Research Topic

Industry and Private Funding

Description

Industry and Private Funding Matrix

This matrix identifies typical attributes associated with a variety of industry and private funding contracts. The matrix also seeks to clarify the nature of gifts, grants and contracts from industry for our campus units, and to provide guidance for prospective industry partners. Contact SPA with any questions.

Attribute

Charitable Contribution or Gift

Affiliations1

Grant

Facilities Use (Research Facilities and Equipment)

Technical Testing

Negotiated Contract: Revenue Generating

Negotiated Contract: Research and Sponsored Activity

Intellectual Property Terms (Inventions, Copyrightable Works)

UIUC owns; sponsor gains no free rights to use

UIUC and/or partner institution owns; members have rights to license

UIUC owns

Sponsor owns

Sponsor owns

No rights granted to customer unless specified in the contract deliverables

UIUC owns with license option to sponsor

Publication Terms

No restrictions; may acknowledge donor support in publications

No restrictions, but publications may be reviewed by members before release to the public

No restrictions

Not applicable

Sponsor can prohibit publishing of test results

Not applicable

UIUC retains publication rights with sponsor review

Scope of Work

May be unrestricted or targeted toward donor intent

No specific direction by member except as generally allowable under grant

Investigator-defined project scope

Defined research purpose for use of university-specialized equipment or facilities

Services requested as described by customer or unit

Detailed work statement defining commodity or service

Detailed work statement defining project or activity; PI or sponsor defined

Materials

None

May be exchanged among members

Sponsor may provide

Sponsor may utilize

Sponsor will provide

Other party/customer generally will not provide

Sponsor may provide

Deliverables

None; gift acknowledgement or summary report

Progress reports/copies of publications and invention disclosures

Financial and progress reporting; no expectant tangible results

Not applicable

Specified proprietary test results; no analysis

Tangible products or service

Reports, work product, or other deliverable on specific dates

Typical Payment Mechanism

Check in advance

Membership Agreement: Check in advance

Subaward/Re-Grant: Cost reimbursement or fixed price

Cost-reimbursable

Billable rate

Billable rate, fixed price or cost reimbursement

Billable rate

Cost reimbursement or fixed price

Agreement Mechanism

Letter stating gift or charitable contribution

Membership Agreement and Research Project Agreement/Subaward/Re-grant

Grant agreement

Facilities Use Agreement2

Technical Testing Agreement2

Revenue generating template or negotiated terms and conditions2

Sponsored Research Agreement template, or negotiated terms and conditions

Facilities and Administrative Costs

None

Membership Agreement: 15% unless otherwise restricted by underlying grant

Research Project Agreement/Subaward: 15% unless agreed upon otherwise

Full negotiated rate based on underlying activity

Other sponsored activities rate is allowed based on the table below

Other sponsored activities rate is allowed based on the table below

F&A is not assessed, but rates charged to customers are fully loaded with all applicable costs

Full negotiated rate based on underlying activity

Institutional Review

UIF

SPA

SPA

Purchasing and Contracts Management Office

Purchasing and Contracts Management Office

Purchasing and Contracts Management Office

SPA

Banner Fund Type

 

4 or 5

4 or 5

3

3

3

4 or 5

Account Management

UIF, college/unit

SPA, college/Unit

SPA, college/unit

College/unit

College/unit

College/unit

SPA, College/unit

Signature Delegation

UIF

SPA

SPA

Purchasing and Contracts Management Office

Purchasing and Contracts Management Office

Purchasing and Contracts Management Office

SPA

1Federally supported affiliations, such as those funded under an NSF I/UCRC award, represent exceptions to this process. For example, F&A may be further restricted, as according to program guidelines.

2Section 1.3.2 of OBFS policy, Initiation, Review, and Approval of University Contracts and Leases, provides unit heads the authority to sign certain unaltered, pre-approved contract templates under $10,000 on behalf of the University Comptroller. These contract templates and rules for their use can be found in the noted policy.

 

Customer Base Include Overhead Assessment in Rates Charged to External Customers? Max Overhead Assessment Allowed in the Rate Charged to External Customers?
Only Internal Customers, Including Grants Funds N/A - no sales to external customers N/A - no sales to external customers
Only External Customers Allowed, but not required Any amount not exceeding the applicable fiscal year's Other Sponsored Activities (OSA) rate
Mixed Customer Base, Not Including Grant Funds Allowed, but not required Any amount, not exceeding the applicable fiscal year's Other Sponsored Activities (OSA) rate
Mixed Customer Based, Including Grant Funds Required, since external customers cannot be given preferential pricing when compared to grant funds Overhead assessment charged to external customers must equal the applicable fiscal year's Other Sponsored Activities (OSA) rate

 

Industry and Private Funding Matrix FAQs

Who is responsible for invoicing for memberships fees generated by grant-based affiliations?

SPA Award Managment generates and submits invoices for grant-based affiliations. Invoice schedules and amounts must follow the terms of the related affiliation agreement.

What type of funds may my unit use to incur expenses related to grant-based affiliations?

A grant-based affiliation funded agreement is administered in a Ledger 5 (Grant) Fund. The administration of grant-based affiliation funding must comply with all applicable federal administrative requirements, awarding agency regulations, and university policy.

What is the difference between a Technical Testing Agreement (TTA) and a Facility Use Agreement (FUA)?

Customers external to the university use Technical Testing Agreements (TTA) and Facility Use Agreements (FUA). An FUA is the appropriate contractual vehicle when an external customer employee is physically present and making use of University of Illinois-owned facilities (space) or a specialized piece of equipment. A TTA is utilized when the external customer is requesting a test be completed by University of Illinois staff on their behalf. In both cases, any test results are proprietary to the external customer.

What facilities and administrative (F&A) costs should be assigned to a Facility Use Agreement?

Included in the charges of a facility use agreement are all operating costs of the building or space the external customer will be using, as well as the applicable calculated rate for use of any equipment. The F&A rate that is appropriate to the activity must be included in these agreements, typically the OSA rate.

How do you determine if an activity is representative of revenue generating or sponsored activity?

The main distinction between grant and contract revenue and educational activity or other revenue lies in the nature and the purpose of the agreement. Sponsored activity is representative of scientific research, whether basic, fundamental or applied, or a unique non-recurring service, whether in the nature of research, instruction, or public service.

In addition, agreements involving human participants, laboratory animals, radioactive or hazardous materials, biohazards (including recombinant DNA), or export-controlled materials are typically considered sponsored activity. Moreover, agreements involving instructional activities (e.g., corporate or executive education), services not requiring novel intellectual explorations, or the routine sale of goods or services are normally NOT considered to be revenue generating activity. (See Section 22—Self-Supporting/Revenue Generating Activities).

What are typical examples of Urbana-based revenue generating activities and the processing office?
  • The Purchasing and Contracts Management office processes professional services, such as consulting, educational programs, health care services, counseling, and training. This office will process entertainment and other events held on university premises.
  • Purchasing and Contracts Management, in conjunction with the University of Illinois Foundation, processes sponsorships for which the university provides acknowledgment opportunities or other considerations in return for contributions or donations, such as athletic sponsorships.
  • Purchasing and Contracts Management processes leases or rentals of university or other property, agreements for short-term use of space for a specific purpose, (i.e., a wedding or a birthday party), through Real Estate Services.
  • Purchasing and Contracts Management processes Technical Testing (TTA) and Facilities Use (FUA) agreements. A TTA is utilized when the external customer is requesting a test be completed by University of Illinois staff on their behalf. An FUA is the appropriate contractual vehicle when an external customer employee is physically present and making use of University of Illinois-owned facilities (space) or a specialized piece of equipment.
What templates are available for revenue generating activities?

There are two revenue generating templates available in Urbana:

OBFS and Counsel work with individual units to create contract templates when there is a documented business need. For additional information, see:

Related Research Topics

  Award Negotiation and Execution
  Award Terms and Conditions
  Compliance
  Gift vs. Grant

 

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