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Negotiation Issues with State Government

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

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Negotiation Issues with State Government

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  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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