NATIONAL SCIENCE FOUNDATION The Federal Demonstration Project; Phase III Solicitation AGENCIES: National Science Foundation, National Institutes of Health, Office of Naval Research, Department of Energy, Department of Agriculture, Air Force Office of Scientific Research, Army Research Office, Army Medical Research & Material Command, National Aeronautics & Space Administration, Environmental Protection Agency ACTION: Notice _________________________________________________________ SUMMARY: This Notice announces a solicitation to participate in Phase III of the Federal Demonstration Project (FDP), to test innovative approaches to streamline processes and systems for Federally supported research and education. FDP Phase III constitutes the continuation of the Florida Demonstration Project Phase I which ran from 1986 through 1988, and the Federal Demonstration Project Phase II which began in September 1988 and will conclude in June, 1996. DATES: Proposals must be received by C.O.B. on March 20, 1996 (see section entitled "Proposal Submission and Deadline"). Evaluation and selection of organizations will be completed about May 1, 1996. Project organization and execution of Phase III agreements will be completed about June 15, 1996. FOR FURTHER INFORMATION, CONTACT: Ann Datko, U.S. Department of Agriculture, 202-401-4921, Adatko@reeusda.gov; Geoffrey Grant, NIH, 301-435-0538, GRANTG@odrockm1.od.nih.gov; Harry Haraldsen, Air Force Office of Scientific Research, 202-767- 4990, haraldse@afosr.af.mil; Robert Hardy, NSF, 703-292-8240, rhardy@nsf.gov; Richard Kall, NASA 202-358-0459, RKall@Proc.hq.nasa.gov; Charles Paoletti, ONR, 703-696-4606, paoletc@onrhq.onr.navy.mil; Dan Shackelford, U.S. Army Medical Research and Materiel Command, 301-619-7216, Dan_Shackelford@ftdetrick-ccmail.army.mil; John Showman, EPA, 202-260-6580, showman.john@epamail.epa.gov; Larry Travis, Army Research Office, 919-549-4310, Travis@ARO.emh1.army.mil; Jean Morrow, DOE, 301-903-2452, jeanmorrow@mailgw.er.doe.gov SUPPLEMENTARY INFORMATION Background In April, 1986 NSF, NIH, ONR, DOE and USDA joined with the Florida State University System and the University of Miami in a demonstration of a standard and simplified research support instrument. This Florida Demonstration Project was developed by federal officials with the encouragement of the Government- University-Industry Research Roundtable (GUIRR) of the National Academy of Sciences. This demonstration tested the use of a number of expanded authorities for grants administration by research performing organizations. Demonstrations focused on such things as eliminating most requirements for federal prior approval of certain expenditures so long as pertinent grantee administrative systems were adequate and effective and allowing grantees the authority to: a) incur pre-award costs up to 90 days before the effective date of a grant, b) extend the period of the grant for up to one year with no additional funds, and c) carry forward balances from one budget period to the next. Based on the results of Phase I, OMB authorized expansion of the Demonstration in May, 1988. FDP Phase II began in September, 1988 with 21 educational institutions or consortia and 10 federal agencies. Initially, seven task groups comprised of representatives from participating institutions and federal agencies were formed and charged with developing models for administrative reform in a variety of areas. A uniform set of policies and procedures for administration of research grants, a simplified continuation application process and elimination of equipment screening were some of FDP Phase II successes. In addition, during Phase II FDP responded to an OMB request to prepare a report on the possibility and practicality of direct charging facility costs to grants. FDP Phase II was recognized in the National Performance Review as the model for testing more efficient ways for federal agencies to interact with grantee institutions. Purpose and Scope The purpose of this solicitation is to provide a mechanism to expand the scope of and broaden the participation in the current Federal Demonstration Project. The primary focus of this new phase of the FDP will be to serve as the central test bed for demonstrations of reengineered processes and systems for federal support of research and education. Emphasis will be placed on electronic research administration and demonstrations that provide administrative relief for faculty researchers. Primary goals continue to be increased productivity, increased stewardship, and decreased administrative burden. Organization of Phase III and Phase III Activities The primary forum within the FDP Phase III for interaction among all the participants will continue to be the Committee of the Whole. Each non-federal member institution or organization will designate a minimum of two representatives (one administrator and one investigator) to the Committee of the Whole. Similarly, each federal agency participating in the FDP Phase III will designate two representatives (policy/administrative/business and program manager). Additional institutional/agency representatives may attend and participate in meetings as observers, as may representatives from affiliate membership groups. The Committee of the Whole will meet at least once a year. In addition to the Committee of the Whole, a Steering Committee will meet at least three times a year. The Steering Committee will receive and approve recommendations for new demonstrations, progress and evaluation reports on demonstrations and pilots, and approve the conveying of recommendations to the Office of Science and Technology Policy. The Steering Committee will also be responsible for establishing task forces and assigning their membership, developing position papers, reviewing and approving additional affiliate membership requests and membership terminations, and undertaking other activities consistent with FDP objectives. All member federal agencies will be represented on the Steering Committee. Depending on the number of non-federal members, participation may include one representative from each institution or a representative group of institutional representatives whose membership would rotate, offering each institution membership on the Steering Committee for a set period. An Executive Committee, consisting of two institutional Steering Committee members, two federal agency representatives, a GUIRR representative, and a senior federal science official will meet on an as needed basis and will be empowered to take necessary actions on behalf of the Committee of the Whole and/or Steering Committee. It will also develop meeting agendas, monitor task force progress, identify opportunities for new demonstrations, and act as liaison for the FDP with other groups and individuals. The Steering Committee will appoint members to the Executive Committee annually except for the senior federal science official who will be selected from, and named by, The Research Roundtable Council and will have an indefinite term of service. The GUIRR of the National Academy complex will continue to function as a neutral convenor for the FDP, and will provide the executive secretariat. It will continue to facilitate meetings and discussions of the Committee of the Whole and Steering Committee, and the contributions of the FDP to federal policy-making. The federal agency working group will continue to be comprised of representatives of the federal agency Steering Committee members. The group will convene periodically to form a consensus about proposed demonstrations and pilots they are willing to test, as well as new or revised FDP terms and conditions. The Office of Science and Technology Policy (OSTP) will be the focal point within the federal government to receive, review and implement as appropriate recommendations emanating from FDP activities. Eligibility This solicitation is open to all institutions and organizations other than state and local governments that undertake research or educational activities supported with federal funds through a grant or cooperative agreement mechanism, provided such organizations have received at least $1,000,000 of such federal support over the past two years. Existing FDP member institutions and organizations who have maintained active participation in the current Phase II of the FDP will be admitted to Phase III upon execution of a memorandum of agreement (see below) by an appropriate senior official of the organization. Consortia of federal research or education performing institutions or organizations are not eligible to participate in Phase III of the FDP, with the exception of central system offices of statewide university systems and non-profit foundations that serve as legal agents for otherwise eligible institutions (e.g. university research foundations). In such cases participation of individual member institutions in the FDP is strongly encouraged. Existing member institutions of FDP Phase II consortia will be admitted to Phase III upon execution of the memorandum of agreement. The selection of organizations for Phase III of the FDP is intended to be broadly representative of the federal research and education performing community, including large and small public and private colleges and universities (including predominantly undergraduate institutions and HBCUs), non-profit research and education organizations (including science museums), hospitals, and profit- making organizations. Every effort will be made to ensure broad representation by type, size, extent of federal support, geographic location and other characteristics. However, no commitment is made to select either a minimum number of organizations or to ensure representation by organization type or other characteristics. Expressions of interest in affiliate membership status by groups such as professional associations of researchers, educators or research and education administrators, scientific societies, and other such groups are encouraged. While such groups are not eligible for full FDP membership, their representatives may attend FDP meetings as observers and otherwise participate as appropriate in FDP activities. Affiliate membership status for smaller institutions or organizations unable to commit to the conditions for full FDP participation (see below) also will be considered. Participation Conditions As a condition for participation in Phase III, the selected organizations will be required to agree to the following conditions: 1. Establishment and maintenance of management and administrative procedures and systems that comply with the standards and requirements of the federal government for administering federal awards for research and education (including lack of material weaknesses in internal control structures as confirmed by applicable audit requirements and substantial compliance with federal policies and regulations pertaining to grant administration, such as timely technical, invention and financial reporting). 2. Agreement to actively participate in the FDP, including regular attendance, at institutional expense, of FDP committee and task force meetings, and participation in new or ongoing FDP demonstrations and pilots. Failure to attend two or more consecutive regularly- scheduled FDP committee meetings will be grounds for termination of membership. 3. Commitment to continued efforts to reengineer and streamline internal processes while enhancing the stewardship of federal support and to provide a report to the FDP membership at least every two years on these efforts. 4. Execution of a memorandum of agreement confirming the above, and setting forth certain additional understandings and requirements (copy of draft agreement will be furnished on request and may also be accessed electronically via the NSF Home Page on the World-Wide Web). Federal agencies currently participating in the FDP have agreed that agency grants and cooperative agreements to FDP member institutions and organizations (excluding affiliate members) will be governed by the "FDP Terms and Conditions" (unless otherwise required). During Phase III they are expected to use the FDP as the primary focus for tests and demonstrations of reengineered processes and systems for the support of research and education. Additional federal agencies may be admitted to the FDP upon agreement to these conditions. What To Submit Proposing organizations must submit ten (10) copies of a brief proposal (not to exceed 5 pages). The proposal must be signed by a senior official authorized to commit the organization in such matters (in the case of educational institutions Provost level or higher). It must cover the following: 1. Description of existing and planned efforts by the proposing institution/organization to reengineer and improve the effectiveness of systems for administration of federal support. 2. Description of possible Phase III demonstration and pilot projects including significance of the administrative problem or burden to be addressed, suggested methods/approaches, ways to assess the impact on productivity, and expected benefits. 3. Identification of primary institutional/organizational representatives including their background and qualifications. One of the outcomes of Phase II is a recognition of the need for greater participation in FDP activities by principal investigators and project directors of Federally supported research and education activities. Therefore proposing organizations should identify both administrative and principal investigator/project director representatives and indicate their commitment to participate in FDP activities. (It is expected that each FDP Phase III member organization will designate two representatives). 4. Indication of the proposing organization's top management commitment to reengineer administrative processes and systems, and willingness and commitment to fully participate in FDP activities. This section also should include a brief summary of the organization's characteristics: type of institution/organization, size, Federal R&D;/education funding for fiscal years 94 and 95, by year and funding agency, etc. Selection Criteria 1. Evaluation and assessment of existing reengineering activities of the organization in the area of administrative processes and systems and organizational commitment to same. 2. Significance of proposed demonstrations and pilot projects and the extent to which suggested methods and approaches clearly show potential to achieve the results sought. 3. Commitment of individuals proposed as lead organizational representatives and their experience and leadership in improving administration of federal support. 4. Evidence of organizational and top management commitment to full participation in Phase III. In addition to the above, equally weighted criteria, consideration will be given to achieving an appropriate representation of organizations, including organization type, size, extent of federal support, geographic location, etc. Evaluation of Proposals and Selection Process Evaluation of proposals will be carried out by the Standing FDP Committee on Membership, which is comprised of federal agency officials, representatives of current FDP member institutions, and GUIRR representatives. The Membership Committee will make the final selection in consultation with the Executive Committee of the FDP. Proposal Submission and Deadlines Ten copies of the organization's proposal must be received by C.O.B. March 20, 1996 at the Government--University--Industry Research Roundtable, National Academy of Sciences, National Academy of Engineering, Institute of Medicine, 2101 Constitution Avenue NW, Washington, D.C. 20410. Attention: FDP Selection and Schedule Evaluation and selection of organizations will be completed about May 1, 1996. Project organization and execution of Phase III agreements will be completed about June 15, 1996.