Sponsored Programs
Award Negotiation and Set Up
Research Agreements
Who to Contact for Information:
Sponsored Programs Administration is responsible for negotiating and executing research
agreements with extramural sponsors; individual faculty members may not
contractually bind the University.
Following is background information regarding research agreements with private sponsors,
as well as a discussion of the University's position relative to certain elements
in its standard research agreement. Some sections of the agreement contain a hyperlink
to a brief explanation about the University's policies and expectations. Additional
questions regarding University principles, policies and positions related to negotiation
or administration of privately sponsored research agreements may be directed to
the Contract and Grant Officer assigned to your unit.
Background:
Part of the University's primary mission is to carry out research to advance the
frontiers of science and technology and further the University's educational programs.
Toward that end, the University will enter into arrangements for research sponsored
by for-profit entities ("industry") when that research does not interfere with University
commitments and: 1) it provides faculty the opportunity to gain experience and knowledge
of value to their teaching and research; 2) it is suitable research through which
the individual may make worthy contributions to knowledge; or 3) it is an appropriate
public service.
When conducting research for industry, the University must keep the public trust
and maintain institutional independence and integrity to permit faculty and students
to pursue learning and research freely. Consequently, University facilities may
be used only for activities appropriate to the University's mission. University
Regulation No. 4 ("Special Services to Individuals and Organizations") governs the
use of research facilities and establishes guidelines limiting research to activities
that are appropriate to the University.
University employees must avoid situations in which an employee has the opportunity
to influence a University decision (research related or otherwise) that could lead
to financial or other personal advantage, or that involves other conflicting official
obligations. University policy and State law require principal investigators to
file a financial disclosure statement indicating whether or not they have a direct
or indirect financial interest in each private sponsor of their research. When disclosure
indicates that a financial interest exists, the disclosure must be reviewed by the
UCR Conflict of Interest Committee and approved by the Vice Chancellor for Research
before funding for the research can be approved.
Prior to the initiation or conduct of a research project, the University and project
sponsor must enter into a written agreement that defines the scope of work and formalizes
the terms and conditions under which the University will conduct the sponsored project.
These terms and conditions are negotiable within the limits of University policy.
Back to top
Project Administration
All University research projects, including research sponsored by industry, are
governed by the tradition of the free exchange of ideas and timely dissemination
of research results. The University is committed to an open teaching and research
environment in which ideas can be exchanged freely among faculty and students in
the classroom, in the laboratory, at informal meetings, and elsewhere in the University.
When conducting research for industry, the University and the principal investigator
must take reasonable steps to insure that commercial pressures do not impede faculty
communication with their colleagues or their students about the progress of their
research or their findings.
A collegial environment and effective departmental management are the key to ensuring
the highest standards of performance in all research projects. The University's
policies related to research conduct, health and safety, financial management, accountability
and internal controls are applicable to conduct of all University research.
University regulations also protect the academic freedom of students, and principal
investigators are responsible for adhering to these principles. Students must be
able to choose research topics for educational reasons without being overly influenced
by the need to advance investigations of direct interest to a particular sponsor;
they must be protected against the premature transmittal of research results; and
they must be advised objectively on career choices.
Back to top
Elements of Note Regarding UCR's Standard Research Agreement
Corporate Identity
The University of California is a public trust, administered by the Regents of the
University of California, a California constitutional nonprofit corporation. All
research agreements must be issued in the University's legal, corporate name: "The
Regents of the University of California".
Back to top
Scope of Work
The scope of work is a detailed written description of the work that principal investigator
will undertake during the period of performance of the contract. It must be as explicit
as possible to avoid any conflicts over patent rights given to the sponsor.
Back to top
Period of Performance
The period of performance is the period of time between the start date and end date
of the contract in which the principal investigator is responsible for completing
the scope of work.
Back to top
Budget
As a public-supported institution, UCR is required to recover the full cost (direct
costs and F & A costs) of research conducted for outside sponsors. To do otherwise
would result in subsidizing for-profit research with public funds. The budget represents
the principal investigators best estimate of the costs that will be incurred while
conducting the scope of work.
Direct costs are project specific costs that can be identified and assigned with
a great degree of precision to a research project. The University pools F &
A costs for ease of accounting because it is difficult to assign these costs with
a relative degree of accuracy to a specific project. The federal government’s
Office of Management and Budget establishes the standards for calculating the F
& A rate and UCR negotiates its rates with the United States Department of Health
and Human Services audit agency.
Generally, the University negotiates contracts on a cost-reimbursement basis. Once
the University has incurred costs up to the amount specified in the contract for
performing the scope of work, the University is not obligated to continue work unless,
and until, the sponsor approves a revised budget to complete the scope of work and
agrees in writing to provide additional funds.
Back to top
Payment
As a public trust and non-profit institution, UCR cannot underwrite expenses for
the sponsor. The University generally requires a minimum initial payment of 25%
of the total anticipated cost upon execution of the agreement to ensure that there
is sufficient working capital available for project start-up costs. When a project
involves significant start-up costs, the University may require a larger initial
payment. Subsequent payments are generally scheduled quarterly in advance so the
the university has sufficient funding to ensure that the performance of the project
is not disrupted.
Back to top
Confidentiality
UCR must maintain an open academic environment to fulfill its mission. Research
projects involving the use of a sponsor’s confidential information will be
accepted if: (1) the extent of confidential information shared with the University
is limited; (2) the information is clearly identified by the sponsor as confidential:
and (3) the sponsor agrees that the University will not be financially liable for
disclosure. The University cannot accept projects requiring overly broad access
and use restrictions or elaborate data protection procedures.
Back to top
Rights in Data and Reports
All rights in data arising from University employment or the use of University resources
belong to the University. Title to the copyrightable materials and data that are
developed under a contract or grant from a commercial sponsor normally belongs to
the University. As an academic institution, the University must ensure that the
data, information and materials generated during the course of research remain widely
available for academic dissemination and scientific validation. Retaining rights
to such research products allows the University to ensure that its faculty can pursue
their research without undue impediments.
The University provides regular progress reports, including a final project report,
to the sponsors of its research, training and public service projects. Because most
sponsored programs are highly advanced investigations in complex fields, the conduct
of programmatic work will last several years. Generally, the University reports
its progress on an annual basis. However, alternative reporting schedules will be
discussed provided that such reporting schedules do not impede upon the progress
of the project or place an undue burden upon the University in any way.
The University regularly affords its research sponsors the right to use the data,
information and reports, but the use of such data, information and reports is limited
to research and evaluation purposes. Because the University owns such data, information
and reports, any commercial use by a sponsor would require special licensing terms.
Back to top
Publications
Because the University conducts research activities as an integral part of its overall
educational program, these activities often form the basis for articles in professional
journals, seminar reports, presentations at professional meetings, and student dissertations
and theses. Accordingly, freedom to publish and disseminate results is a major criterion
of the appropriateness of any research project. The University will undertake a
research project only if scientific results can be published or otherwise promptly
disseminated.
It is the responsibility of the University and the principal investigator to ensure
that the teaching and research environment remains open so that ideas can be exchanged
freely among faculty and students. Therefore, University policy precludes assigning
to extramural sponsors the right to keep or make final decisions about what may
be published. A sponsor may seek a short delay to comment upon and to review publications
for disclosure of its proprietary data or for potentially patentable inventions.
These are legitimate business concerns and UCR is willing to work with sponsors
to address these concerns. However, such a delay should normally be no more than
60 to 90 days.
Back to top
Patent Rights
The basic aim of the University's intellectual property policies is to promote the
progress of science and technology, to assure that discoveries and inventions are
used to benefit the public, to provide appropriate royalty revenues to the University
and the inventor, and to support University research and education through the use
of invention-related income. The University retains all patent rights from sponsored
research, and any invention or patentable idea conceived or reduced to practice
in the course of the research belongs to the University.
Subject to the conditions set forth below, research agreements may provide to a
sponsor a time-limited, first-right to negotiate an exclusive or nonexclusive license
(based upon the level of sponsor support) to patentable inventions (other than plant
patents) conceived and reduced to practice in the course of the sponsored research.
All licenses will:
- be royalty-bearing, rates negotiable and based on general industry practice for
the type of invention involved;
- provide for diligent development, commercial marketing, or use as one condition
for retention of the license; and
- normally require reimbursement of patent prosecution and maintenance costs, a license
issue fee, and appropriate minimum annual royalties.
Licenses under corresponding foreign patent may be granted where possible on terms
and conditions similar to U.S. licenses.
Back to top
Indemnification
Research, by its nature, is unpredictable and inherently involves some risk. University
research is conducted on a "best efforts" basis and without guarantee of successful
results. The University will agree to indemnify the research sponsor for the conduct
of University officers, agents, employees, students, invitees, and guests under
research contracts and it is expected that the research sponsor will reciprocate.
Back to top
Termination
Generally, either party may terminate the research agreement provided that either
party determines that the research project is no longer academically, technically
or commercially feasible. However, the University, cannot incur financial losses
resulting from termination. In the event an agreement is terminated, the sponsor
will be expected to reimburse the University for all project costs incurred through
the date of termination and for all uncancellable obligations incurred to support
the project.
Back to top
Applicable Law
The University is a constitutional entity of the State of California and contracts
accepted by the University are interpreted under California Law.
Back to top