§ 1816.303 - Cost-sharing contracts.

(a) When cost sharing is applicable. (1) Except as provided for in paragraph (b) of this section, cost sharing by non-Federal organizations is mandatory in any contract for basic or applied research resulting from an unsolicited proposal.

(2) (i) Cost sharing by non-Federal organizations may be accepted in any contract when offered by a performing organization.

(ii) Cost sharing by educational institutions may be accepted, when voluntarily offered, if the institution is aware of NASA's policy that the amount of cost sharing is not a factor in determining whether to support a given proposal.

(b) When cost sharing is not applicable. (1) Cost sharing is not applicable to contracts for basic or applied research resulting from an unsolicited proposal when (i) the offeror certifies in writing to the contracting officer that it has no commercial, production, educational, or service activities on which to use the results of the research, and no means of recovering any cost sharing on such projects, and (ii) the contracting officer determines that cost sharing does not apply and documents the file with a memorandum. In these situations, where there is no measurable potential gain to the performing organization, mutuality of interest does not exist and it would not be equitable for the Government to require cost sharing.

(2) (i) NASA's normal policy is to fully reimburse universities for research performed on its behalf. However, to establish on a case-by-case basis that there is no clear potential for significant future benefit or measurable gain to the university, and that cost sharing is not appropriate, the contracting officer shall document the file with a determination substantively the same as that required by (b)(1) of this section. The determination shall identify the information on which it is based. If the determination cannot reasonably be made from the available information, the contracting officer shall request the university to certify as in (b)(1) of this section. Blanket procedures shall not be established for routinely obtaining certifications from all universities.

(ii) NASA does not request inclusion of cost-sharing information in proposals from educational institutions. If cost sharing is determined applicable, a cost-sharing offer will be requested during negotiations.

(c) Amount of cost sharing.—(1) Educational institutions and affiliated not-for-profit institutions. Cost sharing, if used for educational institutions and affiliated not-for-profit institutions, normally varies from one percent to as much as five percent of the project's cost.

(2) Other performing organizations. (i) Cost sharing for organizations other than those in paragraph (c)(1) of this section may be any percentage of the research cost. Mutuality of interest in the results of the work being performed is of primary significance in assessing the appropriateness of any particular level of cost sharing.

(ii) Factors that should be considered in determining mutuality of interest include—

(A) The potential of the contractor to recover its contribution from non-Federal sources;

(B) The extent to which the particular area of research requires special stimulus in the national interest; and

(C) The extent to which a research effort or result is likely to enhance the contractor's capability, expertise, or competitive position.

(d) Implementation—(1) Payment of fee or profit. No fee or profit may be paid to a cost-sharing contractor, and only an agreed-to portion of allowable costs shall be reimbursed.

(2) Method of cost sharing. Cost sharing shall be accomplished by a contribution of part or all of one or more elements of the allowable cost of the work being performed. It normally shall be expressed as a stated minimum percentage of the total allowable costs of the project. Costs so contributed may not be charged to the Government under any other grant or contract (including allocation to other grants or contracts as part of an independent research and development program).

(3) Documentation. Contract files shall contain appropriate documentation of the reasons for cost sharing and support for the amount or percentage of cost sharing agreed upon. For educational institutions, the reasons for any cost sharing exceeding (i) five percent or (ii) the amount originally offered shall be documented.