USCG: Acquisition Directorate (CG-9)

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General

An agreement between one or more Federal laboratories (Under 15 U.S.C. 3701a) and one or more non-Federal parties. At least one of the CRADA partners must be a non-Federal entity. It may be initiated by any CRADA partner.

The statutory basis for a CRADA begins with the Stevenson-Wydler Technology Innovation Act, 15 U.S.C. SS 3701-3714, as amended. The Federal Technology Transfer Act of 1986, 15 U.S.C. SS 3710 elevated technology transfer to a job responsibility for scientists and engineers working in Federal laboratories.

In a CRADA, a Federal laboratory may provide one or more personnel, services, facilities, equipment, intellectual property, and other resources, except funds. A CRADA non-Federal partner may supply any or all of the above and, in addition, may contribute funds.

Purpose

The primary purpose of a CRADA is to promote the transfer of commercially useful technologies from Federal laboratories to the private sector for a public or commercial purpose or use by performing cooperative and mutually beneficial research and development.

CRADAs may be used for any type of research, development, test, or engineering effort, as long as it is consistent with the mission of the Federal laboratory that is a party to the CRADA.

Agreement

A CRADA is a legally binding agreement between a Federal laboratory and the CRADA non-Federal partner(s) to conduct specified research and development efforts that are consistent with the mission of the Federal laboratory. Therefore, a legal review is required prior to approval. A CRADA can be easily dissolved by either party, on written notice for a rightful reason, without penalty.

A CRADA is a contract; however, it is statutorily excluded from being defined as a procurement contract. The laws and regulations that govern procurements, such as the Competition in Contracting Act (CICA) of 1984 and the Federal Acquisition Regulation (FAR), are not applicable to CRADAs.

The mission of the U.S. Coast Guard Research & Development (R&D) Center is to identify and develop science, technology, and engineering solutions that will improve and save resources across all Coast Guard missions.

Although a CRADA is a cooperative agreement, it is not a grant or cooperative agreement as the terms are defined in the Federal Grant and Cooperative Agreement Act (31 U.S.C. 6304 and 6305). Accordingly, the Federal Grant and Cooperative Agreement Act does

not apply to CRADAs.

A CRADA must be "in the best interest" of the R&D Center program.

If the proposed CRADA does not fall within the scope of existing R&D Center projects, a sponsorship from Coast Guard Headquarters will be obtained.

Key Responsibilities of Personnel

• The Government has exclusive discretion in the awarding and administration of the agreement. Government personnel involved in the agreement include the agreement officer, program manager, principal investigator, and technical representative.

• Non-Federal partners should adhere to standards of conduct, assume management responsibility, and follow standard procedure and protocol.

Significant Issues Associated with the CRADA

• All Government personnel involved in the CRADA must abide by the procurement integrity statutes, and demand the same from other cooperatives.

• There must be no conflict of interest under the Federal Standard of Conduct (15 U.D.C. 3710A(c)(3) of the Federal Laboratory employees involved in a CRADA.

• Under 15 U.S.C. 2710A(c)(4)(A), special consideration is given to small businesses and preference to business units located in the U.S. that agree that the products embodying inventions will be substantially manufactured in the U.S. In case any industry or person is subject to the control of a foreign firm’s government, consider if that foreign government permits U.S. entities to enter into CRADAs or licensing agreements.

Process

We prefer to advertise a prospective CRADA in a Federal Register to give all potential CRADA partners an opportunity to participate, remove any appearance of favoritism, and limit the risk of any future litigation from non-CRADA partners. This process may take 30-90 days.

The Commanding Officer of the Coast Guard R&D Center has been delegated authority to enter into a CRADA on behalf of the Center.

Director of Finance and Procurement, U.S. Coast Guard may approve/disapprove/amend the CRADA within 32 days of signing the agreement. If it is disapproved or amended, then the CRADA partners have 30 days to ratify the changes or terminate the CRADA.

(NOTE: In the past, all but a few of the R&D Center CRADAs have been approved, with very minor changes.)

Significant Elements

Scope of the agreement; list of resources/equipments each partner will be contributing; statement of work; management of the project; administration of agreement; patent/data rights; foreign access to technology; liability; reporting requirements for the Government; disputes; sub-partners; and other considerations.

Non-Federal CRADA partners’ trade secrets, privileged or confidential commercial or financial information obtained in the process are protected.

The invention developed under the CRADA, which will constitute a trade secret, privileged or confidential, commercial or financial information disclosure, will be protected for 5 years from the invention.

The Federal Government acquires/retains at least a nonexclusive license to practice or have it practiced throughout the world, any invention made by Federal employees or by a corroborating party or employee under the CRADA.

Keys to Success

• Abide by the agreement clauses OP protocol

• Due diligence by all

• Communication

• Guidance

Types of CRADAs

• Co-development and marketing of a product.

• Co-development and marketing of software.

• Use of Coast Guard facilities or equipment.

• Supplying research and development funds to the Coast Guard R&D Center.

Upon Conclusion of a CRADA

Final reports are compiled indicating that the CRADA been completed/terminated, the benefits accrued, Government contributions, and the contributions of the other CRADA partners.

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Last Modified 9/4/2008