Title  : Federal Demonstration Partnership (FDP) III General Terms and
            Conditions 1 July 1997
Date   : July 1, 1997




Federal Demonstration Partnership (FDP) III General Terms and
   Conditions 1 July 1997

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
35. Changes


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 any permissible 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.  As authorized
by .23 b unless otherwise specified in the award, approval is given to include
unrecovered indirect costs as part of cost-sharing or matching contributions.

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:  If a cost benefits two or more projects or activities in proportions
that can be determined without undue effort or cost, the cost should be
allocated to the projects based on the proportional benefit.  If a cost
benefits two or more projects or activities in proportions that cannot be
determined because of the interrelationship of the work involved, then,
notwithstanding subsection c.4.b of OMB Circular A-21, the costs may be
allocated or transferred to benefited projects on any reasonable basis,
consistent with paragraphs (1) and (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 agencies (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
one 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 conduct 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

Federal Cash Transactions Report.  For awards receiving advance funding,
either an original and two copies of a Federal Cash Transactions Report (SF
272) or an electronic equivalent 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 NAS Publication, Guide for the Care and Use
of Laboratory Animals (1996) are followed and to comply with the Public Health
Service Policy and Government Principles Regarding the Care and Use of Animals
(included as Appendix D to the NAS 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.

35.  Changes

a.  Standard Procedure (FDP General Terms and Conditions)

Any FDP member (federal or non-federal) wishing to propose a change in the FDP
General Terms and Conditions will present the proposal to the FDP Steering
Committee at its regularly scheduled meeting.  The Steering Committee may
approve the proposed change, reject it, or refer it to the Terms and
Conditions Task Force for review and recommendation.  While the Steering
Committee can reject specific recommendations, any terms or conditions that
are mandated by law or Executive Order will be subject the procedure in
paragraph c. below if agreement cannot be reached in time to meet legal
requirements.  If approved, either immediately or at a later meeting on the
advice of the Terms and Conditions Task Force, the FDP membership will be
notified (either in writing or electronically) by the Terms and Conditions
Task Force and the change will be incorporated into the official FDP General
Terms and Conditions located on the National Science Foundation Home Page at:
http://www.nsf.gov/.

b.  Standard Procedure (Agency-Specific FDP Terms and Conditions)

Any federal agency FDP member planning to make a change in their
Agency-Specific FDP Terms and Conditions will present the change to the FDP
Steering Committee at its regularly scheduled meeting.  The FDP Steering
Committee may concur with the proposed change or refer it to the Terms and
Conditions Task Force for review and recommendation. Federal agencies will
accept for consideration all suggestions and recommendations and answer all
questions from FDP participants concerning their proposal.  The federal agency
involved, however, retains the right to make the change if it determines it is
in the best interest of the government.  Immediately upon finalization of the
change, the FDP membership will be notified (either in writing or
electronically) by the federal agency and the change will be incorporated into
the official Agency-Specific FDP Terms and Conditions for that federal agency
located on the National Science Foundation Home Page.

c.  Expedited Procedure

If an Executive Order, statutory change, or similar action urgently requires a
change in the FDP General Terms and Conditions or Agency-Specific FDP Terms
and Conditions, that cannot reasonably be accomplished in the time available
using the standard procedures (see a. and b. above), the federal agency
requiring the change will notify the FDP Executive Committee as well as
disseminate the change (either in writing or electronically) to the FDP
membership.  The change will be incorporated into the official FDP or
Agency-Specific FDP Terms and Conditions located on the NSF Home Page.