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Negotiation Issues with State Government

This overview explores the complex negotiation issues faced by universities when interacting with state government agencies. Key points include the differential treatment of universities under federal laws, the impact of being viewed as vendors, and the need for re-education on federal regulations specific to educational institutions. The discussion covers the establishment of Master Agreements, procurement challenges, and administrative expectations from state agencies, emphasizing the importance of trust and clear communication to foster collaborative relationships.

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Negotiation Issues with State Government

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Presentation Transcript

  1. Negotiation Issues with State Government Amy G. Herman, Contract Negotiator

  2. Overview of the Issues • University treated differently than State & Local Gov’t under Fed Laws • Educating the State on federal regulations specific to Educational Institutions • Re-educate each state agency • UNC-GA pursuing Master Agreements with NC State Agencies

  3. What is our Message • Best Interest of University • If the University agrees to be a vendor providing services, then Univ. forfeits all of the benefits provided in OMB Circulars • Flow Down of Information to the Frontlines (PI’s) • Establish contract requirements at pre-proposal negotiation • PI’s initial discussion w/ technical monitors

  4. Research and Development • R&D means all research activities, both basic and applied & all development activities performed by a non-federal entity • Research • a systematic study directed toward fuller scientific knowledge or understanding of the subject studied • Development • systematic use of knowledge & understanding gained from research involving production of useful materials, devices, systems, or methods, including design and development of prototypes and processes

  5. Establishing the Relationship • Procurement vs. Assistance • terms and conditions of award are driven by this determination • OMB Circulars define relationship as a Subrecipient • flow down of federal assistance • use of Subaward • State Agencies see us as Vendor providing goods & services • use of contract

  6. State Gov’t Culture • State sees us as a service provider • Want Maximum control over Univ. • Lack of Trust • Want completed “project” in hands before making payment • Do not want to pay Indirect Costs

  7. Issues • State Agencies want to require additional administrative responsibilities • Submission of individual timesheets (DENR) • Monthly vs. annual match reporting (DENR) • Payment schedule based on performance of completed and approved tasks (DENR) • Title to Equipment (DENR) • Withhold/Retain funds (DENR) • Due date of invoices (DHHS) • Increased Record Retention (DHHS) • Waiver of Indirect Costs (ALL Agencies)

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