by P.L. 95-224, as
amended by P.L. 97-258 (31 U.S.C. 6306), the recipient (and the
subrecipient or contractor, if applicable) shall be exempt
from accountability to the Federal Government for equipment acquired
under this award.  For any item of equipment with an original
acquisition cost of $5,000 or more, the Federal Government may
require that title be transferred to the Federal Government or a third
party if the project or program for which the equipment was purchased
is transferred to another recipient. In any such case, the awarding
agency(ies) will notify the recipient of the intent to transfer title within
120 days following the expiration or termination of the project(s).

     e. No real property may be acquired or constructed under this
award.

     f. Nothing in this Article requires the recipient or subrecipient to
maintain any records that would not otherwise be required for
equipment acquired under this award.

16. Alteration and Renovation

     a. Work required to change the interior arrangements or other
physical characteristics of an existing facility or installed equipment so
that it may be more effectively used for its currently designated
purpose or adapted to an alternative use to meet a programmatic
requirement, is allowable subject to the following:

          (1) The building to be altered or renovated must have a useful
life consistent with research purposes and be architecturally and
structurally suitable for conversion to the type of space required;
          (2) The alteration and renovation must be essential to the
project supported;
          (3) The space involved must actually be occupied by the project
or program;
          (4) The space must be suitable for human occupancy before
alteration and renovation work is started, except where the purpose of
the alteration or renovation is to make the space suitable for some
purpose other than human occupancy (e.g., storage); and
          (5) If the space is rented, evidence must be provided that the
terms of the lease are compatible with the alteration and renovation
proposed.

     b. The recipient and the awarding agency shall comply with the
applicable requirements of the National Environmental Policy Act of
1969 (42 U.S.C.4321 et seq.); the Flood Disaster Protection Act of
1973 (42 U.S.C.4001-4128); the Architectural Barriers Act of 1968, as
amended (42 U.S.C. 4151 et seq.); Section 502 of the Rehabilitation
Act of 1973, as amended (29 U.S.C. Sec. 792), and the standards
contained in "Specifications for Making Buildings and Facilities
Accessible to and Usable by the Physically Handicapped" (American
National Standards Institute, Inc., A-117.1 1961; reaffirmed 1971).

17. Use Of U.S.-Flag Air Carriers

     a. The Comptroller General of the United States, by Decision
B138942 of June 17, 1975, as amended March 31, 1981, provided
guidelines for implementation of Section 5 of the International Air
Transportation Fair Competitive Practices Act of 1974.

     b. Any air transportation to, from, between, or within a country
other than the U.S., of persons or property, the expense of which will
be assisted by this award, must be performed on a U.S.-flag air carrier
if service provided by such carrier is "available."

     c. The following rules apply unless the result would be use of a
foreign air carrier ("foreign carrier") for the first or last leg of travel
from or to the U.S.:

          (1) A U.S.-flag air carrier ("U.S. carrier") shall be used to
destination or, in the absence of through service, to farthest
interchange point.
          (2) If a U.S. carrier does not serve an origin or interchange
point, a foreign carrier shall be used to the nearest interchange point to
connect with a U.S. carrier.
          (3) If a U.S. carrier involuntarily reroutes the traveler via a
foreign carrier, the foreign carrier may be used.

     d. Exceptions. In the following situations, use of a foreign carrier is
permissible:

          (1) Travel to and from the U.S.  Use of a foreign carrier is
permissible if:

               (a)  The airport abroad is the origin or destination airport,
and use of a U.S. carrier would extend the total travel time 24 hours or
more than would travel by foreign carrier; or
               (b)  The airport abroad is an interchange point, and use of a
U.S. carrier would require the traveler to wait six (6) hours or  more to
make connection or would extend the total travel time six (6) hours or
more than would travel by foreign carrier.

          (2) Travel Between Points Outside the U.S.  Use of a foreign
carrier is permissible if:

               (a) Travel by foreign carrier would eliminate two (2) or more
aircraft changes en route;
or
               (b) Travel by U.S. carrier would extend the total travel time
six (6) hours or more than would travel by foreign carrier.

          (3) Short Distance Travel.  For all short distance travel,
regardless of origin and destination, use of a foreign carrier is
permissible if the elapsed travel time on a scheduled flight from origin
to destination airport by foreign carrier is three (3) hours or less and
service by U.S. carrier would double the travel time.

18.  Financial Management System

     The recipient shall maintain a financial management system
which, at a minimum, meets the requirements of OMB Circular A-110
Section ___.21.

19. Procurement System

     The recipient shall maintain a procurement system which, at a
minimum, meets the requirements of OMB Circular A-110 Sections
___.40 - ___.48, and which, in its essential elements, remains as
approved by the Office of Naval or Research (ONR).  ONR shall be
notified of any major change(s) to the approved system.

20. Program Income

     Program income will be subject to OMB Circular A-110, Section
___.24.  The provisions of Section ___.24(b)(1) will apply to the
disposition of program income unless addressed separately by the
awarding agency in an agency-specific term or condition or in the
grant.

21.  Unobligated Balances and Limit of Federal Liability

    a. Any unobligated balance of funds which remains at the end of
any funding period, except the final funding period of the project,
shall be carried over to the next funding period, and may be used to
defray costs of any funding period of the project in addition to the
current year's funding.  Since the carryover of unobligated balances is
automatic, no separate or specific awarding agency prior approval
shall be required to authorize use of the funds.

     b. The recipient shall notify the awarding agency by means of the
Financial Status Report of the amount of unobligated balance as of the
end of each funding period.

     c. The maximum obligation of the awarding agency to the recipient
is the amount indicated in the award as obligated by that agency.
Nothing in this Article or in the other requirements of this award
requires the awarding agency to make any additional award of funds
or limits its discretion with respect to the amount of funding to be
provided for the same or any other purpose.

22.  Patents and Inventions

     a. This award, as performed by the recipient, shall be subject to the
Patents Rights (Small Business Firms and Nonprofit Organizations)
clause at 37 CFR 401.14 (51 FR 25517, et seq., July 14, 1986, or any
subsequent amendment in effect as of the beginning date of this
award) and the following:

          (1)  In each instance where the term contract or contractor is
used in the clause, those terms shall be read as award and recipient,
respectively.
          (2) In each instance where the term Federal Agency, agency, or
funding Federal agency is used in the clause, the term shall be read to
mean the awarding agency for this award.
          (3) Under paragraph (g) of the clause, the title shall read
Contracts and Subawards under the Award, and, in that paragraph,
subcontract and subcontractor shall be read as contract or subaward
and contractor or subrecipient, respectively.
          (4) Under subparagraph (g)(2) of the clause, if a contract or
subaward is to be made to any organization other than a nonprofit
organization or small business firm, as defined in paragraph (a) of the
clause, the recipient shall contact the cognizant awarding agency
official to ascertain the appropriate patent clause.
          (5) See the agency-specific requirements of the awarding agency
for the point of contact for communications on matters relating to the
clause.

23.  Audits and Records

     a.  Financial records, supporting documents, statistical records, and
other records pertinent to each year of this project shall be retained by
the recipient for a period of 3 years from submission of the annual
Financial Status Report specified in Article 7 or, for indirect cost
computation supporting records, three years from the date of
submission of the indirect cost rate computation or proposal to the
cognizant Federal agency.  Records that are the subject matter of
audits, appeals, litigation, or the settlement of claims arising out of the
performance of the project shall be retained until such audits, appeals,
litigation, or claims have been disposed of, or until the end of the
regular three-year retention period, whichever is later.

     b. Unless court actions or audit proceedings have been initiated, the
recipient may substitute copies made by microfilming, photocopying,
or similar methods for the original records.

     c. The head of the awarding agency and the Comptroller General of
the United States, or any of their duly authorized representatives, shall
have access to any pertinent books, documents, papers, and records of
the recipient organization, and the performing organization, if
different, to make audits, examinations, excerpts and transcripts.
Further, any negotiated contract in excess of $10,000 made by the
recipient shall include a provision to the effect that the recipient, the
awarding agency, the Comptroller General, or any of their duly
authorized representatives, shall have access to pertinent records for
similar purposes.  The rights of access to records in this paragraph
shall not be limited to the required retention period, but shall last as
long as the records are retained.

     d. In order to avoid duplicate Record keeping, the awarding agency
may make special arrangements with recipients to retain any records
that are needed for joint use.  The awarding agency may request
transfer to its custody of records not needed by the recipient when it
determines that the records possess long-term retention value. When
the records are transferred to or maintained by the awarding agency,
the 3-year retention requirement is not applicable to the recipient.  In
the event that records are transferred to the awarding agency, the
awarding agency will negotiate a mutually agreeable arrangement with
the recipient regarding reimbursement of costs associated with the
transfer.

     e. The recipient shall arrange for the conduct of audits as required
by OMB Circular A-133, "Audits of Institutions of Higher Education
and Other Nonprofit Organizations".  The recipient shall provide
copies of the reports of these audits to the Federal Audit Agency
assigned cognizance.  Any Federal audit of this project deemed
necessary by the cognizant awarding agency official shall build upon
the results of the audit(s).

24.  Termination and Enforcement

     a. Termination and enforcement conditions of this award are in
accordance with OMB Circular A-110 Sections ___.60 through
___.62.

    b. Normally, action by the awarding agency to suspend or terminate
an award for cause will be taken only after the recipient has been
informed by the awarding agency of any deficiency on its part and
given an opportunity to correct it.  However, the awarding agency may
immediately suspend or terminate the award without prior notice when
it believes such action is necessary to protect the interests of the
Government.

25.  National Security

     a. The awarding agency does not expect that results of supported
research projects will be classifiable, except in very rare instances.

     b. Executive Order 12356 (47 Federal Register 14874 (1982)) states
that basic scientific research information not clearly related to the
national security may not be classified (section 1.6(b)).  Nevertheless,
some information concerning (among other things) scientific,
technological, or economic matters relating to the national security or
cryptology may require classification (section 1.3(a)).

     c. There may, therefore, be cases when a recipient originates
information during the course of a supported project that the recipient
believes requires classification under Executive Order 12356
(section 1.2(e)).

     d. In such a case, the recipient has the responsibility promptly to:

          (1) Submit the information directly to the awarding agency or
other U.S. Government agency with appropriate subject matter interest
and classification authority as specified in the agency-specific
requirements under the Demonstration Agreement, or if uncertain
which agency should receive the information, to the Director of the
Information Security Oversight Office, General Services
Administration;
          (2) Protect the information as though it were classified until the
recipient is informed that the information does not require
classification, but no longer than thirty (30) days after receipt by the
agency under subparagraph d(1); and
          (3) Notify the cognizant awarding agency official.

     e. The Executive Order requires the Federal agency with
appropriate subject matter interest and classification authority to
decide within thirty (30) days whether to classify the material.
If the agency determines the information requires classification, the
recipient shall cooperate with that agency or other appropriate
agencies in securing all related project notes and papers.

     f. If the information is determined to require classification, the
performing organization may wish to or need to discontinue the
project, in which case the award shall be terminated by mutual
agreement.

     g. If the award is to be terminated, all material deemed to be
classified shall be forwarded to the awarding agency, in a manner
specified by the awarding agency, for proper disposition.

     h. If the recipient and the awarding agency wish to continue the
project, the recipient shall obtain appropriate security clearances as
specified by the awarding agency.  Costs associated with handling and
protecting any such classified information shall be negotiated at the
time the determination to proceed is made.

     i. If the agency identified in subparagraph d(1) does not respond
within 30 days, the recipient is under no further obligation to treat the
information as classified.

26.  Nondiscrimination

     a. To the extent provided by law and any applicable agency
regulations, this award and any
program assisted thereby are subject to the provisions of Title VI of the
Civil Rights Act of 1964 (P.L 88-352), Title IX of the Education
Amendments of 1972 (P.L.92-318, 20 USC 1681 et seq.), Section 504
of the Rehabilitation Act of 1973 (29 USC 794), the Age
Discrimination Act of 1975 (P.L. 94-135), the implementing
regulations issued pursuant thereto by the awarding agency as
specified in the agency-specific requirements incorporated in the
Demonstration Agreement, and the assurance of compliance which the
recipient has filed with the awarding agency.

     b. The recipient shall obtain from each organization that applies to
be, or serves as a subrecipient, contractor or subcontractor under this
award (for other than the provision of commercially available supplies,
materials, equipment, or general support services) an assurance
of compliance as required by awarding agency regulations.

27.  Animal Welfare

     a.  Any recipient performing research on vertebrate animals shall
comply with the Laboratory Animal Welfare Act of 1966, as amended
(7 USC 2131 et seq.), and the regulations pertaining to it.  The
recipient is expected to ensure that the guidelines described in DHHS
Publication No. (NIH) 86-23, "Guidelines for the Care and Use of
Laboratory Animals," are followed and to comply with the "U.S.
Government Principles for the Utilization and Care of Vertebrate
Animals Used in Testing, Research and Training" (included as an
Appendix to the NIH Guide).

     b. The recipient is also responsible for complying with the Public
Health Service Policy on the Care and Use of Laboratory Animals
(PHS Policy) and such other requirements as are established
by the awarding agency.

     NOTE--The recipient may request registration of its facility and a
current listing of licensed dealers from the Regional Office of the
Animal and Plant Health Inspection Service (APHIS), USDA, for the
region in which its research facility is located.  The location of the
appropriate APHIS Regional Office, as well as information concerning
this program, may be obtained by contacting the Senior Staff Officer,
Animal Care Staff, USDA/APHIS, Federal Center Building,
Hyattsville, MD 20782.

28. Research Involving Recombinant DNA Molecules

     Any recipient performing research involving recombinant DNA
molecules and/or organisms and viruses containing recombinant DNA
molecules agrees by acceptance of this award to comply with the
National Institutes of Health "Guidelines for Research Involving
Recombinant DNA Molecules," July 5, 1994 (59FR 34496) amended
August 5, 1994 (59FR 40170) amended April 27, 1995 (60FR 20726),
such later revision of those guidelines as may be published in the
Federal Register.

29.  Clean Air and Water

     (Applicable only if the award exceeds $100,000, or a facility to be
used has been the subject of a conviction under the Clean Air Act (42
USC 1857c-8(c)(1)) or the Federal Water Pollution Control Act (33
USC 1319(c)), and is listed by EPA, or if the award is not otherwise
exempt.)
The recipient agrees as follows:

          (1) To comply with applicable standards, orders or regulations
issued pursuant to the Clean Air Act, as amended (42 USC 7401, et
seq.), and of the Federal Water Pollution Control Act (33
USC 1251 et seq.).
          (2) That no portion of the work under this award will be
performed in a facility listed on the Environmental Protection Agency
(EPA) List of Violating Facilities on the date that this award was
effective unless and until the EPA eliminates the name of such facility
or facilities from such listings.
          (3) To use its best efforts to comply with clean air standards and
clean water standards at the facility in which the award is being
performed.
          (4) To insert the substance of the provisions of this clause into
any nonexempt subaward or contract under the award.
          (5) To report violations to the federal awarding agency and the
Regional Office or the Environmental Protection Agency.

30.  Human Subjects

     The recipient is responsible for the protection of the rights and
welfare of any human subjects involved in research, development and
related activities supported by this award.  The recipient agrees to
comply with the agencies implementation on the common rule (i.e.
June 3, 1986 51 FR 20204; November 10, 1988 53 FR 45660; and
June 18, 1991 56 FR 28004) on protection of human, and such other
requirements as are established by the awarding agency.

31.  Activities Abroad

     The recipient should assure that project activities carried on outside
the United States are coordinated as necessary with appropriate
Government authorities and that appropriate licenses, permits or
approvals are obtained prior to undertaking proposed activities.  The
awarding agency does not assume responsibility for recipient
compliance with the laws and regulations of the country in which the
activity(ies) is (are) to be conducted.

32.  Debarred or Suspended Parties

     This award is subject to any regulations of the awarding agency
implementating Executive Orders 12549 and 12689, "Debarment and
Suspension".

33. Closeout

     This award may be closed out without an award-specific
(transactional) audit or without an organization-wide or single audit
covering the entire period of Federal support. The closeout of this
award shall not affect the retention period for, or Federal right of
access to, project records (See Article 23).  After closeout, the
awarding agency may nevertheless disallow and recover from the
recipient an appropriate amount, on the basis of a subsequently
received audit report or any other available information.

34.  Rights In Data

     a.  Definitions

          (1) "Data" as used herein, means recorded information,
regardless of form or the media on which it may be recorded.  The
term includes Computer Software, and data of a scientific or technical
nature.  The term does not include information incidental to grant
administration, such as financial, administrative, cost or pricing or
management information.
          (2) "Computer Software," as used herein, means computer
programs, computer data bases, and documentation thereof.
          (3) "Federal Government Purposes," as used herein, does not
include the right to use, or authorize others to use, Data first produced
in the performance of this award for commercial purposes. For this
document, the definition of "commercial purposes" is the right to
reproduce, produce or manufacture and sell the Data for profit.

     b. Rights in Data

          (1)  Rights in data of the Recipient of this Award.   Except as
otherwise provided in the terms and conditions of this award, the
recipient shall have the right to and may permit others to copyright,
publish, disclose, disseminate and use, in whole or in part, any Data
first produced in the performance of work under this award.
          (2)  Rights in data of the Federal Government. Except as
otherwise provided in the terms and conditions of this award, the
Federal Government, and others acting for it or on its behalf, shall
have the right, and are hereby granted a royalty-free, non-exclusive,
irrevocable license throughout the world, to use, reproduce, prepare
derivative works, perform publicly, display publicly and distribute to
the public any Data including Data copyrighted pursuant to
subparagraph b.(1) above, first produced in the performance of work
under this award for Federal Government purposes.