FEDERAL DEMONSTRATION PROJECT PHASE III AGREEMENT Parties to the Agreement: National Science Foundation (NSF), National Institutes of Health (NIH), Office of Naval Research (ONR), Department of Energy (DOE), Department of Agriculture (USDA), Air Force Office of Scientific Research (AFOSR), Army Research Office (ARO), Army Medical Research & Material Command (USAMRMC), National Aeronautics & Space Administration (NASA), Environmental Protection Agency (EPA), Financial Management Service (Department of Treasury), and (Name of Participating Institution or Organization) Purpose: The purpose of this Agreement is to increase productivity of Federally supported research and education, provide for increased stewardship of Federal funds, and reduce administrative costs and burdens within the Federal government and at academic institutions and other organizations that perform Federally supported research and educational activities by standardizing and simplifying Federal arrangements for such support. The parties agree as follows: Participation Conditions: The participating institution or organization agrees: 1. To actively participate in the Federal Demonstration Project (FDP), including regular attendance, at institutional/organizational expense, of FDP committee and task force meetings, and participation in new or ongoing FDP demonstrations or pilots. It is understood that failure to attend two or more consecutive regularly-scheduled FDP committee meetings may be grounds for termination of membership. 2. To commit to continued efforts to reengineer and streamline internal processes while enhancing the stewardship of Federal support and to cooperate in on-site and other reviews and evaluations of activities under this Agreement. It is expected that the institution will provide a report to the FDP membership at least every two years on these efforts, which should include the effects on costs, productivity, paperwork and accountability, and suggestions for change based on these experiences. 3. To establish and maintain management and administrative procedures and systems that comply with the standards and requirements of the Federal government for administering Federal awards for research and education (including lack of material weaknesses in internal control structures as confirmed by applicable audit requirements and substantial compliance with Federal policies and regulations pertaining to grant administration, such as timely technical, invention and financial reporting). The participating Federal agencies agree: 1. That agency grants and cooperative agreements to the participating institution or organization will be governed by the "FDP General Terms and Conditions" (unless otherwise required) and applicable agency-specific requirements. A copy of the current "FDP General Terms and Conditions" is included as an attachment to this Agreement. 2. To use the FDP as the primary focus for tests and demonstrations of reengineered processes and systems for the support of research and education to the extent possible. This includes specifically working toward the development and implementation of electronic commerce in research administration. 3. To provide periodic reports to the FDP membership along the lines of the report in #2 above. Terms and Conditions In the event the participating institution or organization has not previously held membership in the FDP, the parties agree to establish a mutually agreeable date after execution of the Agreement to have appropriate agency awards (new and continuing) to the institution or organization governed by the "FDP Terms and Conditions" (including applicable agency- specific requirements). Each agency will provide official notification to the institution or organization specifying the awards from that agency that are covered and other implementation details affecting that agency's awards. The agency also may include special conditions in their awards on a project-by-project basis, as necessary. If the participating institution is a member of the current (Phase II) FDP, awards from each agency will continue to be governed by the "FDP General Terms and Conditions" including applicable agency specific requirements and any special conditions as appropriate. Organization The FDP will be organized generally as set forth in the section entitled "Organization of Phase III and Phase III Activities" in the FDP Phase III Solicitation as announced in the Federal Register on February 8, 1996. However the parties may agree to new or modified organizational arrangements during the course of this Agreement. Duration and Termination This Agreement will remain in effect until June 30, 2002, unless terminated by mutual agreement or by action of the Steering Committee of the FDP. However, it also may be terminated by any of the agencies (so far as relates to the agency's participation) or by the institution or organization with at least 30 days notice to each of the parties. The expiration or termination of any participating agency in this Agreement will not affect the applicability of the terms and conditions used in any awards made prior to the expiration or termination of the agreement. Signature: Date: Name: Title: Institution/Federal Agency: Agency Office Contact: