Non-Grant Funded Sponsored Projects Procedure

1. Discuss potential project with Chair/Director & Dean

The faculty member must first obtain the approval of the Chair/Director & Dean.

When a BGSU faculty member seeks to enter into a Non-Grant Sponsored Project Agreement with an external entity, the faculty member must first obtain the approval of the Chair/Director & Dean. 

Discussion points regarding the potential project:

  • General purpose and problem to be solved
  • Individuals, including students, who will contribute, and amount of time each person will dedicate to the project
  • Request of release time for personnel to perform project
  • Request for supplemental payment; appropriate only when services are provided in addition to those expected in their regular academic year or fiscal contract/employment. 
  • Cost required to complete the project, including any personnel costs and any costs to the university
  • BGSU resources or equipment that will be used
  • Project timeline

2. Develop a detailed Scope of Work (SOW)

Meet with OTTS to discuss project details, timeline, and type of Non-Grant Sponsored Project

The faculty member should meet with the Office of Technology Transfer & Services (OTTS) to discuss project details and the proposed timeline.  The Statement of Work Template should be used to develop a detailed scope of work in collaboration with the external entity, as appropriate.

OTTS will assist in determining the type of Sponsored Project Agreement that is appropriate for the project from the following options:

  • Sponsored Research   Non-grant funded project which seeks to create new knowledge drawn from the analysis and comparison of data obtained from experiments or other sources.

Sponsored Project Agreements are used for externally sponsored research, teaching, workshop, or public service projects in which the sponsor collaborates with BGSU faculty/staff on the design and/or performance of the sponsored activity.  This process occurs through the development of a detailed scope of work (SOW) which typically includes the delivery of a specific product or service to the sponsor.  Financial support may, or may not, be associated with these types of agreements.

The following must be considered when developing and executing a Sponsored Project Agreement:

  • A detailed SOW must be developed in collaboration between the sponsor and BGSU with the assistance and approval of the Office of Technology Transfer & Services (OTTS);
  • In cases where external financial support is involved, a detailed budget must be developed with the Office of Sponsored Programs & Research (OSPR);
  • The budget must incorporate the university’s full indirect cost (F&A) rate;
  • The budget may be constructed on the basis of cost-reimbursement or as a fixed-price agreement;
  • The budget must be loaded, monitored, and reported upon by Grants Accounting;
  • In all cases, a contract between BGSU and the sponsor must be developed by OSPR, OTTS and/or the Office of General Counsel (OGC) which will be solely responsible for negotiating terms with the sponsor;
  • The contract must be signed by the external partner and the Vice President for Research & Economic Engagement.

Please read the Sponsored Research Agreement Template

  • Technical Service/Testing   Non-grant funded project which involves the performance of routine services, measurements, and/or tests to produce information specific to the service being performed.  It is not the goal to produce generalizable knowledge, and such projects do not typically involve the extensive development of new methods or protocols to perform the work. A Technical Services/Testing Rate must be determined in collaboration with OSPR and approved by the Controller's Office prior to development of the budget.

Technical Services/Testing Agreements are used for externally sponsored technical services and testing projects in cases in which BGSU is providing a service to the sponsor. In such cases, the sponsor determines the work to be performed with little or no input from BGSU, except in cases where simple modification of existing methodologies are involved. Such activities are typically routine in nature and have no potential for the development of intellectual property. Financial support may, or may not, be associated with these types of agreements.  

The funds received by the Department for performance of Technical Services/Testing can be distributed by the Chair/Director, as appropriate, to support students, conference attendance, membership fees, PD funds for faculty, replenishing research supplies/equipment, supplemental compensation, etc.

Supplemental compensation must be pre-approved and is only available for faculty when they are performing additional services beyond their assigned duties/responsibilities for non-grant related work. Thus, these types of services fall outside the departmental promotion, tenure, and merit processes. Individuals can be rewarded through the submission and approval of the Form for Supplemental Payment when services are performed in compliance with the Academic Charter.

The following must be considered when developing and executing a Technical Services/Testing Agreement:

  • Services are defined as small, specifically designed projects as described above and having a value less than $25,000*; 
  • In cases where financial support is involved, the sponsor should be charged a fixed-price fee using a Technical Services/Testing Rate that has been developed in collaboration with OSPR and pre-approved by the Controller’s Office;
  • The fixed-price fee should only recoup expenses associated with completing the project;
  • F&A will not be collected but a 20% administration fee for invoicing, tracking, and reporting will be charged by OTTS. This may be considered a cost of completing the project;
  • The department must provide all upfront costs required to perform the project;
  • No financial monitoring/cost reporting by Grants Accounting will be performed;
  • Upon completion of the project, funds received will be transferred to the department’s account for distribution as appropriate;
  • In all cases, a contract between BGSU and the sponsor must be developed by OSPR, OTTS and/or the Office of General Counsel (OGC) which will be solely responsible for negotiating terms with the sponsor;
  • The contract must be signed by the external partner and the Vice President for Research & Economic Engagement.

*While larger projects may be considered, a rationale should be provided and approved by OTTS/VPREE. Most projects exceeding $25,000 will require a Sponsored Project Agreement.

  • Teaching/Workshops/Public Services   Non-grant funded project which involves the performance of routine services which have a pedagogical, training, or public service goal typically benefitting the sponsor. Sponsored teaching includes projects in which BGSU is providing curriculum development, teaching/training activities, and/or workshop services whether offered for credit toward a certificate, on a non-credit basis, or through regular academic departments or by separate divisions.  It is not the goal to produce generalizable knowledge, and such projects do not typically involve the extensive development of new methods or protocols to perform the work.  A Sponsored Teaching Rate must be determined in collaboration with OSPR and approved by the Controller's Office prior to development of the budget.

Sponsored Teaching Agreements are used for externally sponsored teaching, technical services, workshops, and public service projects in which BGSU is providing a service to the sponsor. In such cases, the sponsor determines the work to be performed with little or no input from BGSU, except in cases where simple modification of existing methodologies is involved. Such activities are typically routine in nature and have no potential for the development of intellectual property. Financial support may, or may not, be associated with these types of agreements.  

The funds received by the Department for performance of Sponsored Teaching can be distributed by the Chair/Director, as appropriate, to support students, conference attendance, membership fees, PD funds for faculty, replenishing research supplies/equipment, supplemental compensation, etc.

Supplemental compensation must be pre-approved and is only available for faculty when they are performing additional services beyond their assigned duties/responsibilities for non-grant related work. Thus, these types of services fall outside of the departmental promotion, tenure, and merit processes. Individuals can be rewarded through the submission and approval of the Form for Supplemental Payment when services are performed in compliance with the Academic Charter.

The following must be considered when developing and executing a Sponsored Teaching Agreement:

  • Services are defined as small, specifically designed projects as described above and having a value less than $25,000*; 
  • In cases where financial support is involved, the sponsor should be charged a fixed-price fee using a Sponsored Teaching Rate that has been developed in collaboration with OSPR and pre-approved by the Controller’s Office;
  • The fixed-price fee should only recoup expenses associated with completing the project;
  • F&A will not be collected but a 20% administration fee for invoicing, tracking, and reporting will be charged by OTTS. This may be considered a cost of completing the project;
  • The department must provide all upfront costs required to perform the project;
  • No financial monitoring/cost reporting by Grants Accounting will be performed;
  • Upon completion of the project, funds received will be transferred to the department’s account for distribution as appropriate;
  • In all cases, a contract between BGSU and the sponsor must be developed by OSPR, OTTS and/or the Office of General Counsel (OGC) which will be solely responsible for negotiating terms with the sponsor;
  • The contract must be signed by the external partner and the Vice President for Research & Economic Engagement.

*While larger projects may be considered, a rationale should be provided and approved by OTTS/VPREE. Most projects exceeding $25,000 will require a Sponsored Project Agreement.

  • Equipment Use   Technical services or testing projects in which external entities are given access to a piece of BGSU owned equipment, either directly or through the services of a BGSU technician. An Equipment Usage Rate must be determined in collaboration with OSPR and approved by the Controller's Office prior to development of the budget.

Equipment Usage Agreements are used when an external entity wishes to have access to a piece of BGSU owned equipment (i.e. BGSU must hold clear title the equipment and no grant obligations remain).   The equipment must be operated by trained BGSU personnel and the user would reimburse the costs of doing so.

The following must be considered when developing and executing an Equipment Usage Agreement:

  • No confidential or proprietary information will be shared with BGSU; 
  • A published, standardized fee schedule must be used which has been pre-approved by the Controller’s Office;
  • The fee schedule must be calculated to cover all associated costs of running and maintaining the equipment including the costs of supplies, personnel wages etc.;
  • The home department of the equipment is responsible for financial accounting;
  • Equipment usage fees can be included in the budgets of external grants, as appropriate.
  • Student Project   When a BGSU faculty member engages students in a class project (individually or as teams) with an external entity under the faculty member’s guidance.

Student Project Agreements are used when a BGSU faculty member engages students in a class project (individually or as teams) with an external entity under the faculty member’s guidance.  Financial support may, or may not, be associated with these types of agreements.

The following must be considered when developing and executing a Student Project Agreement:

  • No confidential or proprietary information or solutions will be shared with BGSU; 
  • The Student Project Agreement must fully describe the project and its associated expectations.  A standard template agreement developed by OTTS may be used or, if needed, OTTS will develop a new one particular to the project in question;
  • The agreement must be approved by OSPR, OTTS (and OGC, as appropriate) before submission to External Partner;
  • The signed agreement must be filed with OTTS.

3. Develop Detailed budget

Develop a detailed budget for the project with the help of OSPR

A detailed budget for the project should be developed.  Think about what it takes financially to conduct your project. You must identify the budget items for which you will request support. BGSU’s Grant and Contract Specialists in the Office of Sponsored Programs & Research (OSPR) are ready to assist you in building  the budget for the  project. They will help you develop a budget and a budget narrative that will be supported by both the University and the agency. Contact OSPR  early in your project development time frame.

Sponsored Research: cost-reimbursement or fixed-price

  • Budget must incorporate the university’s full indirect cost (F&A) rate
  • The budget may be constructed on the basis of cost-reimbursement or as a fixed-price agreement;
  • The budget must be loaded, monitored, and reported upon by Grants Accounting;

Technical Service/Testing: fixed-price budget for the project using a rate that has been pre-approved by the Controller’s Office

  • Department must agree to provide all upfront costs to perform the project
  • Funds received by the Department can be distributed as appropriate
  • Supplemental compensation must be pre-approved
  • Budget must incorporate 20% Administrative Fee

Equipment Use: cost-reimbursement or fixed-price budget for the project

  • Using a published, standardized fee schedule must be used which been pre-approved by the Controller’s Office
  • The fee schedule must be calculated to cover all associated costs of running and maintaining the equipment including the costs of supplies, personnel wages etc.;
  • The home department of the equipment is responsible for financial accounting;
  • Equipment usage fees can be included in the budgets of external grants, as appropriate.   

Note: Internal budget details should not be shared with the external partner. OTTS/OGC (Office of General Counsel) will present the final approved project cost to the external partner during the contract negotiation process

4. Project Approval Routing

Coordinate with OSPR to Complete Routing & Endorsement Process

If you are making a request for funding to support a non-grant funded sponsored project you are still required to submit the request through the Office of Sponsored Programs and Research (OSPR). The request must have the formal endorsement by the appropriate University officials. OSPR will guide you through the endorsement and award processes. Most common forms needed to complete proposal.
OSPR will coordinate the proposal submission and work with other research administration offices to obtain appropriate commitments and authorizations.

The Routing and Endorsement Process must be completed for all Sponsored Project Agreements after which OSPR will seek internal approval from the Department, College, and VPREE.

It is institutional policy that all contract proposals must be endorsed through OSPR and signed by the Vice President for Research and Economic Engagement prior to submission to the external partner. Project proposals typically take at least three business days to process.

To complete the routing process, please follow the ensuing steps:

  1. Principal Investigator (PI) completes the Proposal Endorsement Form and attaches it to the project Scope of Work.
  2. PI has the department chair(s) review and sign the endorsement form and initial any financial commitments.
  3. PI has the college office dean(s) or designee(s) review and sign the endorsement and initial any financial commitments.
  4. PI provides the Office of Sponsored Programs and Research (OSPR) with an copy of the project Scope of Work and the signed Proposal Endorsement Form (no additional copies of the application are needed at this time).
  5. OSPR completes the endorsement process by obtaining the remaining signatures needed, including the signature of the Vice President for Research and Economic Engagement, who is the authorized institutional representative for BGSU.
  6. OSPR will contact the PI when the routing process is complete.

5. Execute Sponsored Project Agreement

OTTS and/or OGC will be responsible for negotiating contract terms with the sponsor

The terms of Non-grant Funded Sponsored Project agreements will be binding on all University participants in the project, including faculty, staff and students.

In all cases, a contract between BGSU and the external sponsor must be developed by the Office of Technology Transfer & Services and/or the Office of General Counsel which will be solely responsible for negotiating terms with the external sponsor

It is never appropriate for you to negotiate the terms on behalf of the institution or to sign an agreement personally. There is only one authorized university representative for contract activity: Vice President for Research and Economic Engagement.

Definitions

Collaborative/Memorandum of Understanding (MOU) Agreement

A formalized agreement between an external entity and the university in the performance of a defined scope of work to the mutual benefit of the parties involved but which does not involve financial payment from the external entity.

Contract

A type of financial assistance awarded to the university for the conduct of research or another program which includes language legally binding the university to a funder for the performance of specific deliverables in exchange for the awarded funds. The amount owed by the sponsor should be calculated according to a pre-determined rate of payment based on the costs of performing the project. This rate must be approved by the Controller in advance of executing the contract. Contracts may include additional restrictions involving confidentiality, intellectual property, publication rights, termination, work schedules, liability/indemnification, payment schedules and changes to the scope of work. 

Sponsored Project

A sponsored project is a research, service, or teaching activity that is externally funded and which includes a formal funding instrument such as a grant or contract between the university and the sponsor. A sponsored project involves a transaction that includes a specified statement of work and a reciprocal transfer of something of value.

Sponsored Research Project

A sponsored research project is a type of sponsored project which seeks to create new, generalizable knowledge drawn from the analysis and comparison of data and information obtained from experiments or other sources.

6. Project Execution

Once the project agreement is fully executed, OTTS will notify the parties and the project may commence

Generally, once the Project Agreement has been fully executed the project period begins and work may commence. 

The Principal Investigator is the project lead and are responsible for the appropriate conduct of the project in accordance with the terms and conditions of the Project Agreement and University policies. Prior to undertaking any sponsored project, it is important that all principal investigators understand the administrative requirements of the Agreement. 

It is the ultimate responsibility of the PI to ensure that the project is completed in the agreed upon project period.  Additionally, it is also the PI’s responsibility to ensure that all expenditures are allowable and are relevant to achieving the project’s objectives and that any required technical progress reports are submitted to the sponsor on time.

Most projects will require the Principal Investigator (PI) to provide progress reports to the Sponsor and the University regularly during the life of the project.

The content of Progress Reports is sponsor specific. Common elements include:

  • Project accomplishments and milestones achieved
  • Updated timeline for project completion
  • Modifications required to meet challenges
  • Updated budgetary information

The ORSP should be contacted whenever changes are required as ORSP staff will provide guidance on approvals that may be required and facilitate any required changes.

7. Final Report

Upon completion of the project, submit a final report to the external partner and notify OSPR and OTTS of completion

At the end of a project there are important considerations to make sure the project comes to an orderly close. The University has an obligation to external sponsors to submit a final technical and financial report.

Closeout of a project is the process by which the external sponsor determines that all applicable administrative actions and all required work has been completed.

Perhaps inventions or patents are necessary.  Patent and invention questions (or those related to protecting and developing intellectual properties that come up as part of the project closeout process) should be directed to the Office of Technology Transfer and Services

The Office of Sponsored Programs and Research will assist you as you begin to prepare to close-out your project.

BGSU’s Grants Accounting Office handles the majority of the closing procedures for Sponsored Research Agreements to ensure proper authorizations.  

For Technical Services/Testing Agreements, the Office of Technology Transfer and Services handles the majority of the closing procedures and invoices the external sponsor, and once funds are received they will be transferred to the department’s account for distribution as appropriate.

Updated: 04/08/2022 09:35AM