Negotiation Issues with State Government

Amy G. Herman,

Contract Negotiator

Overview of the Issues

University treated differently than State & Local Gov’t under Fed Laws

Educating the State on federal regulations specific to Educational Institutions

Re-educate each state agency

UNC-GA pursuing Master Agreements with NC State Agencies

What is our Message Best Interest of University If the University agrees to be a vendor

providing services, then Univ. forfeits all of the benefits provided in OMB Circulars

Flow Down of Information to the Frontlines (PI’s)Establish contract requirements at pre-proposal negotiationPI’s initial discussion w/ technical monitors

Research and DevelopmentR&D means all research activities, both basic and applied & all development activities performed by a non-federal entityResearch a systematic study directed toward fuller scientific

knowledge or understanding of the subject studied

Development systematic use of knowledge & understanding

gained from research involving production of useful materials, devices, systems, or methods, including design and development of prototypes and processes

Establishing the RelationshipProcurement vs. Assistance terms and conditions of award are driven by this

determination

OMB Circulars define relationship as a Subrecipient flow down of federal assistance use of Subaward

State Agencies see us as Vendor providing goods & services use of contract

State Gov’t Culture

State sees us as a service provider

Want Maximum control over Univ.

Lack of Trust

Want completed “project” in hands before making payment

Do not want to pay Indirect Costs

IssuesState Agencies want to require additional administrative responsibilities Submission of individual timesheets (DENR) Monthly vs. annual match reporting (DENR) Payment schedule based on performance of

completed and approved tasks (DENR) Title to Equipment (DENR) Withhold/Retain funds (DENR) Due date of invoices (DHHS) Increased Record Retention (DHHS) Waiver of Indirect Costs (ALL Agencies)